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Danielle Smith's Call to Pause U.S. Tariffs Sparks Debate

  Alberta Premier Danielle Smith has stirred controversy following her remarks during a recent interview with a U.S. media outlet. Smith revealed that she had urged the Trump administration to temporarily halt tariffs on Canadian goods until after Canada's federal election. She argued that the ongoing trade dispute was inadvertently boosting support for the Liberal Party, potentially impacting the Conservative Party's chances in the election. Smith's comments have drawn criticism from various political leaders and analysts. Some have accused her of inviting foreign interference in Canadian politics, a claim her office has strongly denied. Critics argue that her plea prioritizes political strategy over the well-being of Canadians affected by the tariffs. While Smith maintains that her request was aimed at fostering a fair resolution to the trade dispute, the debate over her remarks continues to dominate political discourse in Canada.
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Budget 2024 Introduces Changes to Capital Gains Taxes: Who Will Be Affected?

 


The Canadian government’s 2024 budget has proposed significant changes to how capital gains are taxed. These changes aim to ensure fairer taxation and generate revenue for important initiatives. Let’s dive into the details:

  1. Increased Inclusion Rate:

    • Under the proposal, annual gains realized above $250,000 for individuals will be taxed at a rate of two-thirds (up from the current 50%).
    • Gains below this threshold will continue to be taxed at the existing 50% rate.
    • The changes also apply to capital gains realized by corporations and trusts, regardless of the $250,000 bar.
    • The effective date for these changes is June 25, 2024.

  2. Lifetime Capital Gains Exemption:

    • The budget maintains the lifetime capital gains exemption for individuals selling their small business, farm, or fishing property.
    • It proposes expanding the exemption to $1.25 million of eligible capital gains (up from just over $1 million currently).

  3. Entrepreneur Carve-Out:

    • The budget introduces a new incentive for entrepreneurs.
    • Up to $2 million in capital gains per individual over a lifetime will be taxed at 33.3%.
    • Selling a primary residence remains excluded from capital gains taxes.

  4. Who Will Be Affected?

    • Wealthy Canadians, who disproportionately benefit from the current 50% inclusion rate, will see an impact.
    • Approximately 40,000 individuals (0.13% of Canadians) are expected to pay more taxes on their capital gains annually.
    • Most Canadians—28.5 million—will not have any capital gains income next year.
    • Another three million Canadians are expected to earn capital gains below the $250,000 threshold.

In summary, these changes aim to create a fairer tax system while ensuring that the burden falls more equitably across income levels. If implemented, they will affect a small percentage of Canadians, primarily those with higher incomes.


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