(Quebec) The Legault government must have the structural deficit and the credit agencies in mind when it makes the decision whether or not to follow in the footsteps of the federal government, which increases the tax on capital gains, says Pierre Fitzgibbon.
“I look at the structural deficit that we must fill […] Do we remain insensitive to this? Put yourself in the place of the Minister of Finance, Mr. Girard, who must go see the credit agencies in May. And we say the federal government does that, but we don’t do it? Aren’t we doing anything else? », Said the Minister of the Economy Pierre Fitzgibbon during the study of the appropriations of his ministry, Thursday, in the National Assembly.
The day before, his colleague Eric Girard confirmed that the Quebec government is considering following the tabling of the federal budget. He recalled that Quebec has always followed Ottawa when making changes to the taxation of capital gains, and he indicated that Quebec would collect three to five billion in five years this way.
Mr. Fitzgibbon indicated that this tax increase would therefore bring in 500 to 700 million per year, and would be paid by approximately 10,000 people.
PHOTO JOSIE DESMARAIS, LA PRESSE ARCHIVES
Pierre Fitzgibbon, Minister of the Economy
There is a financial rigor that we must have in mind before saying “no, we are not harmonizing”
Pierre Fitzgibbon, Minister of the Economy
Liberals oppose it
His liberal counterpart, Frédéric Beauchemin, is opposed to it. He believes that Quebec should stand apart and not follow Ottawa, which is increasing the inclusion rate – the portion of the capital gain that is taxable – from 50% to two-thirds for everything over $250,000.
“This tax is a tax against innovation, against productivity, a tax against entrepreneurship. It’s a very regressive system,” lamented Mr. Beauchemin, who is worried about young SMEs and triplex owners.
Mr. Fitzgibbon showed himself to be more sensitive to entrepreneurs who wish to sell or pass on their business.
There is the whole question of capital gains on investments in shares or for chalets, I am a little less sensitive to that. I am more sensitive to SMEs.
Pierre Fitzgibbon, Minister of the Economy
Takeover
He indicated that his immediate concern was at the level of “repreneurship”. “I was with 50 entrepreneurs, several mentioned that it will have an impact on the transfer or sale of a business. We will have to think about it,” Mr. Fitzgibbon said.
“If there is harmonization, we will have to look at what the impact is for SMEs and if a specific program is needed to counter that,” he added.
For its part, the Parti Québécois already proposed a 100% inclusion rate in 2012, but this is no longer the case. “From the moment we decide not to do it and then we don’t put it in the election program, well, it no longer exists for us,” said MP Joël Arseneau on Wednesday. Mr. Bérubé added Thursday “we have no position, but we will get back to you.”
Québec solidaire is in favor of it.