Could the capital gains tax in Canada increase?
I believe this will happen eventually, but probably not in 2021. There would be an impact on capital markets – something that is not good during an economic recovery. The current capital gain tax rate is considerably lower than the tax rate on a dividend, people spend a lot of time planning so that they can realize a capital gain instead of a dividend with respect to remuneration from their business. The simple fix to deter this is to raise the capital gain tax rate to be closer to the dividend tax rate.