text: What about the massive tax free gains due to the principal residence exempton on residential real estate in Toronto and Vancouver? So, it is ok for these residents to use this exemption to shelter their gains tax free, while business owners can't accumulate retained earnings for potential expansion of their business, smoothing business earnings or saving for retirement?  Small business owners support local economies across the country by employing people, buying local goods and services, and building capital to expand and start other businesses.  Meanwhile, our friends in hot real estate markets who have not done ANYTHING  to earn their wonderful tax free gain on their principal residence can move to a less economically buoyant area with their 1 million tax free, and retire smugly.  The small business owners in the rest of the country will continue to toil without this massive tax free infusion of cash.