Editing Pierre Trudeau (section)

====Taxation====
In 1969, Trudeau's first [[Minister of Finance (Canada)|finance minister]], [[Edgar Benson]], introduced a white paper on tax reform which included [[tax deduction]]s 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 [[cloture|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 Canadian federal budget|1971 budget]].<ref name ="Bensonglobeandmail">{{cite web |last1=Hustak |first1=Alan |title=Unflappable finance minister rewrote Canada's tax rules |website=The Globe and Mail |access-date=May 27, 2023 |url=http://www.v1.theglobeandmail.com/servlet/story/LAC.20110913.OBBENSONATL/BDAStory/BDA/deaths |date=September 13, 2011 |archive-date=March 3, 2018 |archive-url=https://web.archive.org/web/20180303222855/http://www.v1.theglobeandmail.com/servlet/story/LAC.20110913.OBBENSONATL/BDAStory/BDA/deaths |url-status=dead }}</ref><ref>{{cite web |last1= |first1= |title=A primer on capital gains taxes in Canada |url=https://www.cbc.ca/news/business/a-primer-on-capital-gains-taxes-in-canada-1.231145 |website=CBC News |access-date=May 27, 2023 |date=October 18, 2000}}</ref><ref name=":LeaderPost">{{Cite news |date= June 19, 1971 |title=Benson Reduces Taxes, Will Hit Capital Gains |agency=The Canadian Press |newspaper=The Leader-Post|url=https://news.google.com/newspapers?nid=w9EjUEod0xMC&dat=19710619&printsec=frontpage&hl=fr|access-date=June 17, 2020 |via=Google News Archive}}</ref> Also implemented in 1972 was the child care expense deduction which allowed for a deduction of up to $500 per child.<ref>{{cite journal |last1= Heidinger|first1= Loanna|last2= Findlay|first2= Leanne C.|last3= Guèvremont|first3= Anne|title=Uptake of the child care expense deduction: exploring factors associated with the use of the child care expense deduction among families with a child under 12 years |journal=International Journal of Child Care and Education Policy |date=September 11, 2020|volume= 14|doi= 10.1186/s40723-020-00076-0|s2cid= 256428463|doi-access= free}}</ref> As Benson had now become a political liability, Trudeau replaced him with [[John Turner]] (who was seen as a "[[Blue Grit|Business Liberal]]") in 1972.<ref name ="Bensonglobeandmail" /><ref>{{cite web |last1=Tuns |first1=Paul |title=30 years of Liberal infighting |url=https://ottawacitizen.com/news/politics/paul-tuns-30-years-of-liberal-infighting |website=Ottawa Citizen |access-date=May 27, 2023 |date=June 16, 2014}}</ref>

In 1973, Trudeau's government fully indexed the [[Income tax in Canada|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.<ref>{{cite web |last1=Watson |first1=William |last2=Clemens |first2=Jason |title=The History and Development of Canada's Personal Income Tax |url=https://www.fraserinstitute.org/sites/default/files/history-and-development-of-canadas-personal-income-tax.pdf |date=2017 |publisher=Fraser Institute |access-date=April 3, 2023}}</ref> The government also implemented three personal income tax cuts from 1973 to 1975.{{sfn|Cohen|Granatstein|1998|pp=238-239}}