Today on the show special guest Jack Mintz joins us. Jack is an economist and President’s Fellow at the School of Public Policy at the University of Calgary. He discusses Canada’s economy, and challenges Canadians face in this current market environment plus he highlights the recent changes to capital gains taxes. Jack shares his thoughts on the capital gain inclusion rate, touching on both the individual and corporate levels. He points out the capital gains inclusion rate is increasing from one half to two thirds.  For individuals, there is a threshold of $250,000 where the 50% inclusion rate still applies. Most individuals won't be significantly impacted by this change, he says, but other taxpayers like corporations and trusts are affected from the first dollar. These new rules will come into effect on June 25th and the impact of these changes on the market is uncertain and will be observed over time. Jack also touches on the inflation story and how he does not see inflation dropping again any time soon, and that it’s going to take some time to get back to 2%. In terms of international investments, Jack believes that the current environment is a deterrent for foreign companies considering acquiring Canadian firms. He points out that Canada is struggling to attract investments, and how the country’s real per capita GDP has been declining for the last six quarters. Jack also addresses concerns about population growth, productivity output, and M&A synergy.

Recorded on June 25, 2024.

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