Justin Trudeau's government raises taxes on wealthiest Canadians in federal budget

Canada’s Prime Minister Justin Trudeau, from left, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

OTTAWA, Ontario (AP) — Canadian Prime Minister Justin Trudeau ’s government announced Tuesday it is imposing higher taxes on the wealthiest Canadians as part of the federal budget.

The budget proposes to increase the capital gains inclusion rate, which refers to the taxable share of profit made on the sale of assets.

The taxable portion of capital gains above $250,000 Canadian (US$181,000) would rise from half to two-thirds, which the federal government says will only affect 0.1% of Canadians and raise nearly $20 billion Canadian (US$14.5 billion) in revenue over five years.

Canada’s Prime Minister Justin Trudeau, left, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

“I know there will be many voices raised in protest. No one likes paying more tax, even — or perhaps particularly — those who can afford it the most,” Finance Minister Chrystia Freeland said.

Prime Minister of Canada Justin Trudeau, right, and Prime Minister of France Gabriel Attal, look around the Prime Minister’s office in West Block on Parliament Hill, before a meeting in Ottawa on Thursday, April 11, 2024. (Justin Tang/The Canadian Press via AP)

“But before they complain too bitterly, I would like Canada’s one per cent — Canada’s 0.1% — to consider this: What kind of Canada do you want to live in?”

Freeland presented the federal budget, which pledges $53 billion Canadian (US$38 billion) in new spending that she says is focused on economic justice for younger generations.

Canada’s Prime Minister Justin Trudeau, left, Deputy Prime Minister and Minister of Finance Chrystia Freeland are joined by cabinet ministers for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

Freeland denied that her latest budget is mainly a political exercise — but nonetheless acknowledged that for anyone under 40 in Canada, it’s “just harder to establish yourself” than it was for the generations that came before.

Canada’s Prime Minister Justin Trudeau, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

Freeland delivered a budget that she said capped the federal deficit at $40 billion Canadian (US$29 billion).

Trudeau’s Liberal government is trailing badly in the polls amid concerns over the cost of living in Canada.

“This budget will do very little to improve Liberal prospects. They will be going down to defeat, and they know it,” said Nelson Wiseman, a political science professor at the University of Toronto. “Their only hope is if Justin Trudeau steps aside and a new Liberal leader is selected. And, even then, it would be difficult for them to prevail.”

Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland rises to present the federal budget in the House of Commons in Ottawa, Ontario, as Canadian Prime Minister Justin Trudeau, lower right, listens on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland, center, tables the federal budget in the House of Commons in Ottawa, Ontario, on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Canada’s Deputy Prime Minister and Minister of Finance Chrystia Freeland, center, presents the federal budget in the House of Commons in Ottawa, Ontario, on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Deputy Prime Minister and Minister of Finance Chrystia Freeland holds a press conference in the media-lockup prior to tabling the Federal Budget in Ottawa, Ontario, on Tuesday, April 16, 2024. (Sean Kilpatrick/The Canadian Press via AP)