1 in 3 Canadians oppose capital gains tax increase, plurality believe ‘wealthy don’t pay their fair share’

A new study by the Angus Reid Institute has assessed Canadians’ perceptions of measures announced in the 2024 Federal Budget. When asked specifically about the government’s change to the capital gains tax, which increases the taxable income component from 50% to 67%, a plurality of Canadians support the change, agreeing that “wealthy Canadians do not pay their fair share of taxes.”

1 in Canadians (34%) instead think the new capital gains tax is a bad idea, because “taxing capital gains hurts economic growth.”

“To keep the budget deficit to the $40-billion projected in the fall economic statement, and to cover the major new financial outlays contained within the budget, such as the increase in defence spending and the pharmacare and dental care programs, Finance Minister Chrystia Freeland and the Liberal government had to increase government revenue somewhere. So the budget includes an increase to the inclusion rate on capital gains, a measure which has caused much criticism, including from the Canadian Medical Association, which said that it would hurt recruitment and retention of doctors. Some worry this will only exacerbate Canada’s economic growth issues.”

Prime Minister Justin Trudeau defended the change to the capital gains tax by saying that 99.87% of Canadians “will not pay a cent more” in taxes.

The study found that a majority of Canadians approve of the major policies in the 2024 federal budget.

“The Liberals have not seen a boost in their electoral fortunes from the budget, but that does not mean the major policies within the budget are unpopular. In fact, every budget item presented to respondents received majority approval.”

The Angus Reid Institute conducted an online survey from April 19 ot 23, 2024 among a representative randomized sample of 3,015 Canadian adults who are members of Angus Reid Forum. 

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