Pierre Trudeau
Taxation

In 1969, Trudeau's first finance minister, Edgar Benson, introduced a white paper on tax reform which included tax deductions for child care and advocated shifting the tax burden from the poor to the wealthy. Measures to fulfill the latter proposal included a capital gains tax, which was severely criticized by corporate Canada and the business community (notably Israel Asper). The bill was debated in Parliament for over a year, with its more radical proposals being removed in parliamentary committee. The reforms managed to be passed through the use of closure, with the capital gains tax (that had an inclusion rate of 50 percent) coming into effect on January 1, 1972, as prescribed by the 1971 budget. Also implemented in 1972 was the child care expense deduction which allowed for a deduction of up to $500 per child. As Benson had now become a political liability, Trudeau replaced him with John Turner (who was seen as a " Business Liberal ") in 1972.

In 1973, Trudeau's government fully indexed the person income tax system (both the exemptions and the brackets) to match inflation. The indexation was made effective in 1974; during that year, inflation had jumped from six percent to double digits. The government also implemented three personal income tax cuts from 1973 to 1975.
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