Canada’s tech industry is not in favor of the federal budget.
The Liberals’ proposal to increase the portion of capital gain earnings that businesses pay income tax on from one half to two-thirds has left the sector disappointed.
The government is also suggesting that this increase be applied to individuals with capital gains earnings exceeding $250,000.
Benjamin Bergen believes that this increase could result in “irreparable harm” as it might prompt entrepreneurs to establish businesses in other countries.
The president of the Council of Canadian Innovators is also concerned that these changes could discourage talent from staying in the country, especially since the stock options tech companies often provide will lead to higher costs when treated as capital gains later on.
Kim Furlong of the Canadian Venture Capital and Private Equity Association criticized the budget proposals on LinkedIn, calling them “counterproductive.” She argued that these changes could significantly dampen Canada’s entrepreneurial spirit and hinder economic growth.
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