An Economic evaluation of the tax treatment of capital gains in Canada
AdvisorPhilpotts, Geoffrey C.
AuthorJordan, Barbara A. (Barbara Ann)
LccHJ 4662 A4 J65 1987
LcshCapital gains tax - Canada - Evaluation
Capital investments - Canada - Evaluation
MetadataShow full item record
AbstractThis thesis provides an economic evaluation of the tax treatment of capital gains and losses in Canada with respect to the achievement of stated tax policy goals. Chapter one presents the basic arguments for and aga i nst the taxation of capital gains and losses, outlining some of the ways in which returns to investors and the behavior of investors are affected by the inclusion of these gains and losses in the tax base. A historical background of changes in the tax treatment of capital gains and losses in Canada is presented in Chapter two, along with statistical data regarding the amounts of gains and losses reported by taxpayers since 1972. This chapter also outlines some of the restrictions imposed on changes to the Canadian tax system which result from the international implications of implementing these changes. Chapter three examines the tax treatment of capital gains and losses with respect to the achievement of four tax policy goals: economic growth, equity, efficiency, and simplicity. Chapter four concludes with proposals designed to improve the efficacy of capital gains tax policy. From studying the Canadian experience with the taxation of capital gains and losses, it is clear that the government has legislated tax policy which contributes little toward the achievement of stated tax policy goals. In fact, current capital gains tax legislation contributes significantly to the inefficiency, inequity, and complexity which exists in the tax system . It is evident that relatively simple changes to the treatement of these gains and losses within the existing income tax framework would significantly enhance the achievement of the policy goals of equity, efficiency, and simplicity , without necessitating significant detrimental effects on economic growth. The existence of a strong political element in the tax reform process poses the most serious obstacle to any proposed changes for improvement of the tax system with respect to capital gains and losses.
Bibliography: p. 174-179.
CitationJordan, B. A. (1986). An Economic evaluation of the tax treatment of capital gains in Canada (Unpublished master's thesis). University of Calgary, Calgary, AB. doi:10.11575/PRISM/20666
InstitutionUniversity of Calgary
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