Achi news desk-
Deputy Prime Minister and Finance Minister Chrystia Freeland will introduce another omnibus bill to pass a wide range of measures promised in her April 16 federal budget, although the government’s proposed capital gains tax change will be left out of the legislation.
On Tuesday, the senior Liberal cabinet minister offered an early preview of what the budget bill will contain, when he tabled a notice of the so-called “ways and means proposal” in the House of Commons.
This proposal, which spans 663 pages, outlines all the tax and legislative measures that the government intends to include in the measure – entitled “Budget Implementation Act, 2024, No 1”—coming to the House of Commons soon, if MPs allow.
Speaking about the incoming bill and the next phase of the government’s economic plan at a press conference on Parliament Hill, Freeland framed the legislative package as “about ensuring fairness for all generations.”
However, absent from this package is Freeland’s plan to rake in $19.3 billion over the next five years by increasing the inclusion rate on capital gains from 50 percent to 67 percent for individuals earning more than $250,000 in capital gains in a year, and for all corporations and trusts.
According to a federal official speaking on background, the government’s intention is to move the capital gains change forward through a separate piece of legislation that would move through Parliament on its own timetable. Of note, the budget had promised that this tax change would apply to capital gains realized on or after June 25, 2024.
When asked why she decided to ask senators to vote on these tax reforms separately, and whether she wanted to force Conservative Leader Pierre Poilievre and his caucus to take a firm position on the proposal, Freeland demurred.
“I want to be very clear with everyone that the main elements of the capital gains movement are clearly stated in the budget, including in the tax supplement,” said Freeland.
Nor would she offer specific details on the timing of the introduction of this single piece of legislation, which Canadian doctors, business people and entrepreneurs have raised concerns about.
“We are very committed to the capital gains measures,” Freeland said, acknowledging that this major new revenue stream helps the government pay for its series of new spending measures. “And I look forward to introducing legislation that works.”
“Our view is that it is completely fair to ask those in our country who are at the top, to contribute a little more. And that is why we introduced a plan … to increase the capital gains inclusion rate.”
What is in the budget bill?
From changes to the tax code and housing policy, to reforms to criminal law and health, the legislation runs the gamut of reforms and although most are tied to the federal budget, the Liberals also incorporate some unfulfilled promised reforms left out of their last big economic patch. legislation.
Among the economic policies and promises that this Bill will seek to implement are:
- Launching a national school food program through a series of bilateral funding agreements;
- Implementation of the new Canada Disability Benefit with considerations regarding jurisdiction and appeals;
- Increase the Home Buyers Scheme withdrawal limit from $35,000 to $60,000 for first time buyers;
- Promote amendments to the Criminal Code with the aim of stealing cars and the technology these criminals use;
- Establish a new consumer-driven banking framework while disrupting predatory lending;
- Introducing “Canada’s Small Business Carbon Refund” returning past profits from the federal pollution price to small businesses through a new refundable tax credit;
- Implement automatic enrollment in the Canada Learning Bond (CLB) for eligible children whose families do not open a Registered Education Savings Plan (RESP); a
- Following through on the previously promised crackdown on income tax deductions related to short-term rentals such as AirBnB and Vrbo properties operating in restricted regions, in order to expand the long-term rental supply nationwide.
Latest ‘priority’ economic bill
Although a bill of this size and broad scope can be considered omnibus by definition, the Liberals have consistently refused to characterize their budget bills as omnibus, citing their central economic theme and focus.
This new piece of legislation will join the list of priority government bills the Liberals are pushing for legislation, including the yet-to-be-passed Economic Collapse Declaration Implementation Act which is set to make parts of the fall financial update is a reality.
While the Senedd is carrying out a preliminary study on Bill C-59 – to help speed up its movement through the upper chamber once it lands there – the legislation remains several steps away from its full passage by that it is still being reviewed clause by clause in the House committee period.
Freeland said on Tuesday that the government would press for a quick passage of the new budget bill in the Senate.
This is a developing story, check back for updates…
