The Department of Finance assures that middle-class Canadians will continue to benefit from various exemptions, including the $250,000 annual threshold, tax-free savings accounts, the principal residence exemption, and registered pension plans.   

The Department of Finance provided an example illustrating the impact of the new rules: a high-income earner in Ontario with a $400,000 salary and $300,000 from the sale of a second property would see their tax increase by $4,461 to $158,333 under the new rules, compared to $150,000 currently.   

The budget emphasizes the importance of tax fairness across generations and highlights the discrepancy in taxes on income from wages versus capital gains and dividends. It also notes that, among G7 countries, Canada offers more significant capital gains tax benefits.   

The Department of Finance asserts that the proposed tax increase will not adversely affect Canada’s business competitiveness, pointing out that, unlike Canada’s planned two-thirds inclusion rate, corporations in most other countries, including the US, are taxed on 100 percent of their capital gains.   

Regarding potential impacts on the middle class, Oakey suggested that the $250,000 threshold is generally adequate to prevent regular effects on non-wealthy individuals, though one-time events might push some above this limit, resulting in higher taxes.