Lines drawn on Canadian tax fight

Canadian Conservative leader Pierre Poilievre finally showed his cards on the controversial question of capital gains taxes, voting against proposed hikes and promising to cut taxes if he takes power.

The Liberals proposed the increase in capital gains taxes – which apply when Canadians sell stocks or other investment assets such as vacation properties – this spring to help offset billions in spending on housing and social support.

Trailing in the polls but still hoping to win among younger voters, the Liberals framed it as a matter of generational fairness.

Despite Polievre’s opposition, the measure — worth an estimated $19.4 billion over five years — passed easily and will soon become law.

But the vote, which came just as MPs were set to head back to their communities for the summer, sets up an ongoing war of words over the measure, with Liberals stressing economic fairness and Conservatives arguing that Liberal taxes are killing the economy.