Thank you, Mr. Chair.
I'm going to pick that up and go back to you, Mr. Lee.
Again quoting from this report, it says:
Since the introduction of capital gains taxes in 1972...the federal government has adjusted the inclusion rate on capital gains several times: lifting it from 50% to 66.7% and then to 75%, and then reducing it in reverse increments.
I would note, by the way, that both of those increases, to 66% and then 75%, were done by Conservatives. The Mulroney government increased the capital gains inclusion rate.
The report goes on:
There is no evidence of a predictable impact of capital gains inclusion on the rate of investment by Canadian businesses in new technology—whether tangible machinery and equipment, or intangible investments in research and intellectual property.
Ironically, the study found:
Both types of business technology investment increased after the capital gains tax was introduced (first at 50% inclusion), and then both increased again when the rate was raised to 66.7%.
The conclusion is:
The strongest sustained technology investment recorded [in Canada] was in the period from 1988 through 2000, when the inclusion rate was either 66.7% or 75%.
Mr. Lee, can you help us understand that?