For most Canadians, capital gains do not show up in income or capital gains statistics.
Demographics and Entrepreneurship blog series: Spurring entrepreneurship through capital gains tax reform
Capital gains taxes reduce the return entrepreneurs and investors receive when selling a new technology or business.
In reality, a considerable percentage of Canadians earn capital gains.
The Chrétien Liberals reduced the capital gains inclusion rate to help improve Canada’s competitiveness and attractiveness to investors.
There’s increasing evidence of a relationship between entrepreneurship and age. Younger people are less risk-averse than older people, and more prone to question the status quo. These characteristics are fundamental to entrepreneurism. So how can government influence entrepreneurship to mitigate these demographic effects?