While Justin Trudeau will still be the prime minister for likely a number of months while the Liberals search for a new leader, the news is having big impacts already.
With Trudeau’s resignation Monday, Saskatchewan producers are concerned over what will happen with the capital gains tax.
In September, the Liberals introduced a bill to raise the portion of capital gains that will be taxed at a higher rate. After disposing of assets — such as stocks or investment properties — two-thirds of any amount of capital gains over $250,000 will be taxed. Under $250,000, tax applies on one-half of the gains.
Despite the current prorogation, the Canadian Revenue Agency (CRA) said they will issue taxpayer forms in accordance with the proposed capital gains rules by Jan. 31.
The finance department says the CRA will stop administering the policy if parliament resumes and the government signals it will no longer proceed with the proposed changes.
The bill has yet to pass in parliament, and with Trudeau on the way out, its future is unclear.
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The CRA said parliamentary convention dictates taxation proposals are effective as soon as the government tables a notice of ways and means motion — an approach it says provides consistency and fairness.
Saskatchewan farmers feel these proposed changes to the capital gains tax are less than fair, and having the tax eventually be reduced is a good thing.
“It’s a negative impact on farm families and farmers because most farmers live a reasonably humble life until retirement,” Ted Cawkwell, an agriculture specialist with the Cawkwell Group said.
“When they change the inclusion rate from 50 to 66 per cent, they’re now left with a lot less (money) than they anticipated.
“(With Trudeau’s resignation) there is not a lot of excitement for farmers yet, but it is a potential step in the right direction. Something positive could come out of this in the months to come. But we’re not seeing anything today.”
Moe issues comment nearly 24 hours after announcement
The Saskatchewan government was quiet about the news Monday, not offering comment until Tuesday morning.
Premier Scott Moe issued a statement saying he is reiterating his call for an immediate election.
“Suspending parliament to take months to settle who will lead the Liberal party is not giving Canadians the choice they desire or deserve,” Moe said.
“Your Saskatchewan Government will continue to work on solutions for Saskatchewan people.
“We are focused on addressing affordability, engaging on increased market access, investment attraction and continuing to engage with the USA on ensuring border security for those that live on either side of the border.”
Global News reached out to the Saskatchewan government multiple times on Monday for comment.
— with files from The Canadian Press
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