FORSETH: Liberal 'fairness' is not fair, it's a fraud

Prime Minister Trudeau has frequently used the phrase, "We have your back." Trouble is, it's a knife. That is how many taxpayers feel after the Liberals' political play about 'fairness' in the last budget and the surprise change to the capital gains inclusion rate. For many small business owners, local doctors who have incorporated their practice, farmers and others who do not have big union or government pensions, their investment decisions for the future were made under existing predictable tax rules. Now the rules are changed.Sure, the government claims only the top 0.13% of taxpayers would pay this new retirement-killing tax. In reality, plumbers, electricians, carpenters, farmers, small business owners and restaurant owners will pay the tax increase. Their predicted future saving plans have been trashed.To spur our economy, we recall that there were focused incentives for Canadians to invest in Canada with the 50% inclusion rate on their Canadian capital gains.However, the present Liberal game is all about trying to create envy and resentment and hoodwink the public about "fairness." It is a desperate play for an emotional hook that has nothing to do with helping the economy. It's all about emotion and the false Liberal claim that Conservatives are against "fairness." That is why the capital gains clause was separated from the main budget estimates and put into a separate vote. It was a political maneuver of leftie ideology so they could invent a smear campaign against Conservatives. The finance minister smugly delivered her prepared lines in the Parliamentary Question Period. Chrystia Freeland said, “Our government understands the importance of fairness. We understand that a teacher should not pay tax at a higher rate than a multimillionaire." “We all certainly learned something yesterday. After eight weeks of dithering and evasion, we learned which side the Conservatives are on. The Conservatives had a chance to be very clear and say that a teacher or a welder should not pay tax at a higher rate than a multimillionaire, but they just could not help themselves. At the end of the day, the Conservatives are always on the side of those at the very top and always against working people. The Conservative leader thinks his average constituent should pay tax on their hard-earned salary at a higher rate than someone who is earning more than $250,000 in capital gains alone. Whose side is he really on?”In answer Poilievre said, “Taxing farmers during a food crisis, taxing home builders during a housing crisis, taxing away doctors during a health-care crisis and taxing small businesses during an economic growth crisis is economic vandalism and nothing less.”He added, "That is precisely why the Minister has given us the worst growth in the G-7, the worst growth for the next 40 years projected by the OECD, and 256 homeless encampments in her hometown. Is that not the predictable result of her disastrous policies?"Later, Poilievre said he would include this job-killing tax hike in a general review of the tax system within 60 days of taking office. He also said he would boost Canada's lagging productivity by cutting taxes, making the country more attractive to invest in everything from mines and pipelines to shopping centres and factories. "We're going to cut taxes, speed up permits and unleash competition so that this is the best place on earth to work, hire, and make stuff. We say yes to raising taxes on the gains of the ultrawealthy, but no to raising taxes on the savings of self-employed workers without retirement funds who have invested everything in a triplex.”The government's reality check is that its projected new revenue from the change in the inclusion portion for capital gains is an inflated number. All the government rhetoric around this issue is phoney, as it never was about fiscal policy. The whole schtick was about trying to hatch a communication trap for the Conservatives and cast them as mean-spirited corporate robber barons who don't care about ordinary people.The Liberal ploy fell flat. Taxpayers saw through the maneuver of splitting the capital gain clause apart from the main estimates to produce a separate vote, thereby creating an opportunity to gain negative media coverage against Conservatives.The Liberals were prepared to mess with the economic balance of Canada to reach for a 'gotcha moment,’ while taking a bow to their few remaining supporters. As for their NDP supporters, the politics of envy and resentment is their basic nature.Canadians know we cannot tax and spend our way into prosperity. The 2024 federal budget shows a government hiking taxes on investment. Anyone with experience in entrepreneurship and savings can see how that approach stifles growth and job creation.In Canada today, capital is harder to access than in the past generation. Higher interest rates and economic uncertainty mean many high-growth companies with innovative products need help to secure growth capital on favourable terms. Highly skilled talent is more mobile than ever before, and among innovative high-growth companies, stock options — subject to capital gains tax — are a key form of compensation.The Bank of Canada has declared a productivity emergency, and Canadians can feel the impact of economic stagnation. Canada's economy needs productivity growth and innovation but above all, it needs investment. Conservatives say the federal government should not proceed with the disastrous tax hike on investment and should listen more sensitively to innovators trying to create a more prosperous future for every generation. The change will damage the sensitive venture capital raising sector, as angel venture capital is very mobile. The benefit of new business will go elsewhere. The finance minister is also wrong when says only the wealthy would pay the tax: More than 300,000 businesses would be taxed, not just that supe-wealthy 0.13 percent. Certainly, she would not commit that no one in the bottom 99.87% would pay new taxes. Meanwhile, Jack Mintz, Canada's most significant economist, has reported that1.25 million will pay. Using Statistics Canada data, Dr. Mintz calculates that 50% of those paying this tax increase earn less than $120,000 a year, and 10% earn less than $18,000 a year. Nevertheless, the finance minister rejected amendments to exempt anyone who earns less than $120,000 a year from the capital gains tax increase. Freeland was given the opportunity to prove that what she was saying was true. Poilievre asked the Minister directly if she would provide an exemption to her tax hike to carpenters, farmers, fishermen, plumbers, union workers, restaurant owners, and electricians. She said no to exempting people earning less than $120,000 annually.After nine years of the NDP-Liberal government, it is not worth the cost of falling living standards. Liberal economic vandalism has driven capital out of Canada, and Canadians are worse off.Taxing farmers drives up food costs. Taxing doctors means it is harder to find one. Taxing home builders means fewer homes get built. Taxing small businesses means fewer employee paycheques.Common-sense Conservatives say they will unlock the potential of our strivers, inventors, builders, entrepreneurs, and workers. The plan is to restore the promise of Canada, where hard work earns powerful paycheques and pensions to buy affordable gas, food, and homes in safe neighbourhoods. The Liberal capital gains carve-out maneuver from the main budget to generate a separate debate about “fairness” has backfired. The tax grab to cover past fiscal mistakes hurts Canadians' hopes and dreams and deeply hurts the aspirations of entrepreneurs and small business people, Canada's biggest job creators. Changing the rules for people who have saved all their lives toward legitimate goals, is crushing. The capital gains tax scam has merely confirmed how politically crass this government is, and how reckless they are with the economy and people’s lives.

FORSETH: Liberal 'fairness' is not fair, it's a fraud

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