Justin Trudeau's government raises taxes on wealthiest Canadians in federal budget

OTTAWA, Ontario (AP) — Canadian Prime Minister Justin Trudeau ’s government announced Tuesday it is imposing higher taxes on the wealthiest Canadians as part of the federal budget.

The budget proposes to increase the capital gains inclusion rate, which refers to the taxable share of profit made on the sale of assets.

The taxable portion of capital gains above $250,000 Canadian (US$181,000) would rise from half to two-thirds, which the federal government says will only affect 0.1% of Canadians and raise nearly $20 billion Canadian (US$14.5 billion) in revenue over five years.

“I know there will be many voices raised in protest. No one likes paying more tax, even — or perhaps particularly — those who can afford it the most,” Finance Minister Chrystia Freeland said.

“But before they complain too bitterly, I would like Canada’s one per cent — Canada’s 0.1% — to consider this: What kind of Canada do you want to live in?”

Freeland presented the federal budget, which pledges $53 billion Canadian (US$38 billion) in new spending that she says is focused on economic justice for younger generations.

Freeland denied that her latest budget is mainly a political exercise — but nonetheless acknowledged that for anyone under 40 in Canada, it’s “just harder to establish yourself” than it was for the generations that came before.

Freeland delivered a budget that she said capped the federal deficit at $40 billion Canadian (US$29 billion).

Trudeau's Liberal government is trailing badly in the polls amid concerns over the cost of living in Canada.

Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland rises to present the federal budget in the House of Commons in Ottawa, Ontario, as Canadian Prime Minister Justin Trudeau, lower right, listens on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland, center, tables the federal budget in the House of Commons in Ottawa, Ontario, on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland, center, presents the federal budget in the House of Commons in Ottawa, Ontario, on Tuesday, April 16, 2024. The Liberal government has already unveiled significant planks of the budget, including billions of dollars to build more homes, expand child care and beef up the military. (Adrian Wyld/The Canadian Press via AP)

Deputy Prime Minister and Minister of Finance Chrystia Freeland holds a press conference in the media-lockup prior to tabling the Federal Budget in Ottawa, Ontario, on Tuesday, April 16, 2024. (Sean Kilpatrick/The Canadian Press via AP)

Canada's Prime Minister Justin Trudeau, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

Canada's Prime Minister Justin Trudeau, left, Deputy Prime Minister and Minister of Finance Chrystia Freeland are joined by cabinet ministers for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

Prime Minister of Canada Justin Trudeau, right, and Prime Minister of France Gabriel Attal, look around the Prime Minister's office in West Block on Parliament Hill, before a meeting in Ottawa on Thursday, April 11, 2024. (Justin Tang/The Canadian Press via AP)

Canada's Prime Minister Justin Trudeau, left, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

Canada's Prime Minister Justin Trudeau, from left, Deputy Prime Minister, Minister of Finance Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, Ontario, on Tuesday, April 16, 2024. (Justin Tang/The Canadian Press via AP)

MADRID (AP) — After spending more than three hours on the court and earning a hard-fought victory, Rafael Nadal was feeling optimistic again.

Nadal's body withstood its toughest test yet at this Madrid Open in a 6-1, 6-7 (5), 6-3 win over 91st-ranked Pedro Cachin on Monday.

He didn't show any signs of physical limitations in a victory that earned him a spot in the round of 16 at the clay-court tournament where he is the record five-time champion.

“It’s positive, now I don’t feel that something went wrong on my body, but I need to wait until tomorrow, being 100% honest,” he said. “I am trying my best to keep dreaming. Tomorrow is another day to keep dreaming. To keep playing in front of this amazing crowd and, to me, that means everything.”

Nadal will next face 31st-ranked Jiri Lehecka. He said he needs “to find a way to be able to play days in a row and still be competitive.”

“I don’t know if I am in that moment yet,” the 22-time Grand Slam champion said. “Let’s see what can happen tomorrow."

The 37-year-old Nadal is trying to get in shape for next month's French Open. Since his latest injury layoff, he's had two matches in Barcelona and was pessimistic about his physical condition after arriving in Madrid. But he's won three more times in the capital.

Nadal again looked comfortable early on against Cachin. The Argentine rallied in the second but was broken twice while serving for the set before eventually prevailing in the tiebreaker.

Nadal didn’t look as loose in the final set, but did look tired. He wasn't as consistent with his shots but picked up three breaks to seal the victory to the delight of the local crowd in the Caja Magica.

“I took more risks in the third set, but it’s hard after so many months without competing,” Nadal said. “I hadn’t played a match like this in a long time. I don’t know how I’m going to wake up. But I’m already happy for having won three matches in a row.”

Cachin asked for Nadal's shirt after congratulating him at the net, and received the gift moments later.

Top-seeded Jannik Sinner was not at his best but had enough to defeat Pavel Kotov 6-2, 7-5. Sinner, who has been dealing with a hip issue, will face 16th-seeded Karen Khachanov.

“I have been struggling a little bit with my right hip,” Sinner said. “We’re trying to find a solution and I don’t think it’s anything serious. Sometimes I feel it more like today and some days are a little bit better."

Third-seeded Daniil Medvedev was two points from defeat before he rallied to beat Sebastian Korda 5-7, 7-6 (4), 6-3.

Fifth-seeded Casper Ruud beat Cameron Norrie 6-2, 6-4.

KEYS DOWNS GAUFF

Madison Keys rallied after trailing in the first and second sets to beat Coco Gauff 7-6 (4), 4-6, 6-4 in an all-American fourth-round meeting.

It will be the 20th-ranked Keys' first quarterfinal appearance in Madrid. She lost in the first round in seven of her nine previous trips to the Spanish capital.

The third-seeded Gauff undermined herself with 38 unforced errors, including 13 double faults.

Keys will face eighth-seeded Ons Jabeur, who eased past Jelena Ostapenko 6-0, 6-4.

SWIATEK ADVANCES

Top-ranked Iga Swiatek remained on track for a first Madrid title with a 6-1, 6-0 win over Sara Sorribes Tormo.

Swiatek dropped just five points in the second set en route to the quarterfinals of the only high-profile European clay tournament she is yet to win.

The 27th-ranked Sorribes Tormo was the last Spanish woman in the draw.

Swiatek, who lost last year’s Madrid final to Aryna Sabalenka, will next face 11th-seeded Beatriz Haddad Maia, who defeated fifth-seeded Maria Sakkari 6-4, 6-4.

Sabalenka, the champion in Madrid in 2021 and 2023, advanced by beating No. 15 Danielle Collins 4-6, 6-4, 6-3. The result ended Collins' 15-match winning streak, and sent Sabalenka into her first WTA 1000 quarterfinal of the season.

Mirra Andreeva celebrated her 17th birthday with a 7-6 (2), 6-4 win over 12th-seeded Jasmine Paolini. The Russian teenager rallied from 5-2 down in the first set to reach the quarterfinals, a round further than she managed in Madrid a year ago.

Fourth-seeded Elena Rybakina defeated teenage qualifier Sara Bejlek 6-1, 6-3.

AP tennis: https://apnews.com/hub/tennis

Rafael Nadal of Spain reacts after winning a point against Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain reacts against Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Iga Swiatek of Poland returns the ball to Sara Sorribes of Spain during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Iga Swiatek of Poland reacts after defeating Sara Sorribes of Spain during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Iga Swiatek of Poland reacts after defeating Sara Sorribes of Spain during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Pedro Cachin of Argentina returns the ball to Rafael Nadal of Spain during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain serves to Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain returns the ball to Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain returns the ball to Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain watches his shot against Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain celebrates after defeating Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain celebrates after defeating Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)

Rafael Nadal of Spain returns the ball to Pedro Cachin of Argentina during the Mutua Madrid Open tennis tournament in Madrid, Spain, Monday, April 29, 2024. (AP Photo/Manu Fernandez)