Capital Gains Tax Not Eliminated Anytime Soon

According to this article in the Globe & Mail,
Capital gains tax to stay?” it doesn’t look like the capital gains tax will be gone any time soon, as the Conservatives promised while on the campaign trail early this year. They had promised specifically for “the elimination of the tax on capital gains reinvested within six months.”

Cutting the capital gains tax is such a complex undertaking that it may not be finalized in time for the federal budget expected next month, Finance Minister Jim Flaherty suggested yesterday.

The elimination of the tax on capital gains reinvested within six months was a key Conservative Party election promise, aimed at driving economic growth by rewarding Canadians who reinvest their money to create jobs.

After a speech to the Surrey Chamber of Commerce yesterday, Mr. Flaherty would not confirm that the capital gains proposal would not be in the budget. But he admitted that the government is still holding consultations on how to make the changes.

“I would be less than candid with you if I said that that was not quite challenging to accomplish in the short term,” he said.

Hints of a delay follows recent speculation that the capital gains tax program needs to be reworked or narrowed in scope, otherwise it could end up costing Ottawa between $1-billion and $2-billion annually.

Still, Mr. Flaherty said the Conservatives are committed to keeping all of their election promises on taxes, which included reductions in the good and services tax.

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