Bill Morneau lives in a $5 million house within walking distance of the big Loblaws in Toronto’s upscale south Leaside, and earns about $230,000 a year as the finance minister. So, he’s a 1%er. He also has a few other million in equity in the family pension business. So, he’s a .oo1%er. But right now he’s a politician in a time when the forces of populism are sweeping neo-liberals over the dam of public opinion. So he’d rather you forgot about his personal fortune.
His biggest challenge comes Wednesday afternoon with the second T2 federal budget, in which Bill will try to look like a gun-totin’ Deplorable, and tax the rich – at least those wealthy people silly enough to be doctors, entrepreneurs or others making their money in the sunshine. This is popular. Just read the comments on this strangely addictive but demure blog. It’s there. The sentiment that anyone making a big wage is ripping off the system, deserving to be taxed into the dust, is a moister meme. And never forget that Mr. Trudeau is our leader because hordes of young people voted for the first time – and voted for the sexy guy with tats, a hot wife and MaryJane as his muse.
Also popular with the kids. Debt. Its dark embrace is part of the Canadian fabric now – with personal borrowing at an unheard-of level, twentysomethings clamouring to get mortgaged and credit out of control. The T2 guys understand they no longer need to adhere to the campaign promise of a “modest” $10-billion annual deficit for a three year period. They can go full Monty, and the kids will still slobber over them.
Thus a big (but largely ignored) part of the budget tomorrow will be debt. The Libs will be spending not $10 billion more than they take in, but $30 billion (plus). It won’t last three years, either, but at least 10 and likely 15 (says the Parliamentary Budget Officer). The new debt to be added in four years will be historic. And this is happening during the lowest interest rates since ever. As rates rise, the pile gets raunchier.
This brings us to eating the rich. After B-day, Bill may be getting some passing strange glances from Leasiders as he loads up at the olive bar, there beside the greens section, just over from the Ace bakery display. As you’ve been forewarned here, the Libs may up the capital gains inclusion rate (beware if you own mutual funds or an investment condo), or water down the dividend tax credit (ugly), or lower the boom on small corps with retained earnings or Mom on the payroll (inevitable). All that is speculation. A debt bomb is fact.
Over eight years of rule, which included the greatest financial crisis in 80 years, the Harperites ran up $150 billion in new debt, much of it through the ‘Economic Action Program’ that built a bunch of stuff. The Cons also dropped the GST from 7% to 5%, lowered corporate income tax and brought in a mess of family tax credits. So far the T2 government is on track to add at least $100 billion in just four years, has carved about ten bucks a week out of the middle class bill, upped taxes on the wealthy, rolled back OAS pogey to age 65 (the cost is $12 billion a year) and started paying people a lot more to have children. Apples and oranges, Ying and yang. Mars and Venus.
Said Bill in Germany a day or two ago when asked about the budget: “We talk about middle class ad nauseam and I’m sure it drives journalists crazy. But seriously. We look at what’s gone on around the world, is there anybody who questions that we should be focused on how people feel? What are the outcomes if we don’t? So I think we’re going to stay on that message.”
The translation: yah, the deplorables are winning. They want government to be the solution, punish the elites and kick the can of responsibility way down the road. People are pissed. If we don’t give them what they want, we’re history.
This is the rub of politics. Do leaders lead, taking tough decisions then braving the consequences? Or follow, telling throngs what they wish to hear, then obsessing over ratings? Logic tells us a little country like Canada can’t add $30 billion a year to its national debt without the mother of all tax increases in later years. And yet Trudeau’s supporters seem not to care because, dammit, they want condos. And a guaranteed annual income. And (count on it) debt forgiveness once the cost of money rises.
This is why our guys in Ottawa have expanded the CPP, enhanced child payments, increased unemployment payments, and reversed Harper’s brutal OAS decision. It’s all about giving more to people, even when it means looting the future and Hoovering the successful. So, Canada and the US are on divergent paths, even though Trudeau and Trump serve the same master. The elector.
“The best argument against democracy is a five-minute conversation with the average voter,” Churchill said. Now it’s 140 characters. Or an Instagram. We’re screwed.
191 comments ↓
And truly – who’s fault is all this? Not the average Joe that’s for sure – reap what you sow.
RATM
There is too much money laundering and criminal elements in Toronto and Vancouver Real Estate.
http://www.msn.com/en-ca/money/topstories/ex-wall-street-trader-predicts-vancouver-housing-market-implosion/vi-BBydYxJ
Bill Morneau’s house is worth a lot more than $5M. Probably $7. It’s a triple lot.
Harper was the bad cop everyone hated because he made some hard economic choices (had a helmet for a hair style, a personality of a dirty soap dish and a leadership style of a dictator).
T2 is like the good cop, most love as he will give you everything if you only ask. “Oh shucks, why not? Your a kid. Enjoy life..live a little.”
So sorry and a bit embarrassed that my 17 yr old will bear the brunt of this crap down the road…But for now ‘He’s so cute…”
And one more thing… Benningtoners will never mingle with leasiders… they’re East Yorkers.
#148 cheap houses
Complete unmitigated junk.
https://mediabiasfactcheck.com/independent-sentinel/
On the upside, the link provided many other sketchy, similar, mouth breather, goober bait, faux reporting sites u can drool over. Knock yourself out.Alternativly you could spend more time on your GED studies.
PS The FBI is investigating. Donnie boy popularity sinking fast. The Grifter is gone before mid terms. He either has a heart attack or the heat in the kitchen gets unbearable.
Garth, you believe there will be mass debt forgiveness down the road?
Follow your leader…. into debt.
I’m conflicted on the so-called doctor’s tax. Many of them (and lawyers too) just happen to be fortunate enough to have their income classified as dividends. Why shouldn’t they be charged the same as other highly skilled white collar workers who face much higher income taxes?
The corruption stinks
Fraudulent monetary policy and decades of unprecedented government intervention have left us broke and unable to afford the basics of life. These so called Liberals and wannabe cons are nothing but closet communists who love large global corporations – it is a fusion between the classic corporate led fascism and left wing fascism where a large and growing state taxes and consumes all wealth and creates maximum dependency by the masses
We ARE in a steady societal and economic /financial collapse. Even the most casual observer who took high school math can figure out we are in big trouble
The vast majority will be left hungry and probably homeless once we complete this cycle. Nothing to show for decades of work
But humanity will survive and there is hope – we have to make the right turn when the moment to rise from the ashes comes
Like his father before him. Big government and big spending. Justin I suppose is like many younger people. No fear of massive amounts of debt personal or federal. We are screwed !
A dollar is a dollar – tax them all equally, Bill.
Time to pull the rug out from under all the precious snowflakes who say getting their dollars from “investing” should shelter them from taxes.
Most “investors”, especially corporate CEOs who get shares and options, take no risks whatsoever with their money. Lots of them offshore their money, some illegally. Why reward that sort of gamesmanship?
Small business owners, yes, give them lots of deductions. They create jobs here, not in China.
House flippers, no, they really don’t take any risks that contribute to society, not for the last decade anyway.
Tax all income equally.
Then, finally, we can all move on to the future and deal with reality.
Thus a big (but largely ignored) part of the budget tomorrow will be debt. The Libs will be spending not $10 billion more than they take in, but $30 billion (plus). It won’t last three years, either, but at least 10 and likely 15 (says the Parliamentary Budget Officer). The new debt to be added in four years will be historic. And this is happening during the lowest interest rates since ever. As rates rise, the pile gets raunchier.
—
Just the other day you shrugged off government debt as something to “service” only.
What has changed?
Surprised you didn’t mention his “Budget Day” shoes… an (expensive) annual tradition. He actually admitted that his daughter bought them online for $250.00.
Those aren’t middle class shoes! Morneau, you are so out of touch.
Surely Harper and his minions added $150 BILLION to the debt after 2008, and not the mere $150, that they’d love to have us believe.
People who own houses as assets will be able to track inflation.
People who want to own houses but can’t afford them are being left in the dust via inflation.
It’s the great divide of classes.
You’re right Garth, we should turn off the taps and lay on some serious austerity to balance the budget and give the rich their tax breaks. Who cares if the youth unemployment rate goes higher and who cares about those displace oil industry workers?
They want debt forgiveness… That’s what scares me, and they shall ask and they shall receive!
Canada, land of the good!
On Feb 1st. 2015 the day the Liberals abandoned their pledge to electoral reform I started a blog about tax reform based on Edgar Feige’s Automated Transaction Tax which in his model using late 1990’s data got the U.S. “revenue neutral” tax down to less than 1% if made on all financial transactions. It would pay for all the tax collected in the model year (2000 I think)… anyways on my data collection page, I have got the model revenue neutral tax down to 8.5% using Canadian metrics:
http://www.brianripley.com/data.html
…and more data is still needed, which I am having trouble locating.
I’m surprised we don’t hear more analysts talk about the potential for a radical reform of taxation in this country; especially since we have a breakout in machine learning / AI / robotics / blockchain etc.
We are not going to compete on labour with global competitors who pay employees a fraction of what we charge for our labour and hopefully we are not going to be able to compete in stripping away regulations that benefit all Canadians as happening in the U.S. and elsewhere.
Canada could be a very unique example of a very low tax jurisdiction and still provide all the social benefits we expect as Canadians.
Imagine a tax system that is expanded to act on all financial transactions in the economy so that the revenue neutral tax rate is very very low and yet our social benefits gained are quantitatively and qualitatively at the top of all global comparative lists.
Boomers appear totally uninterested in tax reform. Let’s hope the millennials will move technology into our political life via electoral reform and our social life via tax reform.
At some point the debt will become large enough that largest real estate deal ever will happen. Can you say “my fellow American’s”. It sounds silly but Diane Francis made a very good case for it.
Democracy? Let’s not kid ourselves.
You think you have a voice? You don’t. That was thrown out with last election’s ballot boxes. Rinse and repeat every four years or so.
All politicians, regardless of political stripe, have now totally succumbed to a lobby-ocracy, all the while fleecing you with social media.
Just ask the President of the Alternative Facts of America on Friday.
Politicians are supposed to be followers in a democratic country. The voice of the people is the voice of God, Garth. You should listen. When you get old enough and eventually get to meet him (or her), keep in mind your mutual funds or whatever don’t come with you. You always preach perspective. You should get some.
So, Kellie and or Kevin will save us all?
The CRA rule is whatever the CRA rules. — Garth
—
There is no place in law for ambiguous language.
When ambiguous language is used in writing laws one can be 100% sure that the law will not be administered fairly to all.
—
As I stated. Short-term owner? Expect scrutiny, or an audit. — Garth
Fine,but what is so hard in defining what ‘short’ means is and putting it on their site? I know one European county has five years ownership to get the tax exemption. Despite what is written on CRA site they have no way of determining what anyone’s ‘intention’ is at the time of a house purchase, that would be mind reading
Two ways to get wealthy, if you aren’t already:
1. Real estate: buy crap, that is likely to increase in value. Hold for a while (usually ten years). If you bet right, and you are in a rising market, you win.
2. Contrarian investing: figure out what stocks are actually worth. Buy them. Wait for the event you predicted will increase their value. Sell them. Repeat.
Once you are wealthy, you can follow the process he sells on here, to stay wealthy and earn income off your wealth, so you can retire.
I thought “deplorables” was a term that described gun tooting right wing nut jobs in suspenders and rusty pick up trucks? These people aren’t the ones clamoring for higher tax rates. The people clamoring for higher taxes are your left wing social justice warrior snowflakes in their pink hats and safe spaces.
At first the MSM was doing a pretty good job of convincing me that maybe Trump was nuts, but then I heard about the upcoming B-J budget and saw a video of some SJW’s protesting in vagina costumes. Trump may be nuts, and someone really should take his phone away, but vagina costumes? Trump wears a blue suite and looks like a preacher in a travelling tent revival tour, whereas the SJW’s frighten the children.
I blame radiation from Fukashima for boring holes in everyone’s brains, because everyone looks more crazy than the next person these days. Although I do have to admit it is as entertaining as it is frightening, it’s getting to be a bit much.
As for the B-J budget coming out tomorrow, I think calling it a budget is a bit of a stretch. When I learned to budget many years ago the idea seemed to be basically you need to look at your income and then keep expenses below that amount, preferably even saving some of the money you earned. You might borrow money to buy a car or a house but always with a view to keeping the payments within the “budget”. It appears this sort of restraint will be quite absent from the B-J budget. Well, it isn’t in Trump’s budget either, but at least he’s not crazy enough to punish the most productive and hardest working members of society. These tax increases are just plain jealousy on the part of the triggered snowflakes. If you are going to borrow $25 billion a year anyway, why not just borrow $26 billion and leave the doctors and small business men alone?
This is looking like it has Gerald Butts written all over it. A man whose head shoud be on a pike on the lawn of Queens’ Park and whose kiwis should be roasted over the Centennial Flame on Parliament Hill.
Bingo Dude. Well said.
……………………………..
#22 The Dude on 03.21.17 at 7:12 pm
Politicians are supposed to be followers in a democratic country. The voice of the people is the voice of God, Garth. You should listen. When you get old enough and eventually get to meet him (or her), keep in mind your mutual funds or whatever don’t come with you. You always preach perspective. You should get some.
A majority of people voted for neither Trump nor Trudeau. — Garth
After reading this, going staight to Jack tonight, the wine won’t work.
Say what you want, but Justin is hot.
Even a heterosexual married male in his forties like me with kids can admit it.
Do you think the budget will have an impact on $CAD?
Interesting commentary Garth.
Would I assume the answer to every problem is still the same – balanced portfolio.
If Wild Bill’s family has their hand in a pension business, doesn’t that conflict with the Libs Bill C 27? Are we being diddled like mariachi player on acid? Turning DB pensions over to private industry???
Most Millennials may have voted for T2 and will not be concerned about the frightening deficits on the horizon. However, he pissed off many of these same voters by reneging on electoral reform. They may not vote for him again. In addition there are many non-Millennials who will be unhappy with the budget which will cost him further support. If the Conservatives pick the right new leader they have a real chance to make T2 a one termer. To be clear, I am not a Conservative voter.
A quick impression regarding Vancouver RE: listings and sales seem to be increasing here on the West Side. Sadly, prices are remaining firm which means that they are still absurd. The real crash is yet to come.
Hey Big Spender!!!!
We’ll see what Wild Bill gonna bring tomorrow, 75% capital gain tax? If so, everywhere will be butcher shop…. or like Spain tomato festival..lol
If the government really want to curb the housing market, simply raise the rate, the thing is they can’t do that. They are so in debt and on the brink of collapse, look at Ontario, a mess!! So interest rate raise is out fo question and we all know that.
#31 Shawn
I sure hope so! :)
US earner living in Ontario.
I miss FLOPPER!
damn right. It’s global
GOLD…:)
From yesterdays comments….
#154 Jesse Wierz on 03.21.17 at 5:47 pm
Alternative with one extra etf because 2.0 doesn’t include emerging markets
Sample Garthfolio 3.0
ZAG 7% (federal bond etf)
ZPL 7% (provincial bond etf)
ZHY 6% (US corporate bond etf)
ZPR 20% (preferred share etf)
VV 21% (US Large Caps in US$)
VCN 16% (Canada equity etf)
VRE 5% (Canada REIT)
VIU 15% (Developed ex N.America etf)
VEE 3% (Emerging Markets etf)
MoneySense recommends “using ZAG in registered accounts and ZDB in taxable accounts, investors can get similar bond market exposure with maximum tax efficiency”
http://www.moneysense.ca/save/investing/best-fixed-income-etf-2017/
Wouldn’t an increase in capital gains inclusion Hoover not only mutual funds in a non registered account but also ETF’s as well?
Why point out mutuals and not ETF’s?
#7 K
Like his father before him. Big government and big spending. Justin I suppose is like many younger people.
————————————–
I voted for Pierre Elliot Trudeau in his first election on Jun 25, 1968. I was 17 and, in theory, to young to vote in a federal election. My father went to the polls and notice my name under his on the voter’s list. He told me I should go and vote.
I hadn’t given it much thought since I hadn’t expected to be voting. In the end, I just voted the same way as every other Trudeau-maniac. My Dad voted for Robert Stanfield’s conservatives, so, I suppose we essentially cancelled out each other’s vote.
Looking back, its hard for me to understand what was so appealing to women about the first Trudeau. To this day, he still reminds me of Mr. Burns on the Simpson’s. My wife tells me I’ll never understand. Guess not.
@#30 JSS
“Say what you want, but Justin is hot.
Even a heterosexual married male in his forties like me with kids can admit it……..”
+++++++++++++++++++++++++++++++++++
riiiiiiiiiiiiiiiiight.
Have you told your wife?
While we’re at it, let’s also dump all religious exemptions.
The world is awash in debt – so is it “different” this time? I mean everything keeps chugging along even though common sense says it shouldn’t. Do we need/deserve a serious depression in order to reprogram people’s brains to understand consequences of over consumption? History does repeat so perhaps we are heading towards a something that will rock us to our core.
Sweet Garth — you are an imaginative story teller !
Define debt forgiveness. I dare you !
I recall what Christy Clark recently said about debt:
“Don’t Want More Debt? You ‘Don’t Live In Real World,’ ” Christy Clark
A typical politician.
#9 RentYVR
Most doctors and the lawyers and accountants who own their own practice do in fact run a business. They have an office and all the related expenses, usually have staff such as nurses and administrators, purchase supplies, install computers and other very expensive equipment, and carry on all of the usual activities associated with running any other business. And then their business pays corporate income tax. That is why there is a dividends tax deduction, the corporation has already paid taxes. Dividends come out of earnings, which are taxed.
Taxing dividends and capital gains is a simply beautiful economystical strategy. First, tax the corporation so the government already has a piece of the pie. Then, tax the investor who receives the dividends and get another piece of the pie. Then impose GST and Carbon Taxes (same thing) on both the business and the dividend owner and get yet a third piece of pie for the government. It is simply brilliant.
(PS I suggest we rename the GST or HST where applicable the GSCT or HSCT for simplicity. We had to do the carbon tax as a separate thing because economystics says having a separate group collecting a new tax creates more jobs which can also be taxed than simply increasing an existing tax. I know, right? Sometimes I can’t believe how much smarter economystics are than most people but we’ve got them all fooled into thinking somehow a new tax is “for their own good” and “to save the planet”. Ha. Ok, I’m being arrogant now. But you have to admit it was quite a feat to pull that off. It took 20 years of hard work and disinformation. Can you believe it but most people don’t remember that CO2 is essential for plant life, indeed all life, anymore? But we did it. It was hard work but we did it.)
As a business owner myself, my corporation operates much like a doctor’s business (yup, management consultants can do this too but I don’t have to put up with pesky things like paying for rent or hiring staff), I find it extremely unpalatable that I have to pay tax on the same money 3 or more times. But then I remember that all I need to do is magically, or should I say economystically, raise my rates. In the end you pay for it anyway, not me. You are not paying it you say? Ah but you are. My fees are baked into every utility bill and tax you pay. You must remember that I am a 1st order economystic, and I don’t leave any money on the table. By raising all taxes, I just need to raise my fees and the pool of money available to me is larger. Always remember that all the taxes I pay you paid first and I build them into my rates.
I’m not the only one doing it. Even your plumber is raising his rates so he can pay his taxes. But he does so out of necessity, not because he understands the fine art of Economystics as I do. Well, it takes years to master economystics and he’s busy unplugging toilets, so we can’t blame the poor plumber.
The reason economystics is so hard to master is it is completely counter intuitive. For example my phone is ringing off the hook right now as doctors and lawyers are scrambling for advice on how to deal with the tax changes that are coming. My advice, although fairly expensive, is the essence of simplicity once economystics is mastered. “Simply raise your rates.” Sure, the invisible hand and supply and demand and all that will mean some doctors will be getting an H1-B and access to healthcare in Canada will become more expensive until that pesky supply and demand thing balances, but who wants to live in Toronto anyway? Sacramento is way better. You can golf in December. Always important for doctors.
I’m still working on a solution to the supply and demand question. The ultimate goal of economystics is a free lunch for everybody and no one actually working in the kitchen. It’s coming but it requires more math.
Chretien and Martin reduced the debt by $90 billion and Harper increased it by $150 billion, so why harp on the Libs? Mulroney’s $500k capital gains exemption in 1985 helped his wealthy supporters but the resulting increase in the debt would just about cover the cost of the OAS rollback. You protest both the TFSA rollback, which marginally affects the wealthy, and the OAS rollback, which maximally benefits the poor. The rich will always be with us, but the pendulum always swings.
Bring it on Wild Bill with the yearly foreign tax that will contribute to more than simple municipal taxes…our Canadian infrastructure needs support from the people that treat homes in my neighbourhood like commodities. The guy that bought the home kiddie corner to me for 200k$ over asking 2 minutes after it was listed last year has yet to qualify for a Canadian visa. This has been going on for close to a year! Late last summer, abandoned pool now a marsh cesspool, grass overgrown, weeds 2 feet high, comeon…but…this is NOT abnormal for this neighbourhood, the families are moving out, realtors are buying these homes for overseas clients sight unseen! How do I know? When you walk a grey dog, you get to know all the neighbours who are gleefully sharing their experiences with getting insane prices for their mid 80s builder Grade home.
Should I move? I’ve lived here 33 years, now have all the amenities stores, coffee shops, public transit, hospital etc nearby, this stuff went in believing the people who bought these homes would LIVE IN THEM throughout the year.
We have paid 42% income tax for years, we support the Canadian infrastructure, our medical care has always been there when I needed it, I’m proud of our Canadian society, paying taxes to ALL THREE LEVELS is necessary to maintain the wonderful cosmopolitan and diverse secure world I have around me. A foreign tax should NOT be viewed as a threat, simply take pride in contributing to the society you have already invested in.
Wtf happened to the markets today?!?! I’m confused..
@ #30 JSS,
having a wife and kids doesn’t automatically make you heterosexual.. sorry
.
Doctors ‘hire’ their spouses to defraud(not avoid) taxes. All this Manager spouse do is put Personal spending receipts in a bag to defraud further taxes.
Fraud upon fraud upon fraud by tax thieves(not tax avoidance, theft!)
What does a employee has to avoid tax? Nada. Can expense personal meals.
Go Trudeau!! Fair tax policy, and tax the fraudsters.
Maybe an inflation test on home ownership would slow the speculation – and also provide a more fair tax collection system for genuine homeowners.
http://business.financialpost.com/fp-comment/stephen-jarislowsky-canadas-capital-gains-tax-is-already-highly-unjust-raising-it-will-make-that-worse
“And never forget that Mr. Trudeau is our leader because five million young people voted for the first time”
“So far the T2 government is on track to add at least $100 billion in just four years”
Ya think they care? where’s the weed JT?
#44 Olive on 03.21.17 at 8:04 pm
Sweet Garth — you are an imaginative story teller !
Define debt forgiveness. I dare you !
—
It’s the un-pushing of the computer keyboard that created the imaginary money.
Wild Bill said let their be taxes and T2 saw the taxes an agreed this would good. Freebies for everyone…….
All the moisters agreed they were good and loved the new taxes something for nothing was real- just like the snowflakes were taught in university
The middle class saw that taxes and were neutral, more taxes but little to no change in there life or income, the elders of the group were very worried, they saw this before and knew it was not a happy ending. Seemed that some in the middle class were very close to being called 1% ers – these folks were getting scared
the 1% were furious, riots were breaking out as all the satellite phones networks crashed as they rushed to call their off shore lawyers and financial dudes too move even more money away from T2 coffers. Many in this group decided to retire early or scale back income, 54% was already enough they thought, now they want 60%.
on a serious note– with all this new debt being added, watch out for a soverign debt crisis right here- front row seats coming in Q3 2018- Q1- 2019
To #46
My dear, why do a high income employee pay high taxes, but high income doctors lawyers get away with dividends?
And I don’t think complaining about GST and all is fair. Everyone pays that.
Oh, if you think doctors and lawyers don’t “expense” personal meals and car gas as business expense, give me a break. Seen plenty of that.
You know what, let the Doctors get H1B and go. Don’t threat.
#30 JSS on 03.21.17 at 7:28 pm
Watch for grammar nazis I think you have spelling mistake in your post.
Hey Garth, who gave you permission to point out evil feminist tactics in your post yesterday, you dirty misogynistic globalist. You really did not think we would let you get away with this hate speech did you? You really need to check your elitist white male privilege already.
#107 A Reply to #44, #52 Economystical
“As you travel down the Road to Wigan Pier, you’ll come across Animal Farm on your left, sometime around Nineteen Eighty-Four. Keep the Apidistra Flying.”
Sir, you are a poet and a scholar. But you have to understand that Orwell’s work is no longer viewed as a warning but instead as a “how to” manual. Even Orwell never imagined the NSA. We have gone far beyond his sage advice.
Until the govt stops bloating itself and the RCMP arrest money launderers – Canada will continue to get worse.
Nor Harper either, Garth, and I don’t know how many governments were elected with absolute minorities before Harper. The Elections Canada site has the numbers that could be crunched to find out, but that would not delegitimize one single government. So your point is?
Aspersions don’t change electoral results.
The point is simple. Democracy speaks with many tongues. Leaders should coalesce people, not divide them, always placing the public interest above their own, regardless of consequence. — Garth
#38 vanrentor
Re: Sample Garthfolio 3.0
——
Thx for the link. Im not Moneysense follower. I did a similar list just today using some of Garth’s posts and other sites. I used Vangaurd ETFs for my notes but hadn’t started looking at other comparable funds to consider. My husband and I really need to an effective portfolio set up and I’m a fan of the KISS theory. With our small business being so busy and LIFE we need a good plan soon but it needs to be low maintenance. Garth isn’t a fan of the Tang bank funds – the new Dividend fund is aimed at Boomers (hello) but the weighting was off for us plus the fees will be too much over time once we’re fully invested.
The federal budget but isn’t the term being misused here. A budget means to live within your means, try not to overspend, reduce your debt all with the income you have coming in. No budget here just deficit spending and taxing that is what I see. I think the government needs to go those reality shows on how to live within their means.
“It’s all about giving more to people even when it means looting the future…” above article. Is that like buying votes pretending to be for the middle class? And forget about how a nation should be govern by #12 A Dollar is a Dollar is a Dollar” “Small business owners, yes, give them lots of deductions. They create jobs here, not in China.” So true about deductions for small business but according to the free trade agreements who needs them, right? We get cheaper products and everything is so cheap to buy.
And many young people (the ones I know) do not find J2 attractive and would not do a selfie with him. When J2 shakes hands he is the first one to extend his hand not the other-way-around, big difference there.
To claim the your house as residential I believe that you driver’s license, care card or other have to have that house address on them. My take and experience unless changed.
#58
SHOULD the million dollar word here….
Are US dividend funds within TFSA still taxable by IRS? (Not sure of the exact wording of rule.)
If yes, wonder if it changes over next 4 yrs, i.e. tax/ fees increase? We’ll see.
Lets just re-cap the last 8 years of housing predications and ‘should have’ events linked to the correction of a 13 year bull run….
FEDERAL MEASURES TO COOL THE MARKET
The feds have eliminated zero down/40 year mortgages; increased the required downpayment; change the loan to equity rations; clamped on investment properties. And prices keep going up….
A DELUGE OF HOUSING SUPPLY
Nationally, we are building 2 homes for every person. We heard of overbuilding in Vancouver in 2011 and 2012 that would flood the market. We heard of 40,000 condos coming online in TO that would flood the market. Now, the condos in TO have been absorbed and all he hear about is a lack of supply in TO and Vancouver. Prices keep going up…
MOUNTING AND CRIPPLING PERSONAL DEBT
Every year, Canadians achieve a new ‘record’ level of debt that blows everyone away and will cause the house of cards to fall. Years ago we were spending 140% of our income and now its 167%. This is much worse than in the US before their price correction. Prices keep going up…
NATIONAL AND PROVINCIAL RECESSIONS
Anemic growth and a transition to part time work from full time, coupled with commodity price collapses, were all supposed to cripple the market. We have had several quarter of recessionary growth, and a collapse of the major revenue generator in several provinces. And prices go up and remain flat in those provinces with ‘recessions’…
CREDIT TIGHTENING
Our so-called prudent banks were engaged in tightening credit and increasing their due diligence on mortgage approvals. Yes, prices go up despite investigations into fraud and bending of the rules….
FOREIGN CAPITAL AND RESIDENT CONTROLS
Currency clamp downs in country’s like China, coupled with a BC foreign buyer’s tax, were supposed to stall if not kill the market. Well, Vancouver and its surrounding communities are having their prices re-inflated after a temporary lull. Prices going up…
So to summarize – the feds try to cool the market; we have recessions and anemic growth; and explosion of personal debt; overbuilding of houses; rising interest rates; foreign buyers taxes; and all that happens is that prices continue to climb in the hottest markets for years…
So what exactly is going to stop this juggernaut that has not stopped it after 13 years?
You’re right. It will go up forever, and make history as the first asset class in human history to have done so. — Garth
I have no idea where Morneau lives but if it’s Bennington Heights, then he’s not within walking distance of the best Leaside Loblaws. That Loblaws on Bayview is very disappointing, just like the one at Broadview and Danforth…yuck. The good one is at the foot of Laird.
I said ‘big’ not ‘best.’ — Garth
#12 A Dollar is a Dollar is a Dollar,
Quite frankly “no” a dollar is not always equal. Some dollars (dividends) have already been taxed at the corporate level. Since that’s about half of the personal level paying half on dividends is about right too.
Wages on the other hand are deducted from a company as expenses so haven’t been taxed yet.
Are the Libs planning to put the OAS back at 67 years? I thought I heard that somewhere.
Anyone know?
65. — Garth
StatCan 2010 Avg. AFTER-TAX Income Quintiles (equal sized groups):
Lowest quintile $16,000
Second quintile $28,000
Third quintile $38,500
Fourth quintile $50,600
Highest quintile $85,500
Canadian Centre for Policy Alternatives:
-CEO pay increased at twice the rate of the average Canadian since 2008 (top 100 corporate chiefs).
-in 2013: $9.2 million avg. salary vs. the average Canadian salary of $47,358.
StatCan 2011 Top 1% (Occupation Group | % of 1% | AVERAGE INCOME):
Management Occupations 38.8% $421,200
Health Occupations 14.3% $333,600
Business, finance & administration Occupations 13.7% $398,500
Occupations in education, law and social, community and government services 11% $365,800
Natural and applied sciences and related occupations 9.9% $335,600
Other occupation groups 12.3% $335,000
BOO HOO, if the highest quintile and the 1% have to pay higher taxes. Ask any Canadian in the lower 4 quintiles if they give a damn about the over taxed 1% or Highest quintile. There is always the USA you can move to and enjoy pluralistic Orange Man.
NOTE to Garth, add Management to your “Doctors, Lawyers & Entrepreneur Tax” narrative as they comprise the largest portion of the 1% and have the highest average income (and are equal in number to your 1% narrative occupations added together).
#47 Billy Pilgrim on 03.21.17 at 8:11 pm
Chretien and Martin reduced the debt by $90 billion and Harper increased it by $150 billion, so why harp on the Libs?
………………..
Chretien and Martin stole! about $54 billion from Unemployment Insurance to do that.
A good comment on democracy (can’t recall source at the moment):
When democracy works nobody gets everything they want but the majority are satisfied with results.
I’ve paraphrased but it’s close. I do agree democracy has many different tongues so it’s hard to define concretely. It seems those who do put voters interest ahead of career or other gain fight an uphill battle (like sneezing in a windstorm.)
What Trudeau, Butts, and all the lefty loons don’t know. They follow a mental case without question. The following is a chat I had with the guy running earth back in Vegas near area 51, Shlong Zumanga my flight instructor on Nictonite. The secrets of the universe are in my book. I will have paperback copies available at the general Store in Belfountain on Sat May 13th.
Free of course for blog dogs who don’t punch me. Signature is going to cost you 10 bucks for making me work.
“Smokey just look what I’ve done in the western world. I’m worth five hundred trillion dollars. I own and control all of the mainstream media, every politician, central banks in every country. The United Nations, Agenda 21, My new religion the climate change, gender wars, race wars. LGBT. Open borders. It’s all part of my destabilization plan. Once I economically and psychologically destroy the western world it will be easy for me to come out of the shadows and be the world’s savior. People will kneel to me and my hybrids. Humans in the western world are stupid by design. I get their kids early, my curriculum ensures the removal of critical thought and thinking. The biggest ass kissers get rewarded with the best obedience certificates. The icing on the cake is the idiots pay for it by going into debt at my banks to pay for my schools, a win-win. I’ve made the latest generation of students soft little snowflakes, easy to control and they even police themselves. They are programmed to go hysterical if they sense someone trying to educate them, this is my best generation ever. Now the Russians and Chinese are much harder to deal with, that’s why I need your help,” he said.
You’re not afraid of Trump? I asked
‘Wouldn’t an increase in capital gains inclusion Hoover not only mutual funds in a non registered account but also ETF’s as well?
Why point out mutuals and not ETF’s?’
etf’s , stocks….all would be affected. ONLY, if you sell the product
don’t sell. Come 2019 this Trudeau chap will be sent packing…….i hope
“And never forget that Mr. Trudeau is our leader because five million young people voted for the first time – and voted for the sexy guy with tats, a hot wife and MaryJane as his muse.”
Elections Canada does not agree with you, Garth:
1,074,217 votes cast by first time voters (out of a 1,843,131 population) in the 45th federal elections (2015), not 5 millions as you stated.
Source: http://www.elections.ca/content.aspx?section=res&dir=rec/eval/pes2015/vtsa&document=table2&lang=e
Conservatives have the worst economic record of all Canadian parties. Harper sucked. The Liberals in 1992 inherited a $42 billion deficit from Mulroney – in 1992 dollars. By the time Harper took over, there was a $13 billion surplus. Nine straight years of trade surpluses under the Liberals. (Harper had zero). Economic growth double Harper’s rocking 1.7% as he governed coming out of the recession.
But don’t stop believing. Hold on to that feeling. The numbers say no, but go on believing that Conservatives are great managers of the economy, and great fiscal managers. In Canada they are the worst, both federally and provincially. NDP is the best. Why? Tax cuts on the rich and corporations don’t pay for themselves. You can believe they do, but the don’t – the fiscal and economic record doesn’t lie.
Useless debate. Th only salient point right now is the Libs promised a temporary $10 billion budget and it looks like a semi-permanent $30 billion hole. Seems indefensible when there’s no recession. — Garth
Typo.
The 2015 election was the 42th, not 45th Federal Election.
Wait…now democracy is bad around here?
The fact is Garth, the wealth gap grew completely out of control until eventually the majority found is somewhat disgusting.
Would you just let the wealth gap continue to grow? Is that good for economies?
Trying to close the gap by taking from the wealthy and doling it out through government will not work, and never has. We are not all equal. — Garth
Screw those hard working university entrepreneurial educated folks who work 18 hour days to build the companies that create jobs.
Instead we penalize those dudes and give breaks to the lazy beer drinkers.
The Canadian way…….What a shame!!
I’m waiting until tomorrow before I decide to sell Shlong Branch.
If T2 goes with the DR Tax, I got to sell, no point living in the city, close to gigs if I can’t legally split income doing my hobby with someone absolutely unemployable.
(Unemployable) For the dogs that read my book think. “Heather.”
As far as capital gains on Real Estate flippers, They will just sell it to their kids at what they paid, six months later the kids will sell it tax-free, take a small cut and give the loot back to mom and dad. PROBLEM SOLVED
I’ve read some conspiracy theories about debt forgiveness. I’m actually surprised to be reading it on this blog. If that’s true are you suggesting we load up on real estate and debt like every moister in Toronto?
Anyone who doesn’t mind the fact that 1% owns most of the world’s wealth, and argues against a government budget that nibbles away at the problem, is advocating for continued political and economic corruption.
Useless debate. Th only salient point right now is the Libs promised a temporary $10 billion budget and it looks like a semi-permanent $30 billion hole. Seems indefensible when there’s no recession. — Garth
……
It’s going to social infrastructure which has a never ending appetite, the rest going to where George Soros want’s it to go.
This is good stuff. Much prefer listening to G’s insiders perspective on government than anything else. A sound Tory voice where there do not appear to be many these days (at least running to lead the party). A conservative view that is tolerant of Canadians’ differences, compassionate enough to recognise inequity exists and some need more help than others while encouraging individual striving strikes me as entirely sensible.
simply end all private ownership and all this trouble goes away, we simply work for free and live in goverment housing, we can have our huge amount of coupon on our debit card when we go to the grocery store, we can have a car, give one to everyone, nothing fancy but everyone gets one, and free education and health care for everyone, we are almost there. Trudeau is the man, thats why i voted for him.
i look forward to the utopian society mr trudeau has brought us to, we dont have to worry about poison in the atomosphere, we can all be smart, and healthy.
sure, someone will have to go to work, why do i care its not me. keep bringing in the ethnics, they like to work, promise them stuff, they like that, have for 150 years, a shinny new house and car and selection at the grocery store should do it for most of them.
doesnt anyone know the true story or Canada. it seems like no one reads the book, you think your like a USA light or something. far from it.
@Garth #75. No recession, but growth hasn’t recovered yet, nor has there been time. Not a lot of surpluses are run at growth < 2%. Deficit will come in under $30 billion.
@#77. Highly unequal society was solved 1930 – 1970 by increasing union density, increasing real wages of ordinary Canadians, high marginal taxes, huge new social programs and public pension, and much higher economic growth than today. Sounds like some serious economic redistribution via government to me. Sort of like how California's more equal society is kicking ass down south.
Rates vs Capital on 03.21.17 at 9:02 pm
“Lets just re-cap the last 8 years of housing predications and ‘should have’ events linked to the correction of a 13 year bull run….
Well, Vancouver and its surrounding communities are having their prices re-inflated after a temporary lull. Prices going up…”
The “bull” run has ended for everyone but Toronto, my friend.
Vancouver is still experiencing significant price drops.
http://www.myrealtycheck.ca/
Average Change: -3.35% Up:52 Down:217
Overall $ Change: -29212310.00 Average Change Amount:-108595.95
Someone made a point, late last year, that this website doesn’t establish a trend because a couple of months don’t make a trend. How about 6 months and consistent drops?
I love the “bull” comments on dropped asking prices. Two years ago it was the “bears” stating that the asking prices were wishful thinking because they were going up so fast. Now, prices are dropping and the “bulls” are saying that the asking prices were just wishful thinking.
If a frog is put in cold water which is then brought to a boil slowly, it will not perceive the danger and will be cooked to death. Not really true but it kind of sounds like this market.
I can’t believe how many people don’t know about the Pension Income tax credit- $ 2000 a year tax free if you are over 65.
It’s a sitting duck , so much for planning to get $4000 a year as a retired couple.
Lose it this budget or next?
#80 Sitting on the toilet thinking on 03.21.17 at 9:34 pm
I’ve read some conspiracy theories about debt forgiveness. I’m actually surprised to be reading it on this blog. If that’s true are you suggesting we load up on real estate and debt like every moister in Toronto?
….
T2 is in a death and destruction cult, not even knowing it. He’s that stupid. Butts no so much. A disgruntled victim Nefie getting revenge.
Moisters think he has their back. He will follow orders from really evil people.
Moister will get crushed unless they read Smoking Man and can read between the lines.
There are two kinds of debt. One where you have control (personal debt), and one where you don’t (government debt).
When government debt is larger than your personal debt…one want’s to cry!
Bye
#14 – Self Directed
$250 for shoes is still cheap. Anything decent that you can get a cobbler to fix is going to start well north of $350 unless you find a good sale. Get shoe trees and don’t wear them every day, let them rest, and they will last years and years. I’m at almost 6 years old for my best pair now and they are still awesome.
If you are trying to dress properly, don’t cheap out on shoes. And for Pete’s sake, polish the things too. Nothing worse than seeing nice shoes look like garbage cause a guy is too lazy to look after them. Attention to detail…
Good dress shoes are way better on your feet too.
This is not a shoe blog. Sadly. — Garth
Something unsettling about the state of affairs in our country is the very real possibility that, slowly but relentlessly, ethics could be redefined in a most dystopian fashion.
To wit: those who have saved for a rainy day, avoided taking on great debt, invested, and, through living within their means have achieved wealth, will become villains and must thus be dealt with accordingly.
Perhaps our resident Economystics guru is on to something, and truly, debt is wealth, prudence is risk, saving is wasting. 1984 may well be our next stop.
If our democracy is one led by the free-spending, for the free-spending and the (fiscally) carefree, is it unreasonable to expect that, sooner or later, inflation will become our one true ruler?
And if so, will this king not reward those who enthroned him? What was once great debt will fade away, but only for those faithful enough who embraced it. The savers, investors, the debt-free and all other such detestables will watch in despair, as those with leveraged assets reap their just reward.
Maybe there is a deliberate plan, a brilliant roadmap to lead the indebted to freedom via currency annihilation. Who needs debt forgiveness when hyperinflation will do?
Screwed? Likely. Wrong? Depends on which side you are on and how much you owe. Democratic? You bet.
To paraphrase: “If you want a vision of the future, imagine debt, stamping on a human face – forever.”
JD is right for tonight.
The fact is Garth, the wealth gap grew completely out of control until eventually the majority found is somewhat disgusting.
Would you just let the wealth gap continue to grow? Is that good for economies?
Trying to close the gap by taking from the wealthy and doling it out through government will not work, and never has. We are not all equal. — Garth
—-
As if we were equal before the huge wealth gap growth.
We were not.
More importantly, what’s the solution?
Where is the “leaders should coalesce people, not divide them” principle now?
Must be some very, very healthy blog dawgs here.
“Doctors taking off to the States or working part time? Screw em, I don’t need any operation and never will.”
If a Canadian Citizen buys an old, worn down property, restores it, rents it out and sells, he will get taxed at an obscene amount as a “speculator”, but foreign buyers can come in, pay more than asking, and all cash, and then resell at a profit and take all the cash out of the Country without paying a penny in taxes. Despite this, we have dummies as elected officials too timid too tax foreign buyers.
You are incorrect. — Garth
Does anyone know what the main two or three costs are or programs are that are going to be responsible for the $30,000,000,000 deficit? I am having a hard time figuring out where this gap comes from. It’s certainly not Defence. It can’t be 10,000 refugees. With Harper at least we knew it was bailouts and infrastructure. What could Trudeau be spending all this miney on in addition to the 1.8 trillion we usually spend.
A deplorable would never vote for T2. Trudeau and Trump are polar opposites.
T2 is increasing taxes, Trump is reducing them. T2 is increasing environmental regulation, Trump is cutting it. T2 talks of phasing out oil, Trump wants to increase fossil fuels. T2 is so politically correct it is nauseating, Trump does his best to be as politically incorrect as possible. The people who vote for T2 are snowflakes who need a safe space when they hear the word Trump. T2 and Trump are catering to different groups entirely.
Two groups with the same goal – everyone else like them. And that’s deplorable. — Garth
The line of the night, Heather says to me, “no one your age increases smoking and drinking, they cut back, they want to live.”
I love this woman, see gives me a Cuban cigar and mixes my JD with Rum while bitching.
They don’t make the woman like that anymore. I’m blessed.
Garth, there will be a recession in the US now. Trump is damaged goods and wont get a single thing done.
Meanwhile the fed went ahead and recklessly raised rates. The market is poised to give back a few thousand points. If Trump gets impeached or simply just blocked for 4 yrs thats not good for business.
2017 CEO Checklist:
________________
1. Outsource manufacturing department to 3rd world sweatshop – check
2. Outsource IT department to India – check
3. Expand use of unpaid interns – check
4. Recommend to management team, a 20% across the board layoff next month, Temporary Foreign Workers to fill in any gaps in manpower – check
5. Recommend a 5% cut in benefits and pensions to remaining staff
6. Attend meeting with legal and PR team to discuss strategy re: controversial and possibly illegal sales practices – damage control strategies – check
7. Meet with Board to discuss my 15% compensation package increase – check
8. Have Payroll department direct deposit mandatory minimum bonus into e-savings account – check
9. Exercise retro-active stock options, then sell for a tidy profit – discuss shelter strategies with KPMG Rep – check
10. Check prices on new line of private jets – check
11. Issue press release to media threatening to close up shop and move south of the border if the Canadian government increases tax on stock options or capital gains in the upcoming budget – check
12. Issue another press release to media threatening to close up shop and move south of the border if all three levels of government don’t give immediate tax concessions and all-out grants for R+D – check
13. Book lunch appointment with local KPMG Rep regarding you know what – check
14. Arrange limousine for 2 o’clock golf appointment – check
Phew! Being a CEO is hard work!
block chain universe:
you stay in character – you warn us about debt, that interest rates are going up. The same message applies nationally – you warn us about debt, that interest rates are going up.
right now money is basically numbers in a computer. Debt is more numbers. What if money and debt are block chain entries that run up and down every aspect of society? That is you own your house because you paid for it and the money came from the money your employer gave you which came from the money it received when it sold some products. All these transactions are entries maintained in the block chain universe. You could not rob a bank – what money? where did it come from? nowhere – therefore it’s not money. Same thing for debt.
http://torontolife.com/real-estate/think-going-go-even-sky-high-wealth-expo-attendees-talk-torontos-housing-market/
Some real winners here alright. Including Pitbull.
Real Estate has been the religion for awhile now, and I remain unrepentant. It’s sad that people need to attend a $250 a pop seminar that sells them new wave BS designed to stroke their insecurities while playing on their FOMO.
Aren’t Pitbulls illegal in Ontario anyway?
Looking for a 10+ Acre recreational property, where should I start looking?
The Nova Scotia government is handing over $10 million to IBM to create 250 jobs.
$40,000/job.
http://www.cbc.ca/news/canada/nova-scotia/payroll-rebate-expansion-nova-scotia-imb-1.4035226
You’re right. It will go up forever, and make history as the first asset class in human history to have done so. — Garth
—————————————————————
I do love the facetious retorts. We need more of this Garth!
#99 Long Branch Apprentice on 03.21.17 at 10:37 pm
http://torontolife.com/real-estate/think-going-go-even-sky-high-wealth-expo-attendees-talk-torontos-housing-market/
Some real winners here alright. Including Pitbull.
Real Estate has been the religion for awhile now, and I remain unrepentant. It’s sad that people need to attend a $250 a pop seminar that sells them new wave BS designed to stroke their insecurities while playing on their FOMO.
Aren’t Pitbulls illegal in Ontario anyway?
Looking for a 10+ Acre recreational property, where should I start looking?
….
Buy a boat in the Caribbean, avoid hurricanes, 90 days on the islands. Move to the next. No residents. Tax-free. .
If Trump gets impeached or simply just blocked for 4 yrs thats not good for business.
—
Impeached for what?
… Or follow, telling throngs what they wish to hear, then obsessing over ratings? …
______________________________
Ah, … not too, too often – rare, actually – one finds a sentence with a word “throng” in it. Here is one more:
“A young woman stepped forward from the throng and asked, “0′ great prophet, tell us how we might find love that is unconditional, unwavering and unending.” The prophet did not answer right away. He looked off into the distance, gathering his thoughts. Silence descended upon the crowd. Then he turned his gaze upon the young woman and said, “Get a dog.” ― Kahlil Gibran
F.S. – Comox, BC.
It is really incredible, the number of people that come to this blog and believe that doctors, lawyers and working professionals are “super rich”.
………….all the while that Galen Weston and Suzanne Rogers must be bursting a gut laughing.
(BTW – check out Cuba and Venezuela some time to see if extreme socialism actually makes people ‘EQUAL’)
The Boy Wonder was born with a silver spoon in his mouth, has always been a government employee of one kind or another, never worked for a company, therefore, doesn’t have a clue what it means to live within a budget, generate income, make a profit or live frugally. He lacks any financial discipline.
Like his father, he’s got his hands on the country’s credit card and there will be no limit to his spending appetite. $30 billion deficit is just the beginning.
By the end of his 4-year term, the Canadian economy will be on it’s knees, the national debt will be more than a TRILLION dollars, the Canadian dollar will be at .60 US, the TSX will be at a generational low, taxes will be sky-high, businesses will be going bust left right and centre.
There will be no electoral reform, very little infrastructure projects, the Boy Wonder will be just as hated by the Canadian public as his father was when he went for a walk in the snow, and he will lose the next election in a landslide, then go off to the Bahamas to be with his globalist, feminist, multi-cultural, LGBTQ-friendly buddies admiring himself in the bathroom mirror and telling himself it was all Morneau’s fault.
A leader… That’s the funniest thing I’ve heard all day..
#9 RentYVR
I’m conflicted on the so-called doctor’s tax. Many of them (and lawyers too) just happen to be fortunate enough to have their income classified as dividends. Why shouldn’t they be charged the same as other highly skilled white collar workers who face much higher income taxes?
——
My mother, who was a CPA, always told me dividends are good until a certain earnings point.
A few years ago I figured that out. Wife,kids,health costs required me to get extra cash from the money tree.
I was wrong.
That year I paid 53% in marginal taxes if you consider taxes your company pays.
The next year, I started paying myself a full paycheck and max’d out on RRSPs. So far my marginal tax is a lot less. I also don’t work full-time anymore. Why should I? That tax man will just take it away.
I can thank my CPA neighbor. He confirmed that was the correct path for me. What a few beers can buy you these days …
Dividends are great if you a starting up. But later on. Take the paycheck, max out RRSPs and get your wife to build up her career.
Don’t work so hard. From what I can see, that’s what the Liberals want in terms of small businesses.
Now, my next company will be in the States once they drop the tax rate there and I have a great idea and Canada will not get a cent.
No Mercy
#50 Mike
As much as I like your thinking, it is not obvious to many people that keeping what they rightfully earned and paying the legal amount they owe is defrauding the rest of us. However we who are more enlightened are well aware that it is. Paying one’s wife for questionable contributions to the family business should not be allowed. But paying B&J for their questionable contributions to society most definitely should be allowed. Even though it is tax payer money. But again we are back to the beauty of counting the money multiple times. We must remember that the more B&J get paid, the more taxes they pay, so the deficit, well, it goes up but so does taxes so once looked at through economystics it is a good deal. We should pay B&J $10,000,000 a year and tax them $9,000,000 a year. Sure, they would get $1,000,000 a year after tax but look at all the tax revenue! It’s $18,000,000! That’s a lot of scratch. This is something that my CEO clients have figured out years ago. It doesn’t matter how much tax you have to pay if you can embed even more salary and fees in there.
Now some who employ their wives in the business claim there is no fowl, because she is working and she also pays taxes. “Just like a regular employee!” they may claim. For example my electrician’s wife got laid off and took over doing the books and payroll for her husband, and thus drew a salary from the company (and paid taxes). As you and I both know this is plain and simple theft, my electrician should have hired Deloitte for $350 an hour and baked that into his rates that he charges me and you. No problem for me, because then I just raise my rates and I only hire the electrician if there is something wrong with my hot tub that isn’t plumbing. And anyway Deloitte is obviously one of my customers.
#55 Mike (same Mike I assume as both comments were brilliant, not the work of an ordinary man)
My dear Mike don’t you see we are in total agreement? Why should a doctor get away with paying a 25% corporate rate and then a 25% dividend rate, when he can salary it all out to himself and only pay a 50% rate? It doesn’t make any sense until you use economystics. Now, B&J can raise the corporate rate to 50% and then also raise the dividend rate to 50% and capture far more in taxes. Perhaps up to 75% of the doctor’s after expenses income (assuming his accountant isn’t smart enough to just salary it all out and return him to his previous tax rate but starve the business of capital). It’s brilliant and I am glad you are on board. So many people don’t understand.
The H1-B will be an important factor in dealing with the pesky “invisible hand” to allow this all to work. As taxes go up, rates will go up, and demand will drop so we need to get rid of as many cheating, lying doctors as possible. Holistic practitioners are much cheaper so this will also help with the inflation rate as people “make substitutions”. Of course I myself will not be seeing a holistic practitioner any time soon, I am not paying for distilled water (unless it’s in fine scotch), so I will simply raise my rates and continue seeing my regular doctor, even if I have to fly to Sacramento to do so (you’ll pay for that too).
#87 Two-thirds
“Perhaps our resident Economystics guru is on to something, and truly, debt is wealth, prudence is risk, saving is wasting. 1984 may well be our next stop.”
You are nearly there my friend. Perhaps you would like to come see me at my next presentation? It’s a little like the recently discussed event in Toronto where 15,000 people reportedly paid $150 each to learn how to get rich in real-estate and there wasn’t even a concert. But it won’t be quite like that. I charge $300 a ticket and it will be worth every penny. It’ll be a little like an Alan Watts lecture and then I’m going to see if I can get the remaining Rolling Stones as the closing act, so you’ll definitely want to be there.
Holy cow. I hadn’t clicked on the comments in a while. Made it through about 5. Heavily deranged. Is this what you have to deal with these days, Garth? Good to see Smokey lighting up still. The rest are shotgun holder types finally expressing themselves. You’re killing it for the rest of us. Not that you care…
Re : impeached
If Trump gets impeached or simply just blocked for 4 yrs thats not good for business.
—
Impeached for what?
———
For going on national TV and asking the Russians to hack /find Hillary’s e-mails. Or did you miss that ?
#95 Lee: SM answered your last question.
the rest going to where George Soros want’s it to go.
#113 The R
“For going on national TV and asking the Russians to hack /find Hillary’s e-mails. Or did you miss that ?”
That was a condescending joke meant to criticize the FBI, NSA, the MSM and Clinton herself for having an email scandal (she could have released them herself if she was being forthright), that any New Yorker instantly understood. Fact is you were the one who missed it.
Folks, as I’ve stated before, what we have to understand about the Trump monster is that he does not talk to liberals, SJW’s, and the pink vagina costume monsters. He knows they are lost to him and spends not one minute thinking how he can convert them to his side. He speaks directly over them to his supporters. Most of whom think the email thing was a big cover-up.
Anyone see this article?
http://bc.ctvnews.ca/new-data-shows-higher-percentage-of-foreign-home-buyers-in-b-c-1.3002740
“Further, nearly 10 per cent of property transfer taxes in Metro Vancouver involved foreign nationals, compared to 18.2 per cent in Richmond, 17. 7 per cent in Burnaby, 10.9 per cent in Vancouver, and 8.4 per cent in Surrey.”
Thoughts? I was under the impression it was at 5%?
Trumpinator VS Terminator Round 3 of the twitter fight:
Terminator 1
Trumpinator 0
#113 The R
Oh and I forgot Trump’s joke was even more nuanced than that (please read the first response first). Trumps joke, distasteful as it may have been (which is not surprising for him) came in a period where Hillary and the MSM were blaming Russia and Wikileaks for the release of what emails were available, while trying desperately to divert attention away from what was in the emails, and why many were still missing. Trumps joke was brilliant in a way, he basically said if we don’t have the missing emails and the Russians did the hack why don’t they provide the rest of them, discrediting the whole narrative in one sentence. If you really think about it, it was close to brilliant.
Anyway according to Clinton all that was in the missing emails was cooking recipes she was sharing with her daughter, so no worries.
#34 Michael King said:
Most Millennials may have voted for T2 and will not be concerned about the frightening deficits on the horizon. However, he pissed off many of these same voters by reneging on electoral reform. They may not vote for him again.
——
Well said. Fiscally speaking I’m a-ok with T2 as I’m a democrat at heart who jumped ship to vote Harper out. However, as the above poster said, T2 pissed A LOT of us off by reneging on electoral reform. In fact, I wrote the Liberal MP I helped vote in about this, reminding him of the fact that it is not the Conservative Party that his party needs to contend with so much as the NDP—if all us NDPers that voted the liberals in last election split again, we in for another run of conservative governments in this country.
I come back to this conservative blog regularly because Garth is a an intelligent and entertaining writer who makes compelling arguments for his political point of view. It’s opened my mind a bit as I tend to think of the country bumpkin redneck gun-toting get-rid-of-taxes and bring-back-the-Bible, ban abortion and the rights of everyone but white men type that tends to vote conservative in the backwaters of BC whenever I think of conservative voters. But the fact is people across the spectrum who believe in democracy (as opposed to ignorance as bliss, despotism, or fascism) share similar values, such as: “Democracy speaks with many tongues. Leaders should coalesce people, not divide them, always placing the public interest above their own, regardless of consequence. — Garth” That was well said, too.
Not sure millenials are concerned about taxing the crap out of Drs or small buisiness owners (250-500k). The problem is million dollar incomes and huge corporate profits with no living wages for the majority of the population. Thanks globalization..without debt vehicles we would appear more like developing countries..rich and poor…middle class is living on future income that may not be there
The reason the FBI, CIA, and NSA cannot find the missing Clinton emails is because they were to and between them. The Russians probably have them but they are more interested in keeping their methods secret than releasing the contents.
Clinton probably broke no law other than to transmit state secrets using an unapproved device. That still is a crime. And it’s becoming pretty apparent why.
Martin Armstrong The Solution The Bond Bubble
https://www.armstrongeconomics.com/uncategorized/the-solution-3/
I used to worry about government debt when there was still a chance it could be repaid.
Not anymore. Quite liberating. Now I just laugh when I hear of the stupid things government does with money.
(Ever notice that if anyone ever suggests a cutback images of starving children magically appear on the front pages of every newspaper. The cuts mean babies will die! Oh, and old folks! Starving to death as we speak! But of course we won’t cut the millions for that study that examines if water is wet.)
Those clever Japanese have shown central banks can and will fund any amount of government debt by buying it all up with little pieces of paper, digital ones even. Magic!
Debt no longer matters. What matters is the inevitable decline in value of whatever dollar or peso you measure your wealth in.
Then there are some other long term effects of punishing saving and investment, but who cares? Let the millenials deal with it.
Spend baby spend!
Maybe we can build a wall somewhere. Then tear it down and build it again. Nobel prize winner Krugman thinks that’s a great idea. (Except when Trump says it, then it’s a bad idea, not sure why.)
You know Garth, you make a good point about it being a mistake taxing anyone silly enough to become a doctor. In a sense you are right, but I feel you are missing the point.. There are people making millions (and by millions I mean hundreds of millions).. Those people (corporations) write everything off and offshore tons of money yearly. They hire experts so that they can avoid taxes and are a stark contrast to the single mom trying to raise a child, or a father trying to support a family. Those businesses/people have to pay their fair share. The USA is a prime example of the disparity between the rich and poor.. You have guys like the Koch brothers that earn millions of dollars daily (I actually heard it was every minute).. But why does anyone need that much money? I mean, how many cars/homes do you really need to own? Maybe they should give back to the needy instead of buying up all of the politicians.. **end of rant** have a nice day.
As you’ve been forewarned here, the Libs may up the capital gains inclusion rate – Garth
I doubt that VERY much,it’s not in the Liberal program, there was not even a trial balloon (and there would be one for such an important change) and no government in their right mind would do that right now, especially when their main objective is better long time growth.
What they might do is change some of the rules to slow down speculation, principally on housing.
This is 2017, not 1970, the economy is globalized, capital can move very quickly, even leftist politicians understand that… Not gonna happen get over it and remember it next year!
RE: #104 Smoking man:
#99 Long Branch Apprentice on 03.21.17 at 10:37 pm
http://torontolife.com/real-estate/think-going-go-even-sky-high-wealth-expo-attendees-talk-torontos-housing-market/
Some real winners here alright. Including Pitbull.
“What’s the future of Toronto’s real estate?
“Seems like it’s going to be doubling, or tripling, hopefully. I don’t think it’s going to be as accessible to people as it was, but there are different avenues you can take to get the funding you need.”
If any of these yappy doodle doos’ actually had money they could goose the market a bit more for the rest of us. They are all dreamers.
Yeah go be yourself and get a spiritual advisor. Feel really you!
Wow we are screwed. I did not realize how bad it was….
https://beta.theglobeandmail.com/real-estate/toronto/surging-sales-of-1-million-plus-toronto-homes-fuel-calls-for-new-measures/article34379693
Sales of single-family detached houses commanding prices of at least $1-million have almost doubled this year in the Greater Toronto Area, as economists raise the spectre of a real estate bubble.
The GTA saw 2,876 sales of detached properties of $1-million or more in January and February, compared with 1,548 in the first two months of 2016, a new study by Sotheby’s International Realty Canada shows.
For those of you (like me) wondering how monetary policy can be conducted in a low-interest-rate environment, click the link below for the Bank of Canada’s framework:
http://www.bankofcanada.ca/wp-content/uploads/2015/12/framework-conducting-monetary-policy.pdf?redirected=1
There’s a difference between consumer price inflation and asset price inflation. Don’t confuse the two!
Can’t afford a home? Buy with a friend, or maybe even a stranger
http://www.cbc.ca/beta/news/canada/toronto/can-t-afford-a-home-buy-with-a-friend-or-maybe-even-a-stranger-1.4032457
Real estate agent Lesli Gaynor is determined to make co-ownership a “trend” in Toronto, and threw an event in the city’s Annex neighbourhood last month to teach people how to do it safely.
A couple of hundred people came, mostly looking to buy with friends or family. However, Gaynor imagines herself as a housing matchmaker of sorts, who will eventually help bring together complete strangers.
“People go on the dating websites and you meet with a total stranger and supposedly those are very successful and people do end up marrying or being partnered with them. So could we do that with housing?” Gaynor wondered.
Yup – In Canada due to insane (re-)education system we have to say say Sorry for being successful.
(In my 20s I survived 2 years in a Marxist-Leninist re-education camp known as York University. What a h-ll hole).
I shall say Sorry for my hard earned success? This tax slave colony we live in is doomed.
http://www.atlanticbusinessmagazine.net/article/xx-factor-19/
“AN OPEN LETTER TO TALLER
THAN AVERAGE WHITE MEN
Dear Taller Than Average White Man:
At a time when there is much (well-intentioned, but generally ineffective) focus on developing women and minorities, we understand you may be feeling overlooked, under-appreciated and neglected.”
And never forget that Mr. Trudeau is our leader because hordes of young people voted for the first time – and voted for the sexy guy with tats, a hot wife and MaryJane as his muse.
And never forget where they got such opinions from:. Their parents and grandparents, who voted for Justin’s father and kept him in office for 16 years. If Justin is still PM in 2030, then we can truly write the now-middle aged moisters off as incurable whiners and losers.
Moisters, your parents and grandparents nearly destroyed this country by repeatedly voting for a Trudeau. There is still time for you to make amends.
Lots of ‘we are screwed ‘ going around
Curious. What are you courageous chaps actually doing about it ? Any activists ? Or just sit on the sidelines -complain and ridicule
Man defines his limitations .
@#42 NS Guy
“The Nova Scotia government is handing over $10 million to IBM to create 250 jobs.
$40,000/job….”
++++++++++++++++++++++++++++++++++++
Well.
Look on the bright side.
It isnt as expensive as Sysco Steel was when the private sector company closed it and (after much screaming from Cape breton voters) the govt took it over in 1967 there were about 2000 workers at the mine and the mill.
33 years …a billion dollars later……. and a toxic tar pond ( the most polluted site in Canada) it closed.
Lets hope IBM does a better job.
#123 traderJim on 03.22.17 at 2:09 am
I used to worry about government debt when there was still a chance it could be repaid.
Not anymore. Quite liberating. Now I just laugh when I hear of the stupid things government does with money.
(Ever notice that if anyone ever suggests a cutback images of starving children magically appear on the front pages of every newspaper. The cuts mean babies will die! Oh, and old folks! Starving to death as we speak! But of course we won’t cut the millions for that study that examines if water is wet.)
Those clever Japanese have shown central banks can and will fund any amount of government debt by buying it all up with little pieces of paper, digital ones even. Magic!
Debt no longer matters. What matters is the inevitable decline in value of whatever dollar or peso you measure your wealth in.
Then there are some other long term effects of punishing saving and investment, but who cares? Let the millenials deal with it.
Spend baby spend!
Maybe we can build a wall somewhere. Then tear it down and build it again. Nobel prize winner Krugman thinks that’s a great idea. (Except when Trump says it, then it’s a bad idea, not sure why.)
—
It is quite liberating once you stop worrying about it. Is it any wonder citizens are piling on more and more? We learn and take our cues from our leaders. Crazy stuff.
It reminds me of the threat of nuclear war. The amount of nuclear weapons held by just the US and Russian militaries would be so devastating that it becomes stupefying.
Can any political leader in Canada give a reasonable timeline that the national debt will be paid off? Let’s go even simpler…can any Ontario politician do that for Ontario’s debt?
I would like to see some real cross-party political leadership and work on something simple: no deficits for a decade. No funny money business either where they rob CPP or EI funds and move money around to appear to run surpluses either.
There must be some sort of Laffer Curve type socio-economic indicator where the level of debt becomes so high that it literaly becomes stupefying. IF so, we have definitely reached and passed that point long ago.
Just because someone earns a lot doesn’t mean they evade taxes. Evading taxes is related to a person’s ethics and not necessarily their annual income. Most of the people I know that evade taxes earn less than 1%ers but still enough to afford accountants that can come up with creative interpretation of tax laws. These people are all in the $120k to $200k (per annum) income range and are proud to tell me of all the things they are doing to bring their effective tax rate down to about 15%.
%er
Malaysian investor Jho Low faces looming criminal charges
DOJ is preparing to charge him in massive 1MDB embezzlement scheme
March 21, 2017 04:00PM
https://therealdeal.com/2017/03/21/malaysian-investor-jho-low-faces-looming-criminal-charges/
@#84 crossbordershopper
“keep bringing in the ethnics”
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
He Lives!
“Ladies and Gentlemen, may I introduce Jacques Parizeau…..”
https://www.google.ca/url?url=https://www.thestar.com/news/canada/2015/06/02/jacques-parizeau-former-quebec-premier-dead-at-84-spouse-says.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwitl9y5k-rSAhUJKWMKHQ6WC38QFggWMAA&usg=AFQjCNGiaDlVkkS-kUb_UA8HQ0EgcIBtuA
So a lot of hipsters and young’uns showin’ up in the ‘hood recently. (yes I know, way too many hyphens, trying to be ‘gangsta).
These look to be Junction people, priced out. I guess someone had a look up the hill and said “there’s houses up there!” and then up they all came, with their odd little dogs and their fluffy, gender neutral winter parkas.
It was a dangerous trek I’m sure. They would have had to drive through at least two different gang territories.
But here they are, apparently financed to do some damage in our formerly sleepy, ex Kodak employee populated ‘hood. They like painting red brick houses an off-grey colour for some reason. Everything apparently HAS to be some shade of grey. Maybe it’s that movie they were all tripping over themselves to see a few years back?
So been talkin’ to them. (love the hyphens). They are like, yeah we “won” our house in a twelve person contest, paid the highest price on the street. I met a couple who paid $750,000 for a three bedroom shack, promptly painted it grey (was red brick, like they all are around here) and moved in with their rat/dog. I told them we got our old pile of bricks for $329,000 back in 2012, and then bought another for $279,000 just because. Offered to sell them the $279,000 semi for $1,000,000.00 told them it’s way bigger than their house and it is also red brick so they could paint it too. They actually said they’d think about it (I might be retiring sooner than I thought).
Hipsters are here. There goes the neighbourhood. Where do they get these odd little dogs?
Your “logic” regarding deficits leading to higher taxes is “neat, plausible, and wrong,” to quote Professor Steve Keen. For a financial advisor, I find you woefully ill-informed about money creation, but don’t worry, you’re in good company. Now, please allow me to help you…
As the economy grows, the money supply must also grow or else we get price changes (inflation or deflation). A country has three sources of currency: exports, deficits, and private borrowing from banks. Canada is barely a net exporter these days, with Brent crude prices below $50/bbl, so we aren’t earning much foreign currency. Excessive private borrowing (>150% debt-to-GDP) from banks destabilizes the macro-economy, causes asset bubbles & financial crises, and results in stagnation (i.e. Japan) or deflationary depression (i.e. 1930’s USA) once additional leveraging becomes problematic. I strongly urge you to review Professor Steve Keen’s lectures on YouTube.
Government deficits that hold the debt-to-GDP ratio constant – even during the good times – are actually necessary. The alternative is private borrowing from banks being the primary source of new money, which forces private debt-to-GDP to rise over time until a crisis occurs. (Again, review Keen’s lectures.)
As for taxes, long term debt is routinely rolled over, so as long as debt-to-GDP is constant, higher debt levels are exactly offset by a higher GDP and the taxes this brings. In other words, no new taxes are needed! Japan, for example, has declared its intention to hold the 10yr rate at 0%, while leaving the short term rate alone. What new taxes will Japan require to pay for debts funded this way? Answer: none.
We live in an age where neither truth nor consequences seem an acceptable option.
Deny, deny, deny whilst blaming another party seems de rigueur.
Designer government for the naive and stupid.
Arrange your affairs accordingly dawgs. Plus que ça change……the status quo prevails. NOT. Canada is inexorably sliding down the global list of “bests” and mainly the rich will be immune to the consequences because they have mobility via their wealth.
Debt blindness and re price cancer is working horrific effects upon our economy. Thanks to incompetent government since the 90’s.
The rich will not suffer. Those with merely no debt will likely never get ahead. The indebted will remain slaves with no possibility of a decent retirement. Where in that result is a plan for Canada’s future? Infrastructure spending for salvation? Not likely. The nut for that will likely arrive at the lowest point in our economic slide. And the puppet-masters, mostly forgotten by a stupid electorate, will be sunning their collective backsides on the world’s best beaches, wrapped in golden pensions and benefits and dreaming of their next round of enjoyment.
‘Now please allow me to help you …’
Lol
Do you just wait for prof Keen’s next YouTube video then get all happy and post at various forums ?
have a look in the mirror
The Forecaster , Martin Armstrong on Taxation
https://youtu.be/ARBduyoXsP4
Fear mongeriing
From the same self-proclaimed ‘technical analyst ‘ who posts buys on O series funds
When does shame Kick in?
#134 Contrarian
I think we’ve already reached the debt stupefaction point too. Hard to get a grasp of ‘trillions’.
And of course most debt watchers are ignoring the unfunded liabilities (entitlements due retired folks like CPP, OAS or Social Security in the good ‘ol USA).
Hard to know what those amounts are, but some estimates say they dwarf (am I allowed to say ‘dwarf?’ Can I get a ruling, snowflakes?) the official, on-the-books debt.
I recognized in 2006 the similarities of the path we are on to that of Japan’s from 1990. I still don’t see how we vary much from that, except that we do allow bankruptcies (as long as the company’s owners or unions do not have any pull with the government handout folks that is.)
That’s about all I can see that is different. Oh, and the housing bubble is different in Canada. In the USA it mirrors Japan fairly well. Only in Canada and Ozzieland do we seem to be going against the multi-decade deflation scenario.
Now the Japanese are supremely xenophobic (but you won’t ever hear anyone say they are racist, as they aren’t white, so they can’t be racist you see) and they don’t allow foreignors in to buy houses, so it makes you wonder.
Also, their antipathy to immigration has their population stagnant/falling, so that must be a factor too.
And I guess I would say that there is some truth to the idea that Toronto property was wildly undervalued compared to other major cities around the world.
15 years ago I wanted to buy property in Bogota but when I looked at some condos I found they were about 40% more expensive than Toronto condos. I was shocked. I was expecting them to be dirt cheap. (well they were, they have gone up substantially since then)
Toronto has now caught up to Bogota’s high end. You can still buy cheap in lower strata neighbourhoods in Bogota, if you want.
Toronto is still behind real world class cities (London, Paris, NYC), which is as it should be.
Anyway, the main point is, we will have low rates (not much higher than now, maybe 1 full point higher maximum) for the rest of our lives.
Growth will be stagnant.
Central banks will end up owning all government debt, with a hand from a few pension funds.
Working hard will not be worthwhile as taxes will be exorbitant (you ain’t seen nothing yet).
Once the Canadian housing bubble bursts, rates will have to come down to 0 and then we will follow the Japanese path even more closely.
House prices will be stagnant for a decade at least, although not dirt cheap, as 0% interest props up a lot of prices.
We really are handing our children a steaming pile of $#!+
man ya gotta have a read of this:
http://www.cbc.ca/news/canada/toronto/can-t-afford-a-home-buy-with-a-friend-or-maybe-even-a-stranger-1.4032457
#24 talc…… “the CRA rule is whatever the cra rules…..tri dat. The CRA works like a mafia. The clock starts ticking as soon as a file opens. I got it from an acct that the hourly collection fee per file is $750 per hour. The info saved me a lot of money. If you challenge then the meter just keeps running at $750 p/h until you settle. I figured it out real fast…..cause I’m used to dealing with grifters I saw though that he scam right away.
I received an audit notice from the CRA and knew I owed them nothing. The response cost me $3000 in very expensive acct time. I scheduled a meeting and told my acct to stay home. I grew up in a bad neighbourhood and know how to talk to mafioso. At my meeting it was agreed I owed nothing….but the meter was running so I had to pay something. I added up the hours my file had been open and paid the tab…..on owing nothing. I was getting robbed, I knew it, they knew, but that’s how the mob works…..pay up .
I could have taken them to court……tax court…..but guess who runs tax court…..the Mob. And in the meantime the meter keeps running….as well as the acct fees and endless letters…..it’s a big scam…..you’re getting mugged….there’s no law to protect you…..it’s you against the mafia…..there’s no honesty….sit down and settle as quickly as you can….even if you owe nothing…..there’s no winning a moral victory against a mob run shake down.
T2 cant spend on proper infrastructure in this country because its all blocked by SJWs, envirowackos and FN.
We should have a handful of LNG ports, a pipeline to the east to kick saudi crude off the continent, some sort of high speed rail system (and not just between Toronto and Montreal), etc. Nation building stuff. Garth maybe remembers the big infrastructure projects of the 40s and 50s.
But its all blocked so the money is spent on things like flagpoles and studies.
Here’s an article that answers your question (and many others):
https://www.theguardian.com/us-news/2017/mar/22/donald-trump-president-impeached-liberals-history-process
#138 Ace Goodheart,
I bet the Hipsters at least know the difference between a hyphen (-) and an apostrophe (‘).
#125 pBrasseur,
We’ll know soon enough, but I’m starting to think they will. As we all know TFSAs are chronically under utilized. And their main agenda is to support the middle class at the expense of the “rich”. So the narrative goes like this: The contribution limit for TFSAs and RRSPs is high enough that anyone who is middle class will struggle to max it out. Anyone who actually pays capital gains tax is therefor rich and should be taxed more.
#147 Stock Picker… Yuppers mister Viking man. Remember the CRA is not a de facto branch of the government, even though it is styled as such and claims to be. It is similar to the IRS, which is modeled after a Private Sector model. More info here:
“The Revenue Act of 1862 was passed as an emergency and temporary war-time tax. It copied a relatively new British system of income taxation, instead of trade and property taxation. The first income tax was passed in 1862…” – from Wikipedia
And here is info on the Snitch Line. Proof that it is a Mafioso as you correctly suggested. https://intaxicating.wordpress.com/2012/01/30/cra-snitch-line/
@ #139 Adrian Tough – Canada enjoyed some of its best growth years from 1998-2007, and ran huge surpluses every single year. So much for deficits being necessary for growth. If you think the economy only grows with the injection of new government debt, you’re hopelessly mired in the Keynesian muck.
Garth, can you confirm this fact with regards to the discussion about personal exemption on principal residence? All this talk about how long you have to live in the property is kind of useless when the only thing that matters is the appreciation of the property while you were living in it. You can’t own a property for ten years, rent it out for nine of those years, and claim personal exemption for all the ten years. If someone wants to live in a house for 2 months and prove that they were actually living there for 2 months, great. What difference does it make. They get 2 months of gains for free.
Keep buying GTA houses till Q2 2018. No rate hike here at least til then.
Get sht bungees and slanty semis up to 1.5m floor price.
Our leaders know we are like brainless sheep.
The art of war.
Gender equality carbon tax debt for all.
following the money trails
…latvia political crisis that has seen five prime ministers come and go in the last two years.
“The World Bank applauds Latvia and its Baltic neighbors by placing them high on its list of “business friendly” economies, ..”
http://michael-hudson.com/2013/01/latvias-economic-disaster-as-a-neoliberal-success-story-a-model-for-europe-and-the-us/
===============================
”The scheme that allowed the transfer of money from east to west was unravelled by police following the launch of the inquiry in 2014. The OCCRP – which first reported the story – originally called it “the Russian Laundromat”.
Investigators are still trying to identify some of the wealthy and politically influential Russians behind the operation, known as “the Global Laundromat”.
“They estimate a group of about 500 people were involved. These include oligarchs, Moscow bankers, and figures working for or connected to the FSB, the successor spy agency to the KGB. …Igor Putin, the cousin of Russia’s president, Vladimir, sat on the board of a Moscow bank which held accounts involved in the fraud….The data is understood to be part of the evidence gathered in a three-year money-laundering investigation led by police in Latvia and Moldova.”Detectives have unravelled a conspiracy that involved billions of dollars being sent from suspected criminals in Russia via accounts in Latvia and Moldova held at banks notorious for their exposure to money-laundering scams.
Typically, two firms would pretend to lend money to one another, with the sums underwritten by Russian businesses. One company would then “default” on the loan. Judges would certify the “debt” as authentic, allowing the Russian businesses to send cash to an account in Moldova. From there it went to Latvia, inside the EU.
Accounts held at 19 Russian banks were involved in the scheme. In 2014, it was reported that one financial institution was the Russian Land Bank (RZB). A bank board member at the time was Igor Putin.
Tell that to people living in Greece. Deficits lead to either higher taxes, less social programs or both.
It is kind of like saying don’t worry about your personal debt, next year you will get a raise. It only makes sense if your spending increases revenue/reduces spending in the future that more than offsets the debt service cost.
http://www.theglobeandmail.com/report-on-business/international-business/us-business/sears-holdings-warns-of-going-concern-doubts/article34380383/
the booming economy continues.
#72 Smoking Man on 03.21.17 at 9:14 pm
What Trudeau, Butts, and all the lefty loons don’t know. They follow a mental case without question. The following is a chat I had with the guy running earth back in Vegas near area 51, Shlong Zumanga my flight instructor on Nictonite. The secrets of the universe are in my book. I will have paperback copies available at the general Store in Belfountain on Sat May 13th.
Free of course for blog dogs who don’t punch me. Signature is going to cost you 10 bucks for making me work.
____________________________________________
Thus the real reason behind the Belfountian meet! Smoking Man want to prostitute himself and his book. Well Belfountain is off my check list that weekend. Good Luck with that one Garth. If I wanted to see hookers I could go to Lakeshore Rd.
#160 James on 03.22.17 at 12:39 pm
#72 Smoking Man on 03.21.17 at 9:14 pm
What Trudeau, Butts, and all the lefty loons don’t know. They follow a mental case without question. The following is a chat I had with the guy running earth back in Vegas near area 51, Shlong Zumanga my flight instructor on Nictonite. The secrets of the universe are in my book. I will have paperback copies available at the general Store in Belfountain on Sat May 13th.
Free of course for blog dogs who don’t punch me. Signature is going to cost you 10 bucks for making me work.
____________________________________________
Thus the real reason behind the Belfountian meet! Smoking Man want to prostitute himself and his book. Well Belfountain is off my check list that weekend. Good Luck with that one Garth. If I wanted to see hookers I could go to Lakeshore Rd.
…
TP for the deplorables.
The “Keynesian muck” is only brought in when confidence and its multipliers (consumption, investment, etc.) in the economy are at low ebb.
For going on national TV and asking the Russians to hack /find Hillary’s e-mails. Or did you miss that ?
——————————
impeached? heck, he got elected for that!
the devil reading the bible:
https://ca.finance.yahoo.com/news/unprecedented-uncertainty-high-end-real-080032725.html
Henderson predicts that strength will continue in the spring buying season — provided that the government doesn’t implement new policies aimed at the real estate sector.
“We feel that the market is the best arbiter of supply and demand, and that government policies often have too many unintended consequences,” Henderson said.
“They need to be done thoughtfully, not as a reaction to what has really become a very political issue.”
Absolutely agree, markets work best, so let’s abolish CHMC and transfer the mortgages back to the lenders.
http://www.theglobeandmail.com/real-estate/toronto/investors-super-heating-the-toronto-market/article34380897/
Speculators are buying up residential real estate all around the Greater Toronto Area and possibly pushing house prices into bubble territory.
That conclusion doesn’t come from an international think tank or non-governmental organization but a brokerage at the epicentre of Toronto’s market in sizzling Leslieville.
Investors could be responsible for a chunk as large as 25 to 30 per cent of all sales in the GTA, according to the special report by Realosophy Realty Inc. The report is titled Freeholds on Fire: How Investors are Driving Up House Prices in the Greater Toronto Area.
Very confused… so housing prices in lower mainland and YVR BC are simply unaffordable to most locals without bank of mom, and insane low interest rates or BC housing grants and yet it’s always a great time to buy because IT’S DIFFERENT this time.
Toronto same thing so people should pair up with friends and family or a total stranger to own a home… any home, anywhere!!
What is wrong with you people. This insanity can’t end soon enough. You don’t buy at the tops in any market and make money. And this reeks badly of nearing a market top.
Maybe short term you do ok but eventually, assets correct.
Then it’s not different this time.
Actually, I give up, it is different this time. Unaffordable housing is here to stay. Just buy at any price now, if you can’t afford it later as rates rise, loan forgiveness. You’ll get bailed out. No worries, all good. Seems only fair.
You saved money, invested wisely, sucker- get with the times…Debt for housing is all that matters. You only win and then win more.
It’s pretty clear now that it is a huge amount (majority ) of Canadians buying all these homes and speculating on housing, then add in foreign buyers… until action is taken by policy makers, then it is different this time.
Awesome culture house porn breeds.
#160 James on 03.22.17 at 12:39 pm
#72 Smoking Man on 03.21.17 at 9:14 pm
What Trudeau, Butts, and all the lefty loons don’t know. They follow a mental case without question. The following is a chat I had with the guy running earth back in Vegas near area 51, Shlong Zumanga my flight instructor on Nictonite. The secrets of the universe are in my book. I will have paperback copies available at the general Store in Belfountain on Sat May 13th.
Free of course for blog dogs who don’t punch me. Signature is going to cost you 10 bucks for making me work.
____________________________________________
Thus the real reason behind the Belfountian meet! Smoking Man want to prostitute himself and his book. Well Belfountain is off my check list that weekend. Good Luck with that one Garth. If I wanted to see hookers I could go to
…..
That triggered you?
What the hell you going to do next elections when librals will be voted out of existence.
So what exactly is going to stop this juggernaut that has not stopped it after 13 years?
You’re right. It will go up forever, and make history as the first asset class in human history to have done so. — Garth
________________
I have the same question. Not saying that it will not stop. I know it has to. But what will make it happen? Aren’t enough negative factors in place yet?? I guess we will have to wait a little longer for the Feds to continue to increase their rates before we start to see the beginning of the unravelling. That coupled with the fact that 72% of car loans are negative and spread at or longer than 5 years. That’s starting to be a lot of debt.
March 20, 2017 6:22 PM
The cellphones were infected with porn. Then the Panama Papers exposed a bribery scheme, this company says
Read more here: http://www.miamiherald.com/news/local/community/miami-dade/article139720003.html#storylink=cpy
=======
Bank that lent $300m to Trump linked to Russian money laundering scam
Deutsche Bank among western institutions that processed billions of dollars in cash of ‘criminal origin’ through Latvia (guardian uk)
DELETED
The bears are too impatient… the stars are aligning but after years of reinforcement that any drop is a buying opportunity real estate bulls faith will take a while to break. However, with rates rising, tax changes, debt levels, etc. etc. the time is (finally) coming, very soon…
#139 Adrian Tough on 03.22.17 at 9:11 am
_________________________________________
I see (said the blind man). What if the dollar is .65 and GDP growth is <1% while borrowing 30 Billion per year? What if the above carries on for a decade or two?
Taxes are coming on like a hurricane, debt interest in Ontario could be moving into second spot on the Budget despite all those surpluses prior to the GFC.
The game ends when we can't make the interest payments anymore…
#170 Ole Doberman on 03.22.17 at 2:04 pm
DELETED
———————————————————
Why would this be a delete – you gotta dig for truth Garth.
Did you not have enough embarrassment with the Trump birther stuff? Don’t promote more of it here. Absurd. Irrelevant. Defamatory. Puerile. — Garth
@#162, then why are we running deficits now? The last recession ended in 2009. Shouldn’t we save our bullets for the next one? Or do you believe in “preventative stimulus”, for which there is no evidence of effectiveness? If that’s what we’re doing, then the current deficit is nothing more than a reckless, speculative gamble. I didn’t realize economic “inoculation” was a thing. In fact I’m pretty sure it doesn’t exist.
Amazing, so Canadian ‘investors’ are taking loans on existing properties as collateral to subsidize down-payments on new properties. Insured by CMHC.
Combined with the hidden mortgage fraud which is becoming more evident by the day and the watchdogs who sit on their hands I can clearly see and state that the GTA bubble in particular is probably 3 times bigger than the Miami’s one at it’s peak when comparing prices to income.
There will be NO ECONOMY LEFT when this blows up.
Stocking up Johnny Black label for the feuerwerks/fireworks.
Cheers,
I can also congratulate all pensioners/retirees who have MBS/ Mortgage backed securities insured by CHMC in their portfolios as ‘safe’ component, let them enjoy the return from these.
Meanwhile in Mississauga… there’s lineup’s for condos.
https://www.insauga.com/caught-on-video-m-city-launch-draws-insane-crowds
#174 Alistair McLaughlin on 03.22.17 at 3:12 pm
@#162, then why are we running deficits now? The last recession ended in 2009. Shouldn’t we save our bullets for the next one? Or do you believe in “preventative stimulus”, for which there is no evidence of effectiveness? If that’s what we’re doing, then the current deficit is nothing more than a reckless, speculative gamble. I didn’t realize economic “inoculation” was a thing. In fact I’m pretty sure it doesn’t exist.
—————————-
We have been running deficit to the tune of 50-60 bln/per year for the last 7-8 years. Due to loans that would never have been made if not for CMHC ‘insurance’.
Now, we can either recognize that we are running not 30 but 80 billions real deficit per year (having Poloz happy short term and the currency collapsing, driving interest rates higher) or keep hiding the real deficit through CMHC (keeping on taking and insuring additional ultra-subprime crappy s..t loans) while recognizing some deficit as ‘official’ on the budget and keep the CAD stronger temporary until the whole system blows up , which MAKE NO MISTAKE, IT WILL, effectively decoupling CAD from the price of oil triggering humongous inflation and destruction of standard of living.
By the way the ‘insurance’ of subprime loans by CHMC is in direct violation with the World Trade Organization agreements as it constitutes help/subsidies for the banks.
As Canadian as it gets.
#139 Adrian Tough on 03.22.17 at 9:11 am
Your “logic” regarding deficits leading to higher taxes is “neat, plausible, and wrong,” to quote Professor Steve Keen. For a financial advisor, I find you woefully ill-informed about money creation, but don’t worry, you’re in good company. Now, please allow me to help you…
As the economy grows, the money supply must also grow or else we get price changes (inflation or deflation). A country has three sources of currency: exports, deficits, and private borrowing from banks. Canada is barely a net exporter these days, with Brent crude prices below $50/bbl, so we aren’t earning much foreign currency. Excessive private borrowing (>150% debt-to-GDP) from banks destabilizes the macro-economy, causes asset bubbles & financial crises, and results in stagnation (i.e. Japan) or deflationary depression (i.e. 1930’s USA) once additional leveraging becomes problematic. I strongly urge you to review Professor Steve Keen’s lectures on YouTube.
Government deficits that hold the debt-to-GDP ratio constant – even during the good times – are actually necessary. The alternative is private borrowing from banks being the primary source of new money, which forces private debt-to-GDP to rise over time until a crisis occurs. (Again, review Keen’s lectures.)
As for taxes, long term debt is routinely rolled over, so as long as debt-to-GDP is constant, higher debt levels are exactly offset by a higher GDP and the taxes this brings. In other words, no new taxes are needed! Japan, for example, has declared its intention to hold the 10yr rate at 0%, while leaving the short term rate alone. What new taxes will Japan require to pay for debts funded this way? Answer: none.
—
What strategy do you recommend in this environment according to this theory? Where are we headed, and what are the likely possibilities?
Well the Ontario Government has apparently balanced its budget this year and will now start paying down its debt.
Meanwhile, first time buyers everywhere are putting themselves into a situation that is similar to living under a large rock held up by twigs and branches and hoping it doesn’t collapse onto your head.
900K mortgage at 2.5% = $22,500 in interest per year, or $1875.00 per month (interest only, not including principal).
900K mortgage at 4% = $36,000 in interest per year, or $3000.00 per month (interest only, not including principal).
900K mortgage at 5% = $45,000 in interest per year, or $3750.00 per month (interest only, not including principal).
So those on “the edge” are looking at thousands of dollars more per month to stay in their houses, if we have a very small increase in fixed mortgage rates.
But, of course, this is not the actual situation with the first timers.
From the looks of it, what has actually happened is we have “shadow financing” where rates of up to 10% per year are being charged on sub prime second or third mortgage loans, with the loans renewable each year and often interest only. So beyond the 900K bank financing, there is another few hundred thousand worth of “shadow financed” second lien interest only debt, also registered to the same house.
Then there are the credit cards…….
It all seems to be premised on house prices going up forever.
I am starting to think about the movie “the big short” and how to short this market. It looks like it is about to collapse. Toronto might wobble higher in the next year or so but this is about to be OVER.
Keeping a cash pile available to purchase Chartered bank stocks when this whole thing blows up. Hearing about lots of folks who are shorting the sub primers (won’t mention company names on here but you know who they are).
I will personally sue CHMC for damages, due to having to listen to idiots like Bad Lamp bragging for 8 extra years then needed. I estimate the damage to 100 k+.
#160 James (and Johnny Boy too)
What’s it like to be totally without a sense of humour?
Is that what makes you both so angry?
#167 Smoking Man on 03.22.17 at 1:35 pm
#160 James on 03.22.17 at 12:39 pm
#72 Smoking Man on 03.21.17 at 9:14 pm
What Trudeau, Butts, and all the lefty loons don’t know. They follow a mental case without question. The following is a chat I had with the guy running earth back in Vegas near area 51, Shlong Zumanga my flight instructor on Nictonite. The secrets of the universe are in my book. I will have paperback copies available at the general Store in Belfountain on Sat May 13th.
Free of course for blog dogs who don’t punch me. Signature is going to cost you 10 bucks for making me work.
____________________________________________
Thus the real reason behind the Belfountian meet! Smoking Man want to prostitute himself and his book. Well Belfountain is off my check list that weekend. Good Luck with that one Garth. If I wanted to see hookers I could go to
…..
That triggered you?
What the hell you going to do next elections when librals will be voted out of existence.
___________________________________________
I don’t know? I don’t vote for Librals. Are they like Mexecan’s and aleon’s.
“Hey knuckle dragger” I paid my $50 for a 5 year membership. I am a card carrying conservative which is more than you are. When was the last time you actually attended a conservative party meeting? I know where I will be for May 27th.
#172 IHCTD9
“The game ends when we can’t make the interest payments anymore…”
Both Canada, Japan and the USA print their own money. Making interest payments will never be a problem, just add more debt. Pretty much what is happening now.
Now if private individuals and corps can’t make payments, that’s another story.
The SWHTF when Jane and Joe (oops I mean Juanita and Jose) Public cant pay the bank.
That might happen sooner rather than later, I really don’t know.
#139 Adrian Tough on 03.22.17 at 9:11 am
Your “logic” regarding deficits leading to higher taxes is “neat, plausible, and wrong,” to quote Professor Steve Keen. For a financial advisor, I find you woefully ill-informed about money creation, but don’t worry, you’re in good company. Now, please allow me to help you…
As the economy grows, the money supply must also grow or else we get price changes (inflation or deflation). A country has three sources of currency: exports, deficits, and private borrowing from banks. Canada is barely a net exporter these days, with Brent crude prices below $50/bbl, so we aren’t earning much foreign currency. Excessive private borrowing (>150% debt-to-GDP) from banks destabilizes the macro-economy, causes asset bubbles & financial crises, and results in stagnation (i.e. Japan) or deflationary depression (i.e. 1930’s USA) once additional leveraging becomes problematic. I strongly urge you to review Professor Steve Keen’s lectures on YouTube.
Government deficits that hold the debt-to-GDP ratio constant – even during the good times – are actually necessary. The alternative is private borrowing from banks being the primary source of new money, which forces private debt-to-GDP to rise over time until a crisis occurs. (Again, review Keen’s lectures.)
As for taxes, long term debt is routinely rolled over, so as long as debt-to-GDP is constant, higher debt levels are exactly offset by a higher GDP and the taxes this brings. In other words, no new taxes are needed! Japan, for example, has declared its intention to hold the 10yr rate at 0%, while leaving the short term rate alone. What new taxes will Japan require to pay for debts funded this way? Answer: none.
————————————–
Japan has:
– a strong, real economy with big trade surplus
– huge debt but held internally
– deflationary pressure due to demographics for quite a while and real estate prices collapse of 60 % drop from the top in nominal terms.
Canada has none of these yet.
IMHO zero or negative interest rates have their limits and we are starting to see them already. Both the Fed and the European Central bank have signaled that lose monetary policies are over and have started tightening.
Only Poloz did not get the memo, but what do you expect from him?
We are at peak economy/max GDP in real terms due to the humongous credit bubble on ultra-over-leveraging that simply can not grow further higher,
Contraction in real terms is inevitable and certain and I care not what the nominal numbers will read.
THIS ECONOMY IS OVER.
4:25 no budget, typical liberals, over budget and late.
#164 Euro Observer
Bankers , mortgage brokers and realtors HATE the free and open markets. They are useless in the free and open markets and they know it. EVEN so called CONservaties HATE the free and open markets. They are ALL useless and want no part of the free and open markets. Canada is a ponzi scheme we need more greater fools to feed the system or it collapses. I shouldn’t single out Canada as many others are just as bad.
No Dr. Tax or Capital gains…
phew,
no taxes on CG, dividends and the like.
Re: #189 Suede on 03.22.17 at 4:42 pm
An unexpected miracle, we can probably thank Trump for no increases in tax in the Canadian budget. I guess Trudeau didn’t want quote new foreigners to make a a U-turn and go back home after the budget speech.
@ #132 Doom and gloomers on 03.22.17 at 8:20 am
Doom and gloomers typically move their money out of the economy. There’s no changing the mind of a population that thinks everything is great because they’re going to get legal pot, and gender neutral bathrooms.
The economy is in the crapper, jobs are getting worse, and people are comfortable with insane amounts of debt because they can’t remember what mortgage rates were like just 5 years ago.
In this case, your bet against the economy is to hold as few Canadian pesos as possible, because true inflation (as opposed to CPI), is going to kill the value of the loonie.
#123 Sam J
Koch brothers
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The Koch brothers, may want to control where money is spent and not waste on those government employees that suck those.
Ask Google the causes they donate to.