Conservative leader Pierre Poilievre has pledged to eliminate capital gains taxes if the money gained from selling an asset is put back into investments within Canada. This move allows businesses to defer capital gains tax if they reinvest in active Canadian businesses, with the break being applicable on reinvestments from July 2025 until the end of 2026. The decision to implement this tax break is in response to the economic challenges Canada faces due to a trade war with the US, with efforts to promote local investments. As Canadians prepare to vote for a new leader, Poilievre's proposal aims to spur domestic investment and counter the impact of US president Donald Trump's policies. In addition to this, Poilievre had previously announced plans to provide an extra C$5,000 ($3,500) in tax-free savings room for individuals who invest in Canadian companies. Poilievre believes that exempting reinvestments from tax will encourage significant financial resources to be channeled into building, hiring, and growing the economy. Recent polls from Abacus Data show Poilievre and Liberal leader Mark Carney tied at 39% of voter support.