(Bloomberg) -- A prominent Canadian technology investor joined the chorus of Canadian businesses criticizing Prime Minister Justin Trudeau’s decision to raise the capital-gains tax, arguing it will cause capital flight from the country. 

John Ruffolo, founder of tech-focused Maverix Private Equity in Toronto, said the government’s move to tax Canadian companies on two-thirds of their capital gains, up from the previous level of a half, will make it harder for innovative companies to raise money and drive investors south of the border. 

Ruffolo said it “feels like 2009 all over again” in terms of capital investment in Canada, a reference to the bleak period of slow growth that followed the global financial crisis.

“That same narrative is starting to play out again, and at a time when not only is the innovation sector starting to feel the pain on the rest of the economy — we’re suffering from the lack of productivity due to the lack of investment,” Ruffolo said Tuesday during an event in Toronto. 

The capital-gains change, announced in Finance Minister Chrystia Freeland’s budget a week ago, will also apply to individual taxpayers in years when they book capital gains in excess of C$250,000 ($183,000). Business leaders and trade associations were quick to slam the decision, saying it will diminish growth and investment in the country.

Read More: Firms Say Canada Tax Move Risks Deeper Productivity Slump

Ruffolo said the country’s productivity slump is related to a long-term shortage of investment by Canadian firms in productivity-enhancing technology. Taxing capital gains at a higher rate, he said, runs the risk of “creating a situation that’s antagonistic for investors” and may prompt them to prefer to invest in US startups instead.

“Mark my words, if this tax change stays the way it is, we’re going to see an outflow of angel capital for sure,” Ruffolo said. “Foundations, high-net worth folks that are holding the capital into companies — that’s going to be gone.”

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