Mr. Speaker, Nepean constituents are calling and writing concerning the capital gains tax exemption of $100,000 for individuals and $500,000 for farmers and small business entrepreneurs. Overwhelmingly they are saying do not cut the capital gains tax exemption.
Canadians from coast to coast dedicate enormous amounts of time and effort planning for their retirement years. For many of them a crucial link in their strategy is their personal $100,000 lifetime capital gains exemption.
While many upper income Canadians may have already claimed their maximum lifetime exemption, it is the middle and lower income Canadians who will use the exemption to supplement their retirement income. The elimination or reduction of the exemption would penalize middle and lower income Canadians. The capital gains tax exemption was introduced to encourage investment in business. It is achieving this purpose.