Canada, more taxes on the rich to support young people and the middle class

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Canada has put forward a financial proposal with a dual objective: more taxes on the rich and greater attention to young people and the middle class.

According to the proposal, capital gains exceeding 250 thousand Canadian dollars (around 170 thousand euros) will be taxed at 66.7%, instead of the current 50%.

The measure, according to Prime Minister Justin Trudeau, will bring over 20 billion Canadian dollars (almost 14 billion euros) into the state coffers over the next five years, as well as blocking the deficit at 40 billion and ensuring new investments of 53 billion focused mainly on “economic justice”. The latter will in fact be largely directed at Millennials and Gen Z in the form of affordable housing, student grants and loans, rent subsidies and job placement programs.

“We want to build new homes, lower the cost of living and promote the kind of growth that ensures every generation of Canadians reaches their full potential,” said Finance Minister Chrystia Freeland.

Freeland added that giving young people the opportunity to build a comfortable life has “always been Canada’s promise.” “But today even as Millennials and Gen Zs find good jobs, work hard, do everything their parents did and more, too often the reward remains out of reach,” she said. “They look at their parents’ lives and wonder, ‘How will I ever be able to afford this?’” Freeland called on Canada’s top 1% to think regarding the “kind of Canada” they want to live in before complaining too much regarding the proposal. The minister also clarified that the new measure will only concern 0.13% of the population.