Canada's Capital Gains Tax Rules in Limbo After Trudeau Prorogues Parliament

Uncertainty grows as proposed tax changes remain unlegislated and Prime Minister Justin Trudeau announces his resignation.

Prime Minister Justin Trudeau has prorogued Parliament until March 24, leaving proposed capital gains tax changes unpassed and taxpayers uncertain.
The proposed changes would increase the inclusion rate for capital gains from 50% to 66.67% for individuals earning over $250,000 annually and for corporations and trusts.
The Canada Revenue Agency (CRA) is proceeding with the proposed rules, citing parliamentary convention, though they have not been formally enacted into law.
Trudeau’s resignation and the upcoming Liberal leadership race raise questions about whether the tax changes will be reintroduced when Parliament resumes.
Critics argue the uncertainty is harming Canada’s economy, deterring investment, and creating challenges for taxpayers and entrepreneurs planning their finances.