by Lorraine Carpenter, Local Journalism Initiative reporter

Following the release of the 2024 federal budget this week, Prime Minister Justin Trudeau shared a video discussing changes to tax rates for the rich.

Explaining that 99.87% of Canadians will not pay “a cent more” in tax, Trudeau noted that multimillionaires will see an increase in taxable passive income earned from capital gains, excluding primary residences.

Previously, only 50% of that income was taxable, a percentage that will increase to 67% under the new budget. This move that is projected to generate $19-billion in new revenue.

“Those who will pay more tax are those who’ve benefitted from an economy that seems tipped toward them and away from everyone else,” Trudeau says. “We don’t think it’s fair that a teacher or electrician pays taxes on 100% of their income, while a multimillionaire pays taxes only on 50% of the passive impact come they make on capital gains. So we’re going to make them pay a little more.”

The change to capital gains tax rates has already sparked controversy, with Canadian business figures including Spotify CEO Harley Finkelstein describing it as “divisive and political.”