Tories promise to scrap capital gains tax

The Conservatives say they will eliminate the capital gains tax on the sale of assets, provided the proceeds are reinvested within six months.

“Canadians who invest, or inherit cottages or family heirlooms, should be able to sell those assets and plough their profits back into the economy without taking a tax hit,” the Tories say in their 2006 election platform, released on Friday. “It is time government rewarded Canadians who reinvest their money and create jobs.”

The Tories are also promising to remove the capital gains tax on stocks donated to charities. “Government should not penalize Canadians when they contribute to charities. Canadians who donate publicly traded shares to Canadian charities should not pay capital gains taxes on those donations.”

On income trusts, the Tories say they will “stop the Liberal attack on retirement savings and preserve trusts by not imposing any new taxes on them.”

For seniors, the party says it will raise the pension income tax amount eligible for a federal tax credit to $2,000 from $1,000 this year, rising to $2,500 in five years; and appoint a Seniors Council to advise the minister responsible for seniors on issues of national importance.

The platform also repeats the Tories’ pledge to reduce the GST by one percentage point immediately and by another point, to 5%, within five years. “Cutting the GST will help everyone deal with the rising cost of living, put money in people’s pockets, and spur the economy immediately.”

(01/13/06)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.