Finance Committee on Sept. 19th, 2024

Evidence of meeting #152 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was business.

A video is available from Parliament.

On the agenda

Changes to Capital Gains and Corresponding Measures Announced in Budget 2024
Committee Business

MPs speaking

Peter Fonseca
Adam Chambers
Joanne Thompson
Gabriel Ste-Marie
Don Davies
Marty Morantz
Don Stewart
Yvan Baker
Jasraj Singh Hallan
Rachel Bendayan
Julie Dzerowicz
Francesco Sorbara

Also speaking

Olivier Jacques  Assistant Professor, School of Public Health, Université de Montréal, As an Individual
Antoine Genest-Grégoire  Assistant Professor, Department of Taxation, Université de Sherbrooke, As an Individual
Claire Trottier  Philanthropist, As an Individual
Montana Wilson  Chief Executive Officer and Founder, GRIT Engineering, As an Individual
Heidi Yetman  President, Canadian Teachers' Federation

5:25 p.m.

Philanthropist, As an Individual

Dr. Claire Trottier

Yes. This is absolutely not something that is in consideration when the family business is talking about investing in itself, and when we as a family make decisions about other investments—because we do invest in other businesses in Canada—this change is not going to have any impact on our decisions to continue investing in Canada.

5:25 p.m.

Liberal

Rachel Bendayan Liberal Outremont, QC

I would now like to ask Mr. Genest‑Grégoire a question.

You and my colleague were discussing the economic impact of increasing the capital gains inclusion rate or not. Do I understand correctly that you think there is no better way than this policy to focus on capital gains for the richest while limiting collateral effects?

I'm giving you an opportunity to expand on that thought.

September 19th, 2024 / 5:25 p.m.

Assistant Professor, Department of Taxation, Université de Sherbrooke, As an Individual

Antoine Genest-Grégoire

That's an academic economist's phrase, but essentially, when you design tax policy, you try to both reduce inequality and minimize its impact on the incentive to work or invest. You can rarely do both, so you try to get the best ratio. In this case, the ratio between reducing inequality and the costs in terms of jobs and investment is extremely good. There's probably not much in the federal government's tool box that provides a better return on that.

5:25 p.m.

Liberal

Rachel Bendayan Liberal Outremont, QC

Again, that's your opinion. Is it shared by other experts in the field?

5:25 p.m.

Assistant Professor, Department of Taxation, Université de Sherbrooke, As an Individual

Antoine Genest-Grégoire

Yes, that opinion is shared by a number of other professors, who are not all from Quebec, by the way. Kevin Milligan at the University of British Columbia comes to mind—he made very similar comments—as well as Michael Smart at the University of Toronto, who said essentially the same thing.

Among the available tools, this is what makes it possible to reduce inequality at the lowest cost in terms of jobs and investment.

5:25 p.m.

Liberal

Rachel Bendayan Liberal Outremont, QC

Thank you very much for your testimony today.

5:25 p.m.

Liberal

The Chair Liberal Peter Fonseca

Thank you, PS Bendayan, and thank you to our excellent witnesses for your testimony on this study of capital gains. We wish you the best with the rest of your afternoon and evening. Thank you very much for coming before our finance committee.

Members, at this time we are adjourned.