Good afternoon, Mr. Chair, and thank you to the committee for having me.
My name is Heidi Yetman. I'm a teacher and the president of the Canadian Teachers' Federation. I represent over 365,000 K-to-12 education workers and their families, with members in every province and territory. I'm here today to speak in favour of the increase in the capital gains inclusion rate.
As I mentioned, I represent over 365,000 education workers. These folks all work in a school community composed of teachers, educational assistants, clerical staff and support staff. All the staff in schools across this country are working-class Canadians, and all of them pay on 100% of the money they earn in their roles in supporting the Canadian public education system. Every dollar of their pay is subject to taxation.
On the other hand, if you look at the wealthiest individuals in Canada, those who will be impacted by this change in the exemption rate, you see that they're earning huge sums of money, while only a portion of it is being taxed. To the leaders and members of the Canadian Teachers' Federation across this country, that simply doesn't seem fair or make much sense.
The capital gains inclusion rate is increasing for those making capital gains over $250,000 in a year. Now, $250,000 is a significant sum of money for most Canadians. In fact, that's roughly four times the average salary of a teacher in Canada, and every dollar of a teacher's salary is subject to taxation. Today we are talking about those fortunate enough to be in a position to have cleared over a quarter of a million dollars in a year. I think most Canadians would agree that if you've made $250,000 in profit on the sale of your secondary property or through offloading some stocks, you're in pretty good shape.
However, let me shift to highlight why this change in taxation is so important. Earlier this year the federal government introduced their budget, and they announced some transformative things. Budget 2024 included commitments to housing supports, furthering the pharmacare file and moving forward with dental care, all of which the Canadian Teachers' Federation believes would improve the lives of Canadians.
Additionally, there are three platform announcements I'd like to highlight: first, the government announced loan forgiveness for thousands of teachers working in remote communities; second, budget 2024 announced funding to establish a youth mental health fund; and third—this is the one I'm most excited about—the government also announced the creation of a national school nutrition program.
The teaching profession currently is experiencing a crisis in retention and recruitment, and all three of these investments will have an impact on education in this country. By investing in teachers and their families and in the well-being of students, the government is in turn investing in the future of our country. That's because education is the foundation of a healthy and prosperous society. These budget items will make a significant difference in the lives of working-class Canadians and their families.
At a time when owning a home is a pipe dream for many young families, grocery prices are at all-time highs, and teachers are taking on second jobs to pay the bills, we're here debating whether it's right or just to tax half or two-thirds of capital gains made over $250,000. I'm here to tell you that two-thirds is a start.
This is about the common good and the Canada we want to live in. I applaud the federal government for introducing this policy, and I actually implore them to seek further changes to the taxation system to make life in Canada more equitable. We need to do a better job of sharing the wealth generated in this country with workers. Revamping the taxation system in this country is a great place to start.
While I doubt that many of my members will be impacted by the capital gains increase, almost all of them and their families, along with millions of families across the country, will see the benefits.
Thank you.