Culture of envy

“Jeez,” says Jerry, “this has been a depressing week of blogs. Maybe you should do a series on ruptured hernias. Or an analysis of fungal infections. Would be an improvement, dude.”

I get it. But we can’t spend all day talking about goofy bidding wars or balanced portfolios. Sometimes what governments are doing, plus what we’re doing to ourselves, must be dragged into the sunshine and vivisected. As we head into the second T2 budget – the nasty one, two years before an election – a debate about where the country’s headed is just.

Is taxing our few (286,000) wealthy people at 54% okay? Should everybody with a mutual fund or a rental condo pay more in capital gains? Is Hoovering the dividend income of retired people overdue? Do we need a tax on house profits? Can a country become stronger, fairer, more prosperous by increasing the tax burden? Is more government the answer to income inequality?

Seems we hit a spot where the 99% hate the 1%. Where Millennials despise Boomers. Where the houseless blame immigrants. Workers hate bosses. The surprising pro-Brexit, pro-Trump sentiment here (now morphing into pro-O’Leary) shows many people want to elect and support disruptors, blow up the status quo and dismantle elites. When the POTUS can stand in a presser and call the reporters he summoned “fake news”, then speak proven falsehoods and is cheered on by his supporters, we’re clearly on a dangerous voyage.

Edelman Canada’s a marketing outfit that polls people so it can help companies sell stuff. The result is a Trust Barometer. And the latest one’s a shocker.

Faith in business, politicians or reporters is at low tide. Populism’s on the rise, fueled in no small way by the power of social media – allowing like-minded groups of people to find each other, bypass mainstream thought, and coalesce into armies. Brexit was won through YouTube. Trump triumphed with Twitter. CNN or the New York Times, meanwhile, have been trashed and marginalized. News is now what you agree with. What you don’t, is fake.

Edelman found 61% of Canadians have lost faith in leaders. Eighty per cent think elites are out of touch. Half believe immigrants are bad. A third feel free trade is wrong. Over half (55%) said they don’t listen to news they disagree with and are 3.5 times more likely to ignore facts supporting a position they don’t support.

Trump knows all this. He can claim to have received the most electoral support “since Ronald Reagan”, call Mexicans “rapists”, suggest Muslims are terrorists or claim there were three million illegal voters, and get away with it. In Canada our leaders know they can claim that by vacuuming a relative handful of rich everyone else will get more. It’s what people wish to think. It’s popular. So it’s fact.

As society drifts to the extremes, middle ground is being lost. No shock that “progressive conservatives” no longer exist, replaced by hard-right Cons and increasingly leftist Libs. In the US election three months ago public sentiment was split right down the middle. In Canada we have a majority government elected by a minority of voters. Common ground is uncommon. It’s as if there’s no longer any unity of purpose. About anything.

“Garth, I do not comment openly on blog sites for the sake of privacy but the observations you have been sharing recently are too important to let pass,” says a blog dog from the West. “My wife and I are among the 1% that you often reference.  For many years we have worked hard, taken risks, reinvested after-tax earnings, produced valued products, and employed many.  We have paid substantial taxes during the past decades at levels we had already considered punitive.  With the changes in tax policies at the provincial and federal level during the past two years, the incentive to reinvest has been lost.

“Canada has become a country where the fruits of our labor and investment are no longer respected.  Every action our political leaders now take, plays to an outcome that is increasingly more hostile to the values we wish to instill in our children.  I am now spending most of my time considering how to transition our business to a country where they understand the need to allow the market to reward hard work, innovation, and investment.  I would like to be allocating my focus to our production in Canada however these days it feels far less like home.  My children will not find the change easy because they don’t fully understand the relationship between incentive and risk.  If I am successful my grandchildren may thank me.

“Of all the trends you have identified Garth, the practice of envy politics through taxation policy may be the most harmful to this country.  Housing bubbles correct with great regularity, but the creation of a culture of envy will be difficult to overcome.  If the Canadian housing bubble has shown us one thing it is that momentum is not easily changed once it has taken hold of the people.”

Well, this blog won’t change anything. The die is cast.

On Sunday. What to do as the revolution comes.

245 comments ↓

#1 For those about to flop... on 02.17.17 at 5:29 pm

Pink Snow falling in Surrey.

These guys took only a thousand bucks off their asking price because they’re pretty much at their break even point after forking out 850k for this place I would seasonally store my golf clubs in.

Fishing rods? …Not a chance….they can help feed your family.

Upon reflection….you can fish with golf clubs too ,if you want to be a total barbarian …

M42BC

9627 154 Street, Surrey

Oct 20:$899,000
Feb 16: $898,000
Change: – 1000.00 -0%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3NjEzRw==

#2 For those about to flop... on 02.17.17 at 5:30 pm

Upon hearing for the umpteenth time since I moved here about a high speed train that will link Vancouver with the other sizeable cities in the region …Seattle and Portland ,I hope this is done with the utmost regard to safety.

There’s already a big enough train wreck going on down there already ,so we don’t need to be adding to it…

M42BC

#3 Wait There on 02.17.17 at 5:34 pm

We need an article on how one can move a small company to the USA and set up there. I’m all ears.

#4 Ponzius Pilatus on 02.17.17 at 5:35 pm

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ― Winston Churchill
—————————
Sure, but not everyone is as fat as Churchill was.

#5 Nemesis on 02.17.17 at 5:35 pm

“What to do as the revolution comes?” – ElJefe,SubcomandanteGartolo

#EnjoyYour”Pawternity”Leave?,Or… #ProgressiveScottishBrewerProves… #ThatSomeDogsAreIndeedMoreEqualThanOthers… #CatOwners”NeedNotApply”…

https://www.theguardian.com/news/gallery/2017/feb/17/best-photos-of-the-day-dog-paternity-leave-and-a-giant-trump-dummy#img-10

#6 cramar on 02.17.17 at 5:37 pm

#155 Lunatic Trump on 02.17.17 at 7:44 am

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

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

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

He makes Rob Ford seem serene and sober by comparison.

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

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

—————-

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

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

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

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

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

#7 Ponzius Pilatus on 02.17.17 at 5:41 pm

Tired of the rich complaining of paying taxes.
How about the hockey parents who are now paying up to $20,000 a year to put their kids into a Hockey Academy.
And these are after tax dolla.
Hockey is becoming a rich kid’s sport.
This is a national disgrace.

#8 Rick Fast on 02.17.17 at 5:42 pm

30% drop in GTA real estate values coming to a theatre near you!

#9 jess on 02.17.17 at 5:45 pm

winning mayor

Essay by Bart Somers
Mayor of Mechelen, Belgium
Influencers, journalists, politicians, civilians, often ask me what the Mechelen recipe for an inclusive society exactly is. What is it that distinguishes the Mechelen approach? The answer is: connection.
http://www.worldmayor.com/contest_2016/mechelen-essay.html

http://www.worldmayor.com/contest_2016/profile-mechelen-mayor.html

“European cities that will thrive this century and beyond are those that harness the experience, skills and creativity of both local people and newcomers. Cities that will reject new blood, new ideas, new cultures will wither and become irrelevant in a world that flourishes on global connectivity. Bart Somers, mayor of Mechelen, a medium-sized city in Belgium, has in his 15 years in office shown what inclusivity can achieve. MORE

#10 Goldie on 02.17.17 at 5:45 pm

“…call all Mexicans ‘rapists’…”

I think you might have been reading a little too much BuzzFeed lately my dear host.

Actual quote: “They’re sending people that have lots of problems, and they’re bringing those problems with us. They’re bringing drugs. They’re bringing crime. They’re rapists. And some, I assume, are good people.” — Garth

#11 InvestorsFriend on 02.17.17 at 5:48 pm

Is a 54% marginal tax rate okay?

“Is taxing our few (286,000) wealthy people at 54% okay?”

*************************************
Well, to be fair, that rate only applies on the dollars over and above $220,000 taxable income.

Also all the major and minor tax breaks that people and companies clamor for contribute to the regular rate being so high.

SOMEONE has to make up the tax lost to all those tax breaks

RRSP, TFSA, half price tax on capital gains, dividend tax credit, $750k lifetime capital gains exemption for ssmall business. The 25% corporate tax rate (it was about 48% in 1990). Accelerated capital gains exemption.

Each and every tax break contributes to a higher marginal tax rate.

The BOTTOM marginal tax rate in Ontario is 20% on the firs $42,000 of taxable income. Is 54% above $220k fair? I don’t know. It would be a nice problem to have though.

NO one earns a dime in this country without some benefit from the system and all the things taxes pay for.

Besides, most wealthy people are wealthy in assets and wealth.

I’ll agree to lower the 54% if you agree to do away with some tax breaks.

The 54% is on earned income. There are no tax breaks, other than your beloved RRSP. — Garth

#12 Ponzius Pilatus on 02.17.17 at 5:48 pm

#1
Upon reflection….you can fish with golf clubs too ,if you want to be a total barbarian …
—————
I always throw the offending club into the closest pond, after a shanked shot.
So far, though, not a single fish hit yet.
What is the lesson in this?
Give up golf and go fishing instead.
Would sure save me a lot of money, I reckon.

#13 BR on 02.17.17 at 5:54 pm

“The most significant job growth in B.C. happened in the range of people making between 50 and 100 per cent of the average wage – so that’s workers making $12.49 to $24.98 per hour.

The next-strongest growth came in the cohort of workers making less than 50 per cent of that wage – less than $12.49 per hour.”

http://globalnews.ca/news/3221535/bc-income-growth/

#14 Ponzius Pilatus on 02.17.17 at 5:54 pm

I believe if you cannot build a sustainable business without paying your employees a living wage, you should not be in the business in the first place.
If you pay decent wages, you’ll get better employees and may need fewer ones.
Remember, you always get you pay for.

#15 Mark on 02.17.17 at 5:57 pm

The problem in Canada is that too much of the ‘wealth’ of the 1% came from government subsidy or government employment. And not enough from honest private sector employment in unsubsidized or un-protected industries.

For instance:

Doctors — they get to the 1% largely due to government protection of the profession, and government payment for service.

Lawyers — get to the 1% heavily due to processes of government.

Engineers — many get to the 1% significantly due to government employment. Or employment with government protected monopolies.

Bankers — banking is heavily subsidized/protected in Canada through the CMHC and other government regulation.

Government workers — ’nuff said, most career government workers retire with a pension with a PV in excess of a million, and a long-serving government worker who rises to Deputy Minister or similar can even be nearing the 8-figure mark.

Dairy and certain other kinds of farmers — benefit enormously through “supply management” which is basically a sort of crony capitalism enforced by the government (try producing milk without ‘quota’, government men with guns will show up and take your farm away!).

So maybe 2 tax rates are appropriate here. One for people who earned their income and wealth in completely unsubsidized/unprotected industries. And another for those who made their money through subsidy.

Or better yet, why not just remove all the subsidies and protections? And actually have a free economy, so we don’t have to deal with the profoundly distorted wealth distribution. Ambitious people in all of the above named groups, and many more, will still come out on top, as they should.

#16 crowdedelevatorfartz on 02.17.17 at 5:57 pm

The old saying about rapacious greed
“Much wants More”
referred to the power of greed to lust after ever more money or power…..even when people had enough they still want more…

Now we have a mindset of “More wants much”
The mainstream feel that they deserve what rich people have without working for it….because ….
Its their right.
I’m not rich by any means but when I see the potential of my retirement savings being eaten by the people that didn’t prepare for retirement, didn’t care to save, or, more importantly, didn’t know when not to spend frivolously…..”Why buy used when you look so much better in a new leased vehicle….
Angry doesn’t even begin to describe it.

#17 Drill Baby Drill on 02.17.17 at 6:04 pm

“Politics of Envy” is what Alberta has had to endure for decades. Alberta has also been the safety valve for the rest of Canada by hiring for it’s oil & gas fields all of the unemployed or under employed. While the west and east complain self righteously about the carbon emissions from Alberta the photo chemical smog and water pollution keeps on a rolling from our big cities country wide.

#18 After the Assassination on 02.17.17 at 6:10 pm

“On Sunday. What to do as the revolution comes.”

I look forward to your Sunday post, Garth.

I hope that you will begin to help us contemplate financial strategies for the huge disruptions that lie ahead.

I do not condone violence, or wish it upon anyone, but never has it felt so near.

It is very clear that Trump will be assassinated. There are now tens of millions who would consider this reasonable, even a necessity, for America’s survival. Among my friends in the USA, this is not just idle chatter. (It would be a blessing if he were merely impeached, but that will take longer and the rage of people scared by his incomprehensible absurdity will grow much faster than any impeachment process.)

Surely after he is gone, his insane herd of under-educated but highly armed supporters will go berserk.

So where to put our money, how to preserve and invest it, with this sort of chaos ahead?

Your thoughts over the weeks ahead would be illuminating, I am sure.

#19 Melvin on 02.17.17 at 6:19 pm

I have seen this coming for the past 2 years. I have almost fully liquidated my non registered holdings and will pay big capital gains tax from 2016. I have reduced my advertising budget to almost zero in my business and have stopped trying to grow it. I plan to pay off the rest of my mortgage and only invest in my 7 figure rrsp and tfsa. I am considering retiring completely at the age of 42. Wife has a government job, and if I don’t work I can still live a good life on the savings I have acquired. With my income down to zero I can receive a nice monthly cheque from the government as we have 3 children. For the first time in my life, I have almost no ambition. My hard work just gets taxed away. A few years ago I would not believe I would actually write this.

#20 TraderX on 02.17.17 at 6:22 pm

I so agree with your quote “blog dog”… as a business man who employs many people, one wonders why bother now to take all the business risk? We make money and get punished by our very own government even AFTER employing so many people and being the last to get paid. And if assessed we are guilty until proven innocent. Crazy.

I talk with old timer business leaders from the 70’s and the world they describe and the freedom to work and build wealth sounds like a foreign country! But it was the Canada I was born into. Today, I barely even recognize what the old timers describe.

Someone please tell me how we change this…

#21 Pepito on 02.17.17 at 6:22 pm

After reading today’s blog, it’s obvious you just don’t get it… and probably never will. Too bad, really.

#22 Trojan House on 02.17.17 at 6:24 pm

“News is now what you agree with. What you don’t, is fake.”

Sorry, Garth, that’s simply not true, pun intended. The mainstream media has stopped objectively reporting the news (facts) and, certainly in the case of the US of A, have become shrills for the right or left (Fox News & CNN). It is like this in Canuckistan to some degree as well, especially with the CBC.

In 1987 in the US, the FCC repealed the Fairness Doctrine and eliminated all the language of the act in 2007. Effectively this eliminated the need for news networks, etc, to offer opposing views of a subject or report the news, well, fairly.

Gone are the days of Watergate or Edward R. Murrow when presidents were impeached for actual reasons of criminal activity and not because everyone is triggered because of a temporary ban on immigration from countries the USA are illegally at war with. If today’s press were fair and objective, then the Iraq and now Syrian wars would have been over long ago, just as the press exposed the lies of the Vietnam war.

In Canada, the press loves JT because, gosh darnit, he’s a handsome man – just look at the way Ivanka Trump looks at him. Did any real news come from his meeting with Trump??? Maybe the press in Canada can focus on the ever rising mountain of public debt he racks up and ask the right questions like, I don’t know, how is this ever going to be sustainable??

The attacks on the 1%ers you always talk about it happens because the mainstream media in this country reports that they don’t pay “their fair share” instead of pointing out to people, as you do, there are less than 300,000, not just in Toronto, but in the entire country! Even if you taxed them at 100%, it would never make up the billions upon billions the government spends.

So, this is why I think people turn to alternatives, why they get angry, why they don’t trust the MSM, the politicians and the bankers.

I should know this – I work in the mainstream media!

#23 The otherside on 02.17.17 at 6:27 pm

Culture of envy, or culture of greed?

How much is enough for the 1%?

#24 Adam on 02.17.17 at 6:28 pm

“In Canada we have a majority government elected by a minority of voters.”

When was the last time we had a majority government elected by a majority popular vote? Here’s a fact for you, it was the Conservatives….in 1984!!! (50%, by the way).

When was the last time before that? Conservatives again….in 1958. Don’t act like this is the first time a majority government got elected on less than a majority of popular vote. The 2015 liberals got elected by virtually the same popular vote that elected the Cons in 2011, and by more than the percentage of popular vote that got them elected in 2006 or 2008.

Good spinning, though.

#25 Ed on 02.17.17 at 6:28 pm

I have a small business, myself, and provide services. I lived in Japan in my twenties and made a good wage there. My take home pay now, making 3 times the wage, is just about as same as it was there. Something stinks in this country. The “we all have to pay our fair share” crowd does not realise how business works–if business does not work there is not money for taxes.

#26 Golfman on 02.17.17 at 6:30 pm

Keep fighting the good fight Garth. Your postings are one of my lifelines to reality in this mixed up, contorted environment we live. I totally agree with the 1% poster today as they sacrificed, risked, invested blood, sweat and tears and were rewarded.
It’s a sad story that someone would look at success and be so self-absorbed in their own pity party that they have to condemn everyone that appears to have more. Human nature I guess. Part of being a 1% (I imagine) is to have thick skin and pay no attention to the nickel seats.
My rant for the day…..cheers!

#27 AB Boxster on 02.17.17 at 6:31 pm

Trust is a very simple thing to maintain, but also very easy to lose and very hard to recover.

Trust in the mainstream media is at an alltime low, and rightly so.
Trust in politicians is at an alltime low, and rightly so.

As politicians and media continue to try to define us all into identifiable groups, (millenials vs boomers, lgbt vs. us white priveleged, 1% vs 99%, global warming carbon tax lovers vs climate change deniers, etc, etc, etc) and then try to pit these groups against each other throught their own pet theories and social policies, is it any wonder that people retrench.

The example of Progressive Conservatives is a prime example.
So many bemoan the death of the progressive side of conservatism.

But today, to be considered progressive means that you must believe in all lgbtq causes. Oh, and you have to support transgendered nonsense as fact and that there are now some 66 diferent genders.
You have to support unfettered abortion, and in fact celebrate it.
You cannot question the nature of immigration, in any way.
You must fully believe in climate change, and that the carbon taxes will save the world.
You must accept that if you are white and male, that you are by this fact racist and priveleged.
You must hate the successful and tax them accordingly.
And you must hate the last generation for all the evil they have caused.

The Progressive Conservatives of the past would have looked at these issues of today and commented that in order to be considered ‘progressive’ today you would have to therefore collectively lose your mind, and any considerations of reason and fact, and intelligent debate will have no impact.

These culture wars are raging in the media and in politics.
The battle in the US is not a political war, as Trump is just as much a democrat as he is a republican, it is a culture war.

Showing its face in Canada due to T2 , Wynne and Notely policies.

Soon to become a major battle as the intelligent people in this country start to push back.

O’leary? Bring him on.

#28 I'm stupid on 02.17.17 at 6:32 pm

When most people ask for advice they listen to the advise that validates their preconceived decision. So why do they ask for advise in the first place? The answer is simple, its the feeling of belonging and being part of the group. Successful people usually get laughed at and talked about behind their backs. Jealousy is a terrible thing and we’re seeing is legislative jealousy.

Fake news and groups of like minded individuals is a dangerous thing because it validates false views and encourages stupidity. These groups are the same as someone asking for advice, only looking for answers that fit their own views. We should just start burning books now and repeat Germany in the 30s and 40s.

The internet was invented to share knowledge and ideas not create a breeding ground for hate and narrow minded thinking.

#29 InvestorsFriend on 02.17.17 at 6:36 pm

Why the High Marginal Tax Rate?

Garth responded to me at number 3:

“The 54% is on earned income. There are no tax breaks, other than your beloved RRSP. — Garth”

****************************************
Agreed that is a marginal tax rate of 54% on all earned taxable income over $220,000.

My point, was not about tax breaks that reduce taxable income. It was that if there were full taxes on realized capital gains, full taxes on dividend income, no RRSPs and TFSA, then there would obviously be more income tax collected from those areas and the tax rate on regular income could be reduced.

Each tax break may be a good idea but if it decreases tax revenues (which is the idea) then that has to be made up elsewhere, such as in a higher overall tax rate on regular income pushing up the rate in all tax brackets.

If you want a lower tax rate, what specific tax breaks will you eliminate to offset it? Or what specific government spending will you cut? Or would you just increase the deficit?

#30 For those about to flop... on 02.17.17 at 6:42 pm

Blacksheep to answer your question about anyone losing money on Vancouver real estate,below are three cases to sample.

2273 Graveley st.
Bought for 1.6
For sale 1.5
Was for sale for 1.4 at one stage and a sale fell through.
This house was featured at post #1 yesterday where the realtors / buyers somehow conspired with this house in trouble next door managed to pay 300k over assessment and 30k over asking if the numbers hold true for the house over the fence.

6019-5511 Hollybridge Way
Bought for 685k
For sale 628k

1401-6659 SOUTHOAKS Cres.
Bought for 650k
For sale 620k was 555k at one stage.

I have hundreds of houses in my Pink Snow folder that are back on the market for not much more than they were bought for.

This is going to take a while to play out…no one is going to do anything too crazy in the traditionally hottest time of year for real estate.
After the transactions take place they won’t be entered into the database for months.
I think we will have a clearer indication as to what is going to happen in September/October.

Some of the properties that were in the zone to make no money or lose,have been simply taken off the market after months of trying to sell because they seem to know that they can’t get their number even though it’s selling season,which is odd.

These people will just have to pay the monthly in the meantime.

People that are over extended or only bought on the premise that it be worth 20% more a year after they bought it and are spooked have their properties back on the market with a price of around 5/10% more trying to make to next guy pay for the transaction costs.

Who knows what is going to happen,but one of the reasons I take the time to put the links up is so that in 5/10 years if anyone wants to look back at what was happening at this time they will have actual individual cases to look at besides an overall number of the correction or bull trap.

No one has to worry about being on the front page of the paper labeled as the guy that bought a 4m house and is selling it for 3m.

You simply won’t see it…

M42BC

#31 Bulls eye on 02.17.17 at 6:48 pm

#11 Melvin – Agree with your comments. I have three children in high school and it’s a very discouraging proposition to encourage them towards a diploma / degree program. This doesn’t only hit investors but students. The loud and clear message in Canada is “don’t worry I have your back” mantra. This prevents them from taking any risks simply because it’s not worth it. Being a single Mom today is a lot more rewarding then it was years ago. I’m thinking outside Canada for growth.

#32 protea on 02.17.17 at 6:48 pm

#18 After the assassination what a dumb contribution to this blog how about wishing it on Mugabe or the tinpot in North Korea !!

Looks like all the whackos are out in force this Friday ?

Maybe I should have immigrated to New Zealand

#33 Leo Trollstoy on 02.17.17 at 6:50 pm

#8 Rick Fast on 02.17.17 at 5:42 pm
30% drop in GTA real estate values coming to a theatre near you!

Unlikely

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/chasing-the-canadian-dream-the-real-force-behind-the-housing-boom-in-our-big-cities

Remember 2 years ago when Toronto was going to get tens of thousands of condos coming on stream and flood the market?

It’s not enough.

#34 InvestorsFriend on 02.17.17 at 6:51 pm

A loyal and Grateful Canadian

I have felt a strong sense of national pride in Canada at least since I attended Expo ’67 when I was seven.

Canada has been a place where I have done well, amassed some wealth and paid some taxes. I have no complaints on that score.

I can admit to being a bit jealous of the super-wealthy. But mostly I just want to join them. I also have no sympathy for those who have done very well in this country and then spend a lot of time whining about taxes.

I have contempt for any person or corporation engaging in very aggressive tax avoidance. (Valeant one one). I have no time for people paying fake salaries in order to income split. I have great contempt for anyone who would hide money offshore to evade taxes.

#35 Post on 02.17.17 at 6:52 pm

Garth, these could be 2 of your best ever statements. Great writing. But I agree with them:

“When the POTUS can stand in a presser and call the reporters he summoned “fake news”, then speak proven falsehoods and is cheered on by his supporters, we’re clearly on a dangerous voyage.”

“News is now what you agree with. What you don’t, is fake.”

#36 traderJim on 02.17.17 at 6:55 pm

If Canada wishes to have wealth/income equality (or even anything approaching it) I sure wouldn’t leave.

I’d move to BC, find a nice ocean front spot to set myself up, become an ‘artist’, and wait for my cheques to arrive.

Sounds like paradise to me. When can we start?

#37 When Will They Raise Rates? on 02.17.17 at 6:55 pm

#11 InvestorsFriend on 02.17.17 at 5:48 pm

NO one earns a dime in this country without some benefit from the system and all the things taxes pay for.
—————–

https://www.youtube.com/watch?v=6j8XhQfvpW8

#38 InvestorsFriend on 02.17.17 at 6:59 pm

Goodbye for a few months

I am once again spending way too much time on this addictive blog. I am therefore pledging not to post again until at least June 1st.

Try not to miss me too much.

#39 Wow on 02.17.17 at 6:59 pm

Really, really good stuff tonight.

#40 When Will They Raise Rates? on 02.17.17 at 7:01 pm

#15 Mark on 02.17.17 at 5:57 pm

The problem in Canada is that too much of the ‘wealth’ of the 1% came from government subsidy or government employment. And not enough from honest private sector employment in unsubsidized or un-protected industries.
..

So maybe 2 tax rates are appropriate here. One for people who earned their income and wealth in completely unsubsidized/unprotected industries. And another for those who made their money through subsidy.

Or better yet, why not just remove all the subsidies and protections? And actually have a free economy

——

^ What he said.

#41 jay on 02.17.17 at 7:05 pm

http://www.marketwatch.com/story/kraft-heinz-makes-143-billion-unsolicited-merger-bid-for-unilever-2017-02-17 Garth ,maybe people wonder who these low interest rates are really helping ,it’s not the people buying overpriced condos in Vancouver ,it’s companies like this .

#42 Rick on 02.17.17 at 7:10 pm

“progressive conservatives” no longer exist,”

GOOD!

#43 to be fair on 02.17.17 at 7:14 pm

Pres. Trump is peeling back the layers.

The fraud and corruption, the lies and the manipulation have been rampant for far too long and running far too deep. So deep that many are simply not able to discern truth from fiction.

Sure he’s not a gifted speaker like Obama. But that’s all Obama was. He was regurgitating somebody else’s thoughts. Someone who had crafted speech after speech and Obama looked good presenting those. Were those really Obama’s thoughts and ideas? Probably not.

Trump is raw, he is cunning and probably offensive but he is first and foremost Trump. His style is growing on me. Why? Because I don’t care to carefully dissect and carefully weigh anymore what I’d like to say either. PC has corrupted minds for long enough.

Trudeau better get his head out of his rear. I’m sure there’s a yoga move for that.

Canada is up shit creek without a paddle. So much is wrong with this country and nobody wants to talk about it. Instead putting a kid in office who is re-connecting with the upside down legacy of his Dad and making things worse.

Remember when brain drain was a topic in Canada? Well, better get used to it again. The best and brightest will depart for better jobs, better funded research and more investment opportunities in the U.S.

Trump’s plan is rocking it. Challenging times for Pres. Trump but if he’s committed, and I think he is.. then it will work in America’s favor. The last guy DID NOTHING for 8 years. The world liked him. Great accomplishment. That will be T2s legacy as well. Just like the Dad who is “well liked” around the world. What does that even mean and why is that important?

#44 Tower on 02.17.17 at 7:17 pm

“We have paid substantial taxes during the past decades at levels we had already considered punitive.”

Why is it every time I hear from, or speak in person with a 1%er they feel their tax burden unreasonably high, but as a guy making 85k/year I’ve never had an issue paying my share of the taxes. If it’s THAT horrible guys I’m happy to trade places with you in a heartbeat! I’ll gladly pay 50% income tax and be making 225-400k/year.

What is stopping you from attempting it? — Garth

#45 skibum on 02.17.17 at 7:23 pm

Garth here’s the full and correct quote:

“When Mexico sends its people, they’re not sending their best,” Trump said. “They’re not sending you. They’re not sending you. They’re sending people that have lots of problems, and they’re bringing those problems with us. They’re bringing drugs. They’re bringing crime. They’re rapists, and some, I assume, are good people, but I speak to border guards and they’re telling us what we’re getting.”

According to a Fusion report “80% Of Central American Women, Girls Are Raped Crossing Into The U.S.”
http://www.huffingtonpost.com/2014/09/12/central-america-migrants-rape_n_5806972.html

So what Trump said is that a subset of Mexicans that are crossing the border illegally are rapists. Claiming Trump called all Mexicans rapists is false.

There is no excusing or justifying this rhetoric. — Garth

#46 Doug t on 02.17.17 at 7:26 pm

Oh boo hoo to mr. 1% who feels he is being unduly dealt with by this country. Times they are a changing so if he thinks there is somewhere else to go and do “business” and where the grass is greener then go for it buddy. You got rich here and now are thinking you want to take your bag of gold and leave when you get spanked a bit. I’m tired of this SH*T just like so many others – pitchforks and torches people – bring the revolution. Just renewed my subscription to Adbusters – go get a copy and get truly informed. This house of Kapitalism has been crippled the last 20 years and is now in a death spiral – what comes after we don’t know but we are going to find out.
Oh and hey buddy Mr. 1% tell me your address so I can mail you a toonie for the bus outta here

#47 Keith on 02.17.17 at 7:26 pm

Well Garth, I guess the 1% should move to B.C. where the government is with them 100%. Not only do people in B.C. earn low wages and salaries, the 1% do considerably better than the Canadian average in income and in low taxes. Tough for the worker bees, what with the high cost of rent and home ownership on that median Vancouver income that ranks 22nd in Canada, but it’s nice to see the well heeled are treated with the proper respect.

Yep, if this article is to be believed and we are talking the Tyee, a bastion of on line alternative media, the 1% in B.C. are hauling down a cool 400k +. Believe it or not, that’s far far away from the best part. Their tax rate at 11.2 percent is lower than that of the bottom 90% of income earners. That’s right. The tax tortured 1% of Canada need only to move to B.C. where you can earn more and pay less – the proverbial win win.

You see if you really want to stick it to the workers, after creating a low wage paradise for the wealthy, you crank up those Hydro rates, ferry fares, medical insurance premiums, all those user pay fees. Then brag about the low rates of income tax. Forget Ontario. The winter is too cold and the taxes are too high. Come to B.C. and make out like a bandit. Oops, forgot about the price of a house. Nevermind.

https://thetyee.ca/Opinion/2017/02/17/BC-Tax-Giveaway-to-the-Rich/

#48 Doug t on 02.17.17 at 7:30 pm

Oh forgot

Rage Against The Machine

#49 Doug t on 02.17.17 at 7:37 pm

#47 Keith

Spot on – cheers

#50 When Will They Raise Rates? on 02.17.17 at 7:41 pm

What is stopping you from attempting it? — Garth

https://www.youtube.com/watch?v=U9c_KttvQPU

#51 Frank on 02.17.17 at 7:44 pm

You’re super disingenuous.

You pretend like you’re asking neutral questions (you’re not, they drop with bias and Trump like names “doctor tax”, “new head tax”) and then lament the growing divisiness and hostility of 99% vs 1% etc.

Are you so blind that you don’t see you’re not objective here. You’re part of the problem you profess to hate.

I was going to pay you the same complement. Say, if you’re unhappy with this blog I have a solution. — Garth

#52 When Will They Raise Rates? on 02.17.17 at 7:47 pm

#46 Doug t on 02.17.17 at 7:26 pm

Oh boo hoo to mr. 1% who feels he is being unduly dealt with by this country. Times they are a changing so if he thinks there is somewhere else to go and do “business” and where the grass is greener then go for it buddy. You got rich here and now are thinking you want to take your bag of gold and leave when you get spanked a bit. I’m tired of this SH*T just like so many others – pitchforks and torches people – bring the revolution. Just renewed my subscription to Adbusters – go get a copy and get truly informed. This house of Kapitalism has been crippled the last 20 years and is now in a death spiral – what comes after we don’t know but we are going to find out.
Oh and hey buddy Mr. 1% tell me your address so I can mail you a toonie for the bus outta here
—————-

Viva la Revolución!

https://i.imgur.com/BuLeVBi.jpg

#53 BC_Doc on 02.17.17 at 7:47 pm

“Edelman found 61% of Canadians have lost faith in leaders.”

In my opinion, that’s because there are unfortunately no good leaders in Canadian politics at the present time. That holds across all the major federal parties. Politically I’m a centrist and as such I should and did vote Liberal in the last election. But Trudeau and this batch of Liberals in Ottawa stink like three day old fish.

#54 TRT on 02.17.17 at 7:48 pm

Someone earlier this week wrote a “Dollar is aDollar is a Dollar.”

Might as well tax all capital gains and income at the same rates. It’s going to happen since today’s millennials won’t want to pay high icons tax rates to support retired geezers who are living off their taxes and at the same time have assets out of reach of the taxman.

Simply not going to happen. When we have a population that is going to be 30% retirees, you better believe you will have at least a 100% capital gains inclusion rate. Otherwise today’s young will leave the country and then you would get that rate anyways.

#55 Randy on 02.17.17 at 7:49 pm

You get the governments you deserve. Thank You.

#56 Vic City on 02.17.17 at 7:51 pm

I miss VREU’s lala land description of the Victoria market with the meme of collapsing sales and falling prices….

It would be good to see a post from her so we can finally confirm the influence of foreign capital on the market which I know she has finally realized..what with a 20% increase in prices in a year and 7 fold increase in foreign capital.

Funny how the silence is deafening…

#57 skibum on 02.17.17 at 7:52 pm

There is no excusing or justifying this rhetoric. — Garth

That’s not really an argument relating to your false claim which I suggest you retract from your blog post.

Fake blog? Too funny. — Garth

#58 When Will They Raise Rates? on 02.17.17 at 7:52 pm

Trump Declares CNN, NYT, CBS, ABC And NBC Are “The Enemy of The American People”

http://i.imgur.com/f7FdEdG.jpg

http://www.zerohedge.com/news/2017-02-17/president-trump-declares-cnn-nyt-and-nbc-are-enemy-american-people

#59 Tim on 02.17.17 at 7:52 pm

Garth – as a 1%, I too am dismayed at the tax policies the T2 government is implementing. I also worked hard to save money, took early retirement and now am trying to live off $130K a year…. a large amount for many, but much less than what I made working. Regardless, the increased taxation that T2 is implementing that will affect my retirement portfolio (dividend and capital gains tax rate increases and who knows what else) are causing me to seriously thinking about leaving this country, or staying and cheating on my taxes. I’ve never done this… but feel everything I’ve worked for is being taken away to fund government waste, etc. This is what T2 is doing. We are going to get screwed royally as a country if Trump decreases taxes and ours go up. We have to get O’Leary into power…. he is rationale!

#60 TRT on 02.17.17 at 7:54 pm

And why the focus on the 1%?

It’s the asset rich that need to pay taxes on those assets. Whatever laws the majority want, those are the laws that will exist.

#61 T on 02.17.17 at 7:57 pm

#33 Leo Trollstoy

I understand immigration, and immigrants coming for the “Canadian” dream of home ownership.

What I don’t understand is how immigrants with low incomes as identified by the URL you referenced, and little to no employment history, are able to qualify for giant mortgages.

Unless the majority of immigrants are coming with substantial wealth, which in my experience is not the case. Perhaps many immigrants from China and Russia are wealthy; however I doubt more than a small minority of immigrants from the Philippines, India, Iran, Pakistan and India are. I don’t think the number of wealthy immigrants are enough to push the market to these extremes unless they are all purchasing several properties each.

It’s just not adding up.

Please, educate me. I’m here to learn.

#62 NV Landlord on 02.17.17 at 7:59 pm

Thanks Garth,
You’re trying…
The 1% are paying attention.
The 99% are hoping their piece of Canada’s “pie” will get bigger.
But when the high tax earners leave the lower tax earners will have to PAY more tax themselves.
Get ready 99%.

Thanks so much Garth…. I love your witty advice and respect your intelligence.

#63 common sense on 02.17.17 at 8:06 pm

Great Post…

I think where we are is a result of everyone being promised the land of milk and honey through advertising and when people do not get what they were “promised”, someone has to take the blame….

When was the last time you heard anyone take responsibility for making a mistake that needed correcting?

When was the last time you held someone accountable for their negative words or actions and YOU for having the gall to call them out for their mistake are blasted for having the audacity of saying something?

Everyone is PERFECT, everyone should be RICH..it’s your birth rite after all……

#64 TRT on 02.17.17 at 8:07 pm

#51 T

Documents fudged by mortgage brokers. That’s why they exist.

Income is not checked with CRA.

#65 meh on 02.17.17 at 8:09 pm

If you think taxes are too high and government deficits too large, start suggesting spending cuts big enough to bridge the gap!

#66 Entrepreneur on 02.17.17 at 8:10 pm

When the news media is too complacent for too long this is what happens, disruption with truth seekers. Along comes the internet, people are putting the pieces of the puzzles together and correct what is wrong.

The law of the land and the law of a nation belong to the people that live within that nation. Elections in Canada means vote for someone in Canada not in another country. Money/taxpayer should be used within that nation to grow.

I listened to Trump’s speech to South Carolina yesterday, excellent and for the working person. Wow! Trump wants “fair” trade not “free” trade. Have to agree with #43 to be fair…Trump is trying to correct what hasn’t been corrected for probably decades. People should Trump a fighting chance as with any other president.

As for the new media #22 Trojan Horse have to agree with you. It seems to me these free international trade are brushed by, quickly sign, with the old saying “it is the best for ur or um people” is an old trick to quickly pass before the people get wise.

What really gets me is when they throw the environment, like keep flying those jets to and from, keep digging up the top layer of fertile soil for oil/pipelines, dam the river for water but not for the fish, water for liquid natural gas, and so forth. They are really concerned about the environment, yeah right they are. All I have to say is “unbelievable” what they say and what they can get away with.

#67 Rage Against the Morons on 02.17.17 at 8:10 pm

#46 Doug t

Sure, let’s get rid of all the wealthy people in our country. Pay for them to leave in fact.

As long as they leave the businesses they’ve grown, jobs they create, and investments they have made – the rest of us should be ok.

We will end up living in an Idiocracy. Sometimes I feel as though we are already there, people like you everywhere these days.

#68 Freedom First on 02.17.17 at 8:11 pm

#7 Ponzius Pilatus

Thanks for the laugh!

#69 Wrk.dover on 02.17.17 at 8:13 pm

Friday night, good time for some store bought liquor.

drink the tax free homey stuff the rest of the time….

Cheers to all of you cabin fever angry working folks.

And a double shot to our benevolent host Garth.

(I am acting in proxy for Smoking man, peace James)

#70 Political Analyst on 02.17.17 at 8:14 pm

BEST…. PRESS…. CONFERENCE…. EVER!

I don’t know why everyone is so surprised by the press conference, it was the exact same Donald saying the exact same things he said all through the campaign and on twitter ever since. And I think it was quite strategic. It may look crazy, but he may just have a plan.

Take the immigration topic for example. Well, I don’t know what part of “illegal immigrants” people don’t understand but the important part is “illegal”. Legal immigrants are under no specific threat at this point. So even if they aren’t rapists, they are by definition criminals. If they are willing to break one significant law, how many other significant laws might they be willing to break?

Every country has a right to protect it’s borders and do so to some level already. For example, try and get into the US, even just to go to Disney Land, if you have a DUI conviction. It’s not going to happen. I know a guy who has trouble getting in because he got busted smoking pot when he was a teenager, over 20 years ago. So the whole issue is being over blown and in fact Trump is using existing laws and infrastructure. He’s not on track to deport anymore people than Obama did, he just talks about it more.

So why does he talk about it so much? Because it sells to a certain very large demographic. It hits a certain group of people right where they think, especially the unemployed and the historically high number of people “not in the workforce” (i.e. they gave up looking).

Same with the bit about “millions of illegal voters”. Were there millions of illegal voters? Probably not, but there were probably a fair number of them. But that’s not the point, the point is that the talking point gets people thinking “hey, we have illegal voters? Something should be done about this!”

Even “the wall” is not a new idea, people have ben talking about it for years. All Trump is doing is appealing to those “deplorables”who think it’s a good idea.

One thing that has to be understood about Trump’s rhetoric is that he is either a blathering idiot or he is pure evil genius. Let’s assume you think “blathering idiot”. If so no further explanation is required.

But if he is pure evil genius then that also makes sense. If he is smart, he knows that no matter what he says or does he will never appeal to the left, the SJW’s, the snowflakes, or the millennials (except in Texas and Alabama). For him they are a lost cause and a complete waste of time. He will never convert a single one of them. So what he does instead is make hyper-statements in an effort to draw strong support from those people who get hit right where they think about those subjects already. It’s brilliant really.

I think it’s also why he flip-flops like a pancake. Once he has somebody’s support by appealing to their more extreme views, he can gradually lead them to a gentler position as he softens his stance.

Even his media-bashing can be seen in this light. First of all the media has never been on his side (except maybe Fox), so he is right to treat them as the enemy regardless. But the main thing to keep in mind is that the majority of his supporters never trusted the media in the first place, and what Trump is saying is exactly what his supporters have been saying for years by cancelling their subscriptions. CNN’s ratings were in the shitter far before Trump started calling them out. Just watch it for a while. It’s not news, it’s infotainment. They report on very little of substance.

The media battle is even more brilliant on two more angels. First, it’s distracting from a lot of other more important issues, and second, since lots of people don’t trust them anyway, it looks like Trump is “draining the swamp”, as he promised to do. Draining the actual swamp in Washington is going to be hard to do, it’s full of alligators that don’t want to be relocated, so it will take a long time. So the media provides good scapegoat in the mean time. And let’s face it, they did it to themselves, they have been so awful for so long. Is anybody going to miss CNN? I won’t.

Anyway, I hope that is all true because if he does turn out to be a blithering idiot we are all in big trouble.

#71 When Will They Raise Rates? on 02.17.17 at 8:15 pm

#58 TRT on 02.17.17 at 7:54 pm

And why the focus on the 1%?

It’s the asset rich that need to pay taxes on those assets. Whatever laws the majority want, those are the laws that will exist.
——–

…two wolves and a lamb voting on what to have for lunch.

#72 Barb on 02.17.17 at 8:19 pm

Agree wholeheartedly with the “blog dog from the West”.
It just doesn’t seem to be worth the effort anymore.

Interestingly enough, the phone rang today and I was asked whether I would support Kevin O’Leary as leader.
My reply? “I want Stephen Harper back!”

As an aside…received my annual mutual fund statement today. Made 6.43% this year on my LIF account. Almost at the same amount as in January after withdrawals. Not bad.

#73 When Will They Raise Rates? on 02.17.17 at 8:22 pm

“When the people find that they can vote themselves money that will herald the end of the republic.”

– Benjamin Franklin

#74 T on 02.17.17 at 8:24 pm

#51 T

Documents fudged by mortgage brokers. That’s why they exist.

Income is not checked with CRA.

—————————

Is this an assumption or fact? Are there really that many fraudulent mortgages?

#75 Nemesis on 02.17.17 at 8:24 pm

“Come to B.C. and make out like a bandit.” – Keith

#AuContraire,Or… #It’sBetterInOntario… #No,Really!…

[TeslaCanada] Ontario’s Tax Incentive Program for Tesla Owners: $14,000 rebate and carpool lane access – Plus: Up to $1,000 rebate on Wall Connector and installation…

https://www.tesla.com/en_CA/support/incentives

#76 TurnerNation on 02.17.17 at 8:30 pm

There’s 7 billion in this world. Let’s say a mere 10,000 overseas investors are convinced Toronto is the place to buy.
– There’s only a few hundred decent houses on MLS.
– CAD is low.
– Interest rates are low.
Gee I wonder what will happen: another 30% increase in house prices?!

#77 Mark on 02.17.17 at 8:30 pm

Go watch the ‘Young Pope’, reminded me of Trump and your reference to disruptors LOL

#78 VanRE on 02.17.17 at 8:34 pm

Daily review video of items from the news and Twitter on the Vancouver Real Estate scene. This is the vid for Feb 17th: https://youtu.be/agCZwKtwYDg

Neat way of getting a summary each day of some things on twitter

#79 IHCTD9 on 02.17.17 at 8:34 pm

#32 protea on 02.17.17 at 6:48 pm

Amen.

#80 skibum on 02.17.17 at 8:37 pm

Fake blog? Too funny. — Garth

google cached version:
“Trump knows all this. He can claim to have received the most electoral support “since Ronald Reagan”, call all Mexicans “rapists”, suggest Muslims are terrorists or claim there were three million ”

Good and honest of you Garth to remove the word “all” from your post. I wouldn’t want fake news to seep in here. Let’s get back to poking holes in the real estate narrative. Carry on.

#81 Blacksheep on 02.17.17 at 8:38 pm

Flop # 30

That’s the worst you could find?

The three samples provided mean losses of:

1)100K 2) 57K 3) 30K

Now don’t get me wrong, no one likes losing $’s, but the samples provided are far from catastrophic losses.

I think the market is a lot stronger than you realize.

time will tell….

#82 Another Deckchair on 02.17.17 at 8:39 pm

@44 Tower: If it’s THAT horrible guys I’m happy to trade places with you in a heartbeat! I’ll gladly pay 50% income tax and be making 225-400k/year.

What is stopping you from attempting it? — Garth

Tower: Please ensure you write up your blog, it’ll be interesting reading. Go for it, you’ve obviously got the attitude – now to see if you have the *talent*.

Got the popcorn, chair, waiting for the show…

#83 Global Golfer on 02.17.17 at 8:41 pm

#11 Investors Friend

So 1% of the population gets taxed at 54% above 220K. Does that extra tax made from the bump pay for all the “tax breaks” you talked about? It can’t. It can only pay for T2’s hair-stylings. Wage equity will never exist. Don’t penalize the people that put in the time and effort to build their savings. You make it sound like having earned money is a sin. Not everyone affected by this tax was “born into money”. I worked by butt off in remote locations and foreign countries that offer no lifestyle. Try to minimize government spending and the taxes required will drop.

#84 Back to basics on 02.17.17 at 8:43 pm

OK folks, with inquiring minds, let’s go back to basics, how all this started, what is (or really isn’t) the true legal basis of everything that happens here:

From 27 minutes… starting with King John, Magna Carta what became the blue print for human rights in America, Canada, etc.

What follows British North America Act, The Bank Act, WW1, Statue of Westminster… and so on…

Back to basics until now… to understand the system…

https://www.youtube.com/watch?v=sN5sApsePj8

#85 Economystical on 02.17.17 at 8:44 pm

The thing people need to understand about progressive tax systems is that the rich don’t pay taxes. Yes let that sink in a bit. The rich do not pay taxes.

They can’t, because they don’t have any money. All they have are skills and assets. Skills and assets that are in high demand so they command a premium price.

To understand taxes, you simply need to follow the money a bit. So let’s look at a doctor, wh given the specialization of his particular skills can demand an after tax income of say $200,000 per year. So let’s raise taxes on this bastard! He’s making too much money. Well all that will happen according to the “invisible hand” is he will raise his rates and pass the taxes on to his patients. He doesn’t have a money tree in his back yard to pluck bills off and pay taxes, he must get the money from his patients. That means you pay it when you need his services.

The invisible hand also says that the higher prices will lead to lower demand, and this is true. The lower demand will lead to some limit to the price the doctor can raise rates, so at some point his take home pay will be lower.

So what raising taxes on any specific part of the economy does is raise prices, lower demand, and thus lower supply. What part of any of this is good to these woo-woo thinkers?

Taxes are often used to discourage behavior. Alcohol, tobacco, and now carbon (energy) are good examples. It’s supposed to lower consumption. So what do you think, if that theory is correct, happens to the consumption of doctors if you raise the taxes on them? That’s right, any correct way of thinking about it says it goes down.

In the case of doctors it is particularly stupid because the “payer” of most of those fees is the government itself, so to maintain a stable supply of doctors under higher tax rates they must pay them as much more as the are taxing them. It’s stupid to the core. The money just does a round trip from the government to the doctor and then back again.

Remember folks, there is no free lunch. Thinking taxes can go up and it won’t cost you is woo-woo thinking. You will experience a loss of lifestyle pretty equivalent to the loss the doctor does, on a percentage basis, whether the tax is applied to you or not.

So I now present to you the Economystical theorem, in a nut shell: “Any tax applied to a specific part of the economy affects the prices of goods and services throughout the economy, and alters supply and demand relationships for the worse. There is no free lunch, only politics.”

For those who still don’t get it, let’s use a professional sports example (since even the slowest among us seem to understand sports): Professional sports socialism dictates that Wayne Gretzky should not have gotten any more playing time than his team mates, and Sidney Crosby shouldn’t be now. Also, they shouldn’t have gotten paid more either. This is Economysticism in practice.

#86 Bond Junkie on 02.17.17 at 8:45 pm

Assets are the only answer. Hoard assets, leverage, repeat. Get real, nobody can leave this place, only rebel. O’Leary 2019 problem solved. The rest of you can google IMPP if you just weren’t too ignorant to get a couple of obvious answers.

-Bj

#87 bigtowne on 02.17.17 at 8:46 pm

The irony of this era or age of low interest rates combined with such meager return on most people’s savings in bank accounts or etf or equity funds…the returns are so paltry that skimming off more by the T2 regime will mean what exactly? Consider a run-of-the-mill account at best can generate 3 to 5% per year which is “good” in today’s market…so really the whole chebang is ugly and it’s like eating an anorexic cornish hen. No meat on the bones. Now I know why my poor Ukrainian granddad who did not speak English was a firm believer in a serious supply of canned food under all the beds and a back yard brimming with vegetables. He had experience with the feudal system.

#88 Millmech on 02.17.17 at 8:55 pm

#46
Better make that $175.00.My best friend(1%) employs close to 70 people with great wages/benefits,hope your not one of them.Watch our economy go into the sh$tter if people like him decide to set up shop elsewhere to reduce his tax burden.

#89 Wrk.dover on 02.17.17 at 8:55 pm

#59 Tim on 02.17.17 at 7:52 pm
Garth – as a 1%, I too am dismayed at the tax policies the T2 government is implementing. I also worked hard to save money, took early retirement and now am trying to live off $130K
—————————————————–
Everything paid for and only $356 a day to live on. Classic Canadian problem.

My wife and I have stuffed a thousand in savings every month for fifteen years because $131 has been too much to spend every day. A hundred has been just right so far.

Tim et al is none of my business, so good night folks.

#90 Smoking Man on 02.17.17 at 8:57 pm

Tomorrow my leasons from spending time in the ravagess of communism and were T2 wants to take you.

#91 hope & ruin on 02.17.17 at 8:58 pm

Seems we hit a spot where the 99% hate the 1%. Where Millennials despise Boomers. Where the houseless blame immigrants. Workers hate bosses. The surprising pro-Brexit, pro-Trump sentiment here
_____________________

Meh. People with the most to lose usually don’t want change but if you graduated into a post-GFC economy you know what it’s like cutting your teeth out there especially in sectors like manufacturing. A lot of those millennials have very little to lose and a lot to gain from change probably why there is less middle ground.

#92 IHCTD9 on 02.17.17 at 9:00 pm

To the equality folks, you applaud wealth redistribution schemes and hate “greedy” people. You may get your wish, and will pay the increased costs thereof alongside the wealthy with a smile on your face. Those that disagree will love it or leave it.

To everyone everyone who would rather keep what they have earned in their own pockets. You may have your wish if you so desire, it’s up to you, you have options on the table and a choice to make. Those that disagree will love it or leave it.

The politics of income disparity weigh a lot more than the reality. IF the taxes are too high, and IF the business climate is too hostile, then there will be a negative outcome 100% guaranteed. IF the taxes are reasonable all things considered, then they will be paid out for the most part. It’s as simple as that.

The government will play a minimal role after the cards are dealt out. The outcome will be seen after everyone has a good look at their hand.

#93 Linda on 02.17.17 at 9:02 pm

The ‘us vs. them’ meme has allowed those in power at the time to distract the public so as to be able to do stuff that normally would not pass if people were paying attention. Plus taking from ‘those who have’ always seems justified, until the day comes when ‘those who have’ turn out to be you.

#94 karlhungus on 02.17.17 at 9:07 pm

http://business.financialpost.com/personal-finance/mortgages-real-estate/chasing-the-canadian-dream-the-real-force-behind-the-housing-boom-in-our-big-cities

1 out of every 2 new homes is purchased by an immigrant.

Not really. This is new builds only, and only in the GTA. The word “immigrant” refers to someone not born in Canada, but does not preclude them being a Canadian citizen and resident. Just like you, snowflake. — Garth

#95 Bob on 02.17.17 at 9:12 pm

Sad to say but I no longer recognize this country that I was born in and grew up in. I worked hard and I invested hard taking risk at levels most people can not fathom today…and I see myself as middle of the road philosophically speaking. Yet people in today’s Canada will view my life as greed.

Our T2 government will take us all over the cliff in order to spread the wealth and the trip down will be a bumpy ride…I hope I will still be healthy to help my grandson when the time becomes necessary.

The Canada I knew and loved is gone and I am still wondering what it has been replaced with.

#96 IHCTD9 on 02.17.17 at 9:13 pm

#76 TurnerNation on 02.17.17 at 8:30 pm
—-

That, plus it only takes one rich guy to step into a hood with 50 houses and pay a million for a 500K house. Now, all 50 of them are”worth” a mil bottom end.

#97 Barb on 02.17.17 at 9:15 pm

“…I’m not rich by any means but when I see the potential of my retirement savings being eaten by the people that didn’t prepare for retirement, didn’t care to save, or, more importantly, didn’t know when not to spend frivolously….”

———————————–
that even applies to tragedies:
add up all the money you’ve spent on fire insurance for your residence.

Then read the paper or watch TV to see folks, who unfortunately lost their home to fire and had no insurance.
Bailed out by government.

I know my post will be unpopular, but it’s nevertheless
yet another example of what the original poster referred to.

#98 Brian on 02.17.17 at 9:17 pm

When did it change from for the people,by the people to
screw the people.

#99 Pete from St. Cesaire on 02.17.17 at 9:19 pm

‘Whatever laws the majority want, those are the laws that will exist.’
—————————————————-
ROFL. When has the populace ever even been consulted about the key issues such as immigration, family law, etc? The most far-reaching, society-altering and divisive actions of government stem from the orders from higher-up’s (NWO).

#100 conan on 02.17.17 at 9:20 pm

RE: #20 TraderX on 02.17.17 at 6:22 pm

“Someone please tell me how we change this…”

Nothing less then a jolt to how we think and how we operate. Whatever it is, it will be big.

We need government to spend money smarter and we need lower middle class jobs to start paying more. We might see government start ditching private contracts that are not working very well. Snow removal, post delivery, road construction. Quite a few areas that we thought we would save money, are turning out to be a rip off to tax payers.

As far as Trump goes I don’t even know where to begin. He needs to do something. So far it looks like he is going to be a bad President, and his business’s are going to suffer to the point, where he might be ruined.

The PTB might not even give him a chance. Meaning, no one is going to help him, do what he wants to do

He is in a Viva la Vida situation. It is like watching a train wreck.

https://www.youtube.com/watch?v=dvgZkm1xWPE

#101 Cdn Mom on 02.17.17 at 9:20 pm

The government has succeeded in dividing us, and we snipe at each other over tax rates, tax breaks, etc.

What we need to be doing is biting at the heels of government over excess spending, waste, mismanagement, and corruption. Tax rates may not need to rise if they stopped spending like drunk sailors, especially giving money away to foreign countries like Trudeau did upon entering office.

I’ve sent angry letters to politicians at all levels, have you?

#102 Damifino on 02.17.17 at 9:24 pm

#54 TRT

Someone earlier this week wrote a “Dollar is a Dollar is a Dollar.”
——————————————–

Yeah, I’m glad he went away.

I didn’t get a chance to tell our comrade that a politburo dollar buys more than a proletariat dollar.

But he probably knows that.

#103 45north on 02.17.17 at 9:36 pm

Rick Fast: 30% drop in GTA real estate values coming to a theatre near you!

isn’t this the real point? I mean a 30% drop across the board is going to be way more disruptive than an extra tax on 1% of the population. A 30% drop in real estate is going to directly effect 70% of the population.

As far as the likelihood of a 30% drop: Ross Kay says BC has already dropped 20%. He says it looks like 27% right now.

Leo Trollstoy: from your link: An average new single-family detached home in the Greater Toronto Area (GTA) was $1,264,604 in 2016,

the average family cannot afford the average house. Not even close. So if there is a decline in the housing market there are no fundamentals to support it. I say there’s going to be a 30% drop. In the GTA.

#104 DH on 02.17.17 at 9:38 pm

I’ve been a small businessman for over 20 years in Alberta and one thing has been apparent to me over the years. Small business peeps are SO busy handling everything from absentee employees to shifting government policies on a daily basis that we are virtually ships at sea unable to organize due to time and responsibility constraints – we are, therefore, easy targets. We are the envy of those who are risk averse AND the target of any cash strapped municipal, provincial or federal governing body.

We’re easy prey simply because we aren’t organized but most of the .01%ers are personally acquainted and could decide to cripple whole industries at whim if pushed too hard by the populous.
Anyone running a small business want to unionize?

#105 Pete from St. Cesaire on 02.17.17 at 9:42 pm

‘Plus taking from ‘those who have’ always seems justified, until the day comes when ‘those who have’ turn out to be you.’
—————————————————-
Exactly. It won’t be too much longer until all of those who pickled themselves in debt and can’t make ends meet consider ‘John Q. Oldman’, a retired senior the next town over, owning a modest 1950’s house and having $50,000 to his name to be too wealthy and in need of being forced to participate in wealth redistribution and give others access to their ‘fair share’ of his life’s work.

#106 Nero on 02.17.17 at 9:43 pm

Suckers to the side….

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

Hit it boys!
Never gets old…

https://youtu.be/9vQaVIoEjOM

#107 IHCTD9 on 02.17.17 at 9:43 pm

#94 karlhungus on 02.17.17 at 9:07 pm
http://business.financialpost.com/personal-finance/mortgages-real-estate/chasing-the-canadian-dream-the-real-force-behind-the-housing-boom-in-our-big-cities

1 out of every 2 new homes is purchased by an immigrant.

Not really. This is new builds only, and only in the GTA. The word “immigrant” refers to someone not born in Canada, but does not preclude them being a Canadian citizen and resident. Just like you, snowflake. — Garth
——

The entire GTA population itself is probably getting damn close to 50% not born here. Only makes sense home buyers are at the same ratio.

I’d expect a solid majority of house purchases to be made by immigrants if cheaper used homes were figured in, most newcomers aren’t loaded down with cash.

#108 Newcomer on 02.17.17 at 9:46 pm

Excellent post, except for the whining from the rich guy at the end. Nobody likes a whining winner.

Now, I’ll take my turn at being annoying and point out that, “The die are cast,” should be “The dice are cast,” or more traditionally, “The die is cast.” The plural of one die is dice.

#109 Bottoms_Up on 02.17.17 at 9:55 pm

Well the 99% pay 33-46% in tax, and with the remainder can’t afford to live? And income inequality is at the highest level in recent times? So, what does the 1% expect???

#110 Uncle Jim on 02.17.17 at 9:59 pm

Warren Buffet pays a lower % tax rate than his secretary.

“Buffet pays Debbie Bosanek $60,000 per year in wages meaning she pays less than 21% in federal taxes. According to Berkshire Hathaway, the company pays Warren Buffett an annual salary of $100,000 meaning he pays around 38% of his wages in federal taxes. Buffett’s federal tax rate on his wages is almost double that of his secretary. Bosanek also receives stock compensation every year in the form of a gift of Berkshire Hathaway stock from Buffett on her birthday (worth more than $200,000 per share). She pays no taxes on these gifts (any taxes owed would be Buffett’s responsibility). When she sells her shares she pays a maximum 23.8% tax rate.” Ever heard of Google, Uncle Jim? Or do you prefer your news fake? — Garth

#111 Pete from St. Cesaire on 02.17.17 at 10:04 pm

Now, I’ll take my turn at being annoying and point out that, “The die are cast,” should be “The dice are cast,” or more traditionally, “The die is cast.” The plural of one die is dice.
———————————————-
Not since by ‘die’ he is referring to the milling and manufacturing implements: tap & die. The plural is not taps & dice.

#112 traderJim on 02.17.17 at 10:12 pm

#70 Political analyst

I think you have it pretty much bang on.

My lefty friends (lots of them) get all excited when there are anti-Trump protests, thinking it somehow reflects on Trump and will reduce his popularity.

Of course, my righty friends (lots, but less likely to speak openly) see the protests as proof that Trump is right and that his opponents are hypocritical fascists.

The media thinks Trump is turning the public against them, but reality is people turned against them long ago and Trump finally gave them a voice.

So the left hyperventilates over the press conference, and the right are high fiving and incredulous that someone finally put the press in their place.

Trump is not creating the mood in the country, he has his finger on the pulse (as Bill Clinton so cleverly realized) and is responding to it.

Textbook populism.

That’s also why he changes his positions often. He tests ideas publicly, sees the response, and adapts.

A while back he slammed Boeing for the excessive cost of Airforce One. Today he praises them.

Ignorant people think he’s confused, which is why they keep under-estimating him, much to Trump’s delight and continued success.

It’s all fascinating and I’ve learned more from watching that guy for the last 6 or 7 months than I ever did in grad school.

#113 Doug t on 02.17.17 at 10:15 pm

#67

I’m sorry I hurt your feelings – I’ve got a toonie for you two

RATM

#114 Doug t on 02.17.17 at 10:20 pm

#67

Too – pffft

#115 Doug t on 02.17.17 at 10:21 pm

Oh forgot

RATM

#116 45north on 02.17.17 at 10:23 pm

die, noun

https://www.merriam-webster.com/dictionary/die

#117 1% and very proud on 02.17.17 at 10:27 pm

#59 Tim
Good for you buddy, enjoy ur early retirement it’s well deserved. People that are jealous of the 1% are lazy…..
They have no clue what it takes to make money. They can all kiss my hairy bum!

#118 Crazyfox on 02.17.17 at 10:39 pm

Watching Trump yesterday was quite something. It was a spectacle. There’s Trump defending 2 individuals with known ties to the Russians, Flynn and Manafort. So here’s what’s interesting about Manafort and its well worth the read:

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

Manafort made his way to fame lobbying on behalf of the likes of Ferdinand Marcos, a dictator famous for corruption and brutality for 20 years in the Philippines until his ouster by the people’s revolution in ’86 where he travelled to Hawaii in exhile until his death in ’89. Marcos is said to have stolen between 5 and 10 billion from his nation.

Manafort had a love for lobbying on behalf of brutal dictators who plundered their nation’s coffers.

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

Mobutu Mobutu became notorious for corruption, nepotism, and the embezzlement of between US$4 billion and $15 billion during his reign.

Here’s another one of Paul Manafort’s prize clients, Jonas Savimbi:

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

When one reads the links, one will recognize “The heritage foundation” as having a great deal to do with hundreds of millions approved by congress to aid Savimbi with a rebel war in Angola, funds that kept flowing well after the civil war was over. Some readers might remember “The Heritage foundation” as a group the Koch brothers regularly supports:

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

The Koch brothers indicated that they intended to raise almost $880 million in support of candidates in the 2016 elections,[17] and have given more than $100 million[18] to conservative and libertarian policy and advocacy groups in the United States,[19] including the Heritage Foundation and the Cato Institute, and more recently Americans for Prosperity. And the Heritage foundation:

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

… was instrumental in Trump’s transition to power providing not only guidance, but appointments. A clip:

The Foundation has gained unfettered access to the Trump administration:[35]

Three sources from different conservative groups said that Heritage employees have been soliciting, stockpiling and vetting résumés for months with an eye on stacking Trump’s administration with conservative appointees across the government effort to have the right kind of people in there.”

But I digress.

Paul Manafort’s lobby efforts led him to be listed amongst the top five lobbying firms receiving money from human-rights abusing regimes in the Center for Public Integrity report “The Torturer’s Lobby”.

After involvement with other public figures who would later go on to scandal, Manafort winds up lobbying to get Viktor Yanukovych elected in the Ukraine from 2004 to 2010:

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

Yanukovych was removed from power in Feb of 2014 and in exile to Russia from charges of Treason, mainly for trying to instill pro Russian, pro Putin policies. For Paul Manafort to lobby for Viktor Yanukovych is to lobby for Putin.

So here’s Trump on his buddy Paul Manafort. Its quite the pack of lies to watch. Go to 27:30 on Trump’s presser where Trump talks about Manafort as being a “respected man, a well respected man. I think he represented the Ukraine or the Ukraine government or somebody but everybody, people knew that, everybody knew that. And he says that he had absolutely nothing to do and never has, with Russia.” Then Trump goes on to tell some more lies. Does anyone actually believe Trump doesn’t know Manafort’s history? Trump is either a “bigly” liar or a “bigly” fool.

https://www.youtube.com/watch?v=W5FRUM-AK9k

Manafort didn’t just work for Yanukovich, in 2007 and 2008 he worked for Oleg Deripaska:

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

Deripaska is one of Russia’s billionaires:

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

Who’s missing on this list? Vladimir Putin. The numbers floating around on Putin’s worth is $ 40 billion and he didn’t get it from his days as a KGB agent. The word Kleptocracy:

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

… was invested for dictators like Putin. If that number is correct, it makes Putin the most successful criminal in the world in this century. But that’s for another long winded comment. Just thought I’d stop in and share the kind of aids Trump likes to surround himself with. Paul Manafort was the national chairman of the presidential campaign of Donald Trump.

#119 Yuus bin Haad on 02.17.17 at 10:44 pm

That’s better Garth – not much we can do about it (other than prepare).

#120 Fortune500 on 02.17.17 at 10:45 pm

I would be far more concerned about government workers and pensions when considering financial disparity in this country than our dwindling private sector 1% ers.

#121 Entrepreneur on 02.17.17 at 10:50 pm

I think Canada should do exactly like Trump said in South Carolina but substitute Canada for USA. Today on the news three ships were built in Poland but with our tax dollar. Trump would not allow that and I have to agree. What is wrong with our shipbuilders, our materials, our leaders?

TGF, having a couple of drinks and to Canadians.

#122 Sydneysider on 02.17.17 at 10:51 pm

Not to bash the 1%, but if x % of their income is being removed by taxes, then (100-x) % of their incomes is being paid by the other 99 % of the population.

It may be the opposite. — Garth

#123 BillyBob on 02.17.17 at 11:08 pm

When I envision Canada in about ten years, I see a place populated by clones of doug t and Keith, living in a cheap rented apartment, smoking legal pot while spending the day alternating between raging about how unfair it is that others are wealthier than them, and trying to figure out which government candidate will give them the most $$ in their social assistance cheques.

Meanwhile, those with the actual wealth, the entrepreneurs, the small-business owners, the high-paid professionals…have quietly left.

Well, ok. Maybe it’s already pretty close to that.

I appreciate the efforts of this blog to encourage people to manage their finances sensibly and responsibly. For those for whom leaving Canada isn’t an option, it makes sense to manage what you have in the most prudent manner possible. It boggles my mind that for providing this terrible injustice, people actually abuse the blog host.

But with every day, each post only hardens my resolve to never again put a single cent into such a poor investment, as Canadian taxes have become.

I hope one day the pendulum will swing back to sanity, but I have a bad feeling the race to the bottom may be almost impossible to stop. Once greed and envy have been normalized, as they have, I don’t see a way to convince people that trying to take from others will ever solve anything.

#124 Alex on 02.17.17 at 11:12 pm

No it’s not the ‘population’ who is paying the top 1% their income.

It is hard studies followed by hard work.
You work, you get income.

And doctors would make even more money if our health system was completely private. The best doctors would be well sought after and would charge accordingly.

You won’t be able to use your ‘gift’ health card when going to see your doctor : you would directly pay him or her as it was the case decades ago. Same as a plumber, a lawyer, a roofer …

It is not because health appears to the average person to be ‘free’ in Canada that doctors have to work for free !!! Complete nonsense.

#125 westcdn on 02.17.17 at 11:13 pm

Wow, that is pretty firm…
westcdn on 02.17.17 at 4:51 pm
DELETED

#126 Smoking Man on 02.17.17 at 11:17 pm

DELETED

#127 steerage steward on 02.17.17 at 11:21 pm

Read nytimes to be informed, zerohedge to be entertained, and greaterfool for both.

#128 Another Deckchair on 02.17.17 at 11:28 pm

#120 Fortune500

“I would be far more concerned about government workers and pensions when considering financial disparity in this country than our dwindling private sector 1% ers.”

Why? You ever worked both sides of the private/govt fence?

I did – if I had stayed private sector, and saved the difference in salary, I’d be better off than I am with the federal government pension, but hindsight is 20/20 and the move to/from was for enjoyment not money, but….

#129 the Jaguar on 02.17.17 at 11:29 pm

I see Garth used the Revolution word. That’s really what’s happening. On so many levels. It’s a ‘rising up’ not different from the character in the old movie ‘Network’ where the old broadcaster pulls up the window, sticks his head out and yells “I’m mad as hell and I’m not going to take it anymore”. Some rise up against political correctness at the expense of common sense and fairness. Tired of old liberal platitudes. Tired of some corrupt politician continually blowing smoke up their ass. Others, like the millennials rave on and blame the boomers for everything. Funny how they have adopted the fashion, music and ideas of that same generation with such tenacity. Their imagination and inventiveness were strangled out of them by their helicopter parents, I suppose. Pretty sure there is something else coming as well. Another type of Revolution. One where those who remember a more meaningful time before Madison Avenue really sunk its claws into all us. A time when personal privacy was revered. Communication was less frequent, but more meaningful. When value meant more than volume. When we owned things and they didn’t own us. So we could enjoy them more. The great thing about those who may wish to join this new Revolution is that there won’t be any generational divide. If you think less is more, human connections matter, paying your way forward is more rewarding than squeezing everyone around you, then it doesn’t matter whether you are 25 or 65. You can just wink at each other across the room in that knowing way that says ‘ Life is pretty great once you have your priorities straight, huh?”

#130 Barb on 02.17.17 at 11:44 pm

Tonight’s Bill Maher show on HBO was absolutely bloody
S U P E R B !

Excellent “take” on Trump from an editor of Breitbart (yes), an author who spent many years in Intelligence…
and a couple others.

Will repeat on HBO Sunday morning (on Bell).

Special guest: Leah Remini, famous for having escaped from Scientology.

What a show tonight! Wow
Watch if you can.

#131 stage1dave on 02.17.17 at 11:46 pm

Great topics this week, tho as one poster commented a bit depressing overall…oh well, life’s like that sometimes…reality can suck.

Even tho Mr. Trumps’ presidency is still fresh, I am finding him quite entertaining. Very refreshing to hear someone just throw his opinions out there without the usual hand-wringing and unctious insincerity that is the hallmark of most politicos…he’s makin’ Thereon Fleury look like a team player, FCS.

(and I remember what a great winger he was in his prime!)

He’s obviously PO’d a fair amount of the establishment and the entrenched PTB, and is probably viewed as “uncontrollable”…that’s cool by me, because I can’t possibly understand how this wingnut could possibly screw things up more than the prevailing order has managed to screw things up since WW II…as Galbraith sagely observed, it was up to “us” to use our “victory” to better account.

Look what a couple generations of Ivy League educated PHD’s, Harvard and Yale intel operatives, their banksters, generals, political hacks, and an endless parade of nodding donkeys have accomplished…the world is a cesspool of war zones and inequality. We’ve been goin’ backwards for 30 years, and a sizeable minority of the American population has figured that out and “anti-voted” haha

Mr. Trump could yet turn into the gestation of all their collective wet dreams, and perhaps for all the wrong reasons…

Regardless of a person’s political stripes, we could use a few more peeps behind lecturns who don’t need teleprompters! And as I think a major reset is needed anyway, couldn’t care less if Mr. Trump is (or is not) the catylyst.

Re: his dis’n the MSM, they’ve collectively earned that disrespect from every thinking person on the planet decades ago…unless you’re investing money or looking for sports innuendo. Fluff n’ crap interrupted only by advertising and breathless stories about the latest outrage…which is forgotten as soon as they “expose” the next outrage. Bread n’ Circuses, indeed…

No serious investigative reporting, no discussion of truly important topics, certainly no postulations of intelligent solutions…RIP MSM, made yourself irrelevant all by yerselves!

Re; the issue of taxes I’m fairly ambivalent…I decided years ago “how much was enuff” altho’ I’m always chasing more, and can’t remember any enterprise or project I started where potential “taxes” were worried about…when I “made” money, I paid taxes…big deal. Sometimes I paid taxes when I didn’t make money…crap.

I chose (repeatedly) to return to Canada because this is where I feel most comfortable living and working, and I have other considerations besides money. I choose to put other talented Canadians to work (occasionally) because I believe that makes for a better community, of whatever size or shape.

That’s as patriotic as I’ll get tonite, but in conclusion if filling my pockets with lotsa money was my principal concern I woulda moved to the USA three decades ago.

Nice thing about a “democracy” is that the door can swing both ways, eh?

#132 Trumpophobia on 02.17.17 at 11:52 pm

The Trump bashing in the press, tv shows compares to propaganda campaigns in former Communist countries against US presidents during the cold war.

Even there it was more toned down, because the commies knew that too much of it would be counter productive.

The main stream media have gone completely insane in a relentless character assassination exercise from day one since Trump showed up on the political scene.

That’s the reason why the poll shows that 45% of American finds Trump more credible, vs 42% of the media.

#133 ANON on 02.17.17 at 11:58 pm

Well, this blog won’t change anything. The die is cast.

Now that is wisdom. And probably (hopefully?) acceptance, which is the closest to bliss one can ever hope, without becoming consumed in endless contradictions, which any and all blogs and their comment section exhibits these days.

#134 Annek on 02.18.17 at 12:01 am

Lots of references here in the comments section regarding taxes on the 1% ( 300,000) But all these people are declaring their income.
How about the rich underground economy, such as home renovators, contractors etc who work for cash and get paid obscene dollars and pay very little taxes. Wonder what percent those people are? How much do they make?
In addition, these tradespeople exchange services for free, avoiding the taxman.
I am hoping for a housing crash that will slow the home renovation business and underground economy.
The government should be focusing on catching the evaded taxes of these groups. Perhaps they may not have to rely so heavily on taxing the others who report their incomes.

#135 westcdn on 02.18.17 at 12:05 am

It is funny for what I am deleted. Power to you Garth. I will not back down.

Foul language. — Garth

#136 Julian on 02.18.17 at 12:07 am

#15 Mark
you nail it in the bull’s 3rd eye.
my vote is for you..

#137 NEVER GIVE UP on 02.18.17 at 12:19 am

#15 Mark on 02.17.17 at 5:57 pm
The problem in Canada is that too much of the ‘wealth’ of the 1% came from government subsidy or government employment. And not enough from honest private sector employment in unsubsidized or un-protected industries.

For instance:

Doctors — they get to the 1% largely due to government protection of the profession, and government payment for service.
ETC. ETC.
====================================
Well said Mark!
So many businesses are dependent on an artificial barrier to entry because of friends in Government.
Condo Builders bribe virtually all Mayors, or their subordinates for favoritism.

Many industries thrive on intense regulation that keeps out competition.

This is outright theft from hard working small businessmen left out in flailing in the wind picking up the leftover scraps.

You criminal beneficiaries shall see come judgement day whether it was worth taking that which does not belong to you.

Have a nice life! You did well stepping on the necks of the little people on the way up!

#138 Tower on 02.18.17 at 12:49 am

What is stopping you from attempting it? — Garth
——————————————————-

Well to be honest nothing. (I mean the last person I talked politics with (civilly I may add) was a doctor, and it may be a little late for med school). However there’s no reason I couldn’t strike out, start a business etc etc. It’s a democratic country with a free economy.

However I LIKE my job, I enjoy the field I’m in and am trying to further myself in it. I recognize I’ll never make the top 1% (at least not without some savvy investing, then possibly at a late stage of my life). I’m perfectly content working in a field I love and making significantly less then the 1%ers. I PRESUME the 1%ers enjoy what they do too (be it doctor, lawyer, businessman, whatever) and they make a TON more money than I do by doing it. If I’m OK paying my taxes, why can’t they be OK with paying theirs (and still walking away with a TON more money than me)?

For the record I’m talking income tax here. Some of the recent developments regarding TFSA slashing, principal residence taxes, etc. etc. I’m not impressed with.

#139 Terry on 02.18.17 at 12:54 am

WOW …. ! Garth ………… and absolutely accurate and stunning post describing exactly where our societies are at right now. Create Fear, Distract, Divide and Isolate ……….. to get CONTROL of you! This is what Governments everywhere are doing now! It’s from pages taken from Corporations Management Handbook’s. I believe this management style was called “Management By Upset.”

#140 Stock Picker on 02.18.17 at 12:56 am

People being set at each other’s throats because one has an extra can of beans in the shopping cart must be politically profitable, because these Liberals are head sacking Canadians with massive tax increases that create poverty …. not equality…. big diff.

Canada is the country I know of that has so many ‘rat lines’. To inform on your neighbour is encouraged. He may have washed his car…and it’s a learning moment for a cul de sac when the city inspectors show up. Canada is also the road rage capital of the world. All those unaffordable car lease pmts are driving people to fisticuffs….after all…when the boss is reaming you every day knowing you took out a million dollar mortgage you can’t hit him… right…you can’t hit Trudeau and Moroneau….it’s either wide beating, child abuse or the guy in the next lane who has a newer model. Of yes folks, the culture of envy, like the low birth statistic is based on egregious taxation…..and an all KD no meat diet.

And Junior, this ripping off the seniors income is distasteful….just in case you don’t know. Pick on someone your own size.

#141 WUL on 02.18.17 at 12:57 am

Garth:

Could we have another poll here? Make a note and record all who are threatening to leave Canada and a year from now ask them to report on where and when they moved their businesses and capital too. Probably pointless I suppose on an anonymous comment section. My stance? I am immediately moving my sawmill business and 33 jobs from Revelstoke to Steele City, Nebraska. Mark it.

#142 HFT Dude on 02.18.17 at 12:58 am

#44 Tower on 02.17.17 at 7:17 pm

Why is it every time I hear from, or speak in person with a 1%er they feel their tax burden unreasonably high, but as a guy making 85k/year I’ve never had an issue paying my share of the taxes. If it’s THAT horrible guys I’m happy to trade places with you in a heartbeat! I’ll gladly pay 50% income tax and be making 225-400k/year.

What most people do not seem to comprehend is that no one gets such an income to work 35 hours a week while enjoying plentiful holidays, flex days, sick leave and long lunch breaks. To get there, you need to create even more value through hard work, sometimes at the expense of family life or health. To see the government come in and skim that much is depressing and makes one reconsider if all the hard work is really worth it. Ultimately, if high earners loose motivation, the pie will just get smaller for everyone.

#143 WUL on 02.18.17 at 1:06 am

And, as we witnessed in the lead up to Brexit, those levying threats, namely the BSD’s, were not providing advice that was aimed at assisting the wee folk. It was self serving. It backfired. It gained a big FU. So, those threatening to leave Canada, I say Adios MF.

#144 DON on 02.18.17 at 1:16 am

#56 Vic City on 02.17.17 at 7:51 pm

I miss VREU’s lala land description of the Victoria market with the meme of collapsing sales and falling prices….

It would be good to see a post from her so we can finally confirm the influence of foreign capital on the market which I know she has finally realized..what with a 20% increase in prices in a year and 7 fold increase in foreign capital.

Funny how the silence is deafening…
*********************************

Yikes!

Check out Zolo.ca and explain the price reductions and properties sitting on the market. Not everything is selling like hot cakes only the toni spots.

Of course the party could continue especially as the greaterfools take the plunge. When first-time home buyers are priced out of the market you have a problem.

Bubbles can implode from their own weight.
A house horny pregnant colleague just gave up and is sticking it out in their condo. I helped by explaining that babies don’t need backyards and houses, kids might. But they have time and huge debt lasts forever and when rates normalize ouch.

How many warnings signs does it take to stop the herd?

Place your bets.

#145 TheUnhealthy on 02.18.17 at 1:20 am

The 1% will be too busy working to revolt. Really.

#146 fishman on 02.18.17 at 1:39 am

What to do when the revolution comes?
Remember Mao’s three laws of revolution.
1/ go to countryside
2/control local population
3/wage conventional war at appropriate time

#147 DON on 02.18.17 at 1:41 am

#81 Blacksheep on 02.17.17 at 8:38 pm

Flop # 30

That’s the worst you could find?

The three samples provided mean losses of:

1)100K 2) 57K 3) 30K

Now don’t get me wrong, no one likes losing $’s, but the samples provided are far from catastrophic losses.

I think the market is a lot stronger than you realize.

time will tell….
*************

The meme has changed prices don’t go up year over year. Could be a blip…but the mere suggestion of prices decreases could scare people away from HUGE debt even at LOW interest rates. The market is about human sentiment. But one thing is for sure, it is not 2009 and the whole world is feeling the pain.

What Flop is providing are the cracks in the market and he has yet to run out of examples, which could lead to patterns and further reductions. Things went up fast we can all agree on that…it can go down fast too.

We are a small country, we just watched the largest economy in the world experience a housing bust. But alas we are special and just as dumb, greedy etc.

If Trump lowers corporate tax rates to 15%…we loose. Brain Drain will cycle around.

#148 Van Guy on 02.18.17 at 1:48 am

MC 42 dude… I heard that 2273 Gravy street has a leaky oil tank, likely leaking underneath the house next door that someone without a half a brain just bought. Still some knife catchers out there

#149 I like your posts #30 For those about to flop... on 02.18.17 at 1:52 am

Keep posting, I like your what you say about RE.

A good warning to those that buy in a heated market and then lose when it fails.

All that ever makes the news is those that got rich at the outset of a hot RE market. You never read about those that lost a lot of money, well except for you.

Good you do this. It would be nice to calculate how many losers there were to winners in that overheated RE market. If it like Options, for every winner, there is a loser.

#150 NO Disrespect 1% but Stop Whining on 02.18.17 at 2:00 am

It can get a lot worse 1% w.r.t. taxes and was.

Go here and look at Table 3 – you too Garth (note MTRs from 1949 to 1971):

https://www.fcf-ctf.ca/ctfweb/Documents/PDF/1995ctj/1995CTJ5_02_Smith.pdf

Still feel victimized by a MTR of 54%.

I didn’t think so.

So stop whining, it can get a LOT worse.

#151 millenial82 on 02.18.17 at 2:03 am

Can’t wait until Sunday. Meanwhile I’ll stock up on ammo, rations and gold coins.

Say, the decline we are experiencing is simply the order of democracy as it marches towards it’s own destruction. Since the 99% are now on board, why don’t we all vote to increase those benefit cheques our way 10 fold! Perhaps raise minimum wage to $50/ hour also. Why not? It can be forced after all and if we all agree that’s quite simple. That’s how the idiots think.

#152 Mousey on 02.18.17 at 2:03 am

I don’t mean to go off topic, but wasn’t Edleman the Patriots’ receiver that made that most improbable recovery catch (off the foot of the Falcon’s player) that turned the game around for the most improbable comeback in Super Bowl history?

#153 DON on 02.18.17 at 2:13 am

https://www.rt.com/news/377765-italy-fake-news-bill/

“Italian senators mull making ‘fake news’ a crime punishable by fines & jail”

They agree in principle but not how it will be applied.

Good start though!

#154 DON on 02.18.17 at 2:20 am

Garth

It would be interesting to know if the recent cbc spotlight spiked recent blog visits. It seems like the blog is being over run with to say it politely…the disgruntled and I thought we were the disgruntled. Yikes…eh!

Things must be getting worse out there.

#155 T-Dog on 02.18.17 at 3:18 am

I’m more of a 5%-er Gartho but this post made me weep. Why you gotta be so brutally honest, ‘eh? All this chatter about envy politics and narrow mindedness of the average Canuck, and our refusal to accept evidence counter to our opinions. We’re headed to a deep dark place….I’ve been there personally and lived to tell the tale, but heartbroken to see our entire society headed that way.

#156 Nonplused on 02.18.17 at 3:26 am

#121 Entrepreneur

That is a pretty good question. It’s either we build the ships or pay more for EI. And still pay for the ships.

#157 Cheap Houses on 02.18.17 at 3:53 am

#44 Tower on 02.17.17 at 7:17 pm
“We have paid substantial taxes during the past decades at levels we had already considered punitive.”

Why is it every time I hear from, or speak in person with a 1%er they feel their tax burden unreasonably high, but as a guy making 85k/year I’ve never had an issue paying my share of the taxes. If it’s THAT horrible guys I’m happy to trade places with you in a heartbeat! I’ll gladly pay 50% income tax and be making 225-400k/year.

What is stopping you from attempting it? — Garth

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

There is currently a hiring freeze in the Federal Govt.

#158 Balmuto on 02.18.17 at 4:50 am

I don’t think anyone should ever pay more than 50% tax philosophically speaking because the government should never be entitled to a larger share of your earnings than you.

But people are talking here like we’re going to a Scandinavian tax regime or even communism. That’s ludricrous. Comments like this one (#95 Bob):

“The Canada I knew and loved is gone and I am still wondering what it has been replaced with.”

Totally over the top. Canada is still one of the best places in the world to work in and invest. The opportunities and incentives for talented, hard working and resourceful people are not suddenly being taken away. Turn your gaze to the south if you want to know what that looks like.

#159 Luke on 02.18.17 at 4:51 am

Has anyone looked at the Scandanavian countries as examples of countries where the Rich are taxed heavily? Or France? I know they are in Europe whereas we are next to America, but does taxing the really mega rich really lead to catastrophe? Before the invasion of all the refugees (which was unrelated to taxing rich). Europe was a relative bastion of socialist utopia in comparison to ‘dog eat dog’ America.

I think T2 needa to be careful about how higher taxation on the uber rich is implemented and perhaps, in Canada, instead of looking at individuals, look at Corporations and how the Corporations are treating workers so poorly in many cases, and then find where the problem w/ widespread ‘anti-rich’ sentiment really lies, both in Canada and the States (unfortunately, w/ Trump at the helm…) It is the treatment of workers getting worse.

#160 Freedom First on 02.18.17 at 5:16 am

I do believe not only is the Revolution coming but it has already started.

As people on this blog have stated they are or have already sold out their businesses, practices, and have or are having their assets removed from Canada. Some Canadians are/have already left the Country.

However many more have withdrawn anonymously in a wide variety of ways to cut the tax base as much as possible so as not to support it. They understand the socialist movement taking place being pushed by the rampant hypergamy, entitlement, envy, jealousy, pc warriors, feminazis, welfare generation families, the lazy, the ignorant, and the stupid. They do not wish to support them and their insanity,

The people who have and are withdrawing are the people who can simply afford to sit back, eat their popcorn, drink their drink, and watch Rome burn.

And on Sunday, Garth is going to offer them even more help.

I believe, the withdrawn who have given up trying to make things better, not only love Canada, but are really really pi$$ed with what is going on.

I understand them But then again, I have always put my own Freedom First.

#1
Freedom First
Master of Freedomonics.

#161 OffshoreObserver on 02.18.17 at 5:31 am

Re: the 1%, of which I am one, watch my post about the Onshore/Offshore calculus later this week.

BTW, https://en.wikipedia.org/wiki/Ayn_Rand#Atlas_Shrugged_and_Objectivism

I am Shrugging Redux!

#162 OffshoreObserver on 02.18.17 at 5:35 am

For those can only handle a Cole’s notes of my reference:

The plot involves a dystopian United States in which the most creative industrialists, scientists, and artists respond to a welfare state government by going on strike and retreating to a mountainous hideaway where they build an independent free economy. The novel’s hero and leader of the strike, John Galt, describes the strike as “stopping the motor of the world” by withdrawing the minds of the individuals most contributing to the nation’s wealth and achievement. — from the Wiki referenced above.

#163 3s on 02.18.17 at 5:59 am

The reset will be a war.

#164 Sam the Sham on 02.18.17 at 6:20 am

For those who fear that Canada is unfairly treating the “rich”, don’t be. Apparently Canada couldn’t be bothered in collecting a billion in taxes hidden by the “real” rich. As as a commenter in the article says: “If you’re poor and weak, you’ll have big fines, they’ll throw the book at you, but if you’re a millionaire, if you’re wealthy, you’ll be able to pay only the tax you didn’t pay before you were caught and maybe a bit of interest.” Nobody should shed a tear for the REAL rich in Canada! (and no, $250,000 a year salary is not the rich)

http://business.financialpost.com/personal-finance/taxes/famous-swiss-bank-whistleblower-wonders-why-canada-gave-up-so-easily-on-1-billion-in-unpaid-taxes

#165 cecilhenry on 02.18.17 at 8:22 am

#23:

How much should I keep when it earned: All of it. All.

That it should be someone else’s is the mindset of a parasite. Nobody is property of the state or another.

What is your fair share of what someone else has earned??? It has to be EARNED before it can be taxed and stolen. Double taxation is just double theft.

No service is free — you just want someone else to pay. And the government to use force to take the money from others.

This mindset is very telling: any individual anywhere is available as prey to whoever has a need: your money, your resources, your future, your land, your heritage.

You can ignore these concerns because you are content to rationalize the weapons of state violence and coercion to tax and control objectors forever.

But without this coercion– would you have consent??
Why does consent bother you so much — when its other people????

When anyone pushes the button on the machinery of state violence, why do you not realize this is a personal moral choice?

There is no ‘government’, it is a fiction. Government is a set of people with its hands on the levers of an amoral but obedient weaponized bureaucracy.

You know the answer: you do not, and your insistence on NOT allowing consent–in taxation, education, free speech, immigration, freedom of association, private property, paying for government when its Wanted.

A serf paid 10% in taxes– and Canadians pay 50%.

For the ever growing state, and those politicians, elites and bureaucrats and citizens who insist on justifying and continuing its agenda.

The message is clear: ‘Ethics are done’.

#166 A Dollar is a Dollar is a Dollar on 02.18.17 at 8:22 am

When every dollar earned is treated the same, just like all people – white, black, asian, males, females, older, younger, able-bodied and disabled – are treated the same, there won’t be any culture of envy.

But as long as people suggest that some dollars are “better” than others and should be treated preferentially, we remain in the Jurassic era.

A Dollar is a Dollar is a Dollar.

Hardly. A dollar earned through the sale of time is not the same as one earned by putting it at risk, or one received from dollars lying dormant. The tax system is designed to encourage certain behaviours. If we did not recognize the societal benefit of people risking capital to start businesses, invest in them or create jobs, the economy would be stagger and eventually fail the expectations of citizens, through lack of tax revenue. Give your head a shake. It’s full of dust. — Garth

#167 [email protected] on 02.18.17 at 8:50 am

So there’s only two options: raise revenue or cut expenses. Taxation is only one method of doing the former and I’d even agree that it’s not the one we should be pursuing currently. But I get that you’re also damn opposed to borrowing despite ten year yields ~25 bp below 2% and long-term yields hovering around 2.5%. Also, I’ll set aside the fact that Canada’s debt-to-GDP ratio is low by G8 standards and that growing economies can run small deficits in perpetuity.

So if you want to cut expenses let’s have this discussion, what do you want to see go? OK, OAS is the first to go. What else? I’m genuinely interested in a list of recommended line items to scrap. Also, how would you fund infrastructure needs? I think this would be an interesting post.

#168 Trump is a hero and anti establishment on 02.18.17 at 9:14 am

“pro-Trump sentiment here (now morphing into pro-O’Leary)”

Canadians are beyond stupid as O’Leary is nothing like Trump in fact O’Leary is the exact opposite of Trump since O’Leary hates Canada, hates the middle class, hates well paying jobs for Canadians and hates living in Canada. The only similar thing between the two is they both love and live in the US. Anyone voting for him is beyond stupid.

#169 maxx on 02.18.17 at 9:19 am

#16 crowdedelevatorfartz on 02.17.17 at 5:57 pm

…….”Now we have a mindset of “More wants much”
The mainstream feel that they deserve what rich people have without working for it….because ….
Its their right.
I’m not rich by any means but when I see the potential of my retirement savings being eaten by the people that didn’t prepare for retirement, didn’t care to save, or, more importantly, didn’t know when not to spend frivolously…..”Why buy used when you look so much better in a new leased vehicle….
Angry doesn’t even begin to describe it.”

Excellent post. Envy on one end and fury on the other. Shackle those that did well and rain cash and benefits on the wannabees. Lovely recipe for divide and conquer- oldest trick in the politico playbook.

Strikes me that a good way to protect assets and avoid a large part of being targeted by the stupidity of ruling selfie buffoons and the trailing retinue is to avoid re altogether and be on the lookout for the next investment tax target.

What putrid national sentiment. Garth has it 100% right- people do want to elect and support disruptors. Trust has evaporated and optimism about the future is at an all-time low. Optimism is the Royal Jelly of commerce, it’s what motivates and inspires and it’s now in increasingly short supply- and ALL of society is important to a healthy economy, not simply the designated flavours of the day as decreed by the selfie brigade.

When people are lied to long enough, it’s nearly impossible to get that trust back and very easy to vote in anything that erases the status quo completely.

Bring on the next election.

#170 MF on 02.18.17 at 9:28 am

Wow lots of complaining here about Canada.

Here’s what my millennial self thinks:

The idiots that voted for this clown to “get back at Harper” reap what they sow. Remember the country elected this moron. He didnt just show up. As such, he will be gone in three years and his worthless policies should be reversed.

Second, while a lot complain about the complainers on here and about attracting and keeping the best and the brightest, I don’t think you get out. Here in the GTA at least the vast majority of immigrants do quite well, understand there will be work involved to build a life, and are grateful that they are in a place with opportunities, no oppression, and acceptance. Again i think the policies of The socialist idiots will be reversed eventually. But the basics to succeed are here.

Third, to those wealthy who are feeling targeted, if you voted T2 you are an idiot. Besides that go on any blog and talk to people from any country and you will hear the same thing: too much tax, too much government i want to leave blah blah blah.

A lot of these people idealize the US but forget that they just had 8 years of socialism under Obama…now when the Americans learn the lesson and vote a guy like Trump they are the first to criticize what he is doing.

Pathetic.

Lastly If they want to go move to a third world country and live like a king in a pretend world financed by the starving locals. I hope they are ignored when they come running back during the next coup or natural disaster.

MF

#171 Trump is a hero and anti establishment on 02.18.17 at 9:36 am

Mark#15

Exactly mark the problem is the elite or certain vested interests dont earn a living in the open and free markets like bankers , mortgage brokers , realtors. These useless people destoried the Canadian economy to the mess we are in today. CMHC should be eliminated today. No grace period just end it. Free and open markets will correct all of Canada’s problems.

#172 maxx on 02.18.17 at 9:47 am

#20 TraderX on 02.17.17 at 6:22 pm

…”I talk with old timer business leaders from the 70’s and the world they describe and the freedom to work and build wealth sounds like a foreign country! But it was the Canada I was born into. Today, I barely even recognize what the old timers describe.

Someone please tell me how we change this…”

Vote ’em out!

#173 traderJim on 02.18.17 at 10:04 am

#161 Offshore

I went Galt a decade ago.

The day without immigrants is kind of a similar concept. Withdrawal of services to make your point.

Rand of course was a very strong supporter of immigration, but I do wonder how she would have felt about unrestricted Muslim immigration at this point in history.

Being a much smarter person than I am, and being able to see the bigger picture, I bet she probably would not oppose it.

I still think that if we are going to continue to pick and choose the people who we allow to immigrate, why would we prioritize ones that predominantly believe women are inferior and that gays are evil, and that it’s ok to kill anyone who draws a cartoon picture of ‘allah’ etc.?

Why not choose people who are more aligned with our own values?

I could be persuaded otherwise, but have not heard a rational argument for the opposing view yet. Just a lot of anti-white, racist nonsense.

#174 Bank of Millenial on 02.18.17 at 10:08 am

Folks on this blog could learn a lot from what the Evan Siddall et al. are saying in the standing committee on finance meetings.

http://www.parl.gc.ca/Committees/en/FINA/Meetings

Negative demand externality seems like a good way to describe 2017.

#175 Joshua Carriere on 02.18.17 at 10:09 am

Three words: Universal Basic Income…it’s coming for us all Garth!

Yanis Varoufakis: Basic Income is a Necessity
https://www.youtube.com/watch?v=BvgdtF3y0Ss

#176 Penny Henny on 02.18.17 at 10:27 am

http://business.financialpost.com/personal-finance/mortgages-real-estate/chasing-the-canadian-dream-the-real-force-behind-the-housing-boom-in-our-big-cities

1 out of every 2 new homes in the GTA is purchased by an immigrant.

100% true. Tell me where there is an error in this statement.

#177 economictsunami on 02.18.17 at 10:36 am

So much for markets despising uncertainty.

Just another narrative thrown to the dustbin of history…

Chasing the Canadian dream: The real force driving the housing boom in our big cities

http://business.financialpost.com/personal-finance/mortgages-real-estate/chasing-the-canadian-dream-the-real-force-behind-the-housing-boom-in-our-big-cities

#178 traderJim on 02.18.17 at 10:40 am

#67 Rage

I see lots of people here implying that the wealthy do not deserve their wealth, that they didn’t work for it, that they just got lucky, etc etc.

It’s an immediate tell for someone who has never started a business, managed employees, risked their life savings, struggled to get a business going, lost everything and gone bankrupt trying to make a go of it (the same idiots who think Trump’s 4 bankruptcies out of 500 businesses are somehow a criticism, lol).

I hate to be pessimistic but these folks will never see the light until they are forced to.

Right now they live their subsidized lives day to day, bitching about how they don’t have a chance, while millions of people who started with nothing become rich in front of their envious, lazy, eyes.

Hell, even if you didn’t have a chance at a good education (hard to see how that’s possible in Canada) the pay rates for tradespeople is off the charts.

Where I live $65 an hour for an electrician is the low end, plumbers charge $90 just to show up and give you an estimate, and masons/bricklayers make $500 to $1,000 a day, easily.

Freaking house painters charge $50 an hour.

So I don’t have a lot of sympathy for the whiners who never ask for the government to help employers to be able to hire more and pay better wages, but instead just beg the government to take more from the ‘rich’ so they can get a free ride themselves.

I see Trudeau is getting all kinds of adulation for berating employers for not paying enough.

No doubt his ‘solution’ will be more regulations that employers can’t afford, more barriers to starting a small business, higher costs to employ someone, higher taxes meaning less left for investing in the business, etc etc.

It’s a lost cause I’m afraid. Time to go on strike.

#179 Whitey on 02.18.17 at 10:41 am

I have never understood how a complete stranger would waste their time arguing with another complete stranger. I read your blog daily Garth, but the comment section has become unbearable. I got to maybe #50ish and had to bail. How do you tolerate vetting all of these posts? Keep blogging!

#180 traderJim on 02.18.17 at 10:43 am

I should add, to the younger generation, things are not as easy as they should be, and the economy is not that great (unless you want to learn a trade, which is not for everyone obviously).

But government is the reason things are this bad, and looking for them for the solution is like asking the arsonist to help rebuild the house he just burned down.

#181 joblo on 02.18.17 at 10:43 am

News flash, in celebration of Kanuhduh’s 150th birthday,
Your new National Anthem:
https://www.youtube.com/watch?v=ZclddLcOYYA

#182 Ponzius Pilatus on 02.18.17 at 10:46 am

DELETED

#183 Pre-retiree on 02.18.17 at 10:49 am

Excellent blog Garth. The envy you mention certainly has been in evidence even here in many of comments on this very blog. I was wondering what was the source of my generalized anxiety and malaise lately. I wonder no more. I am also one of the 1% that overcame growing up in an impoverished family, after many years of hard work and sacrifices. And now I wonder, what for?

#184 Pre-retiree on 02.18.17 at 10:57 am

#19 Melvin

Now that I am reading all the comments, I see that I am not alone in my feelings….

#185 Pritzl on 02.18.17 at 10:58 am

“Is taxing our few (286,000) wealthy people at 54% okay?”

Look, it’s fine to argue that a 54% marginal tax rate is too high but it’s just that, a marginal rate. We don’t need more disinformation or we could end with our own Trump. The way you wrote that is designed to exaggerate, if not mislead, that the rich are taxed at 54% effective rate.

#186 Rexx Rock on 02.18.17 at 11:00 am

We’re in the last days of free speech, entrepreneurship and dealing with cash.Total control,thats what Canadians want and will get by their government.The young people should read 1984 and see whats in store for them.

#187 For those about to flop... on 02.18.17 at 11:02 am

Pink Snow falling in Vancouver.

This nine year old condo in Coal Harbour was picked up for 1.58m in May 2016 and even though the assessment rose by 33% from the previous year, only came in at 1.4m.

After re-listing in the fall ,it has had a couple of price reductions and is now down to around 4.5% more what they purchased it for with no wiggle room left…

M42BC

Bought for 1.58m

For sale 1.65m

https://evaluebc.bcassessment.ca/Property.aspx?_oa=RDAwMDA5RUtDSw==

https://www.zolo.ca/vancouver-real-estate/1277-melville-street/902

#188 Mike in Toronto on 02.18.17 at 11:04 am

#24 Adam

The “Conservatives” didn’t exist in 1984.

You mean the PCs. They were annihilated after Mulrooney, then the religions right joined their ranks to bring in the West.

#189 Reply to #165 cecilhenry on 02.18.17 at 11:07 am

This polemic is a classic and astonishing demonstration of the free rider problem.

#190 Stock Picker on 02.18.17 at 11:14 am

#166….the problem with your theory is that it’s the socialist unions who out of envy want the same compensation for watching porn as the doctor who put in 18 hr days for 15 years.

It’s the union member who risks nothing and invests nothing but 2 bucks on an alarm clock to wake up in the morning and show up at a job where he’s been given everything….yet they still want more…profit sharing and higher salaries than a professional who sacrificed to obtain and engineers ring.

The civil service likewise creates zero wealth…but assumes it’s worth more than 40% more than anyone else. The politics of envy start with parasites who are lazy shiftless socialists…too lazy to work and too chicken to steal.

The egalitarian utopia you suggest is just theft from the diligent to reward the greed of the malcontent. Imagine your world without capital risk….where would you work…who would pay for your social programs and welfare for African dictators? You want utopia? Imagine Canada being like Cuba…..without the beaches and sunshine….because if it wasn’t for the warm Caribbean location….Trudeaus father Fidel would have hung from a lamppost long before. ….because everyone would have starved and shivered to death and forced to act….much like what is brewing in Canada today.

#191 Tron on 02.18.17 at 11:19 am

Although I find you personal advice to be immensely helpful, and I am thankful for that, this is a bit over the top. But it is your blog and I generally enjoy and benefit from reading it.

Yes, the tax system is designed to spur investment, risk-taking and growth. It is also designed to redistribute the wealth that the economy generates. You act as if the economy (and the elites who drive it) left to itself would resolve the very anxieties that emerge from the very inequities and alienation it creates. Government has always had to step in to mediate these tensions; economies and capital let loose have always stretched too far.

Capitalism requires risk takers. It requires elites to invest and entrepreneurs to develop their ideas. But its effects also needs to be mediated.

I guess what I’m saying is that there is a middle ground and I think, as a progressive conservative you believe that too although we disagree about where that line is. I’ve always had more respect for the PCs the Libs. I just wish you wouldn’t call the Libs “lefty”! There are countries that redistribute more and are much more innovative than we are. The question is, how do they do both?

#192 A Dollar is a Dollar is a Dollar on 02.18.17 at 11:19 am

When every dollar earned is treated the same, just like all people – white, black, asian, males, females, older, younger, able-bodied and disabled – are treated the same, there won’t be any culture of envy.

But as long as people suggest that some dollars are “better” than others and should be treated preferentially, we remain in the Jurassic era.

A Dollar is a Dollar is a Dollar.

—————————————————————

Hardly. A dollar earned through the sale of time is not the same as one earned by putting it at risk, or one received from dollars lying dormant. The tax system is designed to encourage certain behaviours. If we did not recognize the societal benefit of people risking capital to start businesses, invest in them or create jobs, the economy would be stagger and eventually fail the expectations of citizens, through lack of tax revenue. Give your head a shake. It’s full of dust. — Garth
—————————————————————

Respectfully, Garth, you are simply wrong.

You exercise willful blindness in suggesting that the sale of time or use of dormant accounts does not involve “risk”and should not be rewarded equally. Any student of economics knows this is not true. There is always risk, always an opportunity cost in how we choose to earn and store our money. (Conveniently, you admonish lusty homebuyers for ignoring opportunity cost, but that concept does not seem to exist when you choose it to disappear)

Because salary earners are usually facing greater challenges than dividend earners, it actually makes sense to tax salary income more favourably. But as Piketty and others so carefully point out, since the Reagan era, our taxation systems have been distorted the other way.

Time for a reset.

In addition, the time value of money already adds a bonus to capital appreciation that salary earners do not get. Leave that as it is, fine with me, that encourages investment. But tax the outcomes equally.

The arguments that say some tax dollars are better than others are truly dizzying. They exactly correlate with the worst impulses of humanity, such as historic sexism and racism.

But mostly, they are just naively oblivious of good economic understanding.

But don’t take it from me, some internet troll.

No one on this blog can match the erudition of this economic and legal mind, just one of many who understand:

A Dollar is a Dollar is a Dollar.

“Present tax law thereby fosters an ever-increasing gap, year after year, between the two of them. The least we can do, to be fair, is to declare all income dollars equally taxable under the same rate tables.”

http://www.post-gazette.com/opinion/Op-Ed/2012/12/28/Tax-all-income-equally/stories/201212280137

#193 CHERRY BLOSSOM on 02.18.17 at 11:21 am

Canadians are so mad at T2. I just finished a project and actually asked them to pay me less so I could stay in a lower tax bracket. I was just offered a one year contract for $300,000. I said no. I am not going to work for Trudeau so he can subsidize things that Canadians HATE. So this is happening for real. T2 is going to go after the small Corporations also. Thats when the revolution will begin.

#194 Pre-retiree on 02.18.17 at 11:23 am

Again, as many have commented here, I can rearrange the way I earn income this coming year, and drastically reduce the taxes I will pay, all legally. I was always comfortable before with paying my so-called “fair share” to help the less fortunate. I understood this well having been raised by my grandmother who was very poor, and unable to work. However, my hand has been forced. As I said, I was already paying my “fair share” whatever that means, but I am not willing to pay an unfair share.

#195 westcdn on 02.18.17 at 11:24 am

#135 westcdn on 02.18.17 at 12:05 am
It is funny for what I am deleted. Power to you Garth. I will not back down.

Foul language. — Garth

I disagree. Sometimes I go over the top – that is my spirit. Once I understand you, I will behave. Foul language – bs.

Foul language will not be published here. Get used to it. — Garth

#196 When Will They Raise Rates? on 02.18.17 at 11:26 am

#165 cecilhenry on 02.18.17 at 8:22 am

#23:

How much should I keep when it earned: All of it. All.

That it should be someone else’s is the mindset of a parasite. Nobody is property of the state or another.

What is your fair share of what someone else has earned??? It has to be EARNED before it can be taxed and stolen. Double taxation is just double theft.

No service is free — you just want someone else to pay. And the government to use force to take the money from others.

This mindset is very telling: any individual anywhere is available as prey to whoever has a need: your money, your resources, your future, your land, your heritage.

You can ignore these concerns because you are content to rationalize the weapons of state violence and coercion to tax and control objectors forever.

But without this coercion– would you have consent??
Why does consent bother you so much — when its other people????

When anyone pushes the button on the machinery of state violence, why do you not realize this is a personal moral choice?

There is no ‘government’, it is a fiction. Government is a set of people with its hands on the levers of an amoral but obedient weaponized bureaucracy.

You know the answer: you do not, and your insistence on NOT allowing consent–in taxation, education, free speech, immigration, freedom of association, private property, paying for government when its Wanted.

A serf paid 10% in taxes– and Canadians pay 50%.

For the ever growing state, and those politicians, elites and bureaucrats and citizens who insist on justifying and continuing its agenda.

The message is clear: ‘Ethics are done’.

—————–

^ What he said

#197 For those about to flop... on 02.18.17 at 11:38 am

Van Guy on 02.18.17 at 1:48 am
MC 42 dude… I heard that 2273 Gravy street has a leaky oil tank, likely leaking underneath the house next door that someone without a half a brain just bought. Still some knife catchers out there.

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

Hey Van Guy, thanks for the info.

Maybe this is why the sale fell through in January.Who knows?

What has happened with the two houses at 2273 and 2281 Graveley st is kind of bizarre,which is why I tried my best to do a case study on it at post number one yesterday ,to shine a light on it.

The boss of this blog has a lighthouse…. I only have a cheap torch that I bought at the dollar store…

M42BC

#198 "SUPERB" Bill Maher on 02.18.17 at 11:40 am

#130 Barb

Tonight’s Bill Maher show on HBO was absolutely bloody
S U P E R B !

Excellent “take” on Trump from an editor of Breitbart (yes), an author who spent many years in Intelligence…
and a couple others.

—–

Bill Maher is actually losing it…

His rants are actually worst than Trump’s – especially for a comedian.

Maher now sounds like a full-time political agitator, instead of an independent thinker – maybe that’s what happens when you put a million dollar in the game and it’s lost.

Up until election night Hillary was the savior of mankind, then after losing, he just doesn’t want to hear her name ever again.

How is that for principled opinion when it comes to the goal of influencing voter support?

His guest “who spent many years in Intelligence” had some ridiculously fake claim about how long would it take and how many people would it require for Wikileaks to release specific batch of emails, to use it as a fake proof that Russian intelligence was behind it, working around the clock, with big resources.

His resource need assessment to carry out the specific task he mentioned immediately disqualified him as reliable expert for anyone who has any experience in the field. Other option is, that the US intelligence agencies somehow abandoned computers and they rely exclusively on manual “intelligence analyst” labor.

For the dumb public he was invited to the show to play the supporting role of the “expert witness” for Bill Maher’s current obsession, that “Russian interference is the biggest scandal in US history” and actively participate in the political goal of removing the elected president.

#199 Victor V on 02.18.17 at 11:46 am

Trudeau blames corporate elites for rise in global public anger

http://www.theglobeandmail.com/news/politics/trudeau-merkel-germany-nato-spending/article34065401/

Justin Trudeau is blaming corporate and government leaders for the spike in global anger rocking world politics, warning that low wages and the shift to precarious part-time work is at the heart of why citizens are opposing traditional powers.

Speaking at the St. Matthew’s Day banquet – an elite, black-tie event in Hamburg with a tradition that dates back centuries – the Prime Minister said companies contribute to public anger when they post record profits on the backs of workers who are underpaid and overworked.

“It’s time to pay a living wage, to pay your taxes, and to give your workers the benefits – and peace of mind – that come with stable, full-time contracts.”

#200 ccc on 02.18.17 at 11:56 am

The Venezolanization of Canada may have just started. It’s all downhill from there.. all the way to ration cards…
We are about to see if the beavers are indeed smart and special and manage to keep their democracy and prosperous country on track versus complete derailing…
Guess bearded Castro after all may have caused quite an impression on little T2 back in the day…

#201 realitybites on 02.18.17 at 11:58 am

I find it funny how “the rich” believe they are entitled to every penny obtained while sucking off the tit of the government.

They don’t seem to care that the state is what enables them to “earn” money. Without protection of the state through laws and force, no personal wealth is earned. Without the state, you do not have functioning markets, you do not have education, you do not have roads to facilitate trade, you do not have agreements with foreign states for trade, you do not have currency, you do not have any ability WHATSOEVER to earn money. You EARNED NOTHING YOURSELF. You owe EVERYTHING to your government.

Speaking in extremes is pointless. Nobody is suggesting taxes go unpaid. But how much is enough? — Garth

#202 MF on 02.18.17 at 12:02 pm

#191 Stock Picker on 02.18.17 at 11:14 am

Ah no.

How about the doc (whose education was highly subsidized by the evil government) that makes an error and has the college of physicians and surgeons to back him regardless???

It aint so black and white.

Businesses, if left totally unchecked, would pay their emplyees 30 cents an hour. How well would that bode for our economy that requires a billion dollars for a semi in Toronto? Im no lefty but we often forget the lessons of the industrial revolution and the origins of unions and labour laws.

MF

#203 TRT on 02.18.17 at 12:02 pm

Reagarding a Dollar is a Dollar is a Dollar.

I’m gonna have to side with the above person. Earning income is a risk. First the parents start a RESP (risk) hoping little Johny goes to university. What if he doesn’t? Then if he does go to university, what if he fails? (Risk). Then after a few years, what if he doesn’t get into a graduate program after having spent money ? Risk. What if he overdoses while in school as he could attend a party school? Risk.

As you see, there is risk on both sides of the equation.

I’m for taxing dollars equally and recognize that working at a job to support a family ( for example overpriced house = risk).

This is getting to the point of absurdity. You clearly have no idea what an investment or business risk is. — Garth

#204 when the whip comes down on 02.18.17 at 12:07 pm

FOR THOSE ABOUT TO FLOP – question, what do you feel the outlook for SFD homes in the burnaby/vancouver border will be for the next 3-5 yrs. I have seen prices have come off by up to 18% in the past 6 months. Are we moving down further? Would appreciate your take on it.

#205 MF on 02.18.17 at 12:08 pm

#201 ccc on 02.18.17 at 11:56 am

“The Venezolanization of Canada”.

Pretty funny lol. Look at our PM gushing over castro the socialist leader’s passing a few months ago.

MF

#206 TRT on 02.18.17 at 12:08 pm

@Dollar is a Dollar is a Dollar:

Taxing all dollars equally is eventuallybgoing to happen. Would have happened already if the electorate wasn’t so dumbed down. The other scenario is when the government starts running out of money due to demographics/waste/corruption as is the case now.

#207 John Smith on 02.18.17 at 12:11 pm

To his credit, “Jerry” at least alludes to being prepared to offshore himself and his family, to whatever country he’s going to offshore his Canadian jobs to.

Statistically the 2nd and 3rd generation squanders the wealth built by the 1st generation, so if history is any guide his grandchildren may thank him, but that thanks likely won’t be reciprocated on his end.

#208 Smoking Man on 02.18.17 at 12:13 pm

Clearly some posters are full blown commies. If it’s so good visit the town of moron in cuba where everyone gets a participation trophy.

You animals have it good here. Appreciate it. All made posable by entrupenurs.

#209 traderJim on 02.18.17 at 12:14 pm

#202 reality bites

Another nice clear view into the soul of the left: Your life is not your own, you owe everything to the state, the state is everything, you are nothing,

Pretty sure you can find quotes by Hitler, Stalin, Mao, Castro and all the other totalitarian dictators stating this exact thought.

‘Your only duty is to the state, do as the state says, or else’.

Positively frightening.

#210 LL on 02.18.17 at 12:16 pm

“Canada has become a country where the fruits of our labor and investment are no longer respected. Every action our political leaders now take, plays to an outcome that is increasingly more hostile to the values we wish to instill in our children….

Never noticed that you work for the government and/or the banks?

#211 Looney Baloney on 02.18.17 at 12:23 pm

Actual quote: “They’re sending people that have lots of problems, and they’re bringing those problems with us. They’re bringing drugs. They’re bringing crime. They’re rapists. And some, I assume, are good people.” — Garth

Come on Mr. G. That’s worse than CNN. Here’s how I read the quote “some of the Mexicans coming over ILLEGALLY also happen to be rapists.” Here’s the CNN version:”Trump calls all hombres rapists!” Geez.

If the Looney left can claim 1 in 5 women in college are “raped”, then get President Obama, the community organizer in chief, to repeat the fake news to the nation, why shouldn’t President Trump tell THE TRUTH to the nation for once?

Those were the words he uttered. They are lamentable, divisive and factually incorrect. — Garth

#212 crowdedelevatorfartz on 02.18.17 at 12:26 pm

@ Doug t and Dollar Dollar Dollar.

Risk all your savings on a dream.
Spend years struggling to make that dream a reality.
When that dream works out and you can finally relax and reap the rewards….
Socialist utopians will arrive and tell you you have too much money and must share it with poor people who risked nothing and didnt work for it.
and thats fair?
Grow up.

#213 conan on 02.18.17 at 12:28 pm

It used to be that being on contract was a good thing. The pay and prestige was higher. Now, it is a kiss of death job. Precarious, part time, and on call. When all is said and done, a lousy gig.

It has gotten to the point where business can not compete for contracts unless they treat all of their workers like this. This started happening about 20 years ago. Now it is a cancer infecting many areas of the economy. I don’t blame business. I blame government for letting it happen, and then turning a blind eye to the chaos that was happening.

If T2 wants to try and fix this, I would support him in this endeavor. Perhaps laws that state any position that pays less then 1000 dollars a week is a job. It can not be contracted.

#214 LL on 02.18.17 at 12:29 pm

…”CNN or the New York Times, meanwhile, have been trashed and marginalized”…

It’s about time!

Why? — Garth

#215 Barb on 02.18.17 at 12:29 pm

“…Justin Trudeau is blaming corporate and government leaders for the spike in global anger rocking world politics, warning that low wages and the shift to precarious part-time work is at the heart of why citizens are opposing traditional powers.”

————————————————–

As though Trudeau knows anything about life for the average working family.

Wonder what WE are paying his two nannies.

#216 LL on 02.18.17 at 12:32 pm

# 15 –
Bankers — banking is heavily subsidized/protected in Canada through the CMHC and other government regulation.

Of course…they sleep together!

#217 Uncle Jim on 02.18.17 at 12:40 pm

“In short, Buffett paid $1.8 million in federal income taxes in 2015 on about $11.6 million in income, for a rate of just under 16%.”

fortune.com/2016/10/10/warren-buffett-taxes-trump/

#218 Euro observer on 02.18.17 at 12:42 pm

#221 John on 02.17.17 at 8:06 pm
#215 Euro observer on 02.17.17 at 4:30 pm

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

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

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

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

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

————————-

Ok , I stand corrected.

Aug 31, 2013 – 0.97
Now – 0.76

drop of 22 % for 3.5 years.

Does that feel better you dummkopf?

#219 White Privilege on 02.18.17 at 12:43 pm

#202 realitybites
While there are a lot of stupid comments in these treads some days, this one takes the cake! So ignorant.

And while some people are justifiably upset with all that’s happening, they still remain open to being robbed in a more fair manor. What!?

Seems to me the government run education system and government run water fluoridation plan in Canada has robbed the men of both their brains and their brawn. Next thing we’ll see is Trudeau’s going to have everyone in canada dressed-up in rainbow jumpsuits and pink hats having pillow fights and pizza with hotdog parties in safe spaces. LOL

What a buncha pansies!

#220 GB on 02.18.17 at 12:54 pm

What “blog dog from the west” seems to have missed is that no one has disdain for hard work and risk. However when the 1% perpetually build ever greater and greater wealth without helping grow the economy via job creation and improved compensation packages for those that work for them….ya….people don’t appreciate that.

“blog dog from the west”….how do you explain the ever expanding wealth gap?

Everyone else is lazy?

Or is it the 1% vacuum that has created a situation wherein we have created an elitist society where opportunities are not evenly distributed? That is not to suggest that everyone cannot succeed through hard work but it is much more challenging for someone who comes from a “have not” background.

#221 LL on 02.18.17 at 1:09 pm

…”What to do as the revolution comes”….

Maybe it’s simply evolution!

…”Faith in business, politicians or reporters is at low tide”…

I wonder why???

#222 When Will They Raise Rates? on 02.18.17 at 1:17 pm

#215 LL on 02.18.17 at 12:29 pm
…”CNN or the New York Times, meanwhile, have been trashed and marginalized”…

It’s about time!

Why? — Garth
———-

Because they are deep state propaganda outlets.

#223 When Will They Raise Rates? on 02.18.17 at 1:21 pm

“blog dog from the west”….how do you explain the ever expanding wealth gap?
——–

Central bank monetary policy. QE, ZIRP and NIRP.

#224 LL on 02.18.17 at 1:22 pm

…”CNN or the New York Times, meanwhile, have been trashed and marginalized”…

It’s about time!

Why? — Garth

I will answer by a question Garth: Why are social media are so popular?

#225 SunShowers on 02.18.17 at 1:23 pm

#179 traderJim on 02.18.17 at 10:40 am

I see Trudeau is getting all kinds of adulation for berating employers for not paying enough.

No doubt his ‘solution’ will be more regulations that employers can’t afford

—————————————-

Here’s a list of “regulations that employer’s couldn’t afford” throughout the years:

1) 8 hour work day/40 hour work week
2) ANY minimum wage
3) Paying women the same wage as men
4) Child labor laws

And yet somehow, executive compensation has risen exponentially, while wages of regular employees have stagnated.

Crying wolf no longer works, so suck it up.

But you know what employers REALLY can’t afford? A customer base too poor to buy what they’re selling.

#226 crowdedelevatorfartz on 02.18.17 at 1:35 pm

We are all equal.

Social “experiments” doomed to failure….
Exhibit A:

https://www.city-journal.org/html/no-thug-left-behind-14951.html

#227 A Rouble is not a Yuan is not a Dollar on 02.18.17 at 1:40 pm

A man buys a rundown heritage building in a pleasant area outside Toronto’s bustle. He refurbishes it at his own expense and then turns it into a small roadside attraction selling ice cream and coffee. He hires some employees to run his the place. They get paid regardless of how many patrons show up.

The usual operating expenses are, of course, down to him. A few particularly bad months occur and the man must make payroll out of his own savings. No employees offer to forgo any part of their wages during lean times. After all, a dollar is a dollar, and they need the money.

The man perseveres. He very nearly goes broke but in a few years his little stand becomes rather popular and makes a decent profit upon which he pays full corporate taxes.

Some big shot from the city thinks he can do even better and offers to buy the place for twice the original investment. The man sells and, travesty of travesties, only 50% of the gain is exposed to tax.

His former employees are disgusted and feel they deserve a piece of that. After all they ‘invested’ their time and took some huge ‘risks’ with hot coffee.

None of them are inclined to risk any actual money of their own in a similar venture since there are already plenty of altruistic folks willing to create employment opportunities with their own after tax capital.

#228 crowdedelevatorfartz on 02.18.17 at 2:06 pm

@#221 GB
“However when the 1% perpetually build ever greater and greater wealth without helping grow the economy via job creation and improved compensation packages for those that work for them….ya….people don’t appreciate that….”
********************************************

Sooooo when someone like Bill Gates creates an invention that eventually makes him the richest man in the world ( and not to mention thousands of other people very rich)
He’s OBLIGATED to share the wealth?
What planet are you from?
He worked hard, invented something no one else had thought of and hit the jackpot…..
Does he need 70 Billion dollars?
Probably not….. and that’s why he and Warren Buffett are giving most of it away…..but to say that they must hand over their money through increased taxation because “their rich and everyone else isnt” …is jealousy wrapped in a social agenda.
Total crap spewed by the lazy and the unimaginative trying to ride the financial coattails of the successful..

#229 RW_Z on 02.18.17 at 2:09 pm

… Garth personally reads and approves each of these comments?

And Trump’s the insane one?

#230 Newcomer on 02.18.17 at 4:23 pm

@ Pete

Not since by ‘die’ he is referring to the milling and manufacturing implements: tap & die. The plural is not taps & dice.

————-

He’s quoting Julias Ceaser, who said, “Alea iacta est,” as he crossed the Rubicon. And, leaving aside the fact that the plural of a manufacturing die is “dies,” as I understand it, the definitive shape of a manufacturing die results from machining, not casting.

#231 Hairhead on 02.18.17 at 5:34 pm

This particular thread is very disheartening.

I read over and over again wealthy, successful people stating that everyone else other than them is a lazy, stupid, greedy, hate-filled, bigoted, angry, psychopathic, leeching, perverted parasite; I read them calling every institution in the country corrupt, evil, destructive, “socialistic”, “communist” and useless. I read how much you people hate anyone who works for any level of government — say about 20% of the working population (that’s a lot of people to hate) I read over and over again how much these successful people hate their country and fear their fellow citizens.

And they all want to go back to some mythical “wonderful past” — forgetting that in that past, marginal tax rates could be 80%+, blacks and aboriginals were lynched, incarcerated, or beaten to death, homosexuals were beaten and fired with impunity, women couldn’t open a bank account or have a credit card, and were blocked from many professions, and could be raped by their husbands, and substantial parts of the population lived without running water, toilets, reliable access to medical care, or access to modern media and education.

You people really have to get a grip. I have worked with immigrants for over 20 years, and I can tell you that Canada is a paradise for the 99% compared to much of the rest of the world. It’s not to say we don’t have our problems, problems which need to be faced and resolved with courage and intelligence, including the problem of equitable tax rates.

But you’ll have to make a better case for yourself than screaming “Mine! Mine! Mine!”. That’s what five year olds do. And I wonder how you can stay in business when you clearly despise all of your customers, co-workers, and the people who serve you in government.

None of the above was contained in any comments you read here. I think it is you who need to get a grip. — Garth

#232 45north on 02.18.17 at 6:02 pm

Washed Up Lawyer: I am immediately moving my sawmill business and 33 jobs from Revelstoke to Steele City, Nebraska.

I know a little bit about sawmills. I’d say there is a low barrier to entry into the sawmill business. I mean there’s a lot of trees in Canada and a lot of men willing to cut them down. And saw them into boards. You move up the food chain when you have electrically powered equipment with 3-phase power.

#233 Hairhead on 02.18.17 at 6:22 pm

Well, Garth, it took me only a few minutes to find the following quotes from this thread . .

The mainstream feel that they deserve what rich people have without working for it….because ….
Its their right.

“Politics of Envy” is what Alberta has had to endure for decades.

I talk with old timer business leaders from the 70’s and the world they describe and the freedom to work and build wealth sounds like a foreign country!

It’s a sad story that someone would look at success and be so self-absorbed in their own pity party that they have to condemn everyone that appears to have more.

You must hate the successful and tax them accordingly.

Successful people usually get laughed at and talked about behind their backs. Jealousy is a terrible thing and we’re seeing is legislative jealousy.

The loud and clear message in Canada is “don’t worry I have your back” mantra. This prevents them from taking any risks simply because it’s not worth it.

The problem in Canada is that too much of the ‘wealth’ of the 1% came from government subsidy or government employment. And not enough from honest private sector employment

Canada is up shit creek without a paddle.

In my opinion, that’s because there are unfortunately no good leaders in Canadian politics at the present time.

but I feel everything I’ve worked for is being taken away to fund government waste, etc.

The Canada I knew and loved is gone and I am still wondering what it has been replaced with.

When I envision Canada in about ten years, I see a place populated by clones of doug t and Keith, living in a cheap rented apartment, smoking legal pot while spending the day alternating between raging about how unfair it is that others are wealthier than them, and trying to figure out which government candidate will give them the most $$ in their social assistance cheques.

Once greed and envy have been normalized, as they have, I don’t see a way to convince people that trying to take from others will ever solve anything.

You criminal beneficiaries shall see come judgement day whether it was worth taking that which does not belong to you.

absolutely accurate and stunning post describing exactly where our societies are at right now. Create Fear, Distract, Divide and Isolate ………..

Of yes folks, the culture of envy, like the low birth statistic is based on egregious taxation…..and an all KD no meat diet.

Not the friendliest of opinions.

You said this of the comments here: “I read over and over again wealthy, successful people stating that everyone else other than them is a lazy, stupid, greedy, hate-filled, bigoted, angry, psychopathic, leeching, perverted parasite; I read them calling every institution in the country corrupt, evil, destructive, “socialistic”, “communist” and useless.” You made it up. Apologize. — Garth

#234 45north on 02.18.17 at 6:49 pm

CNN’s Fareed Zakaria: “John McCain has been a profile in courage”

http://mcaf.ee/718tfv

( the original url was too long )

#235 Reply to #174 traderJim on 02.18.17 at 8:29 pm

Jim, I assume that you’re a Christian, and are prejudiced against Muslims.

Have you read the Bible, sir? No? At least take the time to read Exodus, Leviticus and Deuteronomy.

Every single charge that can be leveled at the Quran can be leveled at the Bible. Every. Single. One.

“Why do you look at the speck in your brother’s eye, but fail to notice the beam in your own eye? How can you say to your brother, ‘Let me take the speck out of your eye,’ while there is still a beam in your own eye? You hypocrite! First take the beam out of your own eye, and then you will see clearly to remove the speck from your brother’s eye.” — Matthew 7:3-5

#236 45north on 02.18.17 at 10:39 pm

Reply: Every single charge that can be leveled at the Quran can be leveled at the Bible.

the Quran and the Bible are linked. Inextricably.

https://mcaf.ee/eml5k3

not every single charge that can be leveled at one can be leveled at the other but just about all.

Personally, I’m proud of our parish who has sponsored a refugee family from Syria.

#237 Ace Goodheart on 02.18.17 at 11:54 pm

Two things you gotta remember about business. First, the second mouse on the scene, gets the cheese.

Second, don’t ever let them give you something different than they’re eating.

Oh and Garth, you are seriously over estimating T2’s ability to understand or modify tax laws…..

#238 Um, no. on 02.19.17 at 2:29 am

Envy politics? How insulting, yet not surprising. The wealthy conservatives of both Canada and the U.S. are convinced that the majority of people are so jealous of them and want nothing more than to take all of their money that they invent these ridiculous terms to reinforce their own biases. It’s akin to “class warfare” bleated by the U.S. Republicans. Tosh!
These people have for far too long controlled the levers of government and society to an unfair advantage. It is time for that to stop. Full stop. A fair and equal society cannot exist without fair contribution from all members, and to claim that “the poor” or otherwise “not rich” are envious of the so-called elite is utter hogwash.
All most people want is a stable position in life for themselves and their family. A fair and free society with ample room to improve their lot. Your example of the westerner who claims “political envy” is not in touch with reality, the world the rest of us live in.
However, if they persist in their ridiculous labeling of the majority of society as “envious”, they may wind up on the sharp end of a pitchfork or pike.
Garth, I have been following your blog for years, it is a valuable tool for me, and I am generally in agreement with you. There are times I don’t agree with you, but never have I been compelled to comment until today.
I won’t stop reading and learning from you. You provide valuable insight into this f*cked up world.
What I won’t do is let ridiculous claims go unchallenged.
Thank you for providing a space to let me rant.
Cheers.

#239 SquareNinja on 02.19.17 at 9:08 am

The rich people whining about a high marginal tax rate in a very socialist country can go ahead and try to find a better country! They won’t find one… a great country is great because the people are more equal, regardless of economic success.

The rich people who don’t whine, perhaps they understand that they have benefited from a system that was set up for all and that although they accumulated riches, most will never and could never.

#240 Grassroots on 02.19.17 at 12:07 pm

As an owner of a rural small business, I very much appreciate the efforts of those I write pay chewers for…. but I am very disappointed, after two decades of trying to share my financial literacy- to explain all the different saving vechicles, tax implications, the real cost of no interest purchases, etc… I have failed, I can’t win against immediate self gratification, extravagant Christmas presents bought on credit vs RESP contributions, new cars, new furniture, trips bought because of the monthly payment affordability vs the true cost. Watching, these folks continually live beyond their means while I lived below mine so I could backstop the company’s cash flow when needed has been disheartening. My payoff – I get to have the rules of the game changed now so my planned, thought out and managed retirement will be less because of T2 wanting to enhance the social programs for the folks who have chosen not to be responsible for their future.

#241 Oot D'Hoos on 02.19.17 at 12:32 pm

I think you should blame yourself more, Garth, because your narratives are ineffective. Trump ran with a more effective narrative.
For example, you express moral support for some communist “progressive” ideals, such as CPP, OAS, and public healthcare, and now you are dismayed that the public mind switched from modest Canada pensions, and modest OAS, to no personal savings and 100% public pensions. You give evidence of this mind switch in the RRSP, TFSA, and other savings data.
Similarly we have no private healthcare since the 1980s. Some day we will have no private wages, since the guaranteed income experiment, implies 100% public income is moral, and thus private incomes are immoral.
You have to be more effective than pleading for moderation and balanced budgets, while endorsing the immoral principles of Liberal bad ideas.
Generosity within families is a building block argument, not the Liberal central government usurping the family role.
“Liberals are selfish” is an effective narrative. Here is an ineffective narrative: “Liberals make the tough decisions, and the people aren’t saving enough because they like CPP and OAS too much”.

#242 GB on 02.19.17 at 7:31 pm

crowdedelevatorfartz,

Bringing up Warren Buffet and Bill Gates in an effort to defend the wealthy…is…well…lazy.

These two are outliers.

How about actually citing data? Like the fact that corporate spending has steadily declined over the past 20 years despite increasingly lucrative tax incentives?

You are simply wrong.

#243 Prince Polo on 02.20.17 at 10:41 am

#135 westcdn on 02.18.17 at 12:05 am
It is funny for what I am deleted. Power to you Garth. I will not back down.

Foul language. — Garth

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Foul language like chickens and/or hens? Now that’s fowl!

#244 Prince Polo on 02.20.17 at 10:51 am

#204 TRT on 02.18.17 at 12:02 pm

Regarding a Dollar is a Dollar is a Dollar.

I’m gonna have to side with the above person. Earning income is a risk. First the parents start a RESP (risk) hoping little Johny goes to university. What if he doesn’t? Then if he does go to university, what if he fails? (Risk). Then after a few years, what if he doesn’t get into a graduate program after having spent money ? Risk. What if he overdoses while in school as he could attend a party school? Risk.

As you see, there is risk on both sides of the equation.

I’m for taxing dollars equally and recognize that working at a job to support a family ( for example overpriced house = risk).

This is getting to the point of absurdity. You clearly have no idea what an investment or business risk is. — Garth

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Working at a job carries the same risk as investment or running a business? Sign me up! I’d love for my investments to do that. Last time that I checked, my hourly wage did not fluctuate with the tides, phases of the moon, or latest topic of Trump’s tweets. If we’re going to reward all risks equally, then I should be paid every time I cross the street or decide to look up GTA house prices (which is obviously hazardous to one’s mental health).

#245 M on 02.20.17 at 11:19 am

Trump is gorgeous !!
..oh yes.. media… right… that trash that sold iraq WMDs, housing only goes up, bad bad Gadaffi in Libya… that media ?
Of course is all us side dow.. but to correct it…it all starting with a check in the mirror.

… so Gartho baby… tell us a bit about GOLD. With P/E ratios of 25-30 I hope you’re not really thinking of making dough otherwise :)
Tell us about shorting the market :)
Start by telling us the probs for mkt upswing vs crash… or.. yeah,… markets will never crash (2008)… where did I hear that again ?