B-day

1B DOG

Time to compare the Trudeau hype to the reality. Not that it matters to many of the Libs’ enthusiastic, moisty supporters or those who voted for T2 because he wasn’t Harper. This budget won’t change their minds much. But the crustaceans among us are watching with beady eyes.

And let’s remember where most people are at. Being house-lusty and debt-hungry hasn’t stopped them from worrying. A pre-budget poll found 33% think the economy will get worse, and just 24% feel the opposite. Almost seven in 10 say they fret over their personal finances. With record borrowing and stagnant incomes, no wonder. BTW, the most negative? That’s the 18-to-34 crowd. They all voted for Robin Hood.

Here’s today’s scorecard:

What they promised on national finances:
In the election we got three commitments: Libs would run a “modest” annual shortfall, spending about $10 billion a year more than they took in for two years. Despite that, T2 promised any deficit would be wiped out before the next election (2019). And, finally, the ratio of the federal debt to the size of the economy shrink as steadily as Adele’s popularity or the longevity of the average Kia.

In their own words:

“With the Liberal plan, the federal government will have a modest short-term deficit of less than $10 billion in each of the next two fiscal years – less than half the average Harper deficit of over $20 billion per year. After the next two fiscal years, the deficit will decline and our investment plan will return Canada to a balanced budget in 2019/20. Combining fiscal prudence with investments in economic growth, we will end the Harper legacy of chronic deficits and reduce Canada’s federal debt-to-GDP ratio each year.”

(For context, the last evil guys – Harper Cons – had a budget surplus of $14 billion in 2006, and a more-or-less balanced budget in 2015. During the intervening financial crisis the shortfall swelled to $55 billion in 2010, dropping to $5 billion by 2013. This was due to a plunge in tax revenues and an increase in spending under the ‘economic action plan.’ In all, Harper added $170 billion to the debt over eight years.)

What the Liberals just delivered:
Not good. The hole this year, when there’s no global credit crisis and economic growth is slow but positive, will be almost $30 billion. It’s three times the amount promised five months ago, and means the goal of a balanced budget within three years is smoked. In fact four years from now the red ink will still be at $14 billion, with $100 billion in new debt. Yikes. This comes despite a host of new tax measures, including creation of a new eat-the-rich tax bracket, a serious nipping of TFSAs and diddling with investment tax rates.

What they promised on more spending.
The campaign promise was another $10 billion, half of that for infrastructure, $2.5 billion for jobs training and the rest on everything from arts to indigenous peoples, veterans, immigration and the environment.

What the Liberals just delivered:
The big thing is child care. The Lib’s Canada Child Benefit increases kid spending by more than $2 billion, so Ottawa is now sending a whopping $22 billion a year to families. The benefit is income-tested, which means higher-income earners who contribute disproportionately will receive no benefit. This is the new “equality” you’ve heard so much about.

Of course, there’s infrastructure spending – the equivalent of the old “Canada’s action plan”, but way more, at $120 billion over a decade – plus more money for aboriginal communities, Alberta, jobless benefits, the CBC, a clutch of other programs including a billion more a year for the poorest wrinklies. Plus the age for OAS drops back to 65 – something that will cost $11 billion a year extra by 2030.  Let’s hope this economy starts firing on more cylinders. If not, your grandchildren will be muttering something about, “what the…?”

What they promised about taxing.
We knew the TFSA would be gutted, with the annual contribution cut by half. We knew about the tax on the successful, with creation of a brand new bracket to drain other $2.8 billion from the already-highest-taxed citizens. We knew about the slight decline in middle-class taxes with a cut averaging $8 per week per family for nine million taxpayers. We knew the Libs had a hate-on for stock options and considered many small businesses as tax-deferral or avoidance vehicles for wealthier people. Like doctors. And we knew the Trudeauites would ditch income-splitting within families, in the belief anyone who can afford a stay-at-home parent must be rich. But much of that will apparently be left form the next budget.

What the Liberals just delivered:
Besides the expected, a disappointment for small businesses, whose tax rate reduction to 9% isn’t happening any more. But the rumours were wrong. No increase in capital gains taxes. No all-out assault on small businesses or owners who avoid taxes through income-splitting or taking dividends. Fortunately enough small-c cons still shuffle around the Department of Finance to make the point that this is not the time to be penalizing people for starting or running businesses. And if you have corporate-class mutual funds well, sorry. Taxes ahoy.

The GreaterFool bottom line:
The budget will be deemed a big success by the T2 nation. Unlike some of the fossils who read this pathetic blog, they don’t care about red ink. They live with debt, ignore it and do not fear it. They see income inequality as a social crime and feel just fine about penalizing success. Big taxes are okay if accompanied by big spending. Deficits will handle themselves. If the guys in power are perceived to share common values, they have carte blanche. Government, in this context, is seen as the solution, not the problem. Every day, more personal control and responsibility is surrendered to the state.

These are interesting times. They won’t last.

 

285 comments ↓

#1 Caught In The Grip on 03.22.16 at 4:47 pm

Will increased federal debt weigh on the $CAD in the future?

#2 Garden Maven on 03.22.16 at 4:47 pm

“These are interesting times. They won’t last.” I hope you’re right. Loath T2, what a fool.

#3 Rebecca on 03.22.16 at 4:49 pm

Government debt is fine if it invests in economic growth. Some of the Liberal spending increases seem on point, like the infrastructure increase, but other parts, like decreasing the age for OAS, are awful.

Still better than Harper.

#4 Fluorine on 03.22.16 at 4:51 pm

Glad to see small-c conservatives still have some input in the whole thing.

At the very least, we can stop fretting about it, and get back to talking about tax savings and preferred shares.

#5 Smartalox on 03.22.16 at 4:53 pm

Garth, thanks for your breakdown of today’s budget, but I fail to see how your thesis leads to the conclusion that “every day, more personal control and responsibility is surrendered to the state”

I’d wager that Canada could not avoid deficit spending at this time because previous governments had failed to ensure diversification in the economy.

What would you have considered doing differently?

#6 SI2K on 03.22.16 at 4:53 pm

“And we knew the Trudeauites would ditch income-splitting within families, in the belief anyone who can afford a stay-at-home parent must be rich.”

You’re absolutely right to call this out. There are legions of lower income spouses who’ve been out of our professions for years since day care started costing more than our (lower) salaries. Or else we couldn’t find day care at all even with thousands of dollars in hand. These couples are essentially forced to income split through spouse’s corp or else lower income spouse winds up with a resume gap and zero income. Zero income with a perfectly good degree and willing to work isn’t very good for anyone’s emotional health. I’m glad they didn’t touch it, but I’m also glad the child care crisis is being addressed.

#7 watcher on 03.22.16 at 4:54 pm

lol you really have it out for Adele

#8 Bill Weldman on 03.22.16 at 4:54 pm

First!!

#9 Brilliant Government on 03.22.16 at 4:54 pm

Bring in more refugees…….

Give them more money and free housing.

Meanwhile Canadians who have been laid off many educated and skilled are unable to find work.

#10 Jack Hammond on 03.22.16 at 4:55 pm

Remember Harper and Flaherty on Income Trusts gradually being phased out in 4 years or so.

Well, corporate class mutual funds will now be taxed as of October-1-2016.

You see, you get screwed in 6 months not over 4 years. Trudeau, Morneau federal Liberals are such understanding, compassionate people. Yeah, right!

#11 Asama on 03.22.16 at 4:57 pm

First.

#12 moh omar on 03.22.16 at 5:01 pm

Hey Garth,

I am a young I.T. Professional who earns about 76,000 and my makes about 40,000. We have only a few thousand in debt. About 60K in RRSP and about 30k in tfsa. We live in brampton and want a house really badly. We have not bought one and we live with my parents. We are planing to rent in the fall however we hear from alot of people espically our parents on why we are not buying. You will cringe to hear this but we spent 40K on our wedding. Although you and most of the readers are against an expensive wedding, we felt that we did the right thing to celebrate our love with 400 of our close family and friends. I love my wife and I feel that she is the greatest thing that has happened to me. Hence why we spent alot on a wedding.

#13 ILoveCharts on 03.22.16 at 5:01 pm

Very concerned about the form of spending. It looks like a lot of program spending – hard to see how it will create infrastructure that actually increases productivity.

Question: Why did the dollar not take a dive after seeing that we are now projecting deficits as far as we can see?

#14 TRUMPs Right on 03.22.16 at 5:02 pm

Pray for Belgium…..Pray for Canada….

We need Donald Trump……..

Build a wall…..kick them out !!!!

#15 YVR2ZRH on 03.22.16 at 5:02 pm

How about we start to move away from an “Income test” which is an antiquated measure in today’s asset-driven and wealthy society. Or, we could have a “deemed income inclusion” on real estate assets. This way, those with $5 million houses but no income are not better off than someone with $3 million in investments, but paying rent for the same house. The renter will be seen as “rich” but the owner will be able to claim all the benefits and have none of the clawback issues of having high “income”.

The system overall needs to have a re-think as to how “high-income” is computed.

#16 liqudincalgary on 03.22.16 at 5:03 pm

what is a corporate class mutual fund?

#17 Jake Beckham on 03.22.16 at 5:05 pm

So is the life strategy now then to have spouse quit her job, so we can have more children, get more child care benefits and pay way less tax to the government? We won’t need the wife’s income anymore because we get the supremely enhanced benefits. I love the middle class!

#18 Spiltbongwater on 03.22.16 at 5:07 pm

So no national daycare. I guess we can go to another election with (insert party here) promising to have nation wide daycare for (insert price here) per day.

#19 Deb on 03.22.16 at 5:09 pm

On the revenue side of things, I am very surprised that the GST was left untouched. The time to increase it, if at all, should be early in the Liberal mandate. I had expected a 1% hike this year and 1% next year, to generate at least some extra cash to pay for all of this spending / investments.
A good friend of mine disagrees and maintains that increasing the GST would only choke off growth, which is really what is necessary to pay for all of this. We meet tonight to watch the budget highlights, and continue the debate.

#20 Smoking Man on 03.22.16 at 5:12 pm

Just brutal for small business

Huge windfall for the educational industrial complex, the continuum of Cultural Marxism, wonder how much of that money will be dedicated to safe spaces, and counselors for those lost souls that have there feelings hurt.

And any student who ignores the cultural mind fking and gets a degree of value will move to the USA.

The irony. the young urban hipsters who voted in these thieves are going to be stuck with the bill right around retirement.

#21 Mark on 03.22.16 at 5:14 pm

Entirely predictable. Harper ran an average $26B deficit in his decade in power. Put some inflation indexing on it, and you’re in the $30B range. Which is what the first Trudeau/Morneau budget has “promised”.

The real problem is just how credible is the budget, as stated, anyways? The CMHC is going to increasingly be a problem over the next few years (back-of-the-envelope calculations indicate that it could need in excess of $100B of funding). Yet not a single mention. The discussion seems to be almost exclusively surrounding the price of oil, and not the real elephant in the room. That is, the rapidly decelerating housing sector, falling RE prices and the likelihood that the CMHC will face a significant quantum of claims.

I was also struck by the elimination of many so-called ’boutique’ tax credits, but almost in the next breath, the implementation of a $150 credit for teachers to buy “supplies”. I don’t think that tying family income to benefits for kids was appropriate either. If anything, when high income people have kids, they face costs that are proportionately and significantly greater than when low-income families have kids. Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?

Overall, I give it a thumbs down. A year from now, it wouldn’t surprise me if the deficit is actually $40-$45B.

#22 1972 Redux on 03.22.16 at 5:15 pm

Disco nation on the way.. boogie wonderland

#23 Westvan on 03.22.16 at 5:18 pm

This budget is reckless and stupid spending, it’s like we all just took a look in the mirror complete reflection of today’s financial values

#24 Doug t on 03.22.16 at 5:19 pm

Cycles – and we are in the throws of a commodities super cycle death. The next several years will be rough for this country – we are held captive by the whims of the world trade markets. Dial it in people – this is not the time for a new 50 inch tv. Save if you can – pay down debt if you can and hope that all the bullshit going on between the world powers doesn’t result in a world war

#25 hope & ruin on 03.22.16 at 5:20 pm

The big thing is child care. The Lib’s Canada Child Benefit increases kid spending by more than $2 billion, so Ottawa is now sending a whopping $22 billion a year to families.
____________________________________

great. I’m gonna knock-up my girlfriend. tonight should be fun. Any ideas on names? I want something liberal-inspired.

#26 Matt on 03.22.16 at 5:20 pm

What are corporate class mutual funds? Are those the mutual funds you buy through a bank, such as the TD Balanced Portfolio or e-Series mutual funds?

#27 Ponzius Pilatus on 03.22.16 at 5:22 pm

For those who care, the Nazis also had a family first policy.
They introduced Family Allowance and Kindergarten.
I think no one would call them Liberals.
People have always lived in interesting times.
Unfortunately, we don’t learn.

#28 zeeman1 on 03.22.16 at 5:22 pm

Garth, no mention of the ultimate T2 kleptocratic scheme coming nationwide and adding to the green energy disaster. BTW, why no mention of hydroelectric power in a land with unlimited green and emission free hydroelectric potential?

The carbon tax AND cap and trade are all coming and will add well over 1K/year to most families cost of living, while only benefitting the ass kissing politically well connected who always seem to be liberals.

Oh, and the info below tells us why Trump will win.

Trump is right economically. So much so Cruz lifted most of his economic platform out of Trump’s book Time to Get Trough. Trump is left of center socially. He supports Planned Parenthood, and states its is up to the States to support, or oppose Gay Marriage. He also has the same position on legalization of marijuana. In other words Trump is on most social positions right where 80% of Americans are.

On Foreign policy over the last 15 years, Trump has been correct way more often than not. Cruz has supported three recent policies going back to G.W. Bush that have cost the US more than $2 trillion, and 4500 lost soldiers. He opposed the war in Iraq, stated ISIS will draw in Russia and they will set it back, not Obama policy. He said bomb ISIS oil supplies, hit their banking system, and use logarithms to disable computers, phones, and other devices used by terrorists. He said to target family support terrorists use to slip into Western countries, and that helps them plot. He calls for a moritorium on allowing Muslims to enter the US until a better system is found to weed out terrorists and supporters of Sharia law. He said removing Kadaffi in Iybia was a mistake the way Obama did, he was correct. On Russia Trump is very clear. You erode its power through energy independence of the US, that also erodes impact of the biggest supporter of terror outside Iran: Saudi Arabia. He says the US could inside of his first term become a greater source of natural gas for Europe than Russia is. On North Korea Trump wants to use US trade as a tool to have China take down its dictator.

Trump is the only candidate who has employed someone. And just in case a Cruzbot is out there it turns out 0.0065% of Trump employees since he started in business in 1977 were illegal aliens, all of whom hired by subcontractors. Trump knows US business law from all directions, he has built more than $25 billion worth of projects overseas for himself, or under contract with another entity including investors with the governments of nearly all EU countries, Ukraine, Poland, Russia, Saudi Arabia, all the Gulf States, China, India, Indochina, Australia, New Zealand, Mexico, Panama, Brazil, Argentina, Chile, and yes even Canada, or investors in these nations. Trump knows international trade law due to this work better than nearly any man alive. He speaks two languages, his wife five. What does Cruz know? What he has been told by the same crowd that has messed up the entire planet. In some cases what they bombed, or tore down, Trump came in to rebuild it!”

#29 Capital gains inclusion rate unchanged! on 03.22.16 at 5:23 pm

At least they did not increase the capital gains inclusion rate!

#30 UVIC ELEC on 03.22.16 at 5:25 pm

If they are deferring military spending to 2020+, and can speak to that, why don’t they have a f***ing plan laid out for how much money legalizing and taxing marijuana would bring in that far down the road too!

Sincerely,

A moist, disappointed millennial.

#31 zeeman1 on 03.22.16 at 5:27 pm

Oh, and Garth, your last paragraph today was succinct and brilliant. No one can say it better, and all you Zealander supporting morons should read it, memorize it, and look long and hard in the mirror:

“The GreaterFool bottom line:
The budget will be deemed a big success by the T2 nation. Unlike some of the fossils who read this pathetic blog, they don’t care about red ink. They live with debt, ignore it and do not fear it. They see income inequality as a social crime and feel just fine about penalizing success. Big taxes are okay if accompanied by big spending. Deficits will handle themselves. If the guys in power are perceived to share common values, they have carte blanche. Government, in this context, is seen as the solution, not the problem. Every day, more personal control and responsibility is surrendered to the state.

These are interesting times. They won’t last.”

#32 understood by few on 03.22.16 at 5:29 pm

Freezing the small business rate at 10.5% is disappointing but I’m relieved they didn’t go full guns on small business. If T2 really wanted to target the rich and help the middle he would have left income splitting for families under whatever he currently classifying as rich level income.

Now a family at median income with one earner pays more in tax, but more well off people with their own corps can split all they want. I’m not complaining, suits me fine. If I were affected I would be moaning, but like the tfsa t2 supporters probably applaud this change because it “targets the rich”. Doesn’t matter if it works, he just has to say it will and follow through. “Trudeau is really giving it to those rich people,” they’ll say, champion of the middle! So good for Canada!”

#33 Sisterwives on 03.22.16 at 5:29 pm

Everyone will have to start popping out more kids by the bakers dozen – the only way to get ahead in Canada with the new Liberal budget.

#34 Penny Henny on 03.22.16 at 5:41 pm

#15 YVR2ZRH on 03.22.16 at 5:02 pm
How about we start to move away from an “Income test” which is an antiquated measure in today’s asset-driven and wealthy society. Or, we could have a “deemed income inclusion” on real estate assets. This way, those with $5 million houses but no income are not better off than someone with $3 million in investments, but paying rent for the same house. The renter will be seen as “rich” but the owner will be able to claim all the benefits and have none of the clawback issues of having high “income”.

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

Silly, silly boy/girl?

An individual with $1 million in cash is a millionaire.
Where as an individual with a $1 million dollar house and another $900 k in cash in a non millionaire.

#35 cramar on 03.22.16 at 5:42 pm

The Canadian Press called it a “sunny ways budget”. I predict that the sunburn that Canada will be getting will turn into melanoma by the time T2’s mandate is over!

According to CP:

“During last year’s campaign, the Liberals promised “modest deficits” of no more than $10 billion over the course of their mandate and to balance the books by 2019-20.

“Times, it seems, have changed: The word ‘deficit’ appeared nowhere in Morneau’s budget speech, nor did ‘spending.’ ‘Investment,’ on the other hand, registered 22 times.”

So this is the new “T2 Double Speak”!? We now have $100B in NEW INVESTMENTS!

It is an Orwellian wolf in sheep’s clothing. And the Millennial fans of T2 just love warm and fuzzy sheep as well as debt!

#36 boonerator on 03.22.16 at 5:46 pm

12 moh omar on 03.22.16 at 5:01 pm

. We are planing to rent in the fall however we hear from alot of people espically our parents on why we are not buying. You will cringe to hear this but we spent 40K on our wedding.
====================
After buying houses at the top, weddings must be #2 on the wealth destroyer index.

At an event yesterday, I talked with someone at a Pension Corporation about her job. Part of the job is counseling people about what to do with their pension.
She was unable to counsel a woman who cashed out her pension to pay for her daughter’s wedding.

#37 Mocha on 03.22.16 at 5:46 pm

The “pandering to female voters/single moms budget.

Garbage

#38 Mark on 03.22.16 at 5:47 pm

“what is a corporate class mutual fund?”

With most traditional corporations, profits are distributed pro rata. With the corporate class mutual funds, a shareholder, by agreement with the corporation, could target their shareholder returns towards specific assets held by the corporation. And alter that relationship (ie: target different assets of the corporation for a shareholders’ share of returns) without triggering a disposition for tax purposes.

Problems with the structure, when it was applied to communal investing are many. Claims of promoters concerning tax efficiency were highly exaggerated. I haven’t seen the specifics concerning the Budget 2016 measures with respect to them, but their effective phase-out probably isn’t a bad thing for Canadian investors.

What are corporate class mutual funds? Are those the mutual funds you buy through a bank, such as the TD Balanced Portfolio or e-Series mutual funds?

Those specific funds are “Mutual Fund Trusts” per the Income Tax Act. Not corporations.

#39 Love my Kia on 03.22.16 at 5:48 pm

#14 Trump is right

Pray for Belgium…..Pray for Canada….
We need Donald Trump……..
Build a wall…..kick them out !!!!
**************************

You realize that Trump’s motto is ‘USA! USA!’

Unless you carry an American passport, you are on the wrong side of the gun Trump is holding. He has vowed to tear up free trade agreements (good bye softwood lumber manufacturing, oil exports). Not good for Canada in the least. Everything you are watching is from am American perspective like you are one.

I don’t believe he will win anyway, he will get his arse kicked by a girl.

#40 Millennial Realist on 03.22.16 at 5:57 pm

“Every day, more personal control and responsibility is surrendered to the state.”

As opposed to the completely discredited, failed system of “trickle-down” which has given more control to tiny groups of elites and the 1%?

I’ll take these kinds of measures any day, thanks!

All we are doing is returning to a taxation system that has more in common with the ideas of that great communist, Dwight Eisenhower.

Crying Neo-cons – you want a tissue?

Poor babies…….

#41 odious herodias on 03.22.16 at 5:57 pm

#5 Smartalox

Re “previous governments had failed to ensure diversification in the economy”

Name any govt who has “ensured” successful anything ever? The Cons had the sense to lower taxes, reduce regulation, and increase opportunity to for any industry sector to prosper. While govts can certainly meddle and discourage, it cannot “ensure diversification”, despite what left leaning dogma suggests. Look around at the failed “managed” economies around the world in the last century, e.g. Venezuela

#42 WalMark of Sadkatoon on 03.22.16 at 5:59 pm

I like the new Canadian Action Plan which is the same as the old Canadian Action Plan just w a different name lol

#43 MacroDave on 03.22.16 at 6:00 pm

Garth, doesn’t today’s article precisely highlight why interest can’t go up? All those expenses you mentioned are rounding errors compared to the increased servicing cost if interest rates are increased. You can hit me with a one-liner but a blog about that would be preferred. :)

#44 WalMark of Sadkatoon on 03.22.16 at 6:03 pm

I love my wife and I feel that she is the greatest thing that has happened to me. Hence why we spent alot on a wedding.

Those 2 things aren’t correlated. Just an FYI

#45 Old Man Too on 03.22.16 at 6:05 pm

As always happens, the new guys blame the last guys for leaving a bigger mess than anticipated. In this case they weren’t wrong. The 1st $10B of this deficit belongs to Harper.

#46 ole Doberman on 03.22.16 at 6:11 pm

Money flowing into stock markets?

#47 james on 03.22.16 at 6:13 pm

#5 “… Canada could not avoid deficit spending at this time because previous governments had failed to ensure diversification in the economy.”

Good lord, what is this nonsense?

What are you, some sort of communist?

“failed to ensure diversification”?

Since when is it the job of government to ‘ensure diversification’? Alternatively, what makes you think it is POSSIBLE for governments to do this, or to ‘manage’ the economy in general.

A large part of the history of the 20th century can be viewed as a failure of top-down command and control models. The Soviet Union was a basket case, so was Communist China and socialist Venezuela. Even in the USA, ‘new deal’ interventions by government led to a host of issues pertaining to resource misallocation and corruption. A case in point being the Farm Bill.

This sort of person is precisely the problem. This naive and outdated belief that some all knowing, all powerful government can solve problems by fiat.

Rather than embracing new forms of social organization (such as those based on networks, dynamic collaboration, etc etc), the majority of Canadians cling to this fanatical belief in a completely out-dated and discredited model.

This is one of the reasons that the Canadian economy is so tepid and incapable of the very diversification that this person is talking about. The population is full of insipid sheep who lack any understanding of history or economics, and who wish for someone else to make their life nice and comfortable.

#48 Dr. Talc on 03.22.16 at 6:14 pm

#14 TRUMPs Right on 03.22.16 at 5:02 pm

Pray for Belgium…

—–
Let me guess, you worship television

#49 Cici on 03.22.16 at 6:15 pm

Hmmm…curious as to what you mean by these interesting times “that won’t last?”

“Not last” like the current housing boom…or a real not last? And, if the T2 has a “carte blanche” among the electorate, how will this party every end? Are there not too many paper-millionaire seniors willing to prop up this gov thanks the 65 years OAS promise, and too many voting millenials willing to sells their souls on the promise of free $$ on the back’s of the nation’s rich?

Wow…so there’s never been a better time to be or become a parent and take on a less-demanding, part-time job to avoid the higher tax bracket and benefit from the hard-working “richies?” Sounds nice in theory, but could be nightmare in the long run?

#50 Dr. Talc on 03.22.16 at 6:18 pm

#27 Ponzius Pilatus on 03.22.16 at 5:22 pm

For those who care, the Nazis also had a family first policy.

—–

that policy was not extended to Polish white Christians,
many were executed in front of their own families

#51 sean on 03.22.16 at 6:18 pm

I believe that “corporate class mutual funds” are groups of funds held within a single umbrella corporation such that you can switch between individual funds (e.g. to match risk tolerance with age) without crystallizing a capital gain. Capital gains are declared and taxed only when you “cash out” of the fund entirely.

At the risk of setting off (another) inter-generational ruckus, this budget apparently introduces a “senior’s CPI”. From the Liberal platform: “OAS and GIS will be indexed to this new, more accurate, and more generous measure”. For wrinklies, the best part is that this is a “no lose” proposition as the regular CPI will be used if it’s higher!

So, millennial and gen-X wage earners will keep being told by employers that the (hedonically adjusted, non-senior) inflation rate is only 1%, while paying for senior’s benefits which are adjusted to “more generous” levels. Nice.

M48ON

#52 mitzerboy aka queencitykid on 03.22.16 at 6:23 pm

Saskatchewan Premier Brad Wall says what he’s seen so far of the federal budget is “disappointing.”

poro saskatchewan
we never learn out here

#53 Retired Boomer WI on 03.22.16 at 6:24 pm

Glad I don’t live there must now. The US has our own list of problems, but at least the deficit has been moving in the right direction of late. Funny, our last “conservative” there for 8 years did a horse-sh*t job balancing a dam thing, or paying for war ventures HE started. Finally, and worst of all, he couldn’t find his veto pen.

Not naming any names., some will remember the clown.

#54 hope & ruin on 03.22.16 at 6:26 pm

#21 Mark on 03.22.16 at 5:14 pm

Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?
______________________________________

Mark, of all the things I’ve heard you say…..really?

#55 james on 03.22.16 at 6:27 pm

#39 Love my Kia

“He has vowed to tear up free trade agreements (good bye softwood lumber manufacturing, oil exports). Not good for Canada in the least.”

Funny, most ‘progressives’ don’t like ‘free trade’ agreements. I am unaware of any good studies showing that the Canada USA free trade agreement is a net positive for Canada. Last time I checked, the softwood lumber dispute was viewed as a bad thing by Canadian forestry companies.

In fact, most leftist groups argue that free trade is one of the reasons for the LOSS of manufacturing jobs. Very odd, since you seem to be arguing that without free trade we would have less manufacturing. Seems rather inconsistent.

“I don’t believe he will win anyway, he will get his arse kicked by a girl.”

You greatly underestimate the degree to which blacks (particularly males) will suppose an old, privileged white woman. Romney won 20% of the black male vote against an incumbent black male president. Given that illegal immigration hurts black males the most in terms of labour opportunities, you can expect any candidate standing up against illegal immigration to gain a substantial amount of votes from black males.

I’m not saying he will win, just that things are not as simple as you outsiders believe.

What this has to do with housing or the budget is a mystery.

#56 rjrt81 on 03.22.16 at 6:28 pm

Ding Dong the King is dead.

http://rabble.ca/blogs/bloggers/feminist-current

#57 tundra pete on 03.22.16 at 6:29 pm

#12 40k on a wedding.

Gulp! Well I guess the one way to view that potential loss would be 40k less to deal with at divorce time. They will both lose it equally and can’t blame the other for blowing 40 grand! Must have come out of the parents LOC. Sweet, best of luck to that bride and groom.

#58 Frank on 03.22.16 at 6:30 pm

Yeah it’s way too spendy.

Still I love your snide class remarks. How wealthier people get less money to raise their kids, putting the word “equality” in quotations as if this isn’t fair. Yeah this is exactly what is unfair. There is a wealth gap caused by globalization. An interconnected world has allowed for goods and services to go to the lowest cost producer almost anywhere. This has been great for poor countries and wealthy Westerners who manage these enterprises. It has absolutely gutted Western middle class (while building one for China, India etc). So we could shore it up with silly protectionism and trade tariffs or we can accept the changing world and shift some of that wealth from the ones benefiting (hint the furniture producer owner that is able to save 40% by getting milling done in Mexico, not the mill worker). Disagree with it sure (we’re taking your money, I’d be mad too unless I was a new York millionaire who recognized the need for higher taxes on the wealthy) but counter with better proposals than sneers. Inequality is a fact. And it’s getting worse and causing enormous fall out. Come up with a solution or zip it.

#59 johnnny on 03.22.16 at 6:31 pm

#12 – 400 “close” family and friends.
Wow!!! how many facebook friends do you have?

#60 Your dentist, optometrist, veterinarian and chiropractor are called doctors on 03.22.16 at 6:34 pm

Blog Dogs, when Master Garth writes “doctors” he means your dentist, vet, optometrist, chiropractor, oral surgeon, orthodontist and, an ever dwindling number of medical doctors especially in Ontario

#61 Panhead on 03.22.16 at 6:34 pm

#25 hope & ruin on 03.22.16 at 5:20 pm
The big thing is child care. The Lib’s Canada Child Benefit increases kid spending by more than $2 billion, so Ottawa is now sending a whopping $22 billion a year to families.
____________________________________

great. I’m gonna knock-up my girlfriend. tonight should be fun. Any ideas on names? I want something liberal-inspired.

How bout … Just-in?

#62 calgaryPhantom on 03.22.16 at 6:41 pm

I love my wife and I feel that she is the greatest thing that has happened to me. Hence why we spent alot on a wedding.

——————————————————————

Dude. You love your wife, but you don’t love your hard earned money.
Spending 40k on wedding ( with a net work of less than 100k), is plain stupid and irresponsible.

#63 big nothin' burger on 03.22.16 at 6:50 pm

At least they can still pretend they have money to give away….

Where and when is the infrastructure spending going to happen? Are the projects even drawn up yet?

Are we importing resources from overseas to build in our own backyards? Like we’re importing Saudi oil?

Whenever I hear “infrastructure” spending bills, I know that several pockets are being greased. The real enablers of Justyn’s “sunny ways” just hit pay dirt.

#64 common sense on 03.22.16 at 6:51 pm

$40 K on a wedding..

A friend of my father’s had 3 daughters and offered $20K and a private ceremony or $21K for the wedding.

Guess what all 3 chose?

I’m doing the same with mine.

#65 Basil Fawlty on 03.22.16 at 6:52 pm

So, the Feds needs another $29B. Where does this money come from, bond sales?

#66 A Canadian Abroad on 03.22.16 at 6:54 pm

“Liberals: No plan to pay the debt back” “Revised GDP of 1.4 from 2.0%”

As an investor, I will be looking at investing more out of Canada and increasing my global balanced portfolio percentage. I won’t touch my core ATB203 portfolio though as you never know what may come.

#67 sounds familiar on 03.22.16 at 6:54 pm

http://www.businessinsider.com/this-stock-market-rally-cant-be-trusted-2016-3

Cometh another depressing report for millennials from conservative website Red Alert Politics:

Compared to the national average, you are poorer than most people of your age in the past.

The youngest millennials are the worst off. In 1979, the average American 20 to 24 years old had average incomes 10.1% below the national average. Today, it’s 31.5% below the average.

Not that we’re going to whine on behalf of the young. They’re doing their own whining at the ballot box. The youngest voters are going for the oldest candidate: democratic socialist Bernie Sanders.

#68 BG on 03.22.16 at 7:01 pm

I’m happy they didn’t touch the capital gains tax.

Now the small business taxes… I’m a attaboy anyway and pay every single dollar to myself as salary.
Don’t want to be in any kind of argument with the taxman.

#69 prairiegopher on 03.22.16 at 7:08 pm

The only word I have to describe this government is “Wreckless”. Smoke dope, pop out a kid with anyone and don’t save a nickel and you fit right in!

#70 common sense on 03.22.16 at 7:14 pm

#65 Basil

29 Billion? It’s only money.

Let’s all go out and spend like it’s never going to end…

For our economy of course.

#71 Daisy Mae on 03.22.16 at 7:19 pm

#58: “How wealthier people get less money to raise their kids, putting the word “equality” in quotations as if this isn’t fair….”

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

Harper catered to the wealthy, at the expense of the middle class and the poor. As a result “the rich got richer, the poorer got poorer”. This phrase was coined for good reason. So, how did that work out for Harper? He’s gone….and good riddance. Trudeau is now trying to level the playing field.

#72 Dups on 03.22.16 at 7:22 pm

Here comes the bogus spending. Someone in gov will be making money on this…

http://www.theglobeandmail.com/report-on-business/economy/housing/ottawa-vows-to-shed-light-on-foreign-home-buyers/article29336684/

#73 Freeman on 03.22.16 at 7:22 pm

Former Toronto Mayor Rob Ford Passes Away

https://www.youtube.com/watch?v=xBhLRx9aOXU

That should remind all of us that our time here on this rock is limited. Don’t live your life for just a house, life is too short for that.

#74 Dig Deep on 03.22.16 at 7:25 pm

If the income that is currently, (for the term of this government), being redistributed from rich to poor continues, it stands to reason that year-over-year there will be less income to do so. A Second World Nation we will be given our commitments to support programs we cannot afford. And debt we cannot service.

The job creators will do what they do best. Maximize profits in a suitable environment that is not Canada.

On a happier note, here in the nation’s capital where some of us are working on the new light rail project, it will be interesting to see the winks and nods of “I told you we were building a train to nowhere.” No sign of the next phase funds coming from the Feds.

Dig. Deep. We all have to.

#75 Damifino on 03.22.16 at 7:27 pm

#12 moh omar

You made all that up, right?

#76 #58 Frank has it right and Smoking Man give it a rest... on 03.22.16 at 7:28 pm

T2 got in because the middle class is angry about getting poorer and this is not limited to Canada (besides globalization also blame Corporate Board’s voting Officers a MUCH larger piece of the pie than justified).

T2 is delivering what the middle and lower class want and why he was elected with a large majority.

Read this Bloomberg Business article: “Why Voters Will Stay Angry” (and Bloomberg is not exactly a lefty outfit):

http://www.bloomberg.com/graphics/2016-angry-voters/

Just some facts for the well heeled Canadian elite after T2s budget…that includes you too Garth.

_______________________________________

And #20 Smoking Man, stop beating up on the Universities. With their help you might be able to string a few participles and pronouns together in the correct order.

Then with practice you might be able to move on to, heaven forbid, hyperbole without resorting to the usual ditch pig English you limit yourself to. And you want to write a book? Are you kidding me? Best get yourself a ghost writer if I were you.

People can be as angry as they want, but government will never equalize income. — Garth

#77 Smoking Man on 03.22.16 at 7:30 pm

#56 rjrt81 on 03.22.16 at 6:28 pm
Ding Dong the King is dead.

http://rabble.ca/blogs/bloggers/feminist-current
…………….

Just Rude, Megan is flaming man hating Phyco feminist. But shes entitled to her opinion. I read her column, I felt sorry for her, she will go no were in life with that mind set. Pitty she cute.

#78 Mark on 03.22.16 at 7:31 pm

Seems like Garth likes regressive taxation. Let’s see. An employee in Canada is probably educated by the public education system. His health secured by the public health system. Business enjoys public services such as
Roads police military regulators government services public utility infrastructure foreign trade all paid for by the public. All this is enjoyed disproportionately the bigger the private company. Natural resources which belong to all Canadians especially aboriginals are used. In Garth’s world, people who are high income earners do it in a vacuum without benefitting from employees and society around them. Pure propaganda. Helps financier class like Garth’s.

You forgot the part about me financing this blog and subjugating the Internet so you can get educated gratis and spout at will. I am not worthy. — Garth

#79 Daisy Mae on 03.22.16 at 7:32 pm

#21: “If anything, when high income people have kids, they face costs that are proportionately and significantly greater than when low-income families have kids.”

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

How so? Private schooling, and the like? Their prerogative.

#80 Western Republic on 03.22.16 at 7:33 pm

#14 TRUMPs Right

What we need is a wall along the Manitoba/Ontario border.

#81 Binder Dundat on 03.22.16 at 7:35 pm

“I love my wife and I feel that she is the greatest thing that has happened to me. Hence why we spent alot on a wedding.

Those 2 things aren’t correlated. Just an FYI”

Hilarious! Unfortunately, the amount of money spent on the engagement ring/wedding and it’s longevity are INVERSELY correlated:

http://www.npr.org/2015/01/08/375756298/want-your-marriage-to-last-start-with-a-huge-cheap-wedding

#82 Chaddywack on 03.22.16 at 7:39 pm

I’m 18-to-34 and I didn’t vote for hair boy.

#83 common sense on 03.22.16 at 7:40 pm

#78 Garth

Thanks…best laugh I’ve had this year.

#84 Metaxa on 03.22.16 at 7:43 pm

As most of the commentators retreat further into their psychological Faraday cages I’d like to share a story.

If you get it, great, if you don’t just know I spent less than $8,000 on my wedding 40+ years ago…

I was in the independent, owner operated restaurant game for 37 years. One day I was complaining to a supplier about how much money I was spending on til tape…the paper the POS system spits out.

He tactfully pointed out that it takes the same amount of paper to print a bill for $100 as it did on a $60 cheque.

Maybe, he opined, I should concentrate on increasing my cheque average, increasing each individual sale, rather than spending my time ranting against something like a paper increase that I had zero control over and zero ability to change.

I’m happy to be Canadian, happy to live in Canada…some of you need the same balance and diversification in your life you purport to have in your investment accounts.

Life is easier when you seek happiness, harder when you spend your time in a race to the bottom hurling vitriol at anyone who isn’t like you.

#85 M on 03.22.16 at 7:44 pm

#21 Mark

Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?

___________________________________

This little gem really should nudge you off another forum. A new low….

#86 David McKenna on 03.22.16 at 7:45 pm

You keep saying this won’t last, on what basis?

Because it’s been tried before and failed when we hit a debt wall? Or some other reason?

Any guess on if T2 gets a second term?

#87 Smoking Man on 03.22.16 at 7:46 pm

#76 #58 Frank has it right and Smoking Man give it a rest… on 03.22.16 at 7:28 pm
T2 got in because the middle class is angry about getting poorer and this is not limited to Canada (besides globalization also blame Corporate Board’s voting Officers a MUCH larger piece of the pie than justified).

T2 is delivering what the middle and lower class want and why he was elected with a large majority.

Read this Bloomberg Business article: “Why Voters Will Stay Angry” (and Bloomberg is not exactly a lefty outfit):

http://www.bloomberg.com/graphics/2016-angry-voters/

Just some facts for the well heeled Canadian elite after T2s budget…that includes you too Garth.

_______________________________________

And #20 Smoking Man, stop beating up on the Universities. With their help you might be able to string a few participles and pronouns together in the correct order.

Then with practice you might be able to move on to, heaven forbid, hyperbole without resorting to the usual ditch pig English you limit yourself to. And you want to write a book? Are you kidding me? Best get yourself a ghost writer if I were you.

People can be as angry as they want, but government will never equalize income. — Garth
……………..

No one in a Canadian University will split the atom. Of late , school here by design is all about crushing individualism, and rewarding appropriate communal behavior.

Wright Bros
Tesla

To name a few, I don’t include Einstein, Gravity waves my ass. It’s Ether, electric universe. I posted RIP Rob Ford at 11:03 UCC bitches. I knew before anyone.

Want a real education, it’s free on Google.

#88 rjrt81 on 03.22.16 at 7:48 pm

#77

The truth hurts smoking man. Death will not cleanse him of his sins. The reaper got it right with this one.

#89 Estrella on 03.22.16 at 7:48 pm

I watched the live feed of the blessed event and was thrilled to hear a lovely child in the peanut gallery cry out ” No,NOO, NOOoo”. Hillarious! Very smart child. Definitely not a millenial.

I also found the below article very interesting . Saputo is sending home some people so the can enjoy their enhanced I.E. benefits. 3 plants closing.

http://www.rightrelevance.com/search/articles/hero?article=f7052d1ae9dd9aac6f782ca710bc8396b2f1ef81&query=canada%20economy&taccount=canadaeconomyrr

#90 Linda on 03.22.16 at 7:51 pm

Regarding child tax benefits. 22 billion sounds like a lot, but there are as per StatsCan there are roughly 5.8 million children in Canada under the age of 15. Thus the 22 billion works out to roughly $3,793 per child. If you live in la belle province, whose average child care cost is $152 per month as per news reports you make out very well. Merci beaucoup. If however you live in Toronto, where the average monthly cost for childcare is over $1,650 (for an infant) per month that $3,793 won’t last long. Of course, if you are so fortunate as to have ‘free’ childcare from relatives then that sum will go a long way toward the future cost of education for said child if the parents put that sum aside in a RESP.

Why should the state pay entirely for daily child care? — Garth

#91 Smartalox on 03.22.16 at 7:54 pm

@Odious #41 and James #47:

It’s a long way from saying that previous governments’ efforts did not promote diversification of the economy, to demanding that the government be put in charge of the economy.

I have no interest in having the government dictate the economy – or even attempt to ‘pick the winners’.

But I do have a problem with government policy that encourages things like over-reliance on one sector of the economy (i.e.: oil) or that rewards homeowners with tax breaks for investing in their personal properties, and then calling it ‘infrastructure spending’ come campaign time.

There’s a role for government to play, when it comes to helping an economy realize its potential, where projects are of a scope and scale far greater than any one company or industry. Building the St. Lawrence seaway was a great example, opening the Golden Horseshoe to decades of productivity.

Bailing out the auto industry was a noble idea, perhaps more socialist than most, but to sell those shares for pennies on the dollar, and to not exercise an opportunity to parlay that ownership into more jobs and ancillary industries was just stupid.

I agree that most Canadians are averse to risk, and would rather over-invest in a sure thing, while bypassing anything with even moderate risk. The Banks and bankers are the worst offenders, in my opinion.

That should change: why not have an organization like CMHC for businesses? Instead, Canada gets ‘Dragons Den’, where rich people get paid to make poor venturers compete for their amusement, then make themselves out to be geniuses.

#92 understood by few on 03.22.16 at 8:03 pm

#71 Daisy Mae

Trudeau is now trying to level the playing field.

—————-

No, he’s pandering to the middle class. The tfsa and income split changes arent good for the middle and dont penalize the rich. But, hey, just shout they are for the rich and the stupid masses will believe you.

If he really was after the rich and helping the middle he would have gutted the rrsp instead of the tfsa. Rrsp benefits the wealthy way more than the tfsa. Rich have more room and can benefit a lot more from the tax deferral.

Increasing the marginal rate above 200k sounds good on paper, but someone that makes that can most likely make it look like 2x100k incomes, or less that 100k each and dividends or invest within the corp and pull it out at a more favourable time… Lots of options. The increase sounds great to the middle, but it isn’t effective. Trudeau doesn’t care. He just needs the middle to think he’s doing something without driving all the “rich” away (200k is not rich). It’s politics theatre hosted by a drama teacher.

The “big” tax break for the middle ($8/week) will not be covered by the increase on the rich, it’ll just be shouldered by a younger generation of the middle or by the same middle once t2 tries to balance the budget end of term. Pay for it now or pay for it later.

#93 TurnerNation on 03.22.16 at 8:03 pm

Cheese please. Almost a “bleu” chip stock w/divvy.

Saputo cutting costs by closing three Canadian plants that employ 230 workers
Ottawa Citizen – 6 hours ago
MONTREAL – Saputo says it will close three plants in Eastern Canada that employ some 230 workers in a move to cut costs and boost efficiency

#94 MF on 03.22.16 at 8:04 pm

#71 Daisy Mae on 03.22.16 at 7:19 pm

Lol what a joke your comment is and typical of Liberal voters. You forgot that Harper ruled the country for a decade and steered the country to safe waters while the rest of the world was collapsing. No mention of that though.

Trudeau was born on third and thinks he hit a triple. He is a wannabe JFK who depends on the media to lie to us and make us believe we like him. His policies are meant to pander to single moms, pot heads and the easily gullible. Like Garth said he plans on spending billions when it is questionable to do so.

I wish Harper was still here tbh.

MF

#95 Guy G on 03.22.16 at 8:06 pm

… And the budget will balance itself

#96 Drill Baby Drill on 03.22.16 at 8:06 pm

This budget did not mention
– increasing Canada’s competitiveness by investing in new technologies for the manufacturing sector
– zero on our energy policy (we are an energy producing nation)
– zero about our multi trillion cubic feet and climbing natural gas deposits which can be used for electrical generation
– zero on job training for our youth
– zero on national defence
The liberals are truly empty shells.

#97 nonplused on 03.22.16 at 8:16 pm

So, I am having a little trouble reconciling Garth’s “rule of 90” as most people are interpreting it or at least how I interpret what they are saying, with the NPV or NPW (net present worth) calculation.

So ya easy part is “take 90 and deduct your age, that’s what you should have invested in your house”.

So then if I am 45 I can have $100k in equity and $100k in “a balanced portfolio”, and a $350k mortgage.

But then the net worth calculation becomes very difficult because the net worth here really relies on the house being “liquid” at $450k. If the house isn’t “liquid” at $450k after paying real estate fees and transfer taxes, I’m really over invested in housing.

Borrowing more to invest doesn’t help because in the Net Present Worth calculation the additional investments are offset by the additional borrowing.

So I think the way to look at it is only realizable equity in the house (after all the fees to sell and at a price it might move) can be included as an asset. Thus, for many people, the actual value of their house to them is pretty much zero. So you can have as big of a house as you want with the attendant mortgage as long as you have more stocks than RE equity. The 90 minus rule only explains the ratio.

To me it makes more sense if there is no mortgage, but people don’t pay off their houses anymore even going into retirement. Or if they do, they then proceed upon retirement to take a “reverse mortgage” and literally “sell the farm”.

So to me we need to fix Garth’s formula or maybe this is what he meant all the time:

Realistic selling price – RE fees – Transfer taxes – Mortgage = Real Equity.

90 – Age applies to Real Equity. If that number is negative, throw everything at the mortgage until it’s positive, and then use that number in the 90 minus rule.

#98 nonplused on 03.22.16 at 8:17 pm

I meant “under invested in housing”. To bad you can’t edit posts.

#99 Hooray on 03.22.16 at 8:21 pm

Who is going to buy the 30 bill of cdn bonds to cover the trudeaumania? If they don’t sell would they be forced to raise the yeald or to fire people? Gouvernment should sell mor land and housing will become affordable, people will spend noneyz in local economy maybe and the wheels will start spinning.
Nope lets spend our kids future! Idiot ex bouncer and ski instructor

#100 Smoking Man on 03.22.16 at 8:21 pm

A young trump

https://youtu.be/qmClYIQqEn8

#101 salonist on 03.22.16 at 8:23 pm

henny penny
didn’t know chickens had lips

sm

bar on the lakeshore

https://www.youtube.com/watch?v=ldQrapQ4d0Y

#102 nonplused on 03.22.16 at 8:26 pm

Oh and then a further comment for young people, if your real equity is going to be negative, well all your extra money should go to the mortgage or you should rent. Something Garth has generally been supportive of for people don’t have much of a down payment.

Think about it. If you buy a house with 5% down, most of which goes to CMHC, and then get a great job in California defending Apple from the FBI and have to move, you don’t have enough equity to cover just the RE fees let alone a land transfer tax.

#103 Drill Baby Drill on 03.22.16 at 8:26 pm

#94 MF
Amen to what you said. It is amazing how dumb the vast majority of the electorate really is. Here we are depending on a PM who has never had to work other than be a bouncer at a girl guide convention or a high school drama class. By the why Morneau obviously was taking lessons after seeing his pre budget speech today. What a joke !!!

#104 Rational Optimist on 03.22.16 at 8:27 pm

A few people pointed out to Shawn that he was in error for thinking that one Dutch-speaking city was in the same country as another (part) Dutch-speaking city. Some did it gently, understanding that the error didn’t detract from his point- live life, business as usual, don’t let these maniacs scare us. Some took glee in pointing out a simple error.

I actually don’t think he was in error. They are the same country. I have a trip planned to Budapest and Vienna in a while, which are also in the same country as Brussels- that country being Europe. The capital was attacked by barbarians. One of the immediate responses was to strengthen the borders, which makes sense- but they should be strengthening Europe’s borders not Belgium’s.

#105 Drill Baby Drill on 03.22.16 at 8:28 pm

I have had too much to drink tonight after this budget speech I am not typing legibly so I will sign off.

I’ll alert the media. — Garth

#106 Smoking Man on 03.22.16 at 8:29 pm

#88 rjrt81 on 03.22.16 at 7:48 pm
#77

The truth hurts smoking man. Death will not cleanse him of his sins. The reaper got it right with this one.
….

Got a sister inlaw who shares the same attitude as you.

She been miserable her intire life. 3 failed marriages and two live in dudes who left in the middle of the night

She will die allown and bitter. If Robs funreal is open to the public you will never see a crowd that big as long as you live.

Like my sister inlaw you have so much hate in your heart that you could never see the love in Robs.

I’m sorry for you.

#107 learningfromyou on 03.22.16 at 8:35 pm

Thank Garth for this post

>Why should the state pay entirely for daily child care? — >Garth

I agree with you on it, but also another question is raised.
Why the government doesn’t control the price of this service in the same way that we buy milk with a controlled price everywhere?.

As a parent of a child I feel the pain for these prices, around 40 dollars per day.

I do not want to include here the disappointments for the services received at these prices, the kids are income sources for some of these places, sometimes more than human beings.
They are polite while talking to you, but watch the kids reactions while bringing and picking them up

#108 Wet n Wild on 03.22.16 at 8:37 pm

If anyone at the dept of finance or elsewhere in the government defines themselves or act like conservatives, with either upper or lowercase c, they need to be purged immediately and unceremoniously. If they are such conservatives let them make money in the private sector they love so much, instead of sabotaging government activities from the inside out. I hope the government cleans house of obstructionists.

I’m ok with the budget but I would have liked to see more tax crackdown sooner instead of taking a year to study how to do it, which is what it says in the bydget under the heading ‘making the system more fair”.

Garth won’t like it but aggressive tax planning should be dealt with same as evasion, through a combination of tax policy updates and merciless enforcement. Enough is enough. They Gordon Gekko class is sinking our economy and this is the last chance to come up for air before they cause another financial catastrophe. We just can’t afford another one.

#109 Dave on 03.22.16 at 8:46 pm

To help figure this country out, get the game “Settlers of Catanada” : https://www.youtube.com/watch?v=FYnfRfhgRV8

#110 Keith on 03.22.16 at 8:47 pm

Fun reading the T2 haters on this blog. Trudeau is not the intellectual heavyweight his father was, but underestimating him and the team around him is the mistake that where is he now Harper and third party status Mulcair made. I will make a not so bold prediction.

The deficit will come in under projection. The Liberals are savvy enough to build in plenty of wriggle room, and barring serious recession the deficit will be lower than projected, because the first one comes for free. Chretien came in with a deficit at 40 bill, and immediately reforecast it at 45. Same Liberal game, overestimate expenditure and underestimate revenues.

More money for ordinary Canadians – hasn’t been done for over thirty years, worth a try. Any wealthy Canadians packing up and leaving? We’ll see if the threat becomes real for a few grand a year after tax consultation.

#111 Mixed Bag on 03.22.16 at 8:49 pm

#88 rjrt81 on 03.22.16 at 7:48 pm

What is wrong with you.

#112 observer on 03.22.16 at 8:55 pm

Just how the heck are they going to raise that kind of cash without killing the dollar

#113 don on 03.22.16 at 8:55 pm

Frank #56 The reason we are not competitive is because of previous credit expansion and what it does to asset values. It has made it very expensive to operate in this country. If should be noted that since China has also embarked on a massive credit binge particularly since 2008, they are beginning to lose production to even poorer countries. to make the world a better and fairer place I believe credit should only come from other peoples savings. By doing this we have destroyed the true process of capital formation.

#114 Ret on 03.22.16 at 8:56 pm

#21 Right on! Do a 180 degree spin on whatever the government wants and we all will come out winners.

“Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?” Absolutely, along with buying more gas guzzling 5.0l Mustangs and huge SUV’s.

Think how much better it would be if rich people were given tax breaks to move into poorer neighbourhoods and send their kids to those schools. Yes, give rich people more tax money.

Adding more poor people to poor neighborhoods just guarantees the sad status quo or worse for those living and sending their kids to schools there.

Well off people would raise the bar for city services, schools, police enforcement and enforcement of by-laws and municipal standards for rental buildings and landlords in the area. This would really help poor people to move out of survival mode and to focus on building better lives for themselves and their families.

Encourage gas guzzlers. Build more roads. Give people an incentive when they buy a new vehicle to go large and powerful. They will pay huge gas taxes to drive to work. This is good isn’t it?

Public transit is heavily subsidized. Why keep building more of what riders refuse to pay full price for? Not smart.

Instead we hear, let’s sell weed to get more tax money. I’d rather that my neighbours bought Shelby Mustangs to fill those government coffers. (I’ll keep my Kia, thanks.)

Hamiltonians rapidly escalating water/sewage rates forced everyone to conserve. Stewpit Hamiltonians drank the kool-aid dished out by their political masters and dramatically cut usage.

Then the whining started at Council about about lost revenue from water and sewage taxes which forced the city to raise those rates even more. Now we all pay lots more for lots less. This is so typical of what happens when governments set out to help people.

#115 Smoking Man on 03.22.16 at 8:58 pm

Turner Nation

Got the stock play of the year. Let track the green companies T2 invests in, then short the shit out of them.

If anyone knows how to pick losers, it’s the government.

#116 rjrt81 on 03.22.16 at 9:00 pm

#107

Hahaha! Once again smoking man you know nothing and make stupid sweeping generalized statements. Currently in Tokyo with my wife and three great friends enjoying life and living it to the fullest! All while holding socialist and excelling at life. Rob Ford was a misogynist and bully of a man. He disrespected his wife openly in public and lied continuously. I bet your to much of a coward to speak your bs in public. And revere the likes of Ford doing it for you.

#117 Unhinged Loon on 03.22.16 at 9:00 pm

Zeeman, here here.

The Trump Train has no breaks. While America is building wealth and making it favourable to manufacture locally, Canada will be soaking up Muslims to appease the Liberal leadership, suffering a collective menstrual brain fog.

Garth has omitted the best invested for a Canadian right now: trying to obtain American citizenship.

MAGA

#118 sunders on 03.22.16 at 9:03 pm

This budget makes my stomach hurt. I wonder, can I deduct the cost of Tums on my next return? Spouse and I each have advanced degrees that we funded ourselves, good jobs and kiddos followed, and now we’re getting fleeced. No childcare benefit, elimination of child fitness credits, maybe a higher tax bracket. What is the benefit for trying hard to get out of the middle class? Doesn’t matter to me now that the TFSA has been reduced since I’ll have less take-home pay to put into it.

#119 Love my Kia on 03.22.16 at 9:07 pm

#87 Smoking Man
‘education free on Google’
**************
Any idiot can spew out garbage on Google, its junk food for the mind.

#120 Smoking Man on 03.22.16 at 9:09 pm

#116 rjrt81 on 03.22.16 at 9:00 pm
#107

Hahaha! Once again smoking man you know nothing and make stupid sweeping generalized statements. Currently in Tokyo with my wife and three great friends enjoying life and living it to the fullest! All while holding socialist and excelling at life. Rob Ford was a misogynist and bully of a man. He disrespected his wife openly in public and lied continuously. I bet your to much of a coward to speak your bs in public. And revere the likes of Ford doing it for you.
….

Your a chic and a liar, Even the most feminized men don’t type like you. Come to Fords Funeral, I’ll speak to you there.

#121 Smoking Man on 03.22.16 at 9:13 pm

#116 rjrt81 on 03.22.16 at 9:00 pm

Lets take this Off line #SmokingMan on twitter, getting into the 18 year old scotch, makes me real nasty.

Come get me toots.

#122 Linda on 03.22.16 at 9:16 pm

Garth, I never said the state ‘should’ pay for childcare. I merely pointed out that the sum per child isn’t that large – & depending on where you live, doesn’t cover the full cost of care.

Should taxpayer dollars be used in such a manner? I guess it depends on whether you believe the investment will ultimately prove beneficial to how our society functions or not. At last look, governments seem to believe it is worth spending tax dollars to encourage their citizens to have enough children to provide replacements. It is difficult to tax someone who doesn’t exist & declining populations make getting enough revenue to provide services difficult. If you tax too much, people will either evade or leave (Greece, anyone?). Though you’d think that a declining population should mean the cost to provide services would be less as well.

So people will stop having children if the government stops subsidizing them to do so? Seems to be you logic. — Garth

#123 Izzo on 03.22.16 at 9:21 pm

#14 Trump is right

Pray for Belgium…..Pray for Canada….
We need Donald Trump……..
Build a wall…..kick them out !!!!
**************************

Who are we kicking out? Did somebody in Canada do something? Where are we kicking THEY too.
And how is Donald Trump going to help Canadians?

Why are we praying for Canada? Who am i supposed to pray to? Your god or my god lol

While your mind explodes with logic i’ll just continue laughing at the sheer ignorance of people.

#124 WallOfWorry on 03.22.16 at 9:22 pm

If the US persists in raising rates twice more this year (which it won’t) the US dollar will strengthen and lower CAD will be good for manufacturing and other service based industries (near shoring) which is good for Canadian economy. The reality is that Canadian government debt is amongst the best of the G7 and certainly better than the US. If as Garth suggests the global economy is growing then that is also good for our resource based industries. Ontario currently has a GDP growth rate better than the US…so perhaps some perspective is necessary here. The reality however is corporate earnings are declining, creating stress in corporate finance, and potentially a tipping point in solvencies. Our deficit only becomes problematic if the global economy is not growing and in fact is near recession.

#125 Mark on 03.22.16 at 9:22 pm

“Who is going to buy the 30 bill of cdn bonds to cover the trudeaumania? “

The same people who bought the ~$26B per year of net GoC bond issuance when Harper was in power.

Although its a terrible budget, I wouldn’t worry too much about the financing aspect of it if they can actually stick to the claimed deficit. The problem is, can they really “only” stick to $29.4B? For that, I have my doubts. As a commentator noted this afternoon, there was no increase implied in their ‘plan’ for the public sector for a considerable period into the future, and it does seem rather unlikely that that they could stick to that state of (relative) austerity.

#126 Apocalypse2016 on 03.22.16 at 9:22 pm

Trudeau may look like a genius for going into debt, compared to the catastrophe the USA is heading into. (But that will also swallow Canada soon enough)

http://money.cnn.com/2016/03/22/retirement/retirement-savings/

1 in 4 Americans has barely $1000 saved for retirement, and 41% have less than $10,000.

Holy crap!!

This economy is disabled, not recovering, and it is limping towards mega, mega problems very soon.

Only Trump and war will delay any of that.

U.S. social security payments are about double what the CPP averages. — Garth

#127 Brazil ex-pat on 03.22.16 at 9:23 pm

Ah….the many many reasons I left Canada.

So how many public sector jobs were lost today? Zero. Nope….let’s tax and spend our great grand children into the stone age. Good luck everyone in Canada !!

#128 spring time on 03.22.16 at 9:26 pm

What a bunch of bitter whining old men, with dogs and their investment account in the center of their universe.

Take a deep breath, get some sunshine. You will survive. Maybe.

#129 rjrt81 on 03.22.16 at 9:26 pm

#121

A Twitter fight. Good on that. I think I’ll enjoy the views of Mt.Fuji on the Odakyu Express on my way to Hakone and relax in an Onsen. Have fun in moms basement crying yourself to sleep.

#130 discombobulated on 03.22.16 at 9:28 pm

So, basically, T2 told his voters they are totally unmotivated, unskilled or downright lazy to work to earn higher income or T2 accepted that in is reign there is no chance in hell for anybody to work hard and end up in higher income bracket or save enough to justify $10k TFSA allowance. Wow. And people voted him in. This is possibly the first time ever in any democracy a leader got elected by telling people “hey poor guys, you are going to stay very poor when I rule you, so you don’t need tax free savings anyway”.

#131 Smoking Man on 03.22.16 at 9:28 pm

DELETED

#132 bsallergy on 03.22.16 at 9:30 pm

The Tsquared government is the less honest version of the self servatives talk like you’re left then feather the beds of rich friends.

I hated the more oafish pronouncements of the previous grovelment, niqabs and the rest. But sunny ways from dark orifices are scarier.

Only wish it was easier to expatriate.

#133 Judas was a materialist thief too on 03.22.16 at 9:36 pm

Equality is unjust.

Making us more equal by tax policy is the same as stealing.

#134 Observer on 03.22.16 at 9:36 pm

The Hitler/Trump photo on the last post is looking rather cheap and shallow in the light of today’s events in Belgium. A lot of egg on faces today.

Hardly. Besides, cheap and shallow is a real accomplishment on this blog. — Garth

#135 Julie K. on 03.22.16 at 9:44 pm

#64 Common Sense ~

My plan is to throw an expensive shin-dig when my daughter & her spouse successfully reach the Silver Wedding Anniversary milestone — and only then.

Years ago, asked myself why anyone, parents included, would choose to spend/waste $$$ on a wedding (equal to a small “investment” ) which, statistically, has a 50/50 chance of resulting in any ROI?

Well known, if not accepted, in my family that a big, celebratory party will happen when we all agree the marriage worked out. Thinking minimum 25 years — but not a moment before. Ok, maybe 20 years. Not saying long-term marriages don’t dissolve — they do. Just saying, we might have the timing of a traditional wedding ass backwards.

My own nuptials cost $2K in the early 80’s (live band, roast beef dinner w/all the fixin’s & an open bar, etc)……we recently celebrated 35 yrs. I routinely joke w/my own parents about the “deal” they got “getting me out of the house & keeping me out”…..

Peace.

PS: Putting things into perspective, thoughts to Brussels & The Ford Fam today.

#136 Bail-In Legislation on 03.22.16 at 9:50 pm

http://www.zerohedge.com/news/2016-03-22/its-official-canadian-bank-depositors-are-now-risk-bail-ins

Are we gonna get looted?

More uninformed crap from the zero guy. — Garth

#137 Get Lost!!! on 03.22.16 at 9:58 pm

Rjrt81 why don’t you get lost if you have nothing good to say don’t say nothing! Who cares about your opinion, Rob Ford was Awesome, he will definitely be missed!!!

#138 Marco Polo on 03.22.16 at 9:58 pm

I do like to read forum posters comment about how we “relied” too heavily on oil exports, like we were some kind of command economy. This has been the whole raison d’etre of this new government, that we can “do more”, and magically pull some levers to make everything better as Justin applies his hairspray…

Truth is, Garth has been correct in his long held views, that Canadians should be far more carefully personally, and not put all their net worth into a home, ot other asset.

There are much wider worldwide geopolitical and economic shifts happening, that T2 can’t control. He’s much like Jack, in the movie Titanic, being king of the world at the front of the ship.

You all know what comes next, and those are cold seas..

#139 Gregor Samsa on 03.22.16 at 10:03 pm

>Who is going to buy the 30 bill of cdn bonds to cover the trudeaumania?

That’s easy: we buy it ourselves via QE (followed by bail-ins, if necessary)
(http://www.zerohedge.com/news/2016-03-22/its-official-canadian-bank-depositors-are-now-risk-bail-ins)

Although he’s still marginally better than Harper, it’s increasingly obvious that Trudeau is just another corporate puppet at the end of the day. We’ve simply traded Harper’s pet deficit spending (war, prisons, and tax cuts for the marginally rich) for Trudeau’s pet deficit spending (refugees, child benefits, and tax hikes for the marginally rich). Sure, it’s a bit “sunnier,” but it doesn’t change any real facts on the ground.

No bail-in. Ever. — Garth

#140 ROCK BEATS PAPER on 03.22.16 at 10:06 pm

#43 MacroDave on 03.22.16 at 6:00 pm

Garth, doesn’t today’s article precisely highlight why interest can’t go up? All those expenses you mentioned are rounding errors compared to the increased servicing cost if interest rates are increased. You can hit me with a one-liner but a blog about that would be preferred. :)
_____________________________________________

The market sets the rate not the government. So it not only can, but will go up because we are at multi decade extremes. Could take a few years… But when the market rejects the bonds at low rates the government can monetize the debt, like Japan is currently doing. So the currency gets thrown under the bus. That is a huge and massively regressive tax which the millennials will be forced by the market and profligate governments to pay.

At the beginning of the Clinton administration in the early 1990s, adviser James Carville was stunned at the power the bond market had over the government. If he came back, Carville said, “I used to think if there was reincarnation, I wanted to come back as the president or the pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everybody.”

#141 joe on 03.22.16 at 10:09 pm

I am deeply sadden by Rob Ford’s passing. All political differences aside. he reminds us how fragile and short life is and all we worry about is houses and rate of returns. I can’t believe it, it seems like yesterday he was ranting in Jamaican accent and now gone.

#142 WalMark of Sadkatoon on 03.22.16 at 10:13 pm

#116 rjrt81 on 03.22.16 at 9:00 pm

if u have to tell ppl how happy u are, yor not

just sayin

#143 Millmech on 03.22.16 at 10:14 pm

#71 Daisy May
I was raised to believe if you want to level your playing field you get educated,work harder and smarter and by effort and ambition you rose to another level(was always told to get a PHD-have Purpose,Hunger and Drive)
Apparently now you are rewarded for little ambition and drive,the government will level the playing field of life for you by taking away from people who have that PHD,we are becoming a third world country because of this ideology.
What ever happened to the pride of being self sufficient!

#144 WalMark of Sadkatoon on 03.22.16 at 10:15 pm

Trudeau is now trying to level the playing field.

he’s not.

the rich always win.

always

and he’s one of us

just sayin

#145 WalMark of Sadkatoon on 03.22.16 at 10:17 pm

Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?

I’m just glad mark isn’t breeding

thank gawd

#146 Prairieboy43 on 03.22.16 at 10:17 pm

Fiscal responsibility does not exist. So what is a solution to a few problems. Volunteerism = Tax Credit.
Volunteer Hockey Coach = Tax Credit.
Volunteer Ski Coach = Tax Credit.
Volunteer Teacher = Tax Credit.
Volunteer Nurse = Tax Credit.

#147 acdel on 03.22.16 at 10:20 pm

Income splitting was unfair to a majority who pay taxes. You want kids then pay for it like all your predecessors, it’s your choice to have them, I made mine and paid for it.

GST reduction was the largest mistake, actually income trust reversal I will never forgive, both bonehead mistakes.

Hey, it’s a regressive left budget, enjoy paying for the few, never mind that, what future does a child have born today? Sad!

#148 ronh on 03.22.16 at 10:22 pm

Command P – deficit fixed.

#149 Ronaldo on 03.22.16 at 10:27 pm

#26 Matt on 03.22.16 at 5:20 pm

”What are corporate class mutual funds? Are those the mutual funds you buy through a bank, such as the TD Balanced Portfolio or e-Series mutual funds?”

Matt, this should help explain them for you.

https://www.phn.com/Default.aspx?tabid=1368

#150 Vancouverite on 03.22.16 at 10:29 pm

“Post-secondary students will notice a change on their tax forms: tax credits for textbooks and the Education Tax Credit will be eliminated by 2017”

http://globalnews.ca/news/2594044/federal-budget-2016-trudeau-eliminates-harper-era-tax-credits/

Perhaps small dollars, but I don’t agree with this one. Students paying high tuition can’t like the elimination of this tax credit

#151 Smoking Man on 03.22.16 at 10:34 pm

#136 Get Lost!!! on 03.22.16 at 9:58 pm
Rjrt81 why don’t you get lost if you have nothing good to say don’t say nothing! Who cares about your opinion, Rob Ford was Awesome, he will definitely be missed!!!

I’m a whore? nothing much makes me cry. I cryed today
Last time was in October 2014 my nefew. Mom died the day he was barried. Didn’t feel that one. She was 92 and relived of pain.

#152 genbizx on 03.22.16 at 10:34 pm

#40 millennial realist

ahh millennials…always so ready with a smart-arse comment hiding in mom n dads basement…pontificating and offending while safe behind a computer screen…

#153 Aggregator on 03.22.16 at 10:36 pm

For those who want the short version of the budget, it's stamped on the front page with invisible red ink saying CURRENCY DEVALUATION APPROVED.

There wasn't much choice. Being the first and only developed country to pass a fiscal spending budget since the G20 global stimulus of 2009, the effect of stimulating oneself will be dismal, that is, for every $100 T2 spends (borrows), he'll be lucky if he gets $1 of nominal GDP, or 0.25 cents of real GDP.

If this budget has any chance of spurring growth the loonie will need to drop to 50 cents USD, and sustain that level for a few years. CAD/USD That's where the BoC steps in with its own QE program to buy Government Bonds, Canada Mortgage Bonds or Mortgage Backed Securities.

The budget is chiseled in stone. Dump your loonies while you can.

P.S. That bail-in legislation will raise the cost of capital for Canadian banks, as it did for EU banks with the passage of The Bank Recovery and Resolution Directive (EU bail-in).

#154 Joseph on 03.22.16 at 10:37 pm

#76 #58 Frank has it right and Smoking Man give it a rest… on 03.22.16 at 7:28 pm

T2 got in because the middle class is angry about getting poorer and this is not limited to Canada (besides globalization also blame Corporate Board’s voting Officers a MUCH larger piece of the pie than justified).
———————-
I’d like to hear more – sure beats some peoples constant craving for attention here to mask their insecurities.

#155 WalMark of Sadkatoon on 03.22.16 at 10:37 pm

Mark, of all the things I’ve heard you say…..really?

WalMark is a socially-challenged unemployed person with 2 tech degrees and can’t find work in a booming industry

should tell u enuff

low bar life skills

#156 It's closing time on 03.22.16 at 10:43 pm

#125 Smoking Man on 03.22.16 at 9:28 pm

DELETED
———–
3-2-1 kiss the dirt yet again.

Listen to me, Butterfly, there’s only so much wine
You can drink in one life
But it will never be enough
To save you from the bottom of your glass

#157 Smoking Man on 03.22.16 at 10:46 pm

#137 Get Lost!!! on 03.22.16 at 9:58 pm
Rjrt81 why don’t you get lost if you have nothing good to say don’t say nothing! Who cares about your opinion, Rob Ford was Awesome, he will definitely be missed!!!

let her talk. My delete above, two words , made it to my book.

thanks gar tho.

The first one. cant say it here, The second one. Aggrestion.

Fk im ggod

#158 BS on 03.22.16 at 10:49 pm

Daisy Mae on 03.22.16 at 7:19 pm
#58: “How wealthier people get less money to raise their kids, putting the word “equality” in quotations as if this isn’t fair….”

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

Harper catered to the wealthy, at the expense of the middle class and the poor. As a result “the rich got richer, the poorer got poorer”. This phrase was coined for good reason. So, how did that work out for Harper? He’s gone….and good riddance. Trudeau is now trying to level the playing field.

That is what communism was supposed to do. How did that work out?

Wasn’t Obama supposed to do the same thing in the US? How have the poor done under Obama after 8 years? How have the rich done?

Under T2 the rich will still get richer and the poor will get poorer. Just more rich will get richer somewhere else and there will be more middle class people becoming poor in Canada when the jobs disappear.

Socialism only works on paper (and at elections). In the real world it has failed every time.

#159 acdel on 03.22.16 at 10:51 pm

WalMark of Sadkatoon

Seriously, what ever issues you have between Mark and yourself is that, it’s between you and him!

Mark has had many very interesting post such as yourself as well as not so great; hell, I will include myself in that.

We are all dawgs expressing ideas because Garth allows us to; if the guy is out of work, think of all the people who are and needs a break, frustrations (I am one to talk), leads to more!

#160 hope & ruin on 03.22.16 at 10:57 pm

#145 WalMark of Sadkatoon on 03.22.16 at 10:17 pm

I’m just glad mark isn’t breeding
___________________________________

lol. Mark’s eugenics would be “inversely correlated” to his own reproductive success. (i.e. unemployed/poor)

but seriously. I would love to hear Mark actually defend his view. don’t try though. it would be no fun if you were blocked.

#161 Smoking Man on 03.22.16 at 11:06 pm

My sons poem to Ford one of his songs

find him here, did something right as a dad.

https://www.youtube.com/watch?v=NmtGuh53Dvc

Ode to Robby,
Sometimes…

Sometimes those who are the most broken,
Are the ones who most want to glue things for others back together.

Sometimes those who look down upon no one.
Are looked down upon the most.

Sometimes those who follow their hearts,
Are mocked for never following their reason.

Sometimes those who only take chances.
Want to create the most opportunity for others.

And sometimes those with the most tears.
Are truly threatened by their biggest fears.

And sometimes those surrounded by emptiness.
Fill us with truth, love and compassion

Goodbye my friend, thank you for
My inspiration, valor and my tenacity….
………..
I did it right sm

#162 Mark on 03.22.16 at 11:10 pm

“U.S. social security payments are about double what the CPP averages. — Garth”

But “social security” in the US is a sort of combination of OAS and CPP. So the more appropriate comparison is against that of the combination in Canada. In which case, the Canadian system isn’t that meaningfully different.

“That should change: why not have an organization like CMHC for businesses?”

Extra stimulation, over the long term, destroys the returns from the sector that is stimulated. A CMHC for business would be an economic disaster. Sure, in the short term, it might feel good for business owners. Being able to sell their businesses for top dollar. But an excess of government stimulated investment is the kiss of death for sector returns.

Landlords, especially, who rely upon the income from RE, should be outraged that the CMHC has basically spent the past 15 years heavily subsidizing their competition through below-long-term cost loan guarantees. Smart landlords are selling and walking away from the sector altogether.

I’m just glad mark isn’t breeding

Could you possibly be any more rude and/or ill? This is one of the more disgusting things I’ve heard out of you in a while (aside from your constant barrage of lies). Shame on you!

#163 Prairie Oysters for All on 03.22.16 at 11:12 pm

Ford was a crazy guy no doubt but alas our time is short in a very crazy world.

From the master:

O gather up the brokenness
And bring it to me now
The fragrance of those promises
You never dared to vow

The splinters that you carry
The cross you left behind
Come healing of the body
Come healing of the mind

And let the heavens hear it
The penitential hymn
Come healing of the spirit
Come healing of the limb

Behold the gates of mercy
In arbitrary space
And none of us deserving
The cruelty or the grace

O solitude of longing
Where love has been confined
Come healing of the body
Come healing of the mind

O see the darkness yielding
That tore the light apart
Come healing of the reason
Come healing of the heart

O troubled dust concealing
An undivided love
The Heart beneath is teaching
To the broken Heart above

O let the heavens falter
And let the earth proclaim:
Come healing of the Altar
Come healing of the Name

O longing of the branches
To lift the little bud
O longing of the arteries
To purify the blood

And let the heavens hear it
The penitential hymn
Come healing of the spirit
Come healing of the limb

O let the heavens hear it
The penitential hymn
Come healing of the spirit
Come healing of the limb

#164 TurnerNation on 03.22.16 at 11:13 pm

I’ve never seen so many homeless people camped out with sleeping bags on Bay St. Near King St. tonight and on Saturday night.

Must they be so close as to rub it in – that stooges like us paid large for an obedience cert and dress up in business garb to share s_ht eating grins back slapping and glad-handing with our corporate masters and vapid coworkers all to pay for over priced and skimpily-served pints at a chain restaurant with name ends in ‘S? Living by our alarm clocks and BlackBerrys and fear of right sizing?

One fellow in front of National Club appears to have a large pet rat trained to come with him.

As Garth (Brooks) sang…I got friends in Low places where the whiskey flows and the …Oasis of love. ..etc.

#165 TurnerNation on 03.22.16 at 11:17 pm

SM I know not any Green stocks in Canada.
I won’t touch small caps anyway. It must have options listed. For hedging or leverage.

#166 MF on 03.22.16 at 11:18 pm

#128 spring time on 03.22.16 at 9:26 pm

“What a bunch of bitter whining old men, with dogs and their investment account in the center of their universe.

Take a deep breath, get some sunshine. You will survive. Maybe.”

I’m 32. Definitely not “old” yet.

Lots of us older millennials out there who are smart enough to realize this PM is a tool. That generalization that only older folks dislike the PM is false.

It basically comes down to attitude and success in life.

A) Comes from a good family. Hard working and fairly successful. Educated and well versed in world events/economics = Realize T2 is a joke

B) Broken family, pot head, lazy, likes to blame others, gullible, head in the sand = Voted T2

That’s how my cohort broken down so everyone knows and we can stop generalizing.

MF

#167 Smoking Man on 03.22.16 at 11:42 pm

More of my kids shit

https://youtu.be/R3iX0SUQpPg

Creativity is the orgasum of life. Nothing matters

#168 conan on 03.22.16 at 11:45 pm

I expect the Liberals to win the next election as well. Not sure the Conservatives have any chance at all with any of the old guard still in place.

The NDP seem to be imploding and they are going to have a hard time regaining votes that decided to go Liberal.

Prediction: Potential Liberal dynasty 20 plus years

#169 Smoking Man on 03.22.16 at 11:53 pm

The reson I dident intervin I wanted him to Mary lesbian

For his music , hard finding insparation.

Love artist

https://youtu.be/R3iX0SUQpPg

Shit nectonite dads do for hybrids

#170 MikeinYYC on 03.22.16 at 11:59 pm

Yay, free money for poor people with kids. I don’t get it. If the intent of this social engineering project was to encourage broke people to procreate, nice work. Harper’s income splitting only encouraged rich to procreate. However, if we need more new people of all socio-economic backgrounds to fuel growth, why not extend child tax credits to everyone? If we don’t need credits to do so, extend them to no one.

I really hope the conservatives get a new, likeable leader. I hear there is a TFSA pioneer dude desperately writing a blog that could run.

That femme-Harper Ambrose is awful. A lot of my normally conservative colleagues voted Trudeau out of protest, and I don’t think she is convincing anyone to come back.

But my personal favourite ~675 mil more from T2 for CBC to produce more sheer crap like arctic air. why? Does anyone watch any of that garbage?

#171 Debtfree on 03.23.16 at 12:00 am

Haven’t read the comment section in a long time . I remember why now . Except . ” Hardly. Besides, cheap and shallow is a real accomplishment on this blog. — Garth .
Priceless . A thing of beauty in the view of a guy striving for mediocrity . Me I mean . Thanks .

#172 craig on 03.23.16 at 12:05 am

#12 moh Amar… 40k on a wedding and you are happy?… so you have saved.. that makes you a rarity, however you spent an insane amount of money on one day… that makes you a special kind of something else that starts with an S… I’d pay to see garth tear you apart on here… as for our budget… middle class and small business didn’t win once again.. Guess I better get a government or union job

#173 Burt on 03.23.16 at 12:13 am

Garth:

“They see income inequality as a social crime and feel just fine about penalizing success.”

That suggests its not a crime, or that its odd to consider it as one. The inequality today is not only a crime, but arguably the greatest crime committed against the people.

Anyone who tries to chastise the government for running red ink for the people must first willfully ignore the fact its not the general population that enjoys the most welfare at the hands of government.

History lessons pay. The iPads are keeping them preoccupied, but once the serfs wake up, the inequality, and with it the “nobility”, will be thrown out the door faster than the last time around.

#174 Philburt on 03.23.16 at 12:17 am

T2 is a God dang fool.
Did you hear him on his carbon tax speech just a bit ago…
PATHETIC double talk that sad nothing. Embarrassingly hilarious.
Bureaucratic money blowing on carbon BS that amounts too nothing but screwing the middle class.
Head over to China, India, Philippines and take a whiff of their air!!!!!!!!!!!!!! We are the only ones that can still breath….
accept….Roam (Canuckle head land) is burning along with T2s smelly diaper…
This guy belongs in a play pen.

#175 macroman on 03.23.16 at 12:34 am

#12 omar, was freedom first on the guest list?

#176 Coach Patches O'Hollihan on 03.23.16 at 12:44 am

#146 Prairieboy43

Volunteered for at least for at least 2 of those things and now multiple seasons, and I never got a tax credit. Maybe a gift card from the parents that worked out to $2/hour. My wife gets a tax credit for signing my kid up though (like most tax credits it goes to the lower income earner and at $2/hour I’m ahead!)

You don’t get a tax credit for volunteering and where you get paid a small remuneration you have to claim it even if it doesn’t cover expenses, and you can’t claim the expenses. This is one of the reasons so many people refuse to volunteer.

Except for me of course, I love throwing wrenches at people. “If you can dodge a wrench, you can dodge a ball!” “Now come on people you look like a bunch of retards trying to hump a door knob!!”

(Sorry about the retard word but that’s what the line from the movie says.)

#177 Debt's Dark Embrace on 03.23.16 at 1:16 am

Where’s my free legal pot ?

#178 Setting the Record Straight on 03.23.16 at 1:19 am

@#54 hope & ruin on 03.22.16 at 6:26 pm
#21 Mark on 03.22.16 at 5:14 pm

Besides, shouldn’t the government be encouraging the ‘rich’ to breed more than the poor?
______________________________________

Mark, of all the things I’ve heard you say…..really?

———–

Really !
To you and other offended posters, a perusal of some of the economic history literature on England concerning why the economic revolution ( continuous per capita income growth) started in England might be enlightening.

#179 Jerry Dumpnorth on 03.23.16 at 1:44 am

“118 sunders on 03.22.16 at 9:03 pm

This budget makes my stomach hurt. I wonder, can I deduct the cost of Tums on my next return? Spouse and I each have advanced degrees that we funded ourselves, good jobs and kiddos followed, and now we’re getting fleeced. No childcare benefit, elimination of child fitness credits, maybe a higher tax bracket. What is the benefit for trying hard to get out of the middle class? Doesn’t matter to me now that the TFSA has been reduced since I’ll have less take-home pay to put into it.”

OK, you’re a smart guy. So what are you still doing in Canada where 30 % of the workforce is employed by the government and the other 70% are trying to maintain the civil servants in a style they’ve becpome accustomed to?

When I showed up at US Immigration for my first TN a super secret supervisor literally came out from behind the glass and grabbed me by the shirt and dragged me across the border. “You’re welcome” he said. I realized then that my skill sets had been under appreciated in Canada but were greatly appreciated in the US.

The simple act of ‘discovering’ the US as a professional on the top ten hit list of most desirable foreign applicants was that my salary doubled automatically. I was offered a signing bonus and a moving allowance so lucritive I couldn’t refuse. I had nothing to move but the comapny insisted I keep the money anyway. By way of asking me to stay and be happy they gave me a package of RSU’s that continued every year in a company who’s stock has grown 150% since I joined.

Why anyone with an education stays in Canada for the lousy treatment, egregious taxes and poor services I really don’t know.

Houses in the US are a dream compared to Canada. COL is half and less. Cars are half, so’s the insurance. I traded up from a Toyota to a convertible Camaro within weeks of arriving. A really nice house here is $300,000 which would cost well over a million in Canada.

And I gotta say, the people aren’t bitching and miserable the way they are in Canad. It’s a faster happier pace down here that you just don’t ever have in Canada. Individuals are #1 , the public service is # 2 , literally.

#180 saskatoon on 03.23.16 at 1:59 am

#147 acdel

“Income splitting was unfair to a majority who pay taxes. You want kids then pay for it like all your predecessors, it’s your choice to have them, I made mine and paid for it.”

average canadian IQ: 99.

#181 Jerry Dumpnorth on 03.23.16 at 2:00 am

From yesterday-

#4

I’m a union steamfitter. At a rate of $42/h in town industrial guys make around $80k and going out of town and working overtime I’ve seen guys pull up to $140k if they work 7 days a week nearly all year.”

These guys are delusional quoting a gross amount when taxes both direct and indirect are taking more than 70% of the gross. Federal and Provincial alone in this tax bracket takes 45% RIGHT OFF THE TOP AND MORE IF YOU LIVE IN THE MARITIMES.

Also delusional is the idea that these ‘trades’ are mobile. I posted an ad for a fully qualified registered nurse with ten years experience for a job in the UAE that paid $1000 per mo., when the same union gig in Canada pays 20X’s that much. These are the reasons the COL in Canada is so high and taxes are pushing 100%. It’s to support an elite status quo of union workers who lobby for the government during elections.

Look at a recent cae where the CBC ran a 9 year Hate Harper Campaign using the publics money, and even had the employee’s union registered as a lobbiest for the opposition. Now the CBC is the biggest single beneficiary of the recent budget, 1 billion dollars as pay back for ‘loyalty to the cause’. That money is corrupt but no one says a peep.

Peter Mansbridge is wearing his Order of Canad apin again. Does this mean he’s in the running to be the next GG like the last CBC hacks that reached royal status for political campaigns friendly to the Liberal Party?

#182 Honey Dripper on 03.23.16 at 5:12 am

The budget will balance itself!

#183 Vangrrl on 03.23.16 at 5:39 am

#37 Mocha:
‘The “pandering to female voters/single moms budget.
Garbage’

Right- because women get themselves pregnant (and all women want kids). I believe if you want kids, pay for them yourself. Overpopulation is at the core of all the world’s problems.

#184 Agreed Garth but for different reasons...Smoking Man back on 03.23.16 at 5:55 am

People can be as angry as they want, but government will never equalize income. — Garth

– – – – – – – – – – – – – – – – – – – – – – –

I agree but where the money would do the most good is with the poor, which were completely ignored in T2s budget…yes, T2 did not equalize income.

And Garth, yet again that “lefty” outfit (a.k.a. Bloomberg Business) is now wafting the idea of Helicopter Money and the economic case for it:

http://www.bloomberg.com/news/articles/2016-03-22/billions-from-heaven-helicopter-money-option-wins-fans

Time to break out those Beta Blockers Garth…

_____________________________

You’re back with some humour #151 Smoking Man. LOL on your whore comment…too funny.

#185 Ontario's Left Coast on 03.23.16 at 6:41 am

Meanwhile, this appears in an online Globe article on investing for millenials. When will the message ever sink in that these are long-term vehicles not to be raided at every opportunity?

“TFSAs are a better choice for shorter-term goals because of their liquidity, advises Ms. Boland. RRSPs can be great for investors in a higher tax bracket or for those saving for a first home because of the federal government’s Home Buyers’ Plan (which allows investors to borrow up to $25,000 from their RRSP and pay it back over 15 years).”

#186 maxx on 03.23.16 at 6:57 am

#1 Caught In The Grip on 03.22.16 at 4:47 pm

“Will increased federal debt weigh on the $CAD in the future?”

Already has. Countries are continuously dissected and analyzed by ratings agencies and Canada is no exception.

Operational integrity is more important than a constantly changing bottom line.

At best, Canada is operating to a global lowest-common-denominator standard and bottomless spending is not the solution.

#187 maxx on 03.23.16 at 7:03 am

#3 Rebecca on 03.22.16 at 4:49 pm

“Government debt is fine if it invests in economic growth. Some of the Liberal spending increases seem on point, like the infrastructure increase, but other parts, like decreasing the age for OAS, are awful.”

Give it a while….if spending at the present rate continues, at your retirement, you’ll have my sympathies.

#188 Shafik LaGrande on 03.23.16 at 7:07 am

DELETED (anti-immigrant)

#189 CB on 03.23.16 at 7:22 am

In Toronto, the news is dominated by Ford death and ISIS attacks. I am not sure most people even realize that the budget was released!

#190 pBrasseur on 03.23.16 at 7:30 am

Capital gains were untouched, at least that’s that, I think on that point we can trust even those tax and spend liberals know they’d get in trouble by going there…

For the rest it is discouraging, it’s like going back to the 80s only this is not the 80s, we don’t have the margin nor the demographics we had then, mistakes won’t be forgiven as easily.

Canada has above all a dire need to regain competitiveness, for that it needs to make itself become more attractive for private investments (besides RE speculation…). This budget is just going to make that more difficult, more unlikely and we’ll eventually be collectively poorer for it!

#191 Large Families??? on 03.23.16 at 7:30 am

DELETED (anti-immigrant)

#192 Fakeologist on 03.23.16 at 7:34 am

Ah…what will the end game be? Can you say Lake Coca Cola?

http://wp.me/p3PI2w-2xym

#193 Conspiratard on 03.23.16 at 7:37 am

Well the greater fools really have come out to play on this blog ;)

Rob Ford, of course, is not dead. Right now he is in Belgium, helping to save the West from ISIS behind the scenes. The teachers and femanazis better not wet their pants with glee – Rob will be returning to the scene very soon.

As Donald Trump’s running mate. Little known fact – Rob has a birth cert. from the U.S. and is eligible to run.
Rob’s party, er…funeral, will be a blast…I mean, very sad, wink, wink.

Few know of Rob’s real genius, including how he singlehandledly saved Deco Labels with his business acumen. He only took drugs to speak with aliens, and he used what he learned from them to try to help save us all.

I know this. Smokey knows this. And the rest of you do too, if you choose to open your eyes.

Or you can just keep polishing the shoes of the illuminati, thinking that Robbie was a wife-beating crack-smoking idiot. Fools you are, in that case, libtards.

P.S. Do NOT buy any Belgian chocolate for the next 36.5 hours. Smarties only. After that, it shoud be fine.

#194 Bottoms_Up on 03.23.16 at 7:50 am

#183 Vangrrl on 03.23.16 at 5:39 am
———————————
Actually supporting families circulates money into the economy (think velocity of money). Young families face large daycare bills and mortgages….essentially the most financially difficult years of their lives. And we also want these families to raise their children healthy (think reduced burden on healthcare system) and productive members of society. And you suggest not helping? Silly.

#195 salonist on 03.23.16 at 7:55 am

clicked on your web site and a bitdefender pop up…shows…
warning malicious web site (in a vibrant red box)
I click through it and malawarebytes says it detected userinit.exe.
quarantined it,
apparently that didn’t stop it as it popped up in my processes (winpatrol) asking if I wanted to accept this new startup process, yes or no.clicked no
it popped up again asking if it could install itself..said no again.

#196 pBrasseur on 03.23.16 at 8:08 am

@WallOfWorry #124

The reality is that Canadian government debt is amongst the best of the G7 and certainly better than the US.

Actually it is not, never mind the apple vs oranges numbers you see in the medias, if you factor in public budgets at every level (federal, provinces, states, municipal…), on average a Canadian already pays substantially more than an American to service public debts. Yet we don’t have the growth potential the US has nor do we have the fiscal margin…

Just take a look at the budgets its’ quite easy to figure this out.

Our situation is NOT good, and on top of that ours households ARE the G7 debt champions.

Canada’s economy IS definitely a credit mirage! Sooner or later the market is bound to realize this and then…

#197 crowdedelevatorfartz on 03.23.16 at 8:20 am

@#162 Mark.

Well, if securing your particular genetic “strain” is really that important.
There are fertility clinics out there that garantee you a “mini Mark”.
Prepare yourself for 3am feedings, diapers and
But if your child inheirits your verbosity you might want to pick a more suitable name……
You could name your kid “Rex” as in
Talk-a-saurus Rex.

#198 Give Me A Break on 03.23.16 at 8:20 am

BANNED

#199 Time to boot on 03.23.16 at 8:23 am

#78 Mark on 03.22.16 at 7:31 pm

(…)Pure propaganda. Helps financier class like Garth’s.

I would like to re-open the court to permanently boot Mark off this blog.

The ‘financier class.’ Cute. You are most welcome to leave and join an indigent self-help blog. — Garth

#200 Hush! on 03.23.16 at 8:38 am

DELETED (anti-immigrant) & BANNED

#201 Time to boot on 03.23.16 at 8:47 am

#200 Time to boot

The ‘financier class.’ Cute. You are most welcome to leave and join an indigent self-help blog. — Garth

Sir Garth, I was quoting Mark (comment #78), those are not my comments. I want Mark booted.

Great. Then let’s send him! — Garth

#202 Smoking Man on 03.23.16 at 9:16 am

#174 Philburt on 03.23.16 at 12:17 am
T2 is a God dang fool.
Did you hear him on his carbon tax speech just a bit ago…
PATHETIC double talk that sad nothing. Embarrassingly hilarious.
Bureaucratic money blowing on carbon BS that amounts too nothing but screwing the middle class.
Head over to China, India, Philippines and take a whiff of their air!!!!!!!!!!!!!! We are the only ones that can still breath….
accept….Roam (Canuckle head land) is burning along with T2s smelly diaper…
This guy belongs in a play pen.
………………

Good post
Ok lets take some acid, and cocaine, wait 1/2 an hour and pretend Man made Climate Change is real.

As great powers risk world war trying to have access markets to sell their energy. T2 via his behind curtain guy Butts wants to destroy ours.

No countries are taking climate changes serious, just paying lip service to appease those mind fked Al Gore disciples.

If your the only country that is participating you lose huge.

The budget is a joke.

The only good thing about it, one day those dumb stupid hipster urbinites are going to get smashed hard resulting in the resurgent s of conservationism.

#203 Adam Jenkins on 03.23.16 at 9:32 am

The good ‘ol blog about having some common financial sense is a thing of the past. Bring on the hardcore partisanship!

#204 Pathetic on 03.23.16 at 9:33 am

BANNED (no matter how many names you employ)

#205 grieves on 03.23.16 at 9:38 am

I just lost out on $3,840 that I was getting on the UCC benefit as I am not eligible under the Canada Child Care benefit as family income is too high. $175,000 family income in Toronto (where the average house is $1mm) is middle class!! Can’t wait for 2019 election.

#206 Yanniel on 03.23.16 at 9:42 am

For the record: I am 33 and I did not vote Liberal. I hope Canada does not turn into a Cuba; otherwise, I will have to immigrate again. Damn.

#207 hope & ruin on 03.23.16 at 9:52 am

#178 Setting the Record Straight on 03.23.16 at 1:19 am

Really !
To you and other offended posters, a perusal of some of the economic history literature on England concerning why the economic revolution ( continuous per capita income growth) started in England might be enlightening.

_____________________________

do you mean the industrial revolution? invention of the steam engine, colonialism, property rights, banking institutions, capital markets.

You want to add eugenics to that list?

not offended. please forward some reading material.

#208 Trey on 03.23.16 at 9:54 am

The news is out: Canada preparing for bank failures and bail-ins. I knew it!

http://www.examiner.com/article/canada-prepares-for-coming-bank-failures-with-new-bail-legislation-budget

The language in the budget was two years old – nothing new in any regard – and it has nada to do with depositor funds. Try not believing every bit of crap you read on the Internet. Except this crap. — Garth

#209 Noel on 03.23.16 at 10:05 am

‘Penalizing success’.

Just another tired conservative meme, try some facts instead of talking points aimed at simpletons.

Okay, give us your description of increased taxes on people who have achieved above-average incomes. — Garth

#210 SquareNinja on 03.23.16 at 10:16 am

It gives me a good chuckle whenever a conservative-type person really believes the story of the ant and the grasshopper. Being born in Canada gives you a big leg up on the rest of the world; but even if you work your butt off, there are systemic reasons why you won’t (and most don’t) be living the dream anytime soon.

#211 Daisy Mae on 03.23.16 at 10:20 am

#90: “Why should the state pay entirely for daily child care? — Garth”

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

Because these families are both in the workforce, both paying income taxes to the feds, for the privilege of working night and day? And for what?

We all eat. The state does not buy our food. Be tempered in your expectations. — Garth

#212 Alistair McLaughlin on 03.23.16 at 10:24 am

I’m relieved at what wasn’t in the budget. He didn’t raise the capital gains inclusion rate. He didn’t crack down on professionals using corporations and family trusts to split income like he said he was going to. He didn’t raise the GST. Safe for this year. However, with all the spending he’s doing, it seems almost a guarantee he’ll be looking at the above 3 items – and many others – to raise more revenue in future Budgets. So smoke ’em while you got ’em.

#213 davikk on 03.23.16 at 10:24 am

Canada turns to a fiscal stimulus

http://investmentwatchblog.com/canada-turns-to-a-fiscal-stimulus/

#214 Worthless on 03.23.16 at 10:26 am

STILL BANNED

#215 Noel on 03.23.16 at 10:26 am

Okay, give us your description of increased taxes on people who have achieved above-average incomes. — Garth
____________________

Taxes on people with above average incomes have fallen steadily for 40 years in Canada and the U.S., I’d call a small bump in the higher marginal tax brackets a return to a fairly balanced tax policy.

Do you think it would have been better for the country, overall, if the highest marginal rates were lowered in the latest budget?

Did anyone suggest that? Tom Mulcair? I missed it. — Garth

#216 Daisy Mae on 03.23.16 at 10:28 am

#94: “You forgot that Harper ruled the country for a decade and steered the country to safe waters…”

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

No, as a matter of fact, he didn’t. Harper is responsible for the 0/40 amortizations and the rest of the BS that followed. Triggering the present ‘house lust’. He did NOT “steer the country to safe waters” altho’ on the world stage he appeared to have, at that time — however, now witness the mess he’s left behind for Trudeau.

#217 Yanniel on 03.23.16 at 10:36 am

May I ask why my comment was deleted?

#218 Daisy Mae on 03.23.16 at 10:37 am

#103: “It is amazing how dumb the vast majority of the electorate really is.”

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

And what makes YOU so wise? LOL And where is Harper today? He ‘pandered’ to the wealthy at the countrys’ expense….and now he’s gone. Harper, the so-called ‘economist’, has left a god-awful mess.

#219 Yanniel on 03.23.16 at 10:37 am

oops, sorry, it was not deleted. I failed to properly refresh the browser. my bad.

#220 Daisy Mae on 03.23.16 at 10:41 am

#107 – “…the kids are income sources for some of these places…”

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

And income tax revenue for the feds.

#221 poundingsand in Peachland on 03.23.16 at 10:45 am

“Thank Politicians for greatest wealth creation in Metro Vancouver’s history”

#222 Noel on 03.23.16 at 10:57 am

Did anyone suggest that? Tom Mulcair? I missed it. — Garth

_________________

I don’t think anyone suggested it, its just a hypothetical. I’m genuinely curious if you think that current tax burdens are too high (not just for people who make $200k+/year, but for everyone), and if they are too high, what a better level would be.

For example, would you prefer lower income and corporate taxes but increased consumption and property taxes?

Or lower taxes and program spending across the board?

Its obvious you think that increased corporate (your words: job killing) and high-bracket (your words: penalizing success) taxes are a net negative for the country, I’d love to hear some alternative proposals.

Would make for a very good blog post.

#223 suck it up on 03.23.16 at 10:57 am

#205 grieves on 03.23.16 at 9:38 am
I just lost out on $3,840 that I was getting on the UCC benefit as I am not eligible under the Canada Child Care benefit as family income is too high.

To quote Garth, “suck it up…”

When we raised our kids, we got way less, with lower income at that time.

You can’t time markets and politics.

#224 Daisy Mae on 03.23.16 at 11:00 am

#211: “We all eat. The state does not buy our food. Be tempered in your expectations. — Garth”

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

Maybe one parent should stay home and raise the kids. Appears ‘daycare’ care is lacking. These workers put their ‘best foot forward’ when parents are present. I’ve heard enuf horror stories….

#225 Damifino on 03.23.16 at 11:07 am

#210 SquareNinja

“there are systemic reasons why you won’t (and most don’t) be living the dream anytime soon.”

There sure are…

Air of entitlement
Unwillingness to assume risk
Fear of failure
Lack of ambition
Misunderstanding of capital
Rampant innumeracy
Naive expectations

#226 WalMark of Sadkatoon on 03.23.16 at 11:17 am

however, now witness the mess he’s left behind for Trudeau.

yor rite

he won’t be able to do anything either

#227 tkid on 03.23.16 at 11:18 am

Triggering the present ‘house lust’. He did NOT “steer the country to safe waters”

He did steer the country to safe waters from a financial disaster that threatened the planet. I know y’all hate the man – despise to a degree that y’all become irrational – but 2008 was a Very Bad Year. If you keep denying just how bad it got, you run the risk of forgetting the lessons learnt from that disaster and repeating them.

Now times have changed. T2 has a debt, a too-high deficit, and a bubbling real estate economy to deal with.

And quit blaming the real estate mess on Everyone Else. WE ran house prices up. We did this, no one forced us to do this. Responsibility is on us.

#228 jess on 03.23.16 at 11:21 am

“The misleading videos are examples of a phenomenon that is becoming increasingly common during almost every major news story featuring violent, fast-moving events. False or misleading reports spread rapidly across social media and are picked up by reputable news organisations, further obscuring an already incredibly confusing picture. ”
http://www.theguardian.com/media/2016/mar/23/fake-youtube-videos-brussels-attacks-facebook-twitter

======
facebookistan tvo.org
==============

brand voice? BrandVoice articles are not clearly portrayed as advertorials,
e.g. …for hefty fees, the ability for corporations to write their own articles and post them as news articles on a web site.

=

Bankruptcy Court Approves Alternative Purchaser of Orange County Register and Riverside Press-Enterprise
Thursday, March 17, 2016
Justice Department Files Antitrust Lawsuit to Stop L.A. Times Publisher from Acquiring Competing Newspapers
https://www.justice.gov/opa/pr/justice-department-files-antitrust-lawsuit-stop-la-times-publisher-acquiring-competing

#229 tkid on 03.23.16 at 11:26 am

Garth – what’s your opinion on getting one’s non-TFSA/RRSP investments out of the country and moving them to the US? The philosophy of the current-in-charge bunch seems to be one of ‘damn you for saving any money’.

Would it be prudent to move some cash down south? If no, what are some of the signs to look for?

I’m not freaking out, I’m just doing an info gather.

#230 Setting the Record Straight on 03.23.16 at 11:47 am

@207
I will provide some material in today’s forthcoming blog.

#231 Vamanos Pest on 03.23.16 at 11:56 am

HAHAHAHAHA!!

I’m solidly in the 1%, and most certainly one of the wealthier people that T2 envisioned would pay for the middle class tax cut. The reason I’m laughing is, through my small business, my wife and I can continue to take income as dividends, to the max of the bracket that receives a tax cut, and the rest of my income will stay in the small business, with taxes unchanged.

I’m a beneficiary of the middle class tax cuts!!! All I have to do is find a way to live on 15k a month. All totally legal and legit.

Hilarious.

I love democracy.

#232 WallOfWorry on 03.23.16 at 12:01 pm

The perfect storm of slow growth, aging demographics, and lack of productivity have forced government hands. While the focus on this blog is primarily on the plight of Canada and the risk of a one asset strategy, the broader implications and risk profile in the US should be of a much greater concern. Canada needs to focus on developing better global trading partners as our risks associated with our tight association with the US does not loom well for us. The US at 2% GDP growth is headed for peril.

http://charleshughsmith.blogspot.ca/2016/03/recipe-for-collapse-rising-military-and.html

#233 Bat Flipper on 03.23.16 at 12:02 pm

mortgage rate shopping sites slipped 30% yoy. http://www.trafficestimate.com/ratesupermarket.ca

The opposite should be happening though because there are more mortgages in Canada then ever. What is going on here?

#234 adioscanistan on 03.23.16 at 12:12 pm

The Canadian dream is to enslave the masses with debt from calpboard houses….encourage more kids, and voila the tax farm is up and running….no one has any mobility for work and basically has to pony up the tax ante these government thieves are proffering, in echange for “free” 2nd rate health care, and free decent but not great education….I am outta here…moving to the US….will be a much better self-empowered life..

#235 Quicksilver on 03.23.16 at 12:15 pm

30 Billion in deficit spending to stimulate business….
That’s less than the amount of business investment dollars lost in the coal, oil and gas sector from a carbon tax and regulation.
The tax and regulation is about punishing and controlling the West.
The budget is about Pork, kickbacks from Natives and Infrastructure and solidifying their base in the East.

#236 Renter's Revenge! on 03.23.16 at 12:23 pm

Why should the state pay entirely for daily child care? — Garth

While I don’t think the state should pay entirely for child care, I can think of few good reasons why they should subsidize it:
– It takes a village to raise a child. A proverb, not a fact, I know.
– Children are our future. The social contract demands that they take care of us when we get old. We should take care of them when they’re young.
– Kids are expensive. Fewer people are choosing to have children, and if it wasn’t for immigration, Canada’s population would decline (so I’ve heard). Obviously overpopulation is a global problem, but we can hardly say that about Canada. If fellow Canadians choose to have kids we should support them.
– The state already pays for child care starting at the age of 5 – in the form of public education.
– It’s less efficient to have 5 parents staying at home watching their individual children than it is to have one child care worker watching 5 kids. If people have other skills besides child rearing then society is better off if they’re put to use.
– We’re in a transitory period where expecting women to stay at home is seen as sexist, and when men stay at home it’s shameful and embarrassing. Who’s gonna watch the kids??
– Not every grandparent is available to watch the kids, particularly when people move to different cities for work.

#237 Too funny on 03.23.16 at 12:32 pm

#151 Smoking Man on 03.22.16 at 10:34 pm
#136 Get Lost!!! on 03.22.16 at 9:58 pm
Rjrt81 why don’t you get lost if you have nothing good to say don’t say nothing! Who cares about your opinion, Rob Ford was Awesome, he will definitely be missed!!!
I’m a whore? nothing much makes me cry. I cryed today
Last time was in October 2014 my nefew. Mom died the day he was barried. Didn’t feel that one. She was 92 and relived of pain.
…………………………………………………….
Smoking Man you are way too funny. No wonder nobody takes you or your social commentaries seriously. You’re a certified raving idiot lunatic. Learn to spell stupid, if it’s all on Google then google it you wanker. You tell us that education sucks but what is much worse is the fact that you have none. By the way don’t bother re-butting my post as you couldn’t spell your way out of an LCBO bag.

#238 Bottoms_Up on 03.23.16 at 12:53 pm

#212 Alistair McLaughlin on 03.23.16 at 10:24 am
————————————————————-
Not sure about that. They are projecting a flat or even slightly declining debt-to-GDP ratio over the next 4-5 years. They won’t need to raise new funds to achieve that, other than what they are building in due to growth.

Isn’t this the metric that is most important?

#239 waiting on the westcoast on 03.23.16 at 12:58 pm

Wow… Scary comments on this post….

To all of those who are advocating a level playing field…

When you work long hours for no money for two years building a company (and hiring others while you cannot take money out) and risk everything you own to achieve it… Then talk to me about leveling the playing field. No one was there saying, hey let me fund you for free and provide a substantial salary while you take on that risk and responsibility. If they did, then I would be all for leveling now.

The fact is that the markets trends to reward those who take on significant risk and/or put in extraordinary effort (and yes, sometimes a bit of luck). How many Olympic gold medalists have balanced lives? Yes – they received some assistance from the state (but nominal). It was an enormous sacrifice to attain that goal. Far more than any of us would take. But they have the medal. Should we say it’s not fair and expect them to share it…

#240 Bottoms_Up on 03.23.16 at 12:59 pm

#205 grieves on 03.23.16 at 9:38 am
——————————————–
According to this you will still receive $2200 per year (if 2 kids under 6), or $3800 per year (if additional kid over 6) tax free, which is actually more than what you were getting under Harper’s plan where you paid marginal tax rates on the benefit:

https://www.liberal.ca/realchange/canada-child-benefit-plan/?shownew=1

#241 fancy_pants on 03.23.16 at 1:06 pm

now why would they do this? ;)

http://www.cbc.ca/news/business/foreign-buyers-real-estate-1.3504090

Politics, obviously. — Garth

#242 Bottoms_Up on 03.23.16 at 1:10 pm

#202 Smoking Man on 03.23.16 at 9:16 am
——————————————————
Man releasing gigatonnes of greenhouse gases (read: planet warming gases) is REAL.

As a result:

Warming of surface temperatures is REAL.

Acidification of oceans is REAL.

Proven here, in NASA research:

http://data.giss.nasa.gov/gistemp/graphs_v3/

#243 eddy on 03.23.16 at 1:13 pm

http://wp.me/p3PI2w-2xym.

I agree with fakeologist. I do not believe Rob is dead.
If I see Rob in an open casket, I’ll believe he’s dead.
I dont believe any MSM regarding Belgium,
They used Belgium for agitprop in WW1.
Same scriptwriters.

#244 The Truth about YVR on 03.23.16 at 1:18 pm

From Auto show press release:

“Indeed, new ICBC data shows the number of ultra-luxury cars on the roads of Metro Vancouver has almost doubled in the past five years, with sales figures accelerating even faster in certain parts of the Lower Mainland.”

“Data provided Tuesday by B.C.’s car insurance carrier shows the number of select luxury makes (including Bentley, Lamborghini, Maserati, Maybach, and Rolls-Royce) registered in Metro Vancouver increased from about 1,300 in 2010 to about 2,500 vehicles in 2015. The number in Richmond more than quadrupled over six years, from 91 ultra-high-end autos in 2009 to 410 in 2015. Figures for Vancouver rose by about 85 per cent over five years, from 590 luxury cars in 2010 to 1,100 in 2015.”

“We are a world-class city, at the end of the day, and there’s a lot of offshore money that comes in. A lot of the cars have ‘N’ stickers (for new drivers) on the back of $600,000 or $700,000 cars … You see them in any neighbourhood you’re in, but you do see a lot at the bottom of SFU hill and out at UBC, so it’s a lot of students.”

#245 cramar on 03.23.16 at 1:18 pm

The probability of an April rate hike just doubled:

‘I think we need to get on with it,’ Fed official says

http://www.marketwatch.com/story/the-probability-of-an-april-rate-hike-just-doubled-2016-03-23

#246 Realitybytes on 03.23.16 at 1:21 pm

having fun complaining about the liberal government deficit budget…?

Never mind what was inherited or promised, just keep in mind the longer term historical context, and that government debt is not meant to be paid back.
It’s meant to be inflated away.

With high spending follows gdp growth, then higher interest rates, then inflation.

10 years of historically low interest rates and minimal inflation will come to the end of its cycle.

#247 Zorba on 03.23.16 at 1:35 pm

http://www.bloomberg.com/news/articles/2016-03-23/chinese-buy-one-third-of-vancouver-homes-national-bank-estimate
1/4 of Bulgarian GDP

#248 Smoking Man on 03.23.16 at 1:38 pm

#242 Bottoms_Up on 03.23.16 at 1:10 pm

#202 Smoking Man on 03.23.16 at 9:16 am
——————————————————
Man releasing gigatonnes of greenhouse gases (read: planet warming gases) is REAL.

As a result:

Warming of surface temperatures is REAL.

Acidification of oceans is REAL.

Proven here, in NASA research:

http://data.giss.nasa.gov/gistemp/graphs_v3/

You are cleerly a schooled commie.. Did you’re teecher give you an apple evary day for that.. the temparture is teh same as when i was little boi. they say whateveer they want to keep there tax slave job… as kissesr.. bet ya dont liek Robby and Trump eitehr… heroes to common man rather than a commie man like you are and your Butt freind

#249 moving investment on 03.23.16 at 1:40 pm

#229 tkid on 03.23.16 at 11:26 am
Garth – what’s your opinion on getting one’s non-TFSA/RRSP investments out of the country and moving them to the US

Hire KPMG, ask for their CRA immunity investment service, move your money off-shore.

#250 This is crap on 03.23.16 at 1:58 pm

#247 Zorba
I am sorry Garth, i didn’t believe it until last year, but now it is everywhere, i have nothing with the foreign investors, but the problem is they push locals to crazy levels of debt! tax every purchase 10% at least you get 1 billion for provincial budget!!! How hard is that?
Is not worth to work in this stupid province/country…

#251 "investing with a sound premise" on 03.23.16 at 2:14 pm

Very interesting… simple and elegant.

Can ETF investing also be a target of a “investing with a sound premise”?

http://www.businessinsider.com/warren-buffett-explains-how-bubbles-are-formed-2016-3

“… My former boss, Ben Graham, made an observation 50 or so years ago to me that it really stuck in my mind and now I’ve seen evidence of it.

He said, ‘You can get in a whole lot more trouble in investing with a sound premise than with a false premise.’

If you have some premise that the moon is made of green cheese or something, it’s ridiculous on its face. If you come out with a premise that common stocks have done better than bonds [well, economists like Edgar Lawrence Smith back in 1924 have shown that this has been the case.]

That became the underlying bulwark for the [1929] bubble. People thought stocks were starting to be wonderful and they forgot the limitations of the original premise [….] So after a while, the original premise, which becomes sort of the impetus for what later turns out to be a bubble is forgotten and the price action takes over.

Now, we saw the same thing in housing. It’s a totally sound premise that houses will become worth more over time because the dollar becomes worth less. […]

And since 66% or 67% of the people want to own their own home and because you can borrow money on it and you’re dreaming of buying a home, if you really believe that houses are going to go up in value, you buy one as soon as you can. And that’s a very sound premise. It’s related, of course, though, to houses selling at something like replacement price and not far outstripping inflation.

So this sound premise that it’s a good idea to buy a house this year because it’s probably going to cost more next year and you’re going to want a home, and the fact that you can finance it gets distorted over time if housing prices are going up 10 percent a year and inflation is a couple percent a year. Soon the price action – or at some point the price action takes over, and you want to buy three houses and five houses and you want to buy it with nothing down and you want to agree to payments that you can’t make and all of that sort of thing, because it doesn’t make any difference: It’ s going to be worth more next year.

And lender feels the same way. It really doesn’t make a difference if it’s a liar’s loan or you know what I mean? […] Because even if they have to take it over, it’s going to be worth more next year. And once that gathers momentum and it gets reinforced by price action and the original premise is forgotten, which it was in 1929.

#252 farsyd on 03.23.16 at 2:15 pm

Garth, appreciate your unique insights and the Herculean effort of publishing daily. You are likely wrong about this not lasting. This is just the beginning. Bigger deficits, mean even bigger taxes later. The populace has a taste for eating the rich and like a dog on a bone, it ain’t gonna let go. In a democracy, the hard working and financially successful are the minority that is allowed to be persecuted.

#253 hope & ruin on 03.23.16 at 2:39 pm

#230 Setting the Record Straight on 03.23.16 at 11:47 am
@207
I will provide some material in today’s forthcoming blog.

________________________________

yikes. not sure that these will get past the filter. Here’s a quick rule of thumb: if it could be found on a kkk bookshelf or used for recruitment purposes. keep it to yourself.

#254 45north on 03.23.16 at 2:42 pm

Liberal budget: David McGuinty MP Ottawa South said that infrastructure spending would be guided by needs of the municipalities.

Good idea. Municipalities run a tighter ship, have a better idea of priorities.

#255 Bram on 03.23.16 at 2:46 pm

#247 Zorba on 03.23.16 at 1:35 pm
http://www.bloomberg.com/news/articles/2016-03-23/chinese-buy-one-third-of-vancouver-homes-national-bank-estimate

Interesting.
If that back-of-the-envelope calculation is reasonably on target, the article headline is misleading.

A third of the value, does not mean a third of the houses.

If a mogul investor makes a move, it is in Shaughnessy, not in Burnaby.

That said, those sales chain all the way to the low end market of course, as the seller in Shaughnessy may re-buy in Point Grey, and the seller there re-buys in Kits, and the seller there buys in East, etc…

Bram

#256 Millmech on 03.23.16 at 2:46 pm

I wonder if the liberals are going to replenish the EI coffers of the 50billion they removed from it to help balance their budgets.They are not worried about overspending since they have gone into the kitty once before and will most likely do it again(putting it to the lower and middle class as they contribute the most to this and use it the most).Just think of the retraining that could be used to make us more competitive with 200 billion fund.
Also notice no taxes on corporate profits like banks who make billions each quarter,no rollbacks on trust funds,just add more tax to the upper middle income to make the middle and lower income feel self important.

#257 Herb on 03.23.16 at 2:51 pm

#247 Zorba,

good thing that the National Bank of Canada is not one of the Big 5, is not in the mortgage business, doesn’t know what it’s talking about, and is only playing politics.

Note that the report is based on dollar value of sales, not units. Bad methodology. — Garth

#258 jess on 03.23.16 at 3:00 pm

5 hrs in line to vote?

The Arizona Democratic Party is also investigating reports that numerous Democratic voters were mistakenly identified as “independent” in the voter database, which would exclude them from the closed primary. Many of the misidentified voters were given provisional ballots, which may not have even been counted.

A number of polling places reportedly ran out of ballots while four locations in Tucson received bomb threats forcing at least one to evacuate.

https://petitions.whitehouse.gov/petition/investigate-voter-fraud-and-voter-suppression-arizona-3222016-democratic-party

#259 TurnerNation on 03.23.16 at 3:03 pm

Wow as usual a major international crime is all but solved overseas today. Suspect photos splashed on front pages as I said yesterday.
Result? Lock down of travel and arbitrary searches of all citizens! Predictable script now. Worthy of a Netflix drama everyone watches.

How to control 7 billion sheep. Is there anything ‘IS’ cannot accomplish?

#260 45north on 03.23.16 at 3:13 pm

website down: yesterday your website was down: Error 522

CloudFlare was working

what’s cloud flare?

http://www.theregister.co.uk/2016/02/24/cloudflare_may_stop_captcha_tor_users/

#261 Mike on 03.23.16 at 3:22 pm

Whole…

#262 RandyRod on 03.23.16 at 3:23 pm

First of all, not condoning this budget. But you can’t really defend the Harpercons on this one bit. They promised a surplus up to the day of the election and were found to be lying through their teeth. Can’t really campaign on the other side accurately if the numbers you’re given are a lie. The Harper losers were gifted a massive surplus when they started and had no reason to go in to deficit as soon as they did. They blamed it on the recession but would have been much better prepared for it if they didn’t blow the surplus immediately. I’m hoping (not holding my breath) that the spending here will be a bit more focused than the economic action plan (aka. advertising). I’m with you Garth, but when you start defending the Cons record you lose me immediately…

#263 Herb on 03.23.16 at 3:27 pm

“… the report is based on dollar value of sales, not units. Bad methodology. — Garth” (at $257)

Garth, is the problem with real estate in Vancouver (and Toronto) the number of units sold, or their dollar value?

#264 Philburt on 03.23.16 at 3:31 pm

#202 Smoking Man on 03.23.16 at 9:16 am

Thanks Smokin. Same back on many of yours.
Only have few minutes this week to dedicate to fraternizing. Busy keeping the comunest pigs in pay dirt. TAXES.
Didn’t pay as much as you but more then your avg canuckle head. More then mosts gross $$ easy…for now.
Then probably run for the boarder. Of course they will have on hands on deck makin sure that my loot….I mean mine and theirs doesn’t leave the country.
We are viewed as milk cows. Then when you can’t produce you are headed for the hamburger grinder.
DOOOO YOOOU SEEE WHAT I SEEEEEEE?!

#265 WalMark of Sadkatoon on 03.23.16 at 3:45 pm

WalMark is still the dumbest poster to date but Daisy is gaining fast

there can only b one

#266 old money moves out of oil on 03.23.16 at 3:49 pm

The Rockefeller Family Fund, a US-based public charity led by the Rockefeller family, announced on Wednesday that it’s intending to completely divest from fossil fuels.

“While the global community works to eliminate the use of fossil fuels, it makes little sense — financially or ethically — to continue holding investments in these companies,” the fund said in a statement posted on its website.

The Rockefeller Fund specifically called out ExxonMobil.

#267 PR on 03.23.16 at 4:11 pm

” At present , it is not possible to fully understand the role of foreign buyers in the Canadian housing market since there is not a set of comprehensive and reliable data on the number of homes sold to such buyers , “said the government in a budget document .

Their you have it.

#268 The Pot..... on 03.23.16 at 4:32 pm

“If not, your grandchildren will be muttering something about, “what the…?””

https://www.youtube.com/watch?v=Bcfl5_3kiZE

#269 Vangrrl on 03.23.16 at 4:33 pm

#183 Vangrrl on 03.23.16 at 5:39 am
———————————
‘Actually supporting families circulates money into the economy (think velocity of money). Young families face large daycare bills and mortgages….essentially the most financially difficult years of their lives. And we also want these families to raise their children healthy (think reduced burden on healthcare system) and productive members of society. And you suggest not helping? Silly.’

Supporting everyone circulates money- I’m all for educating children to be financially responsible as I was raised, to start investing at a young age as my dad taught me (and as Garth teaches us all). Trudeau rolled back the TFSA which could have helped young people in their 20s build their wealth so that when and if they choose to have children they are less reliant on ‘help’ from the rest of society- because everyone is struggling… Well, other than some of the readers of this blog of course.
If it takes a village to raise a child, fine. I expect to be free to point out when I think people are raising their children badly. Wonder how well that would go over?!

#270 Smoking Man on 03.23.16 at 4:38 pm

Wow. The LGBT University campus’s are going bonkers.
Apparently they are kicking white gay men off committees. The Femanazi’s are seizing power.

The gay men are huge fans of Milo which is a big no, no. This is going to be an interesting war.

Who is next after the gay dudes are pushed out by the radical left.

Meet the man hater of they year. She Just does a number on Rob ford after his death. People call her brave, I’m going with pure evil.

Read her columns if you are in need of good comedy.

http://rabble.ca/category/bios/rabble-staff/meghan-murphy

#271 Raincouver on 03.23.16 at 5:00 pm

Hey Garth what do you think about this?

http://www.bloomberg.com/news/articles/2016-03-23/chinese-buy-one-third-of-vancouver-homes-national-bank-estimate

Already answered. — Garth

#272 conan on 03.23.16 at 5:28 pm

Ouch on the corporate class mutual funds
Another nail in the coffin for mutual funds. I guess their only advantage will be unlikely to get seized in case of bank bail in. Unless of course it’s a banks mutual fund offering.

There will be no bail-ins. If there were, deposits and investor assets would be totally untouched. — Garth

#273 conan on 03.23.16 at 5:42 pm

There will be no bail-ins. If there were, deposits and investor assets would be totally untouched. — Garth

I see some cracks in your theory

http://business.time.com/2013/03/25/cyprus-rescue-the-destruction-of-a-tax-haven/

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

https://www.dollarvigilante.com/blog/2016/01/26/italian-bank-panic-bail-in-the-next-domino-to-fall.html

Nope. None. This is old ground, covered on this blog two years ago. Learn more. — Garth

#274 Tony on 03.23.16 at 5:44 pm

Re: #271 Raincouver on 03.23.16 at 5:00 pm

More like close to a 100 percent as the non-Chinese are the flippers (playing hot potato) and the Chinese are the only ones to buy and hold.

#275 Mark on 03.23.16 at 5:58 pm

“I see some cracks in your theory”

Agree with Garth here — chances of a bail-in are almost zero for the big-5 Canadian banks. Why? Because roughly 40% of the asset base of the banks is adjustable rate. Adjustable rate, as in, linked to “Prime”. “Prime” being set at the sole discretion of the bank.

So if a big-5 bank runs into trouble, guess what they’ll do? Yes, “Prime” will increase, and increase further, until they manage to shake enough $$$ out of their adjustable rate borrowers to cover off any deficiency in regulatory capital required, or to defeat any short-term cash flow gap. After all, we know it is within the legal rights of the banks to adjust “Prime” at their sole discretion. Its even written into every loan contract one takes out with the banks on a Prime-linked adjustable rate.

If “Prime” ended up rising so much that it was a problem for the borrowers, well, then we’d have a systemic crisis for which the Bank of Canada would be pretty much forced to intervene with a variety of measures including lower policy rates, QE, etc.

Those examples you cite of bail-ins in the Euro context are on account of those banks not having adjustable rate asset bases, and the ECB basically not caring too much about a systemic crisis in a very small and statistically insignificant part of the overall Eurozone.

If you extrapolate such to Canada, its entirely possible that some small credit unions go under, and are subject to bail-ins. Although as I’ve written in other posts, I suspect that the big-5 would either be relatively eager to acquire failed credit unions and/or would be strong-armed by government into acquisitions (at no loss to depositors) as a sort of quid pro quo of CMHC bailouts.

#276 Industrial guy on 03.23.16 at 6:07 pm

“The benefit is income-tested, which means higher-income earners who contribute disproportionately will receive no benefit.”

True, But that’s because many of those High income earners contribute disproportionately low rates of tax as a percentage of income.

Income is a funny thing under Canada’s tax system ….. Salary and benefits of employments are taxed the highest rates.

Canada;s tax laws are full of gifts to the investment classes like Capital gains, or quirky little tax tools like flow-through shares.

“Equality” has never been a feature of Canada’s tax system … as a past Minister of Revenue. I assume you know this.

The investment classes contribute very little per dollar income … why should they benefit?

#277 LL on 03.23.16 at 6:08 pm

http://www.zerohedge.com/news/2016-03-22/its-official-canadian-bank-depositors-are-now-risk-bail-ins

We are bank creditors..

No, depositors are not. — Garth

#278 Ronaldo on 03.23.16 at 6:21 pm

#147 acdel

”average canadian IQ: 99.”

Really? That high, eh?

#279 Fakeologist on 03.23.16 at 6:27 pm

http://www.greaterfool.ca/2016/03/22/b-day/#comment-439879

Old money that means they’re going to double down on oil. Just go with the inverse when reading about the elites.

#280 Ronaldo on 03.23.16 at 6:29 pm

#265 WalMark of Sadkatoon on 03.23.16 at 3:45 pm

” WalMark is still the dumbest poster to date but Daisy is gaining fast

there can only b one”

I’d say you’re catching up real quick if not already passed them. You may end up in first place the way you’re going. Keep up the good work.

#281 Ronaldo on 03.23.16 at 6:49 pm

#231 Vamanos Pest on 03.23.16 at 11:56 am

” HAHAHAHAHA!!

I’m solidly in the 1%, and most certainly one of the wealthier people that T2 envisioned would pay for the middle class tax cut. The reason I’m laughing is, through my small business, my wife and I can continue to take income as dividends, to the max of the bracket that receives a tax cut, and the rest of my income will stay in the small business, with taxes unchanged.

I’m a beneficiary of the middle class tax cuts!!! All I have to do is find a way to live on 15k a month. All totally legal and legit.

Hilarious.

I love democracy.”

I see what you mean. Good for you.

http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/dividend-investing/you-do-the-math-almost-50000-in-earned-dividends-0-in-tax/article4599950/

#282 Linda on 03.23.16 at 9:10 pm

Garth, how does ‘governments seem to believe’ translate into ‘my’ logic? Again, I didn’t say this is what I believed, I just mentioned what has been given as the reason by government as to why family subsidies should exist. However, if paying people to produce actually worked then our population would show a net increase w/o immigration.

#283 Souvereigninternational on 03.24.16 at 11:00 am

#32 understood by few on 03.22.16 at 5:29 pm wrote:

“Now a family at median income with one earner pays more in tax, but more well off people with their own corps can split all they want. I’m not complaining, suits me fine. If I were affected I would be moaning, …..”

and this is the problem with the so called democracy, as long as I can have it better than others it is all OK.

it works like a charm – reverse of Melvin Udall quote:

Some of us have great stories, pretty stories that take place at lakes, with boats, and friends, and noodle salad. Just no one in this car. But, a lot of people, that’s their story; good times, noodle salad. What makes it so hard is not that you had it bad, but that you’re that pissed that so many others had it good.

What makes it so palatable for you is that others have it worse.

#284 CHERRY BLOSSOM on 03.24.16 at 1:18 pm

Easier EI less waiting time to get EI. This means they will have to hire more government employees to get this done. We have become the most unproductive country in the world. Better to be on the dole than insist the government help to build the oil pipe infrastructure that wouldn’t cost taxpayers a cent. Us wrinkles talk at the grocery store and we just shake our heads at what our country has become.

#285 The Lazy Taoist on 03.25.16 at 10:15 am

One of your best posts! Interesting times. Scary times. Sad times. Woe the millenials. They have no clue what’s going to hit them.