Dragons’ Den star Arlene Dickinson has lashed out at the Liberal government’s proposed hike to capital gains tax.
The Calgary-based venture capitalist said in a missive posted to social media that the federal government has tried to “disguise a bad tax policy as a class war.”
Party leaders have “dumbed” debate about the policy down to “rich vs not,” she argued.
“The proposed capital gains tax change is not going to stimulate innovation, the economy or encourage entrepreneurial risk,” she said.
“Taxing the rich more would have been a better partial solution coupled with many ways to cut government overhead.”
Her intervention comes as business groups, including the Canadian Chamber of Commerce, have warned the tax could affect one in five firms in the country.
In a letter sent to Finance Minister Chrystia Freeland, they wrote: “At a time when we are already urgently struggling to reignite our nation’s lagging productivity, increasing taxes on productive investments and throttling Canadian potential will have profound, long-lasting and potentially irreversible repercussions.”
Last month, the Canadian Medical Association also raised its voice against the tax.
The group’s president said the measure “will have adverse effects on physician recruitment and retention across the country” and threatens the stability of Canada’s health system.
Other critics of the tax increase, which is set to come into force in June, include the Conservative Party and Shopify’s president, Harley Finkelstein, who said the tax change is the “complete opposite” of making Canada “the best place for entrepreneurs to build.”
The new system will tax the profits – capital gains – made on the sale of assets at a rate of two-thirds, rather than the current one-half. For corporations, this will apply to all capital gains, while for individuals it will apply to annual gains of over $250,000.
Ottawa has estimated that in any given year, just 0.13 per cent of Canadians would pay higher taxes on their capital gains.
The 2024 budget, meanwhile, stated that 12.6 per cent of corporations had capital gains in 2022.
The Liberals have argued the tax changes will create a “more fair” system, with Prime Minister Justin Trudeau claiming he wants “to make sure the economy is fair for everyone.”
Speaking last month, Trudeau was defiant in the face of Tory criticisms of the budget, saying: “Conservatives have already said they’re voting against this budget – they’re voting against fairness, they will be voting against asking the ultra-rich to pay their share.”
Freeland has made similar arguments, predicting the new tax will bring in more than $19 billion that can be used to help build homes for young people who’ve been excluded from the housing market.
But the Liberals have not succeeded in persuading TV judge Dickinson.
“There’s lots of proof that innovation in our country is in a free fall and shows no signs of stopping,” she said.
“To make our country better we need to encourage growth and risk taking or we will pay a much bigger price when the country falls further and further behind globally.
She added: “I recognize that the country can’t be all things to all people, but it must not penalize anybody who is working to make Canada better for more people by creating jobs, innovative solutions for a better quality of life and helping us to compete globally.
“There is zero doubt that it’s becoming harder and more expensive to live here. And buying a home, groceries and transportation should be something everyone can afford. To make that happen we need to encourage people working on solutions, not disincentivize them.”
