Why The Capital Gains Tax Increase Matters

The video describes recent increase to inclusion rate of capital gains in Canada.
Capital gain:
When you sell, or are considered to have sold, a property (other that your principle residence) or an investment for more than you bought it for and expenses incurred to sell, the profit generated is referred to as capital gain.
The inclusion rate is the percentage of the profit that is taxable. For example, you bought an investment for $10,000 and then sold it for $20,000, your profit would be $10,000.
Inclusion rate of 50% means that 50% of you profit would be taxable, so in the above example $5,000 would be taxable. The $5,000 in capital gains would be added to your taxable income at your highest personal marginal rate.
Inclusion rate of 66.6% means that $6,660 of your profit would be taxable. The $6,660 in capital gains would be added to your taxable income at your highest personal marginal rate.
More details in the video.
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