As I write this article, it seems that many Canadians are up in arms about the recent increase in capital gains tax. And who can blame them? After all, paying more taxes is never a pleasant experience. However, as someone who has been fortunate enough to be part of the top one per cent of Canadian taxpayers, I must say that my initial reaction was not entirely enthusiastic either.
But then I began to think about it. What’s really at stake here? Is this just another case of the government sticking its hand into our pockets and taking away a bit more of our hard-earned money? Or is there something more to it?
The State of the Canadian Economy
Let’s start with the bigger picture. The Canadian economy has been underperforming for quite some time now. We’ve seen slow growth, low productivity, and rising debt levels. It’s a complex issue, but one thing is clear: we need to invest in our country if we want to see meaningful improvements.
However, as a cabinet minister once told me, "We just don’t seem to be able to build big projects in this country." The Trans Mountain pipeline expansion is a prime example of the hurdles that come with trying to undertake major capital projects. And it’s not just about building pipelines – we need to think about the kind of investments we’re making in our energy sector, and how they’ll impact our future.
The Green Revolution
Canada has an opportunity to lead the green revolution. We have some of the world’s best iron ore for making green steel, and battery technology is going to play a huge role in the energy sector. But it takes big investment to make this happen. And we need to be competitive with other countries, like the United States, which has committed hundreds of billions of dollars to stimulating private sector activity.
Fiscal Responsibility
But there’s a catch. We can’t borrow money as cheaply as our American counterparts because we don’t have the world’s reserve currency. This means that we need to be more careful about our fiscal deficits and national balance sheet, or else our borrowing costs will continue to rise. And with that comes a weaker currency – no country has ever built a strong economy on the back of a cheap currency.
Hard Choices Ahead
So what does all this mean? It means we have hard choices to make. Do we invest in our country and take on some debt, or do we go home and let others reap the benefits of the green revolution? Can we be fiscally responsible and still generate the income we need to invest? The answer is yes – but it will require us to be prudent with tax policy.
The Capital Gains Tax Hike
Now, about that capital gains tax hike. I don’t think it’s going to break anyone’s back. Those who have to pay more will not like doing so, but we need to work together to make our country a better place for all of us.
So, let’s stop complaining and get back to work. We love our country, and it’s full of opportunities. But we need to be willing to invest in ourselves and our future. Let’s do this.
Conclusion
In conclusion, the capital gains tax hike is not just about paying more taxes – it’s about making hard choices for the future of our country. We can either invest in ourselves or go home. It’s time to stop complaining and get back to work on building a better Canada for all of us.
John Risley is the chairman and chief executive officer of CFFI Ventures Inc.
(Note: The article has been edited to maintain a neutral tone while still conveying the author’s message)
