Ottawa [Canada], April 17: In the annual budget proposal released on April 16, Canadian Finance Minister Chrystia Freeland said the richest Canadians must pay more, while the budget will be invested in education, housing, jobs. and mental health services, Al Jazeera reported.
According to the latest proposal, those who accumulate capital gains over 250,000 CAD (nearly 4.6 billion VND) will have to pay 66.7% tax instead of 50% as before. This decision can bring in 20 billion CAD in revenue in 5 years. The five-year spending plan's $53 billion budget will largely come in the form of affordable housing, student grants and loans, rental subsidies and job placement programs .
"Today we tell the young generation and those who care about them that we use the power of government to serve you," Politico quoted Ms. Freeman as saying on April 16. She admitted that raising taxes will face many obstacles, but this decision ensures the rich have to share fairly.
The Business Council of Canada (BCC) has criticized the proposed budget as " politically beneficial to some" but "economically unfavorable to all." BCC Chairman and CEO Goldy Hyder stated: "Asset reallocation does not create wealth. The spending measures introduced today will saddle Canadians with debt without encouraging the strong and sustainable economic growth they deserve."
The Canadian Liberal government's proposal will have to be supported by the left-wing New Democratic Party (NDP) to get enough votes to pass in parliament. The latest move of Mr. Trudeau's government is said to be aimed at attracting the support of voters of generation Y (those born around 1981 - 1996) and generation Z (those born around 1997 - 2010), when the Canadian election is expected to take place in October 2025.
Young voters are dissatisfied when rising living costs and housing prices make them unable to afford to buy a house. In a poll by Canada-based public opinion research firm Nanos Research, two-thirds of people surveyed said Mr. Trudeau performed poorly in solving the problem of expensive housing.
In early April 2024, Prime Minister Justin Trudeau announced a plan to build nearly 3.9 million houses by 2031 to narrow the gap between housing supply and demand.
Source: Thanh Nien Newspaper