The ‘anti-Trump’

La Revolución . She comes. You ready?

This week the date of the looming federal budget is to be announced. If you ever for a fleeting moment doubted what the theme will be, I hope you caught T2’s lecture to Europeans a few days ago. It was really directed at us. The Canadian deplorables and their weasely overlords.

“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,” said the prime minister who has never run a business. “Increasing inequality has made citizens distrust their governments. Distrust their employers. And we’re watching that anxiety transform into anger on an almost daily basis… it’s time for us, as leaders in politics and business, to step up.”

In our case, stepping up means taxing the rich – or the perceived rich. (For Trudeau, by the way, it also means scrapping electoral reform, a change which would have ensured the Liberals lose the next election and a Trumpian movement win seats in Parliament.) The German press labeled our guy the “anti-Trump” (and sexy) since The Donald wants to lower taxes and unshackle business while we’ll get more taxes and a war on entrepreneurs.

Last week we detailed some of the changes being contemplated, then had a big argument between the lefties and the capitalists. Under consideration in this budget are higher capital gains taxes, a lower dividend tax credit, a small business retained earnings tax, perhaps a windfall housing gain tax and new regs forcing business owners and operators to act more like employees plus end income-splitting with family members. This comes atop creation of a new tax bracket in the last budget which boosted the marginal tax rate on the 1%ers (over $225,000 income) to a withering 54%.

Tax, tax, tax and more tax. And an insatiable government which will still spend $100 billion more than it takes in during a four-year term. Yes, he’s the anti-Trump. But since (a) he has a majority and (b) his support base of moisters is rife with anti-Boomer sentiment, plus riddled with house lust and disentitlement, la revolución está aquí.

Here are a few things to contemplate in your defence:

♠ Aggressively avoid taxation. It’s not illegal (evasion is) and there are many obvious ways to reduce your tax exposure or grow money free of it. The top choice is still the RRSP, and next Wednesday’s the deadline (March 1) to seriously reduce your 2016 tax bill. These are of the greatest benefit to rich people, who can stuff up to $25,000 in a plan (per year) and wipe away more than $12,000 in taxes. They also let you split income with a spouse, finance a maternity leave, shift taxes into lower-income years, buy a house, create a mortgage, or simply take taxable assets you now own and make them non-taxed.

♠ Other vehicles include TFSAs (tax-free portfolio growth, income-splitting with children or a spouse, retirement income without reducing pensions), RESPs (tax-shelter all growth in your kids’ education plan, plus get tax-free annual grants), and RRIFs (convert RRSPs into a long-lasting income stream during TU years, while still growing assets tax-free). How can you afford not to take advantage of this stuff?

♠ Regarding capital gains, count on T2 upping the inclusion rate, which could raise taxes a significant 40%. In no way should this deter you from investing or building a proper portfolio. But it’ll make more sense to delay crystallizing a capital gain, to eschew frequent trading and focus on long-term buy-and-hold strategies. The last thing you want is a ‘tactical’ financial advisor who says he can beat the market by flipping stocks around.

♥ Don’t pig out on maple. If US rates rise and taxes fall, the loonie will erode and our economy struggle – especially given the swelling tax load. Remain twice as exposed to American and international growth assets as to those here. And recall the advice given often about hedging against our currency. Keeping about a fifth of your portfolio in US$-denominated stuff (at all times) is wise.

♠ If you have a bundle in your house and not so much in financial assets, then diversify at the same time you create a tax deduction. A home equity LOC will unlock up to 65% of real estate value and should come at prime plus a half (3.2%). Invest that in a nice stable balanced and diversified portfolio giving a six or seven per cent return over the long term, and wealth will grow more predictably. Besides, with interest-only payments, 100% of them are deductible from taxable income. Win, win.

♠ If you operate through a small business, consider taking salary instead of dividends. Not only will you earn RRSP room but you’ll escape some of the potential nastiness Ottawa has in store. In any case, remember that there’s no advantage to taking income as dividends since the tax you and your company pay together equals the tax you’d fork over personally. And you earn RRSP room. Plus, your company escapes tax by deducting the salary.

♠ Stick with a low-turnover portfolio to avoid triggering capital gains (or wait until there’s a new government). A good advisor will rebalance your portfolio only when necessary, often triggering some losses at the same time gains are realized – mitigating the cost. And always remember – you can enjoy all the capital gains you want inside your TFSA and Ottawa won’t Hoover one dime of it.

♠ Finally, never invest just to avoid, escape or evade tax. Sure it sucks, but paying up is a fact of life. Stick with the plan and manage assets to accomplish your life’s goals. Besides, if you’re obedient and supportive, Justin could make you a Senator! No tax worries then.

138 comments ↓

#1 Harry B on 02.19.17 at 6:32 pm

“The signs are troubling: the ever-widening chasm between the ultra-rich and everyone else. Mass protests. Political upheaval and social division. It looks as though the rocky marriage between capitalism and democracy is doomed, at least according to Wolfgang Streeck, who directs the Max Planck Institute for the Study of Societies in Cologne, Germany, where he is also a professor of sociology. In conversation with Paul Kennedy about his book How Will Capitalism End?, he makes the unnerving case that capitalism is now at a point where it cannot survive itself.”

http://www.cbc.ca/radio/ideas/surviving-post-capitalism-coping-hoping-doping-shopping-1.3973042

#2 Mark on 02.19.17 at 6:41 pm

“Regarding capital gains, count on T2 upping the inclusion rate”

Where is this coming from? Sounds like scaremongering more than anything. Has the government advanced a position paper or had any discussions along the lines of increasing the inclusion rate?

A home equity LOC will unlock up to 65% of real estate value and should come at prime plus a half (3.2%).

A very expensive way to borrow (which will probably get even more expensive as time goes on). Definitely get that HELOC, but don’t actually use it. Get yourself a margin account (shop around, you can get Prime – 1% these days without a lot of difficulty, even better), use margin, and keep that HELOC open and undrawn for ‘standby’ use. If the market crashes and the margin position gets low, then use the HELOC. That is, if they don’t close it.

Actually a much better solution is to be rid of the extremely overvalued house altogether than trying to cobble together some leveraged strategy to keep it and still have an investment portfolio at the same time. Let a landlord be your off-balance-sheet financier. Far less risky, and given the state of the RE market today and rents, its a much cheaper all-in way of financing home ownership than using your own equity and borrowing.

#3 Tim on 02.19.17 at 6:46 pm

Trudeau was stupid enough to approve the KM pipeline which will alienate his voting base in BC, but he’s not stupid enough to increase taxed on capital gains in investments. That would be political suicide. Besides, he’s substantially increased immigration and is hanging out with rich Chinese businessmen with his cash for access events, so we know which way he’s going on the economy.

#4 jess on 02.19.17 at 6:46 pm

There are no “no-go” zones in Sweden. It is a myth fabricated by the far right in a news editorial to fearmonger about immigrants and refugees.
https://debunkingdenialism.com/2017/01/20/debunking-the-myth-of-no-go-zones-in-sweden/
=============================
According to debunkingdenialism

” Mediekollen is, in fact, a fake fact checking page. That’s right, now there are not merely fake news websites, but also fake fact checkers.Mediekollen: fake fact checker trying to impersonate a real one
What is the backstory?

…”Katerina Janouch is a Swedish journalist and relationship/sex counsellor with roots in Czech Republic. She is no stranger to controversy, having pushed national birth quackery and publicly supported a group of ~100 hooligans who went around in the Swedish capital distributing extremist flyers and physically attacking people who looked like immigrants. She later admitted that the latter was a mistake and that she reacted before having all the facts.

On January 9, a video with Janouch taking part in a 30 minute long interview by Martin Velešovský was posted on the website of the Czech television channel DVTV. In this interview, she repeated recycled far-right myths about Sweden that Debunking Denialism has refuted many times before. Mainstream media in Sweden also wrote extensive refutations of her claim and scolded her for contributing to fear and ignorance coming from the far-right. This reinforces the false and misleading view that people in some eastern European countries have gotten from the many dozens of fake news websites and initiatives run from Russia.

A new study from the Swedish Institute of International Affairs indicates that the spread of misinformation and fake news from Russia is on the increase even in Sweden, most likely related to the issue of whether Sweden will join The North Atlantic Treaty Organization (NATO) or not.
https://debunkingdenialism.com/2017/01/26/rise-of-the-fake-fact-checkers/

#5 MouldyinYVR on 02.19.17 at 6:49 pm

Brian Mulroney sings “Irish Eyes” for Donald Trump Feb 18, 2017
https://www.youtube.com/watch?v=5s-7tzzbc84
Let’s lock ’em all up at Mar-a-Lago and through away the key!

#6 Interstellar star stuff on 02.19.17 at 6:50 pm

Your colleague doesn’t agree with you!! He goes equal weight beavers.

16,500. This is our price target for the TSX. I think oil prices will continue to trend higher which if this occurs will boost energy sector profits and in turn TSX earnings. As a result we increased our exposure to Canada to market weight (same weight as US). If we see commodity prices trend higher we may even overweight the TSX. – Ryan L

Nope. US and international together are twice the Canadian weighting. — Garth

#7 Eric on 02.19.17 at 6:51 pm

What if we have squirreled away enough in an RRSP? Is it better to pay tax at a 36% marginal rate than invest in an RRSP just for the tax deduction? I’m seeing a point where I’ll have to start pulling it out when I retire and I’ll get hammered with taxes.

#8 common sense on 02.19.17 at 6:55 pm

#1 Harry B

Solid argument….

Eat, drink and be merry!

#9 jay on 02.19.17 at 6:56 pm

The biggest danger facing Canada is foreign poltical influence. http://vancouversun.com/opinion/columnists/douglas-todd-b-c-politicians-almost-alone-in-seeking-foreign-donations http://www.theglobeandmail.com/news/politics/trudeau-attended-cash-for-access-fundraiser-with-chinese-billionaires/article32971362/

#10 Muttley O'Toole on 02.19.17 at 7:00 pm

It appears to me (from afar) that Canada is starting on the slippery slope so beloved by the misguided lovies of the left.
If all that the Great Gartho has prophesied comes true
then how far is to the Venezuela of the North?
Think about it: Oil, Cult of ” Dear Leader”. Will no toilet paper be far behind?

#11 acdel on 02.19.17 at 7:04 pm

Good one Garth, man, it’s too bad that it has come down to this! I have saved this one in my favourites, thanks.

#12 Millenial905er on 02.19.17 at 7:09 pm

Canada is in trouble. I have the worst of it being in Ontario. Husband and I always talk about getting out of dodge. Foreign money is definitely big here, there’s no question. We just can’t compete with globalization. It has outsourced jobs and allowed the wealthiest to buy up real estate. Lose-lose. If you were born in Canada in the past 35 years you’re a sucker unless you got on the property ladder or invested wisely. Friend in Markham wants out. No one in his neighborhood speaks English, or at least they pretend not to. Luckily for him, he’ll profit greatly from being the outsider. Too bad it’s considered racist to question how new Canadians can buy million dollar homes and claim 20k/year salary. Government will just keep tapping everyone else.

It’s OK, we’ll take it… And as T2 says, Canada has no core identity anyway.

https://www.theguardian.com/world/2017/jan/04/the-canada-experiment-is-this-the-worlds-first-postnational-country

#13 Joe Schmoe on 02.19.17 at 7:16 pm

I think anyone with two pennies to rub together knew the irrational tax grabs were going to happen.

I am still struggling with why? Anyone under 45 who thinks these changes are “fair” just dramatically impacted their ability to accumulate wealth.

I guess I don’t understand how so many quitters can be out there.

#14 Deplorable Communications on 02.19.17 at 7:20 pm

From the Butts behind the man… prepare to be taxed up the….

Pinned Tweet
Gerald Butts
‏@gmbutts 5 Apr 2016

If people don’t feel the benefits of growth, they’ll (reasonably) withdraw support for the policies that create it.

#15 TICKED OFF! on 02.19.17 at 7:20 pm

I am one ticked off dude!!!

I’m a single earner in my family…living paycheck to paycheck and between Notley, Kathleen Wynn and Justin Trudeau my taxes (including carbon and hydro fees etc) have gone through the roof…I calculated something like $7000 extra coming out of pocket each year!!!

CAN YOU BELIEVE!!!!!! Time to move to the US!

#16 Interstellar Star Stuff on 02.19.17 at 7:24 pm

#6 Interstellar star stuff on 02.19.17 at 6:50 pm

Your colleague doesn’t agree with you!! He goes equal weight beavers.

16,500. This is our price target for the TSX. I think oil prices will continue to trend higher which if this occurs will boost energy sector profits and in turn TSX earnings. As a result we increased our exposure to Canada to market weight (same weight as US). If we see commodity prices trend higher we may even overweight the TSX. – Ryan L

Nope. US and international together are twice the Canadian weighting. — Garth

…..
Yeah I know, but still he did say you have changed your CAD/US weightings… so he’s feeling pretty beavery

We moved Canadian content from 18% last year to 21%, equal to US. My statements stand. Do not overexpose to maple. — Garth

#17 The Real Deal on 02.19.17 at 7:24 pm

@1 Harry B

Streeck is deluded. Its modern socialism that won’t survive the next decades, not capitalism. From pensions to government debt acquired from profligate spending the Ponzi scheme will not survive collapse in demography. Capitalism, the belief in entrepreneurialism and free markets as means to progress is the only system that allows for the adaption necessary to thrive and survive.

Canada had a real good opportunity to get lean and mean and beat this demographically induced decline on the world’s door step. We chose wrong and two years later we are still doubling down on stupid.

#18 Barb on 02.19.17 at 7:27 pm

“Increasing inequality has made citizens distrust their governments.”

——————————————-

False. It’s Governments that have made citizens distrust their governments!

T-2 is an idiot.

#19 Economystical on 02.19.17 at 7:28 pm

All of this can be explained using Economystical theory as well, the greatest theory ever devised by man next to the flat earth theory.

So when the economic “pie” is growing robustly, it’s ok if a few people get very rich so long as everyone is seeing an improvement in lifestyle. The poor can turn up their noses and just avoid thinking about the injustice of economic disparity so long as their piece of pie is growing, albeit not as fast as the rich. This had been the case through much of the 19th and 20th centuries in the west.

But now that the only piece of the global economic pie that is growing is China, weird things are starting to happen.

One reaction is the Trump phenomena, where Trump got elected by promising that he would take some pie from China and Mexico and bring it back to the US. It probably won’t work, because any manufacturing that does return to the US will be done by robots, but in Economystics that doesn’t matter.

In Canada the Trudeau economystical plan is a little different, take the economic pie and cut it into smaller and smaller pieces until everyone has a piece, however small it might be. We can’t have doctors getting more pie than baristas, it’s unjust! It isn’t nearly as prudent as encouraging the baking of more pie (economic growth), but in Economystics that doesn’t matter. Just keep cutting the slices thinner. It’s been proven to work in Venezuela, so nobody can argue against this Economystical theory any longer. Although even and Economystic such as myself has to admit the pieces got pretty thin down there. But Economystics says “it’s different here”. Why? Well, we have resources whereas Venezuela has none or mismanaged them anyway. We will never run out of toilet paper in Canada because we have so many trees. Poor Venezuela doesn’t have any trees.

#20 Ridley Eastcotte on 02.19.17 at 7:28 pm

Garth or Board,
Can one hold TSE:DLR for their US Dollar allocation instead of real USD?

#21 acdel on 02.19.17 at 7:35 pm

#2 Mark

You make some good points but obviously you are doing much better then most; which I congratulate you!

Inclusion rates will rise due to government desperation for additional revenue in the near future, and you know that!

Margin account – 1 is only for a selected few.

I am sincere in this question; Garth’s mission has been to educate the average person on personal finance; what can you add to the average person intellect to make it a go in today’s and future environment? As mentioned, I am referring to the average folks as myself who come here for advice, I really appreciate what you have to offer, thanks.

#22 Burnaby South gardener on 02.19.17 at 7:36 pm

Garth,
Do you expect that any capital gains tax on housing will be retroactive? I am assuming if you had only one primary residence over a span of 10 + years that the capital gains tax would not apply.

#23 Pink Floyd Left on 02.19.17 at 7:36 pm

Roger Waters Will Play The Wall Gig If Trump Cancels HIS Wall

The Pink Floyd man has said he’d perform a “celebratory” show featuring the band’s classic album if President Trump backs down over the US/Mexico wall…

http://www.radiox.co.uk/artists/pink-floyd/roger-waters-play-the-wall-trump-mexico-wall/

#24 Singing Muldooney! on 02.19.17 at 7:45 pm

Way to go Brian! Cranking out the ole Irish eyes to save our butts!

Was I ever young the last time he did that! Wow, does time fly.

Back to US-Cad free trade agreement – suits me. Wow is mexico toast.

#25 Wrk.dover on 02.19.17 at 8:06 pm

Garth is always upbeat. Cool, cool runnings.

#26 myths on 02.19.17 at 8:14 pm

#4 jess on 02.19.17 at 6:46 pm
There are no “no-go” zones in Sweden. It is a myth fabricated by the far right in a news editorial to fearmonger about immigrants and refugees.

====

Very simple:

https://www.youtube.com/results?search_query=sweden+immigration+problem

#27 Alex on 02.19.17 at 8:21 pm

I fully agree with reducing the exposition to canadian equity despite the div tax credit.
My allocation % right now is 33-23-24-20 (fixed income, CDN, US, Intl).
Because of the size of my portfolio, I have at least 75% in a taxable account. Will not sell anything under T2..
Politicians come and go but money stays and compounds.

#28 45north on 02.19.17 at 8:21 pm

Here are a few things to contemplate in your defence:

as individuals

but

as a country, the best strategy is to hold the Liberals to account. As I said before it’s entirely possible that Revenue Canada’s net income is less after the changes! Revenue Canada is able to analyze the increase or decrease in revenue, year-to-year. I mean the standard excuse is to say that it cannot reveal individual income to the public so therefore it cannot reveal anything. It can reveal aggregate information. It can reveal more to members of parliament sworn to secrecy. I’m thinking individual cases without names.

What about releasing aggregate information to this blog? What kind of safe guards would Revenue Canada require? Garth would have to swear to protect individual information. Revenue Canada would have the right to review the information before he posted it. Garth was actually the Minister of Finance. How hard could it be?

#29 myths on 02.19.17 at 8:49 pm

#1 Harry B on 02.19.17 at 6:32 pm

“The signs are troubling: the ever-widening chasm between the ultra-rich and everyone else. Mass protests. Political upheaval and social division. It looks as though the rocky marriage between capitalism and democracy is doomed, at least according to Wolfgang Streeck, who directs the Max Planck Institute for the Study of Societies in Cologne, Germany, where he is also a professor of sociology. In conversation with Paul Kennedy about his book How Will Capitalism End?, he makes the unnerving case that capitalism is now at a point where it cannot survive itself.”

http://www.cbc.ca/radio/ideas/surviving-post-capitalism-coping-hoping-doping-shopping-1.3973042

====

The unresolvable problem with capitalism is that it is entirely based on the theory and practice of growth.

Growth itself would not be a problem, as there is abundance in the universe and we can not create or destroy even a smallest amount within the universe as a whole.

The problem is that we are unable to tap into seamlessly converting energy to material, material to energy, etc. as needed, in a never ending cycle that unlocks abundance.

All we can do at this moment is limited conversion, both in variety of conversions and the volume of conversions.

Capitalism as an economic system is fundamentally incompatible framework for true abundance, since in capitalism every single capitalist entity naturally aims for monopoly, destroying competition, in order to have exclusive lock on all aspects of growth, the control of abundance.

Abundance is not the goal of capitalism, restricted, controlled, monopolized market is, that’s what provides the highest monetary gain for owners of the real or virtual monopolies, even if the monopoly is not singular, but shared by a limited number of cartel members.

#30 Damifino on 02.19.17 at 8:55 pm

#13 Joe Schmoe

Anyone under 45 who thinks these changes are “fair” just dramatically impacted their ability to accumulate wealth.
————————————–

Relax Joe. The accumulation of wealth will become passè in the great kumbaya ahead.

The concept of personal responsibility for one’s own future is withering on the vine. We’re on the cusp of a fundamental shift in human nature. What took so long?

From each according to his ability, to each according to his need. You bet.

#31 bigtowne on 02.19.17 at 8:58 pm

Could you at least fill us in on the senator’s gig …do we have to worry about making missteps like Pamela or Mike Duffy? Is it too good to be true? Do you have to spend the whole winter in Ottawa? How long is the Christmas and Easter break? Do I have a better chance if I speak French?? What if I’m a woman does that help? Is it a problem if I’m a white Protestant God fearing United Church member…or is it better just to renounce completely any affiliation with that faith that now seems passe but was a big hit when the British bought it over back in the 16th century? I can’t renounce but I can be politically correct and smile at the appropriate moments and appear somewhat less of a Jesus woman if it gets me into the senate.

#32 TurnerNation on 02.19.17 at 9:03 pm

Worth a mention from Investors Business Daily paper this weekend. Warren Buffet still adding his airline stock position, for decades (forever) he did not – not even well managed Southwest Airlines.
Why – oil’s not going down. Thinking ahead ahead ahead…planes would make good Troop transport jets (see Braniff) in times of war?

And a note Trump said Russian sub spotted of USA East coast “was not good”.
Really…they’ve been playing this Russian enemy game on us for decades, yet Russia’s not set off so much a firecracker in USA or any Commonwealth country all this time.
Hint: We went to space with Russia on the ISS – and it’s weaponized up there and everywhere. There’s no us and them. Hubble telescope? Look up…say hi.
They even rolled out the N. Korea projectile story again last week – it never fails. Yawn. Elite Actor/player Dennis Rodman was sent to fool us there. Bread and Circuses.

#33 TurnerNation on 02.19.17 at 9:13 pm

Looking way way way ahead…the newz part few weeks getting up complacent with ‘refugees’ from USA storming our borders – sleepy Manitoba.
Shades of…Europe? Trojan Horse?

Are they (T2) going to say again (Mr. Trump) “Tear Down that Wall” and make us a North American Union? Divide and conquer – oldest strategy in the book? Why I never…
Not my fight , just mentioning it

#34 BS on 02.19.17 at 9:14 pm

#4 jess on 02.19.17 at 6:46 pm

There are no “no-go” zones in Sweden. It is a myth fabricated by the far right in a news editorial to fearmonger about immigrants and refugees.

T2 want to be just like Sweden.

60 Minutes must be far right for fabricating this one. The crew attacked several times filming a story in Sweden.

“Sweden Is Turning Into A Muslim No-Go Ghetto”

https://www.youtube.com/watch?v=XcjcpKY0hpo

#35 Randy on 02.19.17 at 9:22 pm

Another robot just broke down investigating Fukushima’s record high radiation levels.

I’d sell my west coast property ASAP.

#36 Mad cow on 02.19.17 at 9:28 pm

Garth, do you see the budget completely removing the dividend tax credit or just reducing it? I’m not seeing much benefit of owning Canadian dividend stocks if dividends are taxed at the same rate as US companies (especially if Corp taxes will eventually be lower in the US) . Do you expect the tsx will take a big hit if the credit is axed?

#37 Djumbe on 02.19.17 at 9:36 pm

Thinking seriously about unlocking some of the equity in the fully paid for property. Have the LOC in place, ready to draw from. Understand that in order for the interest on the LOC to be tax deductible the funds must be invested in a non registered account. Understand also the paper trail must be clear from LOC to non reg account – in case CRA questions. Have the 60/40 low cost ETF allocation planned. Have the husband almost on board. Anything I am missing? TFSAs fully funded and RRSPs in good shape.

#38 Smoking Man on 02.19.17 at 9:49 pm

Wondering what the ghosts of Hunter S Thompson and Ernest Hemingway are thinking about the current state of politics.

Would they be for Trump or Against.
Would they favore Kevin Oleary or T2

Dogs? What do you think.

#39 common sense on 02.19.17 at 9:50 pm

bump

#40 prairiegopher on 02.19.17 at 9:51 pm

And we got rid of Harper, why??

#41 Setting the Record Straight on 02.19.17 at 10:00 pm

Retained earnings taxes on passive investment corps

How would this work? I understand for future contributions the govt could specify retained earnings.

But for existing holding corps there have been retained earnings, cap gains cap losses, dividend payouts etc.

What is a retained earning in this scenario?

#42 Ronaldo on 02.19.17 at 10:10 pm

The world we live in.

https://vimeo.com/167796382

And there is no shortage of it. A must view.

#43 45north on 02.19.17 at 10:22 pm

bigtowne: I can be politically correct and smile at the appropriate moments

that should do it

#44 Entrepreneur on 02.19.17 at 10:27 pm

I am Canadian and I am proud to pay my taxes to keep Canada as Canada. I am also a member of the Canadian Legion, generational membership.

A nation can only survive as a nation and keep it that way for the people and the environment. We have come too far away from reality. Are we too late? I think we are but would like to think we can turn it around. Let the working people rise, let them turn it around. I hope and I pray.

#45 Paul on 02.19.17 at 10:28 pm

It’s always divide and conquer men vs.woman, gay vs. Straight, have vs.Not, union vs. non white vs black. The guys that run the show love it that’s why they hateTrump he just might be a unifying force. Nah

#46 Lorne on 02.19.17 at 10:38 pm

(For Trudeau, by the way, it also means scrapping electoral reform, a change which would have ensured the Liberals lose the next election)
……..
It would perhaps mean they would not have the majority of seats, but that would still mean they would have a major influence in a “coalition” type of government which would be part of Proportional Representation, as we see in many European countries. What scrapping FPTP WOULD do, is it would ensure the Conservatives would NEVER be in power again. Unfortunately, Trudeau does not see this and will regret his decision.

#47 conan on 02.19.17 at 10:39 pm

I am sure all of the changes will be well thought out. Unlike the disaster- mess that came before T2.

In the end it will be the “Grey Poupon” crowd getting hit. Maybe Joe average Canadian if they trigger a ridiculous windfall. Whatever, I will pay more.

Fear mongering until we see the budget. The Grey Poupon Revolution will have to wait, I am afraid…..

https://www.youtube.com/watch?v=AOdQzN3D3Q0

#48 Sid on 02.19.17 at 10:48 pm

Garth, I’m finally getting my act together and selling off the mutual funds from the big banks. They’re in a non-registered account. Do I sell now and take the gains now, or do I wait July when I can move them over to ETFs?

#49 Ponzius Pilatus on 02.19.17 at 10:56 pm

#1 Harry B on 02.19.17 at 6:32 pm
“The signs are troubling: the ever-widening chasm between the ultra-rich and everyone else. Mass protests. Political upheaval and social division. It looks as though the rocky marriage between capitalism and democracy is doomed, at least according to Wolfgang Streeck, who directs the Max Planck Institute for the Study of Societies in Cologne, Germany, where he is also a professor of sociology. In conversation with Paul Kennedy about his book How Will Capitalism End?, he makes the unnerving case that capitalism is now at a point where it cannot survive itself.”
————-
Makes sense.
People like Gates and Zuckerberg who have enough money to buy most of Africa.
As Garth used to say:
This will not end well.

#50 Guillaume on 02.19.17 at 11:01 pm

Do you speak french Garth ? Maybe it could be helpful ?

#51 The Technical Analyst, CSTA, CPD on 02.19.17 at 11:07 pm

When I left the voting station in Calgary, I felt sad and remorse for Canada, as I voted T2. I didn’t want Harper like so many, but I’ll admit I made a serious mistake by voting Trudeau.

Should have listened to my gut. If O’Leary is going to run, he will have my vote.

#52 yorkville renter on 02.19.17 at 11:25 pm

#15 – you’re full of it… how do Notley and Wynne both tax you? Troll.

#53 Ronaldo on 02.19.17 at 11:34 pm

#40 prairiegopher on 02.19.17 at 9:51 pm

And we got rid of Harper, why??
——————————————————————-
If you’re told enough times that something is bad for you, you eventually begin to believe it. I think it’s called brainwashing.

#54 Damifino on 02.19.17 at 11:35 pm

#40 prairiegopher

And we got rid of Harper, why??
——————————–

Too grumpy.

#55 Trustee1 on 02.19.17 at 11:44 pm

@Harry B
Thanks for the Wolfgang Streek / Ideas link.
Worth listening to.

#56 jerry on 02.20.17 at 12:14 am

Mark Cuban predicts the loss of 5 million jobs by 2020 and more to follow in the age of automation. Millions of displaced unemployed will be wondering what Trudeau was talking about of the 4th industrial revolution and the knowledge based economy.

Just what kind of decent wages and benefits and equitable taxations is Mr Trudeau counting on when entrepreneurship is being shat upon under this tragically too far left leaning ideologue government?

#57 fishman on 02.20.17 at 12:59 am

Meanwhile, the interior mills are cutting full tilt & extra shifts for the crews. Its all union wages & the boys got their heads down. No new pickups. Its new roofs & new forced air furnaces & pay off the bills. If these mills ,which are the highest tech, highest producing, most efficient in the world shut down too long they’ll get cannibalized & never run again.

In boomer times the companies & contractors would be adding inventory, pumping up their capitol costs to average out their tax bills for lean years.
Not now. Record tax income for Christy from the lumber. The cupboard’s bare cause everyone figures the Yanks are gonna turn out the lights. No use buying spare machinery when the whole shebang could come to a stop.

The softwood treaty is outside NAFTA because B.C. produces most of Canada’s exported lumber from “government land” but has no power in Ottawa.. We are at the complete mercy of the Yanks. The U.S.lumber lobby protagonists are all from deplorable country. Its a ball buster for the Canucks. Our Eastern masters sacrificed softwood & the Columbia River Treaty for stuff like Autopact . Now we need money but the infected chickens are coming home to roost. I’m thinking since lil potato hangs with the rich Chinese maybe they could teach him to Kow Tow. You know, get down & lick Trumps feet.

Great tax avoidance scheme though , if the reverse tariff goes back on, its reverse taxation. Instead of producing & sending money east, one stops working & gets free money sent from the east.

#58 Taxed2Death on 02.20.17 at 1:13 am

This is an utter disgrace. It is expropriation of income, plain and simple. I worked my ass off and made a ton of sacrifices to move up, pay off my student loans and provide for my family, and this trust fund baby/part time drama teacher comes along and robs me blind.

#59 crowdedelevatorfartz on 02.20.17 at 1:31 am

@#49 Ponzi P
“the Max Planck Institute for the Study of Societies in Cologne, Germany, where he is also a professor of sociology….”
*******************************************

Yawn.
And every sociologist with a soapbox make predictions that come true?

Can I make a prediction?
Humans are inheirantly greedy, thus it doesnt really matter who’s “rich”.
The mob will always covet what the “rich” have…. and if you are lusting after anarchy….careful what you wish for….cause when the mob runs out of rich folk …you’re next…..for your new boots or that can of cat food you’re eating.
As for billionaires like Bill Gates…he is giving away most of his billions before the great unwashed arrive at his door, on his private estate, probably on a private island some where, with his own private army…
The uber rich aint worried.
But if it all goes to H…E….doublehockeysticks……
You, however, should be.

#60 800 RMK on 02.20.17 at 1:39 am

On your third last point you forget that by paying yourself salary you also have to pay CPP. RRSP room is probably not worth having to pay what, $6,000 in CPP contributions.

CPP if you are lucky you will make inflation on your money. Versus if you are a true entrepreneur you can make a heck of a lot more dough then RRSP based investments and CPP.

I equate CPP as nothing more than a tax.

#61 John on 02.20.17 at 2:15 am

With T2 seemingly wishing to tax everyone to death, I think I’m close to the point of throwing in the towel. There is just no incentive to work hard in this country so I’m thinking that if you can’t beat ’em, join ’em.

I was doing some calculations and saw that even if my portfolio does not grow at all, I will have enough to live on till I reach 70. Of course, if it grows an average of 6%, it’ll last way longer. I have also not taken into account CPP or my parents’ inheritance.

Should I throw in the towel and stop working? There are certainly risks but if T2 decides to increase cap. gains taxes, and reduce the dividend tax credit (and this is in addition to already having reduced the TFSA limit, which I strongly opposed), I will strongly not wish to reward this gov’t by continuing working hard only to pay ever more in taxes. If I do stop working, the little that I earn will put me in a way lower tax bracket – it will satisfy me immensely to support this wasteful gov’t as little as possible.

I’m not interested in hearing leftists spewing about how good I have it, or how I should be happy paying taxes. I have worked in a tough private sector job for years. No cushy public sector work for me. I’ve been smart to invest well and save a lot – that is why I even have this option to stop working. I’m not opposed to paying taxes – I just resent the wasteful gov’t spending and the kneejerk instinct of T2 to raise taxes rather than control spending.

#62 TRT on 02.20.17 at 2:43 am

If T2 ups the inclusion rate to 100%, he will win a second majority. Wealth is tied up with fewer and fewer individuals, and in a democracy, the majority rule whether you like it or not.

#63 Such a Righty Garth... on 02.20.17 at 2:57 am

…and, I love you for it.

Again, thank you for the advance warnings and what to do.

BTW, the Spanish Revolution theme today…that was good. Let me add to that for well off Canadians about to be hosed:

Mira un rescue squad aqui andele.

That from a Cuban friend of mine.

#64 Nonplused on 02.20.17 at 4:06 am

#42 Ronaldo

More bullshit. CO2 is the gas of life, no CO2, no plants, no plants, no animals. And air cannot heat up rocks or water much unless the temperature differential is unimaginably high. It’s physics.

Not saying the globe isn’t warming, just saying it isn’t CO2. It is still a trace gas, measured in parts per million not percent like nitrogen.

Try it sometime. Fill your bathtub with cold water and then point your hair dryer at it and try and warm it up so that it’s comfy. Let me no when it’s ready and make sure you have the hair dryer plugged into a ground fault protector because you will fall asleep and drop the hair dryer into the water far before you have made any difference to the temperature of the water. If you want to test CO2, well get some heat lamps, and one of those soda water machines, and add some of that too. No difference to the water temperature.

This whole CO2 thing is bullshit. It’s plant food. Plants cannot survive without it.

#65 Stock Picker on 02.20.17 at 4:18 am

There are two other strategies. One is to leave the country. If you are young and educated with few assets for the CRA to grab after you leave….then get out of Canada right now. Go where hundreds of thousands of young professionals have gone… global. I would first suggest the US…they invite talent. You will double your salary…double your quality of life and halve your taxes. Go to Texas…get it right. Quit your residence in Canada, its a loser country for this generation of people who see the liberals killing opportunity.

Pick stocks that go up in value quickly. You have to outpace the fall in the CDN dollar and outpace the increase in taxation. Maple will do it. Buying high price USD at this stage is more of a gamble than picking stocks.

#66 LH on 02.20.17 at 6:12 am

GARTH TURNER FOR SENATE!

#67 pBrasseur on 02.20.17 at 7:35 am

Regarding capital gains, count on T2 upping the inclusion rate”
Where is this coming from? Sounds like scaremongering more than anything. Has the government advanced a position paper or had any discussions along the lines of increasing the inclusion rate? – Mark

I have to agree here. This at best a rumor and not a very strong one (it was stronger last year). I’m sure some Liberals would like to do this but economically it would make absolutely no sense, especially now.
The only people who really want to discuss this are financial advisors who want your business… That’s where the rumors come from. The more scared you are the more you go to them!
For my part I keep it simple, I simply make sure I have enough CASH/TFSA/RRSP to avoid making costly withdraws from my cash account at inopportune time. If T2 really wants to screw me he’ll have to wait a very long time before he get any capital gain money from me. If the idiot raises capital gains taxes to lower income tax I’ll enjoy more of my RRSP money and use the TFSA to lower my tax bracket.

#68 IHCTD9 on 02.20.17 at 7:50 am

#40 prairiegopher on 02.19.17 at 9:51 pm

And we got rid of Harper, why??
—————

He was so mean!

Much better to have doughhead T2 with selfies, centrefolds. These offset all the new taxes and the dead economy.

#69 pBrasseur on 02.20.17 at 7:52 am

If T2 ups the inclusion rate to 100%, he will win a second majority. #62 TRT

Yeah right, just ask François Hollande how that kind of logic worked for him…

If the economy tanks so will T2 hopes for re-election, and if he kills investors the economy will tank.

#70 Bezengy on 02.20.17 at 7:58 am

Funny thing I’ve noticed over 30 years is how those making tax laws always write the law to benefit themselves. Ex: Senior Discounts…let’s face it, a senior drives into a National park with a $500k Motorcoach and they get a nice discount, the young guy driving the Civic pays full price. (who made that rule?)

This tax thing really brings out the animal instinct in all of us, which is me first.

#71 crowdedelevatorfartz on 02.20.17 at 8:08 am

@#56 Cuban
“Millions of displaced unemployed will be wondering what Trudeau was talking about of the 4th industrial revolution and the knowledge based economy…..”
******************************************

Trudeau can read?

https://www.google.ca/url?url=https://www.nytimes.com/2016/06/30/books/alvin-toffler-author-of-future-shock-dies-at-87.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiXsumU357SAhUN9GMKHYPQDw0QFggfMAE&usg=AFQjCNFDwUfeQb9YYd9XTexu4acf11NoGA

#72 dots on 02.20.17 at 8:15 am

#59 crowdedelevatorfartz

Have you ever had any (semi)original thought?
Please share that.

Otherwise just an illustration of people talking bullshit:

#42 Ronaldo
https://vimeo.com/167796382

#73 IHCTD9 on 02.20.17 at 8:26 am

#62 TRT on 02.20.17 at 2:43 am
If T2 ups the inclusion rate to 100%, he will win a second majority. Wealth is tied up with fewer and fewer individuals, and in a democracy, the majority rule whether you like it or not.

——-

I hope so. I’ll be voting for him, Wynne too. No point trying to fix a car that’s been run over by a D9, much easier and quicker just to melt it down for scrap and start over…

#74 Debtslavecreator on 02.20.17 at 8:33 am

The radical left wing fascists running this country and Ontario will not stop until they have stolen everything
This is a classic path to collapse that we are on. They have interfered in the economy and along with the Junk monetary policy implemented by the idiots at fund bank of Canada you can rest assured we are headed into a historic sovereign debt crisis and as we continue into this final stage governments will become more and more desperate and irrational
Keep maxing out your RSP and TFSA … let’s see how you’re all doing in 3-4 yrs
Mark my words: they will suddenly without warning in the emergency stage force your registered plans to buy government bonds during the rate spikes
ALL governments attack private retirement savings when they are about to go broke
No exceptions .. even if they force only 50% of your account into these worthless instruments
The massive corruption and out of control spending and borrowing is the problem Justin – most of these problems are due to government and central bank choices and elites who buy off the politicians
Same old story as centuries gone by
We are no different

#75 Have you ever been to Paris, France? on 02.20.17 at 8:38 am

DELETED

#76 Bytor the Snow Dog on 02.20.17 at 8:41 am

Ahhh Garth. The hard core trickle downer.

Too bad most of us know that the stuff trickling down isn’t prosperity.

As for T2 and his taxes, I have a diatribe coming up.

Stay tuned.

#77 The Trudeau resistence on 02.20.17 at 8:56 am

https://www.youtube.com/watch?v=8JM6N763Tx4

#78 Al on 02.20.17 at 9:00 am

Meanwhile, in Ontario, Wynne and Sousa give Apartment Landlords a gift by freezing their property taxes to sheild them from increased assessed values. No such gift for our farmers and low-income homeowners.

#79 DoomandGloomer on 02.20.17 at 9:13 am

We need an A-Hole to replace T2.
Kevin O’Leary would suit the job fine.

Who should be the leader of this Country?

A simple fable can answer this question:

When the human species finally evolved, all the parts of the body argued over who would be leader.

The brain explained that since he controlled all the parts of the body, he should be leader.

The legs argued that since they took man wherever he wanted to go, they should be leader.

The stomach countered with the explanation that since he digested all the food, he should be leader.

The eyes said that without them man would be helpless, so they should be leader.

Then the asshole applied for the job. The other parts of the body laughed so hard at this that the asshole became mad and closed up.

After a few days…

The brain went foggy, the legs got wobbly, the stomach got ill, and the eyes got crossed and unable to see. They all conceded and made the asshole leader.

This proves that you don’t have to be a brain to be the leader…

Just an Asshole.

#80 Bytor the Snow Dog on 02.20.17 at 9:18 am

I’ve been reading many comments lately about T2 and his actions to increase taxes and people decrying that they paying more than their fair share. Well, I work for the government and I’m here to help!

As I have said before I work for a municipal government here in SW Ontario. Without doxing myself I would like to say I know what drives government waste.

It’s you.

Yes you, the taxpayer. Not individually, but as a group. There’s things a government should do and there’s things a government shouldn’t do. The problem is that no two people can agree on what those things are. So you get Heather Helicopter Mom wanting playgrounds bubble wrapped because little Johnny fell down and scraped his knee. Or you get Nosy Neighbor Neil calling for more and more laws because he doesn’t like what his neighbor does with his property. All of this bubble wrapping and excess regulating costs money.

In the interests of disclosure I’ll create my list of what I think governments should and shouldn’t do below. Feel free to comment. This will encompass things done by all three levels of government.

SHOULD DO
Protect the border (Military, Customs).
Provide infrastructure (roads, sewers, power, and water).
Provide life safety (Police, Fire, Justice System, ESA, TSSA Etc. Excessive regulation needs to be abolished, pay of cops and FFs needs to be looked at).
Regulate food safety.
Limited workplace regulation.
Health Care.
Free education up to and including one undergrad degree.
Limited welfare/disability payments for a specified length of time.

Please note that I have caveats for every single point above that I can go into but this post is already too long.

SHOULDN’T DO
No funding any Special Interest Groups.
No funding for anything that promotes identity politics.
No corporate welfare.
No funding for sending troops to foreign countries without a clearly identified threat to Canadians on Canadian soil (No the fake war on terrorism doesn’t count).
No CPP.

We depend on government to do way too much and it costs us dearly. I’m sure you fellow posters could add many more items to these lists.

Fire away…

#81 IHCTD9 on 02.20.17 at 9:31 am

From the sounds of things here on the blog, T2 won’t be picking any low hanging fruit. It’s going to hard won, and additional revenues are by no means assured. Could be another scenario like his “tax on the rich” where instead of producing revenue, he flushed a few billion per year down the hole.

A dingbat Portland shovelling PM with his prepubescent gender neutral cabinet, what were Canadians expecting?

Prosperity LOL?

#82 anti-Trump on 02.20.17 at 9:41 am

The German press labeled our guy the “anti-Trump”

—-

Must have been the German MSM.

#83 Chris on 02.20.17 at 9:58 am

Garth I own a small business and take a mix of salary and dividends (usually about 40/60). Total last year around $500k but business is booming so could be $600k+ this year. Of course the TFSA’s and RRSP’s are maxed (wife doesn’t work so I have a spousal for her so we can try to keep our portfolio’s a similar size). Mortgage paid off years ago and still living in a house we bought in 2006 before I was making such good coin.

One other good reason for Ontario business owners to take dividends is to avoid the EHT (employer health tax) of 1.95% on payroll over $450k. Costs us thousands a month already with payroll in the millions.

Trudeau is a jackass and I swear I would vote in O’Leary in a heartbeat at least he understands a little something about running a business.

#84 Hair guy on 02.20.17 at 10:17 am

Yo smokey, here’s my take. Hunter would be a deplorable until Trump actually won, then distance himself because :/(:!+(?)@$! The system.
Hemingway seems like he’d like T2. O’leary seems too materialistic for Hemingway ‘s sensibilities, but he might find Justin suitably romantic

#85 is this a concern? on 02.20.17 at 10:20 am

Immigration debate is heating up in the US and the protests against Trump’s legitimate policy changes are increasing. He is addressing “illegal” immigration and wants to deport people who are in the US “illegally”. No talk of amnesty like the other guy before.

There’s quite a few people who are currently illegally in the US. I won’t estimate but can imagine the numbers in the 10s of thousands, possibly millions.

Then there are refugees who would like to have claimed asylum status but that’s probably off the table now.

The question on my mind is, how many will start walking across the 49th parallel in the Spring when the temperatures are rising? Seeing no hope of legality in the US and a Canadian leadership who has literally invited them all to come here?

Don’t laugh at this, but the idea is giving me nightmares. Canada would be in no way, shape or form able to cope when thousands come marching up North. Simply jumping the ditches along 0 Avenue in Surrey.

The US won’t stop them either. Not when there are so many on the move.

Thoughts?

#86 SHAOLI CHEN on 02.20.17 at 10:31 am

Hi Garth,

I’m a long-time reader of your blog. Thank you for all the nice writings.

Iliana Rocha from Mississauga started a petition to urge the Ontario government to introduce the Foreign Buyer Tax to GTA. I personally believe this helps to cool down the insane market. I hope you don’t mind I share the link with your blog readers (Sorry it is off today’s topic).

Here is the link:

https://www.change.org/p/ontario-finance-minister-introduce-additional-real-estate-tax-on-foreign-investors?recruiter=684438338&utm_source=share_petition&utm_medium=copylink

#87 Future Expatriate on 02.20.17 at 10:52 am

Okay then.

The biggest fallacy on planet earth is that people who make money are somehow more intelligent than other people. It takes no intelligence whatsoever to quickly figure out where the money is, especially in America. What determines monetary success is how much of Satan’s spew a human will swallow and how low they wlll go. And how quickly and how thoroughly they will Orwellingly convince themselves that Satan is somehow Christ and that evil is somehow good and vice versa. “For the kids”. Always for the kids. Like a wolf or lion pack.

This has always been the right’s greatest dilemma; how low can you go before it’s fricking obvious to even an idiot you have no soul left.

And Absolute Evil’s easiest pickings.

He who dies with the most toys never gets out of Hell. I didn’t say this; Christ did. And if He’s right, the rich are in big trouble… squeezing through a needle is damned painful.

Why most rich are betting on either their atheism or this fake christ dude they made out of Lucifer and der Trümpenführer.

Lotsa luck. In the meantime, I actually got an email asking me if I manufactured guillotines. I kid you not. I wished them luck on their inevitable revolution.

Canada was smart to stay out of the revolution biz. Try to remember that. Being Marie Antionette was only fun as long as the cake lasted.

Maybe it’s good to spread the wealth around a little after all, eh.

#88 When Will They Raise Rates? on 02.20.17 at 11:18 am

DELETED
One more racist post like this and you will be banned. — Garth

#89 When Will They Raise Rates? on 02.20.17 at 11:26 am

DELETED

#90 Hana on 02.20.17 at 11:28 am

Hi Garth, I have assets in non registered account while my rrsp is not topped up. Does it make sense to move some assets to rrsp because I am not in top tax bracket? Income 75K.

#91 Wrk.dover on 02.20.17 at 11:59 am

I see religion creeping into the comments today….

#92 TRT on 02.20.17 at 12:01 pm

Canada is a tolerant nation made of immigrants. Let’s talk with our wallets.

The rate of the refugee influx from the USA is now at 1000/month. It is expected to go up to 10-20,000 a month when America starts enforcing its immigration policies and summer rolls around.

240,000 potential refugees will need help settling here.

I can’t understand why everyone is upset at raising the capital gains inclusion rate to 100%, especially when we need the money.

#93 TRT on 02.20.17 at 12:08 pm

#70 Bezengy on 02.20.17 at 7:58 am
Funny thing I’ve noticed over 30 years is how those making tax laws always write the law to benefit themselves. Ex: Senior Discounts…let’s face it, a senior drives into a National park with a $500k Motorcoach and they get a nice discount, the young guy driving the Civic pays full price. (who made that rule?)

This tax thing really brings out the animal instinct in all of us, which is me first.

———–

So called Age discrimination.

#94 ShawnG in TO on 02.20.17 at 12:10 pm

the Bells and Rogers and utility co’s can’t be too happy if dividend tax goes up. that will make their stocks go down. if it’s true they’ll fight hard. it’ll be easy since they own 99% of msm in Canada.

of course they won’t use their own names in advertisements. you’ll probably soon see ads by the groups like “grandmas for beautiful family future” comparing div tax cut as an attack on family stability.

the conservatives leadership debates is still going on. that’ll make the budget an easy target when it’s released. it’ll be like giving the pc free air time during “news” shows.

#95 Damifino on 02.20.17 at 12:16 pm

#84 is this a concern?

There’s quite a few people who are currently illegally in the US. I won’t estimate but can imagine the numbers in the 10s of thousands, possibly millions.
…. Thoughts?

——————————————

Yeah, it’s a concern but you should leave the imagining of numbers to Donald. There’s no one better at it.

——————————————
#86 Future Expatriate

Thanks for reminding me to enable my zealot filter.

#96 Centre Wing on 02.20.17 at 12:17 pm

Bytor, interesting list. I could get on board with most of that other than a “free” undergrad. You’re right that it is us who cause so much government spending and waste. Curious about what municipality you work for. I often check out the job opportunities for SW Ontario municipalities as well. Kudos for supporting scrapping CPP. Some kind of mandatory private savings would be better. If I croak at 59, what good was all those years of contributing?

#97 Wall or first nations deja-vu experience? on 02.20.17 at 12:24 pm

DELETED

#98 Bobby on 02.20.17 at 12:38 pm

Our illustrious Liberal government is going to tax away any incentive for Canadians to keep working. Yet this government wants people to stay in the workforce longer. They can’t seem to make up their mind what they want.
May I suggest the way forward is a tax on idiots. Considering the clowns we have in Ottawa and the people that put them there, undoubtedly enough would be raised to pay off any deficits and probably the entire debt.
I wonder how long until our version of a Trump rises to the surface?

#99 The Technical Analyst, CSTA, CPD on 02.20.17 at 12:50 pm

#84 is this a concern? “There’s quite a few people who are currently illegally in the US. I won’t estimate but can imagine the numbers in the 10s of thousands, possibly millions.…. Thoughts?”

It is a HUGE concern. This is one of the main reasons why Trump was elected by the people, to stop this.

I lived in Texas for 3 years, and I can tell you, the US Gov’t openly states 80,000 PER MONTH are coming into Texas from the Mexican boarder. 10% of those are unaccompanied children.

That’s almost 1,000,000 per year, just into Texas.

The other thing the US Gov’t openly states is 100 miles north of the Mexican boarder, INTO the USA, it is UNSAFE FOR AMERICANS to go.

Racial? No, it is just data.

#100 Euro observer on 02.20.17 at 12:51 pm

T2 shows total incompetence.

A guy who never worked a day of real work in his life in the private sector is stating that Canadians (according to him) are not paying their ‘fair’ share of taxes.

Now considering hit total lack of professional skills in the area it is very likely that the opposite is true – that Canadians are overtaxed by parasitic and incompetent authorities.

BTW Mike Pence just reaffirmed the expectations that Canada should pay it’s fair share of military expenditure for NATO – 2 % of GDP by year 2024. That is jump in military expenditures of over 20 billions per year – from current 18 billion to over 38 billion.

So it seems T2 is not paying his fair share here, not the Canadian taxpayers.

pathetic stupid little man.

#101 Hairhead on 02.20.17 at 1:25 pm

Yesterday I made a number of intemperate remarks, for which I apologize. I had just come out of an argument with my brother, who had called T2 “a f****t Communist”, had sneered at Canadians as “always a day late and a dollar short”, and had wanted 90% of all government workers fired because “they’re all lazy parasites, (and used a few racial slurs I won’t repeat here)”.

I admit this got me worked up, and when I came on the comment section I read a few remarks and blew up.

From now on, I will address specific comments and commenters on this blog and include the comments in my own post, just to keep things clear, and not to descent into insulting generalizations.

#102 BornInTheUSA on 02.20.17 at 1:35 pm

“Several years ago Bain Capital noticed something unusual: the rate of growth of the “real economy” was slowing down, while the “financial economy,” despite the worst financial crisis in decades, was accelerating. By 2010, the value of all the investment capital in the “financial economy” — essentially, the stuff that investors use to invest in things — was $600 trillion, triple what it had been two decades earlier. It was worth 10 times more than all the goods and services in the “real economy. ”https://thetyee.ca/Opinion/2017/02/20/Real-Reason-Cannot-Afford-Home/?utm_source=daily

#103 Yycnotretired on 02.20.17 at 1:41 pm

Canada. Where working hard, getting an education and a good job pays off for everyone else but you!

Worked okay for me. — Garth

#104 Penny Henny on 02.20.17 at 1:48 pm

#7 Eric on 02.19.17 at 6:51 pm
What if we have squirreled away enough in an RRSP? Is it better to pay tax at a 36% marginal rate than invest in an RRSP just for the tax deduction? I’m seeing a point where I’ll have to start pulling it out when I retire and I’ll get hammered with taxes.
//////////////////

How about retiring earlier.

#105 Smoking Man on 02.20.17 at 1:49 pm

#101 Hairhead on 02.20.17 at 1:25 pm
Yesterday I made a number of intemperate remarks, for which I apologize. I had just come out of an argument with my brother, who had called T2 “a f****t Communist”, had sneered at Canadians as “always a day late and a dollar short”, and had wanted 90% of all government workers fired because “they’re all lazy parasites, (and used a few racial slurs I won’t repeat here)”.

I admit this got me worked up, and when I came on the comment section I read a few remarks and blew up.

From now on, I will address specific comments and commenters on this blog and include the comments in my own post, just to keep things clear, and not to descent into insulting generalizations.
….

T2 worced than a communist. Delibrate destruction of the economy is his pupit masters goal.

Butts is an Idiolog wing nut. No clue.

#106 Centurion on 02.20.17 at 1:51 pm

This pokey, boring, average house on my street in Oakville was listed a week ago:

https://www.realtor.ca/Residential/Single-Family/17812705/144-River-Oaks-Boulevard-E-Oakville-Ontario-L6H5N7

Just over mil for a carpeted 2nd floor, a kitchen that hasn’t been updated, and a backyard that isn’t even big enough for a dog. But at least it’s got a custom slot car racetrack!

#107 ccc on 02.20.17 at 1:57 pm

Canada is nowhere near a revolution, yet. But just a few words from someone who’s had some field experience in the topic.
The majority of society looses big time in the long term during revolutions. Original 1%ers get expedite wealth destruction/appropriation by other groups. For a short time the 99%ers enjoy the wealth distribution that takes place but soon enough the new system proves completely incapable of wealth generation thus bringing down most of the society with it. Very few from either group get to become the new elite. The rest all loose. Many of the original 1%ers leave while most of the 99%ers remain in the same bracket but now in a society with a much lower wealth ceiling for the majority of the population.
That has been the story of many of the modern revolutions no matter the original resources the countries had. Two cases for example: Cuba (very little natural resources), Venezuela (huge oil reservoirs, strong financials, aka the ex-Canada of South America).
National policy in this country should be focused on wealth creation via stimulation of entrepreneurial small and medium size companies (the ones that actually create local jobs, do not outsource like crazy, neither park most of their cash into middle of nowhere tax heavens). Shopify success in part relies on the role entrepreneurship is playing worldwide. For God sakes, even those parasitic lazy gov bureaucrats should know that their jobs and retirement packages are more secure (and worth something) the more they support via legislation entrepreneurial activity. One has to be really short-sighted to not recognize such trend.
I understand some big corps play with the rules but in this new era of data cannot be that complicated to create a national strategy to track corporate contributions to national economy. Want a Canadian gov bailout and keep sending manufacturing jobs somewhere else? Then go there asking for financial help.
Ok, ok, no more blurb from me.

#108 me again on 02.20.17 at 2:00 pm

#77 The Trudeau resistence on 02.20.17 at 8:56 am
https://www.youtube.com/watch?v=8JM6N763Tx4

thanks for that
people should mobilize, ie go door to door on your street, Unions, churches, etc
get signatures in opposition to carbon tax etc. everyone will sign
and send to your MP

they are collecting billions globally on propaganda campaigns, problem is most people don’t recognize propaganda.
trump calls out fake news (propaganda) but he’s a propagandist too: global warming is a hoax, but not staged terror. it takes one to know one
The point is we are taxed on unproven lies, and called ‘deniers’ if we disagree or ask for proof which is never given. everything is staged- brexit and trump, they will crash the world economy, blame right wingers, and introduce the ‘solution’ ha ha

CLIMATE HUSTLE – Full Movie

https://www.youtube.com/watch?v=OuEdmV2Cabk

#109 Wall or first nations deja-vu experience? on 02.20.17 at 2:01 pm

#97 Wall or first nations deja-vu experience? on 02.20.17 at 12:24 pm

DELETED

===

First time “DELETED”.

The other day you asked someone why people don’t trust New York Times, CNN, etc.

For the same reason what motivates the deletion of this post: unwritten, self-censored taboos.

Taxpayers are not supposed to discuss the cost of certain government programs, e.g. immigration, welfare, although they foot the bill.

It may come across as scratching the public image of “nice Canadians”.

There is no public debate, the topic is the restricted territory of the political class, which includes not only politicians of all parties, but the main stream media.

Except the public, unless it is the rosy, spotless image.

Immigration is a taboo, unquestionable political support for it is rooted in the weird mixture of unconscious guilt and justification of the holocaust of natives of this continent.

When Merkel opened the borders nobody imagined the scale of mass migration in very short time, that left the entire EU completely unprepared.

When there are millions living illegally in the US, who are now potential target of deportation, it is only logical to think about the possible consequences of similar move from Trudeau, who in the spur of the moment openly “invited” whoever is unwanted by the Trump administration.

Are you saying that ordinary Canadians should not think about this, should not debate it as any other issue that we as country, tax payers are facing?

Does a potential mass migration have a considerable potential financial impact on the budget, on individual taxpayers, than for example the TFSA contribution limit?

How are we different with having political taboos from any other oppressive regime that forbids certain topics for discussion by their own citizens?

This is not a blog about hating immigrants or refugees. Go here for that. You will continue to be deleted on this topic. — Garth

#110 aa3 on 02.20.17 at 2:01 pm

Combined taxation of all government levels, past about 35% of GDP, do not seem to bring in additional revenues.

The last I checked the sum of Municipal, Provincial & Federal taxes in Canada, amounted to ~39% of GDP. So it is unlikely that increasing tax rate levels would bring in net new revenue for the governmment.

#111 chapter 9 on 02.20.17 at 2:18 pm

#99 The Technical Analyst,CSTA,CPB
#84 is this a concern

The one thing that is overlooked especially by MSM is the fact that the drug cartels El Clan Barakat,Sinaloa, Gulf,Joumma, Knights Templer, Los Zetas, are working with terrorist groups such as Islamic State, Hamas ,Hezbollah, Egyptian Islamic Jihad, Al Qaeda. Their join ventures include military training, forged documents, human smuggling, drugs, money laundering, identity theft, cigarette smuggling.For example, Iran’s revolutionary guard controls the opium production in Afganistan where it is shipped to Lebanon for refining and into the hands of Hezbollah. From there it is shipped into South America/Mexico and back-doored into the US. The month of October last year US Border Control stopped 46,195 illegals from crossing into the US or 1,490 a day and they estimate that for every one caught, one gets through. That’s one month out of the year!!

#112 westcdn on 02.20.17 at 2:39 pm

“You long eared galoot” does make me smile. Delete me and Yosmite Sam if you will.

#113 conan on 02.20.17 at 3:28 pm

RE: #109 Wall or first nations deja-vu experience? on 02.20.17 at 2:01 pm

LOL on the link to Leitch : )

Immigration is a mathematical/economic necessity for nations that do not have an internal birth rate above a certain minimum.

In the macro world every asset value is ultimately based on an expected population growth. People fuel the demand of everything. They are also the creative spirit behind every invention.

Innovation can come from anywhere. I don’t think it’s a good time to go “alt right” and assume people are evil. My experience is that “people are people”, and any political ideology that points fingers ends up getting shot down in the flames of history.

#114 republickderkanadaskyet on 02.20.17 at 3:34 pm

Mulrony sings Irish eyes, T2 sings “Back in the USSR”…I see bread lines and blue jeans shortages in the Great White north in the near future.

#115 Deplorable dude on 02.20.17 at 3:37 pm

#85 is this a concern…

“The question on my mind is, how many will start walking across the 49th parallel in the Spring when the temperatures are rising? Seeing no hope of legality in the US and a Canadian leadership who has literally invited them all to come here?”

I was thinking about this last night.

The US/Canada could end up with the equivalent of the ‘Calais Jungle’ on the Canadian border, Thousands of illegal economic migrants lined up trying to get into the country thats going to give them the most benefits.

These aren’t ‘refugees’ in any sense of the word. They are opportunistic economic migrants whose visas have run out and or have been refused refugee status in the US, and realise their predicament with the new US President.

I’m a legal migrant to Canada, went through due process to live and work here legally….I don’t know why these social justice warriers can differentiate between 72 different kinds of gender, but not between legal and illegal immigrants?

#116 Wooly Mammoth on 02.20.17 at 3:38 pm

Garth,

What are the odds that Trump-meister will get a bunch of scientists to declare an imminent ice-age…..kind of like the 1970s zeitgeist, and unwind everything that the Gores and and Obamas inflicted on the world with global warming fraud

#117 Chaddywack on 02.20.17 at 3:47 pm

Garth you were in government once upon a time. How does one seriously become a Senator? Sounds like the best gig in Canada.

#118 VICTORIA TEA PARTY on 02.20.17 at 4:09 pm

#1 Harry B

Down through the decades, lefties everywhere have been happily, and ignorantly, predicting the end of capitalism.

It ain’t gonna die on anybody’s watch anytime soon.

The problem is not the survival of capitalism but continuous attempts by the evil left to try and kill it.

The recent, and damnable Obama admin, tried but failed. Even though the Wall Street banksters are largely supporters of the Democrats, there was no way Mr. O was gonna mess with their profit motives. No way. Look at the bailouts they got in 2008-09! All paid for by taxpayers!

So how could an interview program, featuring a European leftie interviewed on the extreme left CBC, come to any other conclusion than capital is doomed?

The CBC is closer to doom that some rich and smart and arrogant money-makers.

You can bet on that.

#119 Tamsen on 02.20.17 at 4:46 pm

https://www.linkedin.com/pulse/how-fed-went-from-lender-last-resort-destroyer-american-booth?trk=eml-email_feed_ecosystem_digest_01-hero-0-null&midToken=AQFqY1RGdr3LbA&fromEmail=fromEmail&ut=3VTvhu8pKxkDE1

#120 WUL on 02.20.17 at 4:47 pm

ICHTD9:

A note of thanks to you for your contributions here and your insights. Carry on.

I have been at the controls of two crawler tractors. About 49 years ago at the age of 12, a catskinner put my right hand on the Johnson bar of a D8 CAT to go back and forth to pack a dirt driveway after the installation of a culvert.

In the mid ’80’s my father had a small one and if we could get it started, I would muck around on it. I have emailed him (age 88) to ask for the year, make and model. Maybe a retirement project to plow snow off my suburban driveway in Calgary. If the ether sprayed into the carb fires it up, I’ll do the neighbors too. A bit rough on the concrete, I suppose.

Cheere.

#121 WUL on 02.20.17 at 4:49 pm

Oops. It was probably a diesel. I am not a gear head. Ether won’t work. Or might it?

#122 Damifino on 02.20.17 at 4:54 pm

#118 VICTORIA TEA PARTY

Streeck seems to be saying that capitalism will ‘die’ in a limited sense but it still won’t go away. He says no other system is waiting in the wings to replace it so it will instead rot in place indefinitely like the portrait Dorian Grey or Keith Richards.

It seems less appealing to think humanity will struggle on in within the corpse of capitalism than to have it replaced by some kind of new T2 socialistic world order.

Still, I think I’d prefer the corpse I know over the one that died and had the good manners to decay last century.

#123 crowdedelevatorfartz on 02.20.17 at 5:11 pm

@#72 Dits
“an illustration of people talking bullshit:”
*******************************************

You mean like pontificating sociologists from the Max Planck Institute.

Pot meet Kettle

#124 jess on 02.20.17 at 5:19 pm

so who needs communication human when the AI will do?
https://www.scout.ai/story/the-rise-of-the-weaponized-ai-propaganda-machine

…”this phenomenon was about much more than just a few fake news stories. It was a piece of a much bigger and darker puzzle — a Weaponized AI Propaganda Machine being used to manipulate our opinions and behavior to advance specific political agendas.

By leveraging automated emotional manipulation alongside swarms of bots, Facebook dark posts, A/B testing, and fake news networks, a company called Cambridge Analytica

russian trolls
https://www.youtube.com/watch?v=OauLuWXD_RI

#125 When Will They Raise Rates? on 02.20.17 at 5:21 pm

#88 When Will They Raise Rates? on 02.20.17 at 11:18 am

DELETED
One more racist post like this and you will be banned. — Garth
————–

How the hell was that post even remotely racist?

I was responding directly to another post (which you approved) that pointed out that there is in fact a plethora of material documenting the problems in Sweden vis a vis their open door immigration policy and “no go zones”, contrary to the claims of the previous poster who said that no go zones are “a myth fabricated by the far right in a news editorial to fearmonger about immigrants and refugees.

I posted a funny Leslie Nielsen gif with the caption “There’s nothing to see here”, to illustrate the irony. In no way was the image racist, it was a scene from a comedy for heaven’s sake.

I have no problem with any race. What I do have a problem with, is irresponsible government policies – immigration or other – and people who slander and libel you as a racist, misogynist, xenophobe or bigot for having an opposing view.

Nevertheless, it’s your blog and you have the final say as to which views you want published. I’ll refrain from participating in any immigration conversations that arise on this blog in the future, but I recommend that you disallow discussion from people on both sides of the debate, not just one.

Cheers

This is not an immigration, anti-refugee or Muslim-bashing blog. The standards are higher here than at the White House. — Garth

#126 Mr Happy on 02.20.17 at 5:35 pm

“And recall the advice given often about hedging against our currency. Keeping about a fifth of your portfolio in US$-denominated stuff (at all times) is wise.”

I asked this in the wrong thread yesterday, sorry…

Does it matter if one buys a US ETF “hedged” in Cdn $ or is it better to buy one in US Dollars?

Thank you

#127 Smoking Man on 02.20.17 at 5:39 pm

Just emasculated Richard Branson on linked in.

There goes any job prospects on bay street.

You got to cut the ambilicord at some point in life if you want to be an impoverished fiction writer. Cause every other occupation is boring as hell and forces you to deal with people. I hate them all. I’m a mega rasists.

My downfall can be blamed on alcohol, downfall can be defined as a glass 1/2 full or 1/2 empty depending on the observer and his mood at the time.

#128 Smoking Man on 02.20.17 at 5:51 pm

Polical Correctness is an evil being. Keeps you away from observational awareness to suck the teet cause your firgtened little snowflake.

What horid place to to live. Bozze so under rated. That’s why T2 is going with Smoke.

Since when has a stoner ever killed cause you looked at him the wrong way. Ok fighting for a slice of pizza don’t count.

If I was T2 I would ban Jack Daniels. Won’t end well for him. Honestly and courage found at the bottom of every bottle.

Yes I’m well into it on family day..

#129 I like cookies on 02.20.17 at 5:57 pm

> “…it also means scrapping electoral reform, a change which would have ensured the Liberals lose the next election and a Trumpian movement win seats in Parliament…”

Come on Garth, you know better than to fall for this rhetoric… http://news.nationalpost.com/full-comment/andrew-coyne-dont-fear-trudeaus-proportional-representation-bogeymen

#130 acdel on 02.20.17 at 6:04 pm

#127 Smoking Man

You have been posting on Garth’s Blog probably longer then anyone that I know! Long time reader myself but only started posting a few years back due to finding many posts very interesting and wanting to know more, I am just an average dude that is curious..

If Garth is up to it; why not post or have a link to a chapter in your book that we can read and see whether we wish to purchase a copy; you have never really mentioned or explained in great detail (to my recollection) as to what it is you are selling! What is it that you are trying to tell us and why? Why should we purchase your book?

#131 Smoking Man on 02.20.17 at 6:41 pm

#130 acdel on 02.20.17 at 6:04 pm
#127 Smoking Man

You have been posting on Garth’s Blog probably longer then anyone that I know! Long time reader myself but only started posting a few years back due to finding many posts very interesting and wanting to know more, I am just an average dude that is curious..

If Garth is up to it; why not post or have a link to a chapter in your book that we can read and see whether we wish to purchase a copy; you have never really mentioned or explained in great detail (to my recollection) as to what it is you are selling! What is it that you are trying to tell us and why? Why should we purchase your book?
…..

You should not purchase it. It’s shitty. I’ve refrained from hiring an editor out of pure selfish reasons of grandure. Self love and fk the machine.

Link is on my name. But don’t do it till I cave and get someone to fix it.

Don’t think humanity is ready for raw Smoking Man.

The fact that I’m even respondibg after cleaning out every bottle of JD at Seneca shpiluld be a star in my participation trophy.

#132 Armando on 02.20.17 at 6:46 pm

“It’s time to pay a living wage, to pay your taxes, and to give your workers the benefits ….”

And it’s time for anyone with brains or initiative to get out of the Socialist Republik of Canuckistan!

#133 acdel on 02.20.17 at 7:10 pm

#131 Smoking Man

I disagree; you have much to say and many (including myself) are curious!

Believe me nothing is perfect in my life, I am just getting by, but one has to keep moving forward!

#134 Ronaldo on 02.20.17 at 8:46 pm

#64 Nonplused on 02.20.17 at 4:06 am

No arguments there. It’s bullshit.

#135 Saraya grewal on 02.21.17 at 1:05 am

Comment #12, couldn’t agree with you more and I’m of south asian descent. Canadians are so apathetic, not enough people write to government or protest the negative aspects of globalization and governments who only make decisions out of self interest and obtaining power. Of course there are many positive aspects to globalization, but our governments are trying to brainwash us into thinking ONLY good things come from globalization. I was born and raised in Vancouver, trust me I know the impact of foreign money, wealthy overseas individuals paying no tax, declaring poverty level incomes, the list goes on and on. I also have the most manipulative, currupt premier who is assisting in every possible to make this province one controlled by real estate developers and foreign money. This place called Vancouver is a mess.

#136 Henry on 02.21.17 at 7:06 am

I’ve been monitoring the Guelph ON prices for 3 years now. I can tell you that anything going on sale is garbage in terms of location and quality.

People there have not been selling. Prices have all gone up 100k to 150k in the last 18 months.

Having said all that, the sellers are having a huge problem selling as nobody is buying their overpriced trash.

#137 Tudval on 02.21.17 at 12:39 pm

That letter from the anesthesiologist illustrates two points I want to make:

#1 You’ve pinned FOMO only on home buyers, whereas my observation was that it was rampant among home owners who were on edge with their finances and ‘cashed in’ in the last few years. They are out (looking in with regret, no doubt), while the ones remaining, with stronger financial situation, are not selling, which explains the fall in new listings)

#2 My fear about going to hospital – sure, getting sick is no fun, but even more worrisome is being treated by people who do not have such strong mental acuity as you would like of someone who has your life in his hands.

#138 Future Expatriate on 02.23.17 at 10:52 am

#95 Damifino You meant your conscience filter. I highly recommend Bohemian Grove’s “Cremation” of “Care” ceremonies. Take Alex jones with you, he knows all the best bushes.