Sprinkles

Another day, another detour. In Washington, Donald Trump used some average families as props while announcing a “giant, really giant” tax cut. A household making $75,000, he said, would see their federal taxes “cut in half.” At the same time the US corporate tax rate is being gutted, from 35% down to 21%.

In Ottawa, our multi-millionaire Minister of Fairness was burdening small business owners with a new raft of regulations designed to extract an extra $220 million in taxes from their hides. To make up a little, the small business tax rate is bring cut by one-half of one per cent. The target this time (more are coming in the March budget) is “income-sprinkling”, the made-up and pejorative phrase used to describe how families divide compensation to try and reduce tax (which has been perfectly legal).

The real celebration, however, was taking place over at the stone castle near Parliament Hill which houses the CRA. Just imagine how many more bodies and overtime will be required now to ensure the following is adhered to by hundreds of thousands of small enterprises:

“These tax changes (which are proposed to be effective for the 2018 and subsequent taxation years) will clarify the process for determining whether a family member is significantly involved in a business, and thus is excluded from potentially being taxed at the highest marginal tax rate (known as the tax on split income or TOSI). The changes include clear, “bright-line” tests – or off ramps – to automatically exclude individual members of a business owner’s family who fall into any of the following categories:

  • The business owner’s spouse, provided that the owner meaningfully contributed to the business and is aged 65 or over.
  • Adults aged 18 or over who have made a substantial labour contribution (generally an average of at least 20 hours per week) to the business during the year, or during any five previous years. For businesses with seasonal operations, such as may be the case with farms and fisheries, the labour contribution requirement will be applied for the part of the year in which the business operates.
  • Adults aged 25 or over who own 10 per cent or more of a corporation that earns less than 90 per cent of its income from the provision of services and is not a professional corporation.
  • Individuals who receive capital gains from qualified small business corporation shares and qualified farm or fishing property, if they would not be subject to the highest marginal tax rate on the gains under existing rules.

“Individuals aged 25 or over who do not meet any of the exclusions described above would be subject to a reasonableness test to determine how much income, if any, would be subject to the highest marginal tax rate. In certain cases, adults aged 18 to 24 who have contributed to a family business with their own capital will be able to use the reasonableness test on the related income. For additional clarity, the Canada Revenue Agency (CRA) has released guidance with respect to these measures. The CRA’s guidance will seek to help businesses and family members understand the operation of the measures and, in doing so, effectively reduce their compliance burden in relation to these new rules.”

And what about gender equality, I hear you cry?

Well, if you and another person start a business as co-owners, you can each divide the profits as tax-efficient dividends, whether you work there or not. But if you marry your partner, too bad. Their tax rate jumps to the highest level, unless s/he is an employee, according to the strict CRA guidelines.

And check out this hunk of federal logic:

Gender considerations previously communicated with respect to the proposed income sprinkling measures are not affected by these revised draft legislative proposals. Data show that men represent over 70 per cent of higher-income earners initiating income sprinkling strategies, and women represent about 68 per cent of recipients of sprinkled income. While this income is of benefit for recipients, it also creates incentives that reduce female participation in the workforce.

There you have the rationale for a small business dude being prevented from paying income to his wife for a venture they started together using joint matrimonial funds, or through a shared risk. It makes the babes lazy! They stay home all day snorfling Cheetos!

Seriously. This is your government at work. Making life complicated. Offering disincentives to be an entrepreneur. Creating bureaucracy. Dissing women. Trying to reengineer society. Fostering an employee mentality. Meanwhile family trusts, which both Morneau and the prime minister have and receive income from, are exempted from the rules. Kids, wives, pets – anyone can receive tax-deferred cash from a trust, for no work. Do as they say. Not as they do.

And another detour on rates. Last week the Bank of Canada took a pass, refusing to raise despite a strong labour market, romping economic growth and galloping growth in household debt. This week the US Fed hiked its benchmark rate for the fourth time in 12 months, and promised three more to come in 2018 as it resolutely normalizes the cost of money.

Canadian houses, overall, cost about double those in the States. And you blame the Chinese. Hilarious.

202 comments ↓

#1 Victoria Real Estate Update on 12.13.17 at 5:45 pm

THE FIRST LAW OF REAL ESTATE:
EVERY BOOM IS FOLLOWED BY AN EQUAL AND OPPOSITE BUST

It’s a time-tested fact that history has shown to be true over and over again with housing bubbles all over the world as proof.

The concept is simple – kind of like the apple falling from the tree thing.

I’m referencing Isaac Newton. The same Isaac Newton who lost big time in the speculative bubble of the South Sea Company’s stock in 1720. After making a tidy profit from it months earlier, Newton watched the price of the stock soar to unbelievable heights. Unfortunately for Newton, the hype was too much and he went all in when the red bubble indicator light was flashing bright red (like that of Victoria real estate right now).

Anybody who knows anything about speculative bubbles (think Canadian real estate) knows that every boom is followed by a bust and those who are uninformed or simply refuse to see the bubble and get in at bubble prices will likely face brutal consequences.

This is what happened to Newton.

THE BOOM-BUST CYCLE OF HOUSING FOLLOWS A SERIES OF BASIC EVENTS

THE BOOM YEARS:
* Housing prices suddenly take off, often from “safe” levels that had been stable and properly supported by income levels for several years (think Canada 1995-2000).
* House prices post abnormally strong gains year after year as a result of stimulative policy (lax lending standards), poor enforcement of these lax lending standards (allowing mortgage fraud) and highly leveraged speculation (gambling, mostly by LOCALS).
* Based on abnormal and dangerous debt levels, the multi-year surge in house prices leaves gains in incomes far behind, creating the necessary conditions (little to no price support and gargantuan debt levels) for the coming bust years.
* Abnormally strong (and temporary) gains are seen in home ownership levels, real estate investment, speculation (mostly by LOCALS), construction activity, HELOCs, etc. and the vacancy rate temporarily drops to abnormally low levels.
* The most important indicator of the degree of excess reached in a housing bubble is the degree to which household debt levels are allowed to skyrocket (as a result of reckless policy). And in Canada, this has been off the charts. Canada’s escalation in private sector debt basically mirrored that of the bubble years in the US from 2000 to 2008. Then skyrocketed past it after 2008 (second chart, Canada is black, US is blue).
* The pro-real estate MSM pumps real estate just as hard as real estate “professionals”, keeping the herd blind to the financial risk that is always involved in taking on a mortgage (especially in a housing bubble).
* Those who call it what it is – a bubble – are labelled doom-and-gloomers by “professionals” and anybody with a mortgage. It’s always different in a housing bubble… until it isn’t.
* Policymakers deny the existence of a housing bubble in their country and repeatedly offer assurances of a soft landing.
* After prices stop rising, any additional stimulus proves to be ineffective as the market correction forces (that exist as a result of irresponsible policy) assume complete control of the market (and prices).
* Housing bubbles trash the real economy of a country. Overdependence on the (overactive) housing industry (which stimulates the entire economy as long as house prices are rising) masks the growing list of problems with the real economy (until prices stop rising).
* As house prices fall, many mortgage holders, who had become dependent on rising house prices to pay the monthly bills (BC has a -8% savings rate), realize they are way over their heads in debt on a rapidly depreciating asset that they bet their financial future on by going all in. A significant number of them end up facing financial ruin.
* Many of those who took on (new or additional) mortgage debt at bubble prices learn (too late) that there is no such thing as “good debt”, that leverage works as much against you as prices fall as it does for you as prices rise and that dismissing any and all fact-based claims of a bubble as doom-and-gloom is always a bad idea.
(continued)

#2 dakkie on 12.13.17 at 5:47 pm

The CRASH Of The Canadian Dollar Is IMMINENT! – THIS Is Why

http://investmentwatchblog.com/the-crash-of-the-canadian-dollar-is-imminent-this-is-why/

#3 Victoria Real Estate Update on 12.13.17 at 5:48 pm

THE BUST YEARS:
* It’s true that real estate is local. In a country with a housing bubble, this means that each city has it’s own peak month which marks the beginning of that city’s bust years (sometimes a small number of cities experience a relatively small price correction).
* As the bust years play out and house prices fall, claims that the price bottom is in are made every day by those in the industry.
* Despite the efforts of policymakers to stop the price decline, house prices fall back to the long-term mean (that was established before lax lending standards were implemented) in each city. Prices often overcorrect past this level.
* Cities with the highest levels of speculation (think Victoria, Vancouver and Toronto) always end up experiencing the most brutal price busts.
* During the boom, rising prices and an overactive housing market stimulated the entire economy. However, during the (equally powerful) bust, no artificial stimulation of the economy exists and the (now compromised and much weaker) economy isn’t able to support bubble house price levels. The weakness of the post-boom economy (with its dramatically lower consumer spending levels, job losses, lower wages (in a lot of cases), elevated debt levels, etc.) plays a significant role in pushing house prices back down to the long-term mean.
* Despite the fact that irresponsible (kick the can down the road) policy is to blame for the boom (and therefore the bust), policymakers deny any responsibility, claim that things like speculation and outside forces are to blame and that nobody could have seen it coming.
* However, plenty of renters saw it coming from a mile away. Those well enough informed to avoid the financial trap that is a housing bubble are rewarded with the opportunity to buy a house (to live in) at shockingly lower prices. Prices that are in line with the long-term mean of their city. Prices that come with a strong likelihood of future price appreciation (and no impending bust). Prices that are once again in line with incomes and other fundamentals. And prices that come with much less stress, lending to a much happier household.

Isaac Newton was a smart man (he invented the theory of gravity, calculus and the three laws of motion) back in the 1700s. Indeed most students have studied at least some of his work in some way.

But, perhaps, the most valuable thing his experience could offer today’s young minds wouldn’t be math or physics related. It would likely be that speculative bubbles are extremely dangerous and that steering clear of them is always a good idea.

#4 TRUMP on 12.13.17 at 5:51 pm

BREAKING NEWS!!!!!

Bill “The Wizzle” Morneau has been impeached. Will serve 15 years in prison for stealing from the Canadian People.

BYE BYE BILL!!!!

#5 nick on 12.13.17 at 5:52 pm

Those tax changes are brutal.

#6 The Technical Analyst, CSTA, CPD on 12.13.17 at 5:53 pm

Canada sure is going down the wrong path. We should have stayed in the USA.

The USA was warmer, had real fast food, a real future, and Trump.

Canada has great Bolshevik socialism…

#7 young & foolish on 12.13.17 at 5:53 pm

Agreed … our tax system is so unnecessarily convoluted ( do we need a Trump figure to simplify it?)

#8 statsfreak on 12.13.17 at 5:57 pm

#1 Victoria Real Estate
——————————-

maybe you need to start your own blog?

…..just sayin……

#9 anne on 12.13.17 at 5:57 pm

Hey Garth…

(((hugs)))

#10 self employed dude on 12.13.17 at 5:58 pm

I am a sole proprietor in the service sector. The more I read of these punitive measures by the CRA against incorporations the less I want to start one.

Although I suspect that if I hired a good enough CPA, he would advise me it is still superior tax-wise compared to staying a lowly sole proprietor.

#11 Keith on 12.13.17 at 6:00 pm

The real real celebration was heard from the accounting and tax lawyer profession, who will be billing more hours than ever due to this bureaucracy run amok.

The complexity of our tax system has jumped the shark long ago, as hundreds of thousands of pages of rules attempt to create “fairness.”

It’s extreme to propose a flat tax, which has it’s own fairness issues. Anyone aware of a happy medium in the western world?

#12 TH on 12.13.17 at 6:02 pm

So could a small business owner somehow move their money into a trust, and then the trust pays the spouse/family member?

#13 Say NO to Money Laundering and Organized Global Crime on 12.13.17 at 6:05 pm

A 3 bedroom Bungalow in the middle of Markham costs at least C$1,500,000 or US$1,000,000-$1,100,000 on average.

A 7 bedroom 3 story house in a large city like Miami, Orlando or even Jacksonville Florida costs on average US$450,000-650,000, and that’s considered luxury there!

#14 Adam on 12.13.17 at 6:06 pm

“There you have the rationale for a small business dude being prevented from paying income to his wife for a venture they started together using joint matrimonial funds”

You’ve sung this song over and over Garth, but it’s way out of tune. If I work 80 hours a week as an employee of somebody else and my spouse looks after me, then why can’t I sprinkle them with income as if I were a business owner?

No comparison. – Garth

#15 David W2 on 12.13.17 at 6:06 pm

With the U.S. increasing rates, we’ll be following again shortly. Add in B20 and 2018/2019 should be interesting.

#16 Adam on 12.13.17 at 6:09 pm

No comparison. – Garth

—–

What a brilliant, beautifully articulated response. Thanks for clearing all of my confusion up.

If you’d ever started a business you’d know. – Garth

#17 MF on 12.13.17 at 6:11 pm

As a few people have mentioned on here, you get the government you voted for.

Any male over the age of 25 who voted Liberal is simply pathetic.

As I hear on CBC radio every once in a while, these Liberals really have no vision for Canada. Just a mish mash of stupid policies and carrot sticks meant to pander to their base of losers, pot heads, the unemployed, and naive youngsters. I guess it’s all about re-election. Who cares about the state of the country.

These Liberals have to go. Make sure you are active come election time to spread the truth to their stupid supporters.

MF

#18 young & foolish on 12.13.17 at 6:12 pm

“maybe you need to start your own blog?

…..just sayin…… ”

don’t mind him … he repeats his over-valued RE meme every day like clockwork

#19 Dave on 12.13.17 at 6:14 pm

You’ve just lost your credibility by refusing to admit the Chinese have ruined our housing market.

They didn’t. Now go away. – Garth

#20 young & foolish on 12.13.17 at 6:14 pm

“The complexity of our tax system has jumped the shark long ago, as hundreds of thousands of pages of rules attempt to create “fairness.”

It’s extreme to propose a flat tax, which has it’s own fairness issues. Anyone aware of a happy medium in the western world?”

Someone once proposed a flat tax with low earners being exempt (they don’t pay much anyway).

#21 ronh on 12.13.17 at 6:16 pm

#2 That was a waste of 15 minutes of my life.

#22 saskatoon on 12.13.17 at 6:17 pm

soy boy sprinkles?

wtf canada?

#23 Rain on the coast on 12.13.17 at 6:20 pm

So much for teaching our kids to be entrepreneur’s and start a business. Nooo much better to graduate from university with $80K in debt, forced to work in a low paying job for years (but hey the govt gets their share right away).

It’s becoming very disheartening to be a Canadian with the govt spending so recklessly and digging into the last crumbs our financial existence to make up for it.

Time to vote in a new crew!

#24 Adam on 12.13.17 at 6:20 pm

If you’d ever started a business you’d know. – Garth

—-

You’re right, I apologize for being a lesser Canadian, one of those Canadians that worked hard so business owners, like yourself, could be so successful and garner more favorable tax treatment on their already outsized income (the latter of which is rightly deserved, all sarcasm aside).

My marginal tax rate is 53%. You? – Garth

#25 Sue on 12.13.17 at 6:25 pm

Kids, let this be a lesson on what happens to your brain when you smoke pot. You will end up spaced out, stupid and way way way out of touch with reality….exactly like our liberal leaders. Dont do drugs. Even if your government tells you its ok.

#26 Bob on 12.13.17 at 6:30 pm

“My marginal tax rate is 53%. You? – Garth”
____________________________________________
Ever think of packing it in?

#27 Long time reader, unfortunately on 12.13.17 at 6:30 pm

#19….. Dave
Dear Dave, you can’t lose something you don’t have.

#28 Bob on 12.13.17 at 6:31 pm

“Kids, let this be a lesson on what happens to your brain when you smoke pot.”
____________________________________________

Yes, but you can become Prime Minister of Canada one day….

#29 islander on 12.13.17 at 6:34 pm

“Seriously. This is your government at work. Making life complicated. …………Meanwhile family trusts, which both Morneau and the prime minister have and receive income from, are exempted from the rules. Kids, wives, pets – anyone can receive tax-deferred cash from a trust, for no work. Do as they say. Not as they do.”
‘EXACTEMENT!’

#30 Ex-Cowtown on 12.13.17 at 6:34 pm

You’ve sung this song over and over Garth, but it’s way out of tune. If I work 80 hours a week as an employee of somebody else and my spouse looks after me, then why can’t I sprinkle them with income as if I were a business owner?

+++++++++++++++++++++++++++++++++++

When you’re a business owner there are many days, weeks, months or years, when you clock out after a hard day’s work and have less cash in your jeans than when you started. Explain that one to your spouse.

When you’re an employee you get paid. Every day you get more $$ in your jeans. Every stinkin’ day. Wanna complain? Go start your own business and see what happens.

#31 BobC on 12.13.17 at 6:36 pm

I’ll repeat myself from a year ago. It won’t be too many years under liberal rule and you’ll be begging for your own Trump. Careful how you insult him.

#32 Old gringo on 12.13.17 at 6:38 pm

These idiots that run the government need only to whack 30 percent of the useless government workers and the budget will balance itself.
Then flat tax the masses and fire the accountants to save some more.
Ps …. nuke these government pensions while we’re at it.
The rest is easy

#33 Pete from St. Cesaire on 12.13.17 at 6:38 pm

And the people keep writing “vote them out”. Does nobody get it? They’re all the same. They all follow orders from higher up.
The people need to either toss the whole system or leave the country. There is no future here. If I was a young man just starting out I wouldn’t be starting out here. I’d get training in a field that is recognized worldwide (doesn’t have to be something fancy like a doctor; even trades such as a hydro-electric linesman or a helicopter pilot is in strong demand). Get out of here and never look back. It’s a big world out there; don’t believe all the lies about how the rest of the world is a crummy, dangerous, diseased wasteland, if that was so then they wouldn’t have the high birthrates that we don’t have here.

#34 Sue on 12.13.17 at 6:40 pm

676 more sleeps. Make the misery end. No more Trudeau. What a coward Morneau is dumping this on business owners before Christmas.

Theres an app for that too

https://www.timeanddate.com/countdown/generic?iso=20191021T00&p0=210&msg=Time%20Until%20Canadian%20Federal%20Election%20NO%20MORE%20JUSTIN%20TRUDEAU

#35 Penny Henny on 12.13.17 at 6:40 pm

#201 I’m stupid on 12.13.17 at 8:16 am
185 Karma

Your math is wrong… it’s the carrying cost of a mortgage with 10% increase in wages. The real culprit here is a society that lacks financial literacy. Keep doing what you’re doing eventually you’ll have everything you want. Remember you can’t fix stupid

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

That is so funny. A commenter named “I’m Stupid” saying that “you can’t fix stupid”.

#36 Joe Schmoe on 12.13.17 at 6:41 pm

Just remember:

The rich will stay rich.

This will just make harder for new people to become rich.

Which side of rich do you think JT and Wild Bill sit?

#37 Mike in Airdrie on 12.13.17 at 6:41 pm

Garth where do you see that family trusts are exempt from “income sprinkling” rules?

#38 TheSecretCode on 12.13.17 at 6:41 pm

Another win for those not addicted to snorting up debt. Your plan B should be working for someone else, unless of course you are in debt.

Plan A is to run your own venture and sprinkle.

Now, does anyone know why Concord Brentwood – Burnaby, BC – is going on sale in Hong Kong this weekend?

https://twitter.com/SteveSaretsky/status/940973834882105344

I thought that it is all local speculators buying up Vancouver…

#39 CL on 12.13.17 at 6:42 pm

Here’s what I don’t get. We, the people, vote in these all knowing politicians so there’s nobody to blame but ourselves. Whether you get out and vote or don’t, we steer the ship so it is all on us.

However, I keep wondering just how these geniuses continue to keep being voted in to power at all levels of government, in all provinces, in this country. Is voter apathy having that much effect??

#40 TheDood on 12.13.17 at 6:43 pm

“…. It makes the babes lazy! They stay home all day snorfling Cheetos!”

LOL! The reason I love this blog!

“And another detour on rates. Last week the Bank of Canada took a pass, refusing to raise despite a strong labour market, romping economic growth and galloping growth in household debt.”

Because this is a chickensh_t country led by a chickensh_t government!

“Canadian houses, overall, cost about double those in the States. And you blame the Chinese. Hilarious.”

We have to blame somebody! We can’t blame the “sheep like” populace (ourselves) because then we’d have to take responsibility, and that ain’t happening! Shheeeeesh!

#41 Smoking Man on 12.13.17 at 6:46 pm

Simple fix.

Draw up separation papers, use a kids address for one of spouses. 50/50 0n the divs with your buz partner.

Problem solved.

#42 dood on 12.13.17 at 6:46 pm

what percentage should my $100 000 all cash portfolio be in preferred shares? do I need to buy a bunch of preferred etfs or can they be all in one ( like zpr)?

#43 pay your taxes on 12.13.17 at 6:50 pm

Nice to see Brother Bill and the boy king taking care of business and making sure my pension is in place. I’m out in a couple of years making 70 percent of my gross for the best 5 years. As an added bonus, I’m taking advantage of paid training and educational opportunities specifically for the double dip after a brief post retirement sojourn.

Things looked pretty bleak for my cadre under Herr Harper. There was copious use of the “A” word (austerity) and a dark cloud spread out over the civil service. Now I can barely keep the smile off my face, and often find myself humming a happy tune and skipping off for my breaks. Life is good again.

This income splitting business is just a tax dodge by people who aspire to become one of the truly powerful. Sorry guys, that’s a birthright. The box seats are already full, back down to the prols with you.

#44 Theo on 12.13.17 at 6:51 pm

#39 CL on 12.13.17 at 6:42 pm

Voter apathy among the declining side of the demographics and voter drives and enthusiasm among the *ahem* preferred demographics that vote liberal with high birthrates and incredible government subsidies. It’s not really hard to see it.

#45 costdouble on 12.13.17 at 6:55 pm

Hey Garth, I’m not saying this is what is going on but I would at least be a bit more humble and consider a few alternate scenarios. Maybe houses cost half in the states because: 1. no matter where you reside, you pay tax on your global income.
2. Unlike Canadian banks which will finance your real estate purchase as a foreign buyer with no income verification (bonus points if you try to do this as a Canadian by the way) if you put 25% to 30% down, US banks are much more weary.
3. One of the primary benefits of home ownership in the states is the mortgage tax deduction, which you guessed it, implies that you would have to pay income tax in that jurisdiction to become a beneficiary.
4. Capital gains on any home price appreciation is taxable in the states making it a less attractive market for speculators of any nationality.

Canada has systemically made its housing market a casino for BOTH foreign and local speculators.

#46 PastThePeak on 12.13.17 at 6:56 pm

I almost hurt my neck shaking my head while reading this article over at the NatPost.

http://business.financialpost.com/real-estate/risk-shifts-to-shadows-in-canadas-whac-a-mole-housing-market

It talks about how these mean bank regulations are forcing people to seek load in the unregulated market, since they are clearly not going to stop buying houses. Sure it helps the taxpayer as there will be less insured mortgages, but what about those who are heavily indebted, and it adds risk to these alternative lenders.

You can’t make this stuff up. And from what is one of the more finance focused newspapers.

Parts of this country are in for a world of hurt in a couple years.

#47 MF on 12.13.17 at 7:01 pm

#39 CL on 12.13.17 at 6:42 pm

They get elected by employing propaganda. An example is the CBC. Everything T2 does is seen as positive. Everything Scheer does negative.

They also give out a lot of handouts and carrot sticks. The child tax benefit is an example. Waste billions, increase taxes on everyone and make it difficult for business owners and their employees..but give everyone an extra $100 per month to “cheer about”.

It’s quite clear. The Liberals are the party of the losers of society. The jealous of society. The lazy of society, and the gullible.

That’s how.

MF

#48 TheSecretCode on 12.13.17 at 7:02 pm

You only get tracked as a “Foreign Buyer” if you play by the Canadian rules and fill out the forms.

A blind trust works great in Canada with an attorney-client privilege.

B.C. Supreme Court claim: investors were told Oei and Lai “had connections with high-level officials in the government of B.C.” and that any person investing $1 million in Oei’s recycling plant project would be granted Canadian permanent resident status.

http://vancouversun.com/news/local-news/mps-law-firm-sued-in-case-involving-allegations-of-chinese-underground-banks-and-missing-millions

#49 TheSecretCode on 12.13.17 at 7:07 pm

Although there are easier ways nowadays – more instant…

And so it begins: Miami condo on sale for 33 bitcoins – seller won’t accept any other currency. First time that’s happened in U.S., per Redfin

Looks like difference this time is it’s for sale on the general real estate market and not a bitcoin exchange.

https://www.redfin.com/FL/Miami/480-NE-30th-St-33137/unit-2206/home/43370743

#50 Lee on 12.13.17 at 7:08 pm

#34 Sue,

JT will win in 2019 just like in 2015. He will win all 35 or so seats in the Maritimes and up north and at least the same 41 in Quebec as last time and about 20 out west. This is 96 seats so far. He will then only need 75 or so in Ontario to win a majority (he took 80 last time in Ontario). I believe he’ll need 169-170 for a majority. It might be a slim majority but it will be a majority. The Liberals had a strong showing in the by-elections this week. Surprised everyone in BC. Armies of new high schoolers are graduating each year who can’t get enough of his curls. You’ll have to wait until 2024.

#51 MF on 12.13.17 at 7:11 pm

#33 Pete from St. Cesaire on 12.13.17 at 6:38 pm

Who is “higher up”?

The country is still great, but the people running it right now are crap. I was content with Harper running the show. Cared about business, was an oil man, and on the right side when it came to geo poltics/conflict. I believe with the right leadership the country can be put on the right course again.

The rest of mankind is a laughable, corrupt, unstable mess. This includes most of the western world too. Their birth rates are high for a lot of reasons (lack of education, religion)..not just the economy.

MF

#52 Ex-Cowtown on 12.13.17 at 7:12 pm

Time to ask my accountant about incorporating in Delaware. Seriously.

Trump would be happy with a small slice. Negan of the North wants all your $hit!

#53 Andrew Woburn on 12.13.17 at 7:14 pm

“Condos are killing the Toronto strip club. In a city that once had more than 60 bars with nude dancers, only a dozen remain, the rest replaced by condominiums, restaurants, and housewares stores.”

Guess we won’t be able to call it the G T&A much longer.

But forget redevelopment opportunities here in Nanaimo- no strip bars left. Only in TO, you say.

Pity.

https://www.bloomberg.com/news/articles/2017-12-12/it-s-closing-time-for-toronto-s-strip-clubs

#54 For those about to flop... on 12.13.17 at 7:19 pm

If these guys wanted to get really rich they should have stocked up on Vancouver real estate and Bitcoin…

M43BC

“This Map Shows You the Richest Politician In Every State

Did you know that George Washington was so rich that he wanted to reject his presidential salary? Wealth has always been a part of American politics, but, recently, political wealth crossed a new milestone (most Congresspeople are millionaires). This map shows the richest politician in every state, and reveals just how rich they really are.

There are 34 states with Republicans as their richest politicians, 15 with Democrats, and one with an Independent. Interestingly, every single one is in Congress. There are no executive branch politicians, including governors, whatsoever.
Geographic Influence
In many places, the results were predictable. No richest-in-state Democrats can be found in the South, but there is a cluster in New England.

There are a few surprises, though. For instance, the richest politicians in Democratic strongholds California and New York are Republicans. The Midwest is split evenly. And despite being severely outnumbered, there are a few very wealthy Democrats in the top five on this list.

Top 10 Richest Politicians in Each State
1. Rep. Darrell Issa (R-CA) – $330M

2. Rep. Jared Polis (D-CO) – $313.6M

3. Sen. Mark Warner (D-VA) – $238.2M

4. Rep. John K. Delaney (D-MD) – $232.8M

5. Rep. Dave Trott (R-MI) – $177.1M

6. Rep. Vernon Buchanan (R-FL) – $115.5M

7. Sen. Richard Blumenthal (D-CT) – $81.7M

8. Rep. Diane Black (R-TN) – $75.3M

9. Rep. Chris Collins (R-NY) – $66.4M

10. Rep. Thomas MacArthur (R-NJ) – $64M

The 50 politicians on this map are worth just under $2.5B altogether. These ten officials have a cumulative net worth of nearly $1.7B by themselves.

Gender Disparity
We already know that the gender pay gap is pervasive. This remains true in politics.

Of the 50 highly paid politicians on our visualization, only six are women. We couldn’t find any patterns explaining why these states had such wealthy female politicians. Among the women, there is a 4:2 Republican advantage and they are scattered across all parts of the country, from Hawaii to New England.

The wealthiest among them is Tennessee’s Republican Representative, Diane Black ($75.3M).

Political Wealth vs. General Wealth
While some politicians are very wealthy, not all are. Over 100 members of Congress actually have negative net worths, and a handful are right around zero. (Check out Roll Call’s Wealth of Congress Index for a deep dive into Congressional finances.).

We also found that political wealth pales in comparison to the state-by-state wealth of non-politicians. Nearly every state’s richest person is a billionaire, but no politicians (aside from Donald Trump, who doesn’t represent a single state) have reached that pinnacle.

Editor’s Note: Al Franken, the junior Senator from Minnesota, has announced his resignation, after being accused of sexual misconduct by several women. Until his resignation is official, he remains the wealthiest politician in Minnesota, with a net worth of $7.1M”

https://howmuch.net/articles/richest-politicians-in-every-state

#55 TheSecretCode on 12.13.17 at 7:19 pm

The exposure of the “Vancouver Model” by Eby in the main stream caused the big upward moves in Crypto…we almost saw 20k before things calmed down.

38% of the bitcoin market cap that is tied to the “Vancouver Model” and is just one avenue of the excess money churning through the sophisticated global money moving operations.

#56 Chaddywack on 12.13.17 at 7:20 pm

Meanwhile the Liberals win the by-election in South Surrey-White Rock, which has been conservative for decades and full of wealthy people.

If that riding goes Liberal it means 2019 is a slam dunk for T2. We’re talking a Mulroney level sweep for the Liberals.

#57 Trudeau knocks out Conservatives on 12.13.17 at 7:24 pm

Trudeau has humiliated conservatives and made them look like fools both inside and outside the ring. He humiliated Harper far worse than brazeau. He shut them up both. To bad the CONservative snowflakes on this blog still kick and scream. CONservatives will lose again.

http://nationalpost.com/news/canada/the-fight-how-justin-trudeau-outclassed-patrick-brazeau-five-years-ago-in-a-boxing-match-for-the-ages

#58 Playback Loop on 12.13.17 at 7:24 pm

#256 Stan Brooks on 12.13.17 at 3:19 pm

$ Stan, I will only engage if you send proof of Blue Cross coverage……(genuine concern, not elder abuse)

“If you spouse owns half of the company he/she/zhe…
is entitled to half of the dividends. Period.”

$ Agreed. Unless they bought their half with gifted money from their sugar______.

“Liebaral paid troll”
$ I wish.

“You are brainwashed.”
$ How would I know?

“In Germany a single person making 10 k euro a month pays over 50 % in income taxes…… with spouse not working and a dependent child that tax is reduced to 25 % ”

$ By coincidence, I was in Germany this summer but the Karmelitin Dunkel quenched any desire to talk tax. Too busy discussing the rampant xenophobia – you think it is bad here? I can’t dispute your numbers, just your way of expressing them. Marginal rates are not average rates. Agreed that our taxes are too high and fully support income splitting, for all.

“And the worse thing is that government actually incentivized private professional corporations and FORCED layers and doctors into such, only for the first rich elitist moron government to completely renege on their own promises and word.”

$ Incentivized is a long, long way from FORCED. Nobody was forced to incorporate. A politician reneged on a promise. And ?

One reason this country is the greatest is that you can still flaunt your wealth without a bodyguard. There just isn’t enough resentment between the classes, so far. Why push your (ok, our) luck ?

fröhliches Weihnachten

#59 Sue on 12.13.17 at 7:25 pm

#46 Lee on 12.13.17 at 7:08 pm
#34 Sue,

JT will win in 2019 just like in 2015. He will win all 35 or so seats in the Maritimes and up north and at least the same 41 in Quebec as last time and about 20 out west. This is 96 seats so far. He will then only need 75 or so in Ontario to win a majority (he took 80 last time in Ontario). I believe he’ll need 169-170 for a majority. It might be a slim majority but it will be a majority. The Liberals had a strong showing in the by-elections this week. Surprised everyone in BC. Armies of new high schoolers are graduating each year who can’t get enough of his curls. You’ll have to wait until 2024.

I’m a glass half full kinda gal. Let me dream….

#60 YYZer on 12.13.17 at 7:28 pm

#14 and #16 Adam. I’m with you on this. By all means pay a partner if they work in the business, but not if they don’t.

#61 TheSecretCode on 12.13.17 at 7:29 pm

738% projection

OSTK

You’re welcome.

#62 Sue on 12.13.17 at 7:34 pm

#28 Bob on 12.13.17 at 6:31 pm
“Kids, let this be a lesson on what happens to your brain when you smoke pot.”
____________________________________________

Yes, but you can become Prime Minister of Canada one day….

Frightening isnt it. This is all we can get to run our country. The world is laughing at us. Wish i had a second passport…

#63 Nonplused on 12.13.17 at 7:38 pm

I was going to write another long rant but I think I can sum it up thus:

What a complete and utter mess. Thanks Turdeau and Moroneau.

#64 Doug t on 12.13.17 at 7:40 pm

Apparently women often forget about the pain of childbirth and think again of having another child
I’m starting to forget about the pain of Harper and thinking of what if ………….

RATM

#65 Andrew Woburn on 12.13.17 at 7:44 pm

#43 TheSecretCode on 12.13.17 at 7:02 pm
You only get tracked as a “Foreign Buyer” if you play by the Canadian rules and fill out the forms.
=======================

Wherever there are currency controls, there are services that arise to beat them.

I used to know a guy that worked for an Austrian bank in the 80’s, one of the banks with anonymous accounts that you could only access with a secret password. He would fly into African dictatorships with exchange controls, meet a client near the airport, and fly out with maybe $250K in cash in his luggage. His bank had no branch in any of these countries in order to avoid any of their local regulations. His service wasn’t cheap but it was reliable and he was busy.

This approach is entirely too crude for today’s anti-money laundering regimes but you can bet it is still going on in some form.

Interesting aside. The Austrian bank had been owned by one of Canada’s big banks. Who knew TNLTB had a racy past.

#66 For those about to flop... on 12.13.17 at 7:47 pm

Recent Sales Report.

Let’s do a little Eastside action for a change.

3487 Normandy Dr ,Vancouver.

Originally asking 1.699 then 1.500 1.300

Just sold for 1.260

Tax assessment 1.428

As Sir Winston Churchill once remarked about real estate agents becoming ethical.

We will fight you from the bleachers…

M43BC

https://www.zolo.ca/vancouver-real-estate/3487-normandy-drive

#67 Happy Housing Crash Everyone! on 12.13.17 at 7:48 pm

These dirty SHYSTERS are such lying scum of the earth liars its not even funny. They love to tell BIG LIES. The housing market is crashing and this without B20. Ok SHYSTERS tell us a big lie
https://www.theglobeandmail.com/real-estate/toronto/realtor-forecasts-5-rise-in-canada-home-prices/article37309557/

#68 FOUR FINGERS WATSON on 12.13.17 at 7:48 pm

#15 David W2 on 12.13.17 at 6:06 pm
With the U.S. increasing rates, we’ll be following again shortly. Add in B20 and 2018/2019 should be interesting.
………………………………..

B20 can be cancelled with the stroke of a pen. The government will use the promised cancellation as a carrot to get more votes.

The federal government did not institute this change. It is the bank regulator’s action. – Garth

#69 Victor V on 12.13.17 at 7:53 pm

#13 Say NO to Money Laundering and Organized Global Crime on 12.13.17 at 6:05 pm

A 3 bedroom Bungalow in the middle of Markham costs at least C$1,500,000 or US$1,000,000-$1,100,000 on average.

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

Not to worry. Markham single family home prices are imploding as we speak.

https://markham.listing.ca/detached-home-price-history.htm

#70 dosouth on 12.13.17 at 7:53 pm

My marginal tax rate is 53%. You? – Garth
————–

Mine is 43 and I don’t get the deductions you receive as a business owner and small business owner. Which would certainly make up for the difference and also the ability to write off equipment etc over time along with benefits you pass on to your employees.

There is a lot of give and take in the code. Businesses/people have been able to take for many decades now it’s time to give….

and yes I owned a small business for over 3 years that I passed on to an employee who had no pension and no plans at 63. It only took her and her husband 1 year to put it in the ground. No good deed goes unpunished.

Actually financial advisors cannot incorporate (or escape personal liability) and are taxed at employee rates, even when there are no benefits. Stop embarrassing yourself. — Garth

#71 crowdedelevatorfartz on 12.13.17 at 8:00 pm

@#50 Lee
“Armies of new high schoolers are graduating each year who can’t get enough of his curls. You’ll have to wait until 2024.”
++++++

The country cant afford it.
His first two years have been a piece of cake.
Lets see how he handles the housing market tank, unemployment rise, NAFTA, interest rates rise( or the dollar fall)….
The next two years wont be as much fun for Baby Trudeau.

#72 Rexx Rock on 12.13.17 at 8:01 pm

Hey Garth if 53% is your marginal tax rate when is your breaking point 65% say 70%,when you give up and say I can’t give the goverment any more?You know in a few years it maybe that high.

#73 Jack on 12.13.17 at 8:01 pm

Mindless slashing of tax’s can have nasty side effects…

Read what happened when Kansas tried Trump style tax cuts… it wrecked the economy.

https://slate.com/business/2017/11/republicans-are-about-to-repeat-kansas-tax-cut-disaster.html

#74 k on 12.13.17 at 8:02 pm

Hey Adam #24 Garths marginal tax rate is 53%,,,,We are still waiting to hear what yours is . In Canada roughly 12 percent of the population pay over 50 percent of the taxes . Not fair enough for you ? Socialist victim loser. Move to Venezuela where Communism is having a little trouble > Communism….a great idea until you run out of other peoples money. Cat got your tongue ?

#75 Adam on 12.13.17 at 8:03 pm

My marginal tax rate is 53%. You? – Garth

——

A well run country does not owe the citizens that pay the most tax more than it owes the citizens that pay the least. The closer we can get to that, the better society we’ll live in. You obviously don’t subscribe to that theory.

42%

That made no sense. But keep on feeling smitten. It’s kind of cute. — Garth

#76 X on 12.13.17 at 8:04 pm

#39 CL on 12.13.17 at 6:42 pm
Here’s what I don’t get. We, the people, vote in these all knowing politicians so there’s nobody to blame but ourselves. Whether you get out and vote or don’t, we steer the ship so it is all on us.
However, I keep wondering just how these geniuses continue to keep being voted in to power at all levels of government, in all provinces, in this country. Is voter apathy having that much effect??

I think it is the selfies. Sadly not joking.

#77 Loonie Doctor on 12.13.17 at 8:04 pm

Well. Looks like they have carefully crafted this to avoid those who would garner public sympathy or provide for bad political optics (those over 65, farmers, and fishers). The political consequence of pissing off those groups in the first place was an unintended consequence that hurt the roll out of this tax plan.

This is really targeted at high income professionals. It is a nice narrow group that won’t garner much sympathy. The problem is that those professional groups, like doctors, provide needed services. While taxing their productivity/income may not garner public sympathy (it may even be an enjoyable spectacle for a jealous minority), it will cause them to adapt. How would you adapt if working more meant being taxed at 53-54%? I suspect there will a number of unintended consequences.

#78 Jason on 12.13.17 at 8:12 pm

Do you think we can enter the US as Canadian refugees, claiming that if we reenter Canada we will literally be taxed to death?

I think it’s about time to bail out of this Country, which is no place for hard working, healthy people. Yes the US has its problems but keeping most of my earnings and having the government trust that I can run my own life is mighty attractive.

#79 When Will They Raise Rates? on 12.13.17 at 8:13 pm

#52 Ex-Cowtown on 12.13.17 at 7:12 pm
Time to ask my accountant about incorporating in Delaware. Seriously.

Trump would be happy with a small slice. Negan of the North wants all your $hit!
———-

Apparently Puerto Rico is an attractive option… Will be looking into incorporating there myself… 4% corporate tax rate… I thought this loophole was only for US citizens, but apparently not:

One of them is Puerto Rico’s Export Services Act, also known as Act 20.

I’ve written about this a number of times – it’s an incredibly attractive law that allows all sorts of businesses to domicile in Puerto Rico with a corporate tax rate of just 4%.

This applies to industries ranging from various online businesses to consulting services, financial services, marketing services, and much more.

And ANYONE can realize these benefits, regardless of whether or not you’re a US citizen.

http://www.zerohedge.com/news/2017-12-13/best-tax-incentive-world

#80 Yuus bin Haad on 12.13.17 at 8:23 pm

Sorry, who’s the wingnut again?

#81 Karma on 12.13.17 at 8:27 pm

#201 I’m stupid on 12.13.17 at 8:16 am
“185 Karma

Your math is wrong… it’s the carrying cost of a mortgage with 10% increase in wages. The real culprit here is a society that lacks financial literacy. Keep doing what you’re doing eventually you’ll have everything you want. Remember you can’t fix stupid, eventually the lemmings will go off the cliff.”

What aspect of my “math” is wrong?

#82 Financial crimes on 12.13.17 at 8:31 pm

DELETED

#83 dr. talc on 12.13.17 at 8:33 pm

cra has recently mailed out questionnaires to many taxpayers, the most notable question is ‘are you related’ to the source of the income you declared (and payed tax on). it’s not an audit, it’s a questionnaire
Now, if it’s important, why isn’t that question on the tax return?

#84 Karma on 12.13.17 at 8:35 pm

#224 QEII on 12.13.17 at 12:09 pm
“#169 Karma
LOL! QEII doesn’t own Canada. Her name is just a placemarker

BUZZZZZZ!

Wrong. Thank you for playing.

http://www.whoownstheworld.com/canada/

All physical land in Canada is the property of the Crown, Queen Elisabeth II. There is no provision in the Canada Act, or in the Constitution Act 1982 which amends it, for any Canadian to own any physical land in Canada.

We, Canadians, should be a lot more outraged by this fact than we actually are.
And ‘Karma’ typing up disinformation is not helping either.
Please stop doing that.”
————————-

So you say “Freehold” interest isn’t ownership? Then does anywhere in the world allow for private ownership? Are you trying to suggest the US and other republics are the only countries that allow for private property rights because it doesn’t have a constitutional monarchy?

Also, your expert website doesn’t seem very credible when it can’t properly spell the capital of Canada… Talk about disinformation, lol!

#85 For those about to flop... on 12.13.17 at 8:42 pm

Recent Sales Report.

Let’s do a little Eastside action for a change.

3487 Normandy Dr ,Vancouver.

Originally asking 1.699 then 1.500 then 1.300

Just sold for 1.260

Tax assessment 1.428

As Sir Winston Churchill once remarked about real estate agents becoming ethical.

We will fight you from the bleachers…

M43BC

https://www.zolo.ca/vancouver-real-estate/3487-normandy-drive

#86 I’m stupid on 12.13.17 at 8:44 pm

63 Karma

The part of the increase in prices is attributed to how much more of a mortgage someone can get with 10% higher wages. The rest is helocs, prices go up a home owner takes heloc uses it to either buy more realestate or consumption. Once the increases stop because all the credit is exhausted it all reverts to the mean. We’re seeing that now, nothing is left to fan the flames and income can’t fill the gap.

#87 Long-Time Lurker on 12.13.17 at 8:45 pm

#182 Hank N Moss on 12.13.17 at 3:36 am
#135 David on 12.12.17 at 10:31 pm

As a 4th generation Canadian, married to a Chinese lady for the past 20 years all I can say is I am ashamed of the so called Canadians on here and their blatant, ignorant, hateful comments I just read.

Chinese are hardworking, intelligent and conservative people. They don’t become homeless, smoke weed, panhandle, or live off the government.”

Dude weren’t opium dens invented over there? Just sayin’

>Actually, historically the British introduced opium to the Chinese. They exported it from their South Asian colonies. This was done because Britain was losing lots of gold from purchasing Chinese tea. Rather like off setting one addiction for another.

The Chinese Manchu (foreign) government went about burning all the opium in China. This started a war with Britain. Britain won and received Hong Kong in the process.

Ignorance is your bliss.

#189 Howard on 12.13.17 at 5:05 am
#97 Long-Time Lurker on 12.12.17 at 7:59 pm

I wouldn’t call Vancouver diverse.

Toronto is diverse. Montreal is diverse. Even Calgary is diverse.

Vancouver has large populations of non-Caucasian residents, but most belong to one group. There’s nothing wrong with that, but it ain’t diversity.

>Refute the historical examples I gave.

Off the top of my head I can say I went to elementary and high school with friends of the following non-causasian nationalities in Vancouver: Native Canadian, Indian, Korean, Phillipine, Hawaiian, Egyptian, African, African-Canadian, Peruvian, Mexican, Japanese, Iranian, Vietnamese and your dreaded Chinese. Does this constitute diversity? Refute that. The number of European nationalities is about similar. More nationalities of various origins met at work, in public and private.

About Garth ending the blog:

I was thinking about stopping commenting here for while. I’m not really getting anything from the comments section. I continued for three reasons: Garth, Flop, and to help other people.

I understand if you want to end the blog, Garth. Thank you for everything you’ve done. You too, Flop.

#88 OttawaMike on 12.13.17 at 8:47 pm

So what’s wrong with some proprietorship?

Can’t business owners get most of the same writeoffs?

#89 I’m stupid on 12.13.17 at 8:50 pm

Income trusts should be taxed like other income is. Income sprinkling shouldn’t be allowed for family members that don’t work for the company. A married couple should be able to tax split. Regardless if they’re owners or employees.

#90 cramar on 12.13.17 at 8:54 pm

“Dissing women.” What!?

Cannot be! Not possible!

Our PM is a “Feminist.”

#91 Bytor the Snow Dog on 12.13.17 at 9:10 pm

#14 Adam replying to Garth on 12.13.17 at 6:06 pm sez:
“There you have the rationale for a small business dude being prevented from paying income to his wife for a venture they started together using joint matrimonial funds”

You’ve sung this song over and over Garth, but it’s way out of tune. If I work 80 hours a week as an employee of somebody else and my spouse looks after me, then why can’t I sprinkle them with income as if I were a business owner?
———————————–
Garth replies:

No comparison. – Garth
———————————–

Interesting. Maybe someone needs to reform the “Family Courts” into this way of thinking. Right? Goose gander and all that.

#92 Smoking Man on 12.13.17 at 9:18 pm

Just waiting for the trump tax cuts to hit. Then it’s worthwhile to shut down my Canadian Corp, and reactivate my LLC.

Guess what T2. You get nothing then.
Stupid putz, Notton said for every action there is an equal opposite reaction.

Canada is so screwed, Libs take 3 of 4 bye-elections. Yikes!!!!!

Take a trip to cube this winter you communist lovers, Strair at your future, without the nice weather.

As for me, Surfing lessons on Saturday.

I love California

#93 ANON on 12.13.17 at 9:20 pm

Quote of the day:
Moreover, this time it’s different.
–J.Y., exit stage right.

#94 DON on 12.13.17 at 9:25 pm

#25 Sue on 12.13.17 at 6:25 pm

Kids, let this be a lesson on what happens to your brain when you smoke pot. You will end up spaced out, stupid and way way way out of touch with reality….exactly like our liberal leaders. Dont do drugs. Even if your government tells you its ok.
****************

Did you smoke pot before you wrote that fine piece of logic.

#95 I support Trump & Who are You to tell me that Hilary is great? on 12.13.17 at 9:38 pm

Why does Stephen Poloz refuse to hike rates? We;re supposed to be 100bps over the US Interest rate to protect our Loonie.
If he lets the Loonie slide to below 65c & Trump finds out, I guess Trump will be another thing that Poloz will loose sleep over tonight.

#96 BS on 12.13.17 at 9:39 pm

Adults aged 25 or over who own 10 per cent or more of a corporation that earns less than 90 per cent of its income from the provision of services and is not a professional corporation.

Doesn’t this pretty much give the green light for most spouses of business owners to receive income sprinkling? Assuming they have an ownership position and it is not a professional corporation.

#97 MF on 12.13.17 at 9:43 pm

#25 Sue

“Kids, let this be a lesson on what happens to your brain when you smoke pot. You will end up spaced out, stupid and way way way out of touch with reality….exactly like our liberal leaders. Dont do drugs. Even if your government tells you its ok.”

I actually agree with this. It makes people lazy and spaced out, even worse with chronic use.

Heard lots of people raving about T2 after the last election.

MF

#98 april on 12.13.17 at 9:43 pm

lying real estate industry spouting house prices to rise 5% in 2018 even though it will be more difficult to buy. What a crooked lot and a government not any better. Since the real estate industry controls the press people like Garth, Ross Kay, and Hilliard Macbeth are never seen on MSN.

#99 tccontrarian on 12.13.17 at 9:45 pm

I don’t know about everyone else, but calling it a ‘marginal rate’ when at 53% sounds just plain wrong!

At 3%? Yes, THAT’S marginal!
At 13% – we’ll call it ‘fair’.
At 23%- starting to sting!
At 33% – ouch!
At 43% – are you kidding me?
At 53% – THEFT!

But they’re gonna squeeze us till we’re dry…polite Canadians that we are.

TCC

#100 dr. talc on 12.13.17 at 9:49 pm

this is just a continuation oh H’s war on the family.
It’s not left or right, because there is only one side- Marxism. when fake conservatives ‘cut’ they outsource which=corporate fascism.
Meanwhile: law-abiding, tax paying, flag saluting Canadians are being ruled by- above the law, tax dodging , false flag saluting, proven liars

#101 joblo on 12.13.17 at 10:11 pm

Anyone know who’s island T2 & fam have vaca booked this winter break?

Let’s earmark the $220M for T2’s pal.

#102 Big Daddy on 12.13.17 at 10:34 pm

DELETED

#103 down_boy on 12.13.17 at 10:39 pm

#83 Karma on 12.13.17 at 8:35 pm
#224 QEII on 12.13.17 at 12:09 pm
“#169 Karma
LOL! QEII doesn’t own Canada. Her name is just a placemarker

BUZZZZZZ!

Wrong. Thank you for playing.

http://www.whoownstheworld.com/canada/

All physical land in Canada is the property of the Crown, Queen Elisabeth II. There is no provision in the Canada Act, or in the Constitution Act 1982 which amends it, for any Canadian to own any physical land in Canada.

We, Canadians, should be a lot more outraged by this fact than we actually are.
And ‘Karma’ typing up disinformation is not helping either.
Please stop doing that.”
————————-

So you say “Freehold” interest isn’t ownership? Then does anywhere in the world allow for private ownership? Are you trying to suggest the US and other republics are the only countries that allow for private property rights because it doesn’t have a constitutional monarchy?

Also, your expert website doesn’t seem very credible when it can’t properly spell the capital of Canada… Talk about disinformation, lol!

….

Here’s the test… stop paying property taxes and see what happens. If you are queen or king of your castle, why should you pay? Read the notice the district send you when you challenge their authority.

#104 Freebird on 12.13.17 at 10:41 pm

So gay couples who co-own a business or women who start the business and bring their husband into it don’t count? Cheers to equality and legally acknowledging those not covered by new policies…maybe that’s good?

Must get back to snorfling my cheetos.

#105 PastThePeak on 12.13.17 at 10:47 pm

Well, a positive outcome of Trudeau overall tax increases is that it spurred me into action to setup that farm business sole proprietorship on the side. Will give me some good write-offs on equipment and livestock against my salaried income while I build up the business. Then do a partial retirement where my overall income tax should drop by at least 50%.

Knowing that I will be greatly reduce the amount of tax I send to Dumb and Dumber keeps me warm at night.

#106 Freebird on 12.13.17 at 10:48 pm

BTW great Instagram pic of your babe and your smiling boy. Cheetos agree with her.
Thanks for sharing.

#107 Dave_Bird on 12.13.17 at 10:53 pm

TODAY’s QUESTION PERIOD IN HOUSE COMMONS. FEELING BAD FOR SAMLL BUSINESS IN THIS COUNTRY:

http://www.cpac.ca/en/programs/question-period/episodes/90009690

#108 Freebird on 12.13.17 at 11:01 pm

april on 12.13.17 at 9:43 pm

Since the real estate industry controls the press people like Garth, Ross Kay, and Hilliard Macbeth are never seen on MSN.
———————
Have said this for years with corp media in general. This blog gives him and now Ryan/ Doug the platform and FREEDOM to reach others without many restrictions. A future podcast would be great.

#109 self employed dude on 12.13.17 at 11:07 pm

“Someone once proposed a flat tax with low earners being exempt (they don’t pay much anyway).”

This is an excellent idea.

#110 acdel on 12.13.17 at 11:13 pm

You idiots from the Greater Toronto region voted for these buffoons; now we all have to suffer for your stupidity. Move West, populate the region so that we never have be slaves to these idiotic Toronto voters again; well there is Vancouver as well, what a joke, what stupidity!!

#111 For those about to flop... on 12.13.17 at 11:14 pm

Pink Pumpkins being carved in Richmond.

This outstanding piece of real estate was picked up for 1.77 in May 2016

9240 Saunders Rd,Richmond.

Paid 1.77

Asking 1.74

So they paid 1.77 for a 58 build,most likely with no inspection because they were gonna pass it on the the next fool.

Still looking for that fool…

M43BC

https://www.zolo.ca/richmond-real-estate/9240-saunders-road

#112 jane24 on 12.13.17 at 11:24 pm

Garth what is that photo? I can’t figure it out. It looks like a coconut with hundreds and thousands sweeties on the top.

Anyway Canadian taxes are certainly getting complicated. I have read Grath’s explanation twice and it still dosn’t make sense and I have a PhD so can’t be that dumb. Why on earth would a small business be based in Canada now. Obviously much cheaper to be based in the USA with Trump’s tax cuts and just run sales in Canada.

Plus the way that the global elite, T2 and that Finance Minister, don’t pay taxes themselves is a scandal. Taxes just for the little guys.

It’s a nose. – Garth

#113 For those about to flop... on 12.13.17 at 11:24 pm

Pink Pumpkins being carved in Burnaby.

Let’s do a double banger for the Burnaby Boys on the blog.

6020 Malvern Ave ,Burnaby

Paid 2 flat in May 2016

Asking 1.99

https://www.zolo.ca/burnaby-real-estate/6020-malvern-avenue

15 Grosvenor Ave,Burnaby.

Paid 2.14 in July 2016

Asking 1.99

https://www.zolo.ca/burnaby-real-estate/15-grosvenor-avenue

Also thanks Lurker for your mightily kind message.

We can’t stop the boss of this blog from shutting it down.

We can only support him and share information with each other as much as possible instead of bickering with one another as much as possible.

I try to put more cookies in the jar than I take out…

#114 Ace Goodheart on 12.13.17 at 11:29 pm

RE: “Meanwhile family trusts, which both Morneau and the prime minister have and receive income from, are exempted from the rules. Kids, wives, pets – anyone can receive tax-deferred cash from a trust, for no work. Do as they say. Not as they do.”

The wealthy, whose children run our governments, will never tax themselves. They always leave themselves and their spawn a way out.

You cannot beat them. They have more money, power and influence than you ever will.

You cannot easily join them. They earn more in a week than you will earn in your lifetime.

However, you can use the same structures to earn your income, that they do to earn theirs. In doing so, you can avoid tax, just like they do.

If you can’t beat them (you can’t), and you can’t join them, you can ape them.

#115 Wes Coas on 12.13.17 at 11:36 pm

So Trudeau is hiding behind gender equality with his attack on small business and the family. A new low. As if these women who are the recipients don’t have jobs like raising kids? That’s the hardest job ever and most important investment in Canada’s future – it just can’t be taxed now for T2 to spend…. and yet the libs win a by-election seat in South Surrey Whiterock? You get what you vote for. Selfies and joints seem to trump good governance and respect for people’s ability to make their own decisions as adults.

#116 Wes Coas on 12.13.17 at 11:39 pm

…. and next election, remember the Conservatives tried to let every sprinkle a little with income splitting. Libs took that away. Fairness is achieved by making progressive policies that benefit all, not punishing more and more of the populace.

#117 Nonplused on 12.13.17 at 11:50 pm

Ack I can’t stand it! Long rant after all.

Ok, here is the thing with rules and policy. Usually, the easier a rule is to explain and understand the better and more well thought out it is. For example “Thou shalt not steal” or “Thou shalt not commit adultery” (although nobody likes the later). Nice simple rules.

I was going to re-post the section from Garth’s post today to compare but it’s too long. And this is just the exceptions where “income splitting” is allowed. It’s insane!

If your policy is hard to explain, it probably isn’t very good. Idiots don’t realize this of course, and think the complexity of whatever they propose indicates higher thinking. Like E=mc^2 was a tragic mistake or something.

If it can’t be simplified, it won’t work.

The most complicated rule in all of sports is the offside rule in soccer. But even it is not nearly half the explanation of the this new tax rule in length. And, in my opinion, even the offside rule in soccer is a bad rule. 25 years ago you were either offside when the ball crossed the defender or you weren’t. Now, you can be offside but you aren’t called offside unless you “interfere with the play” (if you aren’t interfering with the play what are you doing? Looking for ladybugs in the grass?) and if you are onside when the ball is kicked but offside when it gets to you, you are still onside. They did these changes to try and get rid of the “offside trap” but all it did was confuse the heck out of everybody and make the rule book a half page longer. Bad policy. It would have gone much further to what they were attempting to just get rid of offside altogether. There is no offside on a throw in and nobody complains about that. There is also no offside in U10 and in U12 it only applies to 1/3 of the field, not half. You don’t need it at all. Indoor soccer doesn’t have it, neither does Futsol.

Even the offside rule in hockey is overly complicated and unnecessary, but not nearly as complicated as the soccer offside rule because the blue line doesn’t move and isn’t based on player’s positions.

That’s what Turdeau and the “Minister of Fairness” (I loved that one) Moroneau are trying to do. Create an offside rule where none is needed.

I mean, it should be simple. Are small corporations businesses or not? Can large corporations employ relatives? If so why not small businesses? Can the government decide what wages are appropriate for employees of large corporations? (CEO’s take note, they are coming for you next.) If large corporations can decided how much per hour they will pay their employees, why not small corporations? Is the government going to start setting wages? (Yes, under Turdeau they will eventually.)

This whole thing is SNAFU.

This government will not stop until they have regulated every action you take. Hopefully along the way they will regulate the offside rule out of soccer but I think it’s much more probable they will make it much more complicated. In the interest of fairness, after all, you can’t have the fast kids scoring so many goals. Turdeau probably didn’t score many goals as kid so the goals are going to have to be distributed more “fairly”.

#118 Ponzius Pilatus on 12.14.17 at 12:24 am

#91 Smoking Man on 12.13.17 at 9:18 pm
Just waiting for the trump tax cuts to hit. Then it’s worthwhile to shut down my Canadian Corp, and reactivate my LLC.
——-
Trump will be impeached long before his idiotc proposals will go through Congress and Senate.
America is still a democracy.
Smokie,
I have a lot of respect for you.
Being a rebel and an outlier.
But now you’re just an idiot.

#119 down_boy on 12.14.17 at 12:42 am

Aside… US tax cuts > share buybacks > CEO offshore wallet

Poof, it’s gone.

#120 Karma on 12.14.17 at 2:04 am

#56 Chaddywack on 12.13.17 at 7:20 pm
“Meanwhile the Liberals win the by-election in South Surrey-White Rock, which has been conservative for decades and full of wealthy people.

If that riding goes Liberal it means 2019 is a slam dunk for T2. We’re talking a Mulroney level sweep for the Liberals.”

The Liberal was a former mayor of White Rock and MLA for the area. Had huge name recognition among the wrinklies, who vote more often in by-elections. The margin wasn’t huge, despite his obvious advantage. So don’t take this win at face value.

The interesting aspect of the by-elections is that the NDP dropped quite a bit relative to 2015 in all ridings, and the Conservatives, overall, gained on the Liberals in the three other ridings.

The real benefit to the Liberals, which can’t be deduced as a trend just yet, is how the NDP does in 2019. If they do poorly, Liberals will win relatively easily. If they gain steam, the Conservatives will be competitive.

Too early to tell what the outcome will be. My opinion is the Libs and Cons each have their advantages and disadvantages. But in the end, it doesn’t matter much who is in power as neither party (except for legalizing of MJ) are revolutionary in their policies.

#121 Tony on 12.14.17 at 2:35 am

Re: #68 Victor V on 12.13.17 at 7:53 pm

It all started with a house on Finchham almost at the corner of the 9th line. The house was priced at market with a slightly smaller than average lot size and the listing sat for eternity on mls. Resale prices at the high end are falling fast. Only the new builds are holding up in price but with less sales.

#122 Karma on 12.14.17 at 3:03 am

#85 I’m stupid on 12.13.17 at 8:44 pm
“63 Karma

The part of the increase in prices is attributed to how much more of a mortgage someone can get with 10% higher wages. The rest is helocs, prices go up a home owner takes heloc uses it to either buy more realestate or consumption. Once the increases stop because all the credit is exhausted it all reverts to the mean. We’re seeing that now, nothing is left to fan the flames and income can’t fill the gap.”
—————————

At the same interest rates as 5 years ago, ~3.2%, a 10% increase in wages equates to a 10% increase in amount able to borrow. If in 2012, the person could borrow $500k, today they would qualify for about $550k using the same interest rate, and assuming a 10% increase in wages.

The “math” part of estimating the $700,000 house would be worth about $800,000 is based on 3% per annum (roughly historical annual growth rate in housing in Canada) for 5 years. The actual number is $811,492.

What you describe in this post cannot be described as “math” because it has no numbers, nor a starting point and end point, nor interest rate, etc. Furthermore, it’s conjecture to say that the “rest is heloc”. Helocs have increased significantly, but the vast majority of heloc availability happens after the conventional mortgage gets paid down. Helocs are a factor, but just one factor in a blend of factors.

#123 Stan Brooks on 12.14.17 at 6:44 am

#57 Playback Loop on 12.13.17 at 7:24 pm

So we mostly agree.

As for the ‘greatest country’ and pointing out to the issues of others to justify our own shortcomings, I will quote the bible:

Matthew 7:5 (CEB) You deceive yourself! First take the log out of your eye, and then you’ll see clearly to take the splinter out of your brother’s or sister’s eye.

There are other much safer countries. Ever been to Switzerland?

#124 Dharma Bum on 12.14.17 at 6:45 am

Time to go off the grid.

https://thetyee.ca/Culture/2014/12/29/Off-Grid-In-Canada/

Tax is theft. Stop the thieves.

#125 Playback Loop on 12.14.17 at 7:29 am

122 Stan Brooks on 12.14.17 at 6:44 am
“So we mostly agree.”
$ Yes, because Santa visits us every year.

“Matthew 7:5 (CEB) You deceive yourself! First take the log out of your eye, and then you’ll see clearly to take the splinter out of your brother’s or sister’s eye.”

$ I can only quote my guiding light:
“In Mencken’s view, “religion belongs to a very early stage of human development, and… its rapid decay in the world since the Reformation is evidence of genuine progress” (“The Ascent of Man”).” 

“There are other much safer countries. Ever been to Switzerland?”

$ Yes, a very nice place, but did you see what they have to wear? Dressing down is not my style, and besides, even the poor hill people always have a bit of cheese tucked away.

All I want is balance in everything. Think of the tide’s ebb and flow as the laundromat for the dirty deeds. Ciao

#126 Rooster on 12.14.17 at 7:37 am

5 Things I Love About GreaterFool

1. The topics, while repetitive, focus on the things we can change – “taxes due” mostly, but also not being stupid with money, and not being stupid.

2. The true psychopaths are usually prevented from posting their disturbed views. Outside of Garth’s cocoon things are much different (see the Notional Post).

3. Unless I am incorrect, after 8 unrelenting years of daily blogging Garth has never once admitted to being wrong. That is one resolute dude.

4. The comments can often be enlightening, and the wide diversity of opinions demonstrates just how DNA transcription is supposed to work.

5. The pictures are sometimes worth more than all the words, but that is still something for nothing.

Garth’s threats to abandon us are, I hope, idle. His captive audience is afflicted with Stockholm Syndrome, and I don’t think he is the sort of man that would “hit it and quit it”. Nothing compares 2 U.

Suggestion Box:

Incentivize the rabble to be more economical with their prose. The honorific “DELETED” could be expanded to include “TOO LONG/STUPID/CRAZY/GOOD TO SHARE”.

Make efforts to appeal to a broader (i.e. higher) class of patrons. One (maybe two) doctores in total is less than the required complement on a submarine. Enable the Guobiao character set in the comments section for cheap insurance. The Year of the Dog is coming up, so that was well planned. Only 18 sleeps left in the Year of the Rooster ;-)

#127 Dan.t on 12.14.17 at 7:53 am

I don’t get the problem, all Canadians are super rich- 70% own homes, like 30% own multiple residential real estate ( you can rent out and not claim it- awesome), so home ownership is really like 150%.

Obviously massive record amount of debt and insane high housing prices are good for a country and economy. Look how much fun everyone is having in YVR and the lower mainland.

Now more and more, it’s coming to light why fundamentals and local incomes don’t matter. Just buy at any price because all the dirty laundered money will save you, also a good idea to buy a few presales, because all you need to do is market it overseas or re-sell to a numbered corporation for whatever markup you like… I think the norm is at least 100% tax free gain- otherwise you are wasting your time.

Investing is so easy- just buy real estate in B.C. and GTA. Worrying about stuff like debt, interate rates or whatever they are called, new regulations, and other “stuff “ is for losers. Sad but has been totally true for 15 years.

#128 Cottingham a bargain on 12.14.17 at 7:56 am

A few months ago you mentioned that Morneau would never survive , politically ,the scandal surrounding his proposed small business corporate tax changes and the obvious omission/ exemption of family trusts.

Seems he is stronger and more emboldened than ever

#129 Ezzy on 12.14.17 at 8:03 am

#74 Adam

My marginal tax rate is 53%. You? – Garth

——

A well run country does not owe the citizens that pay the most tax more than it owes the citizens that pay the least. The closer we can get to that, the better society we’ll live in. You obviously don’t subscribe to that theory.

42%

That made no sense. But keep on feeling smitten. It’s kind of cute. — Garth

Communism has been tried, ask Russia how that worked out.

P.S. Socialism works when it’s not your money.

#130 down_boy on 12.14.17 at 8:09 am

All About Selling in CAD

Dec 14, Today $1.28 CAD buys $1.00 USD. The bank charges $1.31 CAD to get $1.00 USD.

The bank pays $1.24 CAD if I sell $1.00 USD. Thats a $0.07 spread or 7% roughly. 3% loss buying and a 4% loss selling. That’s a 7% cost on full circle exchanges through a bank.

I don’t want to pay 7%. What alternatives do I have? I can price goods at the same rate in any jurisdiction by using crypto currency, such as Digibyte (DGB). A bottle of hot sauce is 58.14 DGB. People can convert from USD and pay less, or convert from CAD and pay more. When I convert 58.14 DGB to CAD, I get $1.28. If I convert 58.14 DGB to USD, I get $1.

I just saved 7% on a full circle exchange: buying CAD resources, selling in USD, taking profit in CAD. There is a negligible exchange fee for DGB of .0000001 CAD.

7% would be considered a significant savings in the cost of doing business and would directly reflect in my return on investment.

This is one of the features of using crypto currencies to price goods for a variety of markets in the future. The exchange is initiated by the customer and there is virtually no cost peer to peer. Manufacturers are now waking up to the advantage of pricing goods destined for export/import in crypto and alternative currencies.

A completed and confirmed transaction in many advanced crypto currencies takes only a few seconds.

What is the bank’s role? If they do not develop cost effective exchanges themselves, settlements will occur outside their business model. The easy 7% premium they once charged on full circle exchanges will evaporate. They become redundant, antiquated, and the least favorable way to exchange value. Peer2peer exchanges are occuring now. This will grow exponentially in 2018.

#131 Ex-Cowtown on 12.14.17 at 8:11 am

You’d think that if the liberals really gave a crap about pay equity for women they would allow the opposite of what they’re proposing for small business.

Women will be left even more disadvantaged under the Liberal proposals. The husband will be forced to take the income and pay high taxes. The spouse meanwhile, will be unable to take income. This means that there will be no CPP when she retires and will have zero RRSP room as it will not have been earned through income.

She’ll be totally, utterly at the mercy of her husband. Sex discrimination will be enshrined by Negan of the North!!!!!!

#132 crowdedelevatorfartz on 12.14.17 at 8:13 am

@#74 Adam …… Smithless
“A well run country does not owe the citizens that pay the most tax more than it owes the citizens that pay the least. The closer we can get to that, the better society we’ll live in. You obviously don’t subscribe to that theory…..”

+++++

Soooo, the harder I work means I should pay more taxes for the people that dont work…..

Eventually we’ll all be pot smoking lotus eaters waiting for someone else to send us money…..?

#133 down_boy on 12.14.17 at 8:18 am

#111 jane24 on 12.13.17 at 11:24 pm
Garth what is that photo? I can’t figure it out. It looks like a coconut with hundreds and thousands sweeties on the top.

It’s a nose. – Garth

That’s not a nose… that’s a shnoz!

#134 Comment of 2017! on 12.14.17 at 8:37 am

#9 anne on 12.13.17 at 5:57 pm
Hey Garth…

(((hugs)))

Good one Anne!

#135 BoobiesforBagels on 12.14.17 at 8:53 am

“Adults aged 25 or over who own 10 per cent or more of a corporation that earns less than 90 per cent of its income from the provision of services and is not a professional corporation.

Doesn’t this pretty much give the green light for most spouses of business owners to receive income sprinkling? Assuming they have an ownership position and it is not a professional corporation.”

I’m not sure. What what does “less than 90 per cent of its income from the provision of services” even mean??

Does this mean service businesses have the green light, or not? Only the government could mangle up a simple sentence so much.

#136 Victor V on 12.14.17 at 8:56 am

Canada’s household debt-to-income ratio hits record 171.1% in Q3

https://www.bnn.ca/canada-s-household-debt-to-income-ratio-hits-record-171-1-in-q3-1.943577

#137 Grey Dog on 12.14.17 at 9:03 am

63 Doug T
Re reconsidering the conservative vote after Harper.
I’m doing the same thing here in Ontario with Conservatives. Since golf pro Mike Harris slashed and burned and demeaned nurses and teachers, I actually blame him for spreading SARS since nurses hours were cut back, thus, forced into working in two hospitals in order to have a full week’s complement of hours for original pay. Can I vote provincial conservatives again? The drunken provincial liberal party spending has gone on for too long.

#138 jess on 12.14.17 at 9:06 am

you may need a shower after this read

https://www.buzzfeed.com/tomwarren/secrets-of-one-of-the-worlds-dirtiest-banks-revealed?utm_term=.il78jzVnd#.yo963e1G8

#139 Renter's Revenge! on 12.14.17 at 9:13 am

#114 Wes Coas on 12.13.17 at 11:36 pm
So Trudeau is hiding behind gender equality with his attack on small business and the family. A new low. As if these women who are the recipients don’t have jobs like raising kids? That’s the hardest job ever and most important investment in Canada’s future – it just can’t be taxed now for T2 to spend….

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

OMG Just wait until the libs start taxing all stay-at-home moms on imputed income earned from raising children, all in the name of gender equality. LOL I can see it happening! (hopefully they don’t read this blog – don’t want to give them any ideas now, do we?)

#140 Gonkman on 12.14.17 at 9:20 am

@@@
#117 Ponzius Pilatus on 12.14.17 at 12:24 am

Trump will be impeached long before his idiotc proposals will go through Congress and Senate.
America is still a democracy.
Smokie,
I have a lot of respect for you.
Being a rebel and an outlier.
But now you’re just an idiot.
——————————————————–

Impeached…Russians… blah blah blah..
Not gonna happen.

You should hit the next screaming at the sky event for the loss of Killary… LOL.

America has it right with Trump.. Now if the other Dingbat UN Countries would follow suit the world would be a better and safer place.

Enjoy the US Smokie… Team America “F$$$ Yeah!”

They be winning with Trump… We be Losing…

The next 2 years are gonna suck for Turdo once the US Keeps raising rates and Housing here goes to the Toilet.

Glad I am completely out of Debt and “Invested” and not in Housing.

Go Trump!

#141 isuckless on 12.14.17 at 9:20 am

Re: RE and bitcoin “bubble”:
if you are talking about the bubble you are not in the bubble.
Sorry.

#142 KLNR on 12.14.17 at 9:29 am

@#109 acdel on 12.13.17 at 11:13 pm

LOL, you must be a real treat to be around.
—————————————————————-
Garth, thx for this blog. Great info and the comments section has better humour than theonion.com

#143 KLNR on 12.14.17 at 9:32 am

this is fantastic

https://politics.theonion.com/baffled-dnc-plant-roy-moore-not-sure-what-else-he-could-1821234868

#144 There is still hope on 12.14.17 at 9:32 am

Garth,
Given the new liberal tax reforms did not pass the smell test with the senate finance committee, what are the chances this legislation will be rejected by the conservative dominant senate?

#145 jess on 12.14.17 at 9:42 am

https://www.asiasentinel.com/econ-business/investment-firm-ordered-shut-in-bermuda/

#146 Hi there on 12.14.17 at 9:45 am

What’s better? Big government and high taxes or small government and lower taxes?

Even if your leader is a bit out there, anyone for smaller government is great in my books. Why do we need to pay 50,000 people at a rate of 65,000 plus benefits, so let’s say 100k on average to make sure we pay our taxes.

I can do the math on that one 5,000,000,000 per year paid to enforce the tax code.

Simply change the tax code to strictly wealth or consumption instead of income, but the government will never do this because they would end up paying the most.

#147 I’m stupid on 12.14.17 at 9:59 am

#121 Karma

I completely understand your point. I’m simply saying that the majority of the increases we’ve seen in the bubbly markets is a product of being able to leverage paper gains over time.

While interest rates are equal today as they were 5 years ago you fail to account for the collapse in interest rates in between. You also didn’t take into account amortization periods role in helping to keep payments down. You apply for a mortgage amortized over 25 years, when your mortgage is up for renual you re-amortize for 25 years this lowers your monthly payment and disguises the mess of debt you’re in plus you role your helix back into your mortgage. It works because the market increased. When the market drops or stagnates that’s when we’ll see the defaults.

It goes to my point that the run up is because Canadians are commiting financial suicided in exchange for granite counter tops. Your math assumes rational thinking mine explains irrational thinking.

You’re a rational thinker just like I am, I’m trying to explain crazy. It not an easy thing to do. How else can you explain an average price being more than the average household income of the people living in that market.

#148 Ace Goodheart on 12.14.17 at 10:05 am

So now we get to see the idiotic results of T2’s absurd plan to legalize marijuana.

In Ontario, pot is going to be treated similarly to alcohol. You can only buy it from the government, and you have to smoke it in the privacy of your own home.

BUT: alcohol does not create hazardous smoke. Pot does. Toronto is a very compressed, compact city. Indoor cigarette smoking is virtually outlawed here. People have to smoke outside, at least a number of metres from the entrance to a building.

So what does the government do? Enacts a law that virtually FORCES people to smoke pot indoors.

Are they absolutely nuts?

OK, so your two year old child, who has a room in your apartment adjoining the next unit, now has to breathe stale marijuana smoke each and every day of her life, as your neighbours get high, legally, in their unit next door.

This law is bonkers. Really, if you are going to legalize marijuana, you want to ban people from smoking it indoors, not FORCE them to smoke it indoors.

Nuts, nuts and more nuts. That is what our government is.

#149 IHCTD9 on 12.14.17 at 10:05 am

#136 Grey Dog on 12.14.17 at 9:03 am

Can I vote provincial conservatives again? The drunken provincial liberal party spending has gone on for too long.

________________________

Don’t waste your time with the Cons. Patrick Brown is a gelatinous spined herbivore that will run the Province scared sh!tless that he might piss someone off and not get re elected. He’ll spend just as much on the same stupid crap that Wynne is. Tim H showed some promise, but now we get Brown who is a jellyfish and wants to retire rich via your tax dollars no matter what he has to do.

If a Mike Harris/Stephen Harper FU asshole type Politician does not appear – I’m voting Wynne. In fact, if the Polls show that the libs/NDP could win, I’ll be voting for them. It’s going to need to be an asshole dragging a pair of brass wrecking balls behind him that has a real chance at a majority, or forget it. Anything less is just wasting time prolonging the inevitable.

Give me someone who knows how to say “No”, as well as “take a ####### hike” and I’ll get interested. Until then, I’m happy to keep lowering my tax remittals and voting for a mushroom cloud (Libs/NDP).

#150 IHCTD9 on 12.14.17 at 10:20 am

#131 crowdedelevatorfartz on 12.14.17 at 8:13 am

Soooo, the harder I work means I should pay more taxes for the people that dont work…..

Eventually we’ll all be pot smoking lotus eaters waiting for someone else to send us money…..?
________________________________________

Hey Fartz, head on over to Ontario, we’re oh-so close to a utopian no-work society. Highly advanced. With any luck, the basic income pilots will be a success and you’ll be paid to do whatever you want, including nothing. A quick diagnosis from your disgruntled highly taxed Ontario Doc will have you in free Weed for life. Sit back and relax, cast your fears aside – this is Ontario.

#151 Mike in Edm on 12.14.17 at 10:39 am

I’m very surprised our CDN$ didn’t lose a couple of % to the USD$ yesterday due to the interest rate hike down south. Was it already priced in? Anyone care to enlighten me please?

#152 Fish on 12.14.17 at 10:43 am

the cost of food. Is rising,
I know who makes the best corn dogs
got to go south

#153 crossbordershopper on 12.14.17 at 10:56 am

as 2018 rolls in and the us tax code changes take effect. i will evaluate the difference.
In general, life is better in most parts of the USA then in Canada. I will detail the first thing, the currency, second the tax rate, then the weather, then lower costs for cars and real estate, and opportunity for growth via loans and business growth.
and i will be organizing the bus to the USA from Highway 401 every sunday for anyone who wants to come to America with me.

#154 Philee on 12.14.17 at 11:03 am

I’m going to echo others here, I don’t agree with your “treat entrepreneurs differently than other workers” schtick – when I work over 50hrs a week with no overtime, paid for 40hrs, and my wife has to pick up the slack at home, I don’t have any way of compensating her for it, or splitting my income with her. If you work for a spouse’s business, fine, get paid for your hours like any other employee, file a T4, pay your fair share of taxes, and let’s be done with it. The best way to simplify the tax code would’ve been to remove income sprinkling altogether, treat everyone as salary earners, (or dividend-earners, if you invested part of your cash in a spouse’s business), and if you want to help families out then maybe reintroduce income splitting.

#155 Tony on 12.14.17 at 11:11 am

Re: #150 Mike in Edm on 12.14.17 at 10:39 am

The U.S. dollar index or DXY fell off a cliff yesterday. The U.S. dollar fell almost two-thirds of a cent yesterday. The Canadian dollar rose the least of the foreign currencies.

#156 SquareNinja on 12.14.17 at 11:12 am

Can someone with a decent amount of followers tweet Trudeau and ask him why family trusts, such that he and Morneau have, still get to keep their sweet tax status? The public needs to be made aware.

#157 LivinLarge on 12.14.17 at 11:15 am

TH, I’m pretty sure that the changes to the Tax Act that rolled out last tax year regarding the tax rate on trusts makes you’re trust suggestion moot. Unless those changes are limited to to just testamentary or inter vivos trusts, the income from the trusts are now taxed at the max marginal rate for your province regardless of your individual circumstances so IMO “draconianly bad”.

These trust changes are broadly a hang over from the Harper Reformists and surprised even a cynical git like me. Existing trusts weren’t grandfathered in so folks like widows living on spousal trusts or joint partner trusts were totally gutted of retirement income when they need it most. Hey, Fearless Leader, this would make a great topic for your wonderful and indomitable wit. Since the Boomer generation is the last one where a stay at home spouse was the overwhelming norm and we’re living so much longer now, there are plenty of elderly widows suddenly getting hit with significantly higher tax when they can least afford it and have no recourse to change their living arrangements to compensate. Trusts, for a very long time have been a popular and common vehicle to ensure a spouse’s long term security in their final years and these changes have put such security in serious jeopardy as the costs of senior living facilities have sky rocketed since the recession.

For the self employed folks who labour endlessly and still have less in their pockets than they started the day with, that’s the definition of a “hobby”. I respect folks who want to be self employed but if you can’t consistently turn a decent profit, should there really be tax advantages for being low profit? Sure, some provisions need to be there for times of economic emergency but self employment, regardless of how personally fullfilling it is, isn’t a charity.

#158 Sam the Sham on 12.14.17 at 11:17 am

#111 jane24

“…I have a PhD so can’t be that dumb.”

Well that certainly used to be true. But now that we are seeing all the silly shenanigans going on at our universities by these Social Justice Warrior PhDs, I have to say that one can no longer assume a high level of intelligence from someone with a PhD!

#159 oncebittwiceshy on 12.14.17 at 11:18 am

121 Karma:”Helocs have increased significantly, but the vast majority of heloc availability happens after the conventional mortgage gets paid down. Helocs are a factor, but just one factor in a blend of factors.”

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

Karma, I'm trying to decide if you are a realtor or just someone deeply invested in the market.

The Heloc would typically come into play after the mortgage got paid down but certainly not in an environment where prices happened to go up by 80% in that same time frame.

https://vancitycondoguide.com/canadian-heloc-debt/
"Canadian HELOC debt has grown from $35B in the year 2000 to over $200B in 2016 and growing. This has created an extend and pretend scenario.."

http://www.cbc.ca/news/business/interest-rates-helocs-canada-debt-1.4192847
"A generation ago, you'd get a mortgage and pay it off," she said in an interview. "Now you get a HELOC and treat your home like an ATM."

Those house price increases have allowed many a local specuvestor to play as well as funding their offspring.

I'm not sure what you are arguing but you seem intent on keeping the chinese "investor" meme going to try and give a dying market some kind of a kick start. The link below is more likely the kind of "investors" that drove the market.

http://vancouversun.com/news/local-news/surrey-man-sentenced-fined-for-real-estate-income-tax-evasion

B.C. title documents show that Dhudwal currently owns 10 properties in Surrey, valued at $8.8 million in total. In various mortgage documents for these homes, Dhudwal lists his occupation as “self-employed” and also “janitorial,” as well as “sawmill worker.”

#160 Richard Thorncroft on 12.14.17 at 11:29 am

#129 down_boy on 12.14.17 at 8:09 am
All About Selling in CAD
I don’t want to pay 7%. What alternatives do I have
—–+++++

Google “forex online”.

I use one based in Vancouver that charges the interbank rate plus about 0.6% (its hidden in their rate). Old-fashioned Interac or SWIFT transfers, but they are free. and safe.

I don’t think it’s appropriate to specify which broker I use. But if you get a chance, checkout my new single:
“You can’t handcuff the wind”

https://g.co/kgs/HVW6bW

Rich

#161 bb on 12.14.17 at 11:31 am

Did the federal Gov’t just call women gold diggers LOL?

#162 Eyestrain on 12.14.17 at 11:41 am

Anyone who was unable to see the “$” symbol on the dog’s nose please make an appointment with your ophthalmologist.

#111 jane24 please PM me.

#163 joblo on 12.14.17 at 11:50 am

This almost makes me wanna cry. Almost.
And why not, we have the best in our Cry Minister.
Crynada, whatta country.

#164 oh no..... on 12.14.17 at 11:57 am

Matthew 7:5 (CEB) You deceive yourself! First take the log out of your eye, and then you’ll see clearly to take the splinter out of your brother’s or sister’s eye.
…………

when they start quoting scriptures, run…..like the wind

#165 Rexx Rock on 12.14.17 at 12:08 pm

I was in the bank the other day and the lady said it was 1.31 to buy usd.No thanks I’ll just go to VBCE.They had 1.275.The banks love that Canadians are so stupid or naive and blindly just hand over their money.

#166 Dr. Dolittle on 12.14.17 at 12:18 pm

Jane24, don’t let the comments by the GED’ers get to you.
I did my dissertation on Mid-Century Modern Footstools and know intimately the critical thinking required to earn one’s PhD.
Whaddya say we hookup and go skeet shooting?

#167 Ian on 12.14.17 at 12:27 pm

These byelections are seriously scaring me. WTF is going on?!?!

The Denis Lebel one was bad enough. BC now too?

I still think by 19 the Reds popularity drops due to housing going south between now and then. Let’s hope.

ULTRABLUES!!!

#168 LivinLarge on 12.14.17 at 12:29 pm

Oncebit.., you’ve nailed it. While the HELOC was conceived as a limited access to equity vehicle, like so many other good ideas, it was perverted over time and quickly turned into a simple method for a lender to keep you under their thumb. Where are you going at renewal time if you have a large % of your equity sucked up by your mortgage lender as well? So, getting a homeowner as far into debt as possible is a pure “win/win” for lenders. No serious rate searching at renewal due to the HELOC sitting there.

And the contingent debt represented by the total available on the HELOC is like an anchor around a borrower barely treading water already. Even if you haven’t drawn in the contingent debt, any lender is obliged to consider it an open potential liability before they approve another secured debt.

HELOC sure are simple and convenient to get but it’s really like selling your family cow for a handfull of magic beans.

#169 I’m stupid on 12.14.17 at 12:31 pm

158 Onebitwiseshy

In Karmas defence our debate has been going one for 2 days. To speed you up on our conversation. Karma was saying that the increase of house prices don’t reflect wage growth or interest rates over those last 5 years. I’m saying that his math needs to be more creative to see why prices have gone up so fast.

#170 Victor V on 12.14.17 at 12:56 pm

Bank of Canada more confident less stimulus needed as economy enters sweet spot: Poloz

http://business.financialpost.com/news/economy/bank-of-canada-more-confident-less-stimulus-needed-as-economy-enters-sweet-spot-poloz

TORONTO — The Bank of Canada is growing increasingly confident that the economy will need less stimulus over time, Governor Stephen Poloz said on Thursday, adding that the economy is in a sweet spot after making “tremendous” progress over the last year.

In a year-end speech, Poloz said current monetary policy “clearly remains quite stimulative” despite two interest rate hikes earlier in the year, adding that the economy was close to reaching its full potential.

“We are very encouraged by this, and we are growing increasingly confident that the economy will need less monetary stimulus over time,” Poloz said in prepared notes for a speech to the Canadian Club in Toronto.

#171 Last one....... promise on 12.14.17 at 1:16 pm

I can’t believe you guys were taken in by that postess #111.
If jane24 really was a PhD she would not have asked that question out loud.
She would have generated a null hypothesis first, and then applied for grant funding.
How gullible are you people?

#172 IHCTD9 on 12.14.17 at 1:37 pm

#152 crossbordershopper on 12.14.17 at 10:56 am
as 2018 rolls in and the us tax code changes take effect. i will evaluate the difference.
In general, life is better in most parts of the USA then in Canada. I will detail the first thing, the currency, second the tax rate, then the weather, then lower costs for cars and real estate, and opportunity for growth via loans and business growth.
and i will be organizing the bus to the USA from Highway 401 every sunday for anyone who wants to come to America with me.
_____________________________________

I don’t disagree, but will offer an alt-lifestyle option for Canadians just starting out who have a clear mind, and some southern brass on board. Canada does have a lot to offer outside of the colossal stupidity of our collective hoser governments.

1. Don’t live in a Canadian Metropolis unless you’ve got the financial horsepower to do so. 1 easy tip to vastly improve your lifestyle. If you don’t have at least a better than even chance at that 300K+ salary job you spent 100K on education for – start rethinking your ENTIRE LIFE before you become just another PHD cab driver or bar tender renting for 3K/month.

2. Once you’ve bought a house in an affordable (compared to regional income) city, start working on keeping your expenses low. I have detailed many things one can do to spend less that do not affect your lifestyle one iota.

3. Cut your tax remittances by using your head, thinking out of the box, and innovating. I have detailed several ways. Some will benefit most by seeing a tax pro, others like me are better served cutting/eliminating consumption of retail and highly taxed products. Figure out what you can do and get on it.

4. Invest. You must living in this country. Investments serve to reduce your taxes paid on multiple fronts: RRSP income tax returns and tax free interest, TFSA tax free gains, favourable Capital gains tax structure for non sheltered funds.

You live in a high cost Western society with perpetually broke governments. You will need to have the ability to get by without work before too long. The day is coming when your job will be automated or shipped offshore. Don’t turn a blind eye, you’re not immune.

If you do all this, you have sidestepped most of the stupid that exists in Canada. You’re not a broke sheep paying a 7 figure mortgage. You’re not a tax slave supporting the brainless incineration of revenues in Ottawa. You’re not dependent on Government during retirement. You’re not dependent on your job till 65.

Now you can enjoy all the good Canada has to offer.
Canadians are experts at faking it, and we really know how to subdue our anxieties. You’ll be different with nothing to hide.

#173 Ronaldo on 12.14.17 at 1:44 pm

#164 Rexx Rock on 12.14.17 at 12:08 pm

I was in the bank the other day and the lady said it was 1.31 to buy usd.No thanks I’ll just go to VBCE.They had 1.275.The banks love that Canadians are so stupid or naive and blindly just hand over their money.
—————————————————————
That’s where I deal as well. If you think the banks are bad try the airports. Legalized theft.

#174 Newcomer on 12.14.17 at 1:49 pm

#129 down_boy on 12.14.17 at 8:09 am
All About Selling in CAD
———–

You don’t have to get so fancy. Just set up a better deal with the foreign exchange department of your bank, or get your FA to handle it. A typical spread over the two way conversion is 0.5 to 1%. Seven percent is for suckers. Even ordinary mass-market players like Western Union only charge a 2% spread.

#175 Huh? on 12.14.17 at 2:02 pm

The FED raises its interest rate Canada does naat

#176 Huh? on 12.14.17 at 2:05 pm

Sorry about the last message I don’t know what happened LOL.

The FED raises its interest rate and Canada does not, the Dow and S&P up the TSX down, oil and gold down in the past several days and the Canadian dollar goes up.

Sounds about right.

#177 Newcomer on 12.14.17 at 2:08 pm

#130 Ex-Cowtown on 12.14.17 at 8:11 am

The spouse meanwhile, will be unable to take income. This means that there will be no CPP when she retires and will have zero RRSP room as it will not have been earned through income.
————-

This regulation only applies to dividend income. They are not proposing new tests for income paid as salary. There is no CPP contribution and no RRSP room for dividend income, so this does not make any difference.

Garth is glossing over this, but if you have, say 100 K in business income, and you want to split that with your spouse, so you each get 50K in salary, you are not going to be facing any new hurdles. This regulation is targetting people who want to split income through dividends. Dividends only make sense at higher income brackets. Most chicken farmers and bakers with business income below the 200K+ range will not notice an impact.

Incorrect. To receive a salary that is not taxed at the highest marginal rate, hours of employment need to be proven. — Garth

#178 SoggyShorts on 12.14.17 at 2:08 pm

#14 Adam on 12.13.17 at 6:06 pm
#59 YYZer on 12.13.17 at 7:28 pm
If I work 80 hours a week as an employee of somebody else and my spouse looks after me, then why can’t I sprinkle them with income as if I were a business owner?
***************************
If I buy 50% of a company, I get half of the profits, even if I never set foot in the building.
But if I then marry the other owner, we should pay more taxes?
Please explain why that makes sense to you.

#179 UpayFirst on 12.14.17 at 2:32 pm

of course T2 is raising taxes … there is a cost to taking in every soul that lands at our borders. hard reality folks.

Actually it is the untaxed cheques being sent to people with children that has blown the budget. Are you one of those getting it? – Garth

#180 UpayFirst on 12.14.17 at 3:09 pm

Oh I simply treat the $100 a month carrot as an overdraft to the taxpayers of Canada. I’m simply tucking that aside for the next rounds of tax grabs to pay for the next round of carrots. About as productive as everyone swapping and selling each other houses and patting outselves for the boost to the GDP

#181 JRT on 12.14.17 at 3:32 pm

This sounds like a repeat of the 1980’s where the US lowered taxes and was doing well and in Canada(with few exceptions) increased spending and taxes. I remember working with my Dad on a gas station in Prince George, BC, and the owner said he had 150 resumes for one part time job he had advertised. The unemployment rate at the time was around 30-33%. Okanagan emloyers still whine about not finding employees. Places like fast food joints pay only slightly above min. wage, even though rent is almost as bad as the lower mainland. Dawson Creek was paying service workers $14.50 ten years ago and the rent wasn’t as expen$ive.

#182 Newcomer on 12.14.17 at 3:37 pm

#150 Mike in Edm on 12.14.17 at 10:39 am
I’m very surprised our CDN$ didn’t lose a couple of % to the USD$ yesterday due to the interest rate hike down south. Was it already priced in? Anyone care to enlighten me please?
—————-
Yes, it was priced in, and Yellen was more dovish on inflation than people expected, so CAD gained. I don’t know what is causing today’s big CAD gain. Anyone care to enlighten me?

#183 oncebittwiceshy on 12.14.17 at 3:59 pm

I’m Stupid: “I’m saying that his math needs to be more creative to see why prices have gone up so fast.”

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

You're absolutely right. Let's use an example. I bought my last house for $268,000 in 2003. It is now worth around $800,000 and is paid off.

I can take a heloc of approximately $640,000 out on that house.

That money allows me to buy 3 more homes/townhouses/condos with 20% down on each and rent them out. It doesn't matter whether the rent covers the costs because I'm banking on my realtor's advice that these properties only go up in value.

Now, because these properties are going to go up in value, I'm not going to bother making any payments on the helocs. I'll pay that off when I sell them to be a millionaire.

http://www.moneysense.ca/spend/real-estate/home-equity-lines-of-credit-push-canadians-deep-in-debt/

"but 40% of consumers don’t make regular payments toward their HELOC principal and 25% either pay only the interest or make the minimum payment. “Most consumers do not repay their HELOC in full until they sell their home.”

Now, seriously how many people are actually doing this. How about 14% of Canadians …. and we wonder how this kind of speculation can push prices up? Wow.

#184 makes no sense on 12.14.17 at 4:02 pm

Who in their effed mind wrote these tax rules? The whole text literally reeks of pot. Totally insane and without any logic. I’ve seen guys who smoked up trying to have meaningful conversations and it sounded like total gibberish. Just like that text on new taxes.

Time to go South.

#185 Overheardyou on 12.14.17 at 4:20 pm

#14 Adam on 12.13.17 at 6:06 pm
“There you have the rationale for a small business dude being prevented from paying income to his wife for a venture they started together using joint matrimonial funds”

You’ve sung this song over and over Garth, but it’s way out of tune. If I work 80 hours a week as an employee of somebody else and my spouse looks after me, then why can’t I sprinkle them with income as if I were a business owner?

—–

Make sure to report the amounts you sprinkle as taxable income to her too. Tax on $80K then tax again on which ever amount you ‘paid’ as wages. You must love paying taxes

#186 Newcomer on 12.14.17 at 4:24 pm

Incorrect. To receive a salary that is not taxed at the highest marginal rate, hours of employment need to be proven. — Garth
———

As I said, “you are not going to be facing any new hurdles.” That has always been the case. Bill specifically said that the new rules do not apply to salary, only dividends. If you pay your partner 50K and give them a T4 it’s unlikely to be challenged. But, in any case, even if it were challenged, as we are all talking about fair and aboveboard situations, it should not be a problem to prove it.

A shareholder should not be required to be an employee to be compensated. — Garth

#187 Steven Rowlandson on 12.14.17 at 4:25 pm

Garth I thought you were one who sees government and their friends as being always right. Is this correct or am I mistaken?

#188 Milla on 12.14.17 at 4:29 pm

Referendum to join USA:))) Merry Christmas!

#189 Steven Rowlandson on 12.14.17 at 4:33 pm

Re:102

“All physical land in Canada is the property of the Crown, Queen Elisabeth II. There is no provision in the Canada Act, or in the Constitution Act 1982 which amends it, for any Canadian to own any physical land in Canada.”

In the light of this there is no point in paying much for real estate as either a purchase or for rent. To do so is a total waste of the official currency.

#190 mike from mtl on 12.14.17 at 4:45 pm

#181 Newcomer on 12.14.17 at 3:37 pm
…Anyone care to enlighten me?.
///////////////////////////////////////////////////////////////////

Poloz upbeat comments & somewhat favourable numbers.

#191 Brent Wagner on 12.14.17 at 5:22 pm

Reading the Canadian newspaper from earlier this month an article bout how Vancouver is the model city for other larger cities through out the world. That model entails the gambling establishments in the city are the BEST at laundering money which has had a major impact on the high prices in the city. Where else would you put all the gains these gambling halls make?

#192 down_boy on 12.14.17 at 5:26 pm

#173 Newcomer on 12.14.17 at 1:49 pm
#129 down_boy on 12.14.17 at 8:09 am
All About Selling in CAD
———–

You don’t have to get so fancy. Just set up a better deal with the foreign exchange department of your bank, or get your FA to handle it. A typical spread over the two way conversion is 0.5 to 1%. Seven percent is for suckers. Even ordinary mass-market players like Western Union only charge a 2% spread

…..

I have a US account at bank and move funds 2 -4x per a year for online sales. Only recently I’m starting to ask why am I paying this as amounts accrue. I will ask my bank, thank you for the motivation, but now I will also ask them why I had to learn this off someone on the internet. Why don’t I get the best, preferred rate from day one, like what is standard using Dash or Ripple for anyone?

I didn’t set out wanting to sell to US. Customers saw website and called. This is the learning curve of an entrepreneur. Peer2peer still beats 2%, even 1%.

#193 down_boy on 12.14.17 at 5:29 pm

#159 Richard Thorncroft on 12.14.17 at 11:29 am

Thanks I will check it out.

#194 BillyBob on 12.14.17 at 5:49 pm

#64 Andrew Woburn on 12.13.17 at 7:44 pm
#43 TheSecretCode on 12.13.17 at 7:02 pm
You only get tracked as a “Foreign Buyer” if you play by the Canadian rules and fill out the forms.
=======================

Wherever there are currency controls, there are services that arise to beat them.

I used to know a guy that worked for an Austrian bank in the 80’s, one of the banks with anonymous accounts that you could only access with a secret password. He would fly into African dictatorships with exchange controls, meet a client near the airport, and fly out with maybe $250K in cash in his luggage. His bank had no branch in any of these countries in order to avoid any of their local regulations. His service wasn’t cheap but it was reliable and he was busy.

This approach is entirely too crude for today’s anti-money laundering regimes but you can bet it is still going on in some form.

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

Oh this still goes on. Until a few years ago used to regularly operate flights from DXB-IKA where some gent (always a man, always very large) would purchase a second seat solely to carry a suitcase. It would not be checked, it would not be put in an overhead bin. Just plain old cash. So much for embargoes and sanctions on Iran lol.

There’s a reason there are Customs officers lined up several deep on the jetway in YVR searching passengers arriving from China. I guess they’re just bigots.

It does make a mockery of official stats. And no, it’s not about blame – if it were, there would assuredly be a lot to go around. It’s about acknowledging what’s going on in the real world outside of charts and official reporting channels.

#195 Renter's Revenge! on 12.14.17 at 5:49 pm

#171 IHCTD9 on 12.14.17 at 1:37 pm

If you don’t have at least a better than even chance at that 300K+ salary job you spent 100K on education for – start rethinking your ENTIRE LIFE before you become just another PHD cab driver or bar tender renting for 3K/month.

#188 Steven Rowlandson on 12.14.17 at 4:33 pm

In light of this there is no point in paying much for real estate as either a purchase or for rent. To do so is a total waste of the official currency.

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

My understanding is that the value of land (and the rent that can be charged to use it) mainly comes from the ability of the owner or renter to use it to produce an income or the proximity of the land to a source of income such as a good job. Of course there are other things that give land its value like nice weather and scenery, and with the internet some people don’t need to be physically close to their source of income anymore, but for the majority of the population, I think the economic reasons remain dominant.

So, yeah, the logical thing to do is to live wherever the difference between your income and cost of living is the greatest, given what you do for work, as that difference is your source of wealth and eventual ticket to freedom.

#196 Lost...but not leased on 12.14.17 at 5:53 pm

#188 Steve Rowlandson

Re property rights.

One of the early warning signs was T1 did not entrench property rights in the new Constitution.

However, its even worse in the USA when one is subjected to “Eminent Domain”..especially under Agenda 21.

Rosa Koire , a USA property appraiser, stumbled across the property confiscation agenda of Gov’ts…highly recommend are her many YOUTUBE videos.

#197 Ron on 12.14.17 at 6:34 pm

The Reefer Madness in these comments is hysterical.

Are you all in your 80’s?

I’ve indulged almost daily since I was 16.

Master’s degree, 6 figure job, 7 figure portfolio, daily exercise, hot girlfriend. I can assure you I’m not an anomaly.

#198 SoggyShorts on 12.14.17 at 7:17 pm

#186 Steven Rowlandson on 12.14.17 at 4:25 pm
Garth I thought you were one who sees government and their friends as being always right. Is this correct or am I mistaken?
********************************
I can’t tell if you’re joking or just new here, but I’ve seen Garth crap all over every political party at some point. Even if he agrees with some policies, they all make bone-head moves at least sometimes, and they are called out for it on this blog.

#199 Parksville senior on 12.14.17 at 8:32 pm

Guess I will sell me stock in Cheetos!

#200 Blutterfy on 12.14.17 at 8:55 pm

#14 & #16 Adam and #59 YYZer

You guys have no idea. My spouse started their own business while I was working for an employer. Money that you earn from an employer goes into your bank account. Imagine seeing all your money that you put in every week go out for business expenses. Ya it might be fuller at times than it used to be but there’s no telling if there’s gonna be anything in the account come bill payment time. So now you have no money and your spouse can’t split their earnings and expenses with you. Yay. And all the sheeployees wonder why there are so many layoffs. Seriously dude start your own company and then complain or happily pay your extra tax.

Basically your spouse is using your money to fund the business so you should be able to get some earnings from the business even though you work a real job and your spouse is a crazy entrepreneur.

That’s why all the small business owners are mad. Because yes I’m not directly employed but some weeks I can’t buy groceries because it’s the same damn money.

#201 Gravy Train on 12.15.17 at 7:01 am

#196 Ron on 12.14.17 at 6:34 pm
“I’ve indulged [in cannabis] almost daily since I was 16. Master’s degree, 6 figure job, 7 figure portfolio, daily exercise, hot girlfriend. I can assure you I’m not an anomaly.”

You left out your best feature: bullshit artist.

#202 Iconoclast on 12.15.17 at 10:02 am

The NDP has their platform.

If they’re smart, they will go after the family trusts.
They’ll portray the Liberals as two-faced tools of rich tax dodgers.

And they’ll be right.