The proposed tax regime would override existing treaty protections and apply higher withholding rates of up to 30 percent on passive income, real estate gains, and business profits from US sources.
According to CTV National News, Canadian investor Derek McGregor said, “I would be losing close to six figures every single year if this new bill gets implemented.”
With 98 percent of his portfolio in US entities, McGregor warned that it “would make it nearly impossible to live the same lifestyle we’re living now.”
Crowe Soberman LLP tax partner Ali Spinner told BNN Bloomberg that “everyone, in some capacity, who is a retail investor should be concerned.”
Spinner said Canadians should “pay attention, but don’t panic,” and recommended discussing the potential impact with advisors, adding that the bill’s language could still change.