Stephen Harper to help rank and file investors

January 13, 2006

Canadians should not be punished for reinvesting their money

Oakville – Stephen Harper announced today that a Conservative government will eliminate capital gains taxes on the sale of assets when the proceeds are reinvested within six months. The current tax punishes rank and file investors who take a hit on the sale of assets even when they reinvest the proceeds.

“Canadians are asking, ‘where is my surplus?’ and ‘where is the respect for my hard work?’” Harper said. “Government needs to stand up for the people who work hard, pay their taxes and play by the rules – and we will start by cutting your taxes.”

This tax reduction is part of a larger package that includes cutting the GST from 7 to 6 to 5 per cent. A Conservative government will provide income tax reductions for seniors, transit users, students, tradespeople, and families. In addition, a Conservative government will provide tax reductions to spur enterprise and economic growth, including reductions not only for large employers, but also for small business and charities.

A Conservative government will eliminate the capital gains tax for individuals on the sale of assets when the proceeds are reinvested within six months. Canadians should be able to sell those assets and reinvest their profits into the economy without taking a tax hit. It is time the government rewarded Canadians who reinvest their money and create jobs.

“We will allow deferral of capital gains taxes when proceeds are reinvested within six months,” Harper concluded. “This will allow those who sell family enterprises to avoid taking a hit and keep long-term investors focused on long-term gains.”

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