I was actually thinking that raising the capital gains tax might inadvertently add fuel to the Toronto housing market.  I keep reading that part of what’s making the Toronto housing market so hot is too few homes on the market because people have been reluctant to cash out.  So let’s say I’m an empty nester sitting on a multimillion dollar house in Toronto.  I’m on the fence as to whether to keep my money invested in my house, or cash out and let my financial advisor put it in some conservative mutual funds.  Well by raising the capital gains tax the government has just made it that much more desirable to keep the house and forget the mutual funds, haven’t they?