The Canadian Venture Capital and Private Equity Association is urging the finance minister to soften the impacts of its planned capital gains tax hike on private equity and venture capital investors, as well as the companies they back. (The Logic)

Talking point: The lobby group’s recommendations include assets held for longer than five years to be exempted from the 67 per cent inclusion rate the government plans to impose starting next month, up from the current 50 per cent. The group wants the $250,000 portion of capital gains that’s exempted from the higher rate to accumulate over the years that an asset isn’t sold, similar to the RRSP carry-forward principle, and for the Canadian Entrepreneur Incentive to align with the U.S. Qualified Small-Business Stock, by extending the reduced 33.3 per cent inclusion rate to gains of at least $13.5 million, up from $2 million. CVCA says the recommendations would incentivize high-risk, high-reward business ventures, reduce the cost of capital and help retain talent in Canada.