If the tories win next week, they will eliminate the capital gains tax in canada. So will this inspire old bushey to finally eliminate your capital gain tax's. http://www.canada.com/nationalpost/...3d316-2625-45f6-baf5-92de689adf62&k=70092&p=1
"The Conservatives, in the lead in most opinion polls, have proposed that profit realized from the sale of certain assets -- such as securities and cottages -- be exempt from the federal capital gains tax if proceeds are reinvested within six months." Nah! They need to do better than that... That's more like a deferment than elimination of capital gains tax...
You know, I really wonder if they will actually follow through on that type of promise. It would be interesting to see how much money the CRA pulls in specifically from personal capital gains taxation on an annual basis.
Probably a decent amount, but its probably not as large as everyone thinks. Since alot of people in canada hold their longterm holdings in RRSP or other savings vehichles like that. I wonder how it would effect all of those products. But its sounds really reasonable. they are proposing if you hold stocks for more then a year, it wont be taxed at all. but if your daytraders it wouldnt really matter either way since it will still be treated as business income rather then capital gains.
Good point. Eliminating capital gains taxation might remove some of the incentive to hold investments in an RRSP. I doubt that people would cash in their RRSPs as a result of such a change (since they would be taxed on the withdraws), but it might reduce incentive to deposit funds into a tax sheltered account. Of course it's always worth remembering that governments come and go, so I doubt that the change would be long lasting. For example, I'm taking a class on personal income tax this semester, and we were recently covering the fact that capital gains inclusion rates have changed about 5 or 6 times in the last 20 years in Canada.