The sector is disappointed that the Liberal government's budget tabled Tuesday includes a proposed increase to the proportion of capital gain earnings on which businesses pay income tax, to two-thirds from one half.
The hike would also be applied to individuals for capital gains earnings above
It said the increase would only impact the wealthiest 0.13 per cent and result in
"My phone was exploding with texts from leaders across the country saying, 'This is a nightmare. You have to fix this. They don't know what they're doing,'"
At the crux of the complaints he fielded was a feeling that the potential changes would encourage entrepreneurs to open their businesses elsewhere and push workers in the sector away from
"If taxation and capital gains are so punitive that it doesn't make sense for either someone to stay in the country or choose to leave maybe a more traditional job to go and ... build a new company, you're depriving (the country) of the talent that it needs," Bergen said.
Eighty per cent of 500 businesses consulting firm
While capital gains measures are seen as a way to tax the wealthiest, Bergen said what's in the budget could affect tech workers who aren't in senior positions.
"Those folks who join startups and scaleups as they're beginning their journey are provided stock options and other benefits, which are ultimately determined as capital gains in the future," he said.
"It's marketing experts, sales experts, legal experts that are traditionally mid-career that ... you're completely undermining by this type of policy lever that's being implemented."
Such concerns also reverberated around the highest echelons of Canadian tech. Several
"This is not a wealth tax, it's a tax on innovation and risk taking," he added on Wednesday.
"Our policy failures are America's gains."
The
Forbes estimates Lütke's net worth is valued at
Meanwhile, the head of the
"This measure, which effectively taxes innovation and risk-taking, will significantly dampen
"Such (a) policy change undermines
Furlong promised to "work tirelessly to reverse the decision."
"In some ways, what you're hearing from the entrepreneur community is a feeling that that balance is maybe not where they want it to be in terms of the ability to build a business," she said.
The tension masked some of the benefits for the sector she saw in the budget.
For example, the government set aside
Nankivell was "really glad" AI was given some attention because she said
Money was also allocated toward a program that sees
This report by The Canadian Press was first published
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