Wild Bill, our finance minister, is in the throes of preparing the second T2 budget. The first, as you recall, created a new special, punitive, tax-success bracket for the 1% of people making over $220,000. It hacked the TFSA contribution limit by half, wounding our most democratic tax shelter while shipping off fat cheques to people with kids, giving a mild tax break to some middle-class families, and setting us on a course of serious deficit financing.
In short, the perfect liberal budget. Now there’s more. The next one will turn on the spending tap further since job creation last year sucked, reduce corporate tax breaks and bring in the Doctor Tax, lowering the boom on people who get paid through professional corporations. In so doing, the contrast between us and the deplorables to the south will widen.
(The speculation is that the T2 gang will target people like docs, IT contractors, other medical professionals and self-employed entrepreneurs who spread tax by taking dividend income, employing family members, giving relatives non-voting shares and others things lefties don’t get and are therefore evil.)
Bill Morneau must also contend with two big ifs. The first: if his mortgage reforms and moister stress test work, the real estate juggernaut will continue to slow with widespread economic implications. Like job loss, reduced consumer spending, lower federal tax revenues. Housing accounts for more jobs now than manufacturing or oil & gas. So a soft landing (or worse) will bite.
The second: if Trump turns out to bite as he barks, Canada gets it. Things to worry about: the fate of NAFTA. The Border Adjusted Tax. And plans for a giant US corporate tax cut.
But first, let’s have a word from one of my fancypants portfolio managers, Ryan Lewenza, a sometimes weekend guest blogger here who this week put on a $3,000 suit, tore himself from the arms of his trophy wife and piloted his Porsche downtown from his mid-town mansion long enough to visit the vapes at Bloomberg TV. Ryan told them Canadian stocks will be okay this year, despite the Trumpinator. Here’s why.
So oil may hit seventy bucks, and that will help the resource-heavy TSX. Great. Good for balanced portfolios (BTW, we recently moved Canadian exposure a little higher). But stocks can sometimes richly reward at the same time the economy blows. Like last year. Bay Street rocked, shooting ahead by about 20%, even as the economy slouched, wages were flat, household debt rose and employment stalled.
So what can Trump do to us?
Well, destroy the car business here by applying a tax on new vehicles shipped south. That became real Friday as Trump spokesguy Sean Spicer said this on a conference call with reporters: “A border tax will apply when a company that’s in the U.S. moves to a place, whether it’s Canada or Mexico or any other country seeking to put U.S. workers at a disadvantage.” It was the first time the word “Canada” had been used by anyone in the new administration other than referring to the fizzy stuff you mix with bourbon. This is a giant deal since car makers here export more than $60 billion worth of vehicles to the States, employing tens of thousands of skilled (highly-paid) workers.
Just this past week Honda announced a $400 million expansion at its Ontario plant. What if a Tweet flits out of the White House two weeks from now alleging that’s stealing jobs from US workers at Honda plants in Alabama or Ohio?
Then there’s the BAT, the Border Adjusted Tax, currently gaining traction among Republicans like powerful House Speaker Paul Ryan. If implemented. US companies buying Canadian stuff could no longer write off the cost of that product when calculating taxes. But if they bought American, they could. Ouch.
That would be equivalent to a 15% tax on Canadian goods – slightly less than the 20% border tax Trump has vowed on cars entering America. Imagine the impact on $400 billion in Canadian exports.
Finally, the tax corporate cut central to Trumponomics is also a threat. He plans to slash the rate form 35% to just 15%, which is way lower than the current federal-provincial levy in Canada – making our stuff less competitive, and encouraging right-minded business dudes to head south.
Meanwhile, what are we doing?
Right, increasing the tax rate on entrepreneurs, the self-employed, the successful and corps. At least we’re progressive. And morally superior. I’m sure that’ll save us.
148 comments ↓
It sure takes a lot of borrowing and spending by Canadian households, businesses, and governments (all levels) to keep the economy growing.
Canadian annual gdp at the present time is approximately $2 trillion.
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/indi02a-eng.htm
In the 1 year period from the end of September, 2015 to the end of September, 2016 the Canadian economy grew by approximately 1.5%. (ie: the size of the economy grew by approximately $30 billion.)
http://business.financialpost.com/news/economy/canadas-economy-grows-3-5-per-cent-in-third-quarter-beating-expectations
In this same 1 year time frame the total debt outstanding in Canada grew by $355 billion. For each $1.00 the economy grew in this 1 year period the total debt outstanding increased by $11.83.
Looking at just the total debt outstanding of domestic non-financial sectors in Canada. In the 1 year period from the end of September, 2015 to the end of September, 2016 the total debt outstanding of domestic non-financial sectors increased by $250 billion. For each $1.00 the economy grew in this 1 year period the total debt outstanding of domestic non-financial sectors increased by $8.33.
http://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
(Nov. 6, 2008)
The Queen spoke for the nation yesterday when she asked how the credit crunch could have taken so many economics experts by surprise.
She described the financial crisis as ‘awful’ and inquired that, since the meltdown was so massive, ‘Why did nobody notice it?’
http://www.dailymail.co.uk/money/news/article-1646332/The-Queen-Why-didnt-we-see-awful-crunch-coming.html
Oohhh! Jack the taxes on parts crossing the border into the US.
Maybe auto manufacturers will turn around and invest in things like R&D and engineering in Canada, paying 70 cents on the dollar (or less) for world-leading intellectual property, transferred electronically, or by telephone to plants in the US, where workers making 60% less program machines to do the heavy lifting.
React, adapt, overcome. That is all.
2019 cannot come soon enough
Garth can you do a blog on Central banks…I believe a lot of mistrust in the financial system begins and ends here.
Are they an evil empire and secret society or just misunderstood?
So are you saying let us follow Trump in a race to the bottom??
Seems counterintuitive to say Canadian stocks will be a good place to be. This is a blog that has been warning about the impending housing correction, while trumpeting the safety of Canadian equities.
Correct me if I am wrong, but cascading home prices and highly leveraged citizens dependent on every increasing home prices for their jobs is not a recipe for economic progress.
Maybe it is different this time…..
The housing correction will have minimal impact on broad corporate profits or the TSX. — Garth
The Bloomberg presenter was very brave to be sitting in such close proximity to InfLewenza during flu season without a mask on.
I see a few sick days in her future…
M42BC
Note this may affect Winnipeggers as well, since New Flyer Industries manufactures buses here and ships them to the States.
Also, Motorhomes are assembled in Canada(I believe in the province of Quebec) taking advantage of the low loonie and shipped to the States. (as an aside, read greaterfool post from Oct.2015 for more info)http://www.greaterfool.ca/2015/10/23/pooched-5/
Garth, way to push the deplorables buttons…
$3,000 suit…trophy wife…Porsche…mid-town mansion
ouch!
Oil up to $70?
American frackers and cheating OPEC nations have already make it sputter and struggle to stay above $50. An it had to be manipulated and rigged to get it that high. Left to their own devices without pacts and agreements, oil producers would punch it back down under $30.
I don’t see this happening.
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‘We need to phase them out:’ Trudeau draws fire over oilsands remark during Ontario town hall
http://business.financialpost.com/news/energy/we-need-to-phase-them-out-trudeau-draws-fire-over-oilsands-remark-during-ontario-town-hall
Isn’t this the opposite of what was said as recently as yesterday?
A border tax will apply when a company that’s in the U.S. moves to a place, whether it’s Canada or Mexico or any other country seeking to put U.S. workers at a disadvantage
I think the language was very specific and purposeful here… Automotive companies are already in Canada, and I’m doubtful that cross-border Unions would allow so many of their “brothers” to lose their jobs.
Plus, a car built in Canada is built with US parts… which means less work for the Yanks who build those supplies.
I think a lot of this is just posturing.
$3,000 suit! Ok. My pants are not that fancy.
Nice post Garth. This country is soon to get a hard lesson of the negative consequences of heavy tax and spend. Socialism hard at work until we are all equally poor.
Probably will all unravel about the time T2 disappears in 3 years. Heavy, heavy deficits will see him through.
Imagine the impact on $400 billion in Canadian exports.
—
Garth, the full picture is to mention the value of US export to Canada, as the tax would go both directions, I would assume.
Canada does not have real car industry, we basically just host other countries real car industry outlets and subsidize them with Canadian tax payers money.
It will be up to those countries to decide on the suitable strategy under the Trump economy.
That’s what happens when you become 3rd world-style assembly location economy, instead of developing your own and rely on the goodwill of secretly negotiated free trade agreements.
We get it, you don’t want to pay a few more points in taxes. You’ll get tonnes of sympathy from the other 97% of people.
If we get hit with tariffs/BAT we’ll just do a reciprocal tax to let the US know we liked the status quo. Meanwhile Americans will realize the less free trade means higher prices on goods and the only people benefiting from cutting the top tax brackets are top earners. Not to mention that with such drastic cuts their spending will have to plummet and therefore their services. People on the bottom will be crushed. He’ll be a one term president.
I wish T2 would grow a set- seems all touchy feely and ” lets all just get along and be friends” while Trump is looking after his country. Respect.
I know, everyone is nice in Canada, but political correctness and some of his policies are brutal. But I guess in the end, the public voted him in.
What ever happens in Canada in the next years, remember that. All the politicians selling out BC to China and T2 doing, what ever he is doing, is all because the public (voters) allowed it.
In 2-3 years, look in the mirror when you are not happy with the way things are going.
corporate net tax in Canada is already 15%
the US will be matching Canada’s rate
not good for Canada either way because the tax advantage is moving South
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/rts-eng.html
Canada federal tax is 15%. Provincial tax adds 11% to 16%. — Garth
Great.
They’ll tax us coming and going.
Inside Canada and outside Canada.
Its gonna be an interesting year for the Canuck buck
And we’re also ‘phasing out’ the Alberta oil sands.
Another brilliant idea from the nutcase leader.
The US is looking really good and Canada is looking really bad.
Maybe time for the West to look to the south for a partner.
Canada would be rid of the oil sands and its nasty carbon footprint would be much lower, which would make everyone so happy.
I expect the US would welcome a new state with huge energy reserves in the ground , which has one of the youngest and most educated demographics in the world.
Frankly, the US is looking more and more like the better option.
Trump has big problems he could never fix.
For starters, the U.S. stock market with corporate debt through the roof and U.S. stocks incredibly expensive.
Ideologues like Nutley and Glamboy just don’t get it. Raising taxes does not create value (if anything it destroys it). All raising taxes on the so called “rich” does is force them to raise their prices. So now the “poor” can expect to pay their divorce lawyers more. Probably their plumbers too.
Raising taxes on doctors only leads to higher health care costs. And of course anything that costs more generally forces a shift in the supply/demand curve so we could end up with less doctors.
We here in Alberta are facing a breath-taking 2 year tax increase program as Nutley raises income taxes more than anyone ever has, has imposed a ridiculous carbon tax (the US and the Chinese must be laughing their arses off) and Glamboy comes for some federal increases as well. This in an economy where unemployment is already 10% (much higher if you count those not collecting UI) and our main industry is dying on the vine.
And you know what Nutley wants to do with all that extra money? Build windmills and solar panels. What a complete waste. Oh and shut down coal plants prior to their economic end of life because gas plants emit slightly less CO2.
This is a triple waste of capital of epic proportions. Shutting down a perfectly good coal plant before its’ time and replacing it with a gas plant is a waste of whatever the gas plant costs. Then building a windmill to offset the gas plant is a waste of whatever the windmill costs (you still need the gas plant for when the wind isn’t blowing). Then building solar panels is a waste of whatever the solar panels cost because they only really work in the summer at this latitude and only work at all in the day so you still need the gas plants. It just proves we elected someone who has no sense at all, just a muddle of ideological nonsense running loose in her brain.
There is a further problem with Nutley’s nonsense in that these changes, at great expense, could jeopardize the stability of the Alberta grid. Not many people are aware of it, but in order to get through the winter vast quantities of natural gas are injected into underground storage facilities every summer when demand is low to meet demand in the winter. Now that we are going to be generating all of our peak load electricity from natural gas, those facilities also need to be greatly expanded in yet another colossal waste of money, or a colder than normal winter could result in not enough gas to get through the winter. This means we would have to curtail exports, damaging Alberta’s image as a reliable supplier.
With coal you don’t have that problem, if it’s colder than normal you just scoop a few extra loads off the pile and dump them in the boiler. You can store the coal above ground, all you need is a pile. A big pile mind you but it’s way cheaper than underground gas storage. This is why coal has been the backbone of the electric industry since inception. So when you decide to replace a perfectly good coal plant with a gas fired generator, you also need to build a big gas storage facility and those ain’t cheap. They probably cost more than the gas generator and good geology is in short supply. A number of people are going to get very rich off of all this nonsense but for the vast majority of us energy prices are going way up and grid reliability is going down.
All of this just goes to show what happens when you let ideologues with a grade 3 level of knowledge of the energy industry, engineering, and economics set policy.
Bad times are ahead for Alberta.
hmmmm, putting the screw to us business people eh?
why would we want to do business people in Canada? Take away every perk for taking the risk of self employment?
We can’t all be part time drama teachers getting union wages.
Trudeau sucks the big one
What are we doing ? Easy I will tell you:
-The classic Marxist playbook of stealing private assets.Liberals and most politicians in this country are actually communists and fascists but use the word s Liberals and Progressives to deceptively fool the public
-while these corrupt socialists and other statist crooks pretend to sell this as beneficial to an illiterate population, it is all about self preservation of a corrupt and oversized state that refuses to accept it is the problem. Govt becomes a tool to extract wealth from the productive but politically unconnected segment
-interest charges and rapidly escalating health care and pension costs will guarantee that the never ending tax inceases and aggressive totalitarian actions will keep coming and get more brazen as they get more desperate
-the inevitable sovereign debt crisis results in a full blown police state
-and you are counting on these people paying you a pension in anything other than Monopoly money ? You think that they will sit there and watch your stocks inflate your raps and TFSAs without helping themselves to your savings ?
History shows that the cycle in its final phase always results in govt taking over pensions and private retirement savings. If you have under 100k don’t worry buy if you have a “big” RSP or TFSA watch out
–
Good report, Garth. Maybe someone should give you national syndication?
Based on your excellent reporting, I make the following predictions:
1. Plenty of whining infantile socialists.
2. Temporary suspension of Parliamentary pot parties.
3. Nation-wide orderly rioting.
4. Kevin O’Leary as PM.
Maybe you should write a piece on how things were before NAFTA for the younger readers?
I’ll sum it up quickly. A stronger, more diverse domestic economy where everything costs more. It’ll take a while to transition especially with the current government.
The nanny state might finally be nearing it’s end.
If trump passes that corporate tax cut, i guess my company is heading south.
BRAIN DRAIN
I hope Ryan’s wife is OK with the “trophy” label!
Trump should be careful. Difficult to build an engine or transmission plant overnight. The U.S. is a large country with a large population which consumes lots of product which we provide. We have been a relable, steady friend for many years, something I am sure they will consider.
IT contractors targeted? Well, it’s about f&^$#^ time. I’m one of them. Have been for the last 4 1/2 years. I use to work for the provincial government for nearly 30 years and then my position was obliterated so I took early retirement. As a full time employee, I used to see the IT contractors making huge money and I learned that they paid comparatively little in taxes. Some of them, with very aggressive tax strategies, paid very, very little. So, I decided to join them. First thing I did was to incorporate. Then I worked out some basic strategies with my accountant, such as splitting income with my wife and writing off many things like my computer, car, restaurant meals, etc.. Nothing too crazy, though. I also defer some personal income and leave it in the corporation until I really retire further down the road. I kind of feel like a crook doing this, but it’s all legal and all IT contractors do it. I welcome the closing of this loophole, if it really happens, as I feel that everyone should be paying their fair share of tax. Bring it on.
#8 The Greater Cauliflower on 01.13.17 at 6:35 pm
Note this may affect Winnipeggers as well, since New Flyer Industries manufactures buses here and ships them to the States.
Also, Motorhomes are assembled in Canada(I believe in the province of Quebec) taking advantage of the low loonie and shipped to the States. (as an aside, read greaterfool post from Oct.2015 for more info)http://www.greaterfool.ca/2015/10/23/pooched-5/
Garth, way to push the deplorables buttons…
$3,000 suit…trophy wife…Porsche…mid-town mansion
ouch!
————————————————-
Big honking executive and rock star million dollar motor coaches come from Prevost in PQ down near Lac Megantic yes, but motor home mom and pop camper stuff all comes from Indiana. All of it.
Not important .
The gospel of garth hits the big time.thats newsworthy!
http://www.businessinsider.com/my-husband-and-i-are-millionaires-heres-why-we-have-no-plans-to-buy-a-home-2016-9
With the way things have been going south of the border, we may not see the God Emperor take his righteous place on the throne.
It seems the Deep State has mobilized all of its reserves and operatives to discredit the new president; all of the apparatchiks and appointees in the so-called “intelligence community” are complicit in the Russian stunt to force Trump’s compliance on broad policy objectives which the un-elected Deep State pursues across decades.
With Trump not willing to yield on antagonizing Russia and supporting armed extremists in Syria – his life is now in danger.
These are extremely dangerous times. The outgoing Eisenhower warned us of this shadow government.
May the Emperor protect.
Here ya go Trump, fix this:
http://mountainvision.com/obamas-legacy-make-mind/
Doug in London and investments
#151 Doug in London on 01.13.17 at 4:46 pm
************************************
Thanks for the response. Sounds like you have done very well.
And it goes to show that just because most people don’t do well in mutual funds does not mean some people did not do VERY well.
Also some years ago there were very few ETFs.
Speaking of ETFs and the old days… The Toronto Stock Exchange (and NOT the U.S. stock exchanges) were actually the first to list ETFs. These were The hundred Index Participation Units (HIPs) and the Toronto Index Participation Units (TIPs) listed circa 1989. I believe these pre-dated S&P 500 and DOW ETFs by several years.
Nice Job Ryan.
Huh, how come Doug never gets on TV. Does he stutter. By far Doug is better at word smithing.
All in all you guys are pretty good.
…
Side note. They let me back into Seneca after I wizzed in the stair well and going to the check in counter for a new key almost naked. One flip flop and tee shirt. It must have been a horific sight.
Which sort of is freaking me out. People have gotten life time bands for doing far less.
Question now is, how much does Mrs Smoking Man piss away in here, it’s got to be huge. I better look into this..
More on T2 and Lord Trump after a few more drinks.
I remember reading an article last year stating that there are less than ten countries on the planet that can manufacture an entire car.
Possibly seven.
Canada is obviously on that list ,but Australia is supposedly shutting the last of its plants down this year and will become more of an importer from Asia which was already happening.
It will be interesting to see if Canada is still on that list in a decade or so…
M42BC
Trophy Wife
#27 Lisa on 01.13.17 at 7:27 pm said:
I hope Ryan’s wife is OK with the “trophy” label!
***********************************
Wouldn’t you be? Besides, I this is all a bit tongue in cheek. A caricature, if you will. For the imagery.
#2 Smartalox
Intellectual property, or more properly those who generate it, have typically always moved from Canada to the US. And as the Blackberry proved, it is just a subtle form of Canadian arrogance to believe we think up things better than other people in the US do. They had every opportunity to maintain their lead in smartphones but they forgot the consumer market and only focused on businesses, but Apple and Google didn’t. What killed RIM was when people started insisting they have the consumer friendly products from Apple instead of the email tool from RIM at work too. RIM made some pretty good phones towards the end in an effort to catch up, but it was too little too late.
Or watch the movie or read about the Avro Arrow. All those engineers ended up in the US working for NASA or US companies.
Canada has no history of out-innovating anyone. Whenever we do, somebody in California or Texas just copies and improves it. Believing we can transform our economy from one where we did up valuable resources and ship them south to one where we lead the world in technology is just pie-in-the-sky day dreaming. What have you invented that is taking the world by storm? Ya me neither. No that’s not true I invented 2 highly useful (but very specialized) analytics programs but both are now owned by US companies and I have about as much to do with them as John has to do with McAfee at this point.
Apple and Microsoft aren’t going to move any R&D to Canada. They are going to do what they always have, which is to move the Canadians they want to California and Washington.
RE: “Well, destroy the car business here by applying a tax on new vehicles shipped south. That became real Friday as Trump spokesguy Sean Spicer said this on a conference call with reporters: “A border tax will apply when a company that’s in the U.S. moves to a place, whether it’s Canada or Mexico or any other country seeking to put U.S. workers at a disadvantage.”
Good luck with that. The United States ships tons of cars up here every year. They tax us, we tax them. Trump’s just starting a trade war. While being leader of a country that relies on its ability to trade freely with the world. Right. That will end well.
They tax us, we tax them.
The USA has started trade wars with Canada and with other countries before. They always end the same way. USA is very happy because they are taxing an imported product. Yay. Then we start taxing one of their products that they import here. Sob and cry! American jobs are lost, emergency meetings are held and we talk things out.
Here we go again….
Budget, smudget: … I’m just looking forward – with great trepidation – to seeing just how batshirt crazy it’s going to get. In Truplandia, of course, … and Trudeauestan as the result, too!
Anyway, … if you are a current student of official propaganda, manipulation of public opinion, psychological conditioning, and emotional coercion, … it doesn’t get much better than right now! [ … of course, the goal of all this machination is to deceive the plebs into believing things that are not “the truth”, … but I digress. Forgive me, …]
F.S. – Comox, BC.
#23 mortgagebroker on 01.13.17 at 7:11 pm
hmmmm, putting the screw to us business people eh?
why would we want to do business people in Canada? Take away every perk for taking the risk of self employment?
We can’t all be part time drama teachers getting union wages.
Trudeau sucks the big one.
……..
He’s clueless. T2 I pay taxes on my consulting income and don’t cheat. I do get the odd govt gig so it’s not worth it.
But the communist only know how to take. No clue on risk. In trading If I make a big bet and lose they are not there for me . If I win they run overthemselves to get a piece of your action.
Never set up a trading account in Canada or the USA. Unless you go with a balanced portfolio. You Wana go 400 to 1 margin and bet the farm.
Find a nice sunny island with a sub partner you can trust who’s name is on everything.
A glorious retirement awaits. The bummer. You can’t come back to Canada to collect your 500 a month pension.
Pure sucrifice I say.
But it’s 2017!
Can’t we just tax straight white males every time they don’t use the right pronoun?
JT’s finally coming out of the closet, the Marxist closet.
Don’t worry though, Canadian Millennials are too busy picking out the right kitchen counter tops and watching The Social and Your Morning to even bother reading up on this.
The TV says Trump is bad, so Trump is bad.
“The housing correction will have minimal impact on broad corporate profits or the TSX. — Garth”
Garth! please elaborate! this would make an excellent post!
In case you were uninformed, small business is the backbone of America.
Small businesses comprise what share of
the U.S. economy?
Small businesses make up:
99.7 percent of U.S. employer firms,
64 percent of net new private-sector
jobs,
49.2 percent of private-sector
employment,
42.9 percent of private-sector payroll,
46 percent of private-sector output,
43 percent of high-tech employment,
98 percent of firms exporting goods,
and
33 percent of exporting value.
Source: U.S. Census Bureau, SUSB, CPS;
International Trade Administration; Bureau
of Labor Statistics, BED; Advocacy-funded
research, Small Business GDP: Update 2002-
2010, http://www.sba.gov/advocacy/7540/42371.
How many small businesses are there?
In 2010 there were 27.9 million small
businesses, and 18,500 firms with 500
employees or more. Over three-quarters
of small businesses were nonemployers;
this number has trended up over the
past decade, while employers have been
relatively flat (figure 1)
In The USA, self-employment is truly what makes the country run and grow. In Canada, we drive a truck over that idea until it is dead. I guess we all should be slave to a paycheck & if we are, then employers can pay less and less with higher demand for those limited available jobs.
#20 AB Boxster on 01.13.17 at 7:02 pm
“And we’re also ‘phasing out’ the Alberta oil sands.
Another brilliant idea from the nutcase leader.”
JT approved the twinning of the Kinder Morgan Transmountain pipeline last month, tripling the oil shipments to the Asian markets:
https://www.transmountain.com/expansion-project
That does not strike me as the behaviour of someone trying to “phase out the Alberta Oilsands”.
——————————————————-
#22 Nonplused on 01.13.17 at 7:11 pm
“Bad times are ahead for Alberta.”
With the Construction Boom coming to Fort Mac this spring/summer, the approved pipeline projects in the works and oil above 50$, I think rather the opposite will happen: 2017 will be a good year for Alberta.
You are underestimating Alberta a lot. You can seek comfort in knowing you aren’t the first one to do that!
Trump will not do anything to Canada with regards to auto taxes. He knows full well Canada will reinstall the auto pact which will be a manufacturing economic boom of activity. If that were to happen the lies of free trade would crumble to the ground and Canada would be booming economically . Taxing Canada would mean jobs jobs jobs as free trade would be dead. Real jobs producing real things not buying and selling condos to each other .
#23 mortgagebroker
PLEASE If you are a mortgage broker then you are useless. The government should shut down CMHC and then you can conduct business in the open and free market. Let’s see how much buisness you can do without the government taking all the risk.
http://www.chatelaine.com/home-decor/what-a-1-million-home-in-toronto-and-vancouver-looks-like-now-and-sold-for-then/
Bring it on.
We used to make TV’s, hospital beds, fridges, industrial machinery, plywood, furniture, shoes, knit wear and all kinds of things here in this frosted paradise to serve our own Canadian market needs at product and food prices that a working parent could pay for on their salary. Now it takes 2 plus, with no end in sight. We are in the era of global money rot.
Yet, in the last 30 years car plants still got shut down, the industrial bas was globalized and shrunken to a lobotomized state Export lumber was still “gangster punked” at the border despite agreements very year compliments of NAFTA fraud.
Tariffs and sales hurdles work both ways. Canada can stop a lot of US products like it used to since 1867.
Yes, it would be painful, but like BREXIT, a CANEXIT would have obvious economic minuses, but a lot of other adjusting gains. For instance we can stop Americanizing our hyper-security military and police complex and bloated medical care industrial complex. We can focus on trade alliance with the other 120 plus sane countries like Norway, Caribbean, Australia, Ireland, or Taiwan as trading partners for product and scales of economies matching our population and mutual needs.
Enough of colossus empire and supporting the mega tax suffocating state. Big government systems are dying from their own self serving bloat and legislative Alzheimer’s.
Politicians are insane and pathological. It is time to retool.
‘Or watch the movie or read about the Avro Arrow.’
——————————–
Aside from the part at the end about the engineers moving on to work on projects in the US and Britain / France, that movie is just a pile of fiction masquerading as a documentary. It’s about as accurate as a Disney film where some kids would succeed at building their own rocket to get to the moon.
#41 Smoking Man on 01.13.17 at 8:03 pm
#23 mortgagebroker on 01.13.17 at 7:11 pm
hmmmm, putting the screw to us business people eh?
why would we want to do business people in Canada? Take away every perk for taking the risk of self employment?
We can’t all be part time drama teachers getting union wages.
Trudeau sucks the big one.
……..
He’s clueless. T2 I pay taxes on my consulting income and don’t cheat. I do get the odd govt gig so it’s not worth it.
But the communist only know how to take. No clue on risk. In trading If I make a big bet and lose they are not there for me . If I win they run overthemselves to get a piece of your action.
Never set up a trading account in Canada or the USA. Unless you go with a balanced portfolio. You Wana go 400 to 1 margin and bet the farm.
Find a nice sunny island with a sub partner you can trust who’s name is on everything.
A glorious retirement awaits. The bummer. You can’t come back to Canada to collect your 500 a month pension.
Pure sucrifice I say.
…
So what’s keeping you?? Schlong branch is your future.
I know a guy who has a trophy wife, so of course he also ended up with consolation-prize kids.
#42 Long Branch Apprentice on 01.13.17 at 8:03 pm
But it’s 2017!
Can’t we just tax straight white males every time they don’t use the right pronoun?
JT’s finally coming out of the closet, the Marxist closet.
Don’t worry though, Canadian Millennials are too busy picking out the right kitchen counter tops and watching The Social and Your Morning to even bother reading up on this.
The TV says Trump is bad, so Trump is bad.
……
Be careful with the pronouns. After bill c16 gets past. Any lefty hethons that don’t refure to me as a Dr Nictonite. Your getting charged criminaly for a hate crime.
Rediculos as it may sound. It’s the law by loons.
I may even go to the nearest trans people goroup meeting. Keep my mouth shit. Film it. And send the loonatics to jail for refusing to accept I’m an alien.
#20 AB Boxster on 01.13.17 at 7:02 pm
And we’re also ‘phasing out’ the Alberta oil sands.
Another brilliant idea from the nutcase leader.
The US is looking really good and Canada is looking really bad.
Maybe time for the West to look to the south for a partner.
Canada would be rid of the oil sands and its nasty carbon footprint would be much lower, which would make everyone so happy.
I expect the US would welcome a new state with huge energy reserves in the ground , which has one of the youngest and most educated demographics in the world.
Frankly, the US is looking more and more like the better option.
^^ ^^^
Once they find out about Freedom First, they’ll drop you like a hot potato.
What can Canada do to fight Trumps tax war.I guess we can do the same to the USA.I guess the best times to have lived in Canada was the 50’s,60’s and 70,s.Will we ever see great times like these again?I hope so.
The demise of NAFTA?, border adjustment taxes, higher taxes and carbon taxes, hydro rates climbing out of site with increases every 6 months, Liberals and socialists everywhere, our deficits exploding with our Finance Minister predicting Canada’s national debt to blast past 1 trillion dollars down the road!
I think it’s almost time to leave here. My wifey (American) and myself (Canadian) are putting together our plan to leave Canada. America ……. here we come!
This will be fun, as there will be 38 subway closures in Toronto starting this year because the system sucks and needs renovations done mainly on line #1.
“Can Trump tear up NAFTA?” Here is a blawg by two international trade lawyers at Bennett Jones that is short, readable and in plain language. Interestingly, the POTUS can do a thing or two without Congressional support.
https://www.bennettjones.com/Publications%20Section/Blogs/Trump%20Canada%20and%20the%20Future%20of%20NAFTA%20Some%20FAQs
#51 Faster than light tesla. on 01.13.17 at 9:06 pm
So what’s keeping you?? Schlong branch is your future.
…..
I don’t think so. There is an Isand somewhere with wee mansion being built with a helly pad and a thousand foot run way for ultra light aircraft being build right now. Shlong Branch getting renovated for the next greater fool.
It’s time to retire. I can’t live in country with so many mental cases.
Teachers win. They drove me out. But I’ll have a good internet to torment all the freeks of nature up here.
The last chapter, amazing when a plan comes together.
I’ll say more when I’m safe from the claws of thieving librals.
Doctors have warned Wild Bill that they will move south if he takes away they tax reduction privileges like splitting income with family members. Docs hate paying taxes (i.e: paying for their own wages – the rest of us schmucks have to pay)
#29 I don’t know
“I kind of feel like a crook doing this, but it’s all legal and all IT contractors do it. I welcome the closing of this loophole, if it really happens, as I feel that everyone should be paying their fair share of tax. Bring it on. “
Not all consultants to it and you are wrong that it’s all legal. Rules were put in place in 2011 regarding Personal Service Corps. I think the CRA waited a few years , so when they come, they’ll get their pound of flesh. As a business owner you should keep abreast of the laws of the land and not depend on an accountant.
Did you modifying how you run your business in 2012? If the CRA comes for an audit and your corporation is deemed a PSC, you’d have years of taxes to pay.
http://www.thebluntbeancounter.com/2012/01/is-your-corporation-personal-service.html
https://www.thebalance.com/costs-of-declaring-a-personal-service-corp-2948621
Owe Canada: For each $1.00 the economy grew in this 1 year period the total debt outstanding increased by $11.83.
lets say for every $1 the economy grew, the total debt increased by $12. Obviously this cannot continue.
Nonplused: talking about Alberta: This is a triple waste of capital of epic proportions. Shutting down a perfectly good coal plant before its’ time and replacing it with a gas plant is a waste of whatever the gas plant costs.
talking about Ontario, I thought that shutting down the coal-fired plants was premature. You have long-term contracts for the coal, you have skilled people to run the plants and you have the plants themselves. Ontario Liberals just threw them away!
with wind and solar energy you have to have turbines up and running to replace them in an instant – an hour later won’t do!
Green Card: Or watch the movie or read about the Avro Arrow. All those engineers ended up in the US working for NASA or US companies.
this was a huge loss for Canadian aero-space! It would have taken determination and sacrifice to develop the Avro Arrow. John Diefenbaker just wasn’t up to the job.
When have we seen a Canadian politician talking about determination and sacrifice? We haven’t. In fact the message is the opposite: “simply push the right buttons and all will be well”.
Garth, how much do experts need to pay to Bloomberg news in order to enjoy the pleasure of being interviewed in their show?
Zero. — Garth
For all you old farts who “think” you had it rough…..
https://www.rt.com/usa/373652-millennials-earn-less-baby-boomers-report/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome
Well, one more reason to move out of BC…
http://www.cbc.ca/news/canada/british-columbia/oysters-lead-to-dozens-of-cases-of-illness-bccdc-1.3934469
This is probably because VREU has been pooping in the Ocean.
I use to work for the provincial government for nearly 30 years and then my position was obliterated so I took early retirement. As a full time employee, I used to see the IT contractors making huge money and I learned that they paid comparatively little in taxes. Some of them, with very aggressive tax strategies, paid very, very little.
Smart! IT is the place to be to make $$$. Glad you made the change AND got the government pension. Congrats!
Canadian workers might benefit from pushing for trade reciprocity with our trading partners. Free trade has been pushed as a way to expand the economy by exporting more than you make.
Trump wants to address these trade imbalances to keep America strong. He knows that once you lose the capability to make a product, you can’t suddenly turn on a tap and start making that product again. The skilled workers are long gone and the technology has passed you by. Every industry has to keep in the game.
Canadians and their elected leaders have been too willing to let our industries die because someone else can make it cheaper, even if it is not always made better. You can’t import your way to greatness. Greatness is earned by achievement.
Trudeau should allow 1 million immigrant a year ,it will increase job. https://www.liberal.ca/realchange/a-new-plan-for-canadian-immigration-and-economic-opportunity/?shownew=1
In defence of going after the contractors avoiding tax through dividends, the numbers of these people has absolutely exploded in the past 10 years. I knew of one instance where the entire upper management of an oil engineering company (all six figure+ earners) were “contractors” in order to take advantage of the dividends loophole. Do you think that is right?
There is currently only one group of people in Canada really paying taxes anymore: the middle class salaried wage earner, and outside of government offices, this kind of person is disappearing faster than the dodo bird. This leaves a small, shrinking segment of the population holding the tax burden. Not fair, and not sustainable.
Something needs to be done.
DELETED
Garth, any thoughts on IRAP and SR&ED?
Deleted you bugger. That acctuly happened.
Hahaha.
Garth, you should have seen her face when I demanded she should consider a diet.
Please share the delete with Ryan and Doug.
This should come as no surprise to anyone who was paying attention to what this little Marxist was saying during the campaign:
CBC’s Peter Mansbridge asked Liberal leader Justin Trudeau where he stood on reducing taxes for small businesses.
In his shocking answer, Trudeau showed how out of touch he is when he said that many “small businesses are just tax avoidance scams.”
https://www.youtube.com/watch?v=wUKkQEHV_as
#24 Debt man
Bingo…..
I fully agree….they know what you have in GOVERNMENT REGISTERED RRSP’S AND TFSA….
With not enough cashola in the coffers to pay out, it has to come somewhere….”hey, you have enough and need nothing….thus you will receive nothing!”
Too all fiction writers. No matter what your stage of evolution is in the world of thumb typing is.
Remember this tune. Have it on the buds when I feel like going nuts. I havent made it yet. That’s after my death. I see shit.
https://youtu.be/_FydwthgLeM
On another note – Is The 35-Year Bull Market In Bonds Dead? The ‘Godfather of Bonds’ Gary Shilling Responds:
https://www.youtube.com/watch?v=8tpm2IoK3wE
(spoiler: no)
Um like trump. Oleary not wanting my help. He’s got a thing against lushes and smokers.
Lisa your next pm, unless he figures it out.
I won a draw on homestars.com and they sent me this dyson thingy that blows hot and cold air. saw it had a packing slip on the side and it was purchased from the bay. went to the mall today and brought it back. they gave me a $790 gift card. time to start rocking the classy white undershirts..
Relax
https://youtu.be/oh4tHpUflDA
Connecting the dots: trumps cabinet is loaded with many experienced corporate executives. business is business
The United States is not going build a trade wall around itself,while the rest of the planet advances free trade.
I am sure they intend to do things that are advantageous
and the trumpinator is putting on his best stanfields to get ready for the fight schedule 2017 will be interesting
#59 Smoking Man on 01.13.17 at 9:31 pm
#51 Faster than light tesla. on 01.13.17 at 9:06 pm
So what’s keeping you?? Schlong branch is your future.
…..
I don’t think so. There is an Isand somewhere with wee mansion being built with a helly pad and a thousand foot run way for ultra light aircraft being build right now. Shlong Branch getting renovated for the next greater fool.
It’s time to retire. I can’t live in country with so many mental cases.
Teachers win. They drove me out. But I’ll have a good internet to torment all the freeks of nature up here.
The last chapter, amazing when a plan comes together.
I’ll say more when I’m safe from the claws of thieving librals.
…
You’re a pilot!?
Were you that drunken sunwings pilot few weeks bacK?
On this whole issue of which generation currently has it tougher, Wrinklies like me and my wife vs. early 20’s types in Canada. Not even close for us. I am 60. My wife is 61. My son is 23 and daughter is 21 (my wife and I were slow on the uptake in the progeny production side of things). The kids are facing old clothes and porridge. We coasted through cheap Uni, into lovely jobs in an expanding economy at a time when salaries increased every year, and now are on the cusp of receiving old fart welfare courtesy of the youngsters.
Youngsters, never trust anyone over 30.
The bad ole days were in fact the good ole days, by far.
Oh great! I’m a self employed IT guy, who mainly gets work from the states.. I’m screwed.
Yes. Canada is bloated with overpaid union workers. It is killing its own businesses. Highest electricity rate in Ontario where most of the businesses are located. And Canada post is killing small e-commerce that could have thrived. It costs more to ship a pair of shoes within GTA than shipping it across the US. They are killing consumers too. The result isbhanding in
Over retail business to Walmart, Costco and Amazon, ok and Dollarama, but really nothing to be proud there.
There is one outcome not discussed: Trump doesn’t complete his first term due to continued eccentricity and challengers from within the Republican Party take advantage.
Several of his cabinet picks seem to have independent minds and would not mind opposing him if they felt strongly enough.
As for substituting gas for coal – it’s not so bad. One swaps out the boiler + steam turbine for a gas turbine. The rest of your plant stays, more or less. (Source: I’m an engineer). Gas has a higher energy content than coal, so now your plant is a bit more efficient.
Solar and wind tend to generate lots of physical labour intensive jobs – like trades, technicians, contractors. This is well suited to the skillsets of the casualties of the oilsand downturn. Solar/wind are especially suited to communities that are not grid connected.
That said, I’m not too optimistic about Canada’s future. Kevin O’Leary has a good chance of winning the PM contest. His ideas of a information infrastructure-based fiscal stimulus make sense.
I have to admit that as a ‘Young Turk” …Vice President” of a an investment boutique of 204 aggressive souls….that I outdid Ryan’s excesses by a wide margin. I did wear $3000 thousand dollar Italian suits custom fit by a bespoke tailor. At my most stupid zenith I drove a Rolls….and at 32 …a facade away from full retirement I married a19 year old Karl Lagerfeld lingerie super model….happily to this day. So…..give Ryan a few toys …..he certainly isn’t the biggest offender. But those of us who come from the gutter and get to climb the ivory tower….man….what a ride!
Trudeau is trying to convince Canadians that he is loyal to Obamas legacy. Biden must have done a real number on him. But I wonder how long this tactic will survive with many scientists coming out since the election and say they were coerced and threatened yo agree with the climate crazies….or lose their livelihoods. It seems that the science is not settled and that in fact only .03 % of the scientists polled agree that climate change is man made….a far cry from the boast of 97% claimed by the crazies. So will Canada be made to suffer under the delusion left behind by the Obama administration and the recency effect on our PM and his sycophants?
“…the T2 gang will target people like docs”.
Our community today announced the second walk-in clinic is closing, due to lack of doctors to staff the facility.
And another doctor–in his own practice–has reduced his working days per week by half.
T2 probably got his annual physical from the Khan’s MD.
So many unknowns about Trump. This won’t end well.
http://www.motherjones.com/politics/2017/01/spy-who-wrote-trump-russia-memos-it-was-hair-raising-stuff
good interview with mr lewenza. rock on lew. hope to see more of these. good stuff.
Canada is toast if trump was to win. With a guy like Trudeau ? Good grief .
Folks you VOTED him in. Reap what you sow . I have no empathy . Waiting on the carnage , so to speak …
Trump to Russia with Love…
http://www.businessinsider.com/michael-flynn-reportedly-had-5-calls-with-a-russian-envoy-2017-1
#28 Edward Greenspan on 01.13.17 at 7:27 pm
Trump should be careful. Difficult to build an engine or transmission plant overnight. The U.S. is a large country with a large population which consumes lots of product which we provide. We have been a relable, steady friend for many years, something I am sure they will consider.
—
I was gonna say… Canada can offer stability in a way I don’t think the States can right now. Who’s to say Trump doesn’t wake up in the middle of the night and decide to renege on a tax or tax cut or whatever, really. Or he decides for reasons known only to him to single out your company or industry for abuse? Brain drain, maybe, but would a Muslim or black or even Asian doctor want to chance it with all the animosity right now? In normal times, simple dollars and cents could draw business away, but these ain’t normal times in the U.S. Right now.
I’m also curious how long the unified front of the Republicans can hold. There’s a lot of unresolved conflict in those ranks. If Trump becomes to scattered and unreliable – pretty good odds there- some knives will definitely come out.
interesting read
civilazation that colapssed because a savire drought, last one modern day syria, but that is open for debate, 2nd to last ming dinasty mod 1600 century. probably all other than last one, the were burning coal like there is no tomorow…
its not temperature that will get us, its polution and taxes.
https://goo.gl/9QQDsC
mony pytons take on taxes
https://www.youtube.com/watch?v=pmgcylAxjfY
281,893
Lots of vacancies here. Hundreds of new condos sit empty in Calgary: https://t.co/N8Q6JPs3k8 https://t.co/4KmFbzC9KG
In 1973 I went into the Texas School Book Depository in Dallas which is the building from which Lee Harvey Oswald did not shoot JFK from. There is a small museum there. The front pages of newspapers from all over the world are displayed there with three inch headlines about the assassination.
Today in Alberta there are three inch headlines about T2’s comment the oil sands will be phased out.
The Feds will not end oil sands production. The market will and is.
Relax everybody.
Trudeau junior is a canadian Kardashian…
Some days the comments are too same and boring but today was good day. Lots of interesting stuff. A few comments from me on multiple posts.
$3000 for a suit in Canada is insane. You could fly to the far East get a fab, fashionable Italian knock-off suit made and have a lovely holiday for less. When I visit family in Vietnam I always take Vogue with me and get replicated items hand made. Choice of lovely fabrics too and one silk suit order supports that family for a few weeks.
For those yelling bring on a trade war please think. If one side has 35 million consumers and the other side has 350 million consumers, who do you think will win the war? Goliath will win and not David.
Why are they even rebuilding Fort Mac? Oil will be in the $50 range for years and at that price the oil sands are not viable and no longer even fashionable. Surely they are just building new empty buildings. Can the folk who were burned out not just take the insurance money and start a new life somewhere with jobs.
https://ca.yahoo.com/news/u-haul-evicted-man-living-225153394.html
In short, the perfect liberal budget. Now there’s more. The next one will turn on the spending tap further since job creation last year sucked, reduce corporate tax breaks and bring in the Doctor Tax, lowering the boom on people who get paid through professional corporations. In so doing, the contrast between us and the deplorables to the south will widen.
(The speculation is that the T2 gang will target people like docs, IT contractors, other medical professionals and self-employed entrepreneurs who spread tax by taking dividend income, employing family members, giving relatives non-voting shares and others things lefties don’t get and are therefore evil.)
—————————–
We knew that justIn is out of touch with reality, but going after professional corporations (these are Doctors and LAWYERS) seems like a very stupid move. Lieberals will be destroyed in long run.
If the lieberals come after non-professional corporations then Lawyers will have a lot of work suing back the federal government for their interpretation of rules (on splitting income through corporations, dividends etc.)
I do not believe that Bill M. will be that stupid.
I also believe time will come when people in the current lieberal provincial and federal governments and their family members will be refused basic services by the above mentioned doctors and lawyers.
I would refuse them such service if I am in their shoes.
A joke of a government and country.
Living in basements under ground apparently is fine,
https://www.cancer.ca/en/about-us/for-media/media-releases/national/2014/radon-survey/?region=on
while hundreds, probably thousands die each year due to radon gas poisoning.
But apparently living in a uHaul storage unit ABOVE ground is not allowed.
And just-an-idiot-in-selfie-boy is going after the climate change/carbon taxes…
#154 Context on 01.13.17 at 5:34 pm
#146 Euro observer:- I am sure glad that have no European Bonds in my portfolio, as can you spell going down the tubes? Why don’t you rent or buy a home in Marbella, Spain and tell us about the cheap living there.
————————————–
I surely will.
Call me when you can do the same in Malibu.
Both Marbella and Malibu are home to the ultra reach.
Of course I won’t expect a biased frozen brain to look at the much cheaper places in Spain, Portugal or even Greece with fantastic weather and affordability.
You have not being paying attention. T2 just proclaimed (again) he is a feminist. Clearly that is the priority of all Canadians. I can’t wait to hears T2’s dumb remarks after Trump gets through with him on his first negotiations. “Even though we lost every negotiation I am still a feminist.” Great. Thanks T2.
Canuckistanian doctors = quack pill pusher shills for Big Pharma who overbill the health (un)care system and should be taxed like the peons they exploit and maim. Just sayin’.
@#142 Proles R Fake
“But somehow 30 years of the “Criminal Clintons” goes totally un-noticed by the MSM.”
******************************************
Not to worry.
Even though the MSM has to be able to verify what they print or say so they wont be sued out of existance…
We have 20 years of unverified internet conspiracy theories that are starting to get some “legs”….
@#86 Schlock Sticker
“I have to admit that as a ‘Young Turk” …Vice President” of a an investment boutique….”
********************************************
One hopes that your “investment advice” was more accurate than your Canadian history.
Ryan Lewenza, a sometimes weekend guest blogger here who this week put on a $3,000 suit, tore himself from the arms of his trophy wife and piloted his Porsche downtown…”
Garth you forgot to mention the expensive -doo…how much does he spend on his hair treatments , and does the hairdresser get any special stock tips?
Barb: your post is a timely reminder that doctors are scarce & valuable resources. One of the things I hear from about to be retirees is that they are going to cut their living expenses by moving to a small town ‘where things are cheaper’. My husband & I discussed this. We quickly realized that while moving to a smaller community might be less expensive as regards housing costs, the cost of food, fuel, transportation & health care was likely to be much higher. Plus, the chances of our having access to a family physician in that smaller community was likely nil, as many smaller communities have no doctor, despite doing their best to get one. While I’d like to think our senior years will be healthy ones with our not needing any medical care whatsoever, it isn’t the way to bet.
So, T2, that disgusting, tatted up girly-man freak, is just turning us into Commies, man.
We must all escape to America. The Promised Land, where things will be great again!
I realize that you’re being facetious Garth, but some really do believe that we Canadians are “morally superior”………….like hell we are.
If Trump is a bully, what of the rampant, covert sort of bullying in Canada that sees sick people being delayed and denied effective treatment and sees single parents with many children having to feed them crumbs because of elephantine monthly hydro bills? That sort of unnecessary and extreme stress is entirely avoidable and changeable. The fiscal bullying list is nearly endless.
That “morally superior” bullying is simply evil.
What of ageist policies that seek to hurt rather than heal society?
Morally superior my a$$- wasteful policy and idiotic spending result in absolute bullying.
Canada cannot afford this or any other foolish government.
Just lol at all these idiots who voted Liberal (usually brain washed college kids, pathetic pot heads, or all around failures).
MF
Advice from a Dharma Bum:
Ignore everything you hear.
Keep saving.
Keep investing.
Eventually, you will be completely free.
Did a Trump spokesman have to mention ‘Canada’ for anyone to figure out that he will not just punish Mexican factories exporting to the USA?
Is everyone living in a fog, or do they just actually believe the media narrative that Trump’s a racist and hates Mexicans?
http://anotherobstacle.ca
Protest lans transfer tax increase in 416
Trump knows he can get a lot done just by talking (witness the many companies now promising to create jobs in the USA), and I am sure he hopes he can achieve what he wants without imposing any tariffs.
(He is on record as believing in free trade, he’s just doesn’t see that it exists, so might as well put America first).
But I think he’ll have to follow through on his threats. A lot of companies will not move until there is a real reason to do so.
Not sure if Trump will be able to pass a huge tariff bill….but a lot of Dems will have to support it, even while some R’s will not.
So I think he’ll get it done. Bye bye loonie!
Garth, how is all this allowed by Nafta rules?
Doctors
I had enough trouble in TO getting a family doctor (they kept retiring soon after I found one).
Now in a small town, I started looking for one.
Response of everyone: Good luck!
Now I guarantee there are millions of qualified medical practitioners who would love to come to Canada.
This would be an extremely easy problem to fix if governments did the right thing.
But they won’t.
I’m actually an incorporated IT contractor.
I play fair, and pay myself 100% salary.
I don’t use any trick like family shareholders or things you mentioned Garth.
Yet, this year I declared my salary late (less than 2 weeks late) and now the taxman is asking me penalties an amount that represents 6% of my gross salary.
That’s just insane.
I’m a one man shop, I don’t have a full time accountant to be on top of this stuff.
And what do they accomplish by doing this?
Well I’m now looking for all the possible legal tax avoidance I can use in the future.
And even starting to consider jobs abroad.
Trump says to buy LL Bean! This is going to be the best presidency: presented by Pepsi, transportation provided by Ford, wardrobe by Ivanka’s clothing line. It’s going to be FUN! Get out there and buy Trump America!
(Unfortunately there will be no musical entertainment.)
Re: #6 Sidera on 01.13.17 at 6:31 pm
In reality the U.S stock market, the German DAX and almost every stock market index worldwide has never been as overvalued in history as they are today. The best advice is wait for “the big one” where everyone loses everything. In the meantime if you get lucky and there is no “big one” invest in something like rare coins where you won’t lose all your money like in overpriced stocks.
#29 I don’t know on 01.13.17 at 7:31 pm
IT contractors targeted? Well, it’s about f&^$#^ time. […].
As a full time employee, I used to see the IT contractors making huge money and I learned that they paid comparatively little in taxes. Some of them, with very aggressive tax strategies, paid very, very little. So, I decided to join them. First thing I did was to incorporate. Then I worked out some basic strategies
[…].
I also defer some personal income and leave it in the corporation until I really retire further down the road. I kind of feel like a crook doing this, but it’s all legal and all IT contractors do it.
********************************************
Good luck with leaving your profit in the corporation.
IF the CRA decides you are a Personal Service Business, you kiss goodbye to your small business tax bracket, retroactively.
And let’s be real, most IT Contractors are Personal Service Businesses.
Of course taxes will be going up. We can’t cut expenditures.
How would we buy support from powerful business interests and public sector unions in the next election if we don’t raise more tax revenues?
I do support going after those who game the tax code but that applies to all income groups. Lots of middle class and poor people also scam the system and there are a lot more of them than doctors.
How many people with those basement suites /student rooming houses are really claiming the rental income?
Lots of those municipal employees work 24 hour shifts (7 days a month) and have under the table cash side jobs, deck construction, roofing, concrete work, landscaping, painting, multiple rental properties etc.
Never any fun to see your employer’s future (and your ability to pay Turner Investments monthly fees) presented so starkly . Hopefully the differences in the way Honda conducts business at all levels allows automobiles to be produced in Alliston for the foreseeable future.
Sources telling me BM’s budget will include new and improved measures to monitor/report wealth transfer, the “gifting”, going on between family members.
What’s odd is garth advocate , over and over again, a balanced portfolio and to ignore the noise (close BNN, Bloomberg ..etc)
Yet his colleague gives predictions and uses horoscope (tech analysis jargon ) and spends time babbling on said shows
Odd
3000$ suits, Porsches , mansions and trophy wifes. Blog morphing fast into a fashion recommender. Any advice on cool watches to park some $ on? Calatrava, reverso, fifty phantoms perhaps?
Maybe Doug could chime in as the collectibles guy. Not sure Ryan has any disposable income left these days…
Me, looking for a new toy to time the 2017 markets…
#59 Smoking Man on 01.13.17 at 9:31 pm
#51 Faster than light tesla. on 01.13.17 at 9:06 pm
So what’s keeping you?? Schlong branch is your future.
…..
I don’t think so. There is an Isand somewhere with wee mansion being built with a helly pad and a thousand foot run way for ultra light aircraft being build right now. Shlong Branch getting renovated for the next greater fool.
It’s time to retire. I can’t live in country with so many mental cases.
Teachers win. They drove me out. But I’ll have a good internet to torment all the freeks of nature up here.
The last chapter, amazing when a plan comes together.
I’ll say more when I’m safe from the claws of thieving librals.
—
Smoking man’s Castle!
A moat is a deep, broad ditch, either dry or filled with water, that surrounds a castle, fortification, building or town, historically to provide it with a preliminary line of defence.
Garth, as a drinker of fine bourbon I find it sacrilegious that you imply anything gets mixed with it. :-)
check out this stunning comparison between the US housing mkt before the crash and where Canada sits now – Armageddon is coming
https://news.vice.com/story/canadas-housing-market-looks-a-lot-like-the-u-s-right-before-the-crash?utm_source=vicenewsfbcaads&utm_campaign=global
6 Days to Trumpocalypse.
It may begin sooner. Ugly revolution is brewing. CNN is up in arms. Russian border becoming a military flashpoint zone by each passing hour.
Domestically, how can Trump possibly criticize Democrats questioning his legitimacy based upon real, factual concerns about Russian interference, while Trump himself repeatedly questioned Obama’s legitimacy based upon completely fact-free assertions about his place of birth.
Americans are about to become fully enraged in the days ahead.
The worst start to any presidency in history.
Will there also be war? We will see….
Are these folks with the tax loopholes and high incomes the ones that Kelly Leitch is referring to as the elites?
Garth, I believe that this makes you and Ryan members of Canada’s elite.
Watch out…Kelly Leitch and her followers have you in their sights.
T2 should have known better than to ever have gone on his tour to Western University. There are too many critical thinkers, intellectuals, and radicals who attend there for an education. Of course he was booed and called insane, an utter failure, and a criminal too. I recommend not to send your daughters there unless they are unattractive because the young men are wolves in sheep’s clothing.
Nonplused. Spending now on coal plant strands only remaining economic value of coal plant. S Alberta had more sunny days than any where in Canada.
#95 WUL on 01.14.17 at 12:37 am
The Feds will not end oil sands production. The market will and is.
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But I bet having a PM and premier that are openly opposed to oil sands development will speed up that process. Why invest in a country that elected Notley, Wynne and Trudeau? So you can fight tooth and nail for every project.
The fact that canadians elected these three is not a coincidence. If you disagree with them you are in a large minority (and why we won’t see electoral reform under T2).
If I were a canadian politician, interested in actually protecting the environment, not just riding a wave of populism (Canadians are too smart to fall for something like that…). I would put out a big open for business sign for oil companies knowing that the oil sands aren’t a particularly attractive investment anyways. Better Canada get the oil investment dollars than a country like Nigeria who will openly flaunt environmental regulations, the money is going somewhere.
I hope trudeau and gerald butts can sleep well at night knowing that they spent their days ensuring the degradation of the environment for their own political gain. Populism indeed.
#112 Dharma Bum on 01.14.17 at 9:38 am
Advice from a Dharma Bum:
Ignore everything you hear.
Keep saving.
Keep investing.
Eventually, you will be completely free.
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Excellent advice!
And the “kurzgesagt” of this blog.
But imagine if that’s all Garth wrote.
What we would do with all our free time? Lol
#97 jane24:
“For those yelling bring on a trade war please think. If one side has 35 million consumers and the other side has 350 million consumers, who do you think will win the war? Goliath will win and not David.”
There really isn’t anything else you can do. If a country creates trade barriers by taxation and credits on their side of the border, and you do nothing in return, then your country loses.
If you tax their stuff in retaliation, then you create hardship on their side of things as well.
It is called applying pressure. No one wants a trade war, but if Trump is going to attempt to create a USA that sells to the world, but will not accept any other country importing products for its own domestic markets, then the world is going to tax the crap out of US exports. That is how you deal with that sort of behaviour You tax them back.
I am of the same opinion that Canada is going to do better then expected. With Canada, it is not just stock levels, there is a currency element that gives a double bonus if you use a noggin.
#113 traderJim on 01.14.17 at 10:04 am
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Cars aren’t just made in Canada. If he slaps tarrifs on ‘Canadian’ built cars he’s actually penalising USA workers that build car parts.
Off topic but anyway when I look at Realty.com nearly all the condos in the lower mainland seem to have gone up hugely. If the “crash” starting in about mid/late February [according to Ross Kay] doesn’t happen some people I know say their “done” with paying anymore attention to people who predict where real estate is going up or down, including Garth. I don’t feel the same way …yet. They say no one really knows and the last people to listen to is anyone in the real estate industry not that Garth or Ross are part of that gang.
#102 Euro observer:- I can rent a luxury cottage in Malibu from Jennifer Pietro for $143 a night and get a discount for a week, but much too big for me all furnished for four. Now where will you be going after you cash in your Greek bonds if they even have the money to do so?
Gartho… notice you’ve been silent on Kevin O’Leary’s jump into the Con race. thoughts?
It’s sure looks like all out war between the ‘deep state’ and the president elect. The political, left vs right facade has been dropped as both sides attack the disruptor-in-chief.
The MSM media is loosing it’s shit over the fact it’s been exposed as irrelevant. Trumps preemptively firing
all sorts of bodies the very minute he becomes POTUS, to limit potential sabotage from within I assume.
Biggest European military deployment since WW2….
“The first of the arriving troops, reportedly from Fort Carson, Colorado, will be followed with more than 3,000 soldiers, tanks and other military equipment deployed in Poland via Germany and nearby NATO partners.
Among their equipment will be 87 Abrams M1A1 tanks, 20 Paladin artillery vehicles and 136 Bradley fighting vehicles.
The forces will branch out to seven Eastern European countries from Estonia to Bulgaria on a rotational basis within the next two weeks.
In addition to US troops, NATO members Germany, Canada and Britain are also sending up to 1,000 troops, each to the former Soviet republics of Estonia, Latvia and Lithuania.”
http://www.aljazeera.com/news/2017/01/troops-poland-threat-russia-security-170112144005610.html#
What the hell is this about beyond stirring shit up, before the obama the limp leaves office?
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#106 CEF….. is that envy ? ACA NADA has ‘bothered’ the Liberal Party historians forever….so get in line.
Ole Doberman: from your link: If Canadian household debt to disposable income is 165 percent, that basically means that we owe $1.65 on every dollar we earn. These are actually 2015 figures. The latest numbers on household debt show that for every dollar of disposable income earned, we owe $1.68, mostly on mortgages.
Americans, on average, in 2007, owed $1.28 for every dollar of disposable income, a number that was considered ludicrous by economists and experts at the time.
I think Bill Morneau’s new regulation will be effective: buyers must be able to pay mortgages at 5%. The latest buyers will not be the first to default but the regulation will reduce the number of buyers.
In BC the fact that the province will lend buyers $37,500 will be enough to propel them into the sub-prime market. I mean the BC Liberal Government deserves to be mocked and ridiculed for pushing people into sub-prime mortgages.
@#143 Schlock Picker
”
“ACA NADA has ‘bothered’ the Liberal Party historians forever….”
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Liberal historians? Apparently no other “historians” exist outside your paranoid world……
Well, like ficticious “aca nada” stories without links or any verifiable proof…. most stock hucksters I’ve met rely on their own self promotional babbling to get them through life.
Hey, what ever works right?
Anything for a sales commish right?
Any of your clients retire rich?
No? None?
I thought so.
@InvestorsFriend, post #34:
Yes, buy low and sell high. It’s that simple. Over the years I’ve also had some bad investments, and was losing money to the high MER (management expense ratio) of the mutual funds I once owned. However, by trying to buy more funds when they were on sale and trimming them when high, the gains I’ve made over the years have outweighed the losses.
#93 NoName on 01.14.17 at 12:25 am
Excellent link on the fall of civilizations due to drought. The Syria point was particularly interesting.