Conservative MP shares inaccurate, ChatGPT-generated stats on capital gains tax rate
An Ontario Conservative MP's use of ChatGPT to share incorrect information online about Canada's capital gains tax rate offers a cautionary tale to politicians looking to use AI to generate messages, one expert says.
MP Ryan Williams posted last week on X (formerly known as Twitter) an AI-generated ranking of G7 countries and their capital gains tax rates.
The list appeared to have been generated by ChatGPT — an artificial intelligence-based virtual assistant — and falsely listed Canada's capital gains tax rate as 66.7 per cent. The ChatGPT logo was shown in the screenshot Williams posted. The post has since been deleted.
The Liberal government's increase to the capital gains inclusion rate — the amount of capital gains that are considered taxable income — has become a new point of attack for the Conservatives since the party voted against the change earlier this month. Conservative Leader Pierre Poilievre posted a nearly 16-minute online video about the change.
But the capital gains inclusion rate and tax rate are two different things. The inclusion rate is the portion of the capital gain subject to tax; capital gains tax rates themselves vary depending on income.
A capital gain is the difference between an asset's cost and its total sale price. That asset could be a cottage, an investment property, a stock or a mutual fund. In Canada, primary residences are not included under the capital gains tax.
The changes that take effect Tuesday will raise the inclusion rate for individuals from 50 per cent to 66.7 per cent for capital gains above $250,000. For the first $250,000 in capital gains, only $125,000 is taxable. Two-thirds of every dollar beyond $250,000 will be taxable. Federal income tax rates are then applied to those