Canada increases tax on capital gains [Video]

The federal government’s plan to collect more tax from capital gains has been derided by the business community at-large for its predicted drag on productivity and impact to the economy.

But for the average household in the country and in Windsor-Essex – it’s unlikely to mean much.

“The average household will likely not see an impact because the capital gains in excess of $250,000 are now taxed at a higher rate so, if your gains were below that and you do sell your investments it’s still the old rate,” said Andy Kovacs, a financial planner with SunLife.

The tax measure was included in the Liberal budget which claims it is aimed at wealthy Canadians and “tax fairness.”

As of June 25, the inclusion rate will jump from 50 per cent to 66 per cent on capital gains over $250,000.

The government uses an Ontario nurse earning $70,000 a year as its example. In …