Dear innovators,

There are 338 Members of Parliament who are always trying to gauge the political climate. When they hear directly from constituents and community leaders, they take it to heart. Speaking directly to MPs and their staff is a powerful signal to them. It is also worth engaging with elected politicians at the provincial and municipal level. All of these people talk to each other.

If you’re reading this, you are already aware of the proposed changes to capital gains tax. Speaking directly to politicians and their staff about your personal experience is among the most effective ways to help them understand the importance of this issue, and the need to change course.

As a business leader, you likely already have some political contacts in your community. You can also **find the contact information for your Member of Parliament** and call their office to schedule a meeting.

Be sure to let them know you are a constituent and business owner and want to discuss the negative impacts of the capital gains changes. A phone call is dramatically more impactful than an email. Where possible, speaking to them in person is always better than virtual!

Your personal anecdotes and expertise in business is more powerful than any talking point. In particular, you can emphasize:

• Impact on your ability to recruit and retain talent
• Impact on the availability of growth capital
• How tax treatment would impact your decision to pursue entrepreneurship

Be respectful. Be calm and professional. And let them know what you think.

Key Facts

• Canada’s digital economy employs more than 2.2 million people, according to the Information and Communications Technology Council.
• 1 in 4 STEM students – and two thirds of software engineering students – were leaving Canada after graduation in 2018. 81% of those leaving are going to the US, and most to California, Washington and New York.
• Canada is bad at creating the conditions for high-growth companies. The federal 2017 Budget aimed to double the number of high-growth firms from 14,000 to 28,000 by 2025. Instead, by 2020, there were just 10,000 – a decline of 30% of Canadian high-growth companies.
• According to the MaRS CEO Perspective Survey, as a result of the capital gains changes, more than 78% of Canadian CEOs, Presidents, and Founders had a “much less favourable view” or “less favourable view” of Canada as a place to grow a technology company.
  • 6% of Canadian CEOs, Presidents, and Founders believe the capital gains changes will deter innovation and investment, while a further 21.9% believe it will harm job creation and talent recruitment.
  • Over 84% of Canadian CEOs, Presidents, and Founders now view the United States as the best place to grow a technology company.
• More than 70% of Logic subscribers have a negative view of the capital gains tax hike.
• US research shows that a 5% decrease in capital gains taxes would mean over 15% more start-ups.
• Entrepreneurship and risk-taking is in crisis. Today in 2024, there are nearly 100,000 fewer entrepreneurs in Canada than in 2000.

Other Resources