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June 11 2024

Capital Gains Tax Changes Threaten Business Growth and Investment

The following statement is attributable to Deborah Yedlin, President and CEO at the Calgary Chamber of Commerce, on the proposed changes the Capital Gains inclusion rate.

“The changes to the Capital Gains inclusion rate would significantly affect the ability of businesses to access essential capital, risking economic growth, diversification and private sector investment in infrastructure. Increased start-up creation, unlocking investment in the private sector and greater infrastructure development will increase available jobs and promote and innovative and productive workforce that will drive the Canadian economy in to the future.

“These changes would adversely impact the productivity of our economy by disincentivizing investment, especially for small businesses, start-ups and entrepreneurs who rely on venture capital to take advantage of growth opportunities. It will also compromise the ability of mature businesses to be sold at attractive prices, and the amount of capital that can be recycled into new ventures.

“Our businesses across the country drive an innovative Canadian economy – solving waning productivity, de-risking technology adoption, addressing supply chain challenges and advancing climate action. They need to be set up for success. If businesses have the latitude to solve global challenges such as productivity, climate action, food security and infrastructure development, it serves to improve quality of life and economic outcomes for all Canadians.

“Governments should implement policies to incent investment, rather than apply punitive taxes that will negatively impact Canada’s economic future. Without public policy that fosters economic growth and increased productivity, Canada's standard of living is at risk. Capital goes to where it can get the best return and we compete with the world for that capital. Canada must remain an attractive location for investment on the global stage, however, by further increasing the tax burden on capital gains, innovative businesses may choose to move to more competitive jurisdictions."

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About the Calgary Chamber of Commerce  

The Calgary Chamber exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.