Thank you.
Dr. Lee, I really appreciate your reliance on data. When we talk about the capital gains inclusion, we have maybe the best data of all, because we have history. The inclusion rate that has just been announced in this budget of 66.6% on income over $250,000 is exactly the inclusion rate that was established in 1988. At that time, the Mulroney Progressive Conservative government raised the inclusion rate from 50% to 66.6% in 1988. They then increased it again in 1990 to 75%. It stayed at that level for 10 years until the year 2000 when I think the Liberal government reduced it to 50%, where it stayed for some time.
I just did some quick research. We've had data presented to this committee that showed the impact on business investment in Canada, on machinery and equipment and on technology and innovation, between 1990 and 2000. It went up. It did not go down. In fact, between 2000, when the capital gains inclusion rate was reduced to 50%, and today, we have seen a gradual erosion and reduction in business investment in Canada.
Can you help me explain that? If Mr. Mintz's prognoses are correct, why is it that when we raised capital gains inclusion rates before, it did not have the effect of chasing investment or increasing investment in Canada in machine equipment but had the opposite effect?