Hello everyone,

Thank you for the incredible support and signatures this petition has received! I urge everyone, whether you've shared this petition before or not, to share it again on social media.

I hope that in this update I can properly communicate that the removal of the capital gains tax is far more than just an opinion or demand but in fact, a necessary step to ensure fiscal responsibility and prosperity for the greater Canadian economy.

Key Points to Consider:

There are other alarming points concerning the proposed 2024 Canadian Liberal budget:

Raising the National Debt Ceiling:

The proposal includes raising our national debt ceiling by another $508 billion, from $1.83 trillion to $2.33 trillion to accommodate the projected borrowing needs for 2024-25. This ensures the government can refinance maturing debt and manage new borrowing requirements. (Budget Canada) This occurred back in 2020 as well (BNN).

Currently, we pay $20 billion annually to service our existing debt. This number will only increase after adding $508 billion to the debt, raising debt servicing costs significantly. (Fraser Institute)

This represents flagrant mismanagement of federal spending. However, before pointing fingers, we must acknowledge the positive steps the Liberal government has taken, such as:

Creating new infrastructure for electric vehicles (EVs).
Improving dental affordability for low to middle-income families.
Advancing trust and reconciliation efforts.
and more.

These are solid foundations for programs but overinvesting in ideas without effective implementation is often the first critical mistake when creating new products or initiatives. For those who have read the book, The Lean Startup, businesses are supposed to stay lean, growing as they add value, balancing their books properly, and avoiding unnecessary expenditures. The government must adopt this approach or an approach like this to ensure efficient use of taxpayer money.

The United States Government has employed lean startup ideas. The Federal Chief Information Officer of the United States, Steven VanRoekel noted in 2012 that he was taking a "lean-startup approach to government".

Economic Data:

I've done the math and encourage everyone to read and challenge the data presented. You can find the detailed analysis here.

GDP Growth:

Our GDP growth, which should be around 2-3% annually, has dropped to 1.1% over the past seven years, with a projected growth of only 0.7% for 2024, reflecting severe underperformance compared to expected standards. In comparison, other G7 countries have also faced challenges but have generally shown higher growth rates. For example, the U.S. is projecting 2.2% in 2024 to Canada's 0.7%. (Table A1.1 Budget Canada, BEA, Global News)

Disputing the 0.13% Claim:

The claim that removing the capital gains tax will impact only 0.13% of Canadians overlooks several key points:

Wider Economic Impact:

The removal of the capital gains tax can have broader economic consequences, including job creation and support for small businesses. Lowering or removing the capital gains tax can incentivize investments in startups and small businesses, potentially leading to job creation across various sectors.

Small Business Consequences:

Small businesses are often the backbone of the economy, and higher capital gains taxes can discourage entrepreneurs from starting new ventures in Canada. This can lead to a migration of business activities to countries with more favorable tax regimes, like the U.S., reducing job opportunities domestically and stifling economic growth.

Impact on Savings and Investments:

Many Canadians, especially those nearing retirement, rely on investments for their financial security. Higher capital gains taxes can reduce the incentive to invest, impacting retirement savings and overall financial well-being.

Given these considerations, the percentage of Canadians indirectly impacted by changes in capital gains taxes is significantly higher than the 0.13% figure often cited. When accounting for inflation, CPI, GDP growth, and broader economic factors, it is reasonable to estimate that at the minimum at least 20-30% of Canadians will be directly or indirectly impacted by this tax increase. This includes those with investments, small business owners, entrepreneurs, and those relying on investment income for retirement.

The Middle-Class Struggle:

Consider the current middle-class reality:

Overall, the estimated annual income needed to afford a home and raise 2-3 kids across Canada ranges significantly, but a figure around $150,000 to $200,000 annually is a reasonable estimate for many regions. (Savvy New Canadians, Wealth Awesome)

Where are the policies addressing housing commodification? Where are the measures to control grocery price increases as part of the consumer price index?

These are standard policies that governments should implement to ensure prosperity for all parties involved. Without these measures, the burden on the middle class will only grow, making it harder for families to sustain their quality of life. The reality is, if current trends continue, the new middle-class threshold could soon be as high as $250,000 in some areas sooner than we think.

Call to Action:

Removing this single aspect from the budget is both reasonable, prudent, and informed. Given the current economic conditions in Canada, it's a necessary step to ensure fiscal responsibility. It's just one of many questionable allocations of spending within the Canadian government. If this change is not made, it could seriously impact the purchasing power of our dollar.

Final Note: I do not intend to be alarming, but to highlight the importance of these issues for the future well-being of all Canadians.

Please share or support this petition. Our economic prosperity as a country is on the line.

Thank you,

Thomas Hulsmans
Business Owner and Canadian Entrepreneur