A new study casts doubt on the idea that high capital gains taxes discourage businesses from investing. According to the Institute for Socioeconomic Research and Information (IRIS) and the Center for Future Work (CFW), the best period for technology investment in Canada is when the inclusion rate exceeds 60%.
Effective June 25, the taxable share of capital gains on property sales for corporations and trusts is now 66.7%, up from 50%. For individuals, the same inclusion rate applies only to the portion of capital gains (sales of shares or real estate) realized in the year that exceeds $250,000.
Many voices in the business world have been raised against this tax measure announced in the last federal budget in the spring. Stakeholders representing the entrepreneurial community believe this will harm the Canadian economy and slow investment in the country.
The study was co-published on MondayIRIS And the CFW Rather than implying that Corporate investment cost is different from capital gains tax.
Based on data from Statistics Canada, the two firms observed the largest technology investments in the country at 66.7% or 75%, respectively, between 1988 and 2000.
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