Deplorables Week

Strike one, eat the rich. Strike two, attack the docs. Strike three, tax risk.

Welcome to the second T2 budget, now just a few weeks off, proving without a doubt the land belongs to the 99%ers, now moving in a direction opposite to the Trump-infused masses beneath us.

Yes, it’s Deplorables Week here at GreaterFool as we chronicle the federal government’s self-lubricating push to take wealth and income from the successful, then sprinkle it upon the rest. It started with the new tax bracket boosting the top marginal rate well above 50%. It continued with the halving of TFSA contributions. It looks certain to lower the hammer on the self-employed, including doctors with corps, by Hoovering their retained earnings. And now comes the ultimate penalty for having saved and invested – a honking big increase in the capital gains tax.

Word is spreading that T2 and his finance guy, Bill Morneau (who should know better) will increase the capital gains inclusion rate from 50% to at least 66% and maybe even 75%.

Whazzat mean?

Simply that every rental condo, mutual fund, stock, ETF, gold bar or piece of land that has appreciated in value since you bought it will help finance all those people who never saved anything, maybe bought a house, had kids and expect a good life.

Currently the profit you make on an investment is taxed at 50% of your personal marginal rate. This recognizes the fact that (a) the money you invested in the first place was already taxed, (b) over time inflation has artificially added to gains and should not be taxed and (c) when you invest (rather than save), you absorb risk. Sometimes a lot of it – unlike sticking money in a GIC. That risk means your capital ends up in the economy and probably helps give somebody a job. So, to encourage this activity, capital gains have been taxed less than earned income.

T2 does not get this. Nor do a lot of academics and tax theorists. They hate the preferential treatment of money made through investing (capital gains, dividends or small corps) and argue that every dollar should taxed equally – whether you earned it as a civil servant with a defined-benefit pension, or as an entrepreneur surviving by your wits. Taxing income in different ways, they add, has made the divide between the 1% and the 99% worse. It runs counter to the current Liberal thinking that the greatest social benefit will come when we all make roughly the same. So we get Robin Hood, while the Americans get Robber Baron.

Anyway, here’s what it means if you are a 1%er (income over $225,000). On a capital gain now you will pay between 23.8% (BC) and 27% (NS). So if you bought stocks for $100,000 that went to $200,000, the tax would be something close to $25,000. You get to keep the other $75,000 in profit.

If the inclusion rate goes to 66%, the tax bill will rise to about $35,000. If the rate rises to 75%, then the tax owing will become roughly $40,000.Yes, you despicable rich people, that’s an effective tax increase of 50%. And, yes, it’s being seriously contemplated for immediate implementation.

This week major accounting firm Grant Thornton sounded the alarm with its clients – an unusual event. Its conclusion: “It is anticipated that the government will increase the capital gain inclusion rate from 50% to 66.67% or possibly 75% to address the current deficit. Note that a 75% inclusion rate would result in a 50% increase in capital gains tax and a 66.67% inclusion rate would result in a 33.33% increase in capital gains tax.”

Of course, gains in residential real estate are (for now) exempt from capital gains tax, so a change like this might only serve to drive more money into a single asset and make people even more unprepared for their retirement needs. That would push debt levels higher – and already household debt is greater than the value of the entire economy. Yikes. Is this what our leaders wish?

Unknown is whether the feds will accompany this with changes to the lifetime cap gains tax exemption, or the ability small business owners have to retire and sell out on a tax-advantaged basis. Plus you can still (so far) deduct capital losses from gains to reduce the tax. But see the direction we are heading in?

The hated 1%ers pay 11% of all income taxes. That’s a big burden. Without them, the Deplorables would be paying a lot more. I guess that’s the plan.

299 comments ↓

#1 cecilhenry on 02.08.17 at 5:05 pm

If this is true then I want to quit it all. Viva la revolution.

Working, conscientiousness, doing the right thing. To hell with it. This parasitism must end.

I despise these people. May Canada die if this is what they turn it into.

And watch Canadian markets decline if this is done. Since investment just because a whole lot of working for someone else— again, AFTER already been taxed on the income once.

Democracy has become one vote and 2 minutes of input every four years, followed by government fiat on 10,000 decisions to tax, steal and coerce everything from you for next 4 years–with state force to back it up.

Unacceptable. Hypocritical. There is no freedom here. The grocery store is the only place left where even a modicum of free market forces, reciprocity and direct accountability are evident every day, not twice a decade.

My only question: What can I do to actively STOP this involuntary subsidization of a parasitic system that is destroying my freedom and interests: economically, politically, culturally, and personally?.

#2 DodgedBullet on 02.08.17 at 5:06 pm

Gah!

I’ve worked my tight buns off for all that we as a family have, we’ve saved as much as possible by not over extending ourselves and making smart decisions.

I have maxed out our TFSA’s, children’s RESP’s and most of our RRSP contribution room; this year will bring an opportunity to push into un-registered cash accounts, talk about punishing the savers!

As I’ve hit my late 30’s I feel more and more sidelined by what I read, your piece was no exception.

dismayed in Ontario.

DB.

#3 Toronto Renter on 02.08.17 at 5:10 pm

Why don’t they include Houses (primary residence) in capital gains tax.

House is a necessity but so are my retirement savings.

Most of my friends made 500K -700K just filliping their “primary residence”.

#4 Ponzius Pilatus on 02.08.17 at 5:10 pm

The hated 1%ers pay 11% of all income taxes. That’s a big burden. Without them, the Deplorables would be paying a lot more. I guess that’s the plan.
————-
With due respect, Garth.
But with fairer distribution of incomes, the deplorables would earn more, and therefore pay more taxes.
Win-Win, I’d say.
BTW, I don’t mind that the high wages that educated professional are making.
What irks me are the flippers and CEO’s who really don’t add much economic value.

How does taxing a small group give the rest have higher wages? — Garth

#5 Starbucks on 02.08.17 at 5:14 pm

Hey Garth, 2nd time poster , can someone please comment. I have a business that is incorporated am I better off taking a wage or dividends? I’m 35, so if my husband and myself opt out of paying cpp we can contribute about 10k a year into some type of investment
So say at 65 we would of invested 300k so what would that be worth then? Should be a nice number. If we keep paying into cpp and we both die at 62 in a car accident we will get shizzle but Ottawa will be more than happy. If we take dividends we can’t contribute to rrsp’s. We have np saving money. Like Garth says if ur depending on that money ur screwed. Our net worth is 800k right now and we rent. I would love to hear responses from business owners..
Thank you
Star

#6 Deckchair on the Titanic on 02.08.17 at 5:14 pm

Dear Garth:

Quandry time. I love to work. I don’t need to, but I do love what I do. I get to spend my working time where I want, when I want, and I also get to basically decide what I want to do, so long as it “fits the mandate”.

So, should I a) worry about taxes, or b) quit working, reduce my tax rate, and frump around unhappy, or c) just enjoy every day?

I tried b) for a while, but was not too good at it. I’m trying a) on for size, but unsure. I like c), but maybe I’m blind, and should be worrying about a)…

Help!

Signed – confused.

#7 Ponzius Pilatus on 02.08.17 at 5:17 pm

Regarding private vs. Government liquor stores.
I always wonder why the private liquor stores in Alberta charge more than the ones in BC.
According to the Adam Smiths of this blog, it should be the opposite.

#8 Boots on the Ground in Ptld on 02.08.17 at 5:21 pm

And with that bottom pic, you’ve begun that revolution alluded to in prior monthes. Bet you’ll see 200 comments on this post too. This is unbelievable. I don’t feel its any longer con****acy to see that further shackling the free markets through taxing and no incentives is truly what T2 seems to want.

#9 Ponzius Pilatus on 02.08.17 at 5:22 pm

Further more, many private liquor stores in Vancouver give you pathetic loyalty points.
You practically have to drink yourself to death, before you have enough points to get a free can of Old Stock.

#10 Not Morneau on 02.08.17 at 5:23 pm

Here’s what you have to do Garth:

Lobby to leave capital gains inclusion rate for all asset classes at 50% EXCEPT residential real estate. Raise that to 100% and set up a department to enforce this (would solve revenue crisis).

Think of how many problems this would solve with minimal collateral damage (except to flippers).

#11 Long-Time Lurker on 02.08.17 at 5:25 pm

Maybe I’m first? I’m reading early, today.

Thanks, socialists: Equal poverty for all. Reward the unproductive and punish the productive.

I used to think of socialism as communism-lite but now they’re rather the same thing.

Anyway, lots of big things happening in the international news today. The next month and year could be extremely chaotic. On a historical scale, I’d give it a 8 out of 10.

I’ll toss one softball that may interest the readers of this blog.

Wall Street Journal: Overseas Chinese are increasingly purchasing property in Seattle because of the BC housing tax.

#12 Tron on 02.08.17 at 5:29 pm

“The hated 1%ers pay 11% of all income taxes. That’s a big burden. Without them, the Deplorables would be paying a lot more. I guess that’s the plan.”

The 1%ers also earn roughly 11% of the income share in Canada. So doesn’t it seem rational that they would pay 11% of income taxes?

If you throw in that our tax system is meant to be progressive, and that other transaction taxes (i.e. HST) are regressive and burden low income Canadians disproportionately, an 11% income tax share seems on the low side.

#13 rainclouds on 02.08.17 at 5:36 pm

Policy brought to you by the Brain trust of the WWF. Given Butts and T2’s extensive private sector experience this should play well……..what could possibly go wrong?

Ontario goes blue next election. If the CPC’s dont completely screw it up, Feds Next.

Idiot social changers relegated to separating their garbage in the back alley blue bins in their housecoats with their pensions intact

Revolting …………..

We are f@#ked.

https://en.wikipedia.org/wiki/Gerald_Butts

#14 Lead Paint on 02.08.17 at 5:49 pm

“That risk means your capital ends up in the economy and probably helps give somebody a job. ”

Doubtful claim as most investments go to larger publicly traded firms whose goal is to inflate their share price so the officers can reach their quarterly goals/bonuses- a very destructive influence on society.

Taxing people who ‘invest’ in big oil and hedge funds does not hurt the local economy. Raising HST or crippling new grads with taxes does.

#15 Smoking Man on 02.08.17 at 5:50 pm

Trudeau has no clue, he’s going to do a lot of damage in the next 3 years, hopefully, you dogs are hedged.

Good time run….or baton down the hatches

See you dogs Feb 18th. No phone or wifi where I’m going.

#16 Doug t on 02.08.17 at 5:51 pm

And to think this year is just starting. By the time Trump is done with Canada and the rest of the world……….we are F**KED

#17 Not Morneau on 02.08.17 at 5:52 pm

Capital gains eventually going to have to up to 100% for all asset classes.

The wrinklies will demand healthcare, pensions, and that their homes stay above $1 million in value.

#18 rainclouds on 02.08.17 at 5:56 pm

https://betterdwelling.com/city/vancouver/

YVR: Listings swelling, sales swooning (except of course for the area near the Broadway skytrain)

#19 Fran Lawson on 02.08.17 at 5:59 pm

Garth,
If the change to the inclusion rate is brought in, do you think it would be effective from the announcement or do you think it would be retro-active?

Changes such as that are usually immediate. — Garth

#20 Goldie on 02.08.17 at 6:05 pm

T2 has been a disappointment on many fronts. Did anyone hear him a couple days ago going on about ” the patriarchy”? What a load if social justice crap. He belongs on a liberal university campus, not the prime seat of government.
And just yesterday the MSM was bleating with glee over some poll where a bunch of Americans said they’d prefer Trudeau over Trump. Lol. Fools.

#21 Ask the man on 02.08.17 at 6:05 pm

#5 Starbucks on 02.08.17 at 5:14 pm

Hey Garth, 2nd time poster , can someone please comment. I have a business that is incorporated am I better off taking a wage or dividends? I’m 35, so if my husband and myself opt out of paying cpp we can contribute about 10k a year into some type of investment
So say at 65 we would of invested 300k so what would that be worth then? Should be a nice number. If we keep paying into cpp and we both die at 62 in a car accident we will get shizzle but Ottawa will be more than happy. If we take dividends we can’t contribute to rrsp’s. We have np saving money. Like Garth says if ur depending on that money ur screwed. Our net worth is 800k right now and we rent. I would love to hear responses from business owners..
Thank you
Star

&*(

This is really the sort of question that Smoking Man would be best suited to answer. I suggest you re-post your question and ask him directly. He writes on these issues every second day.

#22 crowdedelevatorfartz on 02.08.17 at 6:06 pm

@#153 me tax a you
“Do you think the private sector will offer the same selection and pricing to a consumer in Smithers as they do in Vancouver?”
********************************************
Well, if my experience drinking in Smithers is any indication…….
Quality isnt a requirement.
Quantity IS a requirement.
Thus pallets of $19.99/case of cold beer in a walkin freezer at WalMart will do the trick

#23 Alberta Ed on 02.08.17 at 6:06 pm

We can be sure, though, that T2 & Co. will make sure their own nests are well-feathered.

#24 William on 02.08.17 at 6:08 pm

Today’s census population data combined with CMHC’s housing start data paint an alarming picture of oversupply in ON and BC.

Ontario, 2011 to 2016
Population growth: 596,673
Cumulative housing starts: 342,069

British Columbia, 2011 to 2016
Population growth: 247,998
Cumulative housing starts: 156,164

Given an average household size of 2.5, it is obvious that we are building far more homes than we need for population growth.

http://www.statcan.gc.ca/daily-quotidien/170208/t002a-eng.htm

http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/manuf05-eng.htm

#25 Doug t on 02.08.17 at 6:09 pm

I do believe we are heading towards a long recession and T2 is pushing the country right into it with his new policies – Trump will put the icing on the cake.

#26 cd on 02.08.17 at 6:10 pm

Hi Garth…

I am a science nerd who occasionally does some investing. Embarrassing lazy portfolio with buy and hold strategy… and for the most part its not just hold, but hold for a real real long time (the stream of dividends is my justification).

Anyways, bought a ridiculous tech stock (that has dividends) more than 6+ years ago. The stock more than doubled (actually many times over my initial investment). So should I sell this before the tax increase? Wait for a new PM to win so they might cut taxes (just kidding)? Just keep it and just work on science stuff?

#27 Ontario Doc on 02.08.17 at 6:12 pm

Generally tax rule changes like the one described take effect the day of announcement onwards. How would that likely be done in this case?

A) all capital gains realized after the announcement (perhaps avoided by selling some stuff to reduce tax risk)
Or
B) the proportion of capital gains that happen after the budget announcement (seems an accounting nightmare)

What do think? Any precedent?

Thanks for considering

Assume (a). — Garth

#28 John on 02.08.17 at 6:14 pm

Meanwhile Bombardier gets $372 million in corporate welfare. Expect to be taxed and retaxed and retaxed…

#29 John on 02.08.17 at 6:17 pm

The good news is that angry voters will take out their anger on Wynne and then after practicing on her, they’ll toss T2 afterwards.

#30 HDJ on 02.08.17 at 6:18 pm

What a load of 1% baloney. Dollars put into either investments or GICs/bank accounts all make their way back into the economy and help give Canadians jobs. If the risk is greater for investments, then the income generated will accordingly be greater (Garth’s 6%). There’s absolutely no objective reason for taxing GIC or employment income at higher rates, unless the government is deliberately out to give an additional benefit to investors, who just happen (surprise!) to be the more wealthy members of society. Everyone should be taxed equally. Period. Entrepreneurs, who aren’t the only ones using their wits to survive, are laughing at the rest of us for giving them a tax subsidy. It’s bloody stupid and grossly inequitable.

#31 Mehling on 02.08.17 at 6:18 pm

Hello Garth, do you think they will ever remove the preferential tax treatment of dividend income from preferred shares or is this highly unlikely in your view?

I have not heard that is under consideration, and would doubt such a move. — Garth

#32 Mean Gene on 02.08.17 at 6:31 pm

Robber Baron… I always thought it was Rubber Baron, learned something new today!!!!

#33 Damifino on 02.08.17 at 6:31 pm

Well… someone has to pay for that herd of unicorns.

Did you think they’d condense out of thin air?

#34 John on 02.08.17 at 6:31 pm

This is absolutely maddening. What is the point of taking any risk in this country with the reward being payment of a bunch of tax? Because of JT, I work less hours than previously as I refuse to hand this profilgate government any more money that I have too. If they do increase the capital gains tax, I will seriously think of going to a part time job and make less money, hence ending up in a lower tax bracket so that when I do have to sell my investments, the tax bill will be minimized.

It looks like the government wants to create a system where taking risks is discouraged. Less people making good money = less tax revenues. Not sure that they’ve thought this true. The scary thing is that they thought it through and don’t care…

#35 ajax on 02.08.17 at 6:34 pm

The 1% are not dumbazz

They will find a way around they system, especially when we are now more or less a global economy.

It just less incentive for the go getters which are the backbone of job creation in our private sector. Meaning less jobs.

and more government. We are now a socialist society

#36 Loose Moose on 02.08.17 at 6:38 pm

Would you suggest perhaps realizing gains before the budget is introduced? If so, in what circumstances?

#37 I'm stupid on 02.08.17 at 6:42 pm

Just a thought about avoiding this new tax, if it comes. If I’m in the highest tax bracket would of be worth my while to take out a heloc and invest the money in my investment account? The interest would become tax deductible and I would need to pay tax on my gains until I sell and hopefully that would be far into the future while retired.

#38 not 1st on 02.08.17 at 6:43 pm

Garth, that deficit spending into the economy has done nothing to boost our fortunes, now we have to pay for it. If our GDP was ripping at 5% I would say fine. But its done nothing. Money shoveled into a hole. Thanks T2.

The wests population is increasing. We are ready to separate. I want to cast my vote for Oleary right now. If T2 tables that budget he is done like dinner.

#39 John on 02.08.17 at 6:43 pm

HJD said,
“What a load of 1% baloney. Dollars put into either investments or GICs/bank accounts all make their way back into the economy and help give Canadians jobs. If the risk is greater for investments, then the income generated will accordingly be greater (Garth’s 6%). There’s absolutely no objective reason for taxing GIC or employment income at higher rates, unless the government is deliberately out to give an additional benefit to investors, who just happen (surprise!) to be the more wealthy members of society. Everyone should be taxed equally. Period. Entrepreneurs, who aren’t the only ones using their wits to survive, are laughing at the rest of us for giving them a tax subsidy. It’s bloody stupid and grossly inequitable.”

What a profoundly ignorant thing to say. Unlike GICs, which are guaranteed (i.e., you will get your money back), investments are not. There is no guarantee when you invest your money in a non-GIC that you’ll get your money back; in fact, you could lose money. And you’re saying that the person who risks money should not be rewarded? If you believe that, investment capital in Canada will dry up. Less investment = less tax dollars, which means everyone becomes poorer.

See folks, it is ignorant (or more likely, mediocre individuals who resent other people’s success) like this who allow JT and his ilk to get away with their tax and spend ways.

#40 GB on 02.08.17 at 6:44 pm

Well Garth fine sir, you do realize that the emergence of the middle class is what has maintained a pretty darn good economic motor for the past…..50 odd years…

You seem to think that the 1%’er’s are the ones that stimulate economies and they should be protected in some way.

The wealth gap has been growing at an alarming rate and I just think T2 recognizes that despite this…there has been no trickle down effect.

I think by every economic metric going…it’s the middle class that stimulates or maintains economies. Not the 1%ers.

Thus the effort to close the growing gap.

Unless you disagree that the middle class are the ones that need to grow? In which case….uhm…really?

#41 Keith on 02.08.17 at 6:46 pm

Wow. The top one percent makes 10.3 percent of the national income, and pays 11% of the tax. I guess progressive taxation is nearly dead, considering their income goes up in real terms and working stiffs have had frozen wages for three decades. The huge concern over justice for the wealthiest Canadians and incentivizing people to become rich in a country with the kind of problems we face is quite a laugh.

http://www.theglobeandmail.com/report-on-business/economy/canadas-richest-see-share-of-wealth-shrink-unlike-us/article21635605/

#42 not 1st on 02.08.17 at 6:49 pm

And Garth, puh-lease stop talking about TFSAs. Thats just another registered account the govt is waiting to get their hands on in the future. With a stroke of a pen, a couple % tax can be applied to those accounts.

My advice is dont put a dime in there. Or in an RRSP.

Buy land with a residence and perfectly an ice cream store and cut expenses to the bone. Why would anyone try to earn $220,000 to give half of it away.

#43 Brian Ripley on 02.08.17 at 6:51 pm

I just started working on a new project to try and duplicate Edgar Feige’s APT (Automated Payment Transaction Tax) tax model using Canadian data to see if it would work in Canada and I know it will be difficult to get all the data I need.

The data collection page is here: http://www.brianripley.com/data.html

If you have links to any of the data I’m looking for, it would help greatly, you can contact me at the website link above, thanks in advance.

Feige’s conclusion is that an APT tax in the U.S. would be 0.6% on every financial transaction to produce revenue neutrality based on late 1990’s U.S. economic data. That 0.6% tax would be borne by both sides of the financial transaction equally ie: 0.3% each. If you bought a $1000 fridge or sold $1000 worth of stock or received a $1000 employment cheque credited to your bank account, you would pay a mere $3 in automatically collected tax at the transaction terminal where it originated and the other side of the transaction would also pay $3. No tax filing would be required and this simple micro fee on every transaction would eliminate the collection of all other taxes necessary to operate the country.

#44 Adam on 02.08.17 at 6:52 pm

“T2 does not get this. Nor do a lot of academics and tax theorists.”

Seems like you’re the only genius in the room, Garth. Do you think, however, that any of these academics/tax theorists who don’t share your point of view have a point? Nah, they’re probably all just pushing #fakenews…academics are the worst for it.

#45 AB Boxster on 02.08.17 at 6:56 pm

Re:Dividend taxation.

I have not heard that is under consideration, and would doubt such a move. — Garth

—————————————
It would be foolish to think that T2 and has merry band of feminist thieves have not considered this change.

This government has no understanding of how to run an economy.
The damage they are doing to this country may not be repairable.

#46 TurnerNation on 02.08.17 at 6:56 pm

Our “femminist” PM.

Men are the new victims in this economy.

http://www.cbc.ca/news/business/men-boys-falling-behind-1.3962316

– Breaking down the household.
What kept everyone on here in line growing up I bet: Wait till your Father gets home. Or, don’t make me tell your Father.

#47 .gov jobs on 02.08.17 at 6:59 pm

What incentive is there to work in free enterprise vs. a career in any branch of the government and public service?

In a communist country you need to have access to the trough and make sure your kids get in there as well.

Everything else is a waste of time and energy.

.gov jobs are the best in the country

#48 Steve on 02.08.17 at 7:00 pm

Vancouver’s inventory skyrockets 215% in January. Yup, no problem in real estate land.

https://betterdwelling.com/city/vancouver/vancouver-real-estate-inventory-skyrockets-over-215-in-january/

#49 powder_hound86 on 02.08.17 at 7:03 pm

The 1% may pay 11% of all the taxes but they have a much larger share than that in terms of income and wealth. Not a valid argument against increasing taxes on them.

#50 IHCTD9 on 02.08.17 at 7:05 pm

Damn I miss Harper.

He’s definetly going have the last laugh…

#51 Victor V on 02.08.17 at 7:05 pm

Similar speculation re: cap gains made the rounds prior to last year’s 2016 budget…Unfortunate to hear this could actually happen.

http://business.financialpost.com/personal-finance/taxes/why-a-capital-gains-tax-hike-might-be-on-the-table-in-the-march-22-federal-budget

#52 ummm on 02.08.17 at 7:05 pm

Good thing I moved all my investments to the US back in July when I knew Trump was going to win.

The majority of revenue my company generates is from US business. Dividends/Capital Gains are all paid in US dollars. I think it’s time that I pack my shite up and head to the US.

I think I’m just a fool for hanging ’round Toronto!

#53 The Technical Analyst, CSTA, CPD on 02.08.17 at 7:07 pm

“Word is spreading that T2 and his finance guy, Bill Morneau (who should know better) will increase the capital gains inclusion rate from 50% to at least 66% and maybe even 75%.”

Noooooooooooooooooooooooooooooooooo!

#54 TurnerNation on 02.08.17 at 7:07 pm

Young people are taught by severely leftist teachers – paid agents of the State.
I should know I’ve spent over 50% of my life under their control and influence:
JK – Grade 13, four years undergrad, a few years part-time Grad = like 22+ years.

And I’m M41ON

– Kids are taught corporate profits are Bad.
– Capital gains? Why the “stock market” is “too risky”.

#55 Solomon Grundy on 02.08.17 at 7:12 pm

T2 can stuff it. I am waiting for a new PM.

At least O’Leary would undo this BS.

https://donate.conservative.ca/Donate-KevinOLeary

#56 AK on 02.08.17 at 7:14 pm

When is the next federal Election ?

#57 D.D. Corkum on 02.08.17 at 7:15 pm

I actually wouldn’t mind a higher capital gains inclusion rate for assets held less than a year; which is comparable to the USA and reflects that there is no “price inflation” to subtract on gains made over the short term.

Alternatively, they could increase the capital gains inclusion rate but while simultaneously allowing for an annual increase to the adjusted cost base of an asset. This adjustment would offset the inflationary factor and likely be easier defended even to tax-the-rich advocates.

#58 Bottoms_Up on 02.08.17 at 7:16 pm

Sure, taxes don’t help people succeed. They don’t help us have a smarter population, and more successful workforce. They don’t increase our security through a less needy population. They don’t help people when they are down on their luck

#59 AlbertaGirl on 02.08.17 at 7:16 pm

I am college educated. So is my husband. Being Gen Xers, we started out on our own (not together) in 1990 when jobs were few and far between. Took out student loans to go to post secondary. Took until I was 30 to pay them off. Soon, met my husband, bought a house (back in 2001 when it was still affordable), got married and started a family. My house is 1300 square feet. We have never taken a honeymoon or a vacation out of Canada (camping or road trips to visit family is the norm). We have two children and have worked every day since I was 14 (my husband since he was 16). We pay our taxes and try to save for retirement… our income is $120K combined…. Why are WE the deplorables? We work just as hard!! We didn’t have parents that footed the bill for college, or even jobs when we got out of college… I worked 3 jobs and went to college. Many of us did, we are NOT deplorables!

#60 David on 02.08.17 at 7:18 pm

Thanks for the warning Garth. I just went to my online trading account and put in sell orders for the two stocks on which I have a loss. Then I put in a sell for an equivalent value of the stock on which I have the highest capital gain. I’ll invest the proceeds something new which pays a good dividend. T2, go away.

#61 Ret on 02.08.17 at 7:24 pm

#27 “Meanwhile Bombardier gets $372 million in corporate welfare. Expect to be taxed and retaxed and retaxed…”

I can’t find any mention of a timeline or conditions for repayment in the media releases.

So much for openness and transparency from the newly elected ‘Sunny Ways” party.

http://business.financialpost.com/news/transportation/how-bombardier-inc-suppresses-information-about-how-much-government-funding-it-receives

… and how much has been paid back on past deals.

#62 Greedy goblin on 02.08.17 at 7:25 pm

Have you found a moral justification for greed yet, Garth? No? Maybe someone in this comment echo chamber can help you find it. That’s the hope, right? Unless you’re trolling for page views, kind of like O’Leary.

How is investing money you already paid 54% tax on, and will pay a further 50% tax on the growth, with no guarantee of a positive return, greed? — Garth

#63 S.Bby on 02.08.17 at 7:25 pm

Just got my bi-weekly pay slip and noticed my Federal Tax deducted is $50 more and my CPP is $5 more for this pay period. If this stays consistent for the remainder of this year then there goes most of my measly pay raise my employer gave me.
I have dividend paying investments and now Terminator 2 wants to come after those too?

#64 westcdn on 02.08.17 at 7:25 pm

The turmoil in the US Treasury bond market had an interesting effect on my portfolio. It seems the bond market (smart money) is pricing a decline in yields but it could also be just a short squeeze. My income stocks are doing well. Time will tell but it looks as if projected US Fed rate increases are under pressure. Trump does not want a strong US$ – if the US can stand alone he does not care about trade unless he can make a buck for the US and, indirectly, himself.

The cabinet that Trump has surrounded him with are no fools – they will adjust to his impulsiveness and ego or get fired (like they care). I don’t understand elitists/managers – God created them so why think they are superior to a higher power and karma. I have always believed I have to answer for my behaviour and thoughts. I think religions have bestowed net benefit than harm – ethics before gain.

My option calls are in the money. Perhaps a few puts in July will work for me. I am always looking for a better mouse trap and willing to learn from others. However information overload can paralyze me so I seek rest from the noise.

#65 Wrk.dover on 02.08.17 at 7:25 pm

The whole accounting/taxation industry, government and private is just a big old parasite on the ‘conomy, just like the for profit health insurance leech south of the border.

If sensibility ever reigns after electronic money replaces cash, every transaction from purchasing to earning will just electronically lose a set percentage to the govt, coffers. (Every year the govt. could just rise the percentage to balance the books, until it hits their 100% nirvana.)

Imagine no accountants, no tax code, no privileged loop holes, just a simple percentage up in smoke on each and every plus or minus entry on every bodies, including your own balance sheet. All at one rate.

Who you calling Commie? Me?

#66 when the pie is shrinking on 02.08.17 at 7:26 pm

When the pie is shrinking, the slices are getting thinner.

It is so obvious that Canada should be aiming to become a product and service exporter, processing natural resources into high value added products/services with very low labor content and very high level of automation/robotics.

This could make the richest a country with vast resources, low population and access to latest high tech.

#67 TCContrarian on 02.08.17 at 7:26 pm

Regarding changes to cap. gains inclusion rate:

So, if I sell BEFORE announcement the inclusion rate will be at 50%. And if I sell AFTER the announcement, the inclusion rate will be whatever the NEW rate is.

Probably wise to sell as much as possible between now and announcement. Do you agree Garth?
And, when is the exact date of the new budget?

TCC

#68 IHCTD9 on 02.08.17 at 7:32 pm

Well, trying to look at the bright side of things…

If the T2 regime goes 75%, we could expect every single business owner, RE specuvestor, every Joe blow with a few hundred grand in non-tax sheltered investments, and every last individual 1%’er in the country to go to EXTREME lengths to avoid this great Liberal plan to make a “strong middle class” (in his own miserable lying words).

We should also see a major exodus of investment funds to greener pastures.

We should also expect offshore tax shelters to fill with beaver and moose like never before.

We should expect even less Canadians to start businesses.

Digging deep here for the bright side. I guess folks in YVR who own 5 investment condos would get slaughtered, soon in the GTA as well. Trudeau may even kick off the slide with a budget announcement like this.

Is that good?

#69 Wrk.dover on 02.08.17 at 7:37 pm

Dang! #42 and #64 say the same thing…..coincidence or just a good idea?

#70 Lolo on 02.08.17 at 7:37 pm

This news sure ruins my day. Have been diligent about investing, and could conceivably retire soon (in my 40s), by planning on our lower-taxed investment income. Now, i really wasn’t going to retire in my 40’s but did the math, and before this news, i could really could have….

#71 Adam on 02.08.17 at 7:38 pm

How is investing money you already paid 54% tax on, and will pay a further 50% tax on the growth, with no guarantee of a positive return, greed? — Garth

This is one of the worst, greediest blog posts I’ve seen, and your statements are so disgustingly misleading. What in the world does already paying tax have to do with it? Further, you’re not paying 50% tax on the growth, you’re paying your marginal tax rate on 50% of the growth – which, assuming your marginal rate is 54%, then you’re paying 27% of the total growth in tax (or, after next week, maybe it’ll be 35%, or even as high as 40.5%, but not 50%).

#72 InvestorsFriend on 02.08.17 at 7:39 pm

My Take on The Capital Gains Tax Argument

Currently the profit you make on an investment is taxed at 50% of your personal marginal rate. This recognizes the fact that (a) the money you invested in the first place was already taxed,
***********
Reason a) is not valid since the general rule is every time you make a profit you pay part in taxes. Reason a) would suggest there be no tax on any investment. It makes no sense. Should we exempt corporations from all taxes they make by investing retained earnings. This reason is grasping at straws.

(b) over time inflation has artificially added to gains and should not be taxed

**** b) Agreed is valid and was a real concern back when we had much inflation. Not such a big concern today however.

(c) when you invest (rather than save), you absorb risk. Sometimes a lot of it – unlike sticking money in a GIC. That risk means your capital ends up in the economy and probably helps give somebody a job. So, to encourage this activity, capital gains have been taxed less than earned income.

**********

I don’t know about this. The reward for the risk should come from the potential after tax profits and the ability to deduct losses from profits. I don’t think it is a very valid reason and smacks of central planning. And as others have pointed out consumption creates jobs too.

Why was a 50% inclusion rate the magic number?

Investors have numerous tax breaks. Why should tax changes for investors be off the table?

#73 Ret on 02.08.17 at 7:40 pm

#53 “Young people are taught by severely leftist teachers – paid agents of the State.”

Aw, come on, lighten up on those teachers. The best three years of my life were spent in grade five!

#74 45north on 02.08.17 at 7:40 pm

Word is spreading that Justin Trudeau and his finance guy, Bill Morneau will increase the capital gains inclusion rate from 50% to at least 66% and maybe even 75%.

I know two men who could move to the States – just get on a plane. I don’t think they will be influenced by the change in tax on capital gains. I’d say they’d move if the social stability of where they live declines which it would if real estate prices decline significantly.

I’d say the BC election this May is going to show which way Canadian politics is headed.

#75 IHCTD9 on 02.08.17 at 7:42 pm

#57 Bottoms_Up on 02.08.17 at 7:16 pm
Sure, taxes don’t help people succeed. They don’t help us have a smarter population, and more successful workforce. They don’t increase our security through a less needy population. They don’t help people when they are down on their luck
——————

Just say it. Trudeau is a colossal idiot.

You can do it if you try.

#76 Self Directed on 02.08.17 at 7:43 pm

This article explains how Smurfing money out of China works.

China’s Capital Controls Could Crash Vancouver Real Estate

Some Key points from the article:

As of Jan 2, China put new controls on Yuan conversion

– need to provide declaration or reason for conversion)

– Banks are now required to report back to China any transfers greater than $29K USD.

Exchanging currency is now prohibited for buying bonds, “insurance-type” products, and real estate.

Violators are now subject to a 3 year ban, and an investigation for money laundering.

The number of foreign homeowners that need to evade capital controls is likely much higher, and will be subject to the same barriers. So unless someone is working on an Uber for money laundering, Vancouver’s going to see a fire sale.

It’s been over a month. Flop’s “Pink Snow” reports are only going to get worse (i.e. better).

#77 Damifino on 02.08.17 at 7:43 pm

#61 Greedy goblin

Please answer Garth’s question. I just gotta know…

#78 Mortgagebrokeron on 02.08.17 at 7:44 pm

Hi star, I too am incorporated, one operating company and the other a holding company with which my wife also owns shares,

It depends on what the future holds as far as what to do. I assume you have a good accountant already?

Mine usually recommend a small salary to both of us and some dividends.

I was thinking the same lines as you, use the retained earnings as a piggy bank for retirement.

One thing to maybe look at too is a life insurance policy inside of your corporation. Just look at how you will get taxed if you die. Joint last to die paid up on first death won’t cost too much. Most of the death benefit will go thru the capital dividend account tax free.

#79 For those about to flop... on 02.08.17 at 7:45 pm

#60 Ret on 02.08.17 at 7:24 pm
#27 “Meanwhile Bombardier gets $372 million in corporate welfare. Expect to be taxed and retaxed and retaxed…”

I can’t find any mention of a timeline or conditions for repayment in the media releases.

So much for openness and transparency from the newly elected ‘Sunny Ways” party.

/////////////////////////

Hey Ret, I was watching Woeful News last night and they stated the timeline for repayment was 4 years.

Hope this helps…

M42BC

#80 IHCTD9 on 02.08.17 at 7:46 pm

#61 Greedy goblin on 02.08.17 at 7:25 pm
Have you found a moral justification for greed yet, Garth? No? Maybe someone in this comment echo chamber can help you find it. That’s the hope, right? Unless you’re trolling for page views, kind of like O’Leary.
————

We’ll get right on that. In the meantime, you work out a moral justification for doing jack squat, and we’ll compare notes later.

#81 Mortgagebrokeron on 02.08.17 at 7:47 pm

After seeing and hearing all this depressing talk, I am looking into starting up a business in the USA!! What a dreamy place to work, the president wants to cut back on regulations!!!! Think of all the time it frees up for the businessmen!!!

#82 Millenial on 02.08.17 at 7:47 pm

“….rental condo, mutual fund, stock, ETF, gold bar or piece of land….”

One of these is easier to sell without documentation than the others. This same one i’m thinking about, you can actually put it in your pocket and travel to a foreign country and get cash there. Just saying.

Credit cards are easier. — Garth

#83 Nonplused on 02.08.17 at 7:48 pm

The problem lies in the rise of identity politics. So if I am a basement dwelling SJW snowflake, of course I want taxes raise on the rich, until the rich and I live in the same sort of basement. It’s social justice after all.

Unfortunately it doesn’t work. Not every kid’s soccer or hockey team you put together should play tier 1. Most of them are going to get killed. There is a marked difference in the skill and effort required to be a doctor or a dentist versus a barista. When Shariabucks starts doing heart surgery I think I am just going to take my chances with leaving things as they are. I’m not sure I even want a coffee from them anymore.

PS if you have shares in Starbucks, (to explain the reference above), please sell them. They are going to crash. In response to Trump’s “terrorist vetting pause”, (otherwize know as a Muslim ban because of the 40 Muslim countries in the world 7 were affected), Starbucks has vowed to hire 10,000 immigrants. Meanwhile there are way more than 10,000 US veterans who are destitute. The boycott has already started. Only the snowflakes are still buying coffee at Shariabucks and there aren’t as many of them as they think there are. Also it makes no sense at all since coffee is forbidden for Muslims. Why would they work serving it? It would be about as likely as seeing a Mormon or someone from the Church of Scientology in one of their shops.

#84 White Privilege on 02.08.17 at 7:48 pm

The people of canada need to have a tax revolt and get the government out of your pockets and cut spending.

I saw this coming from a mile away once JT took over but was planning to leave for years prior and thank god i did last year and am now non-resident as of early 2016, so get to file my last T1 this year for 2016!! WooHoo!!

This was my theme song on the way out the door, https://www.youtube.com/watch?v=0dB6MQlFLu8

#85 Self Directed on 02.08.17 at 7:48 pm

#65 TCContrarian on 02.08.17 at 7:26 pm

Regarding changes to cap. gains inclusion rate:

So, if I sell BEFORE announcement the inclusion rate will be at 50%. And if I sell AFTER the announcement, the inclusion rate will be whatever the NEW rate is.

Probably wise to sell as much as possible between now and announcement. Do you agree Garth?
And, when is the exact date of the new budget?

TCC
……………………………………………….
I just sold my Canadian stuff today. It was in my TFSA, so does not apply. But I sold because I don’t have confidence in our economy right now.

Keeping the US stuff for now. But Trump is rocking the boat pretty hard. I might dump that too and just buy more bonds.

#86 Ontario's Left Coast on 02.08.17 at 7:48 pm

Deplorables Week – I love it, Garth. Finally, our own version of Sweeps Week. The ratings are going to be through the roof!

Cheers and thanks for all that you do.

#87 Warren - the lagging indicator on 02.08.17 at 7:54 pm

Anyone know what happened in 1990 – 1994 under Greenspan that took A huge whack of Inflation and potential Inflation out of the system forever. This happened just after he massively lowered Interest rates. I know only this question, but not the answer, yet. Maybe It was just because of the massive slaughter of the Stagflation occurring in the 70’s and 80’s. Is this why we have been slowly drifting toward deflation for the past 20 years or so? I would ask Garth but he never answers my questions anyways. My dog does the same thing though, the more I try to convince him to do something the more stubborn he becomes. It is ok though, because I love him anyways (The dog). Maybe they are just stupid questions.
I can see that US rates are slowly going to be raised to about 3.5 percent by 2020 and held there for only a short while to compensate for the risk of falling back to deflation.

#88 Dick C on 02.08.17 at 7:55 pm

Something doesn’t make sense here: if Wild Bill increases capital gains tax on equities, secondary property etc. and is not doing the same to primary residences, isn’t this a tax policy that favours investment in home ownership at a time that he is trying to cool that very market with other measures? Suck and blow? FFS.

#89 IHCTD9 on 02.08.17 at 7:57 pm

#47 Steve on 02.08.17 at 7:00 pm
Vancouver’s inventory skyrockets 215% in January. Yup, no problem in real estate land.

https://betterdwelling.com/city/vancouver/vancouver-real-estate-inventory-skyrockets-over-215-in-january/
——-

If T2 does this, he we effectively Napalm the YVR RE market. How many multiple property specuvestors are out there? How many of them have to top up the rent payment to make the mortgage payment – and are (were) counting on appreciation to make it pay? How many of them got whacked with a 30-50% increase in their assessments?

Values are falling, taxes are way up, now what little margin that could be made might be whacked with a 50% increase in the Capital Gains tax? On multiple properties?!

What a freaking disaster!!

#90 OffshoreObserver on 02.08.17 at 7:58 pm

I am a fervent free enterpriser. Never a nationalist.

The “flaw of democracy,” as I call it: governments “buy” votes by ladling goodies out.

Eventually, the piper has to be paid. It happened to Rome and it is happening to all Western democracies now.

“Debt & Democracy,” the hydra-headed nemesis.

When I went to B-school, all the morons–about 50% of the class–chose Government or Banking jobs, the latter are about the same type as the former.

On our class’ 25 year reunion, the MBA co-ordinator–basically, a high school principal for grad students–was in attendance.

Just that week, he was outed on the B.C. Sunshine list–government employees who make over $100K, annually.

He clocked in at over $500K+! For being a friggin’ principal.

My lifelong goal is to, legally, minimize the taxes I pay.

I dream of winnowed out government ranks. But, alas the bloat is relentless, like an unfettered.

The government steals our money, but the smart will always prevail.

#91 Get RID of CMHC on 02.08.17 at 8:01 pm

Stupid idiots CONservative lite liberals/ T2 are idiots to tax people who work hard and take risk is beyond stupid. CMHC is the real problem in the economy. People are maxed out so they can’t go out and spend. CMHC created the biggest housing bubble and has ruined the economy. Useless eaters like realtors and mortgage brokers are the cancers of the economy.

#92 i'm jus sayin' on 02.08.17 at 8:04 pm

people, this cbc story about a Montreal Muslim woman detained at us customs with prayer videos on her phone is classic ‘fake news’–100%

the point?
more tax payer money for police and border guard training on both sides of the border

#93 IHCTD9 on 02.08.17 at 8:06 pm

#86 Dick C on 02.08.17 at 7:55 pm
Something doesn’t make sense here: if Wild Bill increases capital gains tax on equities, secondary property etc. and is not doing the same to primary residences, isn’t this a tax policy that favours investment in home ownership at a time that he is trying to cool that very market with other measures? Suck and blow? FFS.
—–

Easy fix, instead of 1 year, make it 5 years before the exemption kicks in. Last thing they should do is kill the homeowners who lived in their houses 40 years and had 1000% appreciation over that time. Tax bill could be more than what they originally paid for the place.

There is a sizeable chunk of Ontario residents who upon inheriting a long time family business, have to immediately sell just to afford to pay the capital gains tax.

Out my way, regular folks who were just living in their houses for a long time were forced to sell out due to the huge property tax increases levied on them as a result of gentrification. That’s just property tax – which would be nothing compared to the CG tax you suggest.

#94 Ray Skunk on 02.08.17 at 8:09 pm

#82 White Privilege

I’m in the same boat as you were. I’ve been contemplating it for some time now, as it happens things are coming together at work and the wife is on board, so – depending on how Trump plays out with visa shenanigans – a move for us is on the cards for later this year.

I’d love to pick your brain on the practicalities.

Garth – any way you can provide my email address to WP?

#95 Economystical on 02.08.17 at 8:09 pm

Garth, you need to polish up on modern economystical theory. The only way to encourage economystical investment and development is to take all profits away from investment and give it to the consumers so they can buy the products.

So you like to use doctors as an example. Your theory seems to be they should be rewarded for their efforts and education. Not so! Instead what we need to do is take their money and give it to other people so they are better able to purchase the doctor’s services.

It applies to capital gains as well. The only way under economystical theory to encourage more investment and savings is to tax it at a higher rate so people have to invest more to get the same return. It’s ingenious really, I don’t know why it hasn’t been tried before.

The same applies to all professions. Lets look at a noble plumber for example. How do you incentivize a plumber to work his hardest and longest? Well, the failed pay for work model isn’t the answer, economystical economics is! The answer is to take more and more of his money and redistribute it so that he can’t take a day off and more other people who aren’t doing anything but playing xBox have money to hire him.

I will post a few more responses in the next couple of days to describe the modern theory of economystical finance to you and your followers in the next couple of days. But to summarize I would say this: There is no reason you shouldn’t steal your neighbor’s lunch, he probably has lots of other lunches. In fact, it is your right and duty if you see your neighbor has lunch to help yourself to it. I will explain more in the following days. Theft is how the economy works. The more stealing, the better. In fact economystical theory states that everything will be perfect when not only do you have your lunch stolen, but then somebody steals it again and again and again until the lunch has been stolen so much we all had it for a bit, even if nobody got to eat it before it was ruined or a dog stole it. Unfortunately dogs are cruel and irredeemable. They eat the damn lunch before it can be redistributed.

#96 mike from mtl on 02.08.17 at 8:11 pm

#80 Millenial on 02.08.17 at 7:47 pm
One of these is easier to sell without documentation than the others. This same one i’m thinking about, you can actually put it in your pocket and travel to a foreign country and get cash there. Just saying.
////////////////////////////////////////////////

You gold bugs make me smile, just try getting on a plane with any decent amount of gold. “…No sir I’m just really happy to see you..” ;)

#97 Get RID of CMHC on 02.08.17 at 8:12 pm

Everyone it’s good you are complaining here but send that CONservative wolf in Liberal clothing T2 this tax on the so called rich is beyond stupid and crazy and vent your anger. F@$K i’m writing almost everyday.

#98 A Dollar is a Dollar is a Dollar on 02.08.17 at 8:14 pm

Nope.

Period.

A dollar is a dollar. No matter how you have earned it, whether you have been forced to shovel cow manure for an hourly wage or your family fortune has given you money for a down payment on a slanty semi or to buy preferred shares.

A dollar is a dollar.

Tax them all.

Equally.

100% inclusion of capital gains.

PERIOD.

Garth, for a mostly sensible guy, do you realize HOW MUCH you sound like Sean Spicer defending Trump here!!?? OMG!!!!!!!!!!

Your argument is utterly incoherent to common sense, and sadly, profoundly, on the wrong side of history.

But you gotta love the chutzpah and the “alternative facts” of the 1%ers and their supporters!! :)

LOLOLOLOLOLOLOLOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

#99 Joe2.0 on 02.08.17 at 8:14 pm

Trudeaus going to be eaten up and spat out by Trump.
He’s a narrasastic pretty boy, a ego maniac shoe horned in to repay past debts owed to his father who we are still paying for.
Seen how many electoral promises he’s already reneged on?
Oh…but he sure is cute…

#100 Tony on 02.08.17 at 8:16 pm

Any increase in capital gains tax will be opposed in the Supreme Court of Canada without a valuation day. A valuation day will be set or set after the case goes through the Supreme Court of Canada.

#101 Freedom First on 02.08.17 at 8:17 pm

#12 Tron

Yes. The lower income Canadians are unfairly overtaxed.
I have said that here before in the last few years.

I believe that the first 25-30K$ of income should not be taxed. For millions of Canadians that is their total income, many for reasons other than a lack of ambition or laziness. That’s life. Not always fair for many reasons.

Especially for the seniors and multitude of Boomers approaching 65 who, for whatever reason, are going to be at or below that income group. Keep in mind, women make up the majority of that group, and also live longer.

Now, some people here may be aware I am all for putting my own Freedom First, and I do not fall into that category, but, I am also for fairness, and do not believe in punishing people who are struggling just for the essentials of life, for whatever reason.

#102 Jessica on 02.08.17 at 8:18 pm

Data from the Tax Policy Center (US data) show that 70 percent of long-term capital gains go to the top 1 percent of earners, and that 47 percent goes to the top .01 percent.

You’ve outlined the arguments for reduced taxation on capital gains as opposed to the other 4 types of income (business, employment, investment, other).

The arguments for higher capital gains taxation is that low capital gain taxes are a way for the rich to avoid paying their fair share based on their actual total income (from all 5 categories).

And that much of capital gains income is from speculative investments that does not contribute value to the economy.

#103 X on 02.08.17 at 8:20 pm

Would be very interesting to see at what level of tax increases do those that feel they are being unfairly treated begin to try to cheat on their taxes to a greater extent than currently.

It has to increase the number of ‘cash only’ transactions for certain businesses.

Also…I guarantee that health care fees will increase. Who will that hit the most. Yes, the 99%. The Ontario Dental Association sets their fees annually. Take 33% out of their retained earning potential….think you will get inflation adjusted fee increases. LOL.

And wouldn’t it have to increase RE valuations, I mean why would anyone invest? To earn T2 more money?

I don’t mind paying for roads, health care, and education, but where some of this tax money is being directed to these special interest groups, I wish I had boxes on my income tax remittance to choose where my tax dollars went.

#104 greedy moron on 02.08.17 at 8:20 pm

@#61 Greedy Goblin
Have you found a moral justification for greed yet, Garth? No? Maybe someone in this comment echo chamber can help you find it. That’s the hope, right? Unless you’re trolling for page views, kind of like O’Leary.

Maybe you don’t quite understand. Let’s take a stab at it.

You get a year end bonus of $10,000. You get taxed half of it, so you keep $5000.

You can
(a) buy a 4K TV and watch a bunch of cool movies
or
(b) you can save/invest it.

Are you greedy if you do (a) or are you greedy if you do (b)?

It seems that doing (a) is what the government wants. You promote consumerism.

If you do (b), your $5000 over time increases to $6000.
Then you have to pay tax on the $1000 difference. Or, maybe there is a crash and your $5000 becomes $4000.

By all measures, the one splurging on the 4K TV is the selfish one. yet, this same person could later claim to be poor and collect all sorts of government assistance.

#105 protecting our country on 02.08.17 at 8:21 pm

DELETED

#106 Joe2.0 on 02.08.17 at 8:26 pm

“Smurfing”
Great term, must come from people turning blue in the face trying to explain the illegal methods foreigners are using getting money into Canada to purchase RE.

#107 Double double on 02.08.17 at 8:28 pm

“…will increase the capital gains inclusion rate from 50% to at least 66% and maybe even 75%.”
=========

So, get people to believe this and then they just raise it 60%.

Sure lots of entitlement here.

#108 Damifino on 02.08.17 at 8:28 pm

#86 Dick C

Seek not logic or consistency in the actions of the T2 government. Flight… seat of pants…

#109 dumpster fire on 02.08.17 at 8:30 pm

Maybe the rumor is a sneaky way to get investors to realize some of those juicy gains this year…

#110 crowdedelevatorfartz on 02.08.17 at 8:36 pm

Well I guess us Boomers are gonna have to get accustomed to the inane govts elected by the “touchy feely pc crowd”
Tax us into oblivion while spending hundreds of millions of tax dollars on interest free loans for more Bombardier jets that no one wants to buy……….
Can you say “Zombie Company”? ( a company that doesnt know its dead yet)…..I knew you could.

How much ya wanna bet THAT loan doesnt get repaid?

#111 Tony on 02.08.17 at 8:37 pm

Capital gains inclusion rates

1972 to 1987 1/2
1988 and 1989 2/3
1990 to February 27, 2000 3/4
After February 27, 2000 2/3
After October 17, 2000 1/2

#112 Dan on 02.08.17 at 8:40 pm

Meh, dont care. I max mine and my squeezes TFSA every year and put some in my rrsp for the spousal switch at a later date. I dont have a non-registered account and I’d rather keep my 3 overseas vacation trips per year than open one up.

#113 Tony on 02.08.17 at 8:41 pm

Between the years 1985 and 1994, an individual could realize cumulative
capital gains up to $100,000, exempt from tax. For qualified small business corporation
(QSBC) shares and qualified farm property, the lifetime capital gains
exemption was $500,000. In 1994, the $100,000 exemption available in connection
with all types of capital property was eliminated. The exemption available in connection with QSBC shares and qualified farm property continues to be
available. The capital gains exemption available on QSBC shares, now increased
to $750,000.

#114 Nonplused on 02.08.17 at 8:41 pm

#97 Freedom First

“I believe that the first 25-30K$ of income should not be taxed. ”

I’m ok with that if they stay off the roads I paid for or at least stop harassing motorcycles.

Rich people don’t harass motorcycles because they have one. They are fun. It’s like a pair of skis, if you can afford it you have one.

Poor people harass motorcycles because they are jealous social justice warriors.

And it should be said, there are many people who have a motorcycle and not a car because that’s all they can afford. The SJW’s harass them anyway.

Anyway nobody pays tax until they make $17,000 a year so your nirvana isn’t that far away.

#115 Damifino on 02.08.17 at 8:41 pm

#94 A Dollar is a Dollar is a Dollar

Absolutely not. No Way.

Full stop.

A dollar earned by risk is not a dollar earned by labour. It is only the risked dollar that creates the possibility for an earned one.

Tax them accordingly and grow up, Comrade.

#116 crowdedelevatorfartz on 02.08.17 at 8:45 pm

@#94 A dollar is a dollar is a dollar

You should get someone to help you with that stutter….

#117 when the pie is shrinking on 02.08.17 at 8:46 pm

When the pie is shrinking, the slices are getting thinner.

It is so obvious that Canada should be aiming to become a product and service exporter, processing natural resources into high value added products/services with very low labor content and very high level of automation/robotics.

This could make the richest a country with vast resources, low population and access to latest high tech.

#118 Cto on 02.08.17 at 8:47 pm

Well
it’s become pretty clear that in the GTA anyways, the only ones making a living and doing well for themselves is the flippers. all those people that work for a living are getting robbed by our government.
It’s the new way! We should all quit our day jobs and flip houses for a living. It works and our government will make sure it’s here to stay, as that is our new economy and employment base!
We humans have truely come of age in the land of sunshine and rainbows!

#119 A 1%'er on 02.08.17 at 8:48 pm

Both my wife and I are professionals in the 1% bracket. We both until recently had student loans worth $100k each. With our other 1%’ers we pay over 20% of the tax collected in this country while only making 10% of the income. Sorry Garth it’s 11% of income and 21% of taxes. https://www.google.ca/amp/www.cbc.ca/amp/1.3301268?client=safari

#120 OnlyTheBankersLaugh on 02.08.17 at 8:49 pm

Wow, so Trudeau cuts TFSA, goes after small business and now goes after people taking risks in the equity markets to establish their own “pensions” due to a lack of defined benefit pensions of government workers. Disgusting. This guy has got to go. He has no idea to generate investment and create jobs. There should be a huge public outcry but people are still caught up counting their house valuation but you can’t eat your house in old age.

Nuts.

#121 Andrew Woburn on 02.08.17 at 8:49 pm

Relax, Dogs

Sunny Ways just wants to let us catch up with the Scandinavians. You’ll love it.

“For Finns, paying taxes is a matter of pride: Ilkka Paananen, the chief executive of Supercell which invented the hit mobile game Clash of Clans, earned respect for paying a whopping 54.1 million euros in tax in 2013.”

https://www.yahoo.com/news/norway-everyones-tax-just-click-away-034822511.html

#122 Social scientist on 02.08.17 at 8:50 pm

As it has often been said, we live in a society where the poor drive their cars to the protest they found out about on their iPhone via Facebook.

#123 Ex-Cowtown on 02.08.17 at 8:56 pm

Next stop…. taxing your TFSA. Aloha baby, we hardly knew ye…

#124 Jetfixer on 02.08.17 at 8:59 pm

Call your MP and let em have it. Even more if they are a liberal! These guys are seriously out of control. Like wtf is happening right now?? If its not a psychopath down south, its Trudeau up here and these theory guys.
So frustrating… If you did the prudent thing and saved, invested your money, you are getting your clock cleaned. I don’t take as many shots at boxing! There is literally zero reward for trying to make it on your own. Just get a nice government job, shut up, buy your house and then get bailed out when you are about to eat cat food. I feel bad for everyone living on the edge, I really do, but all these policies that continue to herd people in to housing while discouraging investment, innovation and entrepreneurship makes me want to see this housing thing crater even more.

#125 White Privilege on 02.08.17 at 8:59 pm

#91 Ray Skunk

Yes, the US may be ok if Trump can get his new tax policy through and cut regulations by 75%, and I would likely move business there too if that happens. But the USA was the last place i wanted to go before DT got in as the IRS is a dance with the devil as increasing numbers of Americans have been renouncing their citizenship over the past 5-10 years in order to get away from them.

Mexico is a great first destination to go in order to break your ties with Canada quickly which is key to becoming non-resident for tax purposes in the eyes of CRA.

see this page and the NR73 form at bottom. Form NR73, Determination of Residency Status (Leaving Canada)

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

But don’t ever file that form unless requested, just use it as a check list for cutting ties.

#126 DBB on 02.08.17 at 9:00 pm

He’s gotta be so gone in 2019.

#127 Nonplused on 02.08.17 at 9:00 pm

#116 OnlyTheBankersLaugh

Yup, you got it. Glamboy’s plan for self directed retirement planning is to tax and limit the hell out of it so there is no way to do it.

“Fools to the left of me, jokers to the right, and here I am stuck in the middle with you.”

#128 Noodles on 02.08.17 at 9:04 pm

Shocking how YVR RE sales are cratering yet in areas excemt from Chinese dude tax like sqaumis and Victoria prices still climbing. Hmmmm

#129 Andrew Woburn on 02.08.17 at 9:05 pm

T2 is secretly a Republican?

Prominent Republicans Pitch Carbon-Tax Plan to Top Trump Aides

https://www.bloomberg.com/politics/articles/2017-02-08/prominent-republicans-begin-push-to-tax-carbon-cut-regulations

#130 Bottoms_Up on 02.08.17 at 9:07 pm

#46 .gov jobs on 02.08.17 at 6:59 pm
————————————-
.gov jobs are good, as the employer has to be very accountable.

Municipal….ok. But unions aren’t strong. Look at Ottawa, city employees can get fired with one report to a hotline of someone using the company car to drive their girlfriend home after work.

Provincial? Well, with Ontarios debt I wouldn’t want to be in a peripheral organisation.

Federal is perhaps the best. But wages aren’t all that great, especially after factoring in mandatory pension, life and health insurance, disability, union contributions etc. Someone making 65k takes home about $1600 biweekly.

#131 Smoking Man on 02.08.17 at 9:10 pm

Well I’m done. Career Suiside on linked In. Gone total Smoking Man. Hammered and sharing my real thoughts attached to my real name. I pulverized Dickenson from the Canadian version of Shark Tank. Forgot the name. She’s an entrepreneur but sucks up to T2. I lost man. She’s so dumb.

I’m such an idiot.

Well I’m never getting a gig again with the pc banks on bay street again. Their CEO’s are marching for George Soros shoot your self in the head to fit in written by deranged lunatics.

I might as well start an uber thing for fx where peer to peer fx transactions wipe out the 6% banks charge for fx convent transaction.

My new corp and software will take only one pip on a zillion dollar industry.

Is Edward Jones interested?

Talk to the hand, going on vacation to get completly wasted. From dusk to dawn.

Being a gambler and risk taker so under rated.

#132 Debtslavecreator on 02.08.17 at 9:11 pm

Taxing capital gains with a steadily depreciating currency is outright theft – you already paid tax on the savings used to invest that created the capital gain
If you tax cap gains at a higher rate than increase the exemption to 20k or 25 k
I am sick and tired of this theft and scam – this T2 criminal is robbing the “middle class” more than anyone in Canadian history. Running deficits, raising cpp , cutting income tax modestly but running deficits , carbon taxes, raising capital gains taxes, and possibly taxing health and dental plans
And imagine what’s going to happen when the sovereign debt crisis hits our shores by 2020 at the latest ?
No amount of tax will ever help them but they don’t care and will keep coming for everything
The millions who rent part of their home and / or run a home office are going to kiss good bye to a portion of their home equity which was imaginary to begin with
If you voted for these criminals DONT COMPLAIN

#133 Write to T2 on 02.08.17 at 9:11 pm

Just finished writting to T2 about capital gains being increased. This is just insane. The real problem is CMHC which is distorted the Canadian economy.

#134 John on 02.08.17 at 9:11 pm

When I read many of the comments here, I shudder. And this is a blog that has a higher than average proportion of financially savvy individuals. Sure, go ahead and “tax the rich”, or treat investment income the same as employment income. The end result will be a poorer country. However, as the socialist’s end goal is equality of outcome so that everyone is equally poor (except the government elites), these shortsighted policies will give them what they want. Venezuela, here we come!

#135 Write to T2 on 02.08.17 at 9:13 pm

#120 Jetfixer

You are 100% bang on. I wrote to T2 already. Increased in capital gains defies logic

#136 paulo on 02.08.17 at 9:16 pm

BETTER PLAN: Cap the Exemption from taxes on Sale of Primary Residence to a one time per Family Unit Claim of 100K with the balance taxable at the current marginal rate. this would cool the real estate bubble immediately,
encourage investment in other vehicles such as small business, encourage our doctors to stay in country and reward “real risk takers” that create value added commerce and jobs to the economy. kill to birds with one stone or tax act

#137 White Privilege on 02.08.17 at 9:16 pm

#92 Economystical
Hilarious!

#94 A Dollar is a Dollar is a Dollar
Please don’t interrupt when the adults are talking.

#138 Bank of Millenial on 02.08.17 at 9:17 pm

Hahaha! We’re pooched.

This -> http://www.theglobeandmail.com/real-estate/toronto/a-million-dollars-now-buys-a-tear-down-in-torontos-greektown/article33957589/

#139 Hotdogs from Heaven on 02.08.17 at 9:24 pm

It never ceases to amaze me how the same country that manages to tax just about every form of productive labour and risk that it can, still allows the brain dead winners of lotteries to enjoy their cash absolutely tax free.

#140 Barb on 02.08.17 at 9:28 pm

T2 is an idiot.

Forget O’Leary.
Garth Turner for PM.

Dammit, Garth, let your name stand!
Please.

#141 Smoking Man on 02.08.17 at 9:33 pm

DELETED

#142 stage1dave on 02.08.17 at 9:39 pm

Hmmm…I was actually considering “inc” until this morass started a couple weeks back; now I’m not so sure. My motivation was not exactly philanthropic, however; nor was it going to create tons of jobs. Just thinking it would be a better way to preserve capital from sale of assets as the wife n’ I head into our twilight years…or twilight zone…

Now I may just stay SP…

Anyway, have a question; I’ve noticed the few times that I have been forced to pay CG tax that’s it’s usually worked out to about a quarter of the residual value. Assuming a 100K profit on your aforementioned stock profit, why would the tax liability be 23K?

Wouldn’t the declared CG profit be half (50K) and tax paid on that amount, or did I miss something here?

#143 Stock Picker on 02.08.17 at 9:39 pm

People have been viciously attacking me over posting that 100% taxation was coming ….and now it’s here…..do I hear the crunch of crow bone?

#144 stage1dave on 02.08.17 at 9:44 pm

Oooops, that should have read “quarter of HALF the residual value”

#145 45north on 02.08.17 at 9:46 pm

Mortgagebrokeron: After seeing and hearing all this depressing talk, I am looking into starting up a business in the USA!!

me too

http://www.bountyhunteredu.org/careers/

#146 Geofferson on 02.08.17 at 9:48 pm

This is a beautiful tax plan, which will actually create prosperity. No death tax, a max business tax rate of 15% and a one page form to the IRS that says “I win” where households with up to 50k income pay no federal tax: https://assets.donaldjtrump.com/trump-tax-reform.pdf

#147 Bank of Millenial on 02.08.17 at 9:49 pm

Here is my tinfoil hat theory.

BoC put off deleveraging housing sector until late 2017. Perfect timing to see what comes of NAFTA Renegotiations.

Deleveraging provides a politically convenient way to trash our currency (without pissing off the Donald) and we will get to retain most of the productive parts of our economy here, even if NAFTA goes sideways.

This will bring inflation ( more like reflation) activity and we will be right back on track after all the pain. Just give it 4-5 years.

These guys are pretty smart actually, perhaps I am giving them more credit (Ha!) than what is due.

#148 For those about to flop... on 02.08.17 at 9:49 pm

Pink Snow falling in Vancouver

These guys live in Broadway’s neighborhood and thought that it was a good idea to spend 2.015m this time last year before the correction on a hundred year old house.

At least they won’t have to go far to borrow a cup of sugar…

1847 Venables st. Vancouver

Jan 13:$2,488,000
Feb 8: $2,290,000
Change: – 198000.00 -8%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMVhNQQ==

#149 Alex on 02.08.17 at 9:53 pm

I am in that top 1% bracket and this liberal government can go to !?!%?
To whoever says that I need to pay back my medical studies, I will answer this :
I was the best in my school since I was 10 years old
Got in med school at 18
Graduated 10 years after in a highly sought subspeciality
I am not incorporated and pay back more than half of what I make every year
Within the first 10 years of working (started at 28), I have given back more than 3 million dollars !
The burden for our society to “make” one doctor from start to finish is around 300K
So I have paid back 10 times this amount.
If anyone is jealous, then go for it : nothing prevents you from applying to med school and working your butt off for 10 years in a row.
I am now close to 40 and my net worth is in # millions
If as a society you want to pay your doctors and your surgeons the same salary as a blue or white collar average job, go for it, but you will get crappy care
and I will retire tomorrow.
Do you think people would handle their money to Buffett if he was not Buffett : expertise has a price and will always have.
Now this liberal government of us has no clue what to do to stimulate our economy. Bring more taxes, come on bring some more !!! It will stimulate the economy.
When will people realize that it’s that top 10% of the richest people in Canada who are responsible for every social program there is in our country.
Do people understand how many people I help every day with the taxes I pay (1000$ a day over 365 days) ?
This is much more than the loonie you are giving every once in a while to that guy wiping your windshield.

End of the rant

#150 Kevin's Fanzone on 02.08.17 at 9:55 pm

Govt is so out of control its now beyond disgusting….

So there is no money for my wife and I and many others who need fertility help – meanwhile there are BILLIONS for immigrants and refugees.

Well now we find out today that the BC govt pissed away $132,000,000 to help 700 troubled kids. Thats $189,000 PER KID per year. And here is the best part. Nobody knows how the money was spent. These kids are not sitting around hooked up to machines in the ICU.

Please. If there are such things as benevolent aliens PLEASE COME NOW and HELP US !!

#151 Leo Trollstoy on 02.08.17 at 9:56 pm

#69 Adam on 02.08.17 at 7:38 pm

Found the poor person lol

Relax. Be happy. Eat cake

#152 rainclouds on 02.08.17 at 9:57 pm

Looks more like blood spatter than pink snow, price reductions everywhere on GVR

http://www.myrealtycheck.ca/

#153 Trojan House on 02.08.17 at 10:03 pm

People have no clue that:

When governments are broke (as is this government, and also the Ontario government for that matter) they will tax anything and everything.

JUSTIN TRUDEAU – NOT MY PRIME MINISTER

p.s. I’ll be curious to hear if there is something in the budget that talks about going cashless – makes it much easier to tax people

#154 Capt. Serious on 02.08.17 at 10:04 pm

I’m going to admit I overestimated these Liberals. They’re total f$@%ing idiots. Where is Paul Martin when we need him?

#155 AComment on 02.08.17 at 10:08 pm

Thank Garth for this post who made me recall the book https://en.wikipedia.org/wiki/Atlas_Shrugged while remembering Andrew Hallam https://andrewhallam.com and the way to live absolutely outside of Canada.

What would happen if the doctors and other high paid professionals decide to move South?
Garth, the Bandit’s veterinarian has spots for humans?
We might need them.

#156 Smoking Man on 02.08.17 at 10:10 pm

DELETED

#157 Joe2.0 on 02.08.17 at 10:15 pm

Bombardier thanks all you tax payers for the subsidy.
Well at least it will create jobs…
Wrong.
And the average salary 90k plus.
Oh and they lost over a billion dollars in the past 18 months.
And the head honcho still made over 6 million.
At least Justin Screwall got some sort of collateral.
Nope.
Well it’s the first time they have been bailed out.
Nope.
Well at least we can see their books.
Nope, their lawyers had their books sealed and deemed inaccessible Years ago.
Because … Drum roll.
They have been bail out numerous times before.
Justin says, go fly a kite suckers.

#158 Garth Turner for PM on 02.08.17 at 10:17 pm

What are you waiting for Garth? You know I hate CONservatives more then anything in the world but I would vote for you.

#159 Bottoms_Up on 02.08.17 at 10:18 pm

#115 A 1%’er on 02.08.17 at 8:48 pm
————————
And without other 1%’ers tax money you may have never been able to go to school, and never would have become a 1%’er yourself.

#160 45north on 02.08.17 at 10:20 pm

Bottoms_UP: Look at Ottawa, city employees can get fired with one report to a hotline of someone using the company car to drive their girlfriend home after work.

I’m looking:

Infractions which did not result in more serious punishment included using city vehicles for personal errands

http://mcaf.ee/wfkysm

( original url was too long )

#161 White Privilege on 02.08.17 at 10:23 pm

You should run for PM Garth. Imagine if you won and we’d have you and Donald Trump working together like two peas in a pod. Two great physiques and tremendous heads of hair… i mean state!

Kevin O’Leary is obnoxious and pretentious. whereas you and Trump are both so humble and intelligent. One a builder of skylines, the other a builder of waistlines (ice cream is fattening).

Do it man! Do it!

#162 Bottoms_Up on 02.08.17 at 10:24 pm

#111 Damifino on 02.08.17 at 8:41 pm
—————————-
Interesting point. If we could start from zero and implement any sort of taxation, I would support halving income tax, but yes doubling tax on speculation.

#163 Jeff on 02.08.17 at 10:25 pm

So the strategy will be to get dividend growth stock and keep them forever.

If this new rule is implemented, I will only invest money in TFSA and RRSP.

I guess we can expect a drop in canadian stock market.

#164 joblo on 02.08.17 at 10:27 pm

Okay T2 that does… I don’t wanna work Iwanna bang on the drums all day!

https://www.youtube.com/watch?v=Xm8kUNXw3s4

#165 BG on 02.08.17 at 10:30 pm

I come from a lower middle class family and I have overtime worked my way to decent income level (100k) and got balanced portfolio.

I’m nowhere near 1%, still these changes will affect me.

I’m pissed off.
I’m planning on using any legal tool to avoid taxes.
Or even go work somewhere else.
Screw the liberals.

#166 Deplorable Communications on 02.08.17 at 10:36 pm

#127 Smoking Man on 02.08.17 at 9:10 pm

Well I’m done. Career Suiside on linked In. Gone total Smoking Man. Hammered and sharing my real thoughts attached to my real name. I pulverized Dickenson from the Canadian version of Shark Tank. Forgot the name. She’s an entrepreneur but sucks up to T2. I lost man. She’s so dumb.

I’m such an idiot.

Well I’m never getting a gig again with the pc banks on bay street again. Their CEO’s are marching for George Soros shoot your self in the head to fit in written by deranged lunatics.

I might as well start an uber thing for fx where peer to peer fx transactions wipe out the 6% banks charge for fx convent transaction.

My new corp and software will take only one pip on a zillion dollar industry.

Is Edward Jones interested?

Talk to the hand, going on vacation to get completly wasted. From dusk to dawn.

Being a gambler and risk taker so under rated.

Well it still says you were in charge of engineering development at DeHavilland… LOL… you can always go back to that gig at Bombardier….!!

#167 Keith on 02.08.17 at 10:39 pm

#144 Alex

Nice fake post, your grammar is not at the level of a best in class ten year old. Multi millionaire before the age of 40? Clearly overtaxed and hard done by. Find somewhere else to whine.

#168 Spectacle on 02.08.17 at 10:43 pm

So Garth, I guess the moat froze over this evening? Ugh!

Here is a site, watch the video about Trudeau the idiot! (Explains why they sent him across Canada to have tea with the only people he can’t fleece, and will vote for him). Excellent blog post Garth, my country is being robbed and destroyed, one class to the next.

Justin trudeau is an idiot, compilation of stupid moments for trudeau, trudeau the moron | Liberal Liar
http://www.liberalliar.ca › trudeau › is-justin-tr…
Jul 20, 2016 – The Prime Minister of Canada Justin Trudeau has said some remarkable things, things that shocked the world, how much of an idiot can you be? So is he an idiot? Let’s find out, Trudeau is famous for …

#169 Alex on 02.08.17 at 11:01 pm

#144 Yeap my English sucks big time since french is my mother tongue but you got my message, right ?
Nope I will never stop whining. I am paying more than 300K to this country so I have 300,000 reasons to whine every year !

#170 Bottoms_Up on 02.08.17 at 11:07 pm

#144 Alex on 02.08.17 at 9:53 pm
————————
How much more money do you want? How much is enough?

You live in a country that allows you to not have to have a walled compound, and where you can put your skills to work and have a good lifestyle.

Don’t like it? I’m sure a clan in Somalia would love to have someone with your skills “on the dole”.

#171 Ponzius Pilatus on 02.08.17 at 11:08 pm

DELETED

#172 The Wet Coast on 02.08.17 at 11:12 pm

To all the folks that want to move to the US because it has lower taxes, well it does on the surface. When you dive down the road there are schools, police, government buildings and the huge military. What do you think pays for all of that? Healthcare with the new Obama plan costs you $10,000 per year out of pocket for a family of 4 if you have an employer plan. Social security is about 7% if memory serves. I lived there as a GC holder for 9 years, and a great place. When I returned home I found that my pay after deductions, and accounting for all the extra charges that went with my health plan was about the same. I didn’t need a snow shovel like I do in YVR this year, and I miss that.

#173 Ponzius Pilatus on 02.08.17 at 11:19 pm

#118 Social scientist on 02.08.17 at 8:50 pm
As it has often been said, we live in a society where the poor drive their cars to the protest they found out about on their iPhone via Facebook.
————-
Give me a break.
You are neither social or a scientist.
Garth, please activate the IQ sceening software on your blog.
Thank you.

#174 Rob on 02.08.17 at 11:19 pm

Even our brave troops are getting their danger tax exemptions cut…shameful!

http://www.ctvnews.ca/canada/soldiers-serving-in-kuwait-lose-major-tax-exemption-1.3277313

#175 Self Directed on 02.08.17 at 11:26 pm

#108 Dan on 02.08.17 at 8:40 pm

Meh, dont care. I max mine and my squeezes TFSA every year and put some in my rrsp for the spousal switch at a later date. I dont have a non-registered account and I’d rather keep my 3 overseas vacation trips per year than open one up.
……………………………………
He took away half your TFSA contribution room this year (and put the squeeze on your squeeze too). Maybe you should care… at least 50% more than you do now.

#176 Doghouse Dweller on 02.08.17 at 11:27 pm

The true deplorables ~ Bomdardier the company’s dual-class shares, which keep control of the company in the hands of the Bombardier-Beaudoin family. Never ending , million and billion dollar welfare cheques for private company execs that should have been bankrupted or jailed decades ago.

And you’ve been picking on broke ass OAS seniors ?

#177 WUL on 02.08.17 at 11:31 pm

Yes, an increase in capital gains tax rates will add to the disgruntled in certain strata here.

How ’bout that Stats Can census news? Why did it take 30 years longer for people in Toronto than folks on the Rock to discover the lyrics of Lightfoot’s “Alberta Bound”?

M61!!AB (Cake in the lunchroom at 4:00)

https://m.youtube.com/watch?v=w90eF0Pfe6M

#178 Paul on 02.08.17 at 11:33 pm

#148 Trojan horse
They want to have cashless to tax but also no visible welfare people lineing up at the bank on cheque day plus all benefits done by a click or a tap of some card.
Out of site out of mind and no real hand up for folks that truly need it.

#179 tkid on 02.08.17 at 11:40 pm

These are the types of moves a government makes when it is bankrupt. T2 is trying to raise taxes without upsetting the masses who elected him. And most sheep will bleat about what a good thing it is that those bad, nasty high-earners are being punished. What villains those high-earners are!

They tried this in Britain. And now try seeing a doctor when you need one. NHS pays for the medical bills, but there aren’t any doctors around, so you die in the waiting room. But at least you weren’t billed for dying in the waiting room.

Those bad, nasty high-earners are type-a personalities who, when presented with obstacles, will find ways around those obstacles. The best method is brain drain. Most of them will leave for sunnier economic climates. And they’ll take what’s left of their over-taxed savings with them. They’ll invest in the US, or wherever, creating American jobs while Canadian jobs continue to be lost.

And then T2 will raise taxes more, to make up for the taxes lost when the 1% left. Sooner or later, the sheep end up paying the tax bill, once when they lose their jobs, and again when the sheep become the 1% they so despised.

If you keep removing the encouragements-to-invest-at-home by upping the taxes, those who invest-at-home will go elsewhere. At first their money leaves the country, then they leave the country. Make sure you want them to leave before starting the ‘damned villains should be made to pay it’s only fair’ rant.

And now I gotta sell XIU, CPD, XTR and buy the US equivalents. And then I gotta figure out what country will let me open an investing account without being jerks about it. And then I gotta figure out how much I need in order to live in another country and break ties with Canada. Canada can’t tax me if I break ties. I just gotta tolerate continuing to pay taxes on my offshored money for two more years. And that’s what stopping a muddler from leaving this country.

(If yer muddlers are planning on leaving, you can be damn certain the type-a ones already have their plans in motion.)

#180 For those about to flop... on 02.08.17 at 11:49 pm

Welcome to Garth Turner’s birthday blog.

Happy 61st birthday WULLY.

The piece of cake you sent me in the mail tastes like the oil sands…

M42BC
M64WI

#181 Paul on 02.08.17 at 11:53 pm

This tax thing is so decisive, the idea that you should after tax money out to work and take a calculated risk with the gain if any should have more than half taxed away.
Who would do this the . The only people that say a dollar is a dollar most likely never save or invested in anything and wants to take from those that did.

#182 WUL on 02.08.17 at 11:54 pm

Although, it must be borne in mind that the Stats Can report on the Great Migration to Calgary and Edmonton covers the period from 2011 to 2016 which includes the Great Oil Sands Boom. In June 2014, WTI was $105 – $112. The Great Fizzle commenced in July, 2014.

Don’t uncork the bubbly.

#183 Questions on 02.08.17 at 11:54 pm

I’m a lefty. The kind that believes in regulated empathy, enough so that free market capitalism can be, but not eat itself alive.

I’m surprised this isn’t all over the Cdn news, so I’m a bit skeptical this is really going down. Is it overstated in this post?

If this is true, it’s quite possibly the worst, miss-timed move in Canadian fiscal policy.

Or, Canada is being re-tooled as a worker-bee nation with some resource and banking oligarchy, of course little empires of unproductive RE to keep us dumb and keen, and all the talk of innovation and progress is just talk.

So what was the schooling for??

#184 Damifino on 02.08.17 at 11:55 pm

#157 Bottoms_Up

Interesting point. If we could start from zero and implement any sort of taxation, I would support halving income tax, but yes doubling tax on speculation.
————————————

I wonder. Would that, for example, include doubling the tax on fat capital gains made by the sale of a Vancouver principal residence?

Trick question. Two times zero is still zero.

#185 clever_title on 02.09.17 at 12:29 am

#164 Alex
Don’t sweat the English. The non-a-holes here understand you quite fine.

#186 Victor V on 02.09.17 at 12:33 am

Two corruption trials for Liberals will overlap

https://www.thestar.com/news/queenspark/2017/02/08/two-corruption-trials-for-liberals-will-overlap.html

#187 White Crock BC on 02.09.17 at 12:35 am

John on 02.08.17 at 6:17 pm

The good news is that angry voters will take out their anger on Wynne and then after practicing on her, they’ll toss T2 afterwards.

=========================

Ontario voters are among the dumbest in the world.

Wynne will be re elected.

#188 chapter 9 on 02.09.17 at 12:39 am

#119 Ex-Cowtown
Next stop…Taxing your TFSA. Aloha baby,we hardly knew ye…

Next stop…RRSP’s, increase the withholding tax by 10 points for every bracket.

#189 yorkville renter on 02.09.17 at 12:42 am

#58 I also borrowed my way through school and had close to $50k in loans upon graduating, but I kept working hard and started earning 6 figures before I turned 30… you say you worked hard, but maybe not in the right jobs to earn at your highest potential?

#81 Total and utter racist BS. Since when are new immigrants all Muslim? and Muslims can absolutely drink coffee… where did you come up with this? Do you know any Muslim people? geesh, get outside a live a little

#190 BS on 02.09.17 at 12:46 am

Word is spreading that T2 and his finance guy, Bill Morneau (who should know better) will increase the capital gains inclusion rate from 50% to at least 66% and maybe even 75%.

The nice part about capital gains is you can choose when to take them. We are less than 3 years away from the Liberals being thrown out. Tax revenue will drop in the next 3 years when people hold off selling investments with capital gains waiting for a change in government. Tax increases often lead to reduced tax revenue. This one is a slam dunk flop.

#191 Renting in the GTA on 02.09.17 at 12:50 am

If this becomes true… Why have I been investing my life savings this whole time?

I should have just been like the rest of the sheep and held onto my house…

I have failed my family.

#192 Balmuto on 02.09.17 at 1:22 am

A company’s earnings can be either be retained and reinvested or paid out as dividends. The decision to pick one over the other should be determined by the underlying economics of the company and not by tax laws.

I would think it fair that whatever the company pays out in tax + whatever you the shareholder pay in tax for dividends or for capital gains should be the same rate (more or less) as what the bondholder pays in tax for interest income. The government should be getting the same amount of money in aggregate either way.

I believe currently at the highest income bracket capital gains have a more favorable tax treatment than dividends; maybe that will even out after this change. If it overcompensates then clearly it’s gone too far.

I don’t think you need to be compensated for risk with a tax benefit for capital gains because the higher gross return possibility should be enough incentive. Higher risk entails higher reward. And we have enough promotion of personal savings via the RRSP, TSFA and RESP shelters, although higher limits would be nice.

I have the most sympathy for those with investment properties because it’s a big bill and a lot of the above considerations don’t apply.

#193 Economystical on 02.09.17 at 1:25 am

#133 White Privilege

“Hilarious”

I am deeply insulted this was not made to be funny. Or maybe you are ridiculing economystical. This is the way the world works, get used to is. Laugh if you want but we are coming for whatever assets you have, in the name of world peace. It is the economystical way and it will prevail. It’s the new black.

#178 Questions

Um you are exactly the sort that we economysticals hope for. Now wander down to a Milo speech and set something on fire. No gay man with a black friend should ever be given the right to give a speech. Can we not all agree on this? Only social justice warriors can give speeches and anyone who doesn’t agree is a Nazi.

#194 Unoccupied on 02.09.17 at 1:51 am

http://vancouversun.com/news/local-news/census-counts-25502-unoccupied-homes-in-vancouver-more-than-double-the-estimate-by-city-hall

#195 TRT on 02.09.17 at 2:12 am

#144 Alex on 02.08.17 at 9:53 pm
I am in that top 1% bracket and this liberal government can go to !?!%?
To whoever says that I need to pay back my medical studies, I will answer this :
I was the best in my school since I was 10 years old
Got in med school at 18…..

——————–
Who cares?

Who cares how long you went to school or if you were top 1% in your class? Is that supposed to be the gauge whereby one bases their income on??

The only reason your income is high is because of artificially created supply restrictions on who can become a doctor in Canada.

A 4 year degree should not be a licence to print money. Most people in the UK who are doctors enter medicine when 18.

#196 TRT on 02.09.17 at 2:24 am

I second

A DOLLAR IS A DOLLAR IS A DOLLAR.

Why is government even meddling in free market capitalism? Tax all types of earnings at one rate (a flat tax or progressive tax).

If only the sheep knew. But the sheep are awakening.

#197 oragano on 02.09.17 at 3:00 am

I like some of my teachers but I don’t want them to lead our economy.

How about some solutions, Garth?

1. Abolish income tax – that means no more headache
filing with deadlines. Smaller govt workforce.
2. Sales tax – to flat rate of 15%?
3. Income from interest, capital gains, dividends – to
flat rate at 15% to 20%?

#198 Boots on the Ground in Ptld on 02.09.17 at 3:11 am

#91 Ray Skunk
#121 White Privilege
————————————-

Couldn’t resist adding: Note that the US citizenship renouncement fee went up 422% in the last 3 years.
Getchya comin and goin. Sure you don’t have to become a citizen but from what I can tell even some green card holders are subject to some of the renouncement fees, depending.

#199 Millenial on 02.09.17 at 3:28 am

#93 mike from mtl on 02.08.17 at 8:11 pm

You gold bugs make me smile, just try getting on a plane with any decent amount of gold. “…No sir I’m just really happy to see you..” ;)

**********************************************

A Canadian one ounce gold coin is sovereign currency, with a face value of $50, you can certainly travel with it. Not that i’d bring it to anybody’s attention. It’s about the size of a toonie; just stick it in your change purse with normal change and nobody will even notice it. BTW, not sure what you consider a ‘decent amount’ but the spot price for an ounce of gold right now is $1630 CAD. Pull up some stat quoted by garth about what percentage of canadians don’t have $500 for an emergency, then yes, $1630 is a decent amount of money.

#200 Interstellar Old Yeller on 02.09.17 at 3:29 am

#178 Questions on 02.08.17 at 11:54 pm
I’m surprised this isn’t all over the Cdn news, so I’m a bit skeptical this is really going down. Is it overstated in this post?

Garth has contacts on the inside.

I’m not thrilled about this news but I’m a long way off from realizing any meaningful capital gains on my taxable investments. If T2 touches the eligible Canadian dividends, though, then I’ll be peeved!

#201 Dan.t on 02.09.17 at 4:35 am

There you have it. More justification and reward for reckless behaviour. REAL ESTATE is the only thing that Canada understands and sees as an investment (the majority of the public anyhow).

Now government wants to tax people further who would risk savings to get a return and those who take out 95% leverage to buy Real estate (most last years already heavily indebted or funded by Bank of Mom) get rewarded.

Unreal the polices that have been enacted to encourage a real estate economy and EVEN at nose bleed levels still try and encourage people to buy and now, further policy to crack down on investing public (savers who are trying to secure or save retirement).

It’s simply SAD that it has gotten to this point.

Policy is clear

1)DON’T mess with housing prices perceived equity (80% own- our voters- everyone understands a house)

2) Kick the crap out of savers/ investors or anyone who is not enslaved by the big banks

3) Enact the biggest Big Brother state – let government intervene in ALL aspects of your life (because they know better) and tax the heck out of you.

By the way how old it Trudeau? Sure he had to scrape by and fight and claw to make ends meet as he built up his fortune….oh, wait, nope, spoon fed, offered all opportunities in the world- best education, I bet never 1 day worried about money or risking his livelihood on creating a business or thought about where he would put his savings so that at retirement he has some kind of life….( not to say he doesn’t deserve to be where he is and didn’t work his butt off, but his life falls under a different set of rules that a vast majority of Canadians).

Government all the way baby. (that wasn’t sarcasm…that is the best place to be). Retire after 20-25 years of safety with a pension that’ll look after you for at least 20-30 years- Jackpot. You don’t need to save and invest, all taken care of.

I think the divide between Canada and the USA is going to be staggering the next years.

#202 Looney Baloney on 02.09.17 at 4:39 am

“The commies are coming,
The commies are coming”
It’s a plot!
…. To bleed Canadians to death by taxing

#203 Jack Fortin on 02.09.17 at 5:15 am

I had thought the ridiculous prices of real estate in many parts of Canada were due to the financial repression of artificially low interest rates. The tax treatment of profits from the sale of a primary residence clearly have much to do with that as well as Garth points out.
How long can interest rates continue to be contained? At some point we must see a normalization. The implications for real estate are indeed scary. The concentration of wealth in that sector suggest a massive flow to “money heaven” at some point in the future. With primary residences not subject to capital gains, people who sell their homes at massive losses will not be able to claim those losses against other investments or income.
The artificially low interest rates we see now may be causing some losses in profits at the banks but a fall in RE values will totally eviscerate bank asset values. I feel like I am in a theatre and just catching a wiff of smoke. The problem is that the alarm is broken and the emergency exits have been blocked. Popcorn anyone?

#204 Adam on 02.09.17 at 6:02 am

#176 Paul

Garth got you to fall for it. Already having paid tax on the money you invested has nothing to do with it. This income was always taxable, even bringing up the point that you already paid tax on it adds nothing to the argument and only detracts from it when it’s obvious that it’s a statement that’s being made for the purpose of trying to dupe you. The argument is illogical and, in reality, has nothing to do with the taxes that you do or don’t pay on any capital gains that income subsequently generates.

Moreover, “more than half taxed away” is wrong, too. Garth, with his great ability to spin, incorrectly insinuated in one of the comments above that you pay 50% tax on the capital gains which is wrong. Under the current tax brackets, the most anyone would ever pay in tax on a capital gain is 27% of that gain (because only 50% of your capital gain is eligible to be taxed at your marginal rate). If the rules change and the inclusion rate goes up to 75%,, then the most anyone would ever pay on a capital gain is 40.5%, but keep in mind, in order to pay 40.5% you’re already in a 54% tax bracket (only in New Brunswick I believe, but I could be wrong, maybe Quebec, too).

So under a new inclusion rate of 75%, after you’ve already made more than $200,000 in “regular” taxable income for the year, and if you live in New Brunswick, you’d pay 40.5% of any capital gain you realized that year in tax. Not half.

And if you’ve already made over $200k (and are living in New Brunswick while doing so where the cost of living is somewhere around $20 a week, nowadays I believe), and have capital gains that you’re realizing on top of that, then quit your whining. Nobody’s going to cry a tear for you.

#205 Observer on 02.09.17 at 6:18 am

Anyone else notice that a large number of those opposed to this taxation sound like self obsessed simplistic drama queens?

#206 DoomandGloomer on 02.09.17 at 6:48 am

#45 Turner Nation

“Men are the new victims in this economy.”
——————————————————————–
Maybe.

Or, we can put a positive spin on this trend and say:

“Our turn to sit around the house all day while dem bitches bust THEIR butts bringing home the bacon!”

SWEET!

#207 DoomandGloomer on 02.09.17 at 6:53 am

#193 TRT

“Most people in the UK who are doctors enter medicine when 18.”
——————————————————————-

Hopefully, for your sake, when you’re lying on a operating table after your hear explodes, it won’t be one of those “got into med school in the UK at 18” hacks leaning over you with a dull scalpel in his sweaty hands.

#208 OLeary Lover on 02.09.17 at 6:59 am

Anyone else notice that everyone FOR this tax are the ones that haven’t earned any capital gains?

#209 Dharma Bum on 02.09.17 at 7:06 am

#201 Jack Fortin

“How long can interest rates continue to be contained? At some point we must see a normalization.”
——————————————————————-

Interest rates will remain abnormally low for as long as we remain in this precarious economic situation. In other words, until we somehow figure out how to redevelop an actual economy.

We must come to terms with the fact that the Canadian economy is on life support. It is artificially stimulated by, among other things, (virtually) zero interest rates. Raising the rate in this “economy” would be like pulling the plug on grandma’s respirator.

This economy, like grandma (who forgot to include the DNR instructions in her will), doesn’t really work by itself. It needs artificial help to keep going.

T2 should help prolong the agony until the final spectacular implosion. The carnage to come will be what we need to weed out the weakest and sickest among us. It will be a catastrophe of apocalyptic proportions.

Then, the rebuilding will begin for a new generation. Few among us will survive. It will become a part of economic history that will make the depression era seem like a week in Disneyworld.

#210 DBB on 02.09.17 at 7:12 am

So, what’s the strategy – hold moderate risk ETFs, prefs, reits, etc. and avoid selling until at least 2019 (if the cons can win pretty good chance this gets repealed especially with O’Leary)?

#211 Prince Polo on 02.09.17 at 7:13 am

Why does true-D’OH hate balanced blog dawgs and financially-savvy Canadians?

#212 Looney Baloney on 02.09.17 at 7:14 am

I don’t get it. Hellary calls Trump fans deplorables, introducing the term into your layman’s vocabulary. Last time I checked, those on the right, including these ‘deplorable’ Trump supporters weren’t the ones calling for higher taxes and more .gov freebies. If anything, they wanted less .gov in their lives.

So why is this deplorables week? If anything, it should be called Commie week or the Looney left week. Also, none of this is surprising considering how it has been virtually proven T2 is a product of now disintegrating kommie King kastro’s loins.

#213 Looney Baloney on 02.09.17 at 7:15 am

#203, you’re wrong, I don’t think selfie king T2 opposes this tax.

#214 pBrasseur on 02.09.17 at 7:41 am

Not gonna happen!

Exact same rumor last year, nothing happened. Why would it this year with Trump wanting to cut taxes in the US. Such a bold leftist move at this point makes absolutely no sense!

The Feds are currently looking closely at Trump fiscal intentions, this shows they are paying attention. Most likely scenario: don’t expect big changes until what happens down south becomes clear.

#215 Good one Garth, piss everyone off on 02.09.17 at 7:43 am

Not only did you manage to scare the beejusus out of me with the Capital Gains Inclusion Rate increasing from 50% to 66%-75%, but you also managed to rile the 99% calling them Deplorables.

Epic vitriol and incensed comments today, made for good reading – from the 100%.

I liked the Tim Horton’s roll up the rim image, good one.

#216 Habbit on 02.09.17 at 7:46 am

Alex 147 Hi Alex and thanks for doing what you do. I started my working life as a construction worker getting a journeyman certificate and working my way up to estimator/project manager. My best earning years was in the 70K range. No complaints it’s what it is and I was fortunate to work for decent hard working people. We were able to help our kids go to school afford a modest home and put some $ away. We consider ourselves very fortunate. We have been seeing our GP since 1976. He has done very well and we believe he is worth every penny. Awesome person that really cares for his patients. At the end of the day he gives back more than he takes. There is an envy problem in this countr. Instead of celebrating others success and hard work for we mostly all want to live on top of the hill with average wages because we are somehow entitled. We wanted you to know we celebrate your success and believe there is a limit to how much tax everyone including the high earners should pay. Take care eh

#217 #53 TurnerNation...true but... on 02.09.17 at 7:56 am

Why we have University Business Schools to teach them that profit is great, even if it means laying people off towards that end (Offshoring/Globalization) and that making risky investments with other peoples money is also great, even if that means putting the World into depression – the latter having been done with complete legal impunity.

Yes, I like the above better.

#218 jess on 02.09.17 at 7:58 am

Privatised War
Revealed: British firms paid $60 billion by Obama’s Pentagon
October 6, 2016 by Crofton Black
Published in: All Stories, Privatised War

Fake news and false flags: How the Pentagon paid a British PR firm $500M for top secret Iraq propaganda

http://labs.thebureauinvestigates.com/fake-news-and-false-flags/

https://www.thebureauinvestigates.com/2016/10/06/revealed-british-firms-paid-60-billion-obamas-pentagon/

#219 Two Economists on 02.09.17 at 8:03 am

A Wall Street Journal article provides two different well-reasoned answers to the question “Are capital gains so different from earned income that they should be taxed at a different rate?” by two top-notch economists (click the link below). Enjoy.

https://www.wsj.com/articles/how-should-capital-gains-be-taxed-1425271052

#220 pBrasseur on 02.09.17 at 8:06 am

Talking of rumors…

http://www.torontosun.com/2017/02/08/palin-as-us-ambassador-to-canada

I’m sure Junior would love to go canoeing with her…

#221 crowdedelevatorfartz on 02.09.17 at 8:11 am

@#141 Stock Picker
“do I hear the crunch of crow bone?”
********************************************

Nah, thats just one of those $1.49 Third World Country dental fillings you’re always bragging about……..

#222 Reply to #71 on 02.09.17 at 8:12 am

Should governments be taxing inflation? Should asset prices not be adjusted for inflation when calculating capital gains for tax purposes?

A basket of goods and services that cost “x” in 1985 would cost “2x” in 2016, according to the Bank of Canada’s inflation calculator.

#223 A Dollar is a Dollar is a Dollar on 02.09.17 at 8:16 am

#113 Dumbifino said:

Absolutely not. No Way.

Full stop.

A dollar earned by risk is not a dollar earned by labour. It is only the risked dollar that creates the possibility for an earned one.
—————————————————————–

Translation:

A dollar earned by white people is worth more than a dollar earned by non-white people.

A dollar earned by a man is worth more than a dollar earned by a woman.

A dollar earned by someone with inherited privilege is worth more than a dollar earned by a working class or poor person.

A dollar earned by someone connected to our historically corrupted, insider-infected financial systems is worth more than a dollar earned by someone who simply works daily to earn it.

A dollar earned as shares by executive (i.e. connected, privileged, white males) is worth more than a dollar earned by sweat, even though the evidence is absolutely clear that executive compensation and stock options contribute absolutely nothing to a company’s success.

And last but not least, you presume that there is no risk involved in honestly earning a dollar. LOL! (Ever heard of coal miners, truck drivers, cops, nurses, our military service women and men, small shop owners, etc…etc….etc…?)

And you utter such stupid alternative facts, ….why?

Oh yeah, “because it is 1817!”

Wait a minute…………..

#224 pBrasseur on 02.09.17 at 8:22 am

@#217 Two Economists

Taxing capital gains does two very nasty things :

1) It scares away investors.

2) It immobilizes capital, that is people will refrain from selling and buying new stuff to avoid triggering a taxable gain.

Both extremely bad for the economy, most specifically bad for economic renewal and innovation, precisely what this country needs most!

#225 This Blog is the Pulse of the Nation! on 02.09.17 at 8:28 am

Who needs CBC (a.k.a., Radio Moscow or Ici Radio Moscow) when you have the Comments section of this Blog…it totally rocks!

You get more about what Canadians are really thinking here than a months worth, or more, of Radio Moscow news.

Never retire Garth, never, ever.

#226 IHCTD9 on 02.09.17 at 8:47 am

#212 pBrasseur on 02.09.17 at 7:41 am
Not gonna happen!

Exact same rumor last year, nothing happened. Why would it this year with Trump wanting to cut taxes in the US. Such a bold leftist move at this point makes absolutely no sense!

__________________________________________

With Trudeau and his gender neutral fresh out of high school cabinet ministers, the less sense it makes, the more likely it is to happen. Also, if he makes a promise – that actually means it won’t happen.

Next up – sorry, we can’t legalize MJ (Trump won’t allow it). Watch for it.

You can bet he’ll send out the fresh young faces again, to break the news.

#227 IHCTD9 on 02.09.17 at 9:04 am

#204 DoomandGloomer on 02.09.17 at 6:48 am
#45 Turner Nation

“Men are the new victims in this economy.”
——————————————————————–
Maybe.

Or, we can put a positive spin on this trend and say:

“Our turn to sit around the house all day while dem bitches bust THEIR butts bringing home the bacon!”

SWEET!
__________________________________________

Spin? Ae you kidding me? No spin required!!

Remember Jen and Phil from a few days back? She works 70+ hours a week, and Phil stays home with the young lad. Life doesn’t get any better than that. Deep down inside, men know this is the way things were meant to be.

That is the way things always were in North America before Europeans came here:

“Considering all these events, in your opinion, where did the white man go wrong?”

The Chief stared at the government official then replied,

“When white man find land, Indians running it, no taxes, no debt, plenty buffalo, plenty beaver, clean water. Women do all the work, medicine man free, Indian man spend all day hunting and fishing, all night having sex.”

Then the Chief leaned back and smiled, “Only white man dumb enough to think he could improve system like that.”

Indeed – I’m going to train to become a feminist :)

#228 Yanniel on 02.09.17 at 9:21 am

Buenos Días Garth.

I could not sleep last night thinking about this :-( I certainly did not vote for T2 and I certainly will not vote for him next election. Total disclosure: I am not a 1percenter, just a working guy (employee/happy renter) making personal/family sacrifices to max out the TFSA and RRSP.

I was so close to open my non-registered account. Should I bother now? Is it not better to relocate to the US in the hopes of finding better investment environment? That would suck. So, I was wondering what can we do while remaining in Canada…

Let’s say the capital gains inclusion rate is indeed increased.

a.) Is the balanced ETF portfolio still relevant? What adjustments can one made to the portfolio that would minimize the damage done by the inclusion rate increase?

b.) Should I write my MP here in Canada?

Thanks.

Yanniel.

#229 Looney Baloney on 02.09.17 at 9:25 am

#221

Just curious Mr. G, but how is #221 not racist, sexist and xenophobic?

I reviewed that post carefully and did not find it so. The rational for referring to race, age and gender was made clear. Lighten up. — Garth

#230 James on 02.09.17 at 9:33 am

#164 Deplorable Communications on 02.08.17 at 10:36 pm

#127 Smoking Man on 02.08.17 at 9:10 pm

Well I’m done. Career Suiside on linked In. Gone total Smoking Man. Hammered and sharing my real thoughts attached to my real name. I pulverized Dickenson from the Canadian version of Shark Tank. Forgot the name. She’s an entrepreneur but sucks up to T2. I lost man. She’s so dumb.

I’m such an idiot.

Well I’m never getting a gig again with the pc banks on bay street again. Their CEO’s are marching for George Soros shoot your self in the head to fit in written by deranged lunatics.

I might as well start an uber thing for fx where peer to peer fx transactions wipe out the 6% banks charge for fx convent transaction.

My new corp and software will take only one pip on a zillion dollar industry.

Is Edward Jones interested?

Talk to the hand, going on vacation to get completly wasted. From dusk to dawn.

Being a gambler and risk taker so under rated.

Well it still says you were in charge of engineering development at DeHavilland… LOL… you can always go back to that gig at Bombardier….!
__________________________________________
You told us you were a rivet bucker. So a rivet bucker is in charge of engineering? Ha,ha that’s hilarious. My cousin worked at DeHavilland and said a rivet bucker was a nickname for a person who went inside the wings to hold a tool on one side while the guy on the other side compressed the rivet. Were you in charge of designing the coffee order?

#231 Greg on 02.09.17 at 9:33 am

The top 10% have 70% of the wealth, and although I was unable to find the data I assume there’s a similar skew for the top 1%. So it’s only natural that they should pay a similarly high proportion of taxes, no?

And I say this as someone who would be hit hard by changes to taxes on capital gains.

#232 Atrate on 02.09.17 at 9:36 am

@ #1 cecilhenry

Your post echoes everything that I am feeling about our present system of government, both federal and provincial. I have watch with dismay the Wynne government slowly decimating the economy of Ontario through their ideologic, short-sighted, arrogant thinking. I am now watching the Trudeau government turn Canada into a socialist mire from which nobody will escape.

You said: “My only question: What can I do to actively STOP this involuntary subsidization of a parasitic system that is destroying my freedom and interests: economically, politically, culturally, and personally?”

The sad truth is, beyond casting your vote, writing your MP or MPP, demonstrating….there is nothing. We have no recall mechanism for arrogant, self-serving politicians who are out of step and out of control and drunk with the power given to them by a majority (hah!) of voters.

I feel your pain, truly. I have worked my @ss off for 34 years to get what I have and the prospect of giving more of it to the government makes me feel ill. I being to wonder seriously if relocating to another country might not be the best answer to the ridiculous fiscal mismanagement being practised by our governments at every level.

#233 IHCTD9 on 02.09.17 at 9:46 am

#185 White Crock BC on 02.09.17 at 12:35 am

Ontario voters are among the dumbest in the world.

Wynne will be re elected.

_________________________________________

She might as well be. It’ll take 4-5 consecutive Mike Harris style Conservative majorities to even begin fixing all the damage. Pigs will fly before that ever happens in Ontario.

Personally, I’d rather not see the eventual Provincial implosion created by the Libs to hit ground zero on the Blue’s watch anyway. It’s guaranteed to hit someone though as the Ontario voting public does not want anything to be fixed. Might as well make sure the egg hits the right faces.

I’ll be voting swan dive. If the Libs replace Wynnie with some other candidate – then I’ll vote NDP.

Trust me, it’s the quickest way.

#234 Craven Moorehead on 02.09.17 at 9:57 am

Lets see how we are doing in 2 or 3 years after a tax refugee brain drain to the US and relocaction of 1%ers to the Bahamas, Caymans, and other offshore tax havens

No room for risk takers, business entrepreneurs, or educated professionals in T2`s Canada, they know what`s best, and we should just leave it up to them to pick the winners and LOSERS

Governments always exaggerate their accomplishments, but rarely admit their mistakes, so suck it up, you voted for them, and they have decided you are going to be the chosen LOSERS in their Canadian vision

#235 X on 02.09.17 at 9:58 am

#96 A Dollar is a Dollar is a Dollar

Careful what you ask for…tax free principal residence exemption is pretty nice…why would you want to tax every profitable dollar equally….many companies financing would dry up…leaving some on this blog unemployed.

#236 Pepito on 02.09.17 at 10:03 am

#222 pBrasseur on 02.09.17 at 8:22 am
@#217 Two Economists

Taxing capital gains does two very nasty things :

1) It scares away investors.

2) It immobilizes capital, that is people will refrain from selling and buying new stuff to avoid triggering a taxable gain.

Both extremely bad for the economy!
_____________________________________________________________

Prove it. Show evidence with references otherwise it’s just more of the same old worn, trickledown, job creators bs.

#237 IHCTD9 on 02.09.17 at 10:18 am

#172 Rob on 02.08.17 at 11:19 pm
Even our brave troops are getting their danger tax exemptions cut…shameful!

http://www.ctvnews.ca/canada/soldiers-serving-in-kuwait-lose-major-tax-exemption-1.3277313
_________________________

Wow, I have been figuring that the main force of cash extortion with no lines in the sand would peak late this year/early 2018.

Looks like I may have given the Libs a little too much credit for holding things together, and for being ethical and honorable.

For sure too much of the latter.

#238 IHCTD9 on 02.09.17 at 10:22 am

#169 Ponzius Pilatus on 02.08.17 at 11:08 pm

DELETED

_____________________________________

Ahhh… refreshing!

#239 IHCTD9 on 02.09.17 at 10:31 am

#168 Bottoms_Up on 02.08.17 at 11:07 pm
#144 Alex on 02.08.17 at 9:53 pm
————————
How much more money do you want? How much is enough?

You live in a country that allows you to not have to have a walled compound, and where you can put your skills to work and have a good lifestyle.

Don’t like it? I’m sure a clan in Somalia would love to have someone with your skills “on the dole”.
________________________________________

Excellent job of missing the point.

How about you build yourself a beautiful 2 car garage. Spend 100’s of thousands on it, and 10+ years building it. Then I’ll come along and hit it a few times with a wrecking ball. Then I’ll have some boot-licking supporters of mine come over to tell you to stop complaining about all the damage because other people would love to have your garage just as I left it.

I guess you’d think that makes perfect sense wouldn’t you?

#240 IHCTD9 on 02.09.17 at 10:34 am

#234 Pepito on 02.09.17 at 10:03 am

Prove it. Show evidence with references otherwise it’s just more of the same old worn, trickledown, job creators bs.
__________________________________________

Prove it’s not. Just because your politics came from outer space does not mean anyone here has to prove JACK to you.

#241 For those about to flop... on 02.09.17 at 10:40 am

Here’s one for the daytime crew.

The worlds most valuable brands by country in 2017…

M42BC

“The world has a new top brand. As recently reported by Fortune, Google has taken over the top spot from Apple. The search-engine-based tech giant saw its value increase by 24% last year, to $109.5 billion. But Google won out mainly because Apple’s fall was even more dramatic. The iPhone company saw its value drop by 26%, to $107.1 billion. Amazon, the world’s third-most valuable brand, is not far behind, at $106.4 billion.”

https://howmuch.net

#242 IHCTD9 on 02.09.17 at 11:03 am

#230 Atrate on 02.09.17 at 9:36 am
@ #1 cecilhenry

Your post echoes everything that I am feeling about our present system of government, both federal and provincial.
__________________________________________

There are a few options – you can leave as you said. That’s a great option for those who are retired with no kids.

You can also modify your consumption and revenue arrangements to offset whatever they end up taking.

If you can retire early and still make ends meet somehow, that is also an option. I hope to do this.

For now, I’m stuck here and still working, so option B is for me. When you really put your mind to swinging the machete, there is a lot that can be done, but living rural helps a ton when doing this sort of thing.

If you’re a single middle class urban dweller that still needs to work and save, you pretty much don’t have B/C for an option, it’ll have to be leave or keep taking it on the chin.

#243 I'm stupid on 02.09.17 at 11:12 am

All new taxes should be apposed. Income tax was supposed to be temporary but the government got accustomed to all the new revenue and it became permanent. I hate politics because it manipulates people to fight among one another. Get one group to hate another and pass legislation to favour the majority all the while creating over lords that eat, drink and never have to worry about the pay cheque.

#244 Doug in London on 02.09.17 at 11:13 am

Personally I have mixed feelings about increasing the tax rate on capital gains. Being one who tries to buy low and sell high (with some success) this proposed change will hit me in the pocketbook so I’m not looking forward to it at all. On the other hand, I’m surprised it got dropped all the way from 75% to 50% (in steps) back in 2000 and has stayed this way for so long. I also find it odd that if I get up off my ass and get up early, fight traffic especially in winter weather, then deal with unpleasant bosses or coworkers and actually EARN money that I am taxed at 100%. Conversely if I sit back, doing nothing and making capital gains I get taxed at only 50%.

As governments keep running deficits and are looking for new sources of revenue, I wouldn’t be too surprised to see this increase in capital gains occur. The good news, no capital gains are taxed in your TFSA. Have you maximised your TFSA contributions?

#245 The Buffett Rule on 02.09.17 at 11:21 am

“The Buffett Rule [was] part of a tax plan proposed by President Barack Obama in 2011 [but defeated by Congress]. The tax plan would [have] appl[ied] a minimum tax rate of 30 percent on individuals making more than one million dollars a year. According to a White House official, the new tax rate would [have] directly affect[ed] 0.3 percent of taxpayers.” – Wikipedia

“Warren Buffett is fond of saying his tax rate is lower than his secretary’s. He does not publicize his tax returns, but, for the tax year 2010, he paid $6.9 million on taxable income of $39.8 million, according to partial disclosures he made in 2011.” – Morris Propp

“Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent. If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.” – Warren Buffett

See the link below for an eye-opening article by Warren Buffett about the mega-rich and their extraordinary tax breaks.

http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html

#246 Gonkman on 02.09.17 at 11:25 am

The new way of life under Turdo…

Options
1. High Income = More Taxes
2. Middle Income = Either become High income and we will tax you more or become low income and we will give you handouts because the rich are greedy.
3. Low Income = Less Taxes and More Social Handouts

Currently I am an Upper #2. But…. I plan on retiring in 5 years @ 49 debt free and mortgage paid.

I will be switching to Option #3 using every tax break I can get. I never really wanted to be rich and the Middle is becoming a non-viable option anymore.

I look forward to a comfortable retirement (60% of current income) and paying one third of the taxes I currently pay. I will not miss the 40% reduction in income because I currently save/invest 40% of our income.

Why would I keep working for 100% income and pay 3X the taxes. Striving for option #1 in this country is now deemed EVIL and GREEDY and you must pay for your greediness. What a crock of SHITE.

It will be so much easier in a few years to blame the rich and spend their taxes in Liberal handouts. I still wont vote Liberal though.

If you can not beat em.. join em.

#247 Damifino on 02.09.17 at 11:37 am

#221 A Dollar is a Dollar is a Dollar

…you presume that there is no risk involved in honestly earning a dollar. LOL! (Ever heard of coal miners, truck drivers, cops, nurses, our military service women and men, small shop owners, etc…etc….etc…?)
———————————————

Wow, you sure told me.

But, I agree with you in the case of the small shop owner and the truck driver provided he (or she) has risked capital buying their own premises or vehicle.

In those cases, if their business grows through their own hard efforts (plus, now listen carefully here, capital risk taking) then it’s no crime for them to enjoy a tax advantage when they realize that growth because they were bold enough to put up their own money (and risk losing it all) in the first place.

Coal miners, cops, nurses, and our military service women and men are all fine people no doubt, but they’re employed because someone else invested capital (or tax money) in the enterprises at which they work.

Do I need to get out some hand puppets?

#248 Rexx Rock on 02.09.17 at 11:40 am

Tsx ,stock market up huge,cad from 69 cents to 76 cents,house prices up huge and strong job growth wages up.A barometer of a strong economy but can change very drastically on Trumps border tax,tax cuts and higher interest rates down south.So bragging rights for Canadians may soon come to a end.

#249 Looney Baloney on 02.09.17 at 11:49 am

#83 White Privilege on 02.08.17 at 7:48 pm

Good for you. I’m not quite there yet, but fervently working away towards that goal. Here’s my theme song until then:

https://www.youtube.com/watch?v=LUpBSvN1a50

#250 Looney Baloney on 02.09.17 at 11:53 am

#94 Economystical

So what happens when everyone decides they’ll simply steal someone else’s lunch, and nobody brings any lunch? Do they simply take a bite out of each other? Hey having a think skin and being a hard ass might finally pay off for me!

#251 not 1st on 02.09.17 at 12:04 pm

Maybe Garth can finally see how a guy like Trump gets traction. People just get so fed up they decide to go for the nuclear option and watch it burn down.

Canada is next in line. OLeary on tap.

#252 James on 02.09.17 at 12:10 pm

President Trump’s official counselor, Kellyanne Conway, may have broken a key ethics rule Thursday morning when she told TV audiences to “go buy Ivanka’s stuff.”
Federal employees are banned from using their public office to endorse products, regulations state.
Conway, speaking to “Fox & Friends” viewers from the White House briefing room, was responding to boycotts of Ivanka Trump merchandise and Nordstrom’s discontinuation of stocking her clothes and shoe lines, which the retailer said was in response to low sales and which Trump assailed as unfair.

“I’m going to give it a free commercial here,” Conway said of the president’s daughter’s merchandise brand. “Go buy it today.”

#253 Doe on 02.09.17 at 12:13 pm

Great post and big implications!

Pardon my ignorance, but for a person or couple who aren’t working, and live only on withdrawals from their investment portfolio each year, is their income considered to be 0, or the amount that they withdraw from their portfolio per year? If the former, then would they pay no tax at all?

Second, for couples, on a jointly held investment account, what marginal tax rate would be used – that of the higher earning partner, an average of the two?

#254 westcdn on 02.09.17 at 12:15 pm

I got my first utility bill and there was the carbon tax on heating gas. It was only for 12 days and I know it will double in a few years. I figure about $30/month on average in 2019 never mind the 5 cents per liter of liquid fuel and the cost business passing on their share through higher retail prices. It annoys me that the former guy in my basement gets a $400 annual rebate and his daughter receives $1,600/month of tax free child tax benefits plus the carbon tax rebate even though they all live in the same house he bought with cash.

If the daughter gets ambitious and gets a part time job at minimum wage of $15/hour, say 25 hours a week, she would effectively earn $30/per hour will little income tax. Child care would be minimal as the former guy in the basement works part time as well as the hubby. It is not a lifestyle I aspire to but I resent paying for it. Don’t get started on universal basic income. Ethics before money – it is hard to keep the course.

#71 InvestorsFriend on 02.08.17 at 7:39 pm – My Take on The Capital Gains Tax Argument
I disagree overall. We obviously don’t see eye to eye on fair taxable capital net gains but we do agree it should be taxable. Remember that net capital losses are not deductible against other income streams.

#255 Bond Junkie on 02.09.17 at 12:16 pm

OCTOBER 2019 cannot come soon enough. And Garth you still have a full two years before you’d actually have to start campaigning, it would be a cake walk. Something to consider n’est pas? You can’t possibly be comfortable with direction this country is heading on MULTIPLE policy fronts, not just taxation. I’ve kept quiet on my on this topic for some time, Ontario hike, FINE, new 35% federal bracket, FINE, tax my income propery, FINE, but man if they raise capital gains taxes I’ve truly had it with pretty boy and co. Like truly fcking tipping point outraged.

You know, maybe instead of wasting our time voicing concerns to our local court jesters (otherwise known as MPs), let’s just go straight to Bill Morneaus house? How does that sound guys? He lives in Bennington Heights, in a $5mm place just off of Bayview and Nesbitt, not really hard to find. But he’s the common man’s man right? Fighting the good fight for the little people right? Why don’t we do things the old fashioned way and just take our issues right to to his front door. I might pack a few eggs and rotten tomatoes also just in case he’s hungry.

-Bj

#256 Self Directed on 02.09.17 at 12:55 pm

It’s disgusting what the Canadian government is doing for Middle class ‘retirement’.

DB Pensions – almost non-existent. If you have one, consider yourself lucky

DC Pensions – Employer matched, but very high MER’s imposed by 3rd party Investment firm. (great deal for them, not for you).

OAS and CPP- Shrinking or getting clawed back

—————————————————————–
More of your retirement income ($372.5M)
is going to fund these guys retirement nest egg.

Check out their faces.. they are sleeping on a bed of your money…. thanks to another handout, this time from Trudeau.

The Canadian government message is very clear to me now – “We do not want you to retire. Just keep working and paying taxes until you die.”

We are not people.. we are RGU’s (revenue generating units). Maybe we are living in the Matrix. I do feel like the life is getting sucked from out of me.

The Solution: Take good care of yourself. Exercise. Eat healthy. Quit drinking. Quit Smoking. Stay out of the hospital and keep working. Your only way out is to stay in the system as long as you can.

Next election…I’m voting for Garth. (all he has to do now is run).

#257 Jessica on 02.09.17 at 12:56 pm

#202 Adam -amen.

The problem in NA is we have no class consciousness. Blue collar deplorables and blue collar immigrants and blue collar socialists all benefit equally from progressive taxation and income redistribution.

The white collar middle class are far from rich. So they earn a quarter mill a year? Pennies, really. They’re practically in the same class as the blue collar = all working stiffs.

Same for small business owners, working 90 hour weeks to make a go of it.

Without class consciousness, people who make a living by earning a salary vote for or against gun laws or immigration or something else they get worked up about rather than for economic strategies that will benefit them directly because they don’t understand that their interests are different than the economic elite who own the media and lobbying groups.

I am very much for increasing the tax on capital gains and redistributing that in terms of the GIS, child benefits, welfare, refugee settlement, etc. because all those things directly benefit my economic class, which includes most working stiffs, including those with an advanced educations.

Without road pavers doctors can’t drive to their hospitals and without hospitals there would be fewer road pavers. All work, paid or unpaid, contributes to our shared economy.

That does not negate in any way the value businesses contribute and the way their management and board of directors advance our economy and society.

It’s to say that voting for reduced taxation when you are a working stiff or small business owner is absurd as what possible benefit can reducing the benefits of progressive taxation and redistribution have to you and others in your family and neighbourhood?

It doesn’t matter if you’re a racist, sexist “deplorable” or
immigrant/earth/equality loving “snowflake” so much as it matters what economic class you find yourself in.

That is, if you want to vote strictly on what’s best for #1.

Of course values matter, too, but don’t think for one minute that there isn’t an advantage to the 1%ers (and here I’m talking wealth not salary, which are entirely different things) in pitting the lower classes against each other to create an ideological divide that aligns those votes with the 1% interest, instead of there own.

It’s not a Marxist or socialist point to make that people fall into different classes. It’s very the foundation for the ideological divides of our modern democratic political systems that first came into being in France with the beheading of the aristocracy.

From The Web of Government (1947): “The right is always the party sector associated with the interests of the upper or dominant classes, the left the sector expressive of the lower economic or social classes, and the centre that of the middle classes. Historically this criterion seems acceptable. The conservative right has defended entrenched prerogatives, privileges and powers; the left has attacked them. The right has been more favorable to the aristocratic position, to the hierarchy of birth or of wealth; the left has fought for the equalization of advantage or of opportunity, for the claims of the less advantaged.”

Some people complain that this housing blog is turning political, but economics are always political.

However, the term deplorable is not the opposite of wealthy. It is a term for uneducated, sexist racists who want to blame immigrants, Muslims, blacks and Latinos for their misfortune of not being in a better-off economic class.

Please don’t apply that term as a blanket for everyone in the lower working class. There are a lot of progressives in that class, too, out in the streets in pink hats.

To sum up, don’t forget what class you’re in before falling into line like bleating sheep to criticize T2 and Tom Mulcair.

#258 Gonkman on 02.09.17 at 1:18 pm

#240 IHCTD9 on 02.09.17 at 11:03 am

You can also modify your consumption and revenue arrangements to offset whatever they end up taking.

If you can retire early and still make ends meet somehow, that is also an option. I hope to do this.

For now, I’m stuck here and still working, so option B is for me. When you really put your mind to swinging the machete, there is a lot that can be done, but living rural helps a ton when doing this sort of thing.
__________________________________________

THIS!

Plan ahead people… as far as you can.

I have been planning for years. Adapt your plan as the rules change.

“But I don’t have time”
“I won’t ever retire”
“Saving is Hard”

Excuses are easy… don’t keep making them for yourself.

Otherwise you are just another Average Joe blaming everyone for your own failings and life coices.

Don’t be an average Joe.

#259 Jessica on 02.09.17 at 1:21 pm

Oh, and for those suggesting that we increase sales tax to reduce income tax, understand that that is a direct tax on the working poor and unemployed poor. The more money you have, the less total % of your money you need to spend on basic consumptive needs, whereas those struggling to make ends meet spend a much higher % of their money on goods and services. Higher sales taxes and lower income taxes are a gift to the wealthy.

#260 Pepito on 02.09.17 at 1:42 pm

#222 pBrasseur on 02.09.17 at 8:22 am
@#217 Two Economists

Taxing capital gains does two very nasty things :

1) It scares away investors.

2) It immobilizes capital, that is people will refrain from selling and buying new stuff to avoid triggering a taxable gain.

Both extremely bad for the economy!
************************************
#238 IHCTD9 on 02.09.17 at 10:34 am
#234 Pepito on 02.09.17 at 10:03 am

Prove it. Show evidence with references otherwise it’s just more of the same old worn, trickledown, job creators bs.
__________________________________________

Prove it’s not. Just because your politics came from outer space does not mean anyone here has to prove JACK to you.
***************************************

It has already been proven here by Tony’s comment #109 who stated ( correctly I presume) that from 1988 until 2000 Capital inclusion rates were between 66-75%

How did the TSX and the Canadian economy do during that time? Did investors stop investing or flock south? Did the economy collapse because investors were afraid to cash in their capital gains?

Get a grip on that self righteous greed.

#261 Kevin's Fanzone on 02.09.17 at 1:51 pm

DELETED

#262 tkid on 02.09.17 at 1:58 pm

#249, the bank sends me tax statements every year similar to a T4. It says I had X interest paid that year, Y capital gains, etc (it doesn’t use terms that clear tho’). I plug the numbers into the tax return and hopefully don’t end up owing too much.

Anything that gets hauled out of the RRSP gets taxed. I think the bank claw back 1/4 of that for taxes, but you may owe more depending how much you take out of the RRSP. I’d imagine another tax statement gets mailed out by the bank for RRSP withdrawals, and you plug that into the tax return.

Don’t really believe it’ll work out to zero tho’.

There are income tax calculators for Fed+Provincial taxes owed on the web. Google ’em for plug and play numbers.

#263 Garth for PM...NDP on 02.09.17 at 2:00 pm

Garth,

Do all Canadians a solid and run/win the PM spot. Run as the leader of the NDP and bring back the meaning of “New Democrat” in NDP. Don’t forget to kick out all the bleeding heart MPs in the party when you get there.

Some platforms you can run on which should tap on the majority of Canadians.

1. Mandatory 5 yr prison for anyone caught with a unlicensed gun. Crimes committed with gun? 5 + crime time. This should give the homeboys in Scarborough something to think about.

2. Decriminalize all drugs, stop taxing beer and cigarettes. Anyone who wants to ruin their lives taking this stuff should be allowed to. When they get sick or start dying…just dont expect the health system to bail them out. Puts out all the criminals banking on drugs and the like. Feel sorry for them? Read platform #3.

3. Basic income. Everyone over 18 and under 65 should get $18,000 a year for free as long as their last year’s income is under $150K. Makes it fair for working stiffs to get a little ahead versus the freeloading welfare bums. $18,000K a year not enough for you? Then get a job to add to it. This helps companies lessen their wages & fringe line as a $90K year job, they would only have to pay $72K. No more contributions to CPP or OAS or EI. Where is the money to give everyone $18K a year? From savings in health care expenses, government payouts, more businesses coming into Canada.

You can’t possibly screw the country up more than it is currently going.

#264 You Didn't Build That! on 02.09.17 at 2:03 pm

#255 Jessica on 02.09.17 at 12:56 pm

#202 Adam -amen.

I am very much for increasing the tax on capital gains and redistributing that in terms of the GIS, child benefits, welfare, refugee settlement, etc. because all those things directly benefit my economic class, which includes most working stiffs, including those with an advanced educations.

Without road pavers doctors can’t drive to their hospitals and without hospitals…
————–

Obama: If You’ve Got a Business, You Didn’t Build That!

https://www.youtube.com/watch?v=6j8XhQfvpW8

#265 Kevin's Fanzone on 02.09.17 at 2:06 pm

#259 Kevin’s Fanzone on 02.09.17 at 1:51 pm
DELETED

Picky much? Lots of similar comments and links here.

This blog is not here to give you free ad space for your guy. — Garth

#266 Old gringo on 02.09.17 at 2:21 pm

Having Donald Trump as POTUS, is like giving
an AK40 to a monkey, and thinking nothing bad
can happen

#267 IHCTD9 on 02.09.17 at 2:31 pm

#255 Jessica on 02.09.17 at 12:56 pm
_____________________________

If T2 goes + on the CG inclusion, a big fat slice of that revenue will go to reinforcing the public service’s wages, benefits and DB pensions. Whatever pennies are left someday may benefit GIS recipients. How many times have we learned funds expropriated from the tax slaves wallets for another swing at Utopia ended up utilized for a much less glorious purpose?

Be skeptical: Look at Ontario’s debt service costs. They’re virtually tied for second highest of all budget line items. Think twice: the sunshine list details thousands upon thousands of public servants who make upwards of 350%+ more than the median individual income in Canada. Keep your mind clear of distractions, you know we’re broke and about to get more broke. Any thoughts that new revenues will be substantially tasked with progressive social justice concerns is a joke.

You can’t trust what Trudeau says as he’s breaking one promise after another.

Taxation to kill off debt, interest, deficit, or to fatten the trough feeders is not progressive by any definition.

#268 IHCTD9 on 02.09.17 at 2:36 pm

#258 Pepito on 02.09.17 at 1:42 pm
#222 pBrasseur on 02.09.17 at 8:22 am
@#217 Two Economists

Taxing capital gains does two very nasty things :

1) It scares away investors.

2) It immobilizes capital, that is people will refrain from selling and buying new stuff to avoid triggering a taxable gain.

Both extremely bad for the economy!
************************************
#238 IHCTD9 on 02.09.17 at 10:34 am
#234 Pepito on 02.09.17 at 10:03 am

Prove it. Show evidence with references otherwise it’s just more of the same old worn, trickledown, job creators bs.
__________________________________________

Prove it’s not. Just because your politics came from outer space does not mean anyone here has to prove JACK to you.
***************************************

It has already been proven here by Tony’s comment #109 who stated ( correctly I presume)…

______________________________

Wow, now THAT is lazy with the afterburner lit.

If you can’t be bothered to form a coherent assertion without dragging in third party information on the assumption that it is correct, then I will keep throwing knives at you…

#269 Basic income for all on 02.09.17 at 2:37 pm

Basic income. Everyone over 18 and under 65 should get $150,000 a year for free as long as their last year’s income is under $150K.

The first $150k you earn will cancel out the Basic Income, but if you make more than $150K, you get to keep the difference.

Where will we get the money? We’ll raise taxes on those earning over $150K starting at 75%, and the top tax bracket for those earning over 500K will be 95%. We can print the rest.

Everyone deserves a living wage, and with houses as expensive as they are, this is the only solution.

#270 All capital gains should be evenly redistributed on 02.09.17 at 2:49 pm

Tax all capital gains at 110% and redistribute it evenly to all those who are over 18 and under 65 who earn less than $150k/year.

The wealthy can afford to pay their fair share, because without working stiffs like road pavers, the wealthy wouldn’t be able to drive to their country clubs.

GreaterFool, Pravda edition. — Garth

#271 IHCTD9 on 02.09.17 at 2:56 pm

#256 Gonkman on 02.09.17 at 1:18 pm
THIS!

Plan ahead people… as far as you can.

I have been planning for years. Adapt your plan as the rules change.

“But I don’t have time”
“I won’t ever retire”
“Saving is Hard”

Excuses are easy… don’t keep making them for yourself.

Otherwise you are just another Average Joe blaming everyone for your own failings and life coices.

Don’t be an average Joe.
__________________________________________

Good man, I’m only beginning as I made the call on T2 just last year. But things are rolling along. Once consumption and income modifications have been achieved, then planning to exit the workforce early comes next. The effort will exceed Trudeau’s mandate, but I won’t let off now no matter who gets in. The destruction heaped upon Canada’s finances after T2 is finished will be utterly complete, and will take an act of divine intervention to fix. The sooner I can retire, the less flesh they will be able to carve off my back.

The budget hasn’t balanced itself (LOL!). Welcome to the real world Justin, you’re finally getting your first taste.

#272 Reply to #222, #234, #238, #258, #266 on 02.09.17 at 2:56 pm

Did anyone read the article?

#273 Wrk.dover on 02.09.17 at 3:04 pm

245 Damifino on 02.09.17 at 11:37 am
#221 A Dollar is a Dollar is a Dollar

…you presume that there is no risk involved in honestly earning a dollar. LOL! (Ever heard of coal miners, truck drivers, cops, nurses, our military service women and men, small shop owners, etc…etc….etc…?)
———————————————

Wow, you sure told me.

But, I agree with you in the case of the small shop owner and the truck driver provided he (or she) has risked capital buying their own premises or vehicle.

In those cases, if their business grows through their own hard efforts (plus, now listen carefully here, capital risk taking) then it’s no crime for them to enjoy a tax advantage when they realize that growth because they were bold enough to put up their own money (and risk losing it all) in the first place.

Coal miners, cops, nurses, and our military service women and men are all fine people no doubt, but they’re employed because someone else invested capital (or tax money) in the enterprises at which they work.

Do I need to get out some hand puppets?

—————————————————-

Trucks crash and burn, then the drivers personal insurance goes up.

Cops get shot in the face, or just get screwed looking at carnage.

Coal miners get black lungs if they don’t explode first.

People standing on concrete 40 hrs/week have foot and knee problems eventually.

Cabinet makers have lungs full of dust, and some species of wood are pretty nasty with tanins and things.

Fishermen drown.

I could go on all day because I was Wrk.dover for chump pay until I saw the light, and know the perils of earning wages.

Meantime the pasty folk that get paid in large multiples of these jobs just have to worry about fat getting into their blood stream from their fat asses.

That is the risk factor that you failed to see in $ $ post.

#274 Housing price controls on 02.09.17 at 3:10 pm

All housing prices should be set at a specific price, according to the square footage, location and number of bedrooms.

Location: House prices would vary by location, set on a percentage basis according to the average wages of that particular area.

House purchases would be approved based on need. For example, families with at least 2 children would be eligible to purchase a 3 bedroom house.

This would eliminate run away house prices that have locked out the young, lower income, and single mother families from the housing market, and would eliminate greedy speculators from driving home prices up.

If there is a housing shortage in a specific area, purchases would be awarded to eligible families based on a lottery system until the builders can be forced to bring new supply online.

#275 Kevin's Fanzone on 02.09.17 at 3:11 pm

#263 Kevin’s Fanzone on 02.09.17 at 2:06 pm
#259 Kevin’s Fanzone on 02.09.17 at 1:51 pm
DELETED

Picky much? Lots of similar comments and links here.

This blog is not here to give you free ad space for your guy. — Garth

___

So only BASHERS of Trump and Kevin can post? That’s pretty douchey….

No, douchey is throwing you off my blog. Which just happened. — Garth

#276 Metaxa on 02.09.17 at 3:12 pm

I’m buying anybody who makes laxatives and antidepressants.

From the sounds of it on here sales will be going through the roof!

And Jessica, this old school Progressive Conservative is in love. A little bit anyway. Thanks for taking the time on that, it needs to be repeated and often.

Almost all the rest of you…how can you ever again accuse the liberals or Liberals or snowflakes or SJW’s of whinging after this display of stamp my feet, hold my breath and bellyache?

#277 Dups on 02.09.17 at 3:12 pm

I wonder if all Canadians got paid the same $ no matter if they worked or not, from 1% to the rest. How much would they make per year? Total Income / 35 million people?

#278 pBrasseur on 02.09.17 at 3:18 pm

#265 IHCTD9 – You can’t trust what Trudeau says as he’s breaking one promise after another.

He’s honoring an age old tradition in the Liberal party…

#279 Joe Schmoe on 02.09.17 at 3:22 pm

Interesting.

Apparently the economy is doing so well we are taking out incentives for investment.

This government does not get it. Get your spending in line before increasing taxes.

The youngn’s should be careful on what they wish for…they are losing all mechanisms to accumulate wealth.

Sitting in the US right now talking taxes…we pay double on average in Canada for the equivalent of $4000/year in health care.

#280 Victor V on 02.09.17 at 3:42 pm

Terence Corcoran: Now up to $50 billion, Canada’s green electricity bailouts make the Bombardier giveaway look like peanuts

http://business.financialpost.com/fp-comment/terence-corcoran-now-up-to-50-billion-canadas-green-electricity-bailouts-make-the-bombardier-giveaway-look-like-peanuts

#281 jess on 02.09.17 at 3:53 pm

5 February 2017 • 11:36p

Credit guarantees worth hundreds of millions of pounds given to Rolls-Royce by the government to help it win export deals are being investigated to see whether the engineering giant obtained them fraudulently.

Civil servants are examining support given by UK Export Finance to (UKEF) the company to help it land foreign sales, after Rolls last month admitted using bribes to seal overseas contracts.
The company has struck a “deferred prosecution agreement” (DPA) with Britain’s Serious Fraud Office (SFO) in which Rolls will pay £497m plus interest and costs to settle the claims that the regulator has been investigating since 2012.

Investigators are understood to have been examining claims that Rolls paid millions of pounds in bribes – or used middlemen to pay them – to win civil and military deals in about a dozen countries.
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Two-thirds of DoD’s total spend with UK companies went to BAE Systems
ROLLS-ROYCE GROUP $3.9bn
https://www.thebureauinvestigates.com/2016/10/06/revealed-british-firms-paid-60-billion-obamas-pentagon/

#282 jess on 02.09.17 at 3:58 pm

#278 Victor V on 02.09.17 at 3:42 pm

check out california

Californians are paying billions for power they don’t need

“We’re using less electricity. Some power plants have even shut down. So why do state officials keep approving new ones?

http://www.latimes.com/projects/la-fi-electricity-capacity/

At its 2001 launch, the Sutter Energy Center was hailed as the nation’s cleanest power plant. It generated electricity while using less water and natural gas than older designs.

A year ago, however, the $300-million plant closed indefinitely, just 15 years into an expected 30- to 40-year lifespan. The power it produces is no longer needed — in large part because state regulators approved the construction of a plant just 40 miles away in Colusa that opened in 2010.

natural gas plants once heralded as the saviors of California’s energy troubles have found themselves victims of the power glut. customers aren’t aware that too much capacity means higher rates.
The state went from having too little to having way too much power.
guaranteed a rate of return of about 10.5% for the cost of each new plant regardless of need.
http://www.latimes.com/projects/la-fi-electricity-capacity/#nt=notification
====================================
2016
I am gratified that the court upheld FERC’s determination that large energy companies, such as Shell, manipulated California’s energy markets during the 2000-2001 energy crisis, leading to blackouts and exorbitant prices for the customers of California’s investor-owned utilities,” state Atty. Gen. Kamala Harris said in a statement.
http://www.latimes.com/business/la-fi-energy-crisis-ruling-20160908-snap-story.html

2013
http://www.vancouversun.com/business/judge+rules+against+Hydro+billion+dollar+California+energy+dispute+with+video/7996973/story.html

kilowatt washing.
http://www.courthousenews.com/2016/09/09/9th-circ-rejects-big-energys-overcharges.htm

#283 eddy on 02.09.17 at 3:58 pm

The perfect entertainment for the next Conservative convention:
Kid Creole and the Coconuts

Gina Gina, he’s just a Ski instructor

https://www.youtube.com/watch?v=bi1ISPKADuk

#284 NoName on 02.09.17 at 4:23 pm

interesting read

The Weird World Of Expensive Wine

https://fivethirtyeight.com/features/the-weird-world-of-expensive-wine/

france vino in decent and australian vino in ascent

https://espnfivethirtyeight.files.wordpress.com/2016/06/roeder-wine-4.png?quality=90&strip=all&w=1150&ssl=1

#285 Smartalox on 02.09.17 at 4:31 pm

Jessica,

Instead of being so absolutist in your demands (abolish this! Tax that!) you might want to consider adjusting the current rules to accomplish the same goals:

– Sure, sales taxes have the potential to consume a disproportionate share of income from lower-income from lower income earners, compared to the wealthy. So why not increase refund rates, contingent on income? GST, PST and HST rebates are too low, and the cutoffs are probably too low as well; but those that can afford greater expenditure still pay more in tax, as sales taxes. Of course, low income earners that use credit to purchase ‘luxury’ items will see less benefit from this sort of system.

– Income tax reductions have a very real effect on cash flows, since taxes on salaries are usually deducted at source. Similarly, increasing personal exemptions, and raising marginal thresholds shift the tax burden upscale, helping lower income earners first, and most.

– sales taxes can also be an incentive to businesses, if they are treated as true ‘value added’ taxes, and producers are able to claim input credits for the taxes that they pay on raw materials that they use to make their products. Without this, sales taxes are inflationary, as producers price finished goods to recoup the costs of ingredients, taxes paid, and their refinement. Then taxes are charged on top of all of that. The government reaps the reward at every transaction, increasing the costs for businesses, as well as potentially preventing sales due to higher prices. Pay taxes only on the values added, and base prices fall (or profits and wages grow) – again, direct benefits to consumers, with gains felt most at the lowest incomes.

#286 Unrealized Capital Gains on 02.09.17 at 4:50 pm

Has anyone mentioned that unrealized capital gains are not taxable?

Consider deferring sales of capital assets (if prudent) to years with lower tax rates on capital gains.

#287 jess on 02.09.17 at 4:52 pm

according to the new census:

2006 -2011 2011-2016
waterloo region 535 154 507 096 -28 058
kitchener 233 222 219 153 -14069
waterloo 104 986 98 780 -6206
cambridge 129 920 126 748 – 3172 (51 505)

http://www.waterloochronicle.ca/news-story/7102082-rental-carnage-feared-as-waterloo-overflows-with-student-beds/

http://ottawacitizen.com/news/local-news/what-is-rental-licensing-and-what-does-it-mean-for-students

#288 Tater on 02.09.17 at 5:18 pm

#266 IHCTD9 on 02.09.17 at 2:36 pm
#258 Pepito on 02.09.17 at 1:42 pm
#222 pBrasseur on 02.09.17 at 8:22 am
@#217 Two Economists

Taxing capital gains does two very nasty things :

1) It scares away investors.

2) It immobilizes capital, that is people will refrain from selling and buying new stuff to avoid triggering a taxable gain.

Both extremely bad for the economy!
************************************
#238 IHCTD9 on 02.09.17 at 10:34 am
#234 Pepito on 02.09.17 at 10:03 am

Prove it. Show evidence with references otherwise it’s just more of the same old worn, trickledown, job creators bs.
__________________________________________

Prove it’s not. Just because your politics came from outer space does not mean anyone here has to prove JACK to you.
***************************************

It has already been proven here by Tony’s comment #109 who stated ( correctly I presume)…

______________________________

Wow, now THAT is lazy with the afterburner lit.

If you can’t be bothered to form a coherent assertion without dragging in third party information on the assumption that it is correct, then I will keep throwing knives at you…
++++++++++++++++++++++++++++++++++++
http://business.financialpost.com/personal-finance/how-to-calculate-your-capital-gains-tax-or-not

#289 Sanctuary Canada on 02.09.17 at 5:20 pm

Capital gains inclusion needs to be increased to pay for how we define ourselves as Canadians.

CBC just had a press conference that Undocumented Entrants rate of entry into Canada from the USA will hit 1000/day over the summer months. Potentially a million refugees.

Trudeau needs to put in an amnesty program for all undocumented entrants that enter in 2017. Give them Permanent Residency and let them work towards Citizenship.

Have a 60 day window for each country, process PR at the border. This would save huge amounts of money by bypassing the refugee system.

#290 The Technical Analyst, CSTA, CPD on 02.09.17 at 5:27 pm

#285 jess – according to the new census”

Yes, it’s an absolute disaster here in Kitchener/Waterloo with landlords, too much inventory. Loads of incentives (I posted here 3 weeks ago) like up to 3 months free rent, free utilities and free TV/internet too!

Our buildings landlord just hand-delivered a $250 bonus if you refer someone to live here.

Good times for renters, not so good for owners.

http://www.waterloochronicle.ca/news-story/7102082-rental-carnage-feared-as-waterloo-overflows-with-student-beds/

#291 Reply to #257 on 02.09.17 at 5:54 pm

Jessica, here is a list of GST/HST zero-rated supplies:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/zrrtd-eng.html

And here is a list of GST/HST exempt supplies:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/xmptgds-eng.html

#292 Kevin's Fanzone on 02.09.17 at 6:04 pm

DELETED & BANNED

#293 Alice on 02.09.17 at 6:07 pm

Absolute horse crap if this rumor is true. They’ll adjust capital gains, then people will start offshoring capital.

#294 Addendum to #257 on 02.09.17 at 6:10 pm

Jessica, I forgot to mention that there’s a GST/HST credit, a tax-free quarterly payment helping individuals and families with low or modest incomes to offset all or part of the GST or HST that they pay (see link below).

http://www.cra-arc.gc.ca/bnfts/gsthst/menu-eng.html

#295 BC & taxes on 02.09.17 at 6:37 pm

further up someone posted this:

Just that week, he was outed on the B.C. Sunshine list–government employees who make over $100K, annually.

He clocked in at over $500K+! For being a friggin’ principal.

******

everyone with kids needs to realize that the only jobs worth fighting for in Canada are the .gov jobs

train your kids to either work for the legalized mafia or leave the communist country

the world is full of greener pastures for entrepreneurs and individualists…

… just not in communist Canada

#296 Jessica on 02.09.17 at 7:56 pm

Re: sales tax comments.

I was responding to comments saying to increase them. I have no problem with them as is. As an accountant I’m well aware of the credits. That doesn’t negate the fact that sales tax hit lower income people at a much higher rate than high income, as a percentage of total income.

#297 davikk on 02.10.17 at 5:03 am

Lessons To Learn From The Vancouver Housing Bubble
http://investmentwatchblog.com/lessons-to-learn-from-the-vancouver-housing-bubble/

#298 Rexx Rock on 02.10.17 at 1:41 pm

Canadians also need to give thanks to Mr.Poloz the BOC.He’s done a great job of devaluing our currency and inflating the housing bubble.No need to save just speculate and also inflation going up huge from his policies.

#299 yupkime on 02.10.17 at 10:38 pm

Great find! Good for alot of laughs!

20234 Lorne Avenue, Maple Ridge

Oct 15:$649,999
Feb 8: $888,888
Change: 238889.00 37%

#147 rainclouds on 02.08.17 at 9:57 pm

Looks more like blood spatter than pink snow, price reductions everywhere on GVR

http://www.myrealtycheck.ca/