Diane Francis: Trudeau tries to loot charitable sector to fund his high-spending government
The profligate Trudeau government is proposing a tax reform to ensure fair tax contributions from all, but in reality it’s nothing more than a stealth tax hike designed to fill government coffers at the expense of Canadian charities. The tax grab is coming by way of proposed changes to the alternative minimum tax (AMT), and the country’s donors and charity fundraisers are upset.
In a letter to Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland, philanthropist Donald Johnson, along with 30 other heads of hospitals, universities, charities and other non-profits, objected to the regulatory changes.
“We are deeply concerned about the proposed changes to the alternative minimum tax in the 2023 federal budget, especially concerning donations of publicly listed securities to charitable organizations. This move is a significant shift from Canada’s tradition of supporting a robust charitable sector. We can craft a tax system that remains equitable and champions our societal generosity,” they wrote.
“In 1997, Finance Minister Paul Martin notably reduced the capital gains tax on gifts of publicly listed securities by 50 per cent. This initiative was further boosted in 2006 by Finance Minister Jim Flaherty, who removed the remaining capital gains tax on these gifts. As a result, a once-rare practice became common, with Canadian charities receiving annual donations of listed securities exceeding $1 billion.”
A report by the C.D. Howe Institute titled, “Capital Gains and Charitable Donations: The Silent Targets of Federal AMT Reforms” also drubbed the proposed changes. “Our estimates indicate that about 10 per cent of the overall value of charitable donations and almost half of the overall value of donations of
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