Will Canada’s new hike in capital gains tax disincentivize investment?

Canada’s capital-gains tax change continues decades-old debate over economic growth and tax fairness

Since the federal government tabled its budget on April 16, the hike in capital gains tax is making headlines. Businesses and corporations are speaking out against the increase, saying it will negatively impact economic growth, investor behaviour and business creation. Our Partner Brigitte LeBlanc-Lapointe advises businesses, emerging public companies, venture capital and private equity investors in various industries, especially in technology. She sat down with The Globe and Mail’s Mark Rendell to share her insights on how the tax change could affect startups: “Even before this, I talked to clients all the time about whether they want to establish their business in Canada or in the United States, and in the U.S., they have a lot greater access to capital. So, this might just be one more factor that tips the scales,” explains Brigitte. Read the article for a complete analysis of the capital gains tax change.