However, the trial balloon for an increase in the inclusion rate (% of gains that are taxable) has been launched and this is not an idea that is going to go away. If you have significant unrealized capital gains, you now have some time to plan on how best to capture them while the inclusion rate is still at 50%.
Another reason the TFSA is likely to become an even more important vehicle in the future.
Increased deficit spending will definitely require increased revenues:
If an average or weaker (than expected) economic growth scenario should evolve, there will be efforts made to find new sources of revenue.
One of the spending measures taken in this years budget allocates a half billion $ to improved tax surveillance and enforcement over the next 5 years. Certainly this highlights efforts to garner increased tax dollars from those who are evading and avoiding paying taxes.
So expect the CRA to be potentially more aggressive in their demands.
Otherwise, there are not too many wealth management issues of significance in this years budget.
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist