That's a very good question.
You're right, it penalizes people who own small rental buildings in Quebec. A very high percentage of them are middle class. Often, they live in the building and have tenants, whom they naturally have to manage.
When the change in the capital gains inclusion rate was announced, there were stories in the media about people who were earning very little, $60,000 or $70,000 a year, but still managed to buy a multiplex. However, that was 30 years ago, and they paid into it all their lives. Now that is what they are counting on for their retirement. The effects can be quite harmful.
You also opened the door to a number of solutions. I would like to tell you, first of all, that we are asking that an exception be made for small rental buildings of between two and five units. That is what we'd like to see. If not, there are other possibilities. In some OECD countries, when the capital gain is realized in the short term, the tax rate is much higher. When the building has been owned for many years, the tax rate becomes very low, if not zero. It also has the beneficial effect of preventing flipping and over-speculation.