Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Commentary

Carmichael: Creating wealth grows the economy. Maybe celebrate that for a change?

Daniel Eberhard can’t bring himself to bang his pot with the same vigour as many of the other innovators protesting higher capital gains taxes. 

Commentary

Carmichael: Creating wealth grows the economy. Maybe celebrate that for a change?

Canada’s entrepreneurs should be the heroes of the story

By Kevin Carmichael
To Koho founder and CEO Daniel Eberhard, the capital gains tax changes represent a division between how entrepreneurs think the Canadian economy should grow versus how the government does. Photo: Jimmy Jeong for The Logic
Jun 19, 2024
A A
A Small A Medium A Large
Share

Gift

Share

Daniel Eberhard can’t bring himself to bang his pot with the same vigour as many of the other innovators protesting higher capital gains taxes. 

“I don’t think it’s that intellectually honest [to suggest] that a bunch of people that were here, and were going to build companies here, are now going to leave as a function of this tax-rate change,” Ebherhard, founder and CEO of banking upstart Koho, said at the National Angel Capital Organization summit in Ottawa earlier this spring. 

I’ve been thinking a lot about what Eberhard had to say at NACO. He and Prime Minister Justin Trudeau’s government should be on the same side. 

Eberhard grew up watching his single mom drive a bus and clean houses to provide what he described as a “middle class life.” He co-founded a wind-turbine business and went farm-to-farm in Saskatchewan trying to convince “70-year-old farmers” to try something new. 

He was driven to start Koho because he saw how a lifetime of high banking fees and poor financial advice had robbed his mother of agency.

Related Articles

Carmichael: The fight Chrystia Freeland chose

By Kevin Carmichael

Carmichael: BDC’s latest mental health survey finds light at the end of the tunnel

By Kevin Carmichael

A big reader, one of the titles on the CEO’s list of recommended reads is Ryan Holiday’s The Obstacle Is the Way, a book about the stoic idea that setbacks are inevitable, and that we define ourselves by how we handle them. “Part of your job as a founder is to make no excuses,” Eberhard said. “The market is the market and you have to find a way to be successful within the market.” 

Eberhard has been in the trenches every day since before Trudeau was elected, fighting for the things the Prime Minister wants to achieve. Yet he feels alienated. 

The capital gains tax change is “powerful” because it’s “symbolic” of a “drift between how we think Canada should grow as an economy versus how the government does,” he said. “I think entrepreneurship is the best tool we have to both grow the economy and create social mobility for lower- and middle-income Canadians.” 

When Finance Minister Chrystia Freeland announced on June 9 that she would be going ahead with her tax plan, she acknowledged the upset in the tech community. “No one likes paying more tax, even those who can afford it the most,” Freeland said at a press conference staged at a YMCA in Toronto. “To those Canadians, I want to say, `We applaud your hard work and your success. You are making great contributions to our country. And we want more Canadians to enjoy success as you do and to contribute as you are.’” 

Deputy Prime Minister and Minister of Finance Chrystia Freeland at a news conference about changes to the capital gains tax inclusion rate, on Parliament Hill in Ottawa, in June 2024. Photo: The Canadian Press/Justin Tang

Freeland is a former journalist, so she would be familiar with the writers’ mantra “show, don’t tell.” I doubt Eberhard believes the finance minister cares about whatever success he’s managed to achieve from all his hard work. Fintechs such as Koho have been waiting on open banking regulations since 2018, and an overhaul of the financial infrastructure that is currently controlled by the legacy banks that was supposed to have been finished in 2019. Both are still years away. A government that cared about entrepreneurs would have levelled the playing field by now. 

The capital-gains backlash isn’t only about greed. It’s about policymakers in Ottawa and elsewhere who are always too ready to put other interests ahead of those of the entrepreneurs who are trying to build the next wave of great Canadian companies. 

It’s too easy to make this about Trudeau and Freeland, though. They are little different than the people who elected them. If there’s a problem, it’s us. We “applaud” entrepreneurial success, but do we recognize that someone like Shopify founder Tobi Lütke is creating wealth that will make the economy and society stronger to a degree that few politicians, athletes or entertainers ever will? I don’t think we do. If we did, we wouldn’t keep electing people who make their lives harder.  

Many in Canada dislike comparisons with the United States, because the U.S. is so far out of our league. Yet if we’re experiencing a productivity crisis, it makes sense to benchmark against the country that has arrived at where we think we need to go. There are very clear cultural differences between Canada and the U.S., which deserve more attention in the productivity debate than they’re getting. 

In his book about bourbon-maker Julian Van Winkle III, journalist Wright Thompson writes that Americans are “predisposed to respect craftsmanship” because of the country’s work ethic and “secular myths of bootstrap success.” Entrepreneurship is baked into the idea of America. Those who accomplish remarkable things in business are revered in their communities and become the subjects of books. That’s missing in Canada. The business narratives that do exist tend to revolve around corruption and failure.  

Stories matter. Norms are created and passed forward. “Canadian business leaders and the Canadian government have long been psychologically disincentivized from pursuing long-term business or national strategies that could challenge the established economic order, whether under British or American hegemony in the nineteenth or twentieth century, respectively,” writes Horatio M. Morgan, an associate professor of international strategy and entrepreneurship at the University of Waterloo, in a new paper that explores whether institutional differences explain the persistent gap in the performance of Canadian and American companies. 

Freeland’s budget this spring was a continuation of that history. Disruption is everywhere, but the government decided to stick with the established economic order. Examples include the billions of dollars committed to match U.S. clean energy subsidies and billions more to encourage more home building. Freeland needed money to pay for it all, so she chose to increase a tax that she determined would cause the least amount of harm. It was all very Canadian.

Gift the full article

Fixing the productivity problem might require some new stories about how Canada creates wealth. Daniel Eberhard has a good one.     

Kevin Carmichael is The Logic’s economics columnist and editor-at-large. He has spent more than two decades covering economics, business and finance for outlets including Bloomberg News, The Globe and Mail and the Financial Post, where he also served as editor-in-chief. 

#capital gains tax #Chrystia Freeland #commentary #Daniel Eberhard #economy #fintech #Koho

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Jimmy Jeong for The Logic

Deputy Prime Minister and Minister of Finance Chrystia Freeland at a news conference about changes to the capital gains tax inclusion rate, on Parliament Hill in Ottawa, in June 2024.

Most Popular This Week

A diptych showing Mark Carney on the left, and CIBC CEO Harry Culham on the right.
News

Diversifying trade requires banks to take bigger risks, official advised Carney before CIBC meeting

By Joanna Smith
The image shows the inside of Toronto Stadium on a sunny day. The rows of seats are empty; an empty green field is visible.
News

Toronto and Vancouver aren’t getting a World Cup bookings boom

By Chaimae Chouiekh
A yellow ambulance is pictured outside of a hospital in Montreal. A red sign in the foreground reads, “Urgence / Emergency.”
Commentary: Quebec Ink

Quebec just found out what not having digital sovereignty really means

By Martin Patriquin
An image of Mark Carney standing in front of a red podium with the words "AI for All / L'IA pour tous." He is wearing a suit and tie. In the background, people wearing scrubs and white coats are visible.
Special Report

Canada’s new AI strategy sets lofty goals for adoption and growth

By Murad Hemmadi and Laura Osman

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

News

Canadian mother sues OpenAI claiming ChatGPT encouraged her daughter’s suicide

By Martin Patriquin

Briefing

Canada to publish list of imports at risk of being made with forced labour

By Joanna Smith   |   Jun 12, 2026 | 4:05 PM ET

TMX Group acquires RAFI Indices for $683M

By Anita Balakrishnan   |   Jun 12, 2026 | 3:29 PM ET

Ikea invests in Toronto food startup NS/TX Industries’ US$10.5M fundraise

By Catherine McIntyre   |   Jun 12, 2026 | 3:26 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Commentary: Quebec Ink

Quebec just found out what not having digital sovereignty really means

By Martin Patriquin   |   Jun 8, 2026
A yellow ambulance is pictured outside of a hospital in Montreal. A red sign in the foreground reads, “Urgence / Emergency.”
News

OMERS investment chief departs for Singapore’s Temasek

By Chaimae Chouiekh   |   Jun 10, 2026
The Big Read

We found every data centre in Canada

By Murad Hemmadi, David Reevely, Aleksandra Sagan, Chaimae Chouiekh, Martin Patriquin and Catherine McIntyre   |   Apr 8, 2026
Four vertical slices of aerial view photos. From left, a building in downtown Toronto housing several data centres, a picture of the Albertan wilderness where the proposed Wonder Valley data centre would go, a lit-up QScale data centre in Quebec, and a data centre at a Hydro-Quebec dam.
News

Diversifying trade requires banks to take bigger risks, official advised Carney before CIBC meeting

By Joanna Smith   |   Jun 9, 2026
A diptych showing Mark Carney on the left, and CIBC CEO Harry Culham on the right.
News

Canada’s surprise plan to buy Saab command jets leaves competitors seeking answers

By David Reevely   |   May 29, 2026
A closeup of a scale model of a jet covered in pixellated camouflage, with sensor equipment attached to the top of its fuselage. There are civilians and uniformed military personnel milling in the background.
The Big Read

ApplyBoard faces a reckoning as Canada’s immigration boom turns into a bust

By Claire Brownell and David Reevely   |   May 27, 2026

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account