[ohmygoodness]

Flaherty says capital tax cut "challenging"

Mon Mar 27, 5:50 PM ET

SURREY, British Columbia (Reuters) - Canadian Finance Minister Jim Flaherty said on Monday it will be challenging to work out details of a promised cut in the capital gains tax in the short term as the new Conservative government prepares its new budget.

Flaherty refused to say what tax changes would be in the budget, expected to be presented in April or May, but said the capital gains tax cut plan was complicated and the government was still consulting on how to carry it out.

"I would be less than candid with you if I said that was not quite challenging to accomplish in the short term," Flaherty told reporters after speaking to a business group in the Vancouver suburb of Surrey.

The Conservatives promised during the campaign leading up to the January 23 election to eliminate capital gains taxes for individuals on the sale of assets as long as the proceeds are reinvested within six months.

"I can't get into what's going to be in the budget or what's not. I can say that that is a particularly complex issue in terms of designing the plan," Flaherty said.

Flaherty said the Conservatives, who won only a minority government on January 23, were committed to keeping all of their election promises on taxes, which included reductions in the good and services tax.

"We have to be fiscally responsible so we're not going to do everything at once. Nor did we say in the platform that we would do everything at once, but we will keep our commitments over time," he said.

Flaherty said he was still working on the budget and declined to say when it would be presented. "We haven't set the date yet," he said.

This is me looking unsurprised.