Small businesses disappointed government made no major amendments to proposed capital gains changes

TORONTO, June 10, 2024 /CNW/ – The Canadian Federation of Independent Business (CFIB) shared its disappointment that the federal government did not make amendments to its proposed changes to capital gains taxation.

Today’s announcement and the associated rhetoric from government reinforce that the proposed capital gains changes are about politics, not tax fairness. Business owners are deeply worried about the impact the new 66.7% inclusion rate will have on their ability to retire or save for a rainy day. The government has claimed the rate change would only affect a tiny percentage of the wealthiest Canadians, but more than half (55%) of small business owners believe it will affect the eventual sale of their business, 45% say it will affect the investments they hold privately, and 41% say it will affect investments in their incorporated businesses.

The government has also given small business owners virtually no time to consider the changes before they come into effect in two weeks time (June 25). This is deeply disrespectful to Canada’s entrepreneurs.

A majority of business owners (59%) believe the increase of the Lifetime Capital Gains Exemption (LCGE) to $1.25 million will be helpful to them. Further, 77% support the concept of the new Canadian Entrepreneurs’ Incentive (CEI), but only 45% believe they will directly benefit from it in its current form. Government should strengthen both of these measures and ensure that all businesses, regardless of their industry, can benefit from the new CEI.

Nearly two-thirds (63%) of small firms oppose the packages of changes if critical amendments are not made. CFIB will continue to push for the following:

1. Expand the new Canadian Entrepreneurs’ Incentive to include all entrepreneurs:

  • Include all sectors, including farmers and fishers selling assets
  • Include non-founders to encourage people to invest in small firms
  • Cut the 10-year implementation schedule in half

2. Scrap the planned increase in the general inclusion rate to 66.7%. If government is unwilling to abandon this plan, it should:

  • Grandfather all existing capital gains using a V-Day (valuation day) as was done in 1971
  • Allow corporations to benefit from $250,000 each year at 50% inclusion like individuals
  • Allow for 5-year income averaging to benefit from the $250,000 annual threshold for larger capital gains for irregular events, like selling a property

     –       Dan Kelly, President, CFIB

Read CFIB’s letter for a full list of recommendations on the proposed capital gains changes.

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at

SOURCE Canadian Federation of Independent Business

Small businesses disappointed government made no major amendments to proposed capital gains changes WeeklyReviewer

PR Newswire Political/Government News

World Reviewer Staff
World Reviewer Staff
The first logical thought has to be "no way". I'm the World Observer! Ill find and share important news all day.

Latest articles

Earnings Disclosure

WeeklyReviewer earns primarily through affiliates and ads. We don’t encourage anyone to click on ads for any other purpose but your own. We recommend products and services often for our readers, and through many we will earn commissions through affiliate programs.

Related articles