Think small

A few years ago, books being what they are, my long-time publisher (Key Porter) went bust. No big surprise. This industry has lived on government handouts for years. A ‘best seller’ in this land is a piteous 5,000 copies, and who can make any money on that?

Not writers. They’re lucky if a buck-a-copy materializes. Editors, printers, distributors, retailers and lawyers all make more. So, mama, don’t let your children grow up to be authors. Besides everybody now goes online to read, and they expect free. Like this pathetic blog. Worth every cent you pay for it.

Being a slow learner, I wrote another book a while back (the 15th) and decided, given my publisher’s croaking, to do the thing solo. What, I wondered, was preventing me from hiring my own editor and designer, from contracting the printing company, having tens of thousands of books shipped to my garage, then selling them online with a digital pay system and my friendly Canada Post office to fulfill orders? Nothing, actually, except a whack of upfront money. So I did.

Well, not exactly. Dorothy did.

Since I was a slave-employee at the time, and she was not, my wife set up a sole proprietorship and accomplished it all. For six months the kitchen was several feet thick in books, labels, cartons and mailing envelopes. Financially, it was a no-brainer. The profit on every book she sold equaled the return on fifteen sales by the old publisher. And no waiting six months for payment. Her SP bank account was credited before a package shipped. Sweet.

When all the books were gone, and the floor reappeared, she shut the business down, closed the business bank account, sent the HST cheque in and stopped referring to me at dinner as “The Supplier.”

With the Trudeau gang about to drop the hammer on small business incorporations, it’s worth remembering there are alternative structures, like a sole proprietorship. Incorporating a company costs money and maintaining it necessitates forking over substantial accounting fees. Once set up, companies are hard to dissolve, and constantly subject to a changing kaleidoscope of government regulations and strictures. As for limited liability – believing a company can shield you from business-related lawsuits – that’s largely a myth. If someone wants to whack you, they’ll name officers, directors and owners along with a corporate entity, and often find sympathy from the courts.

In contrast, a SP can be set up in 15 minutes or so, online, cost virtually nothing and still give you trade name protection. No special accounting costs, either. All revenue is added to your personal income and expenses are deducted from it. You pay tax like everyone else, but unlike salaried employees there’s no withholding tax and everything you use to earn revenue – from staples to travel to clothes and a portion of your house – can be written off. Employees may be hired, along with contractors and suppliers. When the project is over, just wind ‘er up.

Taxes? Paid at the normal rate, determined by the profits your business actually made. HST has to be collected if the enterprise books more than thirty grand a year – but you also don’t pay any sales tax on stuff you buy. All of it’s deductible as an input tax credit.

So a sole proprietorship is simple, quick, robust, effective and cheap. No, you cannot do fancy stuff like income-split with your newborn, claim a capital gains tax exemption when you sell, issue preferred shares to friends, enjoy a lower tax rate on retained earnings or pay yourself in tax-advantaged dividends. But a lot of those historic advantages of incorporation are about to be blown up by people who understand how to get elected, but know not risk.

SP entrepreneurs usually don’t score business loans, either, so be prepared to borrow against your house or cash in an RRSP to secure initial funding. You’ll also need a separate bank account for the business, a good bookkeeping program, and a stomach for risk. Profits are personal income, but losses are personal, too. You’re responsible for every bill and debt, as if they’d been incurred running the household.

When should you incorporate? Probably when revenues are in the hundreds of thousands a year, and recurring, when you’re hiring a bunch of folks, acquiring real estate or other big assets, or your spouse can no longer find the fridge and wants you out. Also, obviously, when we all know what T2 is about to do to kneecap the men and women who played by all the rules, stomached risk and rolled the dice of small business ownership.

Living small. The new big.

151 comments ↓

#1 Victoria Real Estate Update on 08.20.17 at 3:26 pm

JULY: DEMAND FOR DETACHED HOMES CONTINUES TO DRY UP ACROSS GREATER VICTORIA

In July, detached sales were:

* 20% lower than in July 2016. Sales have been lower year-over-year every month in 2017.
* Lower than in the same month in 2015 for the fourth month in a row. ( -11%)
* Only slightly higher than July 2014’s sales total (5 more sales).
* Lower than Victoria’s 5-year average (even with 2013’s unbelievably weak sales total).
* Lower than in the same month in 2007 for the fourth month in a row (2007 was an average year for sales in Victoria using a fair comparison). ( -21%)

A “PROFESSIONAL” PREDICTION

On January 3, 2017, realtors at the Victoria R/E board predicted: “Demand Likely To Continue In 2017”. Then Mr. Market proceeded to quickly prove them wrong.

Forget about demand keeping up with 2016, buyers have left the scene in droves and now 2015 numbers look strong compared to what we have seen in recent months.

And now demand has tanked down to levels seen in 2014, which wasn’t exactly a strong year for sales in the region.

Demand for detached homes has already weakened considerably and the coming mortgage rule changes at both the federal and provincial levels as well as rising rates will not act to stimulate demand.

Yet, Victoria realtors are still claiming that prices will shoot higher year after year and that there will be no price correction.

LOW INVENTORY

Real estate is basic:
Stronger demand = more sales = higher prices
Weaker demand = fewer sales = lower prices

A housing bubble is an abnormal and extreme situation for a housing market to be in. Bubbles amplify the human (emotional) aspect of buying and selling houses. This is part of the reason that prices don’t plateau in a bubble. When the market hints that the peak is in, sellers’s emotions become extreme and the panicked rush to the exits ensues (example: Toronto).

There is always pressure for prices to revert to the mean and in a housing bubble that pressure is amplified by a factor of a hundred due to how far from the mean prices have been pushed by lax lending standards, liar loans, speculation, etc.

With housing bubbles, sometimes abnormally low inventory can temporarily hold off the inevitable price bust even after demand has already tanked (example: Victoria right now). But low inventory is always only a temporary thing (example: Toronto in April) and the bust part of the boom-bust cycle begins when listings inevitably increase.

It would be an entirely different situation for Victoria’s housing market if no bubble existed and abnormally strong demand was the reason behind the low inventory. In that case, an increase in listings likely wouldn’t result in a substantial price correction.

But that doesn’t even remotely describe the situation in Victoria right now. We have a bubble (a huge one) and demand for detached homes has weakened considerably (back to 2014 levels). It’s clear that the inevitable increase in listings will mark the beginning of Victoria’s long-awaited price bust.

Victoria’s bubble house prices are being held at current elevated levels by a thin, fraying rope. And that rope is about to break.

(continued)

#2 Victoria Real Estate Update on 08.20.17 at 3:28 pm

VICTORIA’S DEGREE OF OVERVALUATION COMPARABLE TO TORONTO AT ITS PEAK

Toronto, Vancouver and Victoria are Canada’s most overvalued (bubble ) housing markets. Victoria (now) compares to Toronto at peak:

* From 2000 to 2017, house prices in Toronto quadrupled while gains in incomes added up to only a fraction of that amount. Similarly, in Victoria, house prices have more than tripled since 2000…

* At the peak, first-time buyers in Toronto and Victoria had to save for a similarly ridiculous number of years for a pathetic 5% down payment.

* Both Toronto and Victoria experienced substantial speculative frenzies as prices soared toward the peak.

SPECULATION AND HOUSING BUSTS

History has shown with several decade’s worth of housing bubbles from all over the world that those markets with the highest levels of overvaluation and the highest levels of speculation experience the worst price busts.

The US experience was no exception. Some American cities experienced Victoria-like levels of speculation and (less than) Victoria-like levels of overvaluation. The result: major price busts:

San Francisco: -45% … Los Angeles: -41% … San Diego: -42% … (Case-Shiller index)

Other American cities that experienced minor price run-ups and didn’t have Victoria-like levels of speculation experienced minor price declines.

Dallas: -11% … Boston: -18% … Denver: -12%

How does Canada’s bubble compare to the 2006 American bubble? Well, the Economist had already declared in 2011 that “Canada’s Housing Market More Overvalued Than U.S. At Its Peak”.

UP NEXT: CANADA’S PRICE BUST (ALREADY IN PROGRESS IN SOME CITIES)

History fails to provide the world with even one example of a housing bubble that managed to avoid the brutally destructive bust part of the housing bubble boom-bust cycle.

#3 For those about to flop... on 08.20.17 at 3:41 pm

CONFIRMED PINK SNOW.

This is one of the cases I asked the realtors on here to help me with by showing real time transaction and I got the cold shoulder and now I know why.

The details…

Paid 1.32 July 2016

Sold 1.22 July 2017

Roughly a 12% loss after known expenses and roughly 160k loss on a condo flip gone wrong…

M43BC

https://www.zolo.ca/vancouver-real-estate/38-w-1st-avenue/1401

https://evaluebc.bcassessment.ca/property.aspx?_oa=RDAwMDBYMFQ3OA==

#4 InvestorsFriend on 08.20.17 at 3:43 pm

Garth’s wife’s sole proprietorship

Say 5000 books sold. Garth presumably got $5000 or so taxable income, same as with his previous publisher.

Dorothy likely got far higher profits and got to maybe write off a small portion of household expenses that would have been incurred anyhow but which are fairly attributed to the business.

In this case Dorothy did all the publishing work so it is fair the profits were reported in her name.

It is the rare gem of a spouse who takes on a chore like this. Well done.

#5 For those about to flop... on 08.20.17 at 3:43 pm

CONFIRMED PINK SNOW.

Well,here is confirmation of the biggest loss I have recorded since my study on the Vancouver real estate market started.

I do original reporting and research and don’t go regurgitating someone else’s porridge.

The details…

Paid 5m in April 2016

Sold 4.4 m in July 2017( the deal was done in late May)

Roughly a 17% loss after expenses and approximately 850k mistake with known expenses.

Seems like it is only a matter of time before someone takes a million dollar hit…

M43BC

Sold on May 22
4765 Pilot Rd West Vancouver 5m.paid asking 5.295

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

https://www.zolo.ca/west-vancouver-real-estate/4765-pilot-house-road

#6 Andrewski on 08.20.17 at 3:54 pm

Too many people I speak with continue to think real estate just keeps going up, astounding biased opinions abound, not backed up with proof.
There are far too few honest resources out in the webasphere where the average Joe can learn the truth about Canada’s current real estate situation.
Keep up the honest truth Garth, Ross, et al.

#7 WUL on 08.20.17 at 3:57 pm

There are a couple of other reasons to add to Garth’s why limited liability of corporations (austensibly protecting shareholders) is largely illusory with a small closely held corporation. Banks will simply ask the shareholders for guarantees from the shareholders in support of the business financing. Also, every standard form guarantee I have ever read allows the bank to sue the guarantor alone (the Bauer clause – Bank of Montreal v. Bauer) without exhausting its recourse against the company first.

Also, that company which leases you the big honking photocopier, forklift, delivery truck etc will have you on the business end of a guarantee if they have the heft to insist upon one.

#8 crossbordershopper on 08.20.17 at 3:58 pm

you think someone is going to go through the crazy risk of running a business in Canada where even the best companies other than the monopolies of banks, insurance etc. companies. the ABSOLUTELY most small business in Canada barely pay their owner a reasonable wage.
if i live in Ontario, i would gladly get $15 bucks an hour, in 2019, with absolutely no risk or worry.
i have and many, many people i know, have worked like night and day for a lot less than $15 and a lot of stress and risk,
and you think we should both the risk taker and the kid out of high school are taxed at the same rate as an employee or small business owner by not giving incentives to have a CCPC.
why would anyone do that? like really, Ontario is great, vote for whynn, get 15 bucks, dont worry about anything else other than relaxing.
Reason #4 to go to usa, incentive, Canada has none. if an unexperienced kid out of high school gets 15 bucks, and the business climate is poor for most business’s , and then you are taxed the same, no incentive, and its so much higher than the US rate.
if Trump does a tax reduction, and no state tax in FLorida, you get great weather, lower taxes, incentives, and keep your passport to come back if your like 80 years old and sick, if that happens, everything else is irrelevent.
zero incentive to live and risk and toil in Canada when people are just litterly walking over the border, what a crazy bs country this is. Vero Beach FLorida is very nice, come and join.
if the NAFTA agreement makes immigration for professionals much more easier, then get your paperwork and go to america, why live in socalist country, like really, other than family
in conclusion, its quite possible if trump via nafta changes to immigration, and lower taxes domestically and canada moves the other direction. then the choice is quite simple.
trudeau 2, just society 2, he calls it sunny ways, sure, for some, everyone else works for a living, pays more, gets less, etc.

#9 Freebird on 08.20.17 at 4:23 pm

And the self employed can’t collect EI or welfare unless rules have changed. The three men exception seems to if you arrange to SELF pay into EI (when SI or sml biz you set up and make all payments) to maybe collect under special terms. Maybe Garth and other experienced readers more up on this can clarify. For most self employed/ owners there’s little to no social safety net.

https://www.canada.ca/en/services/benefits/ei/ei-self-employed-workers.html

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-317-employment-insurance-premiums-on-self-employment-other-eligible-earnings.html

#10 For those about to flop... on 08.20.17 at 4:24 pm

HST has to be collected if the enterprise books more than thirty grand a year – but you also don’t pay any sales tax on stuff you buy. All of it’s deductible as an input tax credit.

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

Correct me if I’m wrong ,but dosen’t G.S.T have the same 30k limit.

I am collecting gst from the contractor I am currently helping out but I don’t think I will reach the 30k limit after my extremely late start to the year after surgery.

I think this happened in a previous year with another surgery and the government just took the money.

I would rather collect it as I go and be instructed to give it back than be running around at tax time trying to get a 6/7 grand cheque off of someone…

M43BC

GST and HST are the same thing. The $30,000 threshold is the point at which you are required to file. You can certainly file for a lower amount of revenue, claiming input tax credits and deducting them from the tax collected. — Garth

#11 Dan.t on 08.20.17 at 4:31 pm

Good points on what is going on in Vancouver and other major cities:
https://www.youtube.com/watch?v=t6bC5JSBuGg

Basically policies that favour big money, illicit money, those in power and in the know….basically everyone but the poor sucker trying to work a normal job or two just to keep up with the insane rise in rents or forced to borrow extreme amounts to even have a chance.

Houses ultimately are worth what ever the banks are willing to lend you…I wonder why houses cost so much now?

Skip to the end, not very encouraging for the younger generations if things keep going the way they are but, I don’t expect much to change.

Those with cash buy up expensive homes, push up prices, locals forced into more and more debt to keep up,

even if their house price rises, they are still house poor, locals get screwed but again, the money (where ever it comes from) that is buying can park itself without the same worry as the sucker locals who need to overextend themselves to even have a chance. The rising prices should make the locals richer, but instead it truly only helps those with the cash to buy up the housing stock.

It’s not a conspiracy it is simply poor poor public policy but too many vested interest to have it change unless the people get active…and in Canada that won’t happen. The extent of getting angry while the locals are being pushed out of YVR is to vote out the liberals after 16 years of it getting to this point. Still no new policies with NDP as far as I can tell, just a lot of talk. I hope they make some serious changes.

#12 Victor V on 08.20.17 at 4:41 pm

https://themash.ca/realestategossip/2017/8/price-drop-4-294-carlton-street-cabbagetown

I still thought this 3+1 bedroom, 4 bathroom semi on a 17.92 x 100 foot lot at 294 Carlton Street in Cabbagetown was going to sell fast.

It was first listed in April with an asking price of $1,678,000. I thought it could sell for $1,850,000. It didn’t.

In June, the price was dropped to $1,599,900. Then in July, it was dropped to $1,549,000.

It has now had another drop.

The new price for this house is…

$1,499,000.

#13 NoName on 08.20.17 at 4:42 pm

Book for Sale

Very last book that left kitchen for sale it can be yours for 10 easy installments of 1000 dollars. Personally signed by Mr Turner him self, and mailed from Caledon ON in “bubble wrapped” envelope.

Beats buying condo 10x over, when you are done reading it you just might come to your senses as i did, kind of…

And for one time extra payment 5000 dollars ill ask Mr Turner to scratch my name and writes yuor.

http://imgur.com/a/DnYm5
http://imgur.com/a/kF4p0

#14 For those about to flop... on 08.20.17 at 4:48 pm

#10 For those about to flop… on 08.20.17 at 4:24 pm
HST has to be collected if the enterprise books more than thirty grand a year – but you also don’t pay any sales tax on stuff you buy. All of it’s deductible as an input tax credit.

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

Correct me if I’m wrong ,but dosen’t G.S.T have the same 30k limit.

I am collecting gst from the contractor I am currently helping out but I don’t think I will reach the 30k limit after my extremely late start to the year after surgery.

I think this happened in a previous year with another surgery and the government just took the money.

I would rather collect it as I go and be instructed to give it back than be running around at tax time trying to get a 6/7 grand cheque off of someone…

M43BC

GST and HST are the same thing. The $30,000 threshold is the point at which you are required to file. You can certainly file for a lower amount of revenue, claiming input tax credits and deducting them from the tax collected. — Garth

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

Thanks for the explanation,I file gst every year when doing my personal taxes and get all the deductions taken off.

Also I probably didn’t explain my numbers very well and they probably appeared a bit wild.

Roughly around the 30k mark will get you owing 1500 in Gst the number I was talking about in total taxes in any given year.

Mostly I get paid once a month,but occasionally if the developers are extremely busy or are out of the country I can be longer sometimes over two months and they can owe you a whack and it can be challenging to get yourself out of bed to go and help someone out that is in you debt.

There are only a handful of people I trust to do this with.

Once I had to file papers to get my money from a guy who’s cheques were impersonating a kangaroo.

Any new people I deal with I usually ask to square up after 2 weeks.

Been back at work 3 months this year and only see the guy that signs my cheques twice.

A lot of the time you get paid when they get paid…

M43BC

#15 Freebird on 08.20.17 at 4:50 pm

“SP entrepreneurs usually don’t score business loans, either, so be prepared to borrow against your house or cash in an RRSP to secure initial funding. You’ll also need a separate bank account for the business, a good bookkeeping program, and a stomach for risk. Profits are personal income, but losses are personal, too. You’re responsible for every bill and debt, as if they’d been incurred running the household.”

This can’t be said often or loud enough. We’ve tried to pass on this same to more then one from the 30ish age group. Some listened and kept their job – benefits and all until older/ more experienced and financially stable to make the leap. Others? Convinced a stack of folders, and handful of self made cards means they’re ready to ‘be in business.’ Eye roll. Oh, and let’s add on the spending that ensues to ‘invest’ in the new business (and the house etc) At this point we don’t bother asking if they’ve done the math of how much they need to bill per month to cover the previous (regular) paycheque plus any added perks like paid vehicle/ insurance, phone, health benefits etc. Are they doing a basic record keeping of overhead and expenses vs income to see when if there’s a NET PROFIT or if they’re still running a LOSS. Basic in/ out accounting? They start on a wing and prayer (and no pot to pee in). No long term plan. The reality of being self employed and all the responsibilities that come with it – if full time and replacing an employment income can hit some hard.

I come from longtime self employed parents who worked hard and it paid for a decent life. I’ve worked for many small business owners (and large ones). I’ve known some young people go SE and do well…and worked hard. I worry about those who jump w/o a parachute and fall hard. I guess it’s a hard lesson in today’s world.

#16 Smoking Man on 08.20.17 at 5:02 pm

DELETED

#17 InvestorsFriend on 08.20.17 at 5:04 pm

Do You Pay Your Credit Card Off Monthly?

The savvy readers of this blog presumably mostly pay their credit card bills off monthly and incur no interest. The card company makes their money on the merchant fees.

Ask any ten people around you if they pay their credit cards off monthly. Most, maybe all, will claim they do. They may be fibbing.

Look at Canadian Tire’s credit card operation. (From the Q2 report) They charge 26% interest and their annual revenue amounts to 22% of their average total balances due.

It seems that at least 4 out of 5 Canadian Tire Options MasterCard customers are running balances and paying interest. The average balance is $2761. There are 1.9 million card holders.

There are big groups in society. One group is paying 26% interest. Another group is benefiting from that by owning shares in lenders including Canadian Tire.

Once on the 26% interest treadmill it is tough to get off.

It costs a lot of money to be poor! The poor pay the highest interest rates and generally don’t get the discounts that the rich do. No 1% cash back cards for the poor!

#18 Stone on 08.20.17 at 5:07 pm

#8 Crossbordershopper

Based on what I read of your post, you appear to have “zero incentive to live”. As well, you appear to have zero incentive to take risks. You seem to have zero incentive to do anything but complain and feel sorry for yourself.

Garth’s post was well written today. Over the last few years, I have set up a sole proprietorship as well as a partnership which have both since been wound down. There is great pleasure in the process of creating something from nothing and watching it flourish (the sole prop) or watching something flop (the partnership). I learned great lessons from both and it’s made me a better person in the process. Wealthier too.

Canada has many opportunities for those who have the balls to seize them. I don’t wait for handouts as your post appears to intimate people should do. My suggestion…grow a pair and stop sniveling.

By the way, America includes all countries of South and North America. Our neighbour to the South is the United States “of America”, only one part of a larger whole. Or were you suggesting that we prepare our paperwork and move to Venezuela? That’s also part of America. LOL. I think I’ll stick with this socialist framework called Canada. It gave you the opportunity to be you, didn’t it, assuming you’re Canadian which I may be incorrect about? If yes, I would be a bit more grateful. If I were you. There are many other poor souls on this earth who would sell their souls for what you complain about.

#19 OttawaMike on 08.20.17 at 5:19 pm

Good topic

I’m an SP and it has worked well for 20+ years on my part time business.

$30k limit for HST collection? Why is this not indexed to inflation? 25 years is a long time to stay at that limit where Byron Muldoon introduced the GST?

#20 Still employed in AB on 08.20.17 at 5:23 pm

I’m considering a side gig doing commission only sales. Sole Proprietorship sounds like the way to go.

#21 Fluorine on 08.20.17 at 5:31 pm

#13 NoName

How did you take the picture if the camera is sitting on the table next to the book!?

#22 rainclouds on 08.20.17 at 5:40 pm

Big notice on the elevators in my Yaletown rental condo bldg.

NO SHORT TERM RENTALS
NO AIRBNB
FINES

Game on….pendulum slowly swinging back the other way.

#23 Femintax Collector on 08.20.17 at 5:44 pm

Under Trudeau’s taxation law, you are required to pay 170% of your book earnings to the United Association of Suburban and Bourgeois Canadian feminists.

under Morneau’s gender equality law, you are required to pay 170% of your expenses to build Morneau’s Mansion at Costa Rica.

Why 170% taxation rate? Because Canadian women who earn over $80,000 a year are paid inversely 170% less than a Slave from West Africa when accounting for real estate and food prices.

Canadian women have to work from 9 to 6, leaving their homes at 6:30pm driving along the 401 in their latest Audi, work, then reach at home at 7pm or 8pm….This is oppression!

#24 For those about to flop... on 08.20.17 at 5:45 pm

CONFIRMED PINK DRAWS.

Here are another 3 recent cases that the sale number was larger than the price but the results probably left them more relieved than ecstatic.

The thing I learn from cases like these ones is how far below the original ask was the actual sale number…

M43BC

The details…

Case 1

Paid 1.288

Sold 1.35

5020 Hollymount Gate, Richmond

Oct 20:$1,588,000
Mar 29: $1,398,000
Change: – 190000.00 -12%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1WFNLMg==

Case 2

Paid 1.6

Sold 1.72

10680 Housman Street, Richmond paid 1.6

Dec 11:$1,888,000
Jan 29: $1,790,000
Change: – 98000.00 -5%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1V1ozSA==

Case 3

Paid 4.15

Sold 4.5

447 232 Street, Langley.

October 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==

#25 X on 08.20.17 at 5:50 pm

Thanks for the reminder of what Trudeau is about to do to Canadian entrepreneurs.

I think the Liberals are closer to a tipping point on taxation than they think, even without the corporate kneecapping. I hate it even more knowing that many will not report their income.

I don’t mind paying my fair share. I don’t even mind paying more. But I do prefer to be honest about my income and not illegally avoid paying taxes.

I think the things that bother me the most about the proposed corp taxes are the other business owners who will not report cash income. Along with the governments obvious ignorance for the financial risk for starting a business.

Guess I should have been a drama teacher, less education, guaranteed pension, more holidays, more sick days, less hours, no weekends at the office.

For all of my hard work, and higher income, it is not like my kids get any more attention in school than the children of parents who pay less in taxes than me. Maybe an HOV lane for high tax payers or something….it would be nice to get a little more for paying more, I guess. I was happy with paying a little more, and getting the same. But paying even more…..

#26 WMG on 08.20.17 at 5:55 pm

One other reason to have a HST number under 30k besides being able to deduct HST paid on supplies etc. (against HST collected) is that when your sale includes equipment etc. you had to pay HST on, your customer with a HST number will be able to claim the total HST you charge them. Otherwise they will not be able to recover any HST. They would be wise to purchase equipment etc. from a company registered for HST.
The disadvantage is now you will have to charge HST (on your labor etc.) to ALL your non business regular customers with no HST number with no means to claim an input credit.

#27 Alicia on 08.20.17 at 6:14 pm

This is the way to do it – better than income sprinkling to family members that do not contribute to your business.

#28 Wrk.dover on 08.20.17 at 6:19 pm

When I was an SP all through the eighties, the income tax form had enough expense line items, that there was no income left to pay tax on. That seemed discouraging, but it was a good lifestyle. Then NAFTA shut me down.

#29 crowdedelevatorfartz on 08.20.17 at 6:34 pm

@#80 Ace Goodheart
“Please. Build. Some. Cars. Elon.”
+++++
Tesla Part deux
It was interesting when 6 or so months ago Tesla was accepting money($1000 deposits) for “affordable” electric cars that hadnt even been designed yet….
I “poo poo’ed” the whole idea as a financial and public relations disaster….and the millenials snarled at this grumpy old Boomer.

Well, here we are, month later, evrything is behind schedule but the Elon Musk promises are bgetting better…….lets see what kind of “quality” cars are ground out at the overworked and inexperienced Tesla factories…….
I’m sure Ford , GM and Fiat are shaking in their boots.
The internal combustion engine IS on the outs ( this weeks The Economist magazine discusses the future of green cars) ……unfortunately Elon Musk will be sipping green cha on the Red Planet before he usurps the car industry with his “affordable” electric horseless carriage……
But look on the bright side.
He unceremoniously dumped uber bee-yatch Amber Heard without so much as an email…….

#30 BS on 08.20.17 at 6:37 pm

25 X on 08.20.17 at 5:50 pm

Thanks for the reminder of what Trudeau is about to do to Canadian entrepreneurs.

I think the Liberals are closer to a tipping point on taxation than they think, even without the corporate kneecapping. I hate it even more knowing that many will not report their income.

I don’t mind paying my fair share. I don’t even mind paying more. But I do prefer to be honest about my income and not illegally avoid paying taxes.

Tax evasion is exactly what happens when you over-tax small business. Net tax revenue will end up lower. It is difficult for a regular working person to avoid an unfair tax increase because income is reported but a small business always has cash. Traveling to Europe in Greece, Italy, Croatia and Spain it is common for restaurants to claim their credit card terminal is not working that day so you must pay cash. When you tell them you don’t have any cash the terminal seems to work. That 20% plus VAT tax included in the price along with other high income taxes makes it worth while for them to try to get cash when ever possible. I suspect we will see that coming to Canada soon after the proposed changes take effect.

#31 CL on 08.20.17 at 6:58 pm

If you’re writing another book just publish on Amazon/Kindle. Easy peezy and you already have a following so marketing won’t be hard. Set your own price too.

I’ve done it. The problem is Kindle has killed your publisher And saturated the market because now everyone is a writer and marketing a book among millions is tough work. But as I said you already have the following so it wouldn’t be hard to do for you.

#32 Oopswediditagain on 08.20.17 at 7:03 pm

Dan T. “Skip to the end, not very encouraging for the younger generations if things keep going the way they are but, I don’t expect much to change.”
<<<<<<<<<<<>>>>>>>>>>>>

Dan,Dan, Dan, you are either one schizophrenic bear or a very patient bull. Home prices going up forever and the incorrigible Chinese buyers are bull memes, my friend.

What you want to do is focus on the OSFI legislation that will either wipe you out or provide an opportunity to buy a nice home at half the price.

I’m not quite sure what you want but you are going to find out in a few short months.

Good luck.

#33 NoName on 08.20.17 at 7:12 pm

#21 Fluorine on 08.20.17 at 5:31 pm
#13 NoName

How did you take the picture if the camera is sitting on the table next to the book!?

—-

Magic

#34 Built to Spec on 08.20.17 at 7:13 pm

Further to the topic of self-publishing vs. using a publisher, another hilarious (like Garth) account:

“Why I am Self Publishing my New Trading Book”

http://www.followingthetrend.com/2015/05/why-i-am-self-publishing-my-new-trading-book/

#35 Jacko on 08.20.17 at 7:21 pm

Talk about missing tax revenue. T2 & CRA should take a walk through the Farmer’s Markets across Ontario. Missing a huge tax revenue stream there. I was just in St. Jacobs Ontario yesterday. Advertise over 400 vendors to visit and the majority only take CASH!

No joke, the lines for the ATMs were the longest of any lines I saw as many people were as shocked as I that no debit or credit cards are taken at most stalls.

As a business owner in manufacturing myself, there is no room for cash in my industry, only credit in B2B. I will face the full assault of T2 soon, yet these “farmer marketers” will be home counting cash that T2 will never know. This is done in full view of the government and no one seems to do anything. There isn’t even a cash register on most stalls??? Just an old fashioned apron stuffed with cash.

Sole proprietorship gone wild there in plain view. Everything my wife purchased was cash straight up with no mention of HST. All rounded nicely to the dollar! No need for nickels, dimes or quarters. What a throw back to days gone by for these business people. No minimum wage to pay for Kathleen’s agenda, no CPP or EI to pay, let alone WSIB or insurance.

I just don’t get it?

#36 Happy Housing Crash Everyone! on 08.20.17 at 7:23 pm

Happy HAPPY Housing Crash
nothing is selling
nothing is selling

Happy HAPPY Housing Crash
Prices are going Down
DOWN DOWN DOWN!

Happy HAPPY Housing Crash
nothing is selling
nothing is selling

Happy HAPPY Housing Crash
Prices are going Down
DOWN DOWN DOWN!

Happy Housing Crash Everyone!

#37 bigtowne on 08.20.17 at 7:23 pm

Little Bitty by Alan Jackson:

Well, It’s alright to be little bitty
A little hometown or a big old city
A big yellow bus and little bitty books
It all started with a little bitty look

Well, it’s alright to be little bitty
A little hometown or a big old city
Might as well SHARE, might as well smile
Life goes on for a little bitty while.

#38 Smoking Man on 08.20.17 at 7:38 pm

#16 Smoking Man on 08.20.17 at 5:02 pm
DELETED
….

Can’t blame you. Triggering the left for sport was fun. Now they walk around in black outfits with baseball bats.

I’ll try and be more sensitive to your postion as editor . And the fact that your not hiding behind a made up name.

Getting scary out there.

#39 NoName on 08.20.17 at 7:39 pm

#30 BS on 08.20.17 at 6:37 pm

Tax evasion is exactly what happens when you over-tax small business. Net tax revenue will end up lower. It is difficult for a regular working person to avoid an unfair tax increase because income is reported but a small business always has cash. Traveling to Europe in Greece, Italy, Croatia and Spain it is common for restaurants to claim their credit card terminal is not working that day so you must pay cash. When you tell them you don’t have any cash the terminal seems to work. That 20% plus VAT tax included in the price along with other high income taxes makes it worth while for them to try to get cash when ever possible. I suspect we will see that coming to Canada soon after the proposed changes take effect.

—-

I cant comment for other countries but in cro pdv (VAT) is included in price what you see. That is how gov hides hi taxes, there is addition on end of the bill.
Fines for restaurants are so big that owner are generally reluctant to do what you just sad. Plus you can clam tax refund on vat/pdv.
http://www.reidsguides.com/t_mo/t_mo_vat.html

As for greece its was well known that gov. turned blind eye to underground economy to have some economy.

kind of what is happening here in canada, some restaurants in foreign language “openly” advertise pay cash no tax.

There are apps out there that u can use cell camera to translate foreign language.

#40 Deplorable communications on 08.20.17 at 7:40 pm

#31 CL on 08.20.17 at 6:58 pm

If you’re writing another book just publish on Amazon/Kindle. Easy peezy and you already have a following so marketing won’t be hard. Set your own price too.

I’ve done it. The problem is Kindle has killed your publisher And saturated the market because now everyone is a writer and marketing a book among millions is tough work. But as I said you already have the following so it wouldn’t be hard to do for you.
..

Smoking Man sold thousands of his autobiography the “Talking Dick Head” that way.

Though I found his price a tad steep since it was more than a price a of good beer. So I had to for the beer.

#41 Nonplused on 08.20.17 at 7:48 pm

I am sure Trudeau will be going after sole proprietors next.

I think much of the agenda is not tax fairness, but instead making it harder for small businesses to compete against established big business. For example my accountant is basically a one man operation. He charges considerably less than the big 3 accounting firms. But after Trudeau ensures he’s paying his “fair share” of tax, he’ll have no choice but to up his rates. That means me and his other clients will be paying more, not him. He can’t, he doesn’t have any money until I pay my bill to him.

Anyway all of this is just prelude to the real agenda which is to start raising all tax rates. Right now they can’t do it politically because there is this perception out there that some people aren’t paying their “fair share” so they have to fix that perception. Once that’s done they’ll be able to then argue that the “fair share” needs to be larger. So expect to see a new tax bracket in 2019 for earnings over $100,000 a year with a 55% rate. Over time they’ll try and step it up to 70%, probably by adding even more brackets at $150,000, 200,000, etc. And of course all this will do is dramatically increase the prices we all pay for everything. Taxes are always baked into prices. They have to be.

The HST is an excellent example of how this works. Only in the case of the HST, the tax is not baked into prices as when it was first proposed retailers balked at the idea of allowing the government to hide the tax in the posted price, they wanted it shown separately on the bill as it is. But so far as I can tell I still have to pay it either way. I think it’s a pretty tough sell to argue retailers lowered their prices in response to the new tax. I don’t see how they could. In BC the HST is an astonishing 12%. This is on money you already paid tax on. So if you are in a 50% tax bracket in BC (combined federal & provincial), the HST moves your effective tax rate on any purchases subject to HST to 62% already. It’s stunning really. And you pay it, not the retailer. And then don’t forget the carbon taxes on everything, which is really just another increase in the HST but it applies to HST exempt products like food as well. It’s a tax on everything. Yes you pay carbon taxes on food. Farming is very carbon intensive and so is the whole processing and transportation part of it. Your food represents far more carbon consumption than the calories in the food. The farmers, processors, and transport companies have to pass these costs on to the end consumer or they would go out of business.

Oh and while we are at it, why don’t we raise the minimum wage to $15/hour? Sounds like a socially just thing to do. Especially because it means a full time minimum wage worker now has to pay taxes! Sure only 15% on some $12,000 of income but there are a whole lot of them so it adds up to some serious coin, far more than trying to tax the top 0.01% more. But where does the money come from? Well, for one, the cost of a Big Mac is going to go up. The labor has to be paid for by the price of the burger. McDonald’s will respond by trying to automate as they are already doing, reducing the amount of labor they need and also the number of jobs, but even that costs something so the burger is going up in price.

So what is happening to a typical Franchisee? The cost of his input materials (food, energy) are going up due to the carbon tax, he has to charge HST, his corporation is going to have it’s tax rates increased bigly, he faces rising minimum wages, and he has to automate to avoid some costs to stay competitive. All of this has to appear in the cost of the burger. Remember, or learn if you don’t know it, what he can sell the burger for is all the money he has to work with. He isn’t printing money at the back of the store, he’s making burgers. Burgers you will have to pay for if you want them or he’s going out of business.

I get so frustrated with the world sometimes. So many people believe in impossible things like carbon taxes and minimum wages. They just don’t work and we know they don’t work. For example, if the minimum wage worked, why stop at $15/hour? Why not $30? And if $30, why not $45? How much would a Costco pizza (currently $10) cost if Costco had to pay it’s workers $45 an hour to make the pizzas? It’s the same as the burger example, Costco doesn’t print money they make pizzas and the whole cost of making the pizza has to be embedded in the price.

Of course Venezuela was able to avoid all this by imposing price controls, but now there is no pizza.

#42 Damifino on 08.20.17 at 8:01 pm

So I’m a bit confused. In British Columbia, GST and HST do not seem to be the same thing. They are listed separately on every receipt. We have former Premier Vanderzalm to thank for coming out of retirement and spearheading recall legislation to have the HST (that was sneakily brought in by Gordon Campbell’s liberals) changed back to the old separate PST and GST system.

Does the $30K limit apply only to the GST in BC?

#43 Damifino on 08.20.17 at 8:04 pm

Wait a minute. Maybe now I get it. PST is a red herring. Sell 30K worth of stuff, remit the GST for it. QED.

#44 Smoking Man on 08.20.17 at 8:10 pm

#40 Deplorable communications on 08.20.17 at 7:40 pm
#31 CL on 08.20.17 at 6:58 pm

If you’re writing another book just publish on Amazon/Kindle. Easy peezy and you already have a following so marketing won’t be hard. Set your own price too.

I’ve done it. The problem is Kindle has killed your publisher And saturated the market because now everyone is a writer and marketing a book among millions is tough work. But as I said you already have the following so it wouldn’t be hard to do for you.
..

Smoking Man sold thousands of his autobiography the “Talking Dick Head” that way.

Though I found his price a tad steep since it was more than a price a of good beer. So I had to for the beer.
…..

More like a few hundred. 50 from greater fool fan club. 150 just following deplorables on twitter. They look at my profile and very few buy the book called Deplorables by smoving man.

No money it. I did the book for this only reason I was told I dident have it in me to finish. Hard core dyslexic here if you haven’t noticed.

I set the price of 9.99 via lulu. They distribute it to the other websites. On amazon I get 2 bucks from the 9.99 after they discount.

Unless your a celebrity with a huge base, or you have a huge celebrity pushing it your not going to make money selling books.

You do it out of the need to expess your creativity and your opinion of that moment in time.

Do not regret all the hours that went into it. Enjoyed it huge.

#45 NEVER GIVE UP on 08.20.17 at 8:10 pm

#8 crossbordershopper on 08.20.17 at 3:58 pm
you think someone is going to go through the crazy risk of running a business in Canada where even the best companies other than the monopolies of banks, insurance etc. companies. the ABSOLUTELY most small business in Canada barely pay their owner a reasonable wage.
====================================
I employ 12 FT and 20 PT people.
I am 61 and all my life have been a self employed incorporated businessman.
I took the early CPP. $278.00 a month! Woo Hoo!

When I could have boosted the business there were no banks who would look at me. Meanwhile they were and still are lending 5% down payments to foreign students with 2.5% loans to speculate on condos and pay off their tuition with.

Our Government is HOSTILE to small Business. Not just ambivalent and non supporting.

When I needed money I racked up my CC’s to $100k. Now they are paid off and I don’t even look at banks or anyone for money. They had their chance to do business with me and blew it.

All I can say is I prospered in spite of Government not because of them.

#46 Ret on 08.20.17 at 8:10 pm

Re: #35

I bought two small items at a summer festival in Ontario. Not great quality but $10 cash for the two items, no tax, and the guy even gave me a free plastic bag. Whoo-hoo I beat the government for $1.30!

A neighbour close to me runs 20 student rooms and a 2 bed condo rental around McMaster. We are talking a gross rental income of $10,000 a month. There is a steady stream of students at the end of every month at his front door all dropping off “cheques?” I don’t think so.

There are lots landlords here who own five or more student rental properties, 7-8 “doors” in each. A few own more than 10 properties. It is the same around every university or college.

Governments don’t care. They can just raise taxes from those who are forced to declare income through their employer or bank, or add on new taxes like carbon taxes.

#47 Editrix on 08.20.17 at 8:17 pm

Um, correct me if I’m wrong, but don’t you take a risk with an SP if you’re sued? Can’t they come after your house, etc.? If you’re incorporated they can’t take your house unless it is owned by the company, I think.

You are wrong. There is no effective shielding of personal assets when you own a company. — Garth

#48 NEVER GIVE UP on 08.20.17 at 8:20 pm

#36 Happy Housing Crash Everyone! on 08.20.17 at 7:23 pm
===================================
===================================
The Crash will play out over years. Just like the rise.

I remember renting a home for 3 years in Burnaby.

I paid $2100 a month in 05 and it went up in Value by 12k per month for every month I rented it.

The foreign owner had purchased it just before I rented it for $425 and it was valued over $800k three years later.

#49 BS on 08.20.17 at 8:24 pm

39 NoName on 08.20.17 at 7:39 pm

I cant comment for other countries but in cro pdv (VAT) is included in price what you see. That is how gov hides hi taxes, there is addition on end of the bill.
Fines for restaurants are so big that owner are generally reluctant to do what you just sad. Plus you can clam tax refund on vat/pdv.

Just in Croatia last year. Had it happen twice where they wanted me to go to the bank machine to get Kuna to pay restaurant bills. I said no and their credit card terminal started working in both cases. It is more prevalent in Greece and I was just in Italy and had it happen. These are fairly expensive restaurants I am talking about not cafes or coffee shops. Although there are a few low end restaurants that take cash only in Canada I have never run into a place that does takes credit cards try to get cash because the machine is “not working”.

#50 Smoking Man on 08.20.17 at 8:26 pm

Young men. You want a life long loyal wife.

You got to be a bad boy. Altho progressive idiology trys to train you to be a compationet sweet man, kind and loving man. Globalists plot for de population.

Woman puke over men like that. They want their oun bad boy, then they want to tame it.

That’s how there wired. Make sure the taming takes a long period of time or risk losing then.

50 shades of grey. Amazing best seller bought by chicks. That should tell you somthing about the female uncouncious mind.

Dr Smoking Man
PhD Herdonomics

#51 Keith on 08.20.17 at 8:39 pm

#41 Nonplused

You are so incredibly wrong, it’s 80 cents on a Big Mac:

http://www.businessinsider.com/denmark-mcdonalds-pays-20-hourly-wages-2014-10

Do the math.

#52 Ace Goodheart on 08.20.17 at 8:59 pm

Been a sole prac for 12 years. Thought of incorporating many times. Then I remembered elementary school. How the teachers would set up the students with creative structures, which they controlled, and then change the rules to suit themselves.

Figured I am a rat, in a cage and the thing about rats in cages is you don’t add to the bars if you are the rat. You don’t work to strengthen the cage or add to it. You want out.

So being a rat I looked beyond the rat cage and decided that the game was rigged.

They tell you think outside the box.

I say there is no box.

You want to participate in a society you smorgasbord. Pick and choose. The needy cling. If you are high income business person you are not needy. So you cling less. Or not at all.

What I am saying is f$€k their structures. Don’t be a rat. They know rats love cages.

But you know there is no cage and a rat is just a label you can rise above….

#53 Chaddywack on 08.20.17 at 9:05 pm

My physician wife thankfully decided not to incorporate this year due to the changes we heard were coming on this blog. Thanks Garth! We got more than we paid for :)

Anyway, SP is rarely touted as an option by the presenters (accountants and lawyers) who visit medical residents for transition workshops. They never lie, but they leave out information conveniently. For example, they gave the impression that SP pay 50% to Justin Trudeau, while if you incorporate you pay only 15% small business rate (they tend to omit that the retained earnings are taxed when paid out).

They also tout the benefits of being able to deduct expenses if you’re incorporated, but carefully omit that you can also do this as an SP as well.

Overall this is overlooked by the residents because the presenters bring in muffins and coffee! :)

#54 crowdedelevatorfartz on 08.20.17 at 9:14 pm

Deeeeeeep down .
We all realize that Baby Trudeau is the Anti Trump.
Embracing politically correct, socialist, anti progress, anything.
His Touchy Feely “Its 2016” politically correct one liners…..
Keeping his mouth shut and dancing on the head of a pin when he actually meets The Donald.
The Circ de Soleil meets Washington
The selfies, his wife’s selfies.
Photos of them together. Then …apart.
Almost two years…..nothing of any intellectual substance from Baby Trudeau other than…..another tattoo?
Obscene budget overspending, inevitable higher taxes, more punitive tax rules, oil is dropping, BC has gone even more to the Left, pipeline protests looming, extreme weather, permafrost melting, Smoking Man is still accessing the internet……, NAFTA negotiations , endangered Whales dying on the East Coast, Realtor commissions as inflated as whales on the West coast, And anti muslim riots show their ugly face in Quebec City……….
Tip of the iceberg?

Well only a falling Canadian real estate based economy will know for sure.

#55 Lee on 08.20.17 at 9:15 pm

For professionals talk of a corporation protecting you from your creditors is pointless if you want to remain in business. Professional ethics rules require all professional practice related expenses to be paid or you’ll face a disciplinary hearing. Also, if sued for negligence it is the lawyer or doctor who is insured for malpractice and gets sued personally. Corporations are used by professionals for tax and estates reasons, not to stiff creditors. The exception is if you are going out of business or retiring I guess you can stiff trade creditors like trump did regularly although you can still be disciplined as a professional retiree.

#56 cd on 08.20.17 at 9:17 pm

I had this idea once when drinking…

What if a company sets itself up like a lottery and for each pay period instead of paying employees paycheques, they are awarded prizes (cash of the same value). Would no taxes need to be paid, at least for the employees?

#57 TurnerNation on 08.20.17 at 9:23 pm

Look at the front page of CBC Canada news (C*A Broadcasting corp?). Paid shirts of varying colours are in the street theatre ( theatre of war anyone? Some say the middle east was them prepping for our streets).

You are foreign investor. Canada’s streets inflamed; foreign buyer tax. Would you venture here?

(They tried breaking our spirits using QC seperation over and over. Torched AB. Didn’t work. Even more silent weapons as they say: Streams coming across the border in an organized fashion. Our services to swell. Just a computer simulated program being put into play. Some also suggest staged incidents pushing us into self driving cars. What could go wrong, see below:.)

Unless you have the mark – approved FB and PP logins – you will be firewalled off the ‘net. Commerce and travelled denied.

#58 David on 08.20.17 at 9:48 pm

A big part of the issue is the reputational damage being done to the country’s business climate by T2 and our esteemed provincial governments. A lot of people don’t understand the massive amount of wealth creation we are leaving on the table and in the ground with foolish, feel good polices that are scaring away investment. These tax changes and minimum wage/labour law changes add to the damage. Who is going to invest in this country when there exist much better alternatives with much better business and weather climates? Canada is a nice place and we’re lucky to be here, but it isn’t that nice.

#59 Smoking Man on 08.20.17 at 10:03 pm

Turner Nation

You are getting closer and closer to the song nothing else matters.

The leftys threaten doxing me. I doxed myself. Drunken nuts bigger then mount everst.

Those nuts have no brains. Hence I’m homeless now.
Staying at motel 6 tonight.

My soul. Dancing to dancing queen.

All the suck ups on the floor no where near as happy as me.

I can freely speak my mind now. Them not so much. They got to keep pretending the earth is flat.

That muskoka cottage life is everything to these idiots that don’t care for their grandkids.

Don’t got any myself at the moment.

I care. Know one sees it. Why do I bother.

#60 meslippery on 08.20.17 at 10:10 pm

Like Panasonic I was slightly ahead of my time.
Reel to reel recording music over the air then edit to
cassette, free.Whats this downloading been there done that.

#61 joblo on 08.20.17 at 10:18 pm

Garth your freaking me out with this T2 ta stuff.
How about a RRSP meltdown post.
Me thinks its time to melt it down pay the piper before [email protected] gang attacks it next.

#62 joblo on 08.20.17 at 10:21 pm

T2 tax stuff
T2 gang

#63 cat luver on 08.20.17 at 10:22 pm

Does a Sole Practitioner really need a separate bank account? If you are accounting for all of the transactions in and out, isn’t that sufficient?

Of course you do. — Garth

#64 meslippery on 08.20.17 at 10:29 pm

What, I wondered, was preventing me from hiring my own editor and designer,
——————————
Or selling your house with benefit of a realtor.
OH maybe metal feast?

#65 akashic records on 08.20.17 at 10:33 pm

#38 Smoking Man on 08.20.17 at 7:38 pm

#16 Smoking Man on 08.20.17 at 5:02 pm
DELETED
….

Can’t blame you. Triggering the left for sport was fun. Now they walk around in black outfits with baseball bats.

I’ll try and be more sensitive to your postion as editor . And the fact that your not hiding behind a made up name.

Getting scary out there.

—-

Once it starts nobody can hide.
It is just the matter of time how far you are from the first slice.

History speaks volumes about this if you are willing to listen. Yes, it was all true.

#66 NoName on 08.20.17 at 10:42 pm

Never had happen to me, did you try paying in euro? Maybe discount would bigger… Meet me for beer I can teach you sentence or two what to tell them when they tell you “masina ne radi”.

#67 will on 08.20.17 at 10:43 pm

Thanx for the tutorial Garth. Preciate it.

#68 Houseless in Toronto on 08.20.17 at 10:44 pm

I disagree on the point of effective shielding for personal assets of a director/officer in the event of a lawsuit for incorporated entities. Depending on the pleading if you purchased the appropriate insurance policy this can assist in protecting the assets of a director/officer.

Liability and insurance are separate topics. The fact remains that an incorporation is no shield. — Garth

#69 Palmateer on 08.20.17 at 10:46 pm

I checked out Smoking Man’s twitter feed.

Bizarre and disturbing.

#70 Smoking Man on 08.20.17 at 10:54 pm

69 Palmateer on 08.20.17 at 10:46 pm
I checked out Smoking Man’s twitter feed.

Bizarre and disturbing.
……

Promise me before you kill me you will have the dignity to take off the hoody so I can see your face.

#71 Paul on 08.20.17 at 11:03 pm

#69 Palmateer

I think are bizarre and disturbing maybe obsessed.

#72 akashic records on 08.20.17 at 11:07 pm

#69 Palmateer on 08.20.17 at 10:46 pm

I checked out Smoking Man’s twitter feed.

Bizarre and disturbing.

—-

Everything I check out lately is bizarre and disturbing.
Big and small.

#73 Ponzius Pilatus on 08.20.17 at 11:21 pm

Living small. the new big.
Great insight, Garth.
Buffett and Jimmy P., are trying to buy a stairway to heaven. not gonna work.
Remember the camel and the eye of a needle.
WTF, how much money is enough?

#74 MF on 08.20.17 at 11:24 pm

I also believe a lot of people jump to incorporate because it sounds more “prestigious” than a Sole Prop.

Garth is right. Lots of examples of people who are tangled in the mess of trying to dissolve older corporations (the process takes months and can be frustrating).

MF

#75 BillyBob on 08.20.17 at 11:25 pm

#18 Stone on 08.20.17 at 5:07 pm
#8 Crossbordershopper

Based on what I read of your post, you appear to have “zero incentive to live”. As well, you appear to have zero incentive to take risks. You seem to have zero incentive to do anything but complain and feel sorry for yourself.

Garth’s post was well written today. Over the last few years, I have set up a sole proprietorship as well as a partnership which have both since been wound down. There is great pleasure in the process of creating something from nothing and watching it flourish (the sole prop) or watching something flop (the partnership). I learned great lessons from both and it’s made me a better person in the process. Wealthier too.

Canada has many opportunities for those who have the balls to seize them. I don’t wait for handouts as your post appears to intimate people should do. My suggestion…grow a pair and stop sniveling.

By the way, America includes all countries of South and North America. Our neighbour to the South is the United States “of America”, only one part of a larger whole. Or were you suggesting that we prepare our paperwork and move to Venezuela? That’s also part of America. LOL. I think I’ll stick with this socialist framework called Canada. It gave you the opportunity to be you, didn’t it, assuming you’re Canadian which I may be incorrect about? If yes, I would be a bit more grateful. If I were you. There are many other poor souls on this earth who would sell their souls for what you complain about.

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

Who says he or she isn’t grateful? Sound to me that they are extremely grateful that there are options beyond the socialist paradise of Canuckistan. If one actually has the guts to explore them. The poster is simply stating a truism: that risk-taking is far more encouraged and likely to provide a ROI in the US than in Canada. How did that translate into “expecting handouts”, in your view?

The pedantry about “America” is silly. When someone refers to “America” in the singular they’re referring to the USA – the country. Only an idiot would try and claim otherwise. Canadians may call the USA “The US” or “The States”, but ask any European what country has a flag with stars and stripes and they will universally respond “America” or “The United States”. Maybe you just need to travel more?

Arguing that one should be satisfied with something deeply flawed because there are even worse situations is the argument of a loser. It does not flatter Canada that people want to flee places like Syria and Somalia. Unless of course, these places are where you set the bar for standards of comparison?

I am thankful for the start in life I received in Canada. But I am even more thankful I was forced to look beyond her borders. Increasingly more thankful as time goes on and I watch and see what’s it’s transforming into.

Everyone wants everything, and everyone expects someone else to pay for it.

It will take war to shake people out of this mindset of complacent entitlement. And history ALWAYS repeats.

#76 MF on 08.20.17 at 11:31 pm

#45 NEVER GIVE UP on 08.20.17 at 8:10 pm

“All I can say is I prospered in spite of Government not because of them.”

I don’t know the business that you operate, but chances are you transport goods on roads and use electricity at your establishment.

#58 David on 08.20.17 at 9:48 pm

You forgot about political and social stability. It’s more important than weather and taxes (serious).

MF

#77 MF on 08.20.17 at 11:36 pm

#18 Stone on 08.20.17 at 5:07 pm

Solid post and repped (if it were possible).

This “crossbordershopper” person does not realize that by complaining endlessly on here he/she shows themself to be more Canadian than anyone else.

1st world problems.

MF

#78 n1tro on 08.20.17 at 11:57 pm

Garth,

Could you not income split with your spouse if you set up a partnership instead of just doing so alone? Works well if spouse make significantly less than you splitting revenue 50/50.

#79 crowdedelevatorfartz on 08.21.17 at 12:11 am

Yo Smokey.

Quit the net and drinking for a while.

You’ll be a happier man……..

#80 Sir James on 08.21.17 at 12:39 am

Please correct me if I’m wrong, but the government website says HST collecting kicks in $30,000 a quarter, not year.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/register-a-gst-hst-account.html

#81 Sir James on 08.21.17 at 12:46 am

Oh, I think I see what you mean.

#82 n1tro on 08.21.17 at 1:59 am

@#30 BS

Credit/Debit machine not “working” today….

It happens here in Canada too. Other places just have a sign saying cash only for meals less than $20.

#83 Mauri on 08.21.17 at 2:02 am

Not true, some blogs become very successful books,
$300,000 for starters…

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

#84 fishman on 08.21.17 at 2:16 am

Dunkirk is the must see film for this summer.
It was near 50 summers ago when I got a summer job in the mine. I was assigned to the mill boss for cleanup & gopher. My boss couldn’t get around too good cause he’d lost all his toes on the Russian Front.
Graveyard shift we’d sit up in the control room & eat lunch & he’d give me cucumber & tomato sandwich’s made by his wife. Homemade,so good, but even more delicious were the stories from the Eastern Front. This is his Western Front story. Before things got really interesting!
When we got to the beach the British were gone. Their was equipment & stuff everywhere. We started cleaning up but I was in communications & the officer got a truck
2 soldiers, tools & wire & told me to get the telegraph line working. We started patching up, running wire on trees & whatever because the British had sabotaged the line on retreat. On the afternoon of the third day we were outside the town of Dunkirk. We wanted to go in & it looked like no one was there. We set up to observe that afternoon & all night. Same with the next morning, no sign of movement, so around noon we decided to go in. Sure enough there was nobody there. Hence,I was the first German soldier into Dunkirk.

#85 NoName on 08.21.17 at 3:06 am

@sm mask off and this and that…

Dint you forget that you are in Atlantic City, not on Broadway.

#86 Wrk.dover on 08.21.17 at 6:47 am

A four man operation sells one hundred burgers an hour @ $5.00 each including drink and fries with that.

Equals $500 in drawer for $40 wage outlay @ $10/hr. Equals 40 cents wage/meal.

Minimum wage shoots up to $15.00, now costs $20 more to put $500 in drawer. Cost increase is 4% on bottom line. Equals sixty cents wage per meal… total.

Hard right wing bloggers assume burger will double in price. No, not assume, adamantly know, a twenty cent labour increase on a five dollar order will double its cost to a ten dollar bill.

#87 Wrk.dover on 08.21.17 at 7:06 am

Or fifty meals an hour at $10 each for the arguers.

That is an order for a family of four paying $40 at the cash drawer every 4.8 minutes.

#88 maxx on 08.21.17 at 7:19 am

#3 For those about to flop… on 08.20.17 at 3:41 pm

“CONFIRMED PINK SNOW.

This is one of the cases I asked the realtors on here to help me with by showing real time transaction and I got the cold shoulder and now I know why.”

A cottage we were considering just sold for a loss of 100K – plus in and out costs, after only a few years of ownership. OUCH. Realtors almost begging for offers on other cottages.

It’s happening with increasing frequency. Time to buy? Noooooo………..not yet.

#89 Renter's Revenge! on 08.21.17 at 7:54 am

#52 Ace Goodheart on 08.20.17 at 8:59 pm

“Figured I am a rat, in a cage”

The world is a vampire…

https://youtu.be/8-r-V0uK4u0

#90 conan on 08.21.17 at 9:15 am

#84 fishman on 08.21.17 at 2:16 am

I have heard some good WW2 stories myself. Crazy stories that will never make it into any history book.

Best one I heard: the main character was a Panzer Commander, German nobility, family wealth from wine.

His Panzer is in retreat mode from Western Europe, but he is not leaving without borrowing almost a million bottles of fine French wine.

Anyway, the story gets better from there……..

#91 Spaccone on 08.21.17 at 9:22 am

#30 BS on 08.20.17 at 6:37 pm
25 X on 08.20.17 at 5:50 pm

Tax evasion is exactly what happens when you over-tax small business. Net tax revenue will end up lower. …Traveling to Europe in Greece, Italy, Croatia and Spain it is common for restaurants to claim their credit card terminal is not working that day so you must pay cash. When you tell them you don’t have any cash the terminal seems to work. That 20% plus VAT tax included in the price along with other high income taxes makes it worth while for them to try to get cash when ever possible. I suspect we will see that coming to Canada soon after the proposed changes take effect.

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

Don’t fall for the woe-is-us Italian persecution complex.

Tax on restaurants, hotels, tourist products, and select food items, etc is 10%.
Tax on general food/staples, newspapers/periodicals/books, etc is 4%.
Tax on everything else, electronics, etc is 22%.

The only thing I’ll give them is that as opposed to our 4.95%/4.95% employer/employee pension contributions theirs is 24%/9%. Which means that combined with a culture where credit cards are a bit alien, and loans are generally harder to get, you ain’t getting any housing bubble other than foreigners buying up a ton of property.

#92 Bguy1 on 08.21.17 at 9:27 am

Re: GST/HST registration

In addition to the $30,000 per year, it is also if you go over $30,000 in sales over the last four calendar quarters, or if you go over $30,000 in a calendar quarter

Any of the above will trigger a “requirement to register”

#93 cramar on 08.21.17 at 9:30 am

#17 InvestorsFriend on 08.20.17 at 5:04 pm

Do You Pay Your Credit Card Off Monthly?

[snip]

It costs a lot of money to be poor! The poor pay the highest interest rates and generally don’t get the discounts that the rich do. No 1% cash back cards for the poor!

—————-

I’ve seen ads on U.S. TV channels for a card that pays 1% on purchase, AND gives you another 1% when you pay it off! Nice!

Wish we had a competitive credit card market like this this here in Canada.

#94 Nick on 08.21.17 at 9:34 am

“Victoria Real Estate” and “For those about to flop”, do you two each run your own blog? You two are running mini-blogs inside the comments section of this pathetic blog.

I enjoy reading your analysis of the market but have to wade through the comments from the deplorables to find it.

Thanks and keep up the number crunching!

– Nick

#95 Lee on 08.21.17 at 9:47 am

#91 Spaccone,

Tax evasion is what happens with criminals.

#96 Jay (not that one) on 08.21.17 at 9:48 am

I don’t know what’s involved in getting on Amazon, but the Google play store is a one-time fee of $20 and the iTunes store is an annual fee of $99.

You could finally sell some books to entitled millennials, and your kitchen floor would ne’er be the wiser.

#97 Ponzius Pilatus on 08.21.17 at 10:08 am

#7 WUL on 08.20.17 at 3:57 pm
There are a couple of other reasons to add to Garth’s why limited liability of corporations (austensibly protecting shareholders) is largely illusory with a small closely held corporation. Banks will simply ask the shareholders for guarantees from the shareholders in support of the business financing. Also, every standard form guarantee I have ever read allows the bank to sue the guarantor alone (the Bauer clause – Bank of Montreal v. Bauer) without exhausting its recourse against the company first.

Also, that company which leases you the big honking photocopier, forklift, delivery truck etc will have you on the business end of a guarantee if they have the heft to insist upon one.
————-
Those sanctimonious blog dogs who don’t read the comment section miss out on free expert advise like this one.
Thanks WUL.

#98 Ponzius Pilatus on 08.21.17 at 10:14 am

GST and HST are the same thing. The $30,000 threshold is the point at which you are required to file. You can certainly file for a lower amount of revenue, claiming input tax credits and deducting them from the tax collected. — Garth
—————-
Another case for reading the comments.
Some really smart posters here.
Love the comment section.
Thanks Garth.

#99 Ponzius Pilatus on 08.21.17 at 10:22 am

#17 InvestorsFriend on 08.20.17 at 5:04 pm
Do You Pay Your Credit Card Off Monthly?

The savvy readers of this blog presumably mostly pay their credit card bills off monthly and incur no interest. The card company makes their money on the merchant fees.

Ask any ten people around you if they pay their credit cards off monthly. Most, maybe all, will claim they do. They may be fibbing.

Look at Canadian Tire’s credit card operation. (From the Q2 report) They charge 26% interest and their annual revenue amounts to 22% of their average total balances due.

It seems that at least 4 out of 5 Canadian Tire Options MasterCard customers are running balances and paying interest. The average balance is $2761. There are 1.9 million.
———–
No problem here.
I always pay off my Canadian Tire card balance with Canadian Tire money.
No need to thank me for the free advice.

#100 hoody on 08.21.17 at 10:23 am

#70 Smoking Man on 08.20.17 at 10:54 pm

69 Palmateer on 08.20.17 at 10:46 pm
I checked out Smoking Man’s twitter feed.

Bizarre and disturbing.
……

Promise me before you kill me you will have the dignity to take off the hoody so I can see your face.

=====

You are funny.

That would be like calling you to the gas chamber by your name, instead of your tattooed number.

That’s not how totalitarian justice works.

#101 n1tro on 08.21.17 at 10:27 am

#86 Wrk.dover on 08.21.17 at 6:47 am
A four man operation sells one hundred burgers an hour @ $5.00 each including drink and fries with that.

Equals $500 in drawer for $40 wage outlay @ $10/hr. Equals 40 cents wage/meal.

Minimum wage shoots up to $15.00, now costs $20 more to put $500 in drawer. Cost increase is 4% on bottom line. Equals sixty cents wage per meal… total.

Hard right wing bloggers assume burger will double in price. No, not assume, adamantly know, a twenty cent labour increase on a five dollar order will double its cost to a ten dollar bill.
—————————————

Right wingers assume burger prices will double (1 assumption).

Left wingers assume:

1. 100 burgers an hour – 1.6 burgers/min suspending reality of actual business operations

2. That increase in labor cost is the only cost that increases in a business and is the only thing that would be added to the retail cost of the meal.

3. That the increase minimum wage somehow helps the poor when it only helps the poor who actual work

4. The $15/hr number some sort of logically calculated number when in reality it is an arbitrary number pulled out of a liberal’s ass. If $15/hr will help the working poor, then why not $16/hr, $18/hr, or $30/hr? if the calculation of the above “counter to
right wing argument” scenario holds true, the increase in the is still very small isnt it?

5. Employers will just automatically start paying employees more. To enforce that the working poor actually gets paid $15/hr costs tax payers money while market rates don’t. Do you really think small businesses like restuarants actually pay minimum wages now? Or do they really pay something less and then take the tips end of the day and pool it together and divide it up so that workers may get minimum and a little more that day?

6. Assume that the government knows what they are doing. If you trust the government to legislate minimum wage, then why not trust them to set all prices, wages and interest rates in the economy??

The point is that the market should set minimum wages because if an employer doesn’t pay enough, workers will leave for the next higher paying *no skills required* job. The government should be only involved in setting that employers provide safe working conditions, etc, etc.

#102 Ponzius Pilatus on 08.21.17 at 10:29 am

#29 crowdedelevatorfartz on 08.20.17 at 6:34 pm
@#80 Ace Goodheart
“Please. Build. Some. Cars. Elon.”
+++++
Tesla Part deux
It was interesting when 6 or so months ago Tesla was accepting money($1000 deposits) for “affordable” electric cars that hadnt even been designed yet….
I “poo poo’ed” the whole idea as a financial and public relations disaster….and the millenials snarled at this grumpy old Boomer.

Well, here we are, month later, evrything is behind schedule but the Elon Musk promises are bgetting better…….lets see what kind of “quality” cars are ground out at the overworked and inexperienced Tesla factories…….
I’m sure Ford , GM and Fiat are shaking in their boots.
The internal combustion engine IS on the outs ( this weeks The Economist magazine discusses the future of green cars) ……unfortunately Elon Musk will be sipping green cha on the Red Planet before he usurps the car industry with his “affordable” electric horseless carriage……
But look on the bright side.
He unceremoniously dumped uber bee-yatch Amber Heard without so much as an email…….
———–
I’d never buy anything but deoderant from a guy called Elon Musk.

#103 Ponzius Pilatus on 08.21.17 at 10:43 am

#41
I get so frustrated with the world sometimes. So many people believe in impossible things like carbon taxes and minimum wages. They just don’t work and we know they don’t work. For example, if the minimum wage worked, why stop at $15/hour? Why not $30? And if $30, why not $45? How much would a Costco pizza (currently $10) cost if Costco had to pay it’s workers $45 an hour to make the pizzas? It’s the same as the burger example, Costco doesn’t print money they make pizzas and the whole cost of making the pizza has to be embedded in the price.
—————
This post is a good example of linear thinking.
Like if Costco paid its workers nothing, the pizza would be free.
By the way, the plural of pizza is pizze.

#104 Old Ron the Realtor on 08.21.17 at 11:02 am

Good point about Sole Proprietorships, I am a big fan of small ball. Although, I don’t get the Trudeau bashing. Politics is a mugs game for anyone who doesn’t play it. If you are not in the club, it is a waste of time. Unless you are an old guy who uses it to pass the afternoon while sitting on life’s sofa.

In Canada we are blessed to be governed by either Centre Right or Centre Left parties. All parties are socially liberal, except for the Alberta, Saskatchewan, and Manitoba wing of the Conservatives who still think their Grand Daddies walked with Dinosaurs.

My point is if you are in business, you can’t afford to lose any customers for political reasons, or any other self defining belief system for that matter. So while I vote, I don’t pontificate on politics. Why ? It has never made anyone a dime. Work within the laws of the land, and pay your taxes. If they become burdensome, we have this thing called the ballot box, and it usually gets it right every 48 months.

However if your side loses on election day remember this, 99.5% of the world’s population doesn’t get to live in Canada, you are blessed.

#105 n1tro on 08.21.17 at 11:15 am

#103 Ponzius Pilatus on 08.21.17 at 10:43 am

The poster I believe is referring to the economic concept of diminishing returns which states that by adding more of one factor to production (pizzas….no one says pizze so not sure why you are trying to be a douche here), while holding all others constant, will eventually yield lower per-unit profit which would make running the business less and less worthwhile. The graphs used for this concept is anything but linear.

#106 Leo Trollstoy on 08.21.17 at 11:20 am

Minimum wage simply pushes companies towards automation or otherwise replacing salary expenses with IT or equipment maintenance costs.

#107 Marc on 08.21.17 at 11:25 am

Garth! I’ve been reading for years and it was a pleasure to learn that you are self-publishing! Nowadays you can clear the space in your kitchen by doing print-on-demand, which is kind of like condos going up here in Victoria… The self-publishing industry is just starting its own bubble, so if you are in the market for publishers it could be a great time for the Greatest Fool to be released!

Hint: Look for a publisher that gives you 100% royalties and low print rates for a few copies to do book signings with. Your wife will thank you for the kitchen table space.

Cheers!

#108 IronMike on 08.21.17 at 11:29 am

Do you really think small businesses like restuarants actually pay minimum wages now? Or do they really pay something less and then take the tips end of the day and pool it together and divide it up so that workers may get minimum and a little more that day?
______________________________

The answer to your question is yes. Yes, restaurants pay minimum wage now. Restaurant owners do not and can not pay less than minimum wage in Canada. Rules are different in the USA for service industry employees, but not in this country.

#109 Victor V on 08.21.17 at 11:35 am

Do you think Toronto should pursue a tax on vacant homes? Take a few minutes and fill out this survey:

https://www1.toronto.ca/wps/portal/contentonly?vgnextoid=e40bee998c7cd510VgnVCM10000071d60f89RCRD

#110 IHCTD9 on 08.21.17 at 11:51 am

#25 X on 08.20.17 at 5:50 pm
Thanks for the reminder of what Trudeau is about to do to Canadian entrepreneurs.

I think the Liberals are closer to a tipping point on taxation than they think, even without the corporate kneecapping. I hate it even more knowing that many will not report their income.
_______

Most of Trudeau’s Cabinet just learned to wipe, and like many inexperienced prepubescents – some will need to learn the hard way.

A good lesson for T2 and Co. to start out with, is the idea that the more an activity such as production is taxed, the less of that activity is subsequently produced. The idea that any proceeds producing activity would quickly careen to zero if taxes climbed thru 60-70-80-90-100% isn’t hard to understand is it?

Is it??

The damage to the economy will be massive by the time T2, as well as pot smokers like Wynne and Notley are through. T2 will get another majority, Canadian females, Boomers, and older GenXers who weren’t stupid will win, male Millennials and all Canadian youth will lose huge.

Folks like me who don’t need the extra cash are already legally offsetting taxation for philosophical reasons alone. Oh yeah, we’re past the tipping point big time.

I look forward to more 5 figure tax returns, and thousands less overall in taxes paid in the years to come. I’ll be working hard to retire asap, and start taking out of the system rather than putting in.

#111 n1tro on 08.21.17 at 11:55 am

#108 IronMike on 08.21.17 at 11:29 am

I guess you believe that everyone reports all their income too since those are rules in Canada? Wake up.

Big restaurant chains, yes. Small ones that often have their credit/debit machines go “down” for the day and take in a good chunk of cash do not follow the rules. Forcing higher minimum wages will not help the working poor unless Kelsey’s or Montana’s can absorb all these other workers.

#112 IHCTD9 on 08.21.17 at 11:59 am

#30 BS on 08.20.17 at 6:37 pm

Tax evasion is exactly what happens when you over-tax small business. Net tax revenue will end up lower. It is difficult for a regular working person to avoid an unfair tax increase because income is reported but a small business always has cash. Traveling to Europe in Greece, Italy, Croatia and Spain it is common for restaurants to claim their credit card terminal is not working that day so you must pay cash. When you tell them you don’t have any cash the terminal seems to work. That 20% plus VAT tax included in the price along with other high income taxes makes it worth while for them to try to get cash when ever possible. I suspect we will see that coming to Canada soon after the proposed changes take effect.
_______________________________________

If I were Trudeau, I wouldn’t worry about a 100.00 restaurant bill nearly as much as some of the other shenanigans going on.

This is just one more reason why I say young Canadian Tradesmen have it made in the shade. Working under the table for 40.00/hr all the time, even for your employers customers for crying out loud. No rules, no cares, and it’s all going on right now.

#113 saskatoon on 08.21.17 at 12:13 pm

those who support min. wage laws are ALWAYS one or more of the following:

1. poor/lazy
2. arrogant
3. unethical
4. low iq
5. low self-esteem

#114 Wrk.dover on 08.21.17 at 12:30 pm

#101 n1tro on 08.21.17 at 10:27 am

1. 100 burgers an hour – 1.6 burgers/min suspending reality of actual business operations

—————————————

So you took the bait/bit the burger. I had switched it to 50 burgers an hour at $10/meal minutes later.

But you never do stand in line shuffling your feet at the cash window, because you are in the seventh car lined up at the drive through. How much a minute into the till with a window and two cashiers, all with lines awaiting?

It is no stretch of the imagination to think a four person shop does 50 burgers/fries and drinks an hour, because I am pretty sure the dozen worker joint is doing a proportionately much better ratio than that.

I wonder what ever became of an idiot named Ray Krok, that thought he could sell enough burgers at a nickle a piece to grow a world wide megalopy?

n1tro industries has a great business model, find a worker that will show up 40 hours a week 50 weeks a year and give him $13,500. That worker will do more to support the system then ole n1tro.

I am sticking with the doubling of minimum raise jacking fast food by a single digit percentage. Not double.

n1to also says…

4. The $15/hr number some sort of logically calculated number when in reality it is an arbitrary number pulled out of a liberal’s ass.

Because 30 grand ought to make rent, dental, food, clothing and transportation affordable. n1tro doesn’t expect full time workers to need teeth in his back room where they kneel before him, thanking him for a job.

#115 Eks dee Sipal on 08.21.17 at 12:31 pm

Correction time:

#17 InvestorsFriend…”It costs a lot of money to be poor! The poor pay the highest interest rates and generally don’t get the discounts that the rich do. No 1% cash back cards for the poor!”

WTH are you talking about? Anyone can sign up for a card that pays 1 to 2% cashback. The Options card you mentioned gives back 4% on in-store purchases even. Every business owner should find a way to use credit cards for major purchases like equipment, inventory, etc., because it’s like free money as cash back. Say you have a 20,000 credit limit on a cash-back card, and use the full amount for a major purchase or even several purchases over a month, that’s an instant $200 back. Do it a few times and it beats a savings account hands down. Give the cash back to the poor. There you go. (Remember to pay it off at EOM, though:)

#35 Jacko… Have you never been to a farmers market before? Maybe you thought it would be like going to the mall with your friends? Farmers usually don’t pay merchant fees to have a credit card reader. They’re too busy, you know…farming and such.

#41 Nonplused… agreed except for “I get so frustrated with the world sometimes. So many people believe in impossible things like carbon taxes and minimum wages. They just don’t work and we know they don’t work.”

But you offer no solution. Hallmark of a “Conservative”? I guess I should know by now what to expect from you after such a long post. Nothing. Thanks.

#45 NEVER GIVE UP… You are confusing the banks with the government. Oh wait… Anyway, the banks don’t need your business, and never have. You are less than a cockroach to be squashed. Did you think otherwise?

#116 Eks dee Sipal on 08.21.17 at 12:35 pm

#113 saskatoon… ummmm, no. I am none of the above and support minimum wage laws. The problem is that you assume that everyone should have a job, preferably working for someone else. That’s where you go wrong.

http://www.huffingtonpost.ca/2017/07/04/ontario-minimum-wage-increase-history-suggests-minimum-wage-hik_a_22674006/

#117 Iconoclast on 08.21.17 at 12:44 pm

#29

> I’m sure Ford , GM and Fiat are shaking in their boots.
> The internal combustion engine IS on the outs ( this
> weeks The Economist magazine discusses the future of > green cars)

Not so fast, Elon.
Mazda has announced the HCCI engine for production.
Kind of a hybrid gas/diesel, with 15% efficiency boost and low emissions.

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

http://www.greencarreports.com/news/1112222_how-mazdas-skyactiv-x-engine-based-on-hcci-actually-works-video

Internal combustion will be with us for quite a while yet.

#118 Iron Mike on 08.21.17 at 12:45 pm

n1tro
_________________

Your advice to the defrauded employees from employers circumventing the law is to what? Take it?

Small employers that aren’t paying their employees min wage should be reported. If they are not paying their employees then small business owners need a lesson on what their obligations are. I would be happy to provide it to them with legal action, which is what my advice would be to anyone that is being defrauded by their employer.

Raising the minimum wage will certainly help the working poor. How much it will help and to what extent is rather debatable, but it will help. Your argument that it wont make a difference because everyone breaks the law is ridiculous. Wake up.

#119 Eks dee Sipal on 08.21.17 at 12:47 pm

#52 Ace Goodheart…. So, basically, you are saying we should all cheat on our taxes? But I thought you high-income guys already did that. Now look at the mess we’re in. This blog keeps blaming the new guys in government, but don’t you think now it’s just a result of years of corruption and neglect by Conservatives and Red Conservatives? Someone has to pay, eventually. I guess it will be small business’ turn now.

#120 n1tro on 08.21.17 at 12:49 pm

#109 Victor V on 08.21.17 at 11:35 am
Do you think Toronto should pursue a tax on vacant homes? Take a few minutes and fill out this survey:

https://www1.toronto.ca/wps/portal/contentonly?vgnextoid=e40bee998c7cd510VgnVCM10000071d60f89RCRD
—————————–

Oh God, another idiotic initiative from a government that brings you +$70K staircases.

The survey is asking people’s opinions if there should be a vacancy tax.

First question is if you live or own residental property in Toronto. <— these 2 events are mutually exclusive. eg. I could live in London and own a empty condo in Toronto. Here's the kicker…if you answer No, you are done the survey! It's like they don't care what your opinion.

If you answer Yes, the survey goes to ask if you would like a vacancy tax by mandatory, voluntary, or snitch line method. Who in the right mind would say they want to be taxed??

#121 Eks dee Sipal on 08.21.17 at 12:52 pm

#106 Leo Trollstoy…. “Minimum wage simply pushes companies towards automation or otherwise replacing salary expenses with IT or equipment maintenance costs.”

And… Did you have a point? Why do “Conservatives” always assume that jobs, jobs, jobs is what makes a successful economy? The whole point of capitalism is towards greater efficiency and the REDUCTION in slave labour (modern term= corporate salary/wages).

#122 Iron Mike on 08.21.17 at 12:54 pm

Saskatoon, your statement is intellectually dishonest, if you don’t understand why, you really don’t know much.

I don’t necessarily agree that $15 hr is the solution to the working poor’s problems, but you clearly aren’t advancing the debate with your ill-conceived list.

#123 Keith on 08.21.17 at 1:00 pm

Right wing cognitive dissonance:

“There’s tons of opportunities out there” (Never specified as to what they are)

Successful small business owner speaks reality: I worked six/seven days a week, 12 – 16 hours a day, paid my employees more than me, got taxed to the gills all the way.

So if opportunities are going begging, and there streets of gold out there, why do most businesses fail and why do self employed/small business people have to work twice as hard as anyone else? Something is wrong. Please inform us wage slaves where all these lucrative unspecified opportunities exist for those who are willing to work and sacrifice for success.

#124 re., saskatoon on 08.21.17 at 1:04 pm

have a look in the mirror

#125 n1tro on 08.21.17 at 1:04 pm

#118 Iron Mike on 08.21.17 at 12:45 pm

My argument is NOT that more money won’t help the working poor. It is that shady employers will not be doling out the $15/hr like you think they will which puts the working poor in the same position. Legal action? Yeah, the working poor don’t have enough money to make rent but they have for lawyers. Also, while they are pursing this justified legal action with say a pro bono lawyer, they would be working where exactly? And the duration in which these cases go through the legal system is how long?? My example is real life, not some hypothetical ideal world that liberals live in.

#114 Wrk.dover on 08.21.17 at 12:30 pm

Did I trigger you much? Apologies.

“find a worker that will show up 40 hours a week 50 weeks a year and give him $13,500. That worker will do more to support the system then ole n1tro.” <– This makes no sense. You are saying give someone $13.5K for a year's worth of work and they'll be more productive than say me? Or are you saying add $13.5K to their existing minimum wage and they will be more productive than me?? You are probably correct. I'm not very good at flipping burgers or mopping the floors.

"4. The $15/hr number some sort of logically calculated number when in reality it is an arbitrary number pulled out of a liberal’s ass.

Because 30 grand ought to make rent, dental, food, clothing and transportation affordable. n1tro doesn’t expect full time workers to need teeth in his back room where they kneel before him, thanking him for a job."

So you don't counter with a link that $15/hr was methodically derived but come back with sarcasm and that $30K isn't enough for dental and stuff. Using your logic, I would argue $20/hr wouldn't be enough for rent, dental, and the basic needs of people either.

#126 Mike in Edm on 08.21.17 at 1:12 pm

Can someone answer me this…?

The large majority of the assets between my wife and myself are in my name.

If we started her up a sole proprietor business under her name only, and someone sued her, could they get even a penny that’s in my name? Not sure if this would change the answer, but what would happen if I was the one that was actually doing all the work in the business? Any different outcome if she got sued?

#127 conan on 08.21.17 at 1:23 pm

#113 saskatoon on 08.21.17 at 12:13 pm

Space Cadet Alert!

https://youtu.be/KmtttE3u1g0?t=44

#128 Victor V on 08.21.17 at 1:28 pm

Downside to easy approval? Home equity lenders say they ‘fill a need,’ critics warn of risk

http://business.financialpost.com/news/fp-street/downside-to-easy-approval-home-equity-lenders-say-they-fill-a-need-critics-warn-of-risk/wcm/5b064993-6cb0-41c6-907d-a80bf3714673

Their ads trumpet the ease of using the equity in your home to get cash.

Alpine Credits helps customers get loans approved “regardless of your credit, age, or income,” the company’s commercials say. In a Capital Direct radio spot, veteran B.C. broadcaster Bill Good encourages listeners to call one of the company’s “friendly” advisers “if you could use any amount up to $300,000 or more,” telling them “it’s your money.”

While federally regulated banks dominate Canada’s residential mortgage lending market, accounting for more than 80 per cent, business appears to be growing for many “alternative” lenders, including two of the most visible B.C. companies, Capital Direct and Alpine Credits, who say they have provided more than $1 billion of loans each.

#129 InvestorsFriend on 08.21.17 at 1:30 pm

The Goal is to Improve Living Standards not to create jobs

#121 Eks dee Sipal on 08.21.17 at 12:52 pm said:

Why do “Conservatives” always assume that jobs, jobs, jobs is what makes a successful economy? The whole point of capitalism is towards greater efficiency and the REDUCTION in slave labour (modern term= corporate salary/wages).

***********************************
Absolutely correct. It is goods and services and standards of living that we want. If that can be done without anyone lifting a finger, (o jobs) that would be great.

If automation finally creates the jobless economy then the debate will be about how to distribute the output of the economy.

The role of government and social programs is sure to grow. This is inevitable.

Meanwhile, own companies (debt and equities) in order to be sure you get your share of the output of the economy.

If jobs are going away you’d be wise to own some capital when the day comes when you don’t have a job.

#130 Wrk.dover on 08.21.17 at 1:37 pm

n1tro plans to have the wife of the worker he pays $6.50/hr., subsidise that worker from her wages at the minimum wage job she has at n1tro’s other business.

Between them they will gross 26 grand total. Stellar! According to IHCTD9, if they live rural they can then afford a pair of quads to trespass with on their days off.

#131 IHCTD9 on 08.21.17 at 2:00 pm

#117 Iconoclast on 08.21.17 at 12:44 pm

Internal combustion will be with us for quite a while yet.
________

And permanently in non-metropolis Ontario, where the hydro costs starve the Citizenry, and the distances travelled thru a pitch black -25C winter morning mean it’ll be cheaper and vastly more practical to drive a 12V Cummins RCSB 4X4 pretty much forever.

#132 IHCTD9 on 08.21.17 at 2:12 pm

#130 Wrk.dover on 08.21.17 at 1:37 pm

Between them they will gross 26 grand total. Stellar! According to IHCTD9, if they live rural they can then afford a pair of quads to trespass with on their days off.
___________________

Actually, according to IHCTD9, a small city couple making the new Ontario minimum wage of 15.00/hr will be able to buy a nicer house than a GTA dwelling couple that earns a household income 50% higher than the Toronto median.

And yes, they will be able to Legally ride their brand new paid for – top of the line – best in the business – universe conqu…(OK I’ll stop) – Grizzly 700’s though thousands of kilometers worth of the E.O.T.A trail system after purchasing a permit, trailer, and truck – all of which they could eventually acquire over a few years of being smart with their money and buying.

#133 Iron Mike on 08.21.17 at 2:15 pm

N1tro

No, your argument, which is nonsensical, is that it makes no difference what the law is because shady employers do whatever they want. If that truely is your argument, why are you against a raise in min wage? Seems to me that it would make no difference in your bizarre worldview.

Also are you seriously suggesting that workers that are getting screwed by their employer do nothing? No complaint to the labour board (which is free), no recourse at all? They should just take it?

Believe me sir, I am no liberal, but I would not allow someone to break employment law at my expense, and I would advise anyone to break the spine of these shady employers in half. If you know employers that do this – you have an obligation to report them.

Minimum wage laws are enforceable in this country, the vast, vast majority of employers do follow them, we shouldn’t cater laws to those that are “shady” enough to steal wages from the poor. Your suggestion that min wage laws are not (or should not be) enforced needs to be better thought out.

#134 Vic Fact Checker on 08.21.17 at 2:24 pm

#94 Nick on 08.21.17 at 9:34 am
“Victoria Real Estate” and “For those about to flop”, do you two each run your own blog? You two are running mini-blogs inside the comments section of this pathetic blog.

I enjoy reading your analysis of the market but have to wade through the comments from the deplorables to find it. Thanks and keep up the number crunching!
———–

What number crunching?

VREU continuously ignores the actual facts that Victoria has increased over 20% since she started her ramblings and rants about peak sales in Victoria at the beginning of 2016.

She tries to extrapolate the experiences of other cities onto Victoria because the empirical data has flown in her face for two years all the while predicting the coming collapse from the ‘collapse in sales’ since 2016.

The benchmark value for a single-family home in the Victoria core increased by 15.1 per cent to $829,600 in June, compared with $721,000 last year.”

http://www.timescolonist.com/business/homebuyers-paying-more-than-asking-price-74m-extra-up-to-june-1.20913635

Nice try VREU. Wrong again on all counts. Back to the basement and try again…

#135 IHCTD9 on 08.21.17 at 2:50 pm

#119 Eks dee Sipal on 08.21.17 at 12:47 pm
#52 Ace Goodheart…. So, basically, you are saying we should all cheat on our taxes? But I thought you high-income guys already did that. Now look at the mess we’re in. This blog keeps blaming the new guys in government, but don’t you think now it’s just a result of years of corruption and neglect by Conservatives and Red Conservatives? Someone has to pay, eventually. I guess it will be small business’ turn now.
____________________________

I like to accept the obvious facts for what they are, and worry about reconciling one to another later if they clash. That just means we don’t have enough facts right at the moment.

1. The government is not broke because everyone is cheating on their taxes, they’re broke because they are blowing piles of tax revenue on ideological crap that provides no financial return back to them. ie. they are spending more than they take in.

2. The government will “remedy” the situation by raising taxes. But we already know this will not work right? Especially not on wealthy business owners and self motivated entrepreneurs and contractors. These guys don’t put food on the table by watching the clock.

3. Trudeau and his Cabinet are not the folks to fix deficit and debt problems. Nor are they the pick for creating jobs, prosperity, or building an economy. No one voted for T2 for these issues.

We’re talking about Canadians here: Trudeau was put in power to legalize pot, take away from those who have and give to anyone else, talk about diversity and women, and because he was not Harper – that is it. Let’s not argue with the simple facts.

FWIW, the only ones who pay, are those who sit still and get boiled. Many Canadians won’t, and that is why higher taxation will fall well short of the Lib’s hopes. I know my contributions dropped huge in 2016, and I’m just a regular schmuck.

#136 saskatoon on 08.21.17 at 2:51 pm

#116 Eks dee Sipal

you are minimum #3.

you are in favour of initiating force against other humans.

you are morally wrong.

#137 Renter's Revenge! on 08.21.17 at 2:55 pm

#113 saskatoon on 08.21.17 at 12:13 pm
“those who support min. wage laws are ALWAYS one or more of the following:

4. low iq”

According to Jordan Peterson, there are no jobs for the bottom 15% of the population by IQ (~6:00):

https://www.youtube.com/watch?v=pu__97bVyOc

#138 Manitoba Whale on 08.21.17 at 2:57 pm

Jacko on 08.20.17 at 7:21 pm
Talk about missing tax revenue. T2 & CRA should take a walk through the Farmer’s Markets across Ontario. Missing a huge tax revenue stream there. I was just in St. Jacobs Ontario yesterday. Advertise over 400 vendors to visit and the majority only take CASH!
*****

Can’t speak for Manitoba but Kathleen Wynne has promoted and incentivized smaller farmers and farmers markets, yet no taxes are ever collected, unless an honest person added it to their gross income at tax time.

Wynne and by default, T2, have changed the makeup of many rural riding with their incentives to the ‘local’
movement. In the Ontario riding where my business is many older farmsteads are teeming with green thumb millennials who likely vote differently than the conservative ag base of the past. Granted, the smaller ag businesses may prosper more in this new era.
Comme si, comme sa

#139 IHCTD9 on 08.21.17 at 3:08 pm

#122 Iron Mike on 08.21.17 at 12:54 pm

I don’t necessarily agree that $15 hr is the solution to the working poor’s problems, but you clearly aren’t advancing the debate with your ill-conceived list.
_________________________________________

I tried to analyze this one a while back when I first heard word of it.

15.00/hr is a decent wage, but still low. Therefore the only folks affected by this new increase are the working poor who traditionally earn this wage.

So middle class families and up are not really affected by this minimum wage increase. The only effect they might face is maybe an increase in the cost of their morning Timmies coffee, or that cheeseburger they occasionally buy. If the price is objectionable, the middle and upper classes can always just pass on buying any more of these items in the future.

End result is some working poor now have a little more money to spend, others will lose their jobs. What’s the ratio? Over time, with all the automation and technology coming on the market – it’s going to favor job losses.

Final call? Some will benefit for a little while, others will be worse off immediately. Just about all these types of jobs are doomed anyway.

#140 n1tro on 08.21.17 at 3:11 pm

#133 Iron Mike on 08.21.17 at 2:15 pm

I’m against a government mandated minimum wage for many reasons which I won’t go over again. This does not mean I am against $15/hr jobs for the working poor. See the difference?

Depending on the subject, if you need to classify me, I am either a liberal, conservative, or a libertarian.

I’m not suggesting people getting screwed simply bend over and take it. I’m pointing out the realities of real life. Yes, You or I can put in a complaint which will be eventually followed up upon but if it doesn’t immediately change things for the poor person, the poor person more likely won’t do it because it will not immediately benefit them. Human nature.

I would love to see shady employers busted but I rather them go out of business.

Real life example: A restaurant I know of was being audited by Revenue Canada. They sent 2 of their finest to sit at the restaurant from 10am (open) to around 5-6pm to count the customers coming in to estimate the actual sales and extrapolate to what was being reported for the last few years (apparently they lost money for 6 years straight). This went on for 2 weeks.

The problem with this audit was that after the auditors left for the day, the restaurant told their evening customers (they open till 11pm) before being seated that their credit/debit machine was busted and that they could only take cash. Why? So they can hide the cash and try to balance out their credit sales to what had been reported overall in prior years.

What the auditors also failed to look into was the staff and what they were getting paid. On the books, the restaurant only had part time employees when it reality, these workers were full time working 10-12 hrs a day. The workers got paid $10/hr and tips which were gathered daily and split among the wait staff, kitchen staff,and owner. The salary for the wait staff averaged out to be about $13/hr.

The wait staff was definitely getting screwed so why didn’t they say anything? Because where else can you get a full time job for $13/hr (mostly cash) with no skills. Cheating the government for taxes when you are poor seems more justifiable compared income sprinkling I guess. The poor don’t have the luxury to champion social justice causes. They are too busy working to live by whatever means.

In a regular salary job, some places don’t pay as well as another companies but have more benefits. This gives the option for the worker to stay or leave depending on what they value. The same market forces that make companies competitive to retain workers applies to even the “lowest” job.

Let the market determine minimum wage.

Shady places like the restaurant will have high turn over which would eat into their operations and eventually make them go bust if they paid any less.

To finish off my story, none of the workers reported the restaurant’s shadiness so I took upon myself to report it. Not sure what came about it but several month later, I did notice that the name of the restaurant was changed slightly. I assume this was because they incorporated under a different name. Same owners, same staff, same food.

Same business practices.

#141 NEVER GIVE UP on 08.21.17 at 3:15 pm

#115 Eks dee Sipal on 08.21.17 at 12:31 pm
Correction time:
#45 NEVER GIVE UP… You are confusing the banks with the government. Oh wait… Anyway, the banks don’t need your business, and never have. You are less than a cockroach to be squashed. Did you think otherwise
==================================
==================================
Rather shallow response.
Banks and Gov are hand and glove.
Banks dont work hard anymore because Gov. guarantees all their loans.
Banks used to seek business from businesses and greased the development of business. No longer are they in that business. They are in the business of Greasing the palms of Government.

#142 IHCTD9 on 08.21.17 at 3:17 pm

#121 Eks dee Sipal on 08.21.17 at 12:52 pm

And… Did you have a point? Why do “Conservatives” always assume that jobs, jobs, jobs is what makes a successful economy?
____

If no one has a job, no one is spending any money. As long as things cost money, you will have trouble with any kind of economic activity when everyone in the country is broke.

Pretty easy to understand no?

#143 NEVER GIVE UP on 08.21.17 at 3:23 pm

#76 MF on 08.20.17 at 11:31 pm
#45 NEVER GIVE UP on 08.20.17 at 8:10 pm

“All I can say is I prospered in spite of Government not because of them.”

I don’t know the business that you operate, but chances are you transport goods on roads and use electricity at your establishment.
=================================
=================================
In the lower mainland the Gov collects $300 million in Gas taxes. Only $10 million goes to infrastructure. the rest is wasted on grandiose Government pensions and beautiful offices.
My business pays much more than our fair share of taxes for infrastructure.
Government has however helped existing homeowners get rich living in their homes.
They have helped foreigners get preferred access to real estate and Government loans to pump it up.

Meanwhile my children cannot afford a home here.

Let’s recap: you can’t afford a house and it’s the government’s fault. Maybe it’s you. — Garth

#144 Leo Trollstoy on 08.21.17 at 3:26 pm

#121 Eks dee Sipal on 08.21.17 at 12:52 pm
And… Did you have a point?

Yeah. I’m cool with that.

#145 TurnerNation on 08.21.17 at 3:33 pm

IHCTD9 good stuff as usual.
But you have been flagged for ThoughtCrimes
(I suggest signing your confession. It will be easier on your family this way.).

A dying breed.

M41ON

#146 NoName on 08.21.17 at 3:48 pm

“When #MAGA is so powerful he can stare down a #SolarEclipse.” And people think that something is wrong with me… Oh the horror.

https://twitter.com/__0HOUR1_/status/899710141938925569

#147 James on 08.21.17 at 4:00 pm

#146 NoName on 08.21.17 at 3:48 pm

“When #MAGA is so powerful he can stare down a #SolarEclipse.” And people think that something is wrong with me… Oh the horror.

https://twitter.com/__0HOUR1_/status/899710141938925569
…………………………………………………………….
Trump was already blind when he took office now he is just stupid and blind.

#148 Eaglebay on 08.21.17 at 4:27 pm

Minimum wage at $15.00 isn’t working in Seattle.
What makes people think it will work here.

https://www.usatoday.com/story/money/nation-now/2017/06/27/report-finds-seattles-15-minimum-wage-may-hurting-workers/431424001/

#149 Manitoba Whale on 08.21.17 at 5:57 pm

IHCTD9 on 08.21.17 at 11:51 am
Folks like me who don’t need the extra cash are already legally offsetting taxation for philosophical reasons alone. Oh yeah, we’re past the tipping point big time.
*****
Ditto for me.
Working less and winding down my shares in our businesses
M50MB

#150 Tired and Fed up on 08.22.17 at 6:24 am

I own my own business….employ 21. Went to bed at 2 am after working all day (yes another sick call in) then doing payroll (22k poorer today). Up at 4:30 am as staff is still sick (two out) so I guess I will be working til midnight again tonight. For certain positions, I pay minimum wage (the rest are higher due to skill sets–but with the increase they will want more now) but I fully pay for good benefits ($150 a month for each employee) and commission for those getting minimum wage (often $150 to $200) per cheque. I make 1/5 of what I made as a corporate employee–if I did it hourly I am sure it is 1/20th of what I use to make. All this after a $500k investment of my own money (mortgaged my house because NOBODY would give me a business loan, despite great credit and 25 years finance experience. I do my own bookkeeping, etc. When I opened my business I felt it was important to build a great team to treat them accordingly…. Hence benefits, extra commission, etc. You never see the reality of owning your own business until you do it. I just caught another employee stealing—had to invest $5k in cameras to prevent employees from robbing my till (doesnt matter, they still do it now they just get caught). The min wage hike will be more like 18 an hour with stat deductions attached. I have to raise skilled rates accordingly. I will be forced to drop commission rates to compensate–no I cannot raise prices. I have a new competitor who opened across the street and has undercut my prices already–he doesn’t pay benefits, doesn’t pay commission and just has a turnstile of employees which I hope will affect him adversely if I can hold on here. My point–? Customers don’t care how good I am to my team—-90 percent only care about price. I bet those on this blog yakking about a “living wage” will drive two blocks out of their way for a cheaper hamburger. Vent over, I have to go to work.

#151 Rebs on 08.22.17 at 12:23 pm

*As for limited liability – believing a company can shield you from business-related lawsuits – that’s largely a myth. If someone wants to whack you, they’ll name officers, directors and owners along with a corporate entity, and often find sympathy from the courts.*

I can see how the arguments against incorporation are very smart for most self-employed companies. However, piercing the corporate veil in Canada is generally-speaking still difficult. Proof of fraud or professional misconduct is generally required. For general debts, companies can close their doors/change entities and normally aren’t pursued further; which is very unfair. It never ceases to amaze me how many dishonest people are out there.