Ouch. Bay Street needed a new order of Depends Tuesday as stocks swooned along with oil. The dollar, too. Barely hanging on to 74 cents now, little more than a month after it was headed for 77.
So, wassup? Is this happening just because US frackers are turning on the taps and American interest rates will be sliding higher on Wednesday?
Partly, yes. But there’s more. It has to do with next week. Less than a year and a half after T2 was elected to a majority, the kimono opens and we view what our overlords are packing. The market’s bracing for a serious tax-and-spend, classic liberal budget on March 22nd that will punish people silly enough to be successful and have money.
So far, we know this. The country has fallen back into serious deficits and roughly $100 billion will be added to the nation’s debt by the end of the first (and maybe only) Trudeau mandate. Thus, the budget did not balance itself. Not even close. We also know tax revenues have been increased, thanks to the new 29% eat-the-rich bracket contained in the last budget. But that’s not enough to offset spending, which will be $29 billion more than revenues this year. Oops.
This has led to a rough spot for the feds. The teeming middle class and all those lefty moisters are expecting more dough from government – because that’s what they were promised. But with a 54% tax load already imposed on the incomes of the lonely 286,000 high-income Canadians, the Libs are running out of blood. Plus, if they plan on being real dicks, then this is the time to do it – two full years before the next election.
The result?
Up goes the capital gains tax inclusion rate, from 50% to (I’m hearin’) 75%. For the average guy owning a bunch of mutual funds, that will increase the tax load by 49%. Ditto for your investment real estate, or that condo you bought on spec. Of course, this is still a lower tax rate than is collected on interest from GICs or rental income, but it’s a shocking hike.
By the way, it was Justin’s dad who invented capital gains taxes back in 1972. Before that you could keep the money your after-tax money had earned. But no more. The inclusion rate (the amount of a capital gain you must include in your taxable income) was raised to 75% in 1990 by Brian Mulroney as part of the strategy to corral the deficit, then cut back to 50% in 2000.
Also up for diddling: the treatment of stock options, famously used now to attract bright young minds into emerging companies and start-ups. Also the dividend tax credit, which recognizes investors are receiving money from corporations that have already paid their share of tax. The Libs may be ready to say phooey to that.
Then there’s the expected Doctor Tax, targeting small corporations in which family members are shareholders or receive compensation. Retained earnings might also come in for special tax treatment, since (you know) only super-rich people like tile layers and self-employed IT consultants operate through incorporations instead of collecting salaries.
Now, even houses may not be beyond the grasp of TPTB. You will recall last October this paranoid but muscular blog raised an eyebrow when the feds made it mandatory to tell the CRA when you sell your home. Ostensibly this was to prevent foreign dudes from flipping properties and avoiding capital gains tax (which is a total non-event), while the real purpose is to establish a residential real estate register for future revenue purposes.
Gluskin Sheff smart guy David Rosenberg is now speculating this could be leading to a trial balloon on the taxation of capital gains. Imagine. Making $1 million in profit on your slanty semi, and then having to pay tax on that! “This promises to be a tax-grab budget that would have made the likes of Herb Gray very proud if he was still alive,” says Rosey.
But if taxing windfall, undeserved and socially-destructive real estate gains ain’t on, then you should expect the CRA to be hunting down the self-employed who have been claiming home-related expenses (a portion of mortgage interest, heat, insurance etc.). This will used to reduce the tax-free profits they may be expecting when the property sells.
In short, we elected guys who promised stuff that they made up. Now they can’t pay for it.
Care for a fresh Depend?
230 comments ↓
Apocalyptic if true. I’ll hope that it turns out to be rumour. We can say goodbye to another generation of entrepreneurial mavens and professional specialists.
Hi blog dogs…. so I’ve decided with my 250k inheritance I’m gonna buy 25k of bce & 25k of enbridge
Then 10 stocks 10k each stock
Then 10 etfs 10k each etf
I need help in deciding what ones! Please help this young turnip out!
Thanks ur girl ricky
I believe you meant to say $100 Billion will be added, not $100 million. Everyone would be very happy with $100 million which does not go far these days in government.
…some days I really miss Harper – that is weird.We had anybody but Harper Fed election, now in BC we have ” ABC ” provincial election this year….Anybody But Clark. We are becoming Snow Mexicans with Canadian Peso to boot.
So if I’m a fully-employed renter with a sole-proprietorship side-hustle, with big expenses, but little profit, then I’m a winner, right? Especially if I use my wages to goose mine and my spouse’s RRSPs, and use a T1213 to reduce our taxes deducted at source by 66%?
Phew. By the way, the education savings grant of my son’s RESP dropped this week. Thanks Government, junior’s going to the ivy leagues!
You get what you vote for…..
So Garth, does this change any investment recommendations with respect to the vehicles one uses or the relative weightings to maximize tax efficiency?
And I wanted to move there……unbelievable.
If the dividend tax credit gets nixed, I divest most of my Canadian holdings. Simple as that. How will Canadian companies attract investors when there’s double taxation on dividends? Lots of great companies south of the border, which will eventually have a lower Corp tax rate.
Garth,
A couple months ago you said Victoria house prices were going to start decreasing soon, like Vancouver. Were you wrong, or just early? Prices look to be going up yet again this spring with incredibly low inventory and speculation running rampant.
Don’t blame me, as a right wing dinosaur in this country, I was forced by conscience to vote the most conservative platform offered during the election. The NDP platform.
Que the twilight zone theme.
I hope this is the only Trudeau mandate, but he’s still riding high in the polls.
He will legalize weed a few months before the next election and everyone will vote for him again……just watch.
I think you meant $100 billion there GT. Ouch, that’s a big whole to dig.
Ahem, I sure didn’t help T2 get elected, but will definitely do my part to help get him unelected in 2019…
BTW, it’s looking like a dead cat bounce for real estate in YVR:
http://vancouversun.com/news/local-news/canadian-home-prices-post-record-february-increase-teranet-national-bank-index
He promised me sunny ways and a pony. If he can’t deliver the goods, he needs to sash up his kimono and leave town.
Sounds like they want to go after as much as possible, while leaving the primary residence a tax free capital gain. (not even JT is dumb enough to try that). But it would certainly put an end to the housing ladder climb.
Just put the capital gains tax on any real estate sold anywhere.
Sad state of affairs… if these incompetents decide to tax investment (dividends and capital gains) higher then they better not leave real estate gains tax free.
I’m getting so sick of the double standard. Tom & Jane buy a house to live in 25 years ago, save jack but can now collect a million tax free while anyone starting out or who has been investing to try and ensure their future never gets off that easy.
Fine tax rental income, windfall housing gains and investment income the same- screw everyone over the same. Way to vote in T2 people!
“…But the government should go even further than that and eliminate the capital gains exemption that people currently enjoy when they sell their homes. Once upon a time, this exemption made sense: home ownership was seen as a social and economic virtue, capital wasn’t as plentiful or readily accessible as it is today, and the housing market hadn’t been turned into a craps table where the dice always hit seven and the players always won.
Today, though, the housing market has transmuted modest piles of brick and drywall into winning lottery tickets, and it’s been older Canadians who have benefited most conspicuously. While young Canadians struggle to get into the housing markets of many major cities, their parents and grandparents are cashing out with prices that are multiples on what they paid (even after adjusting for inflation). This deprives the federal treasury—and, by extension, each of us—of an estimated $5 billion a year, a figure that might be on the low side given that it was calculated before Toronto’s housing market, the largest in the country, went supernova over the last twelve months. This is no longer good public policy—this is an inexcusable taxpayer-funded gift to a group of people that doesn’t need the help.”
Source: https://thewalrus.ca/its-time-to-stop-subsidizing-canadas-seniors/
Far be it from me to complain about taxes as an apparent whiney, I-want-it-all-millennial, but what seems to be the issue here? You profit off something, you pay tax. Why should I argue for the guy/girl who’s reaping mass profits from buying then sitting on a house just to unload it? I’m not asking (read: whining) for anything here, but I should shed a tear for this person? Please.
Make Canada Great Again
‘Lean In’ and contribute to this?? NO WAY. NO. My only question: What can I do to actively STOP this involuntary subsidization of a parasitic system that is destroying my freedom and interests: economically, racially, personally?. WE are not on board with this, do not consent, and will not be co-operating.
Taxed on the money you earn, then taxed on savings, taxed on investments, taxed on tax.
The only tax-free investments left: hookers and homemade beer. You can’t tax fun, leisure or dissipation, but you CAN tax effort, ambition, and productivity– those are visible and tangible.
Democracy has become one vote and 2 minutes of input every four years, followed by government fiat on 10,000 decisions to tax, steal and coerce everything from you for next 4 years–with state force to back it up.
When you push 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.
T2’s insistence on NOT allowing consent–in taxation, education, free speech, immigration, freedom of association, and private property is an admission.
A serf paid 10% in taxes– and Canadians pay 50%.
This state parasitism must end.
What’s with the “it’s Liberal so it must be bad” angle? Check the graph on the link: http://news.nationalpost.com/news/canada/canadian-politics/graphic-50-years-of-canadian-debt
Do you think the blue guys do better than the red guys? Or shall we brand those facts wrong, or fake news?
Hi Garth!
Tax avoidence is the key…
By the way Happy Birthday all the best,
keep strong … big hug
I still haven’t heard the government’s plan to address the supply problem (GTA). They only encourage condo development and as long as they refuse to build low rise then prices will only shoot higher. Imagine if they put this tax in, no one would sell their house which would only further hurt supply.
Good to be young, if this capital gain tax shoots up, I’m going to wait till it comes down before selling. I hope this will prevent people from selling and the Lieberal’s coffer will be hit.
Good old Laffer curve, politicians are too stupid to read up on it.
http://www.businessinsider.com/rising-mortgage-rates-take-aim-at-the-housing-bubble-2017-3
Does anyone know if there is a cap gains tax on an inheritance house? Piet’s kids are asking… they are waiting for them to die, asap. Tick Tock Tick Tock.
I wouldn’t mind if the capital gains inclusion was dependent on the duration of owning the stock. 50% seems unreasonably low for something bought and sold in the same year. Even in the USA they have “short term” capital gains for this situation.
I’ll be angry if they get rid of the dividend tax credit. Investors shouldn’t be paying double tax.
Canadians went full bonehead electing Trudeau.
At least after this, there will be no question as to just how acutely inebriated the entirety of our Federal Liberals are.
Right now, Harper is laughing… long, and loud.
I am looking at the current political landscape and I predict a return of T2 with more seats. The Conservatives are not smart enough to choose a progressive to lead them. The NDP are going to get hammered in QC.
Harper cost the Conservatives so much in political capital. They are going to be paying for him for the next 25 years.
Flame me … I deserve it. This is after all,a Conservative web page.
Increasing capital gains tax sure won’t help the supply of homes for sale.
Hearing the name Herb Gray again made me throw up a little.
Herb Gray and T1 and Marc Lalonde and Alan MacEachen were the tax and spend Lieberals of the 70s the almost bankrupted Canada.
Now we have T2 and Morneau and the merry band of feminist incompetents looking to do the same to a whole new lucky generation of Canadians.
Well millennials, you wanted legal pot?
You got a crappy economy with no secure jobs, future cuts to your valued social programs, and higher taxes for the rest of your working lives.
Well done!
Selling the family home, and a rental house. RE agent meets with us tomorrow. Second rental will be sold next year. Not in Van or southern Ontario, so no huge gains.
Government just dicks us around through the RTA, rental income tax, cap gains, etc. No longer interested in lining their pockets to spread it around the world. Minimizing ALL tax by withdrawing as a consumer of much in Canada. Moving to the country to get away from bloated property tax.
I guess in order to make some decent money I’ll have to start selling pitchforks.
At the next Bank meeting, Poloz will cut interest rates to 0.25% or even to 0.00%.
Polo will assure you moister that a 70-cent or even a pre-0.60, 55-cent U.S. petrodollar will assist the Canadian economy; to “boost exports in Canada”.
Poloz & Morneau who lives in affluent Bayview, Toronto, will tell you to work for free, while they vacation in 5-star resorts on private Caribbean islands from your tax dollars at work.
Whenever a currency is devalued, the .gov cronies win. They will obtain salary increase’s while your Life Retirement Fund will less their worth in US dollars, which is the reserve currency for the international trade.
We had it coming!!
Little Bill Daggett: I don’t deserve this… to die like this. I was building a house.
Will Munny: Deserve’s got nothin’ to do with it.
[aims gun]
Little Bill Daggett: I’ll see you in hell, William Munny.
Will Munny: Yeah
https://www.youtube.com/watch?v=dpDkYZWeeVg
https://www.youtube.com/watch?v=dpDkYZWeeVg
Baby Castro hasn’t even been in 2 years and the country is in a total mess. I can’t even imagine what it will look like at the end of his term. How could people be so foolish? Let’s not elect another snow boarder.
The warm oil massages for people who don’t pay a fair share of taxes sure gets tiresome—”people silly enough to be successful and have money.”
First off, a huge number of wealthy people inherit money, and get rich off paper, not work—just like the Angry Mango down south. So sorry I was too silly to pick richer parents.
Second, the few wealthy people that actually got so through work are doing it thanks to the shared benefits of our country. The roads, the rule of law, the electrical grid, the medical system, etc.
Third, even the IMF, that redoubt of slavering Marxists, says trickle-down doesn’t work.
So, explain to me why someone who makes more than your average schmoe should pay less tax.
The only silliness is the recurring cycle of wealthy people who start believing their own hype, and need to be reminded with the business end of a pitchfork.
Is 54% enough? What’s your rate? — Garth
So does it make sense to cash out any non- reg investments that have made money (at the current cap gain rate) and buy them back again?
We Canadians, are truly stupid.
15 Self Directed on 03.14.17 at 6:55 pm
Sounds like they want to go after as much as possible, while leaving the primary residence a tax free capital gain. (not even JT is dumb enough to try that). But it would certainly put an end to the housing ladder climb.
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Please don’t use tax free capitol gain and house in the same sentence!
DELETED
#2 Ricky
TERRIBLE strategy, if that’s what you call it. If you absorb any of the advice dispensed by Garth, you will know this.
Talk to a financial advisor (none who comment here) or do some research into a Robo Advisor.
Good luck.
Every move the government makes to tax real estate will result in fewer listings.
If a disposition results in getting hammered by cra, renting it out, putting the kids or grand kids on title etc may be the way to go.
H waged war on the family and now T2
everyone sees it
families will hunker down and stick together
‘us against them’
We’re on our way to a 100% tax rate on everything, but that’s ok, I don’t mind paying my fair share.
@#129 Self driving cars
“corporations will fire all their truck driver , bus drivers , taxis , and every other paid for driver will be gone. Millions of jobs gone and it’s coming very soon.”
*******************************************
Interesting.
I was chuckling at all the teeth gnashing and hair pulling of the monopolistic cab license owners of Vancouver City Cabs a few days back.
They have the City of Vancouver all to themselves and a cab license goes for a cool million buck because of it.
Anywho.
I took a surly cab ride home a few weeks back( I was headed to the suburbs where Vancouver Cabs cannot pick up a ride and must return empty….archaic rules that piss everyone off) and when the driver started bitching about Uber , I laughed.
“Uber? Who cares about Uber? What about self driving cars? If I own one I can get it to drive downtown and pick me up when I’m ready to go home drunk or sober….I’m getting my car to drive me home( note to seniors, Your car will drive you to doctors appointments).
OR the owners of the cab license will just buy self driving cars…..(Why pay smelly, surly drivers who treat their riders like crap or worse).
Your job will be replaced by a robot.”
He stared at me then kept driving…..crickets.
Hey nobody said making Canada “cool” again would come for free. Time for all you cheapskates to pay up!
I have to wonder what the end goal of these Liberal policies actually is? I never thought I’d talk like this but it actually does look like they are trying to institute some form of modern communism where everyone is equally poor and under total control. Dark stuff. Success is shunned. Anyone who stands out is demonized as quick as possible. Economically it’s business owners and the wealthy. Politically it’s any country who dares stand up for itself against it (The US, Israel).
Scary.
#27 IHCTD9 on 03.14.17 at 7:08 pm
Yup. You get what you vote for. All these idiots who voted for T2 as “vote against Harper” look pretty dumb now. Actually, I always knew they were dumb.
#28 conan on 03.14.17 at 7:08 pm
Nah I disagree. The conservatives will ride the wave of populism spreading in the west. Canada is not immune and JT and his cabinet are completely delusional with their heads in the sand about it all.
#12 Chaddywack on 03.14.17 at 6:54 pm
The lesson of 2016 was polls are nothing but propaganda for leftist elite. Ignore.
MF
Hi Garth,
I am planning on creating one of those incorporation this month (Consultant). Is there a better option out there? Will paying myself dividends still make sense?
If they’re going to start taxing housing gains when selling, does that mean that housing losses when selling can be used to offset capital gains?
Peeps crack me up – what T2 is doing sucks yes but if Humper was voted back in the people would be cursing his a** for other reasons too. Can’t win either way – now if everyone would organize and NOT vote we would get somewhere. We need fresh minds and new ideas not the same sh*t these clown parties bring to the table. The beautiful thing about what T2 is doing is that it strengthens black markets, bartering and cash deals. Work the system people – get creative.
RATM
Look at it as an option. You make money – you move to the US to save on your taxes. You don’t make money – you stay in Canada to socialize your costs. And you Iz a vinner in the Soviet socialist republic of Canada
Happy birthday, Garth! Stop moderating comments from us deplorables and go celebrate. The steerage section will still be here tomorrow!
Garth, even your much vaunted `diversified portfolio` cant save you from T2 and his gang of bandits. Then are hitting everything. No place to hide unless its off shore.
Election cant come soon enough.
I don’t understand why the Feds don’t tax lottery winnings. Free money they are leaving on the table.
#2 Ricky
You’ve got 250k and have no idea how to invest it. Now you’re asking for advice from a bunch of blog commentators.
Since you’re reading Garth’s blog, why don’t you go visit him at Turner Investments.
When it comes to money, free advice is worth just that. Go see a pro.
———
I’m pretty sure J Trudeau is clueless when it comes to finances and the economy (and maybe a bunch of other things). That’s what you get when you go for style over substance. Hey, Justin, if you don’t know what to do, go ask a bunch of experts. They’re called consultants.
———
Garth… funny as usual –paranoid yet muscular.
“we elected guys who promised stuff that they made up. Now they can’t pay for it.”
Looking around wtf are they spending $29B more on?
No infastructure I can see, some BS handouts to help JT’s international image, what am I missing?
There’s no point in getting too uptight until the facts are known.
They aren’t going to increase the inclusion rate effective immediately. It is way better to warn that a slight increase (say 60%) is coming down the road, say in 2018. That would get people to voluntarily trigger gains and pay extra tax rather than making a decision to just hold onto what they’ve got and defer the tax way into the future.
I doubt the dividend tax credit is going to be touched. Touching it would mess up integration. As most know, the reason that dividends are taxed favourably to offset the fact that corporate income tax has been paid prior to the dividend being declared.
If the federal government wanted to raise some additional taxes, they should just not allow anyone to designate a principal residence for 2017 onwards. Then growth up to 2017 would be tax free, subsequent growth would be subject to tax. That should cool down the housing market.
God millennials are like a bag of hammers. They want canada to shoot itself in the face just so they can get a good feeling and then go back to snapchatting each other.
The vote should be revoked from anyone under 30.
Happy Birthday Garth,
To put all the gloom and doom about Canada into perspective just consider the reaction of Chileanos when you mention you are Canadian. It’s thumps up and big smiles every time. We must be doing something right!
#36 Yyc not retired
So does it make sense to cash out any non- reg investments that have made money (at the current cap gain rate) and buy them back again?
—————————————-
No, but it does raise an interesting point. Will a change to the cap gain inclusion rate apply to the entire 2017 tax year?
If so, and you’ve made a gain this year, it’s subject to the new rate and it’s already too late.
Let’s be honest for once here guys. We had it good for too long a time. I was hoping we could squeeze 50% cap gains rate a while longer but no. This population is getting too educated for my liking. They may even push for 100% rate.
Regardless of what JT does, I will still vote for him again. Because he is attractive. This comes from a married man with kids.
For Ruben #35,
Sadly you sound like the typical lefty who hasn’t been that successful and it’s everyone else’s fault. So much akin to the Canadian way, punish everyone who has worked hard and reward failure. Everyone gets a medal, nobody loses.
I have worked hard and saved and given up much to be where I am today. I have paid more than my fair share of taxes, probably a lot more than you can imagine. Given that I have travelled the world I have see the benefits of strong social services. However, what really frustrates me is poor governments like we have now flittering away money solely with the intention of being elected. It has nothing to do with common sense and everything to do with perception and ideology. It’s amazing for how little votes can be bought.
Sure, tax the rich is this government’s clarion call, but it is people with means that take risks, invest, build things and create jobs.
No, regardless what the leftist hype says, governments do not create jobs, they create a climate for business to invest. More importantly, business exists to make a profit, not to create jobs. Canada is littered with a myriad of expensive boondoggles where government has gotten involved.
Should Mr Trump drastically lower tax rates, and most think he will, watch for business to migrate south and prosper. With those businesses will go jobs, many well paying jobs. With those jobs will probably go much talent, talent that wants to be rewarded for their efforts, not taxed till there is nothing left.
I really believe that in a few years Canadians will be counting the days until the next election so they can throw out this gaggle of clowns we have in Ottawa. Hopefully then we will see some common sense.
Your ribbon is in the mail.
Always keep thinking they would do something like the US if they changed it. Short-term gains taxed like ordinary income, long term gains at lower rate.
I liked Doug’s weekend Death post better :(
Trudeau should raise the inclusion rate to 75% for everything except real estate. That should be upped to 100%.
As boomers healthcare/homecare needs rise, we can either up all cap gains rates to 100% or we can do a means tested model based on assets.
We going to have to pick one or the other but in a democracy, we all know how things work.
Capital placed at risk is taxed differently for a reason – so people will continue to take risks rather than stuff it into a GIC. Why would anyone invest in companies, or farm equipment, or start a business if all gains were to be taxed equally with just showing up at work for a paycheque? Surely you are able to grasp that. Where do you think the jobs comes from? — Garth
#52 cramar
I don’t understand why the Feds don’t tax lottery winnings. Free money they are leaving on the table.
——————————————
They are taxed.
Half the money is creamed off the top before any of it is dispersed. The fact lottery winnings are tax free is the reason why the jackpots are so big. But the payout is relatively small. It’s a win-win for government lottery corporations. They know better than to mess with that.
It would be interesting to see how much money these possible tax increases on dividends and increasing the capital gains tax would raise given that most Canadians do not have a lot of investments nor do they have their own corporations.
Frankly, I suspect that the larger source of new tax revenue would come from a small capital gains tax on real estate.
To the crack team of eagle-eyed editors, note that the copyright date of this blog has not yet been updated to 2017.
#46 Steve-0 on 03.14.17 at 7:48 pm
—–
Garth is talking about the dividend tax credit for investing in exchange traded blue chip companies, not paying yourself dividends from your own company. You pay personal marginal rates on that income regardless if it comes as salary or dividends.
You need to do a little more research there.
Have you seen how expensive Depends are? Maybe I’ll just plant myself on the throne for a week instead.
But seriously, why doesn’t the government just have a basic, say, 30% tax rate for everyone, regardless of how much one makes? Is that so difficult?
I think they should slap the GST on house and apartment rental payments. Why should I have to pay GST on all goods and services I buy, but renters get off scott free? Time to make these freeloaders pay their fair share!
Wife and I are firmly in the T2 election campaign definition of a ‘middle class’ household and so far our annual total annual tax bill is within rounding error for the Harper years.
Add in the extra CPP that kicks in soon and we’ll be worse off. Sure we’re supposed to get a few extra bucks some day, but it is pennies on the dollar compared to investing it with my advisor, so in my view, it is a new tax.
As my wife is self employed and incorporated, we were planning to fund a maternity leave with some retained earnings and keep the business solvent while she reduces her work load. That will be a kick in the face if those earnings get taxed.
Ultimately T2, I’m disappointed. I would have thought a teacher would hold a higher regard for educating people rather than treating the like a flock of sheep.
#31 Cdn Mom on 03.14.17 at 7:21 pm
Selling the family home, and a rental house. RE agent meets with us tomorrow. Second rental will be sold next year. Not in Van or southern Ontario, so no huge gains.
Government just dicks us around through the RTA, rental income tax, cap gains, etc. No longer interested in lining their pockets to spread it around the world. Minimizing ALL tax by withdrawing as a consumer of much in Canada. Moving to the country to get away from bloated property tax.
I guess in order to make some decent money I’ll have to start selling pitchforks.
——-
Welcome to the club.
Love this blog, comments are hilarious.
It’s all satire right?
#24 rainclouds on 03.14.17 at 7:05 pm
http://www.businessinsider.com/rising-mortgage-rates-take-aim-at-the-housing-bubble-2017-3
………………………………………………………………………
Oh but not in Canada where house prices are triple the US, we mustn’t prick thou holy balloon
I just bought depends, but the walmart version because it was much cheaper. However still over $12 for a small pack, plus got diapers for the new born and size 1 at Costco because they were on sale $9.00 off. All said and done I spent $56 on diapers. P&G shareholders should be thanking me, don’t thank Treadeu for the new theme of tax the rich and blame the Asians for our housing crises.
So what would the new tax rate on capital gains mean for existing gains? Should a person lock them in now to establish what gains happened prior to the increase? Or will they just say it’s 2017 tax year so you’re SOL.
Re: #2 Ricky on 03.14.17 at 6:43 pm
Buy Rogers at least there’s a chance it will keep on rising in value. For Bell the chances unless the stock market in general takes a huge upleg are basically zero. Check out all the dsl and cable companies down in America in the past. The rule of thumb is always sell the dsl companies and buy the cable companies. 4K television will sink Bell and make Rogers prosper.
#73 KLNR
Love this blog, comments are hilarious. It’s all satire right?
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Yours is.
https://www.nytimes.com/2017/03/12/world/canada/torontos-housing-boom-refills-empty-nests-driving-prices-even-higher.html
There may be several reasons more Toronto-area homeowners are not doing what the economics textbooks predict. Some analysts believe that parents who might otherwise sell, but are staying put to accommodate their adult children, are a significant factor.
An unusually high 56.5 percent of people in their 20s in the Toronto area still live with their parents, compared with 42 percent nationwide.
How long did it take to pit against each other who make gain on stocks vs real estate vs lottery vs etc.?
You fools want to save your own ass by offering promptly someone else’s in return.
The laughing politicians will take both offer and you deserve it.
Bunch of morons.
#2 Ricky,
You’ve “decided” on arbitrary amounts to assign to investments. You don’t “decide” on amounts you calculate them. To paraphrase all that Garth talks about your allocation should be roughly as follows:
20% preferred share ETF
20% bond ETF
20% US equity ETF (preferably inside a US cash account)
20% Canadian equity ETF
20% International equity ETF
In the simplest for you can achieve this with one ETF per category. Or most self directed accounts will provide model portfolios with suggestions of how to achieve this.
Just keep in mind that each trade costs you money.
And so some people who are doing work on the side for cash, skipping out on taxes, the gov has a tool for that.
They will be scrutinizing credit/debit purchases of building materials to determine who is doing contract work, by using fancy software to parse the data handed over by the banks. If you paid cash for materials, then you would be untraceable.
Enter stage right – the global war on cash. Once cash is banned, those cash workers are no longer. And that is one of the arguments the gov will use to justify it, along with “only bad guys use cash”. But the main reason will be corralling is all into financial institutions, where your money is held hostage, and you seek permission to access it (need debit or credit card), and the. EVERY transaction is scrutinized.
If you don’t think that is an issue, and you say “well I’ve got nothing to hide”, then eat your words and do not be surprised if that data is used against you one day, as a means to make you bend somebow, even if you haven’t done anything wrong.
#80 capital losers
And then some!
God forbid if society lost electricity for a month, it would be a blood bath out there!
Why would anyone invest in companies, or farm equipment, or start a business if all gains were to be taxed equally with just showing up at work for a paycheque? Surely you are able to grasp that. — Garth
—-
Because investments might get you a higher rate of return than compared with a GIC. That is the reward of the risk. Thats why we invest in the first place (higher returns).
50% capital gains never scared us off so why would 75%? Not going to happen. Plus with an aging demographic, we need the money. Otherwise wrinkles gonna be lying in the streets.
Re: #36 Yyc not retired on 03.14.17 at 7:26 pm
Absolutely, because if the tax isn’t regressive then the odds of the tax being March 22 or this calendar year are at least 99 percent so why not sell and buy back before budget day as you don’t have much to lose? Remember only sell winners not losers (by mistake) because when you sell and buy back losers within 30 calendar days you trip the superficial loss rule.
Garth,
I always thought the rationale for a 50% inclusion on capital gains and dividends was beacause the corporations already pay tax on their gains at the corporate tax rate which is close to half the personal rate. So gains have already been taxed at half. Now we want to tax them again? Tax on tax on tax. It doesn’t matter how many layers of tax you chop it up into. It all comes out of our pockets and/or chases capital (and jobs) out of the country.
#72 IHCTD9 at 8:47pm.
“Welcome to the club”
Yes, unfortunately, I have to agree…I’m done with supporting our confiscatory governments(provincial and federal). Starting to realize there are a lot more Canadians out there who feel the same way.
How did we come to this…?
Toronto housing will ‘come down with a bang’: Stephen Jarislowsky
http://www.bnn.ca/toronto-housing-will-come-down-with-a-bang-stephen-jarislowsky-1.696204
Stephen Jarislowsky, the billionaire investor and founder of Montreal-based Jarislowsky Fraser, is issuing a series of warnings on the future of Canada’s economy, ranging from the ill-effects he sees if Finance Minister Bill Morneau hikes capital gains taxes to the overvaluation he sees in the nation’s hottest housing market. Below, a selection of thoughts Jarislowsky shared with BNN.
#79 steerage steward on 03.14.17 at 8:58 pm
yup. at this rate the kids will just stay in the house and divide it up or build semis or triplexes on the lot when the parents pass. too bad realtors no more houses for you to sell.
As always the lefty loons have no forward vision.
IT contractor dr tax. At the same time they open the flood gates to temporary foren workers driving down rates.
Now what do you think will happen when Trump slams the door on H1B visas. Yep huge demand in the USA will need to be filled..can you say TN1
Canada Brain Drain 2.0
#80 capital losers
How long did it take to pit against each other who make gain on stocks vs real estate vs lottery vs etc.?
You fools want to save your own ass by offering promptly someone else’s in return.
The laughing politicians will take both offer and you deserve it.
Bunch of morons.
_____________________________
haha, so true
This one is for you Smokie.
http://www.dailymail.co.uk/sciencetech/article-4314038/Does-Donald-Trump-s-election-live-simulation.html
If what Garth says proves true I will stop reinvesting my dividends try to spend the money. It won’t be easy as I’m a born skinflint but I’ll try. Foreign travel beckons.
Garth.
Your points are well taken and understood. I hate to be in a highest tax bracket but realize current bunch as liars…..
But I would pay a higher tax and hopefully live in a peace of mind instead to be ruled by a party whose head was a hate monger and was hell bent to divide the nation and citizens through politics of hate.
I want my kids to have an environment where there is a genuine and mutual respect for all citizens of great canada, otherwise 3rd world countries would be no different.
Love and peace for all.
I’ve seen a couple of documentaries and read some articles on the large numbers of adults who are single in the industrialized world and Canada is leading this.
This means that households that previously included two adults are now two separate households who each own or rent their homes.
Could this not be yet one more factor in our housing bubbles since most of these singles apparently prefer to live in cities as opposed to suburbs or rural areas?
#2 Ricky
If you are young.
10K each: BCE, TD, ALT, AGU, ENG, ENF, FTS, T, TRP, RY, AQN, BNS, BIP.UN
5K each: REI.UN +/- DRG.UN, +/- D.UN, +/- BEI.UN, NVU.UN
The rest buy BNS, transfer to USD side of account (Norbert’s gambit). Sell.
US$ split in equal portions:
VOO, SCHD, SCHB ( maybe add 20% of SCHH)
Good article for you: http://seekingalpha.com/article/4049850-dividend-growth-couch-potatoes
Bad advice. — Garth
O’Leary heaps praise on Brad Wall and the Province of Sasquatch. Quick Albertans, raise your hand if you are pulling up stakes and moving East of the 4th Meridian this year.
Didn’t think so. We’ll be better off here. Pilsener is still available locally.
Kev’s funny.
Doctor tax will not be a reality.
Only people to pay high taxes are employees.
Doctors Lawyers can fake-hire their spouses as ‘Manager’ to save taxes. I call them thieves, not tax avoidance.
#90 Smokey man
Trump is not banning any H1B visa. He just run around the issue(delay processing times etc), but number of H1Bs issued, by the end of year, are the same. Trump style.
#90 Smoking Man on 03.14.17 at 9:15 pm
As always the lefty loons have no forward vision.
IT contractor dr tax. At the same time they open the flood gates to temporary foren workers driving down rates.
Now what do you think will happen when Trump slams the door on H1B visas. Yep huge demand in the USA will need to be filled..can you say TN1
Canada Brain Drain 2.0
——-
Can you imagine how many young professionals will flock south if USA adopts a merit based immigration system like Canada?
Vancouver will empty of the renter professional class. So maybe Trudeau will negotiate for keeping prisoners in Canada when he is forced to renegotiate NAFTA.
Any new FTA deal must allow for the free flow of people between the 2 countries (like EU).
Never fails to amuse me when the statists think raising taxes will not have any secondary effects, such as people not working so hard, or going underground (cash economy), or just leaving the country.
It’s hard to believe people running a country can’t think beyond 1 step.
Meanwhile, Trump just made a complete fool of MSNBC and his detractors, he’s about 10 steps ahead of them, hahaha . This is going to be fun to watch for the next few years.
I’m still hoping they go ahead with some kind of idiotic minimum income, I could use a check each month to help pay travel expenses. The loonie is making things expensive outside of the Great White North.
I doubt we’ll see much on the home office front. If you make claims for mortgage interest, heat, electricity, phone,etc., those are operating costs. CRA draws a line between those and capital expenditures – claim those, and you’re potentially exposed for a discount on the primary residence exemption. The difference now is more likely to be enforcement, just like with the rest of the primary residence exemption.
TPTB?
Can you give us a hint when you come up with a new initialization? Haven’t seen that one before. Still can’t figure it out
I finally figured out the big picture, made sence of things that dont make sence in todays world. I’ve had idol time of late to reverse engineer.
Do I share it free on here for free. Or do I revise my book and try and make a buck now that I’m unemployable. I’ll let you muts decide.
What will this alcoholic do?
Years ago before I lost my mind. Shit a random dr visit will do. About 10 years ago I had a gig at RBC capital markets. Had to build a system that would reconcile all derivative trades from 32 systems to the GL.
They tried for 2 two years with the smartest of the smart. Me building a good reputation they asked me to take a shot. They spent millions with the schooled with no luck..
Took me 3 months. I’m the best.
Why am I unemployed. No gig. Got a big mouth not in the best interests of the Devos crowd.
The Devos participants Idiots who have no idea what they are up against..Rich man guilt exploited.
Why dose saving the world and traders risk sheets always end up on my lap.
Because god loves me. He’s such an ass. And lord I don’t belive in you anyway.
#101 traderJim on 03.14.17 at 10:22 pm
Never fails to amuse me when the statists think raising taxes will not have any secondary effects, such as people not working so hard, or going underground (cash economy), or just leaving the country.
—————————————————-
That’s happening right now at my company. They can’t get any of the senior guys to work overtime since their marginal rate is already in the mid 40% range. Projects are now taking longer because of it.
They’d be willing to do the work if they got 1 and a half vacation days for each day worked (because the government hasn’t yet figured out how to tax vacation time), but the company won’t go for it.
It does make me wonder why all the doctors don’t just close their offices in August and go on untaxed vacations and let T2 take care of the sick.
It’s time people paid their fare share!!!
Bahahahahaha
This country is done.
Revolution in 6 years…
#35 Ruben on 03.14.17 at 7:23 pm
So you’re a failure and it’s everybody else’s fault?
Is it just me, or does any one else see the T2 Idiot as a scamming, corrupt, liar, who is trying to destroy Canada from its core? Thoughts?link:
I hope this link shows just what a puppet the current “stooge puppet , failed actor /pot Headed Snow boarder” really thnk s about Canada.
Or just search the link yourself: you will be pissed, and justifiably so!
Justin Trudeau: Just Another Soros Puppet | The Millennium Report
themillenniumreport.com › 2017/01 › ju…
One thing I am a little surprised about is that my truck hasn’t held it’s retail value better with the decline of the dollar. An equivalently outfitted new truck of the same model has gone up in price almost $20,000 since the Canadian dollar went from over $1 to $0.75, yet the resale market seems unaffected. Sure the new one has a bit more horsepower, but other than that it is hard to tell them apart. The graphics are different on the stereo/GPS thingy. This truck when I bought it in 2011 was $72,000 with the diesel upgrade. It lists now for over $90,000. And they say there is no inflation. Of course nobody ever pays list but still, this is silly. Diesel trucks are on their way to $100,000 per each. How can the farmers who rely on them for their living afford them? Ok, they don’t have to buy the Laramie but still. This stuff is getting expensive.
DELETED
#52 cramar
I don’t understand why the Feds don’t tax lottery winnings. Free money they are leaving on the table.
——————————————
They are taxed.
Half the money is creamed off the top before any of it is dispersed. The fact lottery winnings are tax free is the reason why the jackpots are so big. But the payout is relatively small. It’s a win-win for government lottery corporations. They know better than to mess with that.
——————————-
They did try to tax lottery winnings in the late 80’s I believe in Saskatchwan only? Not sure…..anyway believe it or not this was the only time citizens got upset and stopped buying tickets and the govt subsequently had to repeal that error.
They did try to tax lottery winnings in the late 80’s I believe in Saskatchwan only? Not sure…..anyway believe it or not this was the only time citizens got upset and stopped buying tickets and the govt subsequently had to repeal that error.
Canadian Snowbird Update:
America’s biggest retailers are closing stores by the thousands…
Be mindful when considering American REIT’s with commercial properties.
#101 traderJim on 03.14.17 at 10:22 pm
I’m still hoping they go ahead with some kind of idiotic minimum income…
—–
I as well. I’ve lived cheap my entire life so I could eliminate debt, and have adequate cash to save and invest – it’s just lifestyle now.
I’ve done a lot since last year to reduce my taxes, and a good chunk of that effort is modifying my consumption habits downward even more, and working less (as you noted).
If mincome is a “success” it’s early retirement for me.
Sell the rental condo last year and lock in the capital gain rate (screwed over my tenant as I never raised his rent, and new owners aren’t as nice…but I’m sure he voted Liberal, so all good). CHECK.
Sell all my stocks which showed a capital gain. CHECK.
Keep the RRSP, TFSA, and RESP filled to the brim. CHECK.
Took off for the Caribbean instead of working in February. CHECK.
Retire in my 40’s, shut down my business and let my one and only employee go (who I know voted liberal)? That’s the last and final CHECK!
Up goes the capital gains tax inclusion rate, from 50% to 75%.
the new taxes may not produce any net gain in revenue
the employees at Revenue Canada can analyze the existing revenue: number of people claiming capital gains broken down by province and by income and once the new taxes are in place they can analyze them. I mean Revenue Canada has a lot of people who can do sql queries.
Justin Trudeau, 2019: I know I promised to take the load off the middle class by taxing the 1% but it hasn’t worked out. They left because they could but you can’t so i’m taxing you.
http://www.macleans.ca/politics/ottawa/the-truth-about-justin-trudeaus-tax-cuts/
Wow, an unironic “won’t someone PLEASE think of the rich people” post. You gotta be kidding…
#94 Doctor on 03.14.17 at 9:23 pm
I want my kids to have an environment where there is a genuine and mutual respect for all citizens of great canada, otherwise 3rd world countries would be no different.
Love and peace for all.
——
I hate to break it to you, but haters gonna hate no matter who is running the show. I know a few folks that I’d say could be a little more respectful of some other people – they’re no different now than they were when Harper ran the show.
In Canada, increased taxation does not get you much of anything – sure as hell not going to buy you “love and peace for all”.
Maybe there will come a day when philosophical idealism is available from government in exchange for increased tax dollars. You can always hope right?
Anyway, until then – enjoy your reduced income, and lower standard of living.
Well his tax return is out. Trump pays a lot of taxes. $38 Million in 2005. Roughly a 25% tax rate. Higher than Romney, Sanders and many other political figures. The guy is truly a Billionaire. They tried to say that two properties he sold to Russian Billionaires in 2005 show him to be in bed with Russia. This fake news is so pathetic.
Publishing a 12-year-old tax return is pathetic. — Garth
And I thought the USA was turning into a Socialist hell hole! I guess Canada has us totally beat (not to mention Europe).
I’m interviewing for a position in the US next week. Good timing.
Happy Birthday Garth.
As a follow up you once chided me to marry the girl.
So I did 25 February 2017
All the best from the both of us!
Mayor John Tory is “deeply concerned” about housing affordability in Canada’s largest city, where the average price of a detached home has pushed past the $1.5 million mark.
https://www.thestar.com/news/city_hall/2017/03/13/mayor-john-tory-to-meet-with-housing-planning-and-financial-experts-to-find-ways-to-cool-the-overheated-housing-market.html
“Why would anyone invest in companies, or farm equipment, or start a business if all gains were to be taxed equally with just showing up at work for a paycheque?”
—————-
Give us a break. You’d still run a business regardless of the tax rate. There is a list of reasons as long as your arm to run a business, and tax advantages come at the bottom of the list.
The Laffer curve was tested in Scandinavia & found consistent in that as exorbitant tax rates were lowered total government income increased. 50% tax rate seems to be around the top of the bell curve. I guess the lil potato gonna try to squeeze 54%.
Its tough to get those experienced skilled workers out & leaving home when TSHTF. Sometimes I need the best, but the best are always busy, paying big taxes,& any spare time the wife is angling for a break from the kids. At a big marginal tax rate the marginal rate of return of keeping the home front content increases substantially.The only surefire remedy I know is the dull clink,clink, maples make in the pocket.
You quote 286,000 high income earners in Canada.
But these are people who are forced to declair their income and thus have to pay taxes.
But, there are alot of people earning money underground who make more than this. They are home renovators, contractors, tradespeople, home flippers etc. They often work for cash and they will not be affected with this budget. I believe the numbers in this group are greater than the 286,000.
This is who the government should target.
Not the honest people.
“Publishing a 12-year-old tax return is pathetic. — Garth”
True. Publishing any tax return is pathetic. Some things deserve to stay in the bedroom. If the IRS is satisfied, we don’t need to “look up his skirt”.
Let’s assume for a minute that the army of accountants Trump employs personally, the larger army of public accountants he has to hire for his listed companies, and all the IRS goons that were on the case, arrived at what they agreed was a legal interpretation of the business and the taxes owed. What, Garth, do you expect to learn from seeing Trump’s tax returns, other than the fact that he made a lot of money?
Do you think they may show he avoided or delayed paying taxes according to the law? You advise that. Do you think he may have written off loosing assets? You advise that. Do you think he may have taken advantage of every tax loophole available according to the law? You advise that. What do you think Trump’s tax returns are going to teach you? Probably that he isn’t as rich as he claims, and that he has paid more in taxes every year than you will ever be worth. There isn’t much more to see there or he would be in jail.
Folks, we must assume Trump has been compliant with US tax code or the IRS would have bent him like a stick. Innocent until proven guilty.
It’s time for people to stop trying to get reality to conform to their delusions. Yes, we all see the world through delusions. Is the immigrant invasion of Europe “openness” or “cultural suicide”? Well, it’s both, and how you see it depends on your viewpoint.
Ask any Native American how immigration worked out for them and you will see quickly that there is more than one way to see anything.
#30 AB Boxster on 03.14.17 at 7:20 pm
Almost bankrupted the country in the 70s?
I guess your memory is better than the actual stats. See the graphs at the bottom.
http://news.nationalpost.com/news/canada/canadian-politics/graphic-50-years-of-canadian-debt
It must have been hard for the 70s Liberals to come down off that early 60s Conservative debt mountain. Much like they did again in the early 2000s after the Conservative spend-a-holics of the 90s.
#103 Frito on 03.14.17 at 10:28 pm
“TPTB?
Can you give us a hint when you come up with a new initialization? Haven’t seen that one before. Still can’t figure it out”
The Powers That Be.
Note to Garth, Smoking Man, LaughingCon, James, Doug, Ryan, etc…
I am currently writing a screenplay about the GreaterFool blog, the personalities that populate it as well as the events (in the Canadian real estate industry, the wider economy and events on this blog) that have shaped the GreaterFool community over the past 8 or so years. This will include the following character developments:
-Smoking Man’s progression as the premier cyber antagonist/troll within the GF community and the wider internet, his swashbuckling, ballsy, autodiadactic penetration of the Forex market that made him the drunken multi-millionaire smokestack he now is, his one-of-a-kind persona and writing style, and finally, his slow, inevitable descent into the morass of insanity that ultimately befalls all men who defiantly and unflinchingly stare head-on into the abyss
-Garth’s progression from business commentator and innovator to failed politico to real estate permabear to celebrity real estate writer to infamously chiseled, wavy-haired, hog-riding, hairy-chested, aging sex symbol. (The plot will extrapolate into the future and feature Garth as a populist tribal real estate warlord ruling over Caledon, ON after the big collapse, with a harem of Amazonians who snuff out any competition to his fiefdom)
-James as chief provocateur to Smoking Man, only multiple rungs lower on the intellect ladder, with heart of a lion and knuckles of a street fighter
-LaughingCon as premier court jester and town crier rolled up into one, chief antagonist of realtors with a vocabulary limited strictly to eight venerated words
-Doug and Ryan will make guest appearances as Garth’s questionably loyal henchmen / enforcers
The plot is still a work in progress. I have the main trajectory and narrative in place, I just need to flesh it out. I don’t want to reveal too much on here for fear that another blog dog may steal the ideal and run with it.
As soon as I’m done I ‘m heading to L.A. to pitch it to the big movie studios. If none of them bite I will have to resort to crowdfunding on this blog, so any dogs with deep pockets I kindly ask you to keep an eye out for my future pitch on here — especially you, Garth and Smoking Man.
I just need of a title for this movie — I welcome your input, blog dogs. Just post a comment below.
JaketheSnake
PhD Real Estainment
81 @josh in calgary.
All you need is a global all world etf, for most.
I am OK with giving money to help people who need it.
I despise giving money to idiots to manage the transaction.
My wife and I will have a $400K tax bill for 2016. Yet the foodbank is begging for money…the homeless shelter is begging for money…etc. etc etc. Talk about failure of “trickle down” economics….
That billionaire from origins unknown will get a few million dollars thought. And foreign women’s reproductive rights got a blank cheque for $600M that will be unaudited. I support the effort (my wife runs a charity that directly supports women’s health in Uganda), but don’t trust the $600M will go anywhere useful. pay off a few lobbyists…a couple of photo ops…no proof that one woman received better health care…
Did those vets get paid yet?
The government has proved they cannot handle the money to any measurable gain.
Always vote for less government.
My family was here from the US. Their young GP is Canadian.
>> “prevent foreign dudes from flipping properties and avoiding capital gains tax (which is a total non-event)”
It shouldn’t be a total non-event to prevent *ANYONE* from flipping properties and avoiding capital gains. It’s disgusting to see housing turned into a commodity.
RE: #108 Spectacle on 03.14.17 at 10:50 pm
No, I think it is just you.
BTW your site touts Pizza gate as real, everything else seems to be fake news.
Maybe you need to read more…..
https://en.wikipedia.org/wiki/Pizzagate_conspiracy_theory
What is the valuation date on a real estate sale? All subjects were removed in February, but sale doesn’t complete until after budget is released. Would 50% capital gains inclusion rate be used or new rate, if increased?
One solution is for separation of Canada Western province’s to form a new country. Let’s face facts we are ruled in this great country by the Eastern interests and it will always be this way.
Sometimes I get the feeling that a lot of Canadians vote Liberal or NDP simply because they hate everyone more successful than them and the libs and dippers usually promise to punish successful people with higher taxes.
I Still don’t believe the libs are stupid enough to raise taxes on capital gains. This is not the communist worshiping 70s after all!
But if they do look on the bright side, since the economy would sink like a stone and bring down the Canadian dollar with it what you would lose in new taxes you’d more than make up with the exchange rate if your money is mostly (as it should) invested in US denominated assets.
Hide your money.
Support the underground economy.
Hoard cash, and use it to pay for expensive stuff when you really need it.
Taxation is theft.
http://www.libertarian.co.uk/lapubs/polin/polin044.pdf
Hi Garth, what your thoughts on the following?
http://www.financialpost.com/m/wp/personal-finance/mortgages-real-estate/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/how-lenders-are-sidestepping-canadas-mortgage-rules-with-bundles-of-debt
http://www.cnbc.com/2017/03/14/janet-yellen-fed-stealth-rate-hike-this-year.html
Everything I read leads me to believe that Toronto and Vancouver are headed for a hard landing. How could it not with the economy in shambles, the government increasing taxes, interest rates going up and a heavily indebted population. How long can the highly leveraged weather a perfect storm?
I guess they’ll figure out how deep a cut a leveraged sword can cut.
Re upping the taxation on cap gains and Nixin the dividend credit
Good luck canadian based companies. What’s the point of investing for preferential treatment when I can just aim south for a better business environment for profits?
I remember the csc saying the reason the dividend tax credit was established with to prevent the double dipping of AFTER TAX cash. The whole capital gains inclusion rate was because you actually had the gonads to put your money into a company.
I hope valiant is looking at morning after pills for a hangover
#81 Josh- just follow the couch potato method for investing……
#115 Melvin- Instead of shutting down your business and letting your 1 employee go…sell your company to him…
Publishing a 12-year-old tax return is pathetic. — Garth
Do you mean MSNBC is pathetic for publishing it?
Of course, everyone suspects Trump himself leaked the return, which would be genius if true.
Now every time the media bring up his tax returns he can point out he paid more absolute taxes, and a higher rate of tax than the media companies themselves paid.
Not to mention a higher rate than Obama or uncle Bernie.
The only pathetic part I see is how the media, in their desperation to make Trump look bad, play the fool once again and do exactly what he wants.
I wonder if they will ever figure out that he is just a lot smarter than they are?
By the way, they say all’s fair in love and war, and the Donald is most definitely in a war.
@#127 NonplusPartisan
Lets see,
Owns diesel truck. Check
Supports Trump. Check
Anti Immigration. Check
Pray tell.
Are you from Alberta?
P.S. Trump sprews lies
“I’ll show my taxes when I’m good and ready”… 2005?
” Crooked Hillary. I’m gonna invetigate her after I’m elected. I promise you that”. …Nothing yet?
” I’m gonna build a big beautiful Wall and Mexico is gonna pay for it” ….Good luck with that.
” We are gonna make our military forced so good no one will fight us because we’ll win”…… Vietnam?
A braying donkey spews more sense from both ends of its body than that buffoon does on a good day.
Impeachment before his mandate is up if an alzheimers diagnosis doesnt drum him out of office first.
P.S.
Never mind the Trump deep Russian connections. His political advisor (aka. his son in law) has signed deals worth hundreds of millions with the Chinese.
No conflict there.
You “deplorables” are just as narrow mindedly focused on ignoring reality as the anti Trumps are in reporting it.
@#130 jake the Snake
“chiseled, wavy-haired, hog-riding, hairy-chested, aging sex symbol. (The plot will extrapolate into the future and feature Garth as a populist tribal real estate warlord ”
********************************************
Sorry.
Its already been done with Sean Connery in the lead role.
https://www.google.ca/url?url=https://www.youtube.com/watch%3Fv%3DkbGVIdA3dx0&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiynJ3vwtjSAhVE22MKHQsRAoIQyCkIGTAA&usg=AFQjCNFuNkdYue1hh8cHxxZnmeoeHR5lpQ
You will be sued for plagarism
#114 IHCTD9 on 03.14.17 at 11:06 pm
#101 traderJim on 03.14.17 at 10:22 pm
I’m still hoping they go ahead with some kind of idiotic minimum income…
—–
I as well. I’ve lived cheap my entire life so I could eliminate debt, and have adequate cash to save and invest – it’s just lifestyle now.
I’ve done a lot since last year to reduce my taxes, and a good chunk of that effort is modifying my consumption habits downward even more, and working less (as you noted).
If mincome is a “success” it’s early retirement for me.
————————————-
Ditto… It no longer is worth it to try and succeed anymore. They just keep taking more the whole while Lefties who “Aren’t getting their share” say “Tax em more”.
I don’t work overtime anymore as I just give 40% back to the Government. Why bother?
Hoping the idiot Liberals get voted in again in Ontario and Federal. Burn this sucker to the ground.
I am done working in 5 years at 49 ..No Debt..and I own my Home. Should have a nice nest egg by then too.
I hope they have a “Minimum Income” in Ontario by then. I will make sure to have a $0 income and collect until it blows up.
Why buy the Cow when you can get the Milk for Free…
Dear Garth,
When you said “But there’s more. It has to do with next week”, are you implying investors are bailing out of the Canadian assets just because T2 is increasing the Capital Gain Inclusion rate?
Please, could you explain to us how the exposure to Canadian assets is different from the exposure to any other assets? The capital gain changes will affect not just Canadian but any kind of assets; so, I don’t see why investors would be baling out just of the Canadian assets?
Thanks,
Yanniel.
Neither implied nor stated. — Garth
Well here it is….I still won’t believe it until I see her raise the rate…right into a recession.
June reversal?
Taxing IT folks and Doctors would level the playing field as salary folks in this country are screwed to the max with hits at payroll and very few tax strategies left for them to use.
Basically risk adjusted tax on capital gains at 75% and interest income (100%) is now the same. Why even bother taking the risk in the market if real rates went higher? This is a huge impact that should be discussed.
“So we beat on, boats against the current, borne back ceaselessly into the past.”
― F. Scott Fitzgerald, The Great Gatsby
The central bank controls the government. You are all indentured servants. This is true for any country. Any nation that does not comply is invaded.
Those in power rule through fear. They create and perpetuate several myths: Scarcity, Competition, Fear of Death, etc…
There are only about 10 objections to the idea that we don’t need money. All of these objections are utterly ridiculous. THE GREAT RESET IS COMING. I am proud to be a part of it.
#147 Gonkman and IHCTD9
I think there are a lot of people with our mindset, and there will be more as taxes continue to rise.
One thing I’d clarify though, is that I have not given up on working and producing entirely, and I wouldn’t recommend anyone do that (lying on a beach forever would be hell imho).
As you say, you just need to be smart to set yourself up in a tax efficient way (shame we have to think this way, but that’s the system, so go with it.)
So I, for example, work quite hard at doing things like building my own home. I am learning now how to build cabinets as well (so easy that I might start a little sideline business there).
I think most independent minded folks will want to and be able to do all those kinds of things which are both enjoyable and also ‘make money’ by not spending it.
And I am not living like a hermit. Quite the opposite. I travel 5 months a year. I usually rent apartments by the month when I travel, which keeps costs way down. Long trips keep my airfare costs down and time spent in airports at a minimum. Of course staying in one place for a month or more at a time means you get to really know a spot and perhaps take a language course or some other activity that is usually very inexpensive. You get to shop at local shops, make meals at home from time to time, and learn where to get things for non-tourist prices.
Most places now have clubs where locals meet to ‘exchange’ language lessons, also great way to meet people. So you can learn new skills, take photography lessons, etc etc.
So my theory is that if you do it right, you can have a much better lifestyle than being a slave to an employer and the CRA, and give up nothing.
Now, if the government decides to give me back some of what I paid in taxes over a few decades, well hell, I’m not going to say no.
I’ve always said, the biggest problem for socialism is the failure to recognize basic human nature. If you take from the most able and give to the most needy, the incentive is to stop appearing to be able and to become needy.
That’s not just theory, that’s what happens in socialist economies (see Venezuela) and it’s unavoidable.
That’s why the closer a country comes to socialism (or any form of collectivist/statist economy, no matter the label attached) the more unworkable it becomes.
I’m also with you Gronkman on the liberals. I also actually hoped Hillary would win, to hasten the inevitable collapse. It won’t affect me either way, but my nieces and nephews will be better off if the debt we saddled them with evaporates and they can start with a clean slate.
It’s going to happen, so better to deal with the pain now rather than later.
132 Joe Schmoe on 03.15.17 at 1:25 am
cognition and linguistics
https://georgelakoff.com/blog/
================
fleecing metaphors/ cream rises to the top?
Tuesday, March 14, 2017
U.S. Navy Admiral and Eight Other Officers Indicted for Trading Classified Information in Massive International Fraud and Bribery Scheme
Retired U.S. Navy Rear Admiral Bruce Loveless and eight other high-ranking Navy officers are charged in a federal indictment with accepting luxury travel, elaborate dinners and services of prostitutes from foreign defense contractor Leonard Francis, the former Chief Executive Officer (CEO) of Glenn Defense Marine Asia (GDMA), in exchange for classified and internal U.S. Navy information.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Including today’s defendants, a total of 25 named individuals have been charged in connection with the corruption and fraud investigation into GDMA, a defense-contracting firm based in Singapore. Of those charged, 20 are current or former U.S. Navy officials and five are GDMA executives. To date, 13 have pleaded guilty while several other cases are pending
“The defendants in this indictment were entrusted with the honor and responsibility of administering the operations of the U.S. Navy’s Seventh Fleet, which is tasked with protecting our nation by guarding an area of responsibility that spanned from Russia to Southeast Asia and the Indian Ocean,” said Acting Assistant Attorney General Blanco. “With this honor and awesome responsibility came a duty to make decisions based on the best interests of the Navy and the 40,000 Sailors and Marines under their care who put their lives at risk every day to keep us secure and free. Unfortunately, however, these defendants are alleged to have sold their honor and responsibility in exchange for personal enrichment.”
=========
“Forced arbitration is shielding Wells Fargo from being held accountable for harming its customers, directly and indirectly,” said Brown. “Wells Fargo’s customers never agreed to sign away their right to fight back against fraud and deceit. We need to give customers back their ability to seek justice in court so they can be made whole again.”
include “gag clauses” that bar “students and former students from sharing information about their complaint – or about the complaint-resolution process – with anyone.”
Hensarling compares CFPB to a tyranny
House Financial Services Committee Chairman continues assault on CFPB
February 20, 2017
Ben Lane
Repealing Title X would completely abolish the CFPB.
Is it “Tyranny” when you stop a bank from commiting fraud on it’s customers?
https://www.brown.senate.gov/newsroom/press/release/brown-statement-on-plan-to-gut-wall-street-reform
From at least 2011 to 2015 Wells Fargo opened millions of fraudulent accounts – two million bank accounts and 565,000 credit card accounts – in its customers’ names. Now Wells Fargo is using the forced arbitration clauses it tucked away in the fine print of contracts customers signed when they opened legitimate accounts to block them from suing over the fraudulent accounts.”
=============
“A Market-Based Proposal for Regulatory Relief and Accountability” — Remarks by FDIC Vice Chairman Thomas M. Hoenig, Presented to the Institute of International Bankers Annual Washington Conference
March 13, 2017
https://www.fdic.gov/news/news/speeches/spmar1317.html
Top US regulator backs Trump’s Glass-Steagall push
FDIC vice-chair Thomas Hoenig throws weight behind banking separation
MSM says Wilders going to big loser today. We will know soon if the term “Dishonest Media” fits.
Time for the plebs to join the rank and file.
No innovation, no investment, no future for those young kids. If you want to be entrepreneurial, then please go south.
Garth,
Things are hard to analyse with rational mind in this corrupted land called Canada, as it is controlled by special interest groups and followed by stupid people. Give you a quick example, today’s MSN has a piece of shit with this title: Canada home resales rise in February: CREA (http://www.msn.com/en-ca/money/topstories/canada-home-resales-rise-in-february-crea/ar-AAonJou?li=AAgh0dA), but when you read the fine letters, you will find this:
The industry group said actual sales, not seasonally adjusted, were down 2.6 percent from February 2016
What a laughable and terrible thing! Things like this are everywhere on this land.
The special interest groups control this country’s fate, it also control people’s mind.
#132 Joe Schmoe on 03.15.17 at 1:25 am
I am OK with giving money to help people who need it.
I despise giving money to idiots to manage the transaction.
____________________________________________
Yep, years ago after it came to light that the “proceeds” passed on to the needy by all these fundraisers and charitable organizations frequently amounted to about 5% of the total collected – with the rest essentially providing obscene incomes for marketers and administrators – that was it. I shut it all down, and these days I’m deadly quick with email deletion, un-subscriptions and hang-ups.
I have a couple that I give to – they all have boots on the ground, have been around for decades, and are very meticulous with documenting their results. This will be the extent of it from here on in.
#127 Nonplused,
and what do you think you are doing inserting reason into an ideo-political catfight?
F35
Gen. Tom Lawson: The Super Hornets will be a big, bright object on the radars of Russian early-warning aircraft. With the F-35, the Russians will not see them until they are too close
Gen. Jean Boyle: talking about the F35 and the Super Hornets: We should move forward with an open competition. Put them up against each other and make a decision
Wayne Strong: talking about Justin Trudeau’s decision to buy Super Hornets: the decision is not in the best interests of our current and future fighter pilots. My son happens to be one, stationed at Cold Lake. The RCAF personnel are vary much against the procurment of the SH’s.
http://mcaf.ee/lc4unx
( the original url was too long )
#108 Spectacle on 03.14.17 at 10:50 pm
Is it just me, or does any one else see the T2 Idiot as a scamming, corrupt, liar, who is trying to destroy Canada from its core? Thoughts?link:
I feel the same way.
I think he hates us.
The Chickenshit Club: The Justice Department and Its Failure to Prosecute White-Collar Criminals Hardcover – July 11, 2017
by Jesse Eisinger (Author)
#1 New Releasein Banking Law
by Jesse Eisinger
ProPublica, March 12, 2017, 6:22 p.m.
#127 Nonplused,
I think the bigger point with people wanting Trump to disclose his tax returns (as other past presidents have done) is so they may see his potential conflicts of interest. After all, we already know his idea of a “blind trust” is to let his children run his business and “promise” not to talk to him about it. It’s an issue of establishing trust, not so much establishing how much he pays in taxes.
This government has two more years, then much of this non-sense could be reversed. The deficit is not that high compared to what Mulroney was facing, so a fiscally conservative government could bring it back into balance and cut taxes once again and it won’t take a decade to achieve that.
Exodus 20:17
#143 OMERS
Some people are willing to quibble about everything. You said:
“#81 Josh- just follow the couch potato method for investing……”
I checked it out. That’s the EXACT same thing I said. I said buy 5 ETFs. They say 3. I looked at the 3 they picked and they contain almost the exact same thing. You want to do it with 3? no problem. I’d quibble that you’re missing out on the higher rate of return that preferred offer and that the government bonds suggested are likely to go down in value as rates rise, but whatever. For your average investor that’s looking to keep it simple it’s fine. I’m actually happy to find the XAW etf they recommend because it contains virtually all of the etfs I use and in roughly the same proportion. So it’s an easy one stop shop for your US and international exposure and probably saves on trading fees (although slightly higher MER). The one thing it’s missing is it’s not DRIP eligible and you can get some of the pieces in ETFs that are.
Like Garth recommends I like to buy my US etfs in an US account. You get way lower fees and you benefit on the exchange rate if Canada does poorly which acts as a hedge (but you pay to exchange your money so I wouldn’t do it if you’re planning on accessing that money regularly).
The bottom line we’re both saying that for a novice investor to keep it simple and do it with ETFs. The bigger goal is to get the right weighting of equity vs. fixed income and the right weighting between US, Can, International.
Out here in Durham region all my 40-50 year old work mates are scrambling to get the hell out of Dodge before some sort of corrections hits.
Funny thing though,…they can find houses further east, bowmanville to port hope that don’t sell without bidding wars on mass. $600000 house goes for $200000 over asking. The people I work with out here are reasonable and will not through caution to the wind,… but somebody is…
Back to the same old problem…can’t sell because can’t buy!!!
This surely has to be the end! right??
I can’t believe our Governments are ignoring this.
AT SOME POINT, IT WILL BECOME A FULL BLOW CRISSIS!!!!
#109 Nonplused on 03.14.17 at 10:51 pm
One thing I am a little surprised about is that my truck hasn’t held it’s retail value better with the decline of the dollar. An equivalently outfitted new truck of the same model has gone up in price almost $20,000 since the Canadian dollar went from over $1 to $0.75, yet the resale market seems unaffected. Sure the new one has a bit more horsepower, but other than that it is hard to tell them apart. The graphics are different on the stereo/GPS thingy. This truck when I bought it in 2011 was $72,000 with the diesel upgrade. It lists now for over $90,000. And they say there is no inflation. Of course nobody ever pays list but still, this is silly. Diesel trucks are on their way to $100,000 per each. How can the farmers who rely on them for their living afford them? Ok, they don’t have to buy the Laramie but still. This stuff is getting expensive.
——————————————
We get it, you drive a small penis size compensation truck which you need to display on the site, not just in traffic.
Everybody knows that the least depreciating vehicles in NA are Toyota trucks, and for no go reason. They are lame and frail and there are no volumes of old ones around to prove that point out.
As now, twenty years ago, new trucks were must have, just because mostly. So turn back the clock, get a mechanically restored south western twenty year old truck, and watch it not depreciate while you get the same results out of using it as in a 2017.
Before they made mass market diesel trucks, everybody still managed to drive to work and the corner store, as well as pull the race car to the track on the weekend.
Any mechanic will advise you not to own off warrantee late model anything, because of expensive parts and complicated layers of convenience systems. Earlier stuff is a cake walk to work on, even by hill billies.
The biggest expense in life…bigger than that one pop house purchase is your personal transportation. Being expert in this field is as important as being investment savvy, unless you want to over pay, including that tax on labour.
The one time I had a roadside breakdown, was the time I vowed to learn every detail of all of the systems in a car. Forty four later and not a nickle paid out in labour, driving self salvaged cars and vans.
As for stickers, I have a summer driven Ontario old mans $800 , 94 mint LeSabre here with an original $36,000 window sticker from when the CDN $ was less than stellar. Used cars are being shipped stateside for resale right now.
#147 Gonkman on 03.15.17 at 9:22 am
#114 IHCTD9 on 03.14.17 at 11:06 pm
#101 traderJim on 03.14.17 at 10:22 pm
___________________________________________
Kids these days should be planning a quick exit. I sure would have done things differently had I started my working career post GFC.
I expect many more brokeass lefty governments to come, but with any luck; I will soon transition from their beast of burden, to one of the poor unemployed shmucks in receipt of their sanctimonious benevolence in the form of a regular support cheque every month.
If the drag line operating socialist governments persist in Canada, your only logical career move is from that of the strip mine itself – to that of a front-end loader.
Where they expecting something else?
Garth, shouldnt a person be going heavily over weighted in the US if T2 pulls off the soak the rich budget he intends. Why keep dead money here?
#108 Spectacle
T2 isn’t even a chip off the old block. More of a flake.
#160 VANCOUVER DUDES on 03.15.17 at 10:53 am
—-
Its a well known fact that PET lived in the triangle of Toronto, Ottawa and Montreal and had open contempt for the rest of the nation. Classic hold over of the hinterland concept from confederation.
Guess T2 follows the same doctrine.
#124 Newcomer on 03.15.17 at 12:29 am
—
This has to be millenial logic at its best.
Buddy, capital purchases are the lowest they have been since 1981. You can thank T2 for that.
Obviously you have never run a business of any type. Instagramming yourself doesn’t count.
Breaking
4 charged in massive Yahoo hack, including 1 Canadian
Person arrested in Canada is Karim Baratov
The Associated Press Posted: Mar 15, 201
One of the people was arrested in Canada Tuesday and was scheduled to appear in court Wednesday for an extradition hearing, according an officer with the court in Hamilton,7 11:46 AM ET Last Updated: Mar 15, 2017 12:04 PM ET
http://www.cbc.ca/news/technology/russia-hackers-charged-yahoo-breach-1.4026006
#124 Newcomer
You’d still run a business regardless of the tax rate. There is a list of reasons as long as your arm to run a business
—————————————–
How about listing a few?
so who were the hackers arrrested in russia for treason?
I have a sure fire political platform for the next federal election. Anyone got the time and $ can use it!
Platform: “Repeal and Replace”
The entire campaign would revolve around citing idiotic policies of others and promising to repeal or replace. There will be plenty of material so you dont have to worry about getting asked about anything with substance. If you do, give your honest opinion. eg. I’m for gay rights but not for transgender washrooms. Watch how voters embrace honesty even if it is not what they believe. Remember to pander to only the middle class eg. $40K-$160K/year. Screw the poor and rich…they dont have the numbers vote you out of the running.
The candidate should ideally be a smoking hot white woman. Educated preferred but not required. Just make sure you fill your cabinet with private industry professionals for advice and to get things done. No more career politicians or noobs like the 19 yr old MP in Niagara (kid knows nothing but has mastered the art of talking out both sides of his mouth at such a young age)
Party Affiliation: doesn’t matter but NDP is probably easiest to get in. Once in, go rogue and set your own agenda.
Remember to keep repeating your slogans over and over again and you’ll be fine. Slant your message to be anti poor and anti rich and you will have captured the majority of Canadians. Good Luck!
#152 traderJim on 03.15.17 at 10:24 am
#147 Gonkman and IHCTD9
I think there are a lot of people with our mindset, and there will be more as taxes continue to rise.
______
Yes sir – quite a few out my way. Here is another trend:
A guy here at work is thinking of packing it in early for the same reasons as discussed here – his wife is 10 years younger than him and works for the government.
Wouldn’t you know, my wife works for the government as well.
A family member of mine who plays with real estate is also thinking of bailing out about 50% – guess who his wife works for?
Another acquaintance says if his teetering employer folds, that’s it for him trying to get back in the industry again. He’s had 5 employers over 20 years and all of them went bust. His wife is [drumroll…] a teacher.
A ex-customer of mine who is uber well educated and experienced in his field was booted from his job and replaced by a cheaper employee. He can’t even get an interview. He said the heck with the industry, and got some part time job driving a car that pays UTT and is as happy as a P.I.S. with his 2-3 days a week. Wife is a 30+ year city employee.
It makes perfect sense to me that among the crowd checking out early, a high number would be backed by a public sector spouse with impenetrable job security, high wages, great benefits, and a DB pension. Makes for a pretty easy decision if everything is paid for and your cash flow is still more than enough.
I guess the same would follow for those single and married folks who have managed to amass a good chunk of wealth while working, and literally do not need to work at all.
I’m pissed. Me and my wife didn’t start working at age 16, get useful degrees, make modest salaries and save our money like maniacs so the government could take it and give it to people that had the same opportunity.
Maybe dip in to the public service’s pension funds or cap their salaries at $150k. I’m pissed.
Who’s shtting bricks over the FED in one hour?
Kanadian debt slaves.
(Why do they hate our freedoms. )
Stopped by RBC today for a quick question that couldn’t be answered by the teller until I gave her my ID card…
Answer further delayed while she checked the status of my account ( Credit Card only ) and “had to update my credit card to a new version as the type I had was expiring..” I replied, “I only have it as an emergency back up, this one is fine.”
To which she replied “No, no, you will get a new card, with new expiry dates, etc..still no fee and no change of benefits..”
4 minutes later, I finally got my question answered…
Conclusion: Don’t enter a bank unless absolutely necessary, front line tellers are 100% truthful stating they are under pressure to sell products…I guess record profits are never enough.
#35 Ruben on 03.14.17 at 7:23 pm
First off, a huge number of wealthy people inherit money, and get rich off paper, not work—just like the Angry Mango down south. So sorry I was too silly to pick richer parents.
Second, the few wealthy people that actually got so through work are doing it thanks to the shared benefits of our country. The roads, the rule of law, the electrical grid, the medical system, etc.
Third, even the IMF, that redoubt of slavering Marxists, says trickle-down doesn’t work.
So, explain to me why someone who makes more than your average schmoe should pay less tax.
_________
Sure, but first you explain to me how folks can “get rich off paper” if trickle down doesn’t work?
#179 Calgary
I agree..long ago I realized you have 2 choices…work hard and make a lot of money OR work smart, make little money and enjoy life simply…The middle had few benefits.
I went high, now am low, debt free, stress free and enjoying everything….take what they system presents and work with it, not against it.
All the best!
#180 TurnerNation
In a perfect world, I’d love her to come out and say “What the hell…let’s do 4 raises at once and just call it a full 1% hike now.” just to open your front door and hear the screams world wide and explosions going off…
A boy can wish and a dream is a dream…
taxing windfall, undeserved and socially-destructive real estate gains
Undeserved? How about all the interest homeowners have paid on their mortgage all those years? If we’re to pay tax on the gains, isn’t it only fair that we get to write off the interest on the loans? Isn’t that already the rule for leveraged equity investing? I mean, let’s at least be consistent and fair about this.
For decades Canadians have not declared gains on investment real estate properties.
Unless the government and stakeholders create a systematic reporting of transactions, like what we have with T5 declarations, increasing capital gains inclusion is pointless.
In other words, CRA relying on the blunt instrument of “audits” of individuals is time consuming and expensive.
This isn’t the way to capture real estate capital gains.
They need to build something with municipal land transfer and / or lawyers who act as trusts in the transactions.
Good luck with that.
No worries about Canadian debt.Low rates like Japan for decades.Forget about the USA fed rates increase,its all a dog a pony show.20 trillion in debt so maybe 1 or 2 more rates increases.Remember the US is in a very high leveraged economy!
Just an FYI for all the loyal readers here – my latest spam email from Grandfield Homes:
“The popular Wechat is now available for Grandfield Homes. Please scan our QR code to subscribe to get the most recent updates. (Content in Chinese)”
Wonder where all that new inventory is going
The epic fails of the anti-Trump people just keep building. Too funny.
Now let me get this straight… The FED raises interest rates and then goes on to state that there will be two more rate hikes as planned in 2017 and the u.s. dollar goes down???
#178 IHCTD9
My extended family includes quite a number of government employees: Law enforcement, military, fire dept., teachers.
All make over 6 figures, or very very close to it.
Several retired from first gov’t job at age 42 to 47 and took that pension (unavailable to anyone in the private sector) and started work the next week at a different branch in the exact same line of work to start on gold plated pension number 2. (eg. retire from city police and start at RCMP or OPP).
Several have second jobs as contractors, as their day job gives them so much time off.
All drive high end German autos, have beautiful homes, and not a thing to worry about, except being told from time to time that they work too hard and need to stop making their union brothers and sisters look bad.
The ones in their 50’s are definitely planning retirement before 60, and they have the vacation home and boat already bought and paid for.
Since they are my family I don’t begrudge them any of that. But I do wonder why the folks paying for all this don’t speak up.
#181 common sense
Don’t enter a bank unless absolutely necessary, front line tellers are 100% truthful stating they are under pressure to sell products…
—————————————–
I went to an ICBC broker to renew my car insurance a few days ago. I was surprised to find out that insurance sweatshops exist right here in the first world.
There were about a dozen people crammed into a tiny office all behind terminals, doing what? Selling insurance online, I guess.
The young lady I talked to at the front counter did her damnedest to sell me gap insurance. That’s insurance for the difference between what your car would cost to replace and what it cost you to buy it. I’m sure a chunk of the significant extra cost would be her commission.
For a very few people, gap insurance makes sense. For instance, if you financed that Lamborghini with zero down and managed to total it by Christmas, then gap insurance could come in handy.
I told her she’d done a fabulous pitch but I wouldn’t be interested for my 2014 Escape. “I know” she said.
I felt a little sorry for her. But then, she’s very young and has lots of time to find a better job. When I was her age I had crappy jobs galore.
Fed raised rates today for third time in 11 years (hahaha).
But Yellen and cohorts talking mighty dovish and the mighty buck is taking a beating.
I am close to being able to short the loonie once again, but I think this bounce has legs. Maybe tomorrow or Friday will be better.
Betting on Yellen being a hawk is a very, very dumb bet.
Trump has got to fire Yellen. A sabatour.
0.9 growth in last 1/4 and they spike.
#178 IHCTD9
It makes perfect sense to me that among the crowd checking out early, a high number would be backed by a public sector spouse with impenetrable job security, high wages, great benefits, and a DB pension. Makes for a pretty easy decision if everything is paid for and your cash flow is still more than enough.
——————————————-
That has been my mantra since Muldoomy gave us NAFTA, as I have oft discussed here. Retired at 35, wife retired 17 years later at 55, a decade ago. Cash flow will still be (only barely) enough when the 72% funded DBP evaporates I assume, in the very near future. Depleting savings and deleting travel will remedy that for a long, long long time though.
Canadian prices with US wages, not the other way around as the NAFTA voting sheeple expected, nailed my self employed coffin shut. There is so much more to life than running a sole proprietorship it turns out. Thanks for the kick start Brian…
As now, twenty years ago, new trucks were must have, just because mostly. So turn back the clock, get a mechanically restored south western twenty year old truck, and watch it not depreciate while you get the same results out of using it as in a 2017.
Bonus if you hand that 20 year old, battered Ford 150 to your mother. Because she’ll just love how everyone in her path clears out of the way. And everyone else will only see the white hair (through the steering wheel) driving a truck that looks like it was wrapped around a telephone pole or twenty.
It was hilarious watching the guys in uber sports cars just freak in terror as my mom and the ol’ 150 came towards them in mall parking lots.
U.S. Federal Reserve raises rate a quarter point, signals further hikes will be gradual
http://business.financialpost.com/news/economy/u-s-federal-reserve-raises-rate-a-quarter-point-signals-further-hikes-will-be-gradual
‘Several’ Home Capital directors, officers served with OSC enforcement notices
http://business.financialpost.com/news/fp-street/several-home-capital-directors-officers-served-with-osc-enforcement-notices
The Ontario Securities Commission has issued enforcement notices to “several” current and former officers and directors of Home Capital Group Inc.
The mortgage lender on Tuesday said the notices were related to the firm’s disclosure of the impact of falsified income information that appeared on some loan applications, and its subsequent steps to remedy the situation, including the suspension of mortgage brokers and brokerages.
In addition, Home Capital said in a statement issued late Tuesday afternoon that a statement of claim and notice of action has been filed with the Ontario Superior Court of Justice against the company and three of its officers and former officers regarding a proposed class action lawsuit for “alleged misrepresentations” in the company’s public disclosures in 2014 and 2015.
Gartho was right again – interest rates rising to 2019
Fed hikes key U.S. interest rate to twice what Canada’s is: Higher rates in the U.S. likely to spill over into Canadian fixed-rate mortgages
http://www.cbc.ca/news/business/federal-reserve-interest-rates-1.4026314
The move has been telegraphed for months, as bond yields have been inching higher in anticipation of the move since last week. But while expected, the move is unwelcome news to Canadian borrowers, who are nonetheless impacted by monetary policy in the U.S.
That’s because variable-rate mortgages may be impacted by what the Bank of Canada does, but most Canadians have fixed-rate mortgages, and rates for those are based more on bond rates, which will be affected by the Fed’s move on Wednesday.
“The quarter-point increase in the U.S. Federal [Reserve] interest rate typically results in the same increase for fixed-rate mortgages here in Canada, which we should expect to see in the coming weeks,” said James Laird, co-founder of rate comparison website RateHub.ca
‘Publishing a 12-year-old tax return is pathetic. — Garth’
But using something Trump said 12 years ago to label him sexist is ok apparently…..
BEND-OVER Debtholders.
Data suggests flurry of Toronto real estate activity due to soaring home prices, CREA says
https://www.thestar.com/business/2017/03/15/data-suggests-flurry-of-toronto-real-estate-activity-due-to-soaring-home-prices-crea-says.html
“Any lingering debate that Toronto is now in a bubble was put to rest by February’s cannonading 24 per cent” rise in benchmark prices and “razor-tight inventories,” Bank of Montreal chief economist Doug Porter wrote in a draft note to clients.
Even some Canadians earning $225,000, which puts them on the cusp of wealthiest “1-per-centres,” would be shut out of the market for homes worth more than $1 million when taking into consideration mortgage qualification and insurance requirements — even if they’ve saved for a hefty down payment, Porter said.
Still, such obstacles don’t appear to be slowing the region’s housing boom.
#190 Fed – Up
Me too…How does the USD go down against CDN?
Huge gold purchases???
Can someone please explain?
Tick tock..tick tock…
Time marches on for those on the sidelines. Tiny and gradual increases in the mortgage rates will not impact the hot markets like TO.
Does a 24% price increase look like its tied to low interest rates – we have had them for 9 years now….
Still waiting for those posters to comment on slowing GTA and Victoria sales and prices . And it looks like game back on in Vancouver with February numbers….
In less than a year, we shall see if interest rate hikes dictate the market or foreign capital runs the market.
In less than a year, the long held belief that rates will negatively impact the market will be proven wrong. I look forward in one years time, after prices continue to rise, to hearing about the ‘other variable’ that is dictating the market….lol.
Lets all continue to ignore the elephant in the room.
@Kevin #185:
Free-marketers would argue that a homeowner who has ‘paid his mortgage, with interest’ for all those years is entitled to whatever the markets will pay them for that asset.
If you’re a rationalist, then the only thing a property owner ‘deserves’ is a price equivalent to the cost of the principal amount of the loan, plus the cost of interest. When you do the math, you find that while the total paid to cover the cost of principal and interest on a mortgage is much higher than what is usually anticipated, it is nothing close to the values that fools pay for homes in the market.
The difference between the two assessments is the capital gain. Wisely, governments sought to tax this increase in value, driven by market conditions, instead of improvements (note that the cost of improvements can be deducted from profits).
A tax on the portion of wealth that’s created out of thin air should be easier to bear than taxes paid on wealth earned through hard work, which to me feels more like adding insult to injury.
Canadian household debt hits another record in fourth quarter
https://www.thestar.com/business/2017/03/15/canadian-household-debt-hits-another-record-in-fourth-quarter.html
OTTAWA—The amount Canadians owe compared with how much they earn hit another record high last year.
Statistics Canada said the amount of household credit market debt rose to 167.3 per cent of adjusted household disposable income in the fourth quarter, up from 166.8 per cent in the third quarter.
That means there was $1.67 in credit market debt for every dollar of adjusted household disposable income.
“After slowing to a stable year-over-year pace by late-2013, growth in this debt ratio has since accelerated again alongside torrid gains in the Vancouver and Toronto housing markets,” said Robert Kavcic, BMO Capital Markets senior economist.
The world is in an asset inflation bubble and you know why?
Free money
#190 Fed – Up
Read on another blog major longs expected 4 rate hikes in 2017 not 3, thus sold off their USD positions….
Stats Can debt to income ratio: I don’t get it?
http://www.msn.com/en-ca/money/topstories/canadian-households-owed-dollar2-trillion-at-the-end-of-2016/ar-AAonXfM?ocid=spartandhp
#203 Victor V on 03.15.17 at 3:33 pm
…………….. Even some Canadians earning $225,000, which puts them on the cusp of wealthiest “1-per-centres,” would be shut out of the market for homes worth more than $1 million when taking into consideration mortgage qualification and insurance requirements — even if they’ve saved for a hefty down payment, Porter said.
Perhaps someone needs to have a good look at the process of “income verification” and see how it is currently functioning.
I’m confused! The Feds raised their rates, and the Canadian dollar gets a massive rally?
This goes against everything I understand about the markets.. what’s happening? (Trying to learn), shouldn’t it be free falling?
#191 TraderJim
“My extended family includes quite a number of government employees: Law enforcement, military, fire dept., teachers.
All make over 6 figures, or very very close to it.”
I worked for the wrong government; took a technical job over a Nortel one; if I had stuck it out at Nortel til the end, would have been able to shave 10+ years off of my working years (incl. pension – wage was 2.5x difference)
End of Govt. career, never made it to 6 figures, but the technical stuff I did was great fun, until it wasn’t.
Now contracting, and making a good wage, in the 6 figures bracket.
Should have left Govt. years ago – more money, more fun in private *if* you have the chops to actually do something.
#202 TurnerNation on 03.15.17 at 3:26 pm
BEND-OVER Debtholders.
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You really think that Trudeau is not building into his budget what Yellen may make for you?
#212 Blobby on 03.15.17 at 4:39 pm
I’m confused! The Feds raised their rates, and the Canadian dollar gets a massive rally?
This goes against everything I understand about the markets.. what’s happening? (Trying to learn), shouldn’t it be free falling?
______________
Answer was posted as show below related to the commentary indicating 3 increases not 4 expected in 2017, but also the rate increase was clearly signaled and not news – buy on rumour sell on news.
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#209 common sense on 03.15.17 at 4:24 pm
#190 Fed – Up
Read on another blog major longs expected 4 rate hikes in 2017 not 3, thus sold off their USD positions….
#212 Blobby on 03.15.17 at 4:39 pm
I’m confused! The Feds raised their rates, and the Canadian dollar gets a massive rally?
___________________
The other lesson here is that betting on currencies is just that. Betting. Experts in this area are wrong as often as they are right.
#25 Self Directed on 03.14.17 at 7:05 pm
“Does anyone know if there is a cap gains tax on an inheritance house? Piet’s kids are asking… they are waiting for them to die, asap. Tick Tock Tick Tock.”
If I were Piet, I’d leave the whole shebang to charity- oh wait! that’s exactly what we’re doing! The young’uns can pay their own freight.
#27 IHCTD9 on 03.14.17 at 7:08 pm
“Canadians went full bonehead electing Trudeau.
At least after this, there will be no question as to just how acutely inebriated the entirety of our Federal Liberals are.
Right now, Harper is laughing… long, and loud.”
Yes. Talk about a grand occasion for sitting back and enjoying a vat of popcorn.
trumps tax 2005 what it has revealed by david cay johnston
https://www.dcreport.org/2017/03/14/taxes/
What the heck happened?.Gold usually goes down and the cad also.Always play jnug or jdst on fed day.Had to switch to make easy money today.Its rocking again ,grandma Yellen talking bs again.3 rate hikes in 11 years,things looking good!!
Taxing primary home sales are just barbaric. Why won’t they just leverage a flipper and vacant home tax?
Re: #205 Rates vs Capital on 03.15.17 at 3:51 pm
Let me enlighten you, one has only to look at any Canadian city where foreign buying hasn’t taken place and each of these cities peaked early in 2012 and has been flat or declining since then. Foreign buying is not the problem it’s the race of people that keep on paying more and more even if the price of a house goes to the moon.
Re: #217 maxx on 03.15.17 at 5:40 pm
Transfer the ownership to a family member and make their address the address of the said house. If the residence is a principle residence no tax is owing. If you don’t transfer ownership the house will go into probate (you lose a lot of money in fees for nothing) and if it was a principle residence no capital gains tax will be owing when it comes out of probate. Stock capital gains will be included after death if the stocks rise in value after death.
Long-Time Lurker on 03.14.17 at 8:10 pm
I’m pretty sure J Trudeau is clueless when it comes to finances and the economy (and maybe a bunch of other things). That’s what you get when you go for style over substance. Hey, Justin, if you don’t know what to do, go ask a bunch of experts. They’re called consultants.
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He did. It’s Larry Summer, the father of negative interest rate and George Soros, the socialist. Our time will come…
#71 Old Salt on 03.14.17 at 8:46 pm
Ultimately T2, I’m disappointed. I would have thought a teacher would hold a higher regard for educating people rather than treating the like a flock of sheep.
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Teachers are generally lefties.
#223 Tony on 03.15.17 at 6:25 pm
Re: #217 maxx on 03.15.17 at 5:40 pm
I meant really, truly leave it to charity.
We’ve bought and sold a good few properties in our time, so we’re familiar with the regs, but thanks anyway.
You know when your getting old when you get invied to more funerals than weddings. RIP fteind.
Why do the undertakes put such a sad face on the dead guy.
When it’s my turn. I want a big ass smile on my face. I want to let the world know I had fun down here.
Forward thinking.
And you should have seen gods face when I took the prick down on why he took Mark so young.
Guess he needed a good accountant. There is always some prick ubove god.
Probably a strait white guy if you get your news from CNN.
DELETED
You “deplorables” are just as narrow mindedly focused on ignoring reality as the anti Trumps are in reporting it.
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It’s either you’re a deplorable or a intolerable. Count me in as former.
#221 Ann-imal
Taxing primary home sales are just barbaric. Why won’t they just leverage a flipper and vacant home tax?
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Even Rome, one of the greatest empire in history, fell due to excess taxation. In their final days, they couldn’t come up with money to pay for soldier’s(pensions etc). The soldiers sacked the city. Rome weaken, barbarians took care of the rest.