Trudeau's Government Proposes Tax Hike in Pitch to Young Voters

Facts

• Canadian Prime Minister Justin Trudeau’s government announced a tax hike on Tuesday as his Liberal Party looks to win over young voters who have been hit hardest by cost-of-living increases.¹
• Under a new budget proposed by Finance Minister Chrystia Freeland, tax will be elevated on capital gains income above CA$250K ($180K USD). The move seeks to generate more revenue from wealthy Canadians and raise nearly CA$20B over five years.²
• While capital gains under $250K for individuals will continue to be taxed at 50%, the new proposal would tax all capital gains by corporations and trusts at 67%. There are exemptions for individuals selling their small businesses, or qualifying farms or fishing properties.³
• The government says the measure will only apply to 0.13% of individuals and just 12% of corporations, and it reportedly hopes the increased revenue will offset increases in spending. Freeland’s budget managed to cap Canada’s deficit at $40B.⁴
• The budget proposes $52.9B in new spending over the next five years, including $8.5B for housing as the Liberals look to calm the nerves of anxious young people who cannot afford to buy homes amid Canada’s housing crisis and high property values.⁵
• The proposal has come under criticism from the Business Council of Canada (BCC), and the budget will need to be passed by the left-leaning New Democratic Party in order to take effect. Trudeau’s Liberals are trailing the Conservatives in polls as elections loom in Oct. 2025.⁶

Sources: ¹Yahoo Finance, ²Associated Press, ³Global News, ⁴Nationalpost, ⁵CBC and ⁶Al Jazeera.

Narratives

• Right narrative, as provided by Nationalpost. In just a short period of time, Justin Trudeau and the Liberals have managed to inflict irreparable pain and suffering on Canada, and now they are looking to do even more damage to an already-battered economy. While the Liberals may play the euphemism game to pitch their tax increases by claiming that they’re asking the “rich” to pay their “fair share,” everyone with a cursory understanding of economics knows that a 67% capital gains tax will bring investment to a grinding halt. Instead of taking measures to address the root issues of the mess they’ve created, Liberals are looking to keep taking other people’s money to bribe the very individuals whose lives they’ve destroyed.
• Left narrative, as provided by The Globe and Mail. The budget proposed by the Liberal government implements long overdue reforms that are needed to increase investment in housing and ease the burden on younger generations. While Canada’s wealthiest individuals and corporations may cry about paying more in taxes, the fact is that Tuesday’s proposal will only apply to 0.13% of individuals while benefiting many more. Millions of people, particularly millennials and Gen Z, don’t have the privileges that many older Canadians have had, and it’s about time the government looked to give support to young people instead of the ultra-wealthy.

Predictions