Trudeau's Tax Hike: How It Hits Your Wallet Hard

Trudeau's Tax Assault

"Well, that's it, folks. Uncle Trudy is officially coming for your hard-earned dollars in another way..."

What's Happening?

The federal budget for 2024 brings news of increased taxes on capital gains after a 23-year freeze. The motive? To supposedly make life more fair. But let's dive deeper.

Breaking Down Capital Gains

"Capital gains taxes are taxes that are paid on the profit or proceeds of an investment..."

• Until recently, taxes were levied on 50% of the profit.
• From June 25th, 2024, it's up to 66% of the profit.

Impact on You

"With these new changes in place, what you need to know first and foremost is this is going to have an impact in the marketplace."

• Rush to offload properties before the deadline, affecting rental availability.
• Disincentivizes property sales, leading to fewer properties on the market.
• Mom and pop investors, saving for retirement, will bear the brunt.

Economic Ripples

"These costs are only going to go up as the costs are passed along to the developers and the investors."

• Increased cost of capital, leading to higher asset prices and rents.
• Potential negative impact on foreign investment and job creation.

Finding Silver Linings

"While the news may seem grim, there are a few silver linings to consider."

• Primary residences remain untaxed.
• A $250,000 exemption if it's in your personal name.
• The impact may not be as severe for smaller capital gains.

Final Thoughts

"If our number one goal is to build sustainable supply and promote building in our country, why would people continue to do so when all we do is get taxed and regulated to death?"