She said it again on Sunday in an unhinged speech in Toronto. Deputy Prime Minister Chrystia Freeland insisted just 0.13% of tax filers would be affected by the new, higher capital gains tax rate that comes into effect on June 25.

(She then went on to claim that without the money generated by this one tax increase, Canada would soon be on the verge of a pitchforks-and-torches mob uprising.)

The upcoming increase is bad for far more than a tiny fraction of 1% of taxpayers. It is only good for the Liberal government, which needs every dollar to keep this year’s deficit from rocketing out of control and is trying to lay a political trap for Pierre Poilievre and the Conservatives. When the Conservatives vote against the hike, the Libs want to be able to shriek, “See, see! We told you the Conservatives are only out for the rich, not for the middle class!”

Except the Freeland/Liberal scaremongering and class warfare are nothing but politically motivated disinformation.

It may be true that this year only about 44,000 taxpayers will have to pay the higher rate on capital gains of over $250,000.

But when you consider that over time doctors, small business owners, contractors, farmers, cottage owners and even landlords who own a single, four-suite apartment will be dinged by tax bills that are as much as a third higher, the effect will be far more widespread.

One of Canada’s best public-policy economists, Jack Mintz, estimates that over their lifetime 1.5 million Canadian taxpayers will be slammed by Freeland and Justin Trudeau’s new tax at least once, often to the tune of tens or even hundreds of thousands of dollars.

That’s more than 5% of taxpayers, a number almost 40 times higher than Freeland’s 0.13% figure.

As Mintz points out, every Canadian who receives a dividend from a Canadian corporation is going to be hit, too. “In 2021,” Mintz explains, “4.74 million tax filers (15.7%) received distributed profits from Canadian corporations.” That’s a number 120 times higher than the number Freeland keeps claiming will be affected.

Of the 4.7 million Canadians receiving a dividend that will be smaller thanks to the Trudeau-Freeland tax, 3.3 million had incomes of under $100,000. That’s a lot of middle-class Canadians, the very people the Liberals claim over and over they are out to help.

It goes further still.


The $7 billion the Liberals hope to raise this year from their higher tax will come directly out of money that would normally be reinvested into new equipment to raise productivity. And Canada desperately needs greater productivity. Since the Liberals came to power in 2015, industrial productivity in Canada has fallen to among the lowest rates of growth of any developed country.

Also, the prospect of lower profits and higher taxes will scare away investment, perhaps to the tune of $20 billion to $30 billion a year.

Last week’s labour market figures from Statistics Canada showed our economy is losing full-time, private-sector jobs at an alarming rate. Scaring away investors with anti-wealth rhetoric will only speed that up, which is why even the labourers’ union LIUNA said, “Not sure how driving innovation and business out of Canada is a win.”

And here’s a way this shortsighted, politically motivated hike could hurt all Canadians. Lots of doctors use their professional corporations like retirement accounts. Jacking up tax rates on professional corporations by a third is like announcing that CPP and OAS benefits are being clawed back for people already retired or on the verge of retiring after a working lifetime of counting on that money.

For a lot of young doctors, this disregard for their futures might be the final straw that drives them to move stateside. And that would make the family doctor crisis in Canada even worse.