1,000 CEOs, Canadian Tech Leaders Sign Letter Calling for End to Capital Gains Tax Hikes

Deputy Prime Minister and Minister of Finance Chrystia Freeland presents the federal budget in the House of Commons in Ottawa on April 16, 2024. (The Canadian Press/Adrian Wyld)

Over 1,000 CEOs and Canadian tech business leaders have signed an open letter to Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland calling for a halt to the capital gains tax hike.

The letter, organized by the Canadian Council of Innovators (CCI), says the tax hike is going to hinder investment in the country.

“You cannot tax your way to prosperity. But in the 2024 federal budget, we see a government trying to hike taxes on investment,” the letter said. “Anybody with experience in entrepreneurship and investment can see how this will stifle growth.”

Ms. Freeland has proposed to increase the amount paid on capital gains, which is defined as “an increase in the value of an investment (such as stocks or shares in a mutual fund) or in the value of an asset (a real estate holding, for example) from the original purchase price,” according to Wealthsimple.

Ottawa’s 2024 budget looks to hike the taxable portion of capital gains to two-thirds, from one-half. The move is expected to bring in $20 billion in government revenues over the next five years.

There were 1,034 names to the letter as of April 20, which is 884 more than when CCI posted the open letter on X, formerly Twitter, on April 17. At that time, they said there were 150 signatures.

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Some of the signatories include:

• Roustem Karimov, Founder, 1Password
• Dominique Simoneau-Ritchie, Chief Technology Officer, Affinity
• Alisha Gamble, Manager, Program Management, Amazon Web Services
• Jean-François Séguin, BMO Capital Markets
• Ross Slaneff, Associate Portfolio Manager, BMO Nesbitt Burns
• Carly Steinberg, Head of Marketing, Canada, DoorDash, Inc.
• Gregory Hogeboom, Executive VP, La-Z-Boy Furniture
• Sumayra Chowdhury, Director, Executive Recruitment, McCain Foods
• Chris Simair, COO & Co-founder, Neo Financial, SkipTheDishes
• David Steckel, Chief Product Officer, Sears Home Services
• Shez Samji, Vice President, TD Bank, Toronto
• Tom Lowden, Director, TD Bank, Toronto

‘Not Just for the Rich’

The capital gains tax doesn’t just target the wealthy, according to Jake Fuss, director of fiscal studies at the Fraser Institute.

He told The Epoch Times that many Canadians will be affected, some indirectly as investment is hampered.

Some Canadians could be directly affected by the tax if they sell an asset such as a cottage or stocks. Anything higher than $250,000 will be taxed at the higher rate.

Productivity Crisis

Business leaders who signed the letter also said that a hike in the tax could further hurt Canada’s labour force.

“Highly skilled talent is more mobile than ever before, and among innovative high-growth companies, stock options—subject to capital gains tax—are a key form of compensation,” the letter said.

“Canada’s economy needs productivity growth, innovation and above all, we need investment.”

Tara MacIsaac contributed to this report.