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business15h ago
One tax change that could improve Canada's productivity and benefit all
- Canada should explore a broad capital gains deferral to boost reinvestment in productive assets.
- Estonia taxes corporate profits only when distributed, influencing views on capital mobility and reinvestment.
- Analyst Jack Mintz has discussed a Canadian version of the Estonia model to improve productivity.
- Deferral is not forgiveness; taxes are paid when capital is consumed or withdrawn, not recycled.
- A cautious view notes deferral benefits higher-income investors who deploy capital for growth.
- Critics argue about equity, but proponents say deferral could accelerate capital recycling and job creation.
- Conservative policy discussions during the 2025 campaign touched on limited capital gains deferral for reinvested assets.
- The article frames capital gains deferral as a productivity tool, not tax loophole.
- Moody argues the deferral approach could improve capital turnover and entrepreneurial reinvestment.
- The piece cites policy discussions linking tax reform to boosting Canada’s productivity and living standards.
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