Puppynomics

A year ago the feds had a skinny budget surplus of a billion. This year they’ve managed to spend $13 billion more than they collect. And that’s despite a multi-billion haul from the new soak-the-rich tax bracket.

But this is just the start. The new deficit is forecast to be over $25 billion, followed by one of at least $28 billion. The Finance Department estimates Canada could be in the red until the year 2051, when this blog celebrates its 43rd birthday and I’m a pissy 102-year-old. Of course, it gets worse when interest rates start to normalize, since we already have a debt exceeding $700 billion that must be financed. Over the four years of T2 governance, that debt should swell by about $100 billion.

So what?

Politicians who spend a lot, tax a lot. You’re about to see what this means. It could be quite a shocker after we kicked out a government that actually reduced the GST. For that, apparently, we can partially blame 3.5 million new voters who flocked to the young Trudeau. Nice hair, tats, weed, hot wife, selfies, shirtless boxing dude celebrity – how could he not win over a boring old guy with a plastic head and Boomer paunch, who likes cats?

Ironically, while most of the world seems to be on an anti-government populist tangent, young voters in Canada embraced more government as the solution to their needy shortcomings. This is expensive, as we shall all discover. Thinking the rich can foot the bill is folly.

Nonetheless, it’s looking more and more like this is exactly what the federal Liberals will be doing. The new uber-tax bracket is already in place. The TFSA contribution limit was gelded to keep the wealthy from benefiting. Now we can expect a Doctor Tax taking aim at small business corporations. Perhaps a hack out of the dividend tax credit, whacking seniors who are GIC refugees. Plus the idea we’ve been punting of a house tax. Yes, and a jump in the capital gains tax.

The chorus is rising on this one. Gluskin Sheff chief economist and Bay Street smart guy David Rosenberg this week all but promised his firm’s clients they’ll soon get a hosing. The capital gains inclusion rate, now 50%, will rise to 75%, he says – which means taxes on increases in the value of rental condos, mutual funds, stocks, ETFs and more will jump by half.

Example. An investment property sold today for a $100,000 profit would have half that taxed at the seller’s marginal rate. So a rich dude earning $225,000, now with a 53.5% marginal tax rate, would pay $26,750 in capital gains tax. But with a 75% inclusion rate, the bill rises to $40,125. That’s a hike of 50%. Bummer.

This is exactly the opposite direction to that in which the US is moving – where the Trumpster promises a massive tax decrease for the middle class, and an epic drop in corporate tax (from 35% to just 15%). Says Rosy: “The implications for the Canadian dollar are decisively negative, not to mention the deflating effect on asset values. It’s a classic move to make everyone poorer, cloaked under the veil of redressing income inequality.”

In contrast to the above, the highest personal US tax rate is 39.6%, and for the wealthiest Americans, the top capital gains tax rate is 20%. In other words, if this budget change comes to pass, the tax load here for investors – in real estate as well as financial securities – will be double that of those to the south.

That’s why the dollar will be pooched, Canadian markets affected, and every poor schmuck with a bank mutual fund whacked. If you think residential real estate is immune, stop getting your news from Instagram. These days over half of all condo sales in the GTA, for example, are to investors – people who buy them precisely because they expect to earn a tax-advantaged capital gain. This also impacts every family in Vancouver with a basement rental suite full of hollow-eyed, pasty subterranean deplorables, since they’ve commercialized their properties and will be facing a capital gains bill upon sale, for a portion of the value.

And while nobody’s shedding tears for the lonely 268,000 Canadians with 1%er incomes ($220,000 or more) – especially those irritating, T2-voting lefty hipsters – many of these folks might simply stop bleeding money for the rest of society. They can focus on investing within tax shelters, for example. They can leave the country. They can throw in the towel and retire. They could even stop risking their after-tax income to restore a derelict general store, where 19 new jobs were created. Just saying.

You may recall the new federal government said taxing the rich with a special bracket would pay for a middle-class break, averaging under $10 a week. It didn’t happen. Turns out there aren’t enough high income-earners. That now adds $4 billion a year to the deficit. Genius move.

A tax-and-spend Canada in a laissez-faire world begs trouble. Let’s hope the moisters get it. After all, they’ll be paying.

223 comments ↓

#1 For those about to flop... on 02.16.17 at 5:48 pm

After Broadway told me of a sale yesterday in his hood I decided it was worthy of a case study.

One house at 2273 Graveley is on the market for 1.499 and has had one sale fall through and they appear desperate to unload it after paying 1.6m for it last year.
160k over assessment.

The house next door comes on the market and is the same age ,style and lot size.

Both houses have been renovated and looked to have been done tastefully.
The second house has an extra bathroom depending on which document you look at.

The one at 2281 Graveley comes on the market last week and according to Broadway
sells for 1.72m after asking 1.69m

The first one is actually assessed higher at this moment in time.

This begs the question….who was out to lunch here?

The buyers…the realtor….or both?

The house next door struggling to be sold ,should have been used as leverage to lower the price in a slightly cooled market.

You have the choice of two similar houses in the same location,choose whichever one you want ,that is not really the point.

The ultimate decision rests with the buyer ,but I’m not entirely convinced the realtor done the job properly that they were hired to do in this case.

The reason to pay over asking ….absolutely none…and will most likely now be used as a comp to turn the next victim upside down to shake the last penny out of their pocket.

Fozzie Bear and I could have rocked up on our roller skates and paid over asking…

M42BC

#2 David on 02.16.17 at 5:53 pm

What does Canada do now that Chinese buyers are dropping out?

https://betterdwelling.com/city/vancouver/chinese-new-year-sales-of-vancouver-real-estate-down-78/

#3 South Etobicoke Trump White House Liaison Office on 02.16.17 at 5:53 pm

This place will no doubt get exponentially more expensive to live in.

I think the best investment advice would now be seeking methods to avoid the looming tax avalanche that old people and childless couples are inducing on the public finances.

The Emperor Protects..

#4 South Etobicoke Trump White House Liaison Office on 02.16.17 at 5:59 pm

And to counter the anti-cat vitriol in today’s posting I present another selected quote from H.P. Lovecraft:

“The cat is such a perfect symbol of beauty and superiority that is seems scarcely possible for any true aesthete and civilized cynic to do other than to worship it.”

People who owned cats:

Winston Churchill
Albert Einstein

Famous dog owners:

Michael Vick
George W. Bush

#5 InvestorsFriend on 02.16.17 at 6:01 pm

Tax Breaks Increase the Marginal Tax Rates

You can probably have a low maximum marginal tax rate or (as now) a high maximum marginal tax rate with tons of tax breaks.

Every tax break adds to the average tax rate to make up the difference.

#6 Doug t on 02.16.17 at 6:04 pm

The last thing anyone needs is more government – this crew in Ottawa is taking the country down the road to recession and it will be a cracker. But don’t worry about it – heck there are certain organizations in the States that want to ignite a new Cold War with Russia and continued wars around the world.

#7 Ret on 02.16.17 at 6:06 pm

What happened to, “the budget will balance itself” ???

You don’t think that he said that just to get elected, do you?

#8 InvestorsFriend on 02.16.17 at 6:07 pm

The 75% inclusion rate…

Is unlikely to apply to gains already made. As I recall it used to be that gains pre the December 31 1971 “Valuation Day” were tax free then the gains after that were taxed at the inclusion rate applicable to a particular year. The gains had to be allocated to the different inclusion periods. Did they do away with that?

I suspect a stock held for 10 years and sold in 2018 will not be subject to 75% but rather the gain will be allocated with much of the gain taxed at 50%. But we shall see.

#9 MF on 02.16.17 at 6:07 pm

We just have a few more years to go before we get rid of these pathetic Liberals.

“Ironically, while most of the world seems to be on an anti-government populist tangent, young voters in Canada embraced more government as the solution to their needy shortcomings”

Not all of us. Only pot heads and delusional losers who are easily manipulated voted for this guy.

MF

#10 Rainclouds on 02.16.17 at 6:10 pm

Kinda like Britain in the 70’s, taxation strangled them. Anybody who could bailed with their dough. Then Maggie got elected

2019- So Long Princeling, hello Maxime

Governed by idiots, elected by fools. Pendulum will swing the other way………….. eventually

#11 TrumpForTheAges on 02.16.17 at 6:10 pm

Confusing post because while higher taxes inevitably create economic headwinds, if T2 was increasing deficit by making sounds economic investments it would actually be a good thing – Canada is one of the developed nations whose fiscal situation is better than most.

You get an “F” for using the US as a corollary. If you haven’t figured it out yet, Trump is leading the US down a path of destruction. The Q1 GDP growth has been reduced, the Federal government is at a $20 T debt and the consumer debt is at $13 T while Trump implements protectionist policies and cuts taxes do we actually think that it is going to create discretionary income that people can spend? Or is it about just trying to stay afloat and pay down debt. Oh…and interest rates are going to normalize? That means that the cost of servicing such debt will offset and tax cuts. So government will have less revenue and greater expense servicing debt. But I am sure any day now we are going to see the US start posting GDP growth in the 4 – 5 % range which is what would actually be required.

The US comparison is completely valid since capital flows where the best (least-taxed) returns are to be found. Canada needs to remain competitive, or suffer. — Garth

#12 Tudor on 02.16.17 at 6:13 pm

Suppose that redressing income inequality is not just a pretence. Aside from taxation, how would you do it? Especially since inequality is driven by capital gains, not labour income?

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

#13 Dinglenuts on 02.16.17 at 6:17 pm

hollow-eyed, pasty subterranean deplorables…..aka cannibalistic humanoid underground dwellers or CHUDS

https://www.youtube.com/watch?v=WqDToaLuJ7I

#14 InvestorsFriend on 02.16.17 at 6:19 pm

Inflation Gains Should Not BE Taxed

Euro Observer said:

You call ‘grow’ 0.1 % interest with official inflation target 2 %, real inflation 5-6, maybe 8 %?

All grow must be real inflation adjusted. Period.

I never suggested taxing labour only. I think that everything that grows in real terms, not in nominal terms is fair to be considered for some form of taxation.

**********************************
I agree interest income and capital gains should be reduced by the official inflation rate and taxed only on the real gain.

But we can’t use some fake real inflation of 5 to 6% or even 8% as Euro also argued. The official inflation rate may be subject to debate but it is transparently calculated. There is ZERO reason not to believe official inflation numbers. Inflation is calculated transparently using a basket of goods. Certainly, not everyone buys all the stuff in the basket at the same proportions.

But it is dangerous for unqualified and uninformed people to accuse the government of not calculating inflation properly. The CPI number can be respectfully questioned but I don’t think it right to make unfounded accusations.

Basically Stats Canada shows exactly how they get their number while anonymous people posting here are free to pull any number out of the air.

On one under about age 50 remembers what actual double digit inflation was like.

#15 Darryl on 02.16.17 at 6:20 pm

Mississauga Crazy update .
Went to an open house last week in a nice quiet area near the Credit ( near ) . Asking 875k . One story converted to two story with town houses behind . Nice area . OK house .
Was to be open house twice on weekend but realtor texted me and said that they would have bids Friday night instead .I declined of course. I expected it would go for under 1 M.

Sold for 1,150,000.

Sht this is nuts .

#16 For those about to flop... on 02.16.17 at 6:21 pm

Metaxa,I just want you to know that I think you are a solid contributor to the comment section.

Sometimes some of your comments remind me of my blog buddy Boom.

Boom and myself didn’t agree on everything but we refused to let that stop us from sharing ideas with each other and stating why we felt a certain way.

My favourite people on this blog talk “to” me as opposed to “at” me…

M42BC
M64WI

#17 HFT Dude on 02.16.17 at 6:27 pm

They can focus on investing within tax shelters, for example. They can leave the country. They can throw in the towel and retire.

We, a Doctor of Engineering and a Specialist Doctor in our peak earning years, already have our exit strategy planned if too many of these measures come into effect.

#18 TrumpForTheAges on 02.16.17 at 6:27 pm

The US comparison is completely valid since capital flows where the best (least-taxed) returns are to be found. Canada needs to remain competitive, or suffer. — Garth

With all due respect I think you are operating on an old paradigm. The US is no longer a hegemonic state and we live in a global economy. Protectionist policies coupled with tax cuts will be a complete disaster for the US. Canada is at risk mostly because we are still too dependent upon the US. Good to see the EU trade deal, and need to expand trade with Asia and Britain.

#19 Darryl on 02.16.17 at 6:30 pm

Only those who report their income producing property to CRA will pay the higher tax . Or any tax for that matter . I would think that most will take the risk and declare it as principle place of residence .
That’s what the flippers do right now . I’m sure checking a box doesn’t scare them .

Opp’s , wrong box …… so sorry .

#20 S.Bby on 02.16.17 at 6:30 pm

“Perhaps a hack out of the dividend tax credit”

I really hope this doesn’t happen but I would not be surprised if it does. Considering that tax has already been paid on both the company’s and the investor’s earnings, it would be wholly unfair and inequitable to re-tax these same funds. But that sounds like a good plan to the Liberals?

#21 Mike on 02.16.17 at 6:31 pm

Who cares. Property prices will never crash crash here. Not even in Alberta. Rich rich Canadians. Bling bling rich.

#22 jay on 02.16.17 at 6:34 pm

Trudeau’s dad never met a tax he didn’t like either, like father ,like son. http://news.nationalpost.com/full-comment/david-frum-the-disastrous-legacy-of-pierre-trudeau

#23 Millenial-falcon on 02.16.17 at 6:35 pm

What did libtards spend all that loot on ? Any real projects have shovels in the ground?

#24 Bytor the Snow Dog on 02.16.17 at 6:35 pm

Phew! Luckily I don’t vote for this guy. I voted for a party more in the centre.

The NDP.

#25 Doghouse Dweller on 02.16.17 at 6:36 pm

“Just saying.” For sure , destroy the incentive to do just about anything and yap about helping the middle class.
Living next to the border the grass sure looks greener across the river.
I Wanted to buy a DVD player ( Enviro Fee) and a LCD monitor ( Enviro Fee) A bucket of paint for the house ( Enviro Fee) a spare tire ( Enviro Fee) a solar battery ( Enviro Fee) and you pay GST/PST on the ( Enviro Fee).
Oh ya , they just jailed another bunch of T2-voting lefty hipsters in Hamilton today . T2 will be long gone and they will still be waiting for their legal hemp.

http://www.ottawasun.com/2015/10/24/trudeaus-pierre-and-justin-have-talked-pot-for-50-years

#26 Darryl on 02.16.17 at 6:41 pm

#2 David on 02.16.17 at 5:53 pm
What does Canada do now that Chinese buyers are dropping out?
https://betterdwelling.com/city/vancouver/chinese-new-year-sales-of-vancouver-real-estate-down-78/
—————————————————————–
What is
Hope that the same thing happens in GTA ?

#27 David McCaskill on 02.16.17 at 6:47 pm

And Garth didn’t even mention the Carbon Tax. Garth, how will you adress Canadian Equity Portfolio Allocation with the proposed tax increases? Canadian allotment down to 10, 5%?

#28 northerngirl on 02.16.17 at 6:52 pm

And we sit here being taxed to death like good Canadians that we are…

#29 Frank on 02.16.17 at 6:54 pm

So raising taxes is bad but lowering middle class income tax was a “genius move”? Which is it?

This is like listening to Trump.

#30 Work and tumble on 02.16.17 at 6:55 pm

I have been working as a sales rep for 21 years in the same industry. I have given up a lot of good family time my job is demanding, I have been compensated. But find my tax burden overwhelming for the good years lost.
I’m not so happy in Canada anymore but once I was so proud of my country. now I’m bitter.

#31 45north on 02.16.17 at 6:59 pm

They could even stop risking their after-tax income to restore a derelict general store, where 19 new jobs were created.

it’s not a general store but it was a cultural icon: the Burks Falls Hotel. The roof caved in a year ago. It still isn’t fixed.

http://mcaf.ee/icr5fo

#32 acdel on 02.16.17 at 7:03 pm

Well, let us hope that the 3.5 million newbies come to there senses as they age. Hopefully realizing what all this is going to cost them in the future, especially if they choose to have children or ever plan on retiring.

I will never understand on how more taxes will benefit a country, let the people decide what they wish to do with the money they have earned. Support the basics of a well functioning society but keep it in reason, allow people to prosper.

#33 Tim on 02.16.17 at 7:06 pm

One of the reasons we have this insanely overpriced housing market is because of people trying to profit off it by flipping. If policies were in place such that the majority of people would buy a home–one home–to live in, then they would be affordable. So yes, tax the hell out of those greedy speculators.

#34 Julian on 02.16.17 at 7:07 pm

All past governments encourage monopoly business practices in Canada for long time but the rich enjoy the life without paying the protection money to the protecters.
LCBO, Telecoms, Lotto, car dealerships, Hydro, Gas, Housing and city planning(green belt) etc.
It is long overdue…

#35 Hairhead on 02.16.17 at 7:08 pm

To wrk.Dover et al. from the previous thread, who basically accused me of lying:

I just checked the gov’t assessment on the home in question: $2.6 million. Pls. note that your “east-side” home you quoted at 1.7mill, which is exactly what the couple will have left to buy an east-side home for cash, after paying their mortgage, fees, taxes, etc. etc. This has been their plan.

All the info came from a phone conversation with my friend after their deal closed. I think they (couple with child) are nuts not to take the 1.7 mill cash and live off the ~$110,000 annual income that would generate when invested, then rent and wait for the market to crash. I also said they are nuts to buy when the market is still near to peak. (And to turn down the $200,000 — just live in a luxury condo for 2 months while you look for another house!) (They’re working on buying their east-side house right now. I’ll tell you when they do, and how much they paid.)

BTW, the seller is Chinese, the buyer is Chinese, and the house # ends in an “8”.

I will add that their household income is ~200K (both professionals).

But that’s what house-horniness will do to you. Haven’t you looked with amusement, horror, and just plain disbelief at previous house-horny writers in this blog planning to do completely insane things?

As I pointed out in previous posts: THE VANCOUVER MARKET IS NUTS!! IT IS POPULATED BY IRRATIONAL PEOPLE! THEIR DECISIONS ARE NOT LOGICAL!

#36 dumpster fire on 02.16.17 at 7:11 pm

#202 RRSP vs. TFSA on 02.16.17 at 4:47 pm
Why is this an “either/or” and not a “both/and”? Should taxpayers not want to max out all their registered investment accounts (RRSP, TFSA, RESP)

* * *

TFSA is a no brainer, however the questions I had were:
1) is an RRSP worth it in the first place (the answer being yes, and doubly so if cap gain tax goes up)
2) what priority should be given to each account type under different situations (RRSPs are generally more useful if you are in a high tax bracket or if you have a long investing timeframe)

#37 IHCTD9 on 02.16.17 at 7:17 pm

#24 Bytor the Snow Dog on 02.16.17 at 6:35 pm
Phew! Luckily I don’t vote for this guy. I voted for a party more in the centre.

The NDP.

———

Lol, good one!

Sad thing is you’re right.

Trudeau is a non-angry, better looking much more palatable Jack Layton.

#38 Smartalox on 02.16.17 at 7:18 pm

@Rainclouds:

The reason that Britons were so highly taxed in the 1970s was because Churchill very nearly bankrupted the Empire fighting WW2. Note how many colonies and British protectorates were cast off in the 5 years following 1945: India and what eventually became Pakistan, Newfoundland and Labrador, British mandates in the Middle East.

Britons faced punitive taxes through the 1970s to pay war debts. Thatcher’s pledge to roll back taxes made everyone feel relieved, and spurred consumer spending and investment, but also kicked the debt can further down the road.

Britain didn’t break even until more than 50 years after the war ended.

#39 HDJ on 02.16.17 at 7:18 pm

#12 Tudor on 02.16.17 at 6:13 pm
Suppose that redressing income inequality is not just a pretence. Aside from taxation, how would you do it? Especially since inequality is driven by capital gains, not labour income?

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth
……………………………………………………..

In my opinion, income and wealth inequality has almost reached a disaster point. It’s one of our most serious problems, and steps must be taken in order to turn this situation around. Dismissing the problem as just a characteristic of capitalism ignores both the magnitude of the disparity and its current and future negative impact on the health and stability of Canada. Of course we’re not all equal, but we all live together in a prosperous country and its wealth must be more equitably shared. The tax system needs to be changed if we are to achieve that absolutely necessary goal. It’s time for a significant change.

#40 Gentle ,Loving Kindness on 02.16.17 at 7:20 pm

I wonder if you are a Cat person or a Dog person is an introvert-extrovert thing?

#41 CL on 02.16.17 at 7:22 pm

There is a reason most innovation and the largest companies in the world are in the US, not Canada.

You should retire for sure. If you haven’t realized that Canada loves mediocrity and punishes those who work hard, take risks, and save and do the right things, then there’s something wrong with you, Garth. I’ve seen the light and let me tell you I’ve shut down my business and will gladly take their guaranteed annual income when it comes.

The more you make, the more they take so why bother?. And, to add, there’s truth to many sayings in life. In this case,when my grandfather used to say they will tax the air you breathe, it seems government took that literally. Carbon tax anyone?

#42 joblo on 02.16.17 at 7:24 pm

Hey youngins in Kanuhduh, you hired him, why don’t ya light a fire under him?

Too lame?

#43 DBB on 02.16.17 at 7:24 pm

What a mistake. Morneau should know better. Hope he’s not expecting any Christmas cards from his former Bay Street pals.

#44 TRT on 02.16.17 at 7:27 pm

Had a conversation with some acquaintances who each own multiple detached homes in vancouver about the reporting requirement hen selling homes.

At first anger then…

..one guy said he will not report anything to CRA since he believes Christy clark will not link the BC land registry with CRA.

..another said that he’ll just transfer the name of the property on title to his kid using a lawyer…saying if you pay them well, they can do anything with property.

Lets see who wins this one…the engrained tax evaders in real estate or the CRA.

#45 InvestorsFriend on 02.16.17 at 7:33 pm

Canadian Tire had BLOW-OUT sales in Q4

Canadian Tire’s same store sales were up 8.1% in Q4. (This is their Canadian Tire branded stores, not Marks and Sport check which they also own).

That is amazing in a supposedly weak economy. Did they steal share from others?

Canadian Tire has been firing on all cylinders for years now. A fabulously well-managed company. And this is in spite of their dual-class share structure. Unlike Bombardier, the family turned management over to outside professionals years ago.

#46 crowdedelevatorfartz on 02.16.17 at 7:34 pm

@#13 dinglenuts
“hollow-eyed, pasty subterranean deplorables…..aka cannibalistic humanoid underground dwellers or CHUDS ”
******************************************
Nah, just “Beliebers living in mommy’s basement suite”

CHUD a great 80’s movie

#47 Barbo on 02.16.17 at 7:36 pm

This is the second wave that will crash the Alberta markets. Our plant got their first gas bill with the NDP carbon tax, being a food processing plant in southern Alberta, lots of gas is needed to boil out the water out of the raw material. The Notley carbon levy (tax) was $253 000 for the month of January alone, which represent 50% of the plant wages paid. How long can this last? Will we have to accept a pay cut? Will the plant be shifting production elsewhere? Will it close? I don’t expect the budget to balance itself as Trudeau always says. The truth is that companies will have to take tough decisions and people will feel the pain and there are a whole lot of plants in the same situation around here.

#48 Keith in Calgary on 02.16.17 at 7:41 pm

Well…….your second paragraph just explained why we’re turning Japanese.

I’m leaving Canada……just sent my passport and docs to the Brasilian consulate to get their equivalent of our PR card……all my money is in USD and other solid currencies and gold. Bought myself a 42K solid gold Rolex Submariner this week to celebrate. ……it’s only 3 % of my net worth……….WTF. I have enough cash to live on the beach until I die and I still won’t have to pawn the watch.

Kanaduh us screwed……..and you can’t see the forest for the weed.

When I voted for T2 it was for that reason only……..to free my 420 brothers and sisters from being unjustly jailed…….everyone in the enormous line at the polling booth was under 30……..do you think they were there because of their intellectual stake in the advance of socialism ?

ROFL. ……

#49 palebird on 02.16.17 at 7:42 pm

Trumpfortheages:

What are you talking about? Global economy? You are the one who is hopelessly out of touch. Get out in the real world and see how the “global economy” works. Not as you imagine. The USD is going for an incredible ride as is the DOW. The Canadian dollar is pooched.

#50 rainclouds on 02.16.17 at 7:43 pm

#38 you may be correct however Britain appears to have benefited.

Most of the major British political parties today accept the trade union legislation, privatisations and general free market approach to government that Thatcher’s governments installed. No major political party in the UK, at present, is committed to reversing the Thatcher government’s reforms of the economy. Although in the aftermath of the Great Recession from 2007 to 2012, the then Labour Party leader, Ed Miliband, had indicated he would support stricter financial regulation[56] and industry focused policy,[57] in a move to a more mixed economy. In 2011, Miliband declared his support for Thatcher’s reductions in income tax on top earners, her legislation to change the rules on the closed shop and strikes before ballots, as well as her introduction of Right to Buy, claiming Labour had been wrong to oppose these reforms at the time.[58]

Moreover, the UK’s comparative macroeconomic performance has improved since the implementation of Thatcherite economic policies. Since Thatcher resigned as British prime minister in 1990, UK economic growth was on average higher than the other large EU economies (i.e. Germany, France and Italy). Additionally, since the beginning of the 2000s, the UK has also possessed lower unemployment, by comparison with the other big EU economies. Such an enhancement in relative macroeconomic performance is perhaps another reason for the apparent “Blatcherite” economic consensus, which has been present in modern UK politics for a number of years.[citation needed]

Tony Blair wrote in his 2010 autobiography A Journey that “Britain needed the industrial and economic reforms of the Thatcher period”. He described Thatcher’s efforts as “ideological, sometimes unnecessarily so” while also stating that “much of what she wanted to do in the 1980s was inevitable, a consequence not of ideology but of social and economic change.”[59]

“The problem with socialism is eventually you run out of other people’s money”

Hear hear

#51 Blacksheep on 02.16.17 at 7:44 pm

Flop # 1,

“sells for 1.72m after asking 1.69m”
—————————————
So what your really saying is:

Its sold for 30K more, than asking price.

That’s great news, Flop.

Thanks.

I’ve seen this movie before in spring of 2009 and have a feeling it may not go the way many bears are thinking.

#52 Keith on 02.16.17 at 7:45 pm

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

You might as well have said let them eat cake. The working income share of economic growth since the seventies has been less than zero. Yes income inequality has always existed, but all the progress of ordinary Canadians from 1939 – 1979 was stopped cold by the neoliberal agenda of Reagan, Thatcher and Mulroney. The global shortage of billionaires from 1980 has been well addressed. Time to give up on trickle down, and refocus on bottom up.

Love those 5%+ economic growth rates from the fifties and sixties, with rising real wages and higher marginal tax rates. Time to turn to what worked in the past.

#53 End CMHC on 02.16.17 at 7:49 pm

CMHC and shyster realtors have destroyed the Canadian economy and forced the government to increase taxes. You evil shysters (realtors) and you useless eater mortgage brokers have destoried Canada with the blessing of the idiot CONservative. Harper and the stupid conservatives allowed high school dropout to destroy a country. Shut CMHC down today and let the free and open markets correct this housing bubble. Canada is nothing but a house of cards. Lucky we have resources or Canada would be finished.

#54 bubbble up on 02.16.17 at 7:50 pm

Al Sinclair of remax on CP24 saying there’s no housing bubble and get in while and if you can.
He surely couldn’t be biased could he.

#55 acdel on 02.16.17 at 7:50 pm

Just a note Garth, good on you for creating a small business and hiring 19 people; especially in Ontario with that crazy provincial government you people have.

You are giving it your best shot but it should not have to be so hard in a country that almost has it all.

#56 Adam on 02.16.17 at 7:52 pm

This blog used to be good of useful financial advice supplied in witty prose. Now, it’s turned into completely political, partisan commentary. I’m not going to bother picking apart the multitude of cherry picked, misleading or outright incorrect statements you make. I expect this weekends guest blogger to be Kevin O’Leary, right?

At least, for the time being, I can rely on the Saturday posts to contain useful information.

Oh c’mon. Let’s hear about the incorrect statements. — Garth

#57 Herb on 02.16.17 at 7:54 pm

Could it be that someone in government remembered the 1966 “Royal Commission On Taxation”, recalled that a buck actually is a buck, and, lower hanging fruit having been harvested, in desperation is accepting the risk of going after higher hanging fruit?

http://epe.lac-bac.gc.ca/100/200/301/pco-bcp/commissions-ef/carter1966-eng/carter1966-eng.htm

#58 Capital Flight, Agreed on 02.16.17 at 7:56 pm

Once taxes are lowered in the US for companies, yes, capital flight of money there.

On private investment money, it does not take much time nowadays to transfer funds to a US bank and invest there.

Interesting to see the budget aftermath. I think consumer spending will go down, cash investments will go south of the border (how much, who knows?) and investment real estate will probably go down as well.

Remove that capital activity from GDP and we may end up with a Made in Canada recession.

#59 bigtowne on 02.16.17 at 8:01 pm

If the millineal group who are educated and well-heeled decide to decamp to their parents’ original country i.e. India; China; U.K.; Mexico; U.S. or any other country with a more friendly economy the electoral base the Liberals imagined had their back would create the mass exodus the Liberals are trying to build up with the mass immigration numbers.

#60 Global Golfer on 02.16.17 at 8:10 pm

#12 Tudor
Are you looking for Communism? Why would we tax doctors to bring monetary equity to a taxi driver? Why be a doctor? Just sit back and find an easy job and let the government equal it all out? People shouldn’t be punished for moving away from their homes to work in remote areas or go to school and pay large expenses (while others make money) should be paid for the chances taken and the time spent studying. The tax system has already forced the higher paid workers to pay more. It can’t continue.

#61 dogman01 on 02.16.17 at 8:14 pm

Hey Garth – you made CBC.

http://www.cbc.ca/news/business/real-estate-canada-greater-fool-1.3983797

#62 Brian Johnson on 02.16.17 at 8:16 pm

I just got my property tax assessment from the city. They’ve assessed my house $6000 less than last year. I guess Winnipeg is on the decline.

#63 conan on 02.16.17 at 8:17 pm

The Cons are toast if they do not elect a Progressive to be their next leader. They won’t because Harper still has his claws in the Party.

Bold prediction:

T2 for the win in 2019 and the Cons are going to lose seats.

https://www.youtube.com/watch?v=BPRbxP__7wY

#64 Jay on 02.16.17 at 8:19 pm

Talking to fellow young voters I am convinced none of these people know what left wing versus right wing politics actually mean. They just vote based on what mainstream media tells them about the latest scandal. It’s very sad.

People in Alberta didn’t like the fact that the conservative party was spending too much, so what do they do? Vote in the NDP who spend even more. Then complain non stop about it. Then we vote in someone based on hair and who their dad was.

This generation needs to learn the concept of being fiscally conservative without associating it with extreme right wing social policy.

#65 Bottoms_Up on 02.16.17 at 8:20 pm

“These days over half of all condo sales in the GTA, for example, are to investors”
————————————
Reflect on this comment for a moment….and whether this is something as a community we consider to support an affordable and balanced housing market.

#66 Raging Ranter on 02.16.17 at 8:21 pm

Yet we had commenters on the last blog post crying about the extinction of Red Tories like Peter
Lougheed. This country isn going to be fixed by giving the Liberals another Joe Clark or Robert Stanfield to kick around. It will be fixed by a strong Margaret Thatcher style conservative or not at all. I’m guessing the latter.

#67 crowdedelevatorfartz on 02.16.17 at 8:21 pm

@#38 Smartalox
No.
While the ‘War Debt” was considerable.
Winston Churchill didnt create the high tax situation in Britain.
It was successive labour govts( 1945- 1951, 1964- 1970,) appeasing union labour that created fiscally unrealistic expectations for the population.
After years of war, rationing and privations, people wanted to live and expected more from their govt..
The British economy suffered through several decades of either Labour govt mismanagement and or National strikes against Tory govts. (trying to bring fiscal sanity to a socialist leaning population.)
Arthur Scargill’s battles with big business and or Tory govts and the endless coal miners strikes 1972, 1974, 1981(unofficial) and 1984 brought the British economy to its knees.
Who? In their right mind would invest money in a country wracked by endless, pointless strikes while its economy spiraled into the sewer?
Who can forget the TV images of 10,000 coal miners battling it out with 8500 police.
No.
War debt didnt do it.
Just deficit spending govt idiots.
Thatcher crushed the unions and England’s political system has never been the same.
Tony Blair the “labour” Prime Minister was about as “socialist leaning” as Henry Ford. Labour had learned its lesson. Travel the middle road….not the left or the right

Trudeau afficionados take note.

#68 When Will They Raise Rates? on 02.16.17 at 8:23 pm

#39 HDJ on 02.16.17 at 7:18 pm

In my opinion, income and wealth inequality has almost reached a disaster point. It’s one of our most serious problems, and steps must be taken in order to turn this situation around. Dismissing the problem as just a characteristic of capitalism ignores both the magnitude of the disparity and its current and future negative impact on the health and stability of Canada. Of course we’re not all equal, but we all live together in a prosperous country and its wealth must be more equitably shared. The tax system needs to be changed if we are to achieve that absolutely necessary goal. It’s time for a significant change.

————————

From each according to his ability, to each according to his need.

No thanks.

#69 Bluebird on 02.16.17 at 8:23 pm

lol, love your pictures…just adorable!

#70 broader mind on 02.16.17 at 8:24 pm

Remember the brilliant government that pooched income trusts. Instant 50% haircut on equity value. Now imagine the carnage if our new government even hints at touching dividends. Market meltdown and a mass exodus of the wealthy part of the population. Also my free tip of the day- The Hunt brothers are accumulating Vancouver real estate.

#71 Pepito on 02.16.17 at 8:31 pm

@47 Keith in Calgary

Hilarius. Will be interesting to see how long you will manage to keep that 42k Rolex on your wrist in Brasil.

Just kidding, don’t worry. Remember, when they point a gun at your head, they’re bluffing….. LOL

#72 cd on 02.16.17 at 8:34 pm

reading about the the run up in prices and the amount over asking people are getting is ridiculous. Meanwhile in Detroit (and in ok neighbourhoods) you can get these…

http://detroit.curbed.com/2017/2/13/14596972/east-english-village-home-for-sale

this one needs some work…
http://detroit.curbed.com/2017/2/16/14636424/boston-edison-fixer-upper-sold

http://detroit.curbed.com/2016/8/2/12361348/north-end-apartment-income-property-for-sale

These houses make me believe that the price of a house represents the materials and the labour to build that house…

#73 acdel on 02.16.17 at 8:38 pm

#64 Jay

Excellent post!

#74 Insured Mortgage Purchase Program on 02.16.17 at 8:38 pm

Google it, you’re welcome. Taxes, houses, and oil. That’s all we gots here and the govt will backstop at all costs. KEITH I envy you, enjoy Rio.

-Bj

#75 Pepito on 02.16.17 at 8:38 pm

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

Do you purposely ignore the fact that income disparity was LESS after ww2 while the economy did well? Are you that partisan that you would deny historical fact in your defence of the current capitalism on steroids?

#76 BillyBob on 02.16.17 at 8:42 pm

#10 Rainclouds on 02.16.17 at 6:10 pm
Kinda like Britain in the 70’s, taxation strangled them. Anybody who could bailed with their dough. Then Maggie got elected

2019- So Long Princeling, hello Maxime

Governed by idiots, elected by fools. Pendulum will swing the other way………….. eventually

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

I dearly hope you’re right. I didn’t “bail with my dough”, but I was forced to leave when my industry proved incapable of providing stable employment. Now that I’ve made a great deal of “dough”, there’s no way I’d repatriate it to a country that simply wants to confiscate it. It’s one thing to help those less fortunate than me, but I will not pay ever-higher taxes to support poor decisions and waste. So I’m basically a case study in how bad policy affects those with money. Basically, Trudeau has gone far beyond the point of diminishing returns.

When I read posts like today, I’m grateful to have my net worth outside of Canadian borders. If anyone thinks that those far wealthier than I won’t simply take their money and leave, think again. It isn’t about greed, it’s about having years of toil and effort stolen.

What a terrible direction to be heading in. As I said yesterday, at what point do governments accept that aggressive socialism fails every time in its stated goals?

Canadians can squabble all they want about redistribution of wealth and everyone “getting their share”, but the fact is the poorest in Canada are still richer than most in the world. If you’re really serious about income and wealth inequity, better start pouring money outside your own borders. Otherwise I’m inclined to believe most of those bleating about the 1% are simply envious.

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

—————————————————————–

#52 Keith on 02.16.17 at 7:45 pm
When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

You might as well have said let them eat cake. The working income share of economic growth since the seventies has been less than zero. Yes income inequality has always existed, but all the progress of ordinary Canadians from 1939 – 1979 was stopped cold by the neoliberal agenda of Reagan, Thatcher and Mulroney. The global shortage of billionaires from 1980 has been well addressed. Time to give up on trickle down, and refocus on bottom up.

Love those 5%+ economic growth rates from the fifties and sixties, with rising real wages and higher marginal tax rates. Time to turn to what worked in the past.

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

What nonsense. This isn’t about elites, it’s about the best system of all the imperfect ones. The standard of living in Canada is still far above nearly everywhere else in the world, it makes your reference to the French Revolution laughably ignorant.

There will be no return to the past. The 50’s and 60’s in North America were unique in history: booming population, post-war, and huge consumer demand for mainly low-tech produced goods.

Now? Declining, aging population, no post-war to capitalize on (so far), and technology has replaced a staggering, rapidly-increasing amount of jobs.

Pine for the past at your peril. Those days are gone.

#77 Lead Paint on 02.16.17 at 8:42 pm

#39 HDJ
“The tax system needs to be changed if we are to achieve that absolutely necessary goal. It’s time for a significant change.”

What if that is not possible? Like Garth I’ve sacrificed tremendously to start a business and now write 17 pay cheques. To do to this I pay myself after everyone else and work nights and weekends. I’m on call on vacations.

My friends from public school who work for government (cop, CRA) get weeks of vacation and retirement is something they look forward to, not worry about.

How much more than 50% should I pay?

#78 Leo Trollstoy on 02.16.17 at 8:45 pm

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

Bingo!

#79 traderJim on 02.16.17 at 8:45 pm

#33 Tim

Speculators do not drive anything, they hop on and off already moving trains.

The currency devaluation we are seeing that is creating the housing and credit bubble is a direct and obvious result of central banks flooding the world with liquidity.

Speculators are just smart and daring enough to try and win the game that the central banks are playing.

Sometimes they win, sometimes they lose. So far they are winning.

My only complaint with speculators is when the government bails them out after a losing bet, as happened in 2008/2009.

But then again, do you blame the guys who asked the government to bail them out or the idiot governments that complied?

I’ll say equally guilty.

#80 Leo Trollstoy on 02.16.17 at 8:45 pm

Will always be income disparity

Nature of capitalism

Only fools believe otherwise

And people still attending elementary school

Lol

#81 TurnerNation on 02.16.17 at 8:46 pm

This bilious weblog, ah.

#82 traderJim on 02.16.17 at 8:49 pm

#75 Pepito

Your facts are correct but your analysis is wrong.

Inequality has risen in lockstep with an ever increasing share of government in the economy. It’s a clear correlation repeated in virtually every western country.

As we move away from pure capitalism to mixed economies with massive government intervention, inequality increases.

Maybe someday the poor saps being taken for a ride by government promises will catch on. But 50 years later still hasn’t happened, so I’m not optimistic.

#83 DON on 02.16.17 at 8:52 pm

Flop: Thanks for the clarifying note.

The existent of Crealievers in a declining market is normal until sentiment changes and then the stampede to the exits. I understand the Vancouver mentality and how individuals get wrapped up with it. It’s a shame, people have to learn the hard way. All is great on the way up.

#84 The Technical Analyst, CSTA, CPD on 02.16.17 at 8:59 pm

“They can focus on investing within tax shelters, for example. They can leave the country. They can throw in the towel and retire. ”

That is so true. As my name suggests, I invest into our economy to not only take the risk in making some money, but to support companies who in turn, create jobs.

I don’t have to. I could move country. I could buy a multi-million dollar home that creates no jobs.

But I don’t, as long as the country treats those who invest in it fairly, I, like many other investors won’t pull my capital and leave.

I believe in Canada, but not at the cost of myself or my family.

#85 DON on 02.16.17 at 9:01 pm

#51 Blacksheep on 02.16.17 at 7:44 pm
Flop # 1,

“sells for 1.72m after asking 1.69m”
—————————————
So what your really saying is:

Its sold for 30K more, than asking price.

That’s great news, Flop.

Thanks.

I’ve seen this movie before in spring of 2009 and have a feeling it may not go the way many bears are thinking.
*********************

Blacksheep how exactly is this like 2009.

In 2009 houses were still relatively affordable, now first time home buyers are being priced out.

In 2009 the US and China poured massive amounts of stimulus into the system. China went on a buying spree for commodities hence Canada’s short-lived recession. Trump about to bring in a low corporate tax rate which will suck investment out of Canada.

In 2009 Oil was king. Now we have a real estate driven economy.

In 2017 Chinese capital controls, less jobs, nationalism, Trump, Trudeau. Biggest housing bubble surpassing the US.

In 2017 Bank, rating agencies warnings.

I am trying to see it from your perspective.

#86 Raging Ranter on 02.16.17 at 9:02 pm

Broader mind, trusts plunged by 20% as a sector, and only income trusts were affected, not the entire market. Anyone who had 100% of their money in income trusts and took the full 20% haircut had only themselves to blame for their lack of diversification.

#87 Wait There on 02.16.17 at 9:02 pm

When the young people stop buying Apple Phones that they really cannot afford then fiscal respsonsibility will prevail. Until then, the debt party rolls on.
Ask an Apple use toting that spanking brand new phone and data plan what it really costs in retirement dollars and you will get a blank stare. What you talking about dude? They can’t afford a TFSA but they can afford a new Apple Phone. Hey’s it’s so worth it.

#88 traderJim on 02.16.17 at 9:07 pm

Income inequality is a problem in the sense that my generation has completely screwed over the younger generations by getting government to spend like mad on us boomers and leave the check to the millenials to pay.

I opposed it my entire life, but I was in the extreme minority.

In fact, it was exactly the same leftists that called for massive spending and deficits that now complain about the unfairness of it.

Things will not change as long as people are only concerned about taking from others instead of making the whole pie bigger.

And the only system that makes the whole pie bigger is capitalism, which we are halfway down the road to abandoning completely.

If you think socialism is the better system, pretty easy and cheap to go live in Venezuela, Ecuador, Mexico, Bolivia, etc etc. Weather is nicer too.

Why stay here and be exploited? Go enjoy the benefits of countries that truly believe in income equality.

Everyone is equally poor, which is the only possible result of that system, but at least you have the equality you seem to crave.

#89 toronto1 on 02.16.17 at 9:08 pm

Its simple math folks, for every large new promise there is a new tax, fee, levy, user fee, admin charge etc.. that must be created in order to balance out the cost.

The really truly wealthy, old school money, generational wealth will not be effected by these changes (these are the people who are closest to T2, same league as him) as they already have their wealth structured in multiple tax free jurisdictions being dispersed into Canadian banks.

would love to see what T2 marginal tax rate (if any at all) was on his trust fund disbursements before he became PM.

Capital will flow to the best opportunity, always has, always will. Those who have the means, intellect and ambition to be a 1% will find a way to re allocate capital elsewhere, or they just withdraw their services from public consumption, reducing their tax liability.

Remember these folks dont live month to month and can afford to live on less then what they make, the rest of us will grin and bear it.

The capital gains tax is a go, already a done deal. A lot of folks that have made capital gains on RE deals better get their check books out– as that is what is considered to be low hanging fruit for the CRA.

easy algorithm source code could net the govt billions alone. Cut and paste land registry records- cross reference those address with people claiming tax rebate for rent with owners who have not decalred income and sold and boom- like taking candy from a kid. write a secondary code that examines actual address of said owners in land registry vs tax returns- ref check the declared address on any other govt id (driver licence, health card, hunting-fishing card etcc..)

#90 The Technical Analyst, CSTA, CPD on 02.16.17 at 9:10 pm

#2 David on 02.16.17 at 5:53 pm
What does Canada do now that Chinese buyers are dropping out? ”

I’ll give you a hint, watch CNY/BTC trade right now. Bitcoin is being used by the Chinese nationals to get around capital cash controls for the past few years.

In the past 2 months, the Chinese gov’t is starting to put an end to this crypto currency trade as they see the currency flows out of China using BTC.

To give you an idea of scale, 98% of Bitcoin trade is through China.

When the value of BTC drops, China knows it has stopped this loophole.

#91 TurnerNation on 02.16.17 at 9:13 pm

Where’s all this revenue in tax monies going? Certainly we’ll see no discernable improvement to military, health care, transportation etc.
Is it to pay interest due to International Bankers (who’ve enslaved us)?
Sunshine listers? Given away overseas?
Say it ain’t so.

#92 Keep calm and blame Russia on 02.16.17 at 9:14 pm

Now now don’t be to hard on T2, after all this is his first real job.

#93 TurnerNation on 02.16.17 at 9:16 pm

I was talking with some Realtors this week (that saying..keep your friends close, your…)
A small townhouse project in Oakville sold out in one hour. Hundreds onto a waiting list.
All those new midtown condos: “Locals cannot afford, it’s overseas investors [buying].”

#94 Burnaby South gardener on 02.16.17 at 9:17 pm

Garth, what do you think the odds are that T2 will include principal residences sold in 2016 in the proposed capital gains tax on homes?

#95 Pete from St. Cesaire on 02.16.17 at 9:17 pm

Keith in Calgary
Best of luck to you! Glad to see that you’re one of those who see the writing on the wall. I’ve been telling all of the younger folk to get out of North America and the rest of the Anglo/American empire territories. I’m stuck here because of the way I chose to live my life (minimalist) but I don’t regret any of it. I’ve already lived the life that so many of the die-hard workers strive to attain upon their retirement at 65.
Leaving is the only way for people to escape the inevitable destruction looming. And it’s not just financial things.
I knew a couple in Kingston who moved their whole family to the Caribbean nation of St. Lucia because they had seen too many families destroyed by the so-called “Children’s Aid Society” and they were not going to remain within any jurisdiction where such things needed to be worried about.

#96 mike from mtl on 02.16.17 at 9:19 pm

#70 broader mind on 02.16.17 at 8:24 pm
Now imagine the carnage if our new government even hints at touching dividends.
/////////////////////////////////////////////////

You got it, I’ll dump ALL moose and beaver because essentially then any ‘tax’ advantage disappears. So getting paid in real dollars with the same rate totally makes sense.

#97 BS on 02.16.17 at 9:21 pm

#1 For those about to flop… on 02.16.17 at 5:48 pm

After Broadway told me of a sale yesterday in his hood I decided it was worthy of a case study.

You are being fed false numbers by a realtor. Don’t waste your time. All Van SFH are selling below assessed and below asking.

#98 InvestorsFriend on 02.16.17 at 9:26 pm

The Reason the NDP Won in Alberta

#64 Jay on 02.16.17 at 8:19 pm said:

Talking to fellow young voters I am convinced none of these people know what left wing versus right wing politics actually mean. They just vote based on what mainstream media tells them about the latest scandal. It’s very sad.

People in Alberta didn’t like the fact that the conservative party was spending too much, so what do they do? Vote in the NDP who spend even more. Then complain non stop about it.

****************************************
Many people in Alberta voted NDP because the Conservatives under Allison Redford had become a corrupt joke. And then the late Jim Prentice was parachuted in and called an election a year early trying to take advantage of the Wild Rose party that had just splintered. And then several prominent business people warned Albertan not to vote NDP. That warning was probably the final straw that caused a lot of people to vote NDP.

It is likely mostly conservatives and wild rose supporters who are whining about the NDP. Most of the people are willing to give Premier Notley a chance to do her job.

In Alberta it was time to vote the Conservatives out.

Federally it was time to vote the Conservatives out.

The NDP won in Alberta . Trudeau won federally. Get over it. And show some respect.

#99 Prairieboy43 on 02.16.17 at 9:27 pm

There is war against capitalism. War!!
Talked to wife, about leaving Canada. She listened, maybe onto something here.
Good book written by Millenials. “Generation Screwed”, by Candace Malcolm. She wrote a good book. All Millenials, Gen X should read.

PB43

#100 Tony on 02.16.17 at 9:29 pm

Re: #21 Mike on 02.16.17 at 6:31 pm

The average price in Alberta has fallen about twenty percent in the past 30 months. Look on zolo.ca for price reductions in January 2017 in Alberta. Massive price reductions all coming in the month of January 2017. The poor suckers can’t even sell before the budget because there’s no buyers so anyone who bought scores or decades ago will get snagged by the increase in capital gains tax.

#101 Rexx Rock on 02.16.17 at 9:31 pm

Wow!Our government is at war with high income earners.53% marginal tax rate ,throw in HST,property tax,carbon tax and everything else there’s not much left.I guess it could be worse say 75% marginal tax.
I’m already seeing adds online Canadian brides for American men.Another add I saw was Tall young good looking Canadian men looking for unattractive obese single American women.

#102 Yuus bin Haad on 02.16.17 at 9:32 pm

“Thou shalt not covet …”

#103 mike harrison on 02.16.17 at 9:34 pm

hey #48 “keith in calgary”
check your “solid 42 carat gold rolex” watch to see if it has made in china stamped on it, because 24 carat is as pure as it gets. hope you weren’t high when you made your brazil purchases either. goodluck bro

#104 IHCTD9 on 02.16.17 at 9:38 pm

#47 Barbo on 02.16.17 at 7:36 pm

The Notley carbon levy (tax) was $253 000 for the month of January alone, which represent 50% of the plant wages paid. How long can this last? Will we have to accept a pay cut?

——

Holy Moses! Seriously? That is absolutely insane!

Probably time to start looking for a job with an employer that doesn’t use any oil, natural gas, diesel, gasoline or electricity.

#105 acdel on 02.16.17 at 9:39 pm

#89 toronto1

Yep, that is why so many of us 50 plus, who can see the writing on the wall will be forced to leave this country, not that we choose to (perhaps some) but we will be forced to unless some drastic changes happen…..

Where does that leave our younger generation? What a complete shame for a country that has so much but stuck in a mentality that will eventually degrade it to “who knows” ????? Let us not forget on how robotics, technology, will challenge the core essentials of every economy.

Good evening all!

#106 acdel on 02.16.17 at 9:50 pm

#98 InvestorsFriend

I guess you did not comprehend his post as I did.

I understood his post about the current and the future not the past! Yes, things needed to change but this is not the right way. Read his post again.

#107 elephant in the room on 02.16.17 at 9:55 pm

If they introduce tax on primary residence capital gains

and if we expect that we are at peak housing

wouldn’t this be slaughter for the government thereby allowing capital losses?

#108 ronh on 02.16.17 at 9:59 pm

They could even stop risking their after-tax income to restore a derelict general store, where 19 new jobs were created. Good for you, taking on risk. Now, is there a mental/dental/pension plan with those jobs?

#109 Lead Paint on 02.16.17 at 10:00 pm

#89 toronto1 on 02.16.17 at 9:08 pm

Very well said. T2 and the Westons, the Rogers, the Irvings, the Iveys, the Thompsons and their ilk will not blink at any new *income* tax schemes T2 comes up with; their inherited wealth is safe from ALL such measures.

Doctors and entrepreneurs (and future generations) foot the bill for T2’s current spending plans.

#110 Keith on 02.16.17 at 10:00 pm

@ #76 Billy Bob

“The standard of living in Canada is still far above nearly everywhere else in the world.” Is that your best? You’re making a relativist argument, so workers who gained so much, living in a country with growing GDP, should be content when .001% of the population takes almost all the economic growth into their pocket. Sorry Billy, historically that has always ended in tears when the revolution comes, like well, France. Google Nick Hanauer.

“Those days are gone.” Not in Scandinavia my friend. And before you pile on, google debt to GDP ratios in the world and ponder all those wonderful social programs, high union density, cradle to grave security and the awesome fiscal performance relative to Canada and the U.S. There’s a more balanced way. The price – fewer ultra rich people. That’s all. There are many forms of capitalism Billy Bob. Dog eat dog, trustafarians and winners take all is one. Consider the possibilities.

#111 EJ on 02.16.17 at 10:00 pm

Garth, I see no real hope here. T2 is slowly pushing business out while catering to the bubble-wrapped Millies. The Conservatives don’t have a hope of a popular leader (Harper was well past due, and they caused some of this bubble). I guess I have been learning from this blog too long; I can see right through both parties. You have my vote if you decide to run…

#112 A belieber on 02.16.17 at 10:02 pm

#46 crowdedelevatorfartz on 02.16.17 at 7:34 pm

Nah, just “Beliebers living in mommy’s basement suite”
——————

Lol At least you got it right this time, I knew you could keep up. Looks like yesterday stung a little bit though

#113 IHCTD9 on 02.16.17 at 10:14 pm

#39 HDJ on 02.16.17 at 7:18 pm

In my opinion, income and wealth inequality has almost reached a disaster point. It’s one of our most serious problems, and steps must be taken in order to turn this situation around. Dismissing the problem as just a characteristic of capitalism ignores both the magnitude of the disparity and its current and future negative impact on the health and stability of Canada. Of course we’re not all equal, but we all live together in a prosperous country and its wealth must be more equitably shared. The tax system needs to be changed if we are to achieve that absolutely necessary goal. It’s time for a significant change.
————–

The only way that can happen is if the government forces every Citizen to work, and prevents anyone from leaving the country.

Sound like a place you’d like to live?

#114 Barb on 02.16.17 at 10:18 pm

“What does Canada do now that Chinese buyers are dropping out?”

—————————————-

The year of the Fire Rooster isn’t a good year to purchase real estate.

They’ll be back.

#115 Vanrentor on 02.16.17 at 10:26 pm

#48 Keith in Calgary on 02.16.17 at 7:41 pm

Careful with your Rolex in Brazil. This poser had his ripped off his arm.

http://ca.complex.com/music/2016/02/it-looks-like-someone-stole-wiz-khalifa-rolex-during-recent-show

#116 IHCTD9 on 02.16.17 at 10:31 pm

#56 Adam on 02.16.17 at 7:52 pm
This blog used to be good of useful financial advice supplied in witty prose. Now, it’s turned into completely political, partisan commentary. I’m not going to bother picking apart the multitude of cherry picked, misleading or outright incorrect statements you make. I expect this weekends guest blogger to be Kevin O’Leary, right?

At least, for the time being, I can rely on the Saturday posts to contain useful information.
——-

I’ll sum up the facts for you right here in one easy sentence:

“Your man is totally destroying the country.”

We’re going down like the Bismarck. Broken steering gear and unable to navigate. With the taxpayer under constant bombardment. Captain Trudeau at the helm.

#117 Keith in Calgary on 02.16.17 at 10:36 pm

Pepiro and Mike Harrison are idiots but that’s to he expected on this blog. Statistics dictate we will always have a % in any case and an intelligent factual rebutal from myself would go unrecognized by them regardless.

The one thing I noticed from the last blog post was the vast majority of people with 40 + of their networth in cardboard and shingles.

Kanaduh is cooked………done like dinner.

#118 IHCTD9 on 02.16.17 at 10:46 pm

#76 BillyBob on 02.16.17 at 8:42 pm
—–

Excellent!

#119 Bottoms_Up on 02.16.17 at 10:46 pm

Despite our issues, Canada is a great country for many varied reasons. It is unfortunate and sad if a Canadian becomes disillusioned with our country and wants to leave. But hey, it is a free country (pardon the pun) and you are welcome to leave from any one of our three fine coasts.

#120 IHCTD9 on 02.16.17 at 10:59 pm

#98 InvestorsFriend on 02.16.17 at 9:26 pm

…Trudeau won federally. Get over it.

———–

The barrel you mean?

We’ll all be over one shorty….

#121 Young and dumb on 02.16.17 at 11:08 pm

Young and dumb.
Do I want a:
Daily Interest Savings Account (DISA)
Guaranteed Investment Certificates (GICs)
TD Mutual Funds RSP
or A TD Direct Investing Self-Directed RSP
?
My best option?

#122 dr. talc on 02.16.17 at 11:12 pm

72 cd on 02.16.17 at 8:34 pm
reading about the the run up in prices and the amount over asking people are getting is ridiculous. Meanwhile in Detroit (and in ok neighbourhoods) you can get these…

http://detroit.curbed.com/2017/2/13/14596972/east-english-village-home-for-sale

this one needs some work…
http://detroit.curbed.com/2017/2/16/14636424/boston-edison-fixer-upper-sold

http://detroit.curbed.com/2016/8/2/12361348/north-end-apartment-income-property-for-sale

These houses make me believe that the price of a house represents the materials and the labour to build that house…

they’re all way below replacement cost
the land is worthless

#123 Paul on 02.16.17 at 11:17 pm

Tax free status for military in high risk areas revoked. Now the Liberals are going to put it under review they make me ill.
By the way tax free status should never have been revoked !!

#124 Blacksheep on 02.16.17 at 11:35 pm

Don # 85,

“Blacksheep how exactly is this like 2009.”

“I am trying to see it from your perspective.”
——————————————-
The common linkage between 2009 and now, is the systems need to keep RE a float at all costs.

Systemic intervention. They pull the levers.

I’ve learned not to bet against them.

#125 OttawaMike on 02.16.17 at 11:38 pm

Here’s one thing I see wrong in your essay:

Basement suites were already taxed on capital gains if the home owner capitalized his expenses and depreciation.
So now it won’t matter if the owner depreciates or not, he will get taxed on his gains regardless?

#126 IHCTD9 on 02.16.17 at 11:45 pm

#121 Young and dumb on 02.16.17 at 11:08 pm
—–

How old are you?

#127 Pete from St. Cesaire on 02.16.17 at 11:53 pm

If they introduce tax on primary residence capital gains.
and if we expect that we are at peak housing.
wouldn’t this be slaughter for the government thereby allowing capital losses?
—————————————-
Maybe that’s part of the plan; tax those who made money and offer some relief to those final fools who bought in at the peak. Closing the gap, levelling the field.
==================================
==================================
IHCTD9 “The only way that can happen is if the government forces every Citizen to work, and prevents anyone from leaving the country.”
————————————————-
The latter part is in the works don’t ya know. Study Communist history; they classify anyone caught trying to leave as a traitor/terrorist. At first the Canadians will largely be in favour of it; after being brainwashed to believe that those leaving are all tax cheats, terrorists, ‘deadbeat-dads’, people illegally smuggling money out, people fleeing the CPS, ‘Russian spies’, etc.

#128 Pete on 02.17.17 at 12:02 am

T2 has been a huge disappointment. I voted for T2 cause I hate conservatives and Harper for blowing up the housing bubble plus they are corporate thugs. T2 has been nothing but a CONservative and helped the evil CONs by not going through with electoral reform. You CONs should be so happy since electoral reform would of ment CONs would never ever win another majority again and Canada would have real democracy . A real democracy would of insured the working class would finally have a say. Alas T2 and the Libs are CONservative lite. If only the masses would wake up to these two evil corproate thug parties who hate free markets and democracy.

#129 Craven Moorehead on 02.17.17 at 12:27 am

#33 Tim
One of the reasons we have this insanely overpriced housing market is because of people trying to profit off it by flipping

One has to remember, people that flip homes are risk takers, many buy rundown homes, renovate and resell for a profit, there is a lot of trickle down economics generated by these flippers, nobody is forced to buy at todays prices, nothing wrong with earning an honest living, they take all the risks and share their profits with a silent partner (government) who takes no risks, and if the silent partner demands a bigger cut of the profit, then the risk taker stops risking his money and many lose their jobs.
Everyone who puts their money at risk is doing it with after tax dollars, be it a house flip, a stock market investment or a small derelict country store, and if there is not the possibility of a decent return, then the risks will not be taken….. And the moral of the story is: Taxes kill jobs and investments

Anyone who advocates for more taxes is a fool

#130 Josh in Calgary on 02.17.17 at 12:28 am

Garth,
With all that doom and gloom and supposed divergence between Canada and the US, explain why I should not be selling half my maple and buying more US equity in US dollars.

#131 Longterm on 02.17.17 at 12:36 am

Keith, you’re the only sane and analytical person on this blog.

#132 paulo on 02.17.17 at 12:42 am

#44
in Ontario the CRA recently linked the teranet and Trillium tax credit data base to the federal one,using there new and improved computers and IT skills,and about 1200 new auditors,so look out
BC’s Land Registry is or has also likely been linked , CC has no say the CRA has mandated federal powers
Al Capone beat everybody but the IRS in the end
Moral of the story: don’t screw with the mob or the taxman both will catch ya in the end and kill you, just different punishments.

#133 jay on 02.17.17 at 1:00 am

https://www.thesun.co.uk/news/2864485/massive-lake-of-boiling-carbon-discovered-underneath-the-united-states-could-spark-climate-chaos/ It’s a good thing Justin and Chrusty are increasing the carbon tax to save the planet,too bad they didn’t tell the planet about it.

#134 Entrepreneur on 02.17.17 at 1:18 am

#48 Keith in Calgary…I would not move to another country. Canada is still great, we just have to kick T2 out and that is just a couple years away. Things can come back to normal.

Read France wants out of EU, Frexit. So why does T2 pretend EU is so great. Everybody wants out!!

#135 Ponzius Pilatus on 02.17.17 at 1:20 am

Potholes are sprouting like mushrooms all over the Lower Mainland.
Anyone know how to fix them without raising taxes?
Ok, I know.
Let’s fire some lazy Civil Servants.
Problem solved.

#136 Bobby on 02.17.17 at 1:24 am

No country has ever taxed themselves into prosperity but Canada certainly is trying.
I’ve been fortunate, worked hard and saved but I think it is time to retire. Why put in the long hours to face these onerous taxes, monies that will be flittered away on some new useless government initiative. The debts are only going to rise as governments keep making promises they can’t keep. Moreover, the expectations of many who are electing these governments are way out of whack with reality.
I’ve just applied for CPP before they decide to change the rules on that.
I am really starting to believe the way forward is a tax on idiots. Given the clowns we have sent to Ottawa, there will be enough within the federal Liberals, to balance the budget and probably pay off the entire debt.
I think sunny ways is letting someone else pay for all of this. I’m done.

#137 fishman on 02.17.17 at 1:26 am

Trump’s news conference today was the most entertaining political stuff since Nigel routinely eviscerated Euro weinies. Trump evokes the blackness & irony of the New York Jewish comedians like Groucho, Milton Berle,Mel Brooks combined with the cities patter of wisecracking “wise guys”.
Jim Acosta from CNN kept interrupting & weaselled his way into extended unpresidental banter. Trump was setting him & us up as his new Labour appointee is also named Acosta. So Trump gets the last word by saying we got to check this reporters “family tree” Priceless.
It was like you were a kid in school & a grandmaster comes into the lunch room & plays 15 games simultaneously against the school chess club members & cracks jokes the whole time. And beats everyone.
After this delightful tasting, going back to lil potato answering questions from CBC & CTV will be as sitting on the couch obediently watching your main squeezes Valentines day’s movie pick.

#138 Ponzius Pilatus on 02.17.17 at 1:36 am

#114 Barb on 02.16.17 at 10:18 pm
“What does Canada do now that Chinese buyers are dropping out?”

—————————————-
The year of the Fire Rooster isn’t a good year to purchase real estate.
They’ll be back.
———–
Next year is the Year of the Two Horned Octopus.
According to my Chinese wife, not a good year to buy real estate.
Feng Shui Master Sherman recommends to be patient and wait for the Year of The Three Footed Lepraucorn 2 Years from now.
Or whatever.

#139 broader mind on 02.17.17 at 2:04 am

#86 ranter-So brilliant but I think dividends cover most sectors and a fairly large % of the Canadian market. The potential fall out for changing dividend taxation is simply very risky. T2 smart enough to leave it alone.

#140 Stock Picker on 02.17.17 at 2:33 am

Don’t trigger any capital gains….don’t rebalance…don’t sell…ever….just keep reinvesting dividends to buy more dividend paying stocks. Starve the Beast…..Tru Dummy won’t be around long.

John Tory says your all barking mad…..The TO real estate market is healthy. Maybe he’s still undecided about selling his own

#141 T-Dog on 02.17.17 at 2:47 am

“They could even stop risking their after-tax income to restore a derelict general store, where 19 new jobs were created. Just saying.”
_____________________________________________

Bingo. And this is what lefties don’t get. Everything you see around you, from our universities to our health care knowledge and technology, exists because someone took a risk in the hopes of creating value. If it wasn’t for this, we’d still be living in mud huts watching our kids die of cholera or starvation. Take away the incentive to take risk, and you kill progress and torpedo our standard of living.

#142 T-Dog on 02.17.17 at 2:58 am

#39, Re: income inequality.

I don’t see too many impovershed people without a cell phone, or starving, or homeless. I don’t see them dying if sickness or starvation or lacking access to healthcare and basic services. Most homeless people are a product of addiction and mental illness; poverty is the result not the cause.

Fact is, there’s never been a better time to be poor. Your kids get world class education, your family gets world class healthcare, you won’t starve, and you’ve likely got a roof over your head, a TV, and internet access. The rest is just details.

Want more? Work for it. Not capable? A simple life ain’t so bad in Canada circa 2017 vs any other time and place in history.

#143 millenial82 on 02.17.17 at 3:01 am

Bang on. The cracks are already everywhere but only evident to few. The cost of servicing debt and unfunded liabilities is already scary never mind what’s about to be added. In our small city it’s the same old news. Let me ask you blog dogs, how much of the following sounds familiar to you? Unaffordable policing costs, bridges in dire need of repair with no capital in place, hospitals requiring major retrofits and expansion yet running deficits, shortfalls in available social housing to address exponential growth in needs, aging sewer and water infrastructure with shortcomings requiring major user fee increases…. and on and on. Of course the public sector staff are never paid enough and unions are always threatening to strike. A government, police authority, hospital, or school never came first and there’s a reason they should be always referred to as a public servants!

#144 Joe Row on 02.17.17 at 3:31 am

Garth, it makes no sense. In Alberta with high unemployment and inflated houses being just flat. There has been no decline from the high prices house level off at. So how is it we can expect a decline in the other provinces where unemployment is low?

#145 When Will They Raise Rates? on 02.17.17 at 4:30 am

#98 InvestorsFriend on 02.16.17 at 9:26 pm

The NDP won in Alberta . Trudeau won federally. Get over it. And show some respect.
—————————

https://www.youtube.com/watch?v=qhr-EeSU5dI

#146 Dan.t on 02.17.17 at 4:32 am

First the Canadian public voted in T2 so enjoy the show. He seems to be doing a good job of messing up things real good- tax the crap out of everything, everyone, make it harder for small businesses to survive but if they are going to tax investment gains, I m happy that massive real estate gains are going to be taxed too- after all government encouraged and helped created this gasbag.

Second, read the article posted here #61 dogman01 where Don Pittis talks about the greater fool. Canada is filled with tons of them and it will be hard to stop this belief.

Real estate is like religion in Canada. That is why despite clear signs of trouble ahead, the masses are STILL gorging on debt or maybe I m wrong and 450-600+k is nothing to Canadian to have livable condo or townhouse in GTA, BC , Calgary etc. Obviously Canadians have enough money to justify those prices.

All Canadians know and are taught is buy real estate because you can’t lose. Boomers did nothing but buy a place to LIVE and raise a family and have now made out like bandits. Younger generation sees this and it’s engrained in Canadian culture…plus bubble mentality, group think, will be tough to change until there is a world or hurt…and it’s coming, just takes longer than anyone thought.

Once news starts publishing negative stories and talking about decline prices and bla bla, just like they hyped it on the way up, they will execrate it on the way down- new prints what it’s told to print or prints what who ever is paying the most fees tells them to. Maybe that article by Pittis is just the start- maybe gov will start. I don’t see too much unbiased news in the mainstream Canadian news.

#147 I Agree #52 Keith on 02.17.17 at 5:15 am

In those days we had protectionism. If a company wanted to sell a product en masse in Canada, they would build a plant and manufacture for our market.

This created jobs and real wage growth. I remember those days that #52 Keith writes about where you would easily expect to get a job after school and even if blue collar, a well paying job with benefits. Also, home prices were not out of whack w.r.t. wages and the very highest of income earners paid high MTRs (e.g., 80% in 1971, 60% in 1972 – taxable income > $400,001).

Come NAFTA and WTO.

Result: an evisceration of manufacturing jobs in Canada (30% loss in jobs since then, minimum estimate), stagnant real growth in wages (all workers, not just manufacturing), a sputtering economy, unprecedented debt, MTRs drastically lowered for the very highest of income earners with no benefit to the economy other than bragging rights as to how many billionaires we have and as of 2016, majority McJob creation with fewer hours worked, lower wages and few if any benefits.

And LARGELY ignored: check out our 2013 GDP vs. 2015 GDP, yes, it has gone down by 15%.

And we think that all is fine…that a few more ETFs, TFSAs and RRSPs will fix this mess that we have gotten ourselves into, or Ponzi gamble in the RE market.

Welcome to Canada.

#148 BillyBob on 02.17.17 at 5:40 am

#110 Keith on 02.16.17 at 10:00 pm
@ #76 Billy Bob

“The standard of living in Canada is still far above nearly everywhere else in the world.” Is that your best? You’re making a relativist argument, so workers who gained so much, living in a country with growing GDP, should be content when .001% of the population takes almost all the economic growth into their pocket. Sorry Billy, historically that has always ended in tears when the revolution comes, like well, France. Google Nick Hanauer.

“Those days are gone.” Not in Scandinavia my friend. And before you pile on, google debt to GDP ratios in the world and ponder all those wonderful social programs, high union density, cradle to grave security and the awesome fiscal performance relative to Canada and the U.S. There’s a more balanced way. The price – fewer ultra rich people. That’s all. There are many forms of capitalism Billy Bob. Dog eat dog, trustafarians and winners take all is one. Consider the possibilities.

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

I did. And the possibility to leave Canada presented, and I took it, and prospered to a degree unimaginable in Canada. I would love to return, except that the level of taxation has gone from reasonable to usurious. Nowhere did I advocate laissez-faire capitalism. But I think it’s the ultimate in hypocrisy and disingenuity to try and “redistribute” wealth in an already wealthy country like Canada. If that were truly the motivation and not just simple class envy, then people would be trying to help people outside the borders of wealthy nations. I call bs. People just want something that isn’t theirs. Thus was it ever.

Save your utopian sermonizing. I am of Scandinavian heritage (Danish/Swedish) and the Nordic countries are no paradise, nor are they sustainable. Sweden for example, is suffering immensely now from their immigration policies and quietly reversing them as fast as they can. But more specifically, these countries certainly don’t enjoy the kind of y/o/y growth the US/Canada did post-WW2, which is what the other poster was waxing nostalgic about. And my comments about demographics and technology aren’t really in question.

Really, the whole attempt to compare nations of less than 10 million to Western Europe and North America with their hundreds of millions is pretty stupid.

#149 Old and dumber on 02.17.17 at 6:39 am

#121

Self directed rrsp. Invest in broad based index etf with low expense ratio (vanguard has a good selection but there is others as well). Keep adding to your portfolio year after year, in the mean time educate yourself on investing matters. Now go out and live your life for all that it’s worth, in 30 years you’ll be glad you did.

#150 Millenial on 02.17.17 at 7:00 am

#88 traderJim on 02.16.17 at 9:07 pm
Income inequality is a problem in the sense that my generation has completely screwed over the younger generations by getting government to spend like mad on us boomers and leave the check to the millenials to pay.

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

Amen.

#151 John of Grant on 02.17.17 at 7:04 am

#4 And to counter the anti-cat vitriol in today’s posting I present another selected quote from H.P. Lovecraft:

“The cat is such a perfect symbol of beauty and superiority that is seems scarcely possible for any true aesthete and civilized cynic to do other than to worship it.”

People who owned cats:

Winston Churchill
Albert Einstein

Famous dog owners:

Michael Vick
George W. Bush

————————————————-

Famous cat owners:

Blofeld
Dr Evil

A dog, on the other hand, ruled Norway.

#152 The real Kip on 02.17.17 at 7:06 am

I like Justin Trudeau. At least we’re not nearly as involved in American sponsored foreign wars caused by a failed American foreign policy. No more processions of dead Canadian boys down the “Highway of Heros”, good on you Justin!

#153 Dan.t on 02.17.17 at 7:37 am

#122 who cares about Detroit. A 6 unit -3 bedroom each- massive brick building for 499k is nothing- in greater Vancouver area you can get a 1 bedroom 700 square foot cool apartment ( maybe 2 bedroom if you are lucky- in new Westminster ) PLUS you get to commute, PLUS you may even get to work 2 jobs to make ends meet, PLUS you get to live in BC.

Seriously, Detroit is probably a bad comparison but virtually anywhere in the world, you will probably get a better deal than buying in and around Vancouver area- so sad. But the party just keeps on going. What’s wrong with everyone?

#154 Wait There on 02.17.17 at 7:37 am

When Canada is called to up their spending on NATO, you can add $20 billion per year to the deficit.,,,and the EU and USA will call on Canada to do that. Add in some mediocre growth to the GDP, and the number keeps rising. I wonder if that was included in the estimate of future deficits.

#155 Lunatic Trump on 02.17.17 at 7:44 am

OMG OMG OMG OMG !!!!!!!!!!!!!

That press conference, WTF!!!????

Trump is a complete idiot, a mentally deranged nutbar like we have never seen in office.

He makes Rob Ford seem serene and sober by comparison.

If you are a Trump supporter, what the hell is wrong with your IQ?

He must be thrown out of office. This is total craziness!

#156 Wrk.dover on 02.17.17 at 7:53 am

#35 Hairhead on 02.16.17 at 7:08 pm
To wrk.Dover et al. from the previous thread, who basically accused me of lying

———————————————-

I don’t shoot messengers, I did not accuse you of anything. The person who claims to have turned down $2500 of tax free money per day for eighty extra days is the one that I accuse of many things.

———————————-

#48 Keith in Calgary on 02.16.17 at 7:41 pm

Bought myself a 42K solid gold Rolex Submariner this week to celebrate

———————————

When you don’t work, you need a timepiece like another hole in the head. I have not had a watch since the seventies, and have yet to get a cell phone or what ever that piece of mystery plastic is that people obsess with in public places.

Who would call me? Where do I need to be at any specific time. I am retired, get it?

———————————————

and on income disparity, I see no reason for a job creator to assume it is a good profitable game plan to model a position around paying any less amount than $10/hr equalling 20 grand a year per employee.

Who is going to subsidise the employee you can’t afford to pay living wages to in order to stuff your coffers?

#157 fancy_pants on 02.17.17 at 8:02 am

time for a refresher for the free lunch voters
http://www.snopes.com/business/taxes/howtaxes.asp

#158 windjammer on 02.17.17 at 8:12 am

Garth I have been reading your blog for some time now and have followed your advice even going so far as to sell the house and open a non registered investment account to put the proceeds into.(and TFSA) Last year things went well and am looking at capital gains. I have opened an rrsp account to offset some of this and have contacted the investment branch of my bank to send me a T5? to calculate gains. Where I am at a loss is how do I calculate losses from previous years? The bank told me there is no T5 for losses so I am thinking I have to play accountant and calculate losses myself?

Thanks I have been passing your advice along to anyone who will listen.
Stay calm and watch for the signs.

#159 crowdedelevatorfartz on 02.17.17 at 8:14 am

@#112 A belieber
“Lol At least you got it right this time, I knew you could keep up. Looks like yesterday stung a little bit though”
********************************************

Ah no .
Unlike you I have real bills to pay and was busy earning something called money.
As for the previous blog post statement……..

Apparently irony escapes you

lol

#160 Incubus on 02.17.17 at 8:15 am

“So what?”

Only 67.54% of people bothered to vote in 2015 and 39.47% voted for T2.

It gives 26.65% of Canadian voted for T2. This is called a dictature not a democratie.

“They can leave the country.” They will

“They can throw in the towel and retire.” I already did it.

#161 not a snowflake on 02.17.17 at 8:16 am

maybe T2 just needs another vacation. He can jet set to a private island and spend quality time on his meditation mat. two nannies to cover the kids, a few bags of weed and the prospect of peace, love and money for all is no longer a pipe dream. With a silver spoon in one hand and a joint in the other, we’re in good hands.

#162 dr. talc on 02.17.17 at 8:18 am

people who support T2 and Morneau’s tax changes
ie ” tax principal residence”
are mostly non homeowners
but worse, they likely will not be able to become homeowners
because there will less houses built,
less for sale, less trade (multiple taxes as deterrent), more people putting their kids on title (do it while you still can) etc. all of the above shrinkage in inventory means higher prices, sorry to restate the obvious but some people still just don’t get it

#163 IHCTD9 on 02.17.17 at 8:19 am

#136 Bobby on 02.17.17 at 1:24 am
___

Excellent. I’m not loaded with piles of money for T2 to help himself to, but I am working in an industry that the Ontario Libs have been blood-letting for over a decade. I cross my fingers hoping for the basic income, because if my job goes up in smoke, that’s pretty much it for my industry in this area, only one business left here where there were 8 of them 15 years ago.

That’ll be it for my career employment, and I’ll take the basic income and find something to do with my time.

#164 You Didn't Build That on 02.17.17 at 8:20 am

Can we talk for a minute about what that money is being used for? The feds have ratcheted up capital spending to create a new Canada Infrastructure Bank and develop a stable infrastructure market through ongoing capital investment (a radical idea for a western democracy, apparently). And building things costs a lot – go figure.

You want a corollary south of the border? Trump himself is going to run deficits to fund a trillion dollar infrastructure plan, while at the same time cutting taxes.

You’ve been giving T2 and the gang a lot of heck lately for actually having the gall to look for ways to pay for the juice they’re pumping into the economy, but face facts – it’s no less Keynesian south of the border, these days.

#165 seriously? on 02.17.17 at 8:23 am

#98 InvestorsFriend on 02.16.17 at 9:26 pm
Trudeau won federally. Get over it. And show some respect.

should they take their lead from your leftist friends down south?

#166 crowdedelevatorfartz on 02.17.17 at 8:29 am

@#137 fishman
“a grandmaster comes into the lunch room & plays 15 games simultaneously against the school chess club members & cracks jokes the whole time.”
********************************************
What were you watching?
Actually . I found the whole thing quite sad and embarrassing.
Trump wasnt answering the questions thrown at him.
Trump couldnt answer the tough questions thrown at him so he resorted to his usual bullying tactics where he resorts to personal jibes and insults…..verrrrry Presidential.
He cant rule by attacking the very people who, ultimately, promote his agenda ( if he has one yet…)
I think that my earlier predictions are beginning to come true.
He cant rule by Presidential “90 day orders” indefinitely. He must eventually have cooperation from congress
The Republican Party is realizing he’s a liability to their Party and will cut off support for most of his policies and his childish procedures.
The people he’s appointed are in way over their depth and are proving it daily.
Flynn’s resignation after only 3 weeks over Russian “friendships” is only the tip of the iceberg.
The public arent buying what he’s selling and its only going to get worse. Voters expect results and when nothing has changed after 6 months….. Hooo baby, look out.
It was one thing to sit in his Ivory Tower in New York barking out “You’re Fired” for a barely literate TV audience.
This is the big time and he’s proving every day what a totally inept President he is.

.

#167 maxx on 02.17.17 at 8:34 am

#2 David on 02.16.17 at 5:53 pm

“What does Canada do now that Chinese buyers are dropping out?”

Try to get a toehold on its sanity?

#168 Alistair McLaughlin on 02.17.17 at 8:40 am

I’m neither boomer nor millennial. I’m Gen-X. From my neutral territory, it seems a little silly to blame the kids for voting T2 in. Had their parents and grandparents not voted T1 into office, and kept him there for 16 years with but a single 9 month break, we wouldn’t be talking about T2 right now. We wouldn’t even know who he is.

#169 IHCTD9 on 02.17.17 at 8:41 am

#135 Ponzius Pilatus on 02.17.17 at 1:20 am
Potholes are sprouting like mushrooms all over the Lower Mainland.
Anyone know how to fix them without raising taxes?
Ok, I know.
Let’s fire some lazy Civil Servants.
Problem solved.
__________________________________

No, let’s hire double, and pay them double. Problem solved. The more you spend, the more gets done duh!

#170 maxx on 02.17.17 at 8:42 am

#7 Ret on 02.16.17 at 6:06 pm

“What happened to, “the budget will balance itself” ???

You don’t think that he said that just to get elected, do you?”

Well put. “the budget will balance itself” may very well go down as the dumbest statement made by any politician, anywhere in the known universe.

#171 traderJim on 02.17.17 at 8:49 am

I just hope Smoking Man hurries back from Trudeau’s dad’s country and returns some sanity to this blog.

#172 maxx on 02.17.17 at 8:55 am

#12 Tudor on 02.16.17 at 6:13 pm

“Suppose that redressing income inequality is not just a pretence. Aside from taxation, how would you do it? Especially since inequality is driven by capital gains, not labour income?

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth”

We certainly are not equal- there’s them that spend on the latest gadgets and pi$$ money away without a single view to their futures and there’s them that save, invest and grow rich.
So many wealthy folk have endured far worse conditions and challenges to building a future than this generation of whiny, needy, green-eyed monsters.
Weak, spoiled rotten, with most of their adaptability sapped by stupid boomer helicopter parents.

#173 IHCTD9 on 02.17.17 at 8:57 am

#131 Longterm on 02.17.17 at 12:36 am
Keith, you’re the only sane and analytical person on this blog.
_________________________________________

Yep, every single person here is mixed up – except for Keith (and presumably you) LOL!

Why don’t you two buddy up and head for Sweden?

#174 Ret on 02.17.17 at 9:07 am

#147 I was shocked by this statement..”And LARGELY ignored: check out our 2013 GDP vs. 2015 GDP, yes, it has gone down by 15%.”

But here is a link that supports that statement…

http://www.tradingeconomics.com/canada/gdp

I looked for some GDP per capita numbers. In the following link, the CDN GDP per capita vs. the US GDP per capita is even more depressing.

In Figure 1, only three provinces are above Michigan’s GDP per capita and only one of those is above the US overall average, Alberta. The numbers are from 2014, so Alberta’s GDP would probably be not as strong as it shows here.

West Virginia shows a higher GDP per capita than four Canadian provinces. That can’t be good.

https://www.fraserinstitute.org/sites/default/files/comparing-recent-economic-performance-in-canada-and-the-united-states.pdf

More bike lanes and selfie trade tours won’t fix this mess.

#175 Ace Goodheart on 02.17.17 at 9:18 am

There’s all this stuff being said right now about how Trudeau’s dad was this big spender and the mess he made of this Country. Then everyone looks at T2. It must be hard living your life being judged by the yardstick that is your father. That is quite the shadow to walk around under.

I’m not buying most of the stuff that is being talked about, ie the huge deficits and all the new taxes.

Looks to me like someone in Parliament has noticed that people in Canada, for whatever reason, are blatantly and arrogantly ripping off the government by not declaring capital gains taxes on residential real estate held as investments.

This situation hurts all of us.

A house, which is bought as an investment, never lived in, and then sold for what are now millions in profits, is a taxable capital gain, folks. I know it hurts, but what is happening is tax evasion. It is actually punishable by jail time, if we had a less friendly government. It is the same as a business under declaring its income.

We now are in this situation where the government has to track residential real estate sales, because a small group of people have been dishonest. I don’t know what else you would expect the government to do. They are being ripped off and they are doing something about it. If you are actually living in your house you have nothing to worry about.

#176 tkid on 02.17.17 at 9:53 am

#121, the self directed RRSP. You can transfer funds into the self directed RRSP, triggering your tax refund, but wait to invest until you are sure of what you would like to invest in. From inside the RRSP you can buy GICs, stocks, ETFs, mutual funds, etc.

#177 When Will They Raise Rates? on 02.17.17 at 10:16 am

#175 Ace Goodheart on 02.17.17 at 9:18 am

Looks to me like someone in Parliament has noticed that people in Canada, for whatever reason, are blatantly and arrogantly ripping off the government
—————-

Looks to me like people in Canada have noticed that someone in Parliament, for whatever reason, is blatantly and arrogantly ripping off the people

^ FIFY

#178 IHCTD9 on 02.17.17 at 10:17 am

#143 millenial82 on 02.17.17 at 3:01 am
___

Yep all that is familiar. I’ve looked at the situation over several years and have decided that (again), the only fix is massive earth shaking crisis or total bankruptcy of the City. The City can’t control Police or Fire Fighter costs. Their Unions never negotiate in good faith and always force talks into binding arbitrations where big retroactive raises are always handed out, retention bonuses too if you can believe it. The Cities have appealed to the Province for change, but so far have gotten a deaf ear.

Hospitals are being gutted by the Province as well, there’s never enough money, and any improvements the Province/City tries to make always turns into a 10X over budget boondoggle – what else is new.

Taxes and fees are sailing into abuse territory. A new subdivision house in a small dying 15K redneck town out my way will run you $6000.00/yr for taxes/water/sewer MINIMUM. The head librarian in this same town makes 130K per year, there are probably 6-7 empty papered over storefronts on the main drag. The big mills that now represent a huge percentage of the economic activity for the city keep getting hit with legal issues, environmental issues, trade disputes, labour disputes and strikes. The last strike came within inches of closing the front doors for good.

The last 20 years have seen over 12 big corporations move their manufacturing out of this small town – thousands of jobs gone. Not one of them got replaced with similar new business moving in – ZERO. Several plants have been bulldozed flat, others still stand empty after two decades with taxes still being paid to avoid cleaning up the chemical disaster that lies under the concrete.

The revenues are down huge, bridges need work. The only way to attract new business is to keep the taxation low, it’s an almost impossible scenario. That leaves property taxes and fees. 5+% hammerings every year. Folks are starting to get pissed – they’re not getting anything at all for the additional costs, and they all know half the civil servants downtown are on the sunshine list.

There is no way to fix it, the public servants raking it in will gorge at the trough until someone takes it away. The Cops and Firefighters have it made in the shade because no Provincial politician has enough balls to take their Unions on.

Read about Amhertberg, Ontario which went broke because dumb-assed civil servants on the sunshine list spent like they were drunk and stoned in Vegas via several projects they could not afford.

Or Springhill, Nova Scotia which was bankrupted by their Police dept. pension obligations.

All you can do is keep your ear to the ground, and sell before taxes hit the point where they start devaluing your property values.

#179 cramar on 02.17.17 at 10:31 am

In the mid 1960s, sometimes I would catch on U.S. radio Paul Harvey’s comments. I might have even heard this one in 1965. Today I am stunned how accurate some of his predictions were; how many have come to pass.

It is especially prescient to this blog’s subjects of late when he talks about Washington and “taking from those that have . . .”

A warning from 47 years ago:

http://stg.do/9LDc

It is worse since he did not foresee a legitimized LGBT community, unisex washrooms, and legalized pot!

#180 Tax Resistance on 02.17.17 at 10:33 am

“No doubt the raising of a very exorbitant tax, as the raising as much in peace as in war, or the half or even the fifth of the wealth of the nation, would, as well as any other gross abuse of power, justify resistance in the people.” ― Adam Smith (1763)

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ― Winston Churchill

#181 ALFRED E. NEUMAN on 02.17.17 at 10:40 am

VERY LIKELY:
the more of our money that gets taken by goverment, the more accountable our elected will become for what they do wih it.

And instead of our whinging from the sidelines, we’ll get more involved .. not because the usual few wish to, but because we’ll realize that simply, WE ALL have to.

And that, will be a good thing for us, and our country. As the consequences of us NOT participating in what goes on, are becoming too, too costly to ignore.

#182 The Technical Analyst, CSTA, CPD on 02.17.17 at 10:40 am

#98 InvestorsFriend, #64 Jay
The Reason the NDP Won in Alberta

While living in Calgary I asked the same question since the NDP won, did you vote NDP? 64% of Albertans voted for the NDP, but I couldn’t find ANYONE who admitted to voting for NDP. Is anyone happy with the NDP in Alberta? None I could find.

I don’t really care who someone votes for, as long as they vote.

#183 Reply to #148 on 02.17.17 at 10:46 am

Usurious is to interest, as exorbitant is to taxation.

#184 SunShowers on 02.17.17 at 11:02 am

When was there not income disparity? Like it not, this is a characteristic of capitalism. We are not all equal. — Garth

————————————————–

When was there not terminal illness? Like it or not, this is a characteristic of being alive. Guess we should all just give up and croak, eh? Doesn’t sound very entrepreneurial!

In all seriousness though, there will always be income inequality because there will always be lazy people and hard working people, lucky people and unlucky people, smart people and dumb people, and so on.

But don’t pretend that the extent of inequality that we’ve seen, with large corporations and the investor class capturing NEARLY ALL of the wealth gains of the last few decades of globalization, is even remotely justifiable or sustainable. You can realize it now, or when, as Nick Hanauer says, when the pitchforks come.

Hiking the capital gains inclusion rate is a good move, but it needs to accompany a REDUCTION of marginal (and/or consumption) tax rates, not creating newer, higher ones. Most people work for their income, let them keep more of it so THEY can be part of the investor class using TFSAs/RRSPs.

#185 Keith on 02.17.17 at 11:04 am

#148 Billy Bob

The fact that you left Canada in part for financial opportunity speaks volumes about what motivates you and your perspective on this country. Congratulations on making that move and making it work.

The issue isn’t that Canadians are starving in the streets, or that technology raises most/all boats, it’s the trends on income and taxation that left unchecked that will lead to serious problems.

I was in Stockholm a few years back. Never seen a cleaner city in my life, except Disneyland in 1970. No street homeless either. All western countries are having their issues with integrating immigrants

You really need to read Warren Buffett’s latest annual report and letter to shareholders. I’ll super summarize the salient points:

1. Low rates of growth, even 2% real are not a problem in a mature western economy. You will still double GDP per capita in 35 years, quadruple in a 70 year lifetime.

2. U.S. doesn’t have a income issue, it has an income and wealth distribution issue.

3. Buffet has a small head office, where he pays the lowest rate of personal income tax. The lowest income employee is his personal secretary, who pays the highest. This is wrong.

The low rate of growth in Scandinavian countries hasn’t hurt them fiscally, bore out by their lower debt to GDP ratios than Canada or the U.S., despite their far more generous social programs. How is that even possible?

I really really really don’t understand the population argument that you and others make. If a country of < 10 million can have comprehensive social programs, it will be even cheaper in a country of 50 million or 100 million. Economies of scale. Nothing wrong with treating all citizens with dignity. Those who don't like it, who are driven more by the dollar, can leave for a society where those opportunities lie, as you did. I would argue if the Canada of today is too "socialist" for you, even though it's far less so than it was 50-60 years ago you made the right choice to leave, but you are an outlier in terms of your motivations.

#186 DoomandGloomer on 02.17.17 at 11:08 am

Very depressing and scary posts these days.
How do we avoid this?
What’s the plan folks?

#187 Another Deckchair on 02.17.17 at 11:10 am

#175 Ace Goodheart –

Thank you (and Metaxa) for your continued sane and sound comments.

You are absolutely right when you say that those not declaring capital gains hurts all of us.

#188 TRT on 02.17.17 at 11:10 am

#155 Lunatic Trump on 02.17.17 at 7:44 am
OMG OMG OMG OMG !!!!!!!!!!!!!

That press conference, WTF!!!????

Trump is a complete idiot, a mentally deranged nutbar like we have never seen in office.

He makes Rob Ford seem serene and sober by comparison.

If you are a Trump supporter, what the hell is wrong with your IQ?

He must be thrown out of office. This is total craziness!

————-
Trump is a democratically elected leader. Are you suggesting a coup against the will of the people in a democracy? BTW IQ 99%tile

#189 IHCTD9 on 02.17.17 at 11:11 am

#171 traderJim on 02.17.17 at 8:49 am
I just hope Smoking Man hurries back from Trudeau’s dad’s country and returns some sanity to this blog.
________________________________________

He’ll be back soon, Cigar in one hand, Rum in the other.

#190 Ezra on 02.17.17 at 11:45 am

All I can say is I’m a millennial and I’ve never been more displeased with the federal and provincial (Ontario) governments than I am now. This is actually quite disgusting, and I suspect, when my time comes, I’ll spend my retirement years in the USA.

#191 Another Deckchair on 02.17.17 at 11:47 am

For those who complain about the government; do us a favour, go and work for them.

I’ve spent 1/2 of my career in the Federal Government, the other half in private industry. (currently running my own incorporated business).

People are the same everywhere; some good some bad.

Recently went to a new-to-me passport office; long lineups, which from a store owner in the building, is the same every day, all day. The young lady who served us (after close to 2 hours in a line up) was MOVING like nobody I’d ever seen in private enterprise. I was REALLY IMPRESSED. Actually, everybody in that office was earning their salary serving the public – if anybody knows anyone working for the passport office at “Meadowlands” in Ottawa – please tell them their efforts were noticed by myself and all the others I talked to in the lineup – thank you for your day in/day out effort.

#192 InvestorsFriend on 02.17.17 at 11:49 am

Did Trudeau REALLY say “the budget will balance itself”?

The full quote is : “the commitment needs to be a commitment to grow the economy and the budget will balance itself”

*************************
I would say that the half sentence was taken out of context of the full sentence and that it is ignorant (in one or both senses of the word) to quote the half sentence only.

#193 InvestorsFriend on 02.17.17 at 12:05 pm

On GDP, be careful with the math

#174 Ret on 02.17.17 at 9:07 am said:

#147 I was shocked by this statement..”And LARGELY ignored: check out our 2013 GDP vs. 2015 GDP, yes, it has gone down by 15%.”

But here is a link that supports that statement…

http://www.tradingeconomics.com/canada/gdp

I looked for some GDP per capita numbers. In the following link, the CDN GDP per capita vs. the US GDP per capita is even more depressing.

***********************************
Canada’s GDP most certainly DID not fall 15% from 2013 to 2015.

This error probably comes from taking Canada’s 2013 GDP in Canadian dollars and Canada’s 2015 GDP in Canadian dollars and then converting BOTH to U.S. dollars using the current or 2015 exchange rate. That is mathematically wrong. You would have to apply the 2013 U.S. exchange rate to Canada’s 2015 GDP. Otherwise you are retroactively changing the 2013 GDP of Canada. (Also you are quoting Harry Dent, laugh out loud)

GDP is meant to be a measure of activity. Canada’s economic activity most certainly did not fall 15% in that period. Would common sense not tell you that?

#194 BobC on 02.17.17 at 12:22 pm

#155 lunatic Trump

Typical empty liberal rant. Forget his personality. What has he actually done that your against or believe is wrong?

#195 InvestorsFriend on 02.17.17 at 12:23 pm

Math CAN be Hard (See Labour Force Participation Rate)

Many people wail that the labour force participation rate is down and predict doom.

One response is that we have more older people and since the labour force includes everyone from age 15 to infinity, THAT might explain it.

No, the doomers respond, look; the labour force participation rate for older people is actually up, so more old people do NOT explain the lower overall participation rate.

But wait. The math is a bit more complicated. Suppose 80% of those aged from 25 to 55 are in the labour force (working or at least looking). And suppose only 30% of all those over 55 are in the labour force (the rate being low because it includes those over 65, over 75 etc.)

Now if the over 55 group becomes a larger part of the population (which it certainly has) and even if the participation rate in that group was up a bit, could that not still pull down the overall participation rate? Yes it could.

This is just something I thought of the other day and it shows how people can use figures to arrive at wrong conclusions. It happens ALL the time.

Possibly the labour force participation rate in the key 25 to 55 age did temporarily dip a bit. But clearly the overall labour force participation rate is going to continue to decline simply based on demographics as the population ages. And that is actually good news for millenials.

#196 traderJim on 02.17.17 at 12:32 pm

wow.

Not sure if someone already posted this, but just, wow.

http://m.torontosun.com/2017/02/16/real-estate-market-almost-at-a-crisis-situation

For those who don’t know, Taunton road is like a mini-highway going east to the hinterlands of civilization in Oshawa.

It would be the absolute worst commute to Toronto imaginable. 1 1/2 hours each way during rush hour (so from 6 am to 10 am and 2 pm to 7 pm). That’s if you are lucky.

If this is not just some crazy one-off, it looks like the blow off top I am expecting due to lack of listings is happening.

And there’s no way this is a $1.1 million place listed for $699k.

$699k sounds like a ridiculously high number for this, if you know the location. This is NOT Toronto. There is empty land around this area for miles. You can drive straight north from there for 100 miles and all you see is the odd farmhouse.

Craaaaazy.

Going to have to get some popcorn.

#197 traderJim on 02.17.17 at 12:37 pm

There are inequities in the tax system, and in our system of government, no question.

My personal view is that government tax policies are unfair, and that’s partly due to the very rich having lobbying power.

I also think rewarding people for doing nothing and punishing people at ever increasing rates for being productive is a recipe for disaster, which we are seeing now.

Other people think that we just need more of the same.

Guess we have to agree to disagree.

#198 Eks dee Sipal on 02.17.17 at 1:01 pm

“Any economic system based on greed will ultimately fail” – xdisciple

All I see in the comments section are greedy buggers now exhibiting fear and wanting to run away like cowards. “I worked so hard for my money, even denying my own family, so that makes me right”. WRONG.

Your real rulers (previously known as Royalty) will never allow you to be actually free. Even a free range chicken will get eaten. The war is for your mind.

#199 For those about to flop... on 02.17.17 at 1:16 pm

Pink Snow falling in Surrey.

These guys with their latest reduction fell into Pink Snow territory.

They purchased this place for 888k in May 2016 and now have it on for 5% more than they bought it for in a city where houses are selling 8% lower than the same time last year…

M42BC

8234 151A st Surrey

Nov 7:$949,000
Feb 16: $938,000
Change: – 11000.00 -1%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3N1g1Ug==

#200 For those about to flop... on 02.17.17 at 1:35 pm

This one is not pure Pink Snow yet but these guys must be getting nervous.

They shelled out 3.4m for this place in March 2016 and after putting back on the market in the fall last year are being made to sweat it out.

It’s bloated 2106 assessment came in at 3.37m but they are still good for a 15% profit if they get their price ,but in the land of entitlement this one has not gone to plan so far…

M42BC

5830 Alma Street, Vancouver

Oct 15:$4,398,000
Feb 16: $3,880,000
Change: – 518000.00 -12%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMFQ1WQ==

#201 IHCTD9 on 02.17.17 at 1:37 pm

#185 Keith on 02.17.17 at 11:04 am
——-

Do a thought experiment, imagine what would be required to achieve utopia, everyone has an equal share of everything.

You’ll discover you’ll never get there if folks are allowed to not work, and if folks are allowed to leave the country.

Well before any sort of income equality emerges you’ll be fighting an uphill battle against those who won’t work, and those wealthy workers who leave taking their share of the pie with them, or export their wealth to where it can not be taken away.

Sweden etc is doing better than us yes, but the tables are turning, and the already super high costs will only increase despite the growing inequality.

As I said the other day, my fair share is determined by me, your fair share is determined by you, the government passes laws and crosses its fingers and hopes for a good result.

You can’t legislate equality if people are allowed to not work, and are allowed to leave the country. If you try, eventually, you will get a country full of low-and-no wage workers, the private wealth of the nation will have exited long before the army is called up to stem the tide.

#202 cramar on 02.17.17 at 1:45 pm

#155 Lunatic Trump on 02.17.17 at 7:44 am

OMG OMG OMG OMG !!!!!!!!!!!!!

That press conference, WTF!!!????

Trump is a complete idiot, a mentally deranged nutbar like we have never seen in office.

He makes Rob Ford seem serene and sober by comparison.

If you are a Trump supporter, what the hell is wrong with your IQ?

He must be thrown out of office. This is total craziness!

—————-

Well it depends which side you are on and what colour glasses you are wearing.

https://www.wired.com/2017/02/saw-trumps-press-conference-depends-watched/

For me it’s “Whatya expect?” As I’ve said, the ultimate narcissistic society has elected someone in their own image after their own likesness—the ultimate narcissistic billionaire!

Fifty years ago people would elect leaders with character. Someone who leads by setting the example. Today, in a narcissistic society, character doesn’t count. So you end up with just a mirror of society, not an example of someone that rises above ego and human nature to lead in the right direction. Drain the swamp he said! It is being replaced by a toxic waste dump.

I predict there will be an impeachment attempt against Trump eventually. Whether it works will depends on how good the case is.

#203 IHCTD9 on 02.17.17 at 1:56 pm

#179 cramar on 02.17.17 at 10:31 am
—–

Wow, that was unbelievable! 99% bang on the money.

#204 Keith on 02.17.17 at 2:04 pm

@ #201

All I am advocating is true progressive taxation, sufficient to sustain a civilized society, and regulation as needed to curb the excesses of the market. I am in no way advocating a system where the government takes in all the income and divides it equally amongst the citizens, and I am curious as to what I said that would lead you to that conclusion.

It seems to be a sad go to position to accuse people who advocate a fair and progressive tax system of wanting to be like Cuba or Venezuala. There are dozens and dozens of interpretations of capitalism. There is more than one alternative to our current crony capitalism.

#205 westcdn on 02.17.17 at 2:17 pm

The Calgary municipal employees are annoying me. The police service just got a 2.5% wage increase. This sets the standard for the rest of the union workers.

http://www.calgary.ca/cps/Pages/Working-for-Calgary-Police/Police-officer-careers/Calgary-Police-Service-salary-and-benefits.aspx

Do Canadian soldiers who actually get shot at get so much?
http://forums.canadiancontent.net/canadian-politics/47020-how-much-do-canadian-soldiers.html

#206 For those about to flop... on 02.17.17 at 2:20 pm

This is an extreme example of why I stated that a lot of people who over bought it in 2015 are on notice with this correction ,but let’s go big or go home.

In July 2015 they purchased this house with acreage for 4.15 million

At the time it was only assessed at 1.32million so they got carried away by the best part of 3 million.

The assessment last year caught up a lot but still fell way short at 3.37million.

I have studied the documents and listings and there is no mention of a new house and is listed as a 2003 building,albeit a beautiful log cabin style.

This is not your average house but that does not change the fact that the average sale price in Langley is down 14% from this time last year…

M42BC

447 232 Street, Langley

Oct 24:$5,300,000
Feb 16: $4,888,000
Change $412,000. – 8%

https://www.zolo.ca/langley-real-estate/447-232-street

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

#207 InvestorsFriend on 02.17.17 at 2:33 pm

Please, Contrary Facts Are Not Welcome

Another Deck chair at 191 said the following about a government worker:

The young lady who served us (after close to 2 hours in a line up) was MOVING like nobody I’d ever seen in private enterprise.

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

Oh dear, that will cause a few heads to explode. A large portion of people are convinced that just about every government worker is lazy, unproductive and over-paid.

They even argue that every task performed by a government worker is somehow “paid for” by the private sector. By that logic, a painter in the private sector creates value such as by applying paint and labour to create a finished and protected wall. The same worker if employed by government does not add any value, they say.

The vast majority of minds are already made up and any facts to the contrary on government workers, RRSPs, real estate agents or what have you are unwelcome.

Nevertheless, thanks for sharing. It’s a good story. We should all give praise where praise is due as often as possible.

#208 crowdedelevatorfartz on 02.17.17 at 2:42 pm

@#194 BobC
“What has he actually done that your against or believe is wrong?”
********************************************

Gee. Where do we start.
Calling all Mexicans rapists and murderers?
Saying Putin isn’t a “bad guy”?
Cant be “bothered” with producing his tax records?
Wont divest himself from the Trump Hotel Chain ( stay tuned for this weekends protests in Vancouver ).
Mocks reporters that ask him pointed, direct questions about his policies.
Accuses news agencies of being “bad” fake news with no evidence.

We could go on and on and on but what is the point.
All Trump believers wont listen anyway.
Its all a “conspiracy” by the “elites”……….

I really don’t care.

Trump is sinking himself.

#209 InvestorsFriend on 02.17.17 at 3:00 pm

Math is Hard

Above I said:

Canada’s GDP most certainly DID not fall 15% from 2013 to 2015.

This error probably comes from taking Canada’s 2013 GDP in Canadian dollars and Canada’s 2015 GDP in Canadian dollars and then converting BOTH to U.S. dollars using the current or 2015 exchange rate. That is mathematically wrong. You would have to apply the 2013 U.S. exchange rate to Canada’s 2015 GDP. Otherwise you are retroactively changing the 2013 GDP of Canada. (Also you are quoting Harry Dent, laugh out loud)

GDP is meant to be a measure of activity. Canada’s economic activity most certainly did not fall 15% in that period. Would common sense not tell you that?

**************************************
Upon reflection my second paragraph is backwards. You would need to use the current exchange rate both years. But the main point is that Canada’s change in GDP is a lot better measured in Canadian dollars since we mostly spend in Canadian dollars.

The point remains that it is crazy to to claim That Canada’s GDP declined by 15% from 2013 to 2015. If we start calculating that in various currencies we would get a different change with every currency we use. For Canada it is the Canadian currency that matters the most, by far. The U.S. currency matters somewhat but not like the Canadian currency.

#210 Ole Doberman on 02.17.17 at 3:09 pm

really! it’s this easy to track foreign investors in securities but nobody ever has real numbers of foreigners buying homes in Canada

http://www.bnn.ca/foreign-investors-set-new-record-with-2016-canadian-securities-investments-1.674499

#211 Reply to #194 on 02.17.17 at 3:21 pm

Do you want a list going back 40 years, the last 4 weeks, or the last 24 hours?

#212 Barb on 02.17.17 at 3:51 pm

“…The new deficit is forecast to be over $25 billion, followed by one of at least $28 billion.”

—————————————————-

$25 billion…must be a crapload of $3,000 hammers, coz I don’t see any new bridges, water treatment plants or highways from my window.

Is there a list detailing what T2 has “created” with the $25 billion? If so please post its link.

#213 Principal Residence on 02.17.17 at 4:01 pm

Here’s the Income Tax Folio (S1-F3-C2) dealing with principal residence:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f3/s1-f3-c2-eng.html#N1026F

“Income Tax Folios will be replacing interpretation bulletins over the next several years as the technical content is updated.” ― Canada Revenue Agency

#214 jess on 02.17.17 at 4:29 pm

“The SEC after the Financial Crisis: Protecting Investors, Preserving Markets”

Chair Mary Jo White
The Economic Club of New York
Jan. 17, 2017

…”Another current trend pushing against the independence of the Commission are the legislative proposals from Congress seeking to remake our rulemaking process. The House passed a bill just last week that would impose conflicting, burdensome, and needlessly detailed requirements regarding economic matters in Commission rulemaking that would provide no benefit to investors beyond the exhaustive economic analysis we already undertake.[23] These requirements would also prevent the Commission from responding timely to market developments or risks that could lead to a market crisis. And elements of the CHOICE Act, which could be re‑introduced this session, would similarly undermine agency rulemaking as well as cripple our enforcement capabilities.[24] The next Commission must continue to challenge these efforts, and so should all of you.
https://www.sec.gov/news/speech/the-sec-after-the-financial-crisis.html

115TH CONGRESS 1ST SESSION H. R. 78 AN ACT
To improve the consideration by the Securities and Exchange Commission of the costs and benefits of its regulations and orders
https://www.congress.gov/115/bills/hr78/BILLS-115hr78eh.pdf

====================
Financial Reform Newsletter
February 16, 2017
A New Model for SEC Enforcement: Producing Bold and Unrelenting Results

Chair Mary Jo White
New York University School of Law Program on Corporate Compliance and Enforcement
New York University School of Law Pollack Center for Law and Business
https://www.sec.gov/news/speech/chair-white-speech-new-york-university-111816.html
Nov. 18, 2016

…”Use of Data Analytics to Uncover and Investigate Misconduct

SEC: Citigroup Provided Incomplete Blue Sheet Data for 15 Years … that Citigroup Global Markets has agreed to pay a $7 million penalty and …
Jun 29, 2016 – FINRA Fines Deutsche Bank Securities Inc. $6 Million for Submitting Inaccurate and Late Blue Sheet Data. inaccurate trade data to the agency and the U.S. Securities and Exchange Commission for seven years, the largest FINRA fine to date for botched trade sheets.
The blue sheets are logs of trade information that include data about securities, trade dates, prices, quantities, customers and transaction types, and is used by agencies to help with investigations into market manipulation.

The fine is the largest FINRA fine to date for inaccurate blue sheet submissions, following on the heels of a $2.95 million fine the Wall Street watchdog levied against Macquarie Capital (USA) in December 2015.
https://www.law360.com/articles/812222/deutsche-bank-pays-record-6m-finra-fine-over-trade-data

#215 Euro observer on 02.17.17 at 4:30 pm

#14 InvestorsFriend

Inflation excludes ‘volatile items’ like food, energy.

CAD collapsed 20 % against USD in the last 2 years.
Do you really believe with all produce imported from US the inflation is 1 % in CAD?

I don’t believe it for a moment.

With inflation of 1 % annually that roast chicken dinner has gone from 4.49 to 8.49 at Jummy the Greak,
while size of the meal/and the plate was reduced.

Hydro bills have doubled compared to 2 years ago.

1 -2 % inflation? No way. 6-8 % is my number, including housing.

Here is more on the CAD:

https://ca.finance.yahoo.com/news/canadian-dollar-investors-nervously-eye-u-border-tax-194607616–business.html

going down the drain.

#216 BobC on 02.17.17 at 4:30 pm

He said this, he said that, smh. I asked what has he actually done that bothers you.

#217 Blacksheep on 02.17.17 at 4:41 pm

Flop, I’ve been reading your ‘Pink Snow’ reports.

In these examples, like most I’ve read, no one has actually lost any money.
——————
Flop # 200

If this house sells at the reduced asking price, like you suggest, the seller will be ahead $ 480,000.
——————
Flop # 206,

If this house sells at the reduced asking price, the seller will be ahead $ 738,000.
——————
Sure some fees will apply, but that’s still a hell of a lot more money than the average Vancouverite makes, in less than 12 months.

These are typical of the scenarios your profiling, but to me they don’t seem so dire.

Where is the blood in the streets and the nashing of teeth?

When will the vulching commence?

#218 in kind to RRSP on 02.17.17 at 4:58 pm

If I want to transfer in kind shares that I got as an employee from the company at the time of IPO (for free) from an unregistered investment account to an RRSP account, as an RRSP contribution, what would be the contributed amount?

I got conflicting information: one source says it is the amount paid for acquiring the shares, according to other source it is the daily average of the share price on the day of the transfer.

Which one is it? It makes more sense to me if it was the price at the day of the transfer, especially if the shares were not purchased.

Thanks!

#219 jess on 02.17.17 at 5:20 pm

Trump’s team in ‘disarray,’ McCain tells Europe

MUNICH, Germany – Republican Senator John McCain broke with the reassuring message that U.S. officials visiting Germany have sought to convey on their debut trip to Europe.

#220 chopstix on 02.17.17 at 5:21 pm

vancouver sun…good analysis here of Van’s real estate situation, the china factor and the bubble
Douglas Todd: How would Vancouver’s housing bubble burst? Look to China

http://www.theprovince.com/opinion/columnists/douglas+todd+would+vancouver+housing+bubble+burst+look/12931714/story.html

#221 John on 02.17.17 at 8:06 pm

#215 Euro observer on 02.17.17 at 4:30 pm

CAD collapsed 20 % against USD in the last 2 years.
Do you really believe with all produce imported from US the inflation is 1 % in CAD?

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

Why are you posting this garbage false data, without checking your facts first?

http://www.xe.com/currencycharts/?from=USD&to=CAD&view=2Y

It looks like 2 years ago the exchange rate was 1.25 and now is 1.31. So you call 6 cents a collapse of 20%?!? You are only 300-400% wrong, you fool.

#222 Doug in Wellington (no, not Wellington County, ON) on 02.18.17 at 2:10 am

I’ve decided to leave the Forest City (London, that is) behind for a while and go on vacation. Part of this vacation should be to leave this blog behind also, but old habits die hard and the desire to put my 2 cents worth in (despite the fact that NZ has gotten rid of the penny AND the nickel) still gets the better of me.

I’ve completely lost count of how many “expert” commenters on this blog have said interest rates will stay low FOREVER. If the BG (benevolent government) is going to keep borrowing more and more and more and more money, it’s hard to see how this increased demand won’t put some upward pressure on interest rates. Something to think about if you have a horrendous mortgage where the payments eat up a lot of your income and one day you’ll have to renew.

#223 crowdedelevatorfartz on 02.18.17 at 12:57 pm

@#216 BobC
“I asked what has he actually done that bothers you….”
********************************************

groped women and bragged about it?