Business
Ottawa’s capital gains tax hike—final nail in ‘business investment’ coffin

From the Fraser Institute
By Tegan Hill and Jake Fuss
From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker
According to the recent federal budget, the Trudeau government plans to increase the inclusion rate from 50 per cent to 66.7 per cent on capital gains over $250,000 for individuals and on all capital gains realized by corporations and trusts. Unfortunately, this tax hike will be the final nail in the coffin for business investment in Canada, which likely means even harder economic times ahead.
Canada already faces a business investment crisis. From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker—from $20,264 per worker in 2014 to $16,515 per worker in 2022.
While business investment has declined in Canada since 2014, in other countries, including the United States, it’s continued to grow. This isn’t a post-COVID problem—this is a Canada problem.
And Canadians should be worried. Businesses investment is key for strong economic growth and higher living standards because when businesses invest in physical and intellectual capital they equip workers with the tools and technology (e.g. machinery, computer programs, artificial intelligence) to produce more and provide higher quality goods and services, which fuels innovation and higher productivity. And as firms become more efficient and increase profits, they’re able to pay higher wages, which is why business investment remains a key factor for higher incomes and living standards.
The Trudeau government’s policies—increased regulation, particularly in the energy and mining sectors (which makes Canada a relatively unattractive place to do business), higher and uncompetitive taxes, and massive federal deficits (which imply future tax increases)—have damaged business investment.
Unsurprisingly, weak business investment has correlated with a weak economy. In the fourth quarter of 2023, real economic growth per person ($58,111) officially fell below 2014 levels ($58,162). In other words, Canadian living standards have completely stagnated. In fact, over the last decade economic growth per person has been the weakest on record since the 1930s.
Instead of helping fix the problem, the Trudeau government’s capital gains tax hike will further damage Canada’s economy by reducing the return on investment and encouraging an exodus of capital from the country. Indeed, capital gains taxes are among the most economically-damaging forms of taxation because they reduce the incentive to invest.
Once again, the Trudeau government has enacted a policy that will deter business investment, which Canada desperately needs for strong economic growth. The key takeaway for Canadians? Barring a change in policy, you can expect harder times ahead.
Authors:
Business
Breaking: Explosive FBI Warning—CCP, Iran, and Mex-Cartels Partnering in Canada to Move Fentanyl and Terrorists Into U.S.

Sam Cooper
Patel’s warning echoes The Bureau’s exclusive reporting on a criminal convergence linking CCP-backed chemical suppliers, Iranian proxies, and Mexican cartels operating through Vancouver superlabs
In an explosive Sunday interview that will place tremendous pressure on Prime Minister Mark Carney’s new Liberal government, FBI Director Kash Patel alleged that Mexican cartels, Chinese Communist Party operatives, and Iranian threat actors have forged a new axis of criminal cooperation, using Canada’s porous northern border and the Port of Vancouver—not the southern Mexican border—as their preferred entry point to flood fentanyl and terror suspects into the United States.
“In the first two, three months that we’ve been in the seat under Donald Trump’s administration, he has sealed the border,” Patel told Fox News’ Maria Bartiromo. “He has stopped border crossings. So where’s all the fentanyl coming from? Still? Where’s the trafficking coming from still? Where are all the narco traffickers going to keep bringing this stuff into the country? The northern border. Our adversaries have partnered up with the CCP and others—Russia, Iran—on a variety of different criminal enterprises. And they’re going and they’re sailing around to Vancouver and coming in by air.”
Patel asserted that adversarial regimes—including Beijing and Tehran—are now working in tandem on “a variety of different criminal enterprises,” and exploiting what he called the “sheer tyranny of distance” on America’s northern frontier, where vast terrain and lax enforcement in Canada have allegedly enabled fentanyl pipelines and terrorist infiltration.
Pointing directly at Carney’s government, Patel continued:
“Now we’re focused on it and we’re calling our state and local law enforcement partners up [at the northern border]. But you know, who has to get to step in is Canada—because they’re making it up there and shipping it down here.”
The FBI director’s warning—posted on the White House’s X account— follows exclusive reporting by The Bureau and a newly released 2025 threat assessment from the U.S. Drug Enforcement Administration, which, for the first time, officially flags Canada as an emerging threat node in the North American drug supply chain.
As The Bureau reported earlier this week, the DEA highlighted the dismantling of a fentanyl “super laboratory” in October 2024 in Falkland, British Columbia—a mountainous corridor between Vancouver and Calgary—as an emerging threat in fentanyl trafficking targeting the United States. Sources pointed to the same converged threat network—China, Iran, and Mexico—mentioned today by FBI Director Kash Patel.
“According to these sources,” The Bureau reported Friday, “the site forms part of a broader criminal convergence involving Chinese, Mexican, and Iranian networks operating across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. The Bureau’s sources indicate that the Falkland facility was connected to Chinese chemical exporters sanctioned by the United States Treasury, Iranian threat actors, and operatives from Mexican drug cartels.”
In his remarks today, Patel appeared to directly link this criminal convergence to terrorist infiltration.
“And I’ll give you a statistic that I gave to Congress that nobody was paying attention to,” Patel added. “Over 300 known or suspected terrorists crossed into this country last year, illegally… 85 percent of them came in through the northern border.”
Patel also appeared to turn up the political pressure on Ottawa, alluding to President Trump’s recent controversial statements about Canada—which became a flashpoint in the federal election, with many voters embracing the Liberal Party’s campaign framing Carney as a bulwark against Trump.
“I don’t care about getting into this debate about making someone the 51st state or not,” Patel said, referencing Trump’s remarks. “But [Canada] are a partner in the north. And say what you want about Mexico—but they helped us seal the southern border. But facts speak for themselves. It’s the [northern] border that’s open.”
The Bureau will continue to follow this story in the coming week.
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Automotive
Tesla stock soars for fourth straight week on Musk Play plan, board shake-up

MxM News
Quick Hit:
Tesla shares surged more than 16% this week, notching a fourth consecutive week of gains and cutting into steep year-to-date losses. The rally is fueled by news of a potential new pay package for Elon Musk and the strategic addition of Jack Hartung, Chipotle’s outgoing president, to Tesla’s board. These developments come amid rising scrutiny over the board’s governance and compensation decisions, especially concerning Musk’s controversial $56 billion pay package from 2018.
Key Details:
- Tesla stock has gained over 16% this week and is now down just 13% for the year, recovering from a 40% loss earlier in 2025.
- Jack Hartung, Chipotle’s president, will join Tesla’s board on June 1, bringing seasoned business leadership.
- A special Tesla board committee is evaluating a new compensation plan for Musk after legal challenges to his previous $56 billion package.
Diving Deeper:
Tesla’s stock (TSLA) closed the week strong at $349.98, climbing 2.09% on Friday alone and marking a fourth straight week of gains. This momentum has helped the electric vehicle maker erase much of its earlier 2025 losses, which had topped 40% at one point. Now down just 13% year-to-date, the turnaround comes as investors digest two pivotal developments that could shape Tesla’s future leadership and direction.
The most immediate catalyst: Tesla’s announcement that Jack Hartung, the president of Chipotle Mexican Grill, will join its board of directors beginning June 1. Hartung will also serve on the audit committee, a significant appointment given Tesla’s board has been under fire for lack of independence and weak oversight of CEO Elon Musk. Hartung brings executive experience from not only Chipotle but also board roles at Portillo’s, the Honest Company, and ZocDoc—credentials that could help restore confidence in Tesla’s boardroom governance.
Hartung’s addition follows the bombshell report from the Financial Times earlier this week that Tesla’s board has formed a special committee to explore a new pay package for Elon Musk. The committee’s task is to find “alternative ways” to reward Musk for past work in case Tesla fails to reinstate the original 2018 compensation deal, which is now under appeal with the Delaware Supreme Court. That deal—valued at $56 billion—has drawn fire from large shareholders, prompting broader questions about Musk’s influence over Tesla and whether the board has effectively served as a rubber stamp for his ambitions.
Critics have warned that Musk’s threat to redirect his artificial intelligence efforts away from Tesla unless he is granted additional stock options represents an outsized concentration of power in the hands of one individual. While Musk continues to be the face of the company’s innovation and success, these governance concerns have given activist investors and institutional shareholders new ammunition.
Tesla board chair Robyn Denholm has also come under scrutiny, particularly after Wall Street Journal reporting suggested the board was considering replacing Musk or had urged him to spend more time at the company. Denholm has publicly denied those claims, but her own record—cashing out more than half a billion dollars in Tesla stock since joining the board in 2014—hasn’t helped stem criticism. In fact, the board recently had to settle a lawsuit over excessive director compensation, refunding millions of dollars to shareholders.
Despite these governance challenges, the market has responded positively to the board’s recent moves, seeing them as steps toward restoring stability and investor confidence. The addition of Hartung and the new pay committee could signal a willingness to address long-standing concerns about independence and oversight, even as Musk remains firmly at the center of Tesla’s orbit.
For now, investors appear to be betting that a more disciplined board—paired with a still-charismatic and high-impact CEO—could be a recipe for renewed growth and focus.
‘Elon Musk introducing the Model X” by Steve Jurvetson licensed under (CC BY-SA 2.0)
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