The war on wealthy

Jim’s a lawyer and, by several accounts, a good one. But he’s not one of those $700-an-hour dudes with the dedicated parking spot below a bank tower for his Panamera. Instead, he’s an entrepreneur with a partner, one employee and an office above a dry cleaner in the west end. Last year he scored with a personal injury case and made a bundle.

“That kinda thing only comes around once,” he said. “Now it’s back to making way less than my plumber.” Jim operates through a small business corporation, of course. He and Brenda (wife) are the sole shareholders, so they try to be tax-efficient by both taking a combination of salary and dividends from the business.

Sadly, Jim reads this blog. Some posts a few months ago speculating the T2 gang wants to Hoover guys like him got his juices going. So he sent this brief note to his local MP, Arif Virani:

Hello Honourable MP Virani:

Could you please advise as to the government’s position (future plans) regarding the tax treatment of retained earnings for professional corporations as well as your stance on the government’s future plans for same.

Actually he sent it five times. No response. The sixth time he got lucky. The reply below was received yesterday. It’s important enough to every self-employed person that it is reprinted in full.

Thank you for writing to me about the tax treatment of retained earnings for professional corporations.

A recent review of federal tax expenditures conducted by the Government have highlighted a number of issues regarding tax planning strategies using private corporations, which can result in high income individuals gaining unfair tax advantages. A variety of tax reduction strategies are available to these individuals that are not available to other Canadians. These strategies include:

*         Sprinkling income using private corporations, which can reduce income taxes by causing income that would otherwise be realized by an individual facing a high personal income tax rate to instead be realized (e.g., via dividends or capital gains) by family members who are subject to lower personal tax rates (or who may not be taxable at all).

*         Holding a passive investment portfolio inside a private corporation, which may be financially advantageous for owners of private corporations compared to otherwise similar investors. This is mainly due to the fact that corporate income tax rates, which are generally much lower than personal rates, facilitate accumulation of earnings that can be invested in a passive portfolio.

*         Converting a private corporation’s regular income into capital gains, which can reduce income taxes by taking advantage of the lower tax rates on capital gains. Income is normally paid out of a private corporation in the form of salary or dividends to the principals, who are taxed at the recipient’s personal income tax rate (subject to a tax credit for dividends reflecting the corporate tax presumed to have been paid). In contrast, only one-half of capital gains are included in income, resulting in a significantly lower tax rate on income that is converted from dividends to capital gains.

The Government is further reviewing the use of tax planning strategies involving private corporations that inappropriately reduce personal taxes of high-income earners… The Government intends to release a paper in the coming months setting out the nature of these issues in more detail as well as proposed policy responses…

Yours sincerely,
Arif Virani, MP
Parkdale-High Park

This letter is not written by Virani, of course. Jim’s question was sent by Virani’s staff to the constituent communications division of the Finance Department where the response was crafted then returned to the MP to put into letter form. It comes straight out of the fine print in the 2017 budget. No government backbench MP has the authority or permission to freelance on government fiscal policy – thus what you have in this missive is the Trudeau-Morneau party position. So, Jimbo, look out!

The war against self-employed professionals, small business operators, high-income earners, commissioned workers and anyone who doesn’t toil for a salary is definitely heating up. While Trumphobia kept Ottawa from diddling with the tax laws (plus capital gains and dividends) in this year’s budget, it’s a safe bet to assume the hit’s coming next Spring. What can you expect?

  • No more income-splitting with spouses, relatives or children by making them shareholders of a professional corporation.
  • Possible restrictions on the ability of the self-employed to pay themselves through dividends rather than salary (even though there’s no real tax advantage).
  • A tax on retained earnings within a corporation, by ensuring funds invested in a corporate account are taxed at the highest personal level – eliminating the advantage of keeping them there.
  • Hiking the capital gains inclusion rate in selected circumstances to 100%, and in all others to (possibly) 75%.

The appetite of the current government is as insatiable as its spending is profligate. In less than two years we’ve seen a ‘temporary’ deficit to create jobs become one which will be structural for decades. With salaried high-income types already handing over 50% of their incomes, the guns will soon be leveled at the others – doctors, lawyers, sales execs, IT contractors and all who operate through incorporations for a host of reasons, usually getting by with no benefits, no pensions and dubious security.

Record household debt. Record house prices. Record spending. Record tax.

Is it just me, or does it feel like we’re going bigly in the wrong direction?

193 comments ↓

#1 Muttley O'Toole on 04.21.17 at 7:03 pm

Well it looks to me, unless you vote the incumbents out, it is Hi Ho Silver, but whereto?

#2 Al on 04.21.17 at 7:04 pm

Bigly in the wrong direction for sure!

#3 Randy on 04.21.17 at 7:04 pm

I felt this way 10 years ago when I packed it in. It’s easier for me to minimize my tax exposure and maximize my after-tax income and entitlements. I’m not bragging but it was the right decision.

#4 traderJim on 04.21.17 at 7:05 pm

Quick google search finds that President Trump graduated from Wharton, with a Bachelor of Science.

Entrance requirements for Wharton correlate to an IQ of 145 to 156.

That would mean Trump almost certainly belongs in the 99.99 club, meaning he is smarter than 99.99% of the people on earth.

(Bill Clinton also had an incredibly high IQ of around 148)

#5 PGer on 04.21.17 at 7:10 pm

Yes, very bigly Garth. Seems that I’ve always been slightly behind the times. Went to grade school when there were no calculators (or only a very few by Grade 12 that only rich nerds could afford); was taught in the Imperial system instead of metric; and saved and invested (along with my poor wife) all my working life instead of spending money and having a great time like a crazed liberal. We’ll see how this all ends, but my guess is that it will be very ugly for Canadians.

#6 crowdedelevatorfartz on 04.21.17 at 7:12 pm

So….you cant reinvest the dividends into the company to upgrade equipment, vehicles, employee(me)training, etc to reduce your tax burden?

Whats the point of risking YOUR after tax money and sweat starting a business?

#7 Insider on 04.21.17 at 7:14 pm

Is there any truth to rumours of some Liberal back-benchers defecting to the Conservative party ?

#8 For those about to flop... on 04.21.17 at 7:14 pm

#4 traderJim on 04.21.17 at 7:05 pm
Quick google search finds that President Trump graduated from Wharton, with a Bachelor of Science.

Entrance requirements for Wharton correlate to an IQ of 145 to 156.

That would mean Trump almost certainly belongs in the 99.99 club, meaning he is smarter than 99.99% of the people on earth.

(Bill Clinton also had an incredibly high IQ of around 148)

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

Clinton wasn’t smart enough to offer to pay for the dry cleaning…

M42BC

#9 GFD on 04.21.17 at 7:18 pm

Who’s this guy?

http://www.cbc.ca/news/canada/toronto/wynne-housing-market-1.4077094

#10 TurnerNation on 04.21.17 at 7:20 pm

Wow had this weekend rant queued up. Apropos.

Coming soon….stay at home…do nothing…and get PAID!!

http://www.basicincomecanada.org/tags/hugh_segal

That’s right I will work for you. 40hrs a week. Enjoy.

Get out of Kanada! Move it or lose it How about a blog dog compound in Equator

M41ON

#11 Gasbag Boomer on 04.21.17 at 7:20 pm

To he** with T2, I’m going to retire and avoid the >50% nonsense. Deal with it Wild Bill, I’m sure you will be hurting as many Boomers pack it in from high paying jobs to near zero taxation!

#12 fancy_pants on 04.21.17 at 7:21 pm

Party is just starting in Ontario. Wonderful place for the liberal left. Yours to discover.

https://qz.com/914247/canada-is-betting-on-a-universal-basic-income-to-help-cities-gutted-by-manufacturing-job-loss/

Time to put your feet up and take your cue from mother wynnie. Hard work is for losers.

#13 Madcat on 04.21.17 at 7:22 pm

Again, the government needs to start taxing debt. There’s heaps and mounds of it out there! They’ll make a fortune! Just tack on an extra 2% or 3% on top of any interest rate and get the bank to do all of the administrative work for you! Easy money for the government! Time to tax debt boys! No need for huge teams to hunt down empty houses… Just get the bank to send you a check! They already got all the paper work done for you!!!

#14 east van on 04.21.17 at 7:23 pm

http://www.theglobeandmail.com/real-estate/vancouver/vancouvers-presale-condo-market-reaches-fever-pitch/article34771425/

http://www.cbc.ca/news/canada/british-columbia/this-is-nuts-why-hundreds-lined-up-to-see-a-2-bedroom-1-200-co-op-suite-1.4078756

#15 Michael Francis on 04.21.17 at 7:28 pm

Get rid of all taxes (corporate, income, sales-the whole lot) and bring in a single Land Tax.

#16 Bond Junkie on 04.21.17 at 7:29 pm

Alright let’s not waste this opportunity to pay homage to the greatest market prognosticator this blog has ever known and, might I add, in a way that is very relevant to the host and fellow hounds/houndettes.

This may have been lost in the fryday afternoon files, Dr Smokeys schlong branch listing:

https://www.realtor.ca/Residential/Single-Family/18055167/57-JAMES-Street-Toronto-Ontario-M8W1L4-Long-Branch

Summary of the estimates thus far:

Penny Henny 1.16
For those about to flop 1.23
Gasbag boomer 1.2
Bond Junkie 1.222

Let the games begin.

-Bj

#17 Manitoba Whale on 04.21.17 at 7:30 pm

#3 Randy on 04.21.17 at 7:04 pm
I felt this way 10 years ago when I packed it in. It’s easier for me to minimize my tax exposure and maximize my after-tax income and entitlements. I’m not bragging but it was the right decision.
****
Same for me Randy. Since 2014 I have been working 15-20 hrs per week because I was asked to by management to continue working on several projects. I have lost the desire to make the big bucks only to see it whacked away in taxes, or equally frustrating, questionable spending. I should be in the highest income years of my life, but after a great ride, my ambition is to grow our business as in the past is gone.

#18 nobody on 04.21.17 at 7:32 pm

Simplify tax code.
Wages earned by working outside in the dirt = 50%
Wages earned doing something pointless in an office = 25%
Wages earned in finance, law, politics, investment = 0%

Saves all those loopholes/accountants/investigations

#19 Cayman_CA on 04.21.17 at 7:34 pm

Moved my ass to the Cayman Islands where I pay no income tax; everything here is a consumption tax. I don’t know how people survive here making a regular salary; but it’s great when you rake in half a million or so. Don’t plan on returning to Canada any time soon!

#20 OttawaMike on 04.21.17 at 7:35 pm

Smoking Man:
Good move listing your shack cheap. It’s going to sell over asking.

#21 Shameful on 04.21.17 at 7:36 pm

It’s just you, Garth. Most Canadians want tax fairness not loopholes for the well connected. Don’t cry about how lawyers don’t have pensions and “dubious security”. The companies you invest in have ensured that almost all Canadians have lost pensions since the 80s, have lost ANY semblance of job security, and on top of that many of the hardest workers in this country make min wage or within a couple of bucks from that. Get some perspective, stop talking to “execs” all day who are nothing but mooches on other people’s labour. The plumber that your friend resents is the one that wakes his ass off at 5am so your house isn’t full of shit (literally) when you come back home from “work”. And odds are the plumber just works more when he wants more money instead of going to professional snakes that help him cheat taxes by income splitting with his wife through corporate loopholes. Show some respect for the working people of Canada please.

We all work. Have respect for everyone. — Garth

#22 joblo on 04.21.17 at 7:41 pm

What a mess!

#23 Ace Goodheart on 04.21.17 at 7:42 pm

Bigly doesn’t matter. What the Feds and the Province have just done is create yet another massive opportunity to make lots of money off of other people’s problems.

There will shortly be an exodus out of Ontario’s residential real estate markets, as people who have taken on second and third mortgages on their ever – increasing in value houses, to purchase yet more houses with massive mortgages and little equity, are getting squashed.

I am in the business of renting apartments. I love picking up small rental operations on the cheap. Haven’t had a buying opportunity like the one that is about to present itself since the 1990s.

This is all of course courtesy of the Provincial government, which just dealt a death strike to Ontario’s bubble real estate markets. Without the Feds and their persistent attempts to keep interest rates artificially low, while making it easier and easier for people to put themselves into death spiral debt situations, there never would have been the opportunity for the Province to handily finish things off.

Six months from now I’ll be buying distressed small rental operations for a song and a dance. It’s like 1992 all over again!

Bank stocks: The chartereds last took a major hit back in 2008, when I was buying up shares at 1/2 their value, $25.00 a pop for RBC and the rest were similar. It’s about to happen again. Just listen to Canada’s Warren Buffett, Prem Watsa, as he explains what’s about to happen to Chartered Bank stock.

I have a wad of cash waiting to start purchasing as people start dumping their bank stock holdings. The market is going to get creamed and pooched in a royal way. I am going to buy as much of the distressed Chartered stock as I can afford to.

All in all, once again Canadian Federal and Provincial governments have handed me money making opportunities unlike anything else in the world today. Nothing like a stable socialist democracy to give a good contrarian investor windfall profits. Three times in one adult lifetime. And I’m not dead yet……..

#24 Doug t on 04.21.17 at 7:44 pm

“wrong Direction” sounds like a boy band. Harper was wrong direction for different reasons – T2 doin his thang in wrong direction. Doesn’t matter who you hoist to the alter – somebody is going to say it’s the wrong direction.

RATM

#25 house for rent on 04.21.17 at 7:45 pm

Any of your balanced diversified peeps want to rent a brand new 1500sqft semi in Ancaster backing on to conservation land? Ready in July. It has upgraded appliances and granite.

Bonus: You can tell everyone you own it.

Win/win!
Unless you think I’m an idiot for investing in RE.
Then it would be you: win me: lose right?

#26 Watcher on 04.21.17 at 7:49 pm

So let me get this straight….I can hustle my butt off to become a skilled professional and build a thriving business. But when I look at how much a maxed RSP gives me at the end of the line, it pales compared to my airline pilot defined benefit pension buddies. So instead of driving a fancy car and taking vacations, I take a low salary, live a frugal life, form an investment corporation and make constant investments in debt free, investment vehicles that spit cash. And now these socialist swine want to come and take it away? What do they want? For all of us to be mindless debt ridden idiots who depend on their benevolence for my wellbeing? When the Revolution comes, guess who will be leading the charge. Either that, or funding it from South of the border.

#27 OttawaMike on 04.21.17 at 7:49 pm

Lawyer Jim should have selected the plumbing door when choosing vocations.

#28 albertaguy on 04.21.17 at 7:52 pm

hi Garth, for those of us that have been left with little or no choice (IT contractors, no benefits, no pension) to create such corporate structures, would you and your high priced porsche driving team be able to provide a sound pro-active strategy to circumvent or at least mitigate the inevitable onslaught?

#29 Warren- the lagging indicator on 04.21.17 at 7:52 pm

Do you remember when you were a little child and that spoiled little bully-kid would change the rules of the game you were playing just as you were gaining ground or about to win. It seems to me that the Government, when viewed as an entity, passes policies that make you believe that it acts in a similar fashion sometimes.

#30 Big Dipper on 04.21.17 at 7:53 pm

Turner, I figured after your last massive fear mongering fiasco before the budget – which turned to be complete BS – you had learned your lesson and would muzzle your CON instinct, and suck your thumb for awhile.

But no such luck. Your primal urges won, and once more you spout scary ideologically based nonsense.

-Record household debt? Started long before the T2 govt. with no care or response from the CON’s

-Record house prices: Ditto

-Record spending: Needed to stimulate the economy after the CON disaster.

-Record tax: lower middle income taxes from T2. Not so much for Turner’s buddies.

Yes, you’re bigly into the CON ideological propaganda machine. Your fawning admirers and T2 haters will surely love you for it.

#31 JSS on 04.21.17 at 7:55 pm

Will dividends on TSX-issued common shares, preferred shares, or REIT distributions be subject to a higher tax as well?

#32 Sunburned canuck on 04.21.17 at 7:59 pm

Canadians should have no fear.
Justin Trudeau is a Rock Star and knows what he is doing.
God bless all those who voted for a great leader who looks good and has tattoos.

#33 crossbordershopper on 04.21.17 at 8:00 pm

if he changes the whole small biz corp rate, div out etc. structure, get ready for a lot of people to walk. its the only thing left in Canada. If Trumpster lowers the tax rate etc, why would anyone of stature stay here to pay 50% of their income in tax till they die. No it isnt going to happen, if it does, trust me, they will walk they wont put up with it

#34 MILL BAT on 04.21.17 at 8:02 pm

Whats wrong with Jim making less than a plumber? Plumbers provide an important service and produce a quantifiable product, are well paid for it. Lawyers as part of Garths hi earning “professionals” class of useless talking heads produce nothing of any value yet feel as entitled as Garths “moisters” living in moms basement. Garth must realize that way too many useless people are making huge incomes and doing a shitty job in their chosen “profession” Justin included. If Ottawa can claw back taxes from these parasites than so be it…, so sad

#35 Smoking Man on 04.21.17 at 8:06 pm

I refuse to give in.

And this my friends is why I’m forced to selling Shlong Branch long before the peek.

I had a good gig downtown, 100 bones per hour, 10 hour days, do the math. For anyone fortunate enough to buy my book, you will realize that my sweet Heather is unemployable. So I had to make the big bucks and legally split. I still ended up paying a shit load of loot to blood-sucking pirates.

Working for the best swap trader in Canada, and the bond desk, and Debt Cap Markets, strips desk, and Equities, even projects in finance for compliance.

I blew it, not because I’m not good, every trader that I have ever worked for respects the shit out of me, and they all know I’m a bit smarter than them all. We aren’t even talking predictive skills, that’s the desert served up free on here every night.

I had no animosity pulling down a quarter million every year. It’s did not bother me that my traders are all making in the mid 7 figures. The way I looked at it, making DR loot doing a hobby I love was enough for me. They have flooded the IT world with Temporary Foreign workers, the rates are diving. While the cost of living skyrocketing.

But I got a big mouth and drinking issue. But when you know the guy driving the big blue ship is a full blown commie, right in there with T2 and the Davos crowd, using the right words to soothe snowflakes and get them working for almost nothing pissed me off.

I tossed in the towel, went smoking man on linked in ensuring I would never get another gig in Canada again. Best thing I ever did.

Driving up to Muskoka tonight I drove by these big houses on wheels. My dock is completely under water. One more property to flip. It’s going to be me, my woman and my two four pound poodles listing to Cash on a house on wheels driving down south, destination unknown.

54% income tax….FU

Dr. Smoking Man
Ph.D.. Herdonomics.

#36 Ex-Cowtown on 04.21.17 at 8:06 pm

” No pensions, no benefits …etc” No kidding. I’ve NEVER been able to take a paid sick day off, have a medical or dental plan pay for as much as one filling, cleaning or cap for myself or my wife or kids. 100% cash payments for everything.

I’m just feelin’ so Tru-boned these days it ain’t even funny.

#37 Jas on 04.21.17 at 8:06 pm

Govts. of all colors are good for nothing.
People in power live in world of their own….utterly detached from ground reality.
Kick ’em out.

#38 yawn on 04.21.17 at 8:07 pm

I will trade my government benefits and pension for double my income any day of the week. The world’s tiniest violin is playing here Garth.

Crying poor while you are better off than everyone else is unbecoming.

#39 Take this tax and shove it! on 04.21.17 at 8:08 pm

Tax, tax and more tax. When will it end? I hope all those Social Justice Warrior Millenials are happy with this dummy they elected into power. Next stop – backlash from us deplorables when we vote in numbers for Kevin O’Leary.

#40 young & foolish on 04.21.17 at 8:10 pm

Who said socialism was dead?

#41 wallflower on 04.21.17 at 8:13 pm

#4 traderJim on 04.21.17 at 7:05 pm
and, what were his grades, and what was his father’s contribution?

#42 I'm Not Poloz on 04.21.17 at 8:19 pm

Canada is turning into a full-blown 3rd world Socialist republica, excepting that the dating market in Canada is very terrible if you’re seeking Marriage in Canada.

Unless you’re Justin Trudeau who even made Kathleen Wynne blush of all people, and have a feminist wife who is also a hot babe.

Or Poloz and Morneau who want us to work for free under a US$0.40 Loonie and where houses cost over $4,000,000 increasing by 40% every Y/Y, while refusing to increase the Interest rate to protect savers and for retirement.

#43 cj on 04.21.17 at 8:20 pm

Jim’s scenario is reflective of many small businesses just getting by. I read somewhere that small businesses are also the backbone of employment because of the % of people they employ.
My husband and I were in business for 18 years, employing 10 people while also working at our relatively secure jobs. Thank goodness we did have other jobs because the long hours and minimal pay wasn’t worth it financially. It was the idea of creating a business that addressed our passions for technology.
After 18 years we broke even and had a wealth of experience about private enterprise. We need entrepreneurs in our economy. Stifling them with more restrictions and higher taxes is not the answer. I also think that we live in an era of entitlement. This mentality does not understand the risks businesses undertake to make a living.

#44 crowdedelevatorfartz on 04.21.17 at 8:24 pm

When will we wake up?

When THIS socialism experiment happens here?

http://www.google.ca/url?url=http://www.cnn.com/2017/04/21/americas/venezuela-crisis-explained/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwit6eeQ5rbTAhVB82MKHQOdDTYQqQIIFzAA&usg=AFQjCNFkSGNvhBLsefwi-KwficmmH5tQRg

#45 Alex on 04.21.17 at 8:25 pm

With all respect Gart,

Just all this “rich hunting” was being posted in this blog as “guaranteed” for this (2017) year budget. Including Hiking the capital gains inclusion rate in selected circumstances to 100%, and in all others to (possibly) 75%

And reality? Just nothing…”this time is different” , eh? In a year before elections?? Seriously???

I have no doubt we got maybe most incompetent govt in last 20 years (family legacy, no doubt), but they are not so bad in terms of trying to be (re)elected

Thus, I highly doubt they will do such harsh moves just with election next year. Either they think legalize will magically solve all this problems…

#46 Looney Baloney on 04.21.17 at 8:29 pm

Is that a ghost I see in the background of that pic?

#47 Ret on 04.21.17 at 8:32 pm

Most lawyers would have been way better off to be cops or firefighters. Show up out of high school and start making top money and benefits including gold plated pension.

As well, you will have a public sector union cover your back if anyone ever dares to question your work performance.

Plumbers have an tough 5 year apprenticeship at low pay after high school, invest in their own tools, supply a commercial vehicle, and have to listen to everyone complain about their bill for the next 35 years.

#48 m212 on 04.21.17 at 8:35 pm

Who is John Galt?

#49 Loose Moose on 04.21.17 at 8:43 pm

Re: a tax on retained earnings – Garth do you have insight as to how this would be implemented? I asked my accountant this very question the day before the budget was released. He said it would be impossible, short of restructuring our entire tax system.

Salary vs dividends – Meh…no real advantage here or there

Difficult to pay yourself capital gains instead of dividends/salary without running afoul of the existing tax code. This is largely a non issue for most CCPCs.

In my opinion the low hanging fruit for the government will be dividend sprinkling to spouses/adult children. I can see them getting rid of this one for sure, just like they did with minor children a number of years back.

#50 boonerator on 04.21.17 at 8:47 pm

#34 MILL BAT on 04.21.17 at 8:02 pm

Whats wrong with Jim making less than a plumber? Plumbers provide an important service and produce a quantifiable product, are well paid for it. Lawyers as part of Garths hi earning “professionals” class of useless talking heads produce nothing of any value yet feel as entitled as Garths “moisters” living in moms basement.

———————————————————–
I love these people ranting on lawyers right up until the time the insurance company tells them they are faking their injuries and refusing to pay.
All of a sudden “useless talking heads” become “the wonderful professional that’s going to get justice for me”.

#51 Smoking Man on 04.21.17 at 8:47 pm

#28 albertaguy on 04.21.17 at 7:52 pm
hi Garth, for those of us that have been left with little or no choice (IT contractors, no benefits, no pension) to create such corporate structures, would you and your high priced porsche driving team be able to provide a sound pro-active strategy to circumvent or at least mitigate the inevitable onslaught?
….

I’ll answer that.

Get out of dodge.

Open up an Ice cream store in St Maarten, Buy a house on wheels and head south, let the TFW f things up, come back in 4 year years and triple your rate to fix the problems they created. And work real slow……..

#52 TRT on 04.21.17 at 8:48 pm

Le Pen wins France elections this weekend.

Polls are wrong. No one will admit they voting for Le Pen when asked.

Euro will tank. Hope you shorted.

Le Pen win = $100,000. Loss = -$10,000

#53 Bob on 04.21.17 at 8:50 pm

Yes, it has felt like we have been going in the wrong direction…but for quite a long time, not just the last couple of years. The problems and issues did not start with T2 and his crowd…just enhanced by them so to speak.

The way our society has ‘evolved’ in the last 20 years has led me to believe that it will get worse as the years go by. It will be a tough ride for anyone who wishes to try and keep a larger portion of profit from the fruits of their labour. Sad but that is the reality of life in Canada today.

#54 Fox Trot on 04.21.17 at 8:54 pm

No Jamal. YOU be trippin’…

#55 Smoking Man on 04.21.17 at 9:00 pm

Under commie culture, Punish risk takers, reward suck-ups, and lazy victims.

That’s the day you become Venezuela and a leaf ticket price crashes so you can finally see a game live.

But you can’t eat

Priorities.

#56 45north on 04.21.17 at 9:04 pm

Record household debt. Record house prices. Record spending. Record tax.

which says it all

the rest is a smoke screen: foreign buyer tax, speculation tax, empty house tax and rent controls. That they won’t work is not important, they are a smoke screen. Their purpose is to distract.

This blog is the only place where people can see the truth.

#57 Ken in BC on 04.21.17 at 9:05 pm

#11 Gasbag Boomer

I too thought thought the same thing. However, if you just bow out, someone else will step in and do the job you are doing and pay the +50% tax. Best thing to do is do the same job and tell your company you will do it for $30k

#58 Ontario Doc on 04.21.17 at 9:09 pm

#21 Shameful
“The plumber that your friend resents is the one that wakes his ass off at 5am so your house isn’t full of shit (literally) when you come back home from “work”.”

Well Shameful. I am an intensive care doctor. I work an average of 80h per week and “wake my ass off” (if an ass can do that) at 5am to make sure people like you don’t die. I have no pension and a corporation for me is largely a tax deferral vehicle to save for retirement. I need it because the other retirement saving vehicles don’t allow for enough room for “rich” people to save enough for retirement (we have a much shorter earning career length since we train for ~15years before really earning money). When you take money out of a prof corp it is taxed the rest of the way as if you took it as salary in the first place. Kinda like an RRSP without the tax rebate up front. We are working people too – you should have respect.

#59 Smoking Man on 04.21.17 at 9:11 pm

I just found an 18-year-old bottle of scotch in the shed in Muskoka.

I’ll probably be not post anything today after this one tonight. Use your imagination Dogs.

I look forward to meeting the brave bastards at the general store on Saturday, May 13th. 2017.

Should I show up in my shit pick-up truck or the wife’s german machine?

My gut says, a plasma flyer. don’t think you dogs are ready for that one.

#60 leebow on 04.21.17 at 9:12 pm

Oy vey….

Disgusted you are? Canada you must leave.

#61 For those about to flop... on 04.21.17 at 9:14 pm

I just got a card in the mail telling me where to vote for the provincial election.

I have never voted in Canada although I have been here 15 years ,but I remember the feeling of a lot of people when got here in 2002 about how bad the NDP was last time around.

I either see myself not voting or voting NDP while doing my breathing exercises.

I only become a Canadian citizen a few years ago and have always felt like an outsider,part of that my own fault as last time I checked I am eligible to live here,Australia,New Zealand and Fiji and was not totally committed to this country.

The last decade or so it has not been fun watching the B.C Liberals bowel wipe the people of this province…

M42BC

#62 Balmuto on 04.21.17 at 9:20 pm

“#52 TRT on 04.21.17 at 8:48 pm
Le Pen wins France elections this weekend.

Polls are wrong. No one will admit they voting for Le Pen when asked.

Euro will tank. Hope you shorted.

Le Pen win = $100,000. Loss = -$10,000”

She might win, but she won’t win this weekend. This is only the first round. She would need 50+% of the vote to win this weekend and that ain’t gonna happen. What could happen is you get Le Pen and Melenchon to the second round, which would certainly spook the markets because Melenchon is far-left and a) might not beat Le Pen and b) would be possibly as bad or worse for France/Europe’s economy. That would be a nasty surprise.

#63 GB on 04.21.17 at 9:21 pm

For goodness sakes. It is just the healthy ebbs and flow of economic balance. Over the past two decades the wealthy have enjoyed tremendous breaks and incentives resulting in a very unhealthy wealth gap.

The wealthy got wealthier and did not trickle that down(they never do). And so a healthy balance must be restored. Simple economic policy being executed perfectly.

Eventually, the balance will shift again…and that too will be healthy.

#64 Pre-retiree on 04.21.17 at 9:22 pm

#21 Shameful
And odds are the plumber just works more when he wants more money instead of going to professional snakes that help him cheat taxes by income splitting with his wife through corporate loopholes. Show some respect for the working people of Canada please.
___________________________

I doubt that the plumber living two houses down from me in a $1M dollar house is not incorporated…….

#65 NoName on 04.21.17 at 9:23 pm

#51 Smoking Man on 04.21.17 at 8:47 pm

“come back in 4 year years and triple your rate to fix the problems they created. And work real slow……..”

There was no need to wait 4 yrs, banks are desperate for people that know cobol and “old stuff”. if you know cobol time is now.

Banks scramble to fix old systems as IT ‘cowboys’ ride into sunset

“The stakes are especially high for the financial industry, where an estimated $3 trillion in daily commerce flows through COBOL systems. The language underpins deposit accounts, check-clearing services, card networks, ATMs, mortgage servicing, loan ledgers and other services.”

#66 Tudval on 04.21.17 at 9:23 pm

“Minister Chris Ballard says the Ontario government was not prepared to wait for data to be collected before taking action on the housing market. (Canadian Press)”

You’d have to wonder why they are still spending money to collect the data after the fact.. don’t they think it may be a little skewed after the tax is implemented?.. I’d be really curious what these people’s brains are made of, not the same material as mine, I’m pretty sure.

#67 Ace Goodheart on 04.21.17 at 9:26 pm

RE: #48 m212 on 04.21.17 at 8:35 pm:

“Who is John Galt?”

Anne Rand forever dude. Atlas shrugged.

#68 Darryl on 04.21.17 at 9:28 pm

Worst government we have ever had . Provincial and Federal .

#69 paulo on 04.21.17 at 9:28 pm

had a interesting afternoon with a Chinese friend from mainland china he and his family are well to do and invested in businesses, restaurants and real estate
all in the gta area his thoughts, he is exiting Ontario and thinks that the vast majority of Chinese from mainland will also leave,and that new money will be looking elsewhere the usa and mexico of all places.
these people are concerned that this only the beginning
of new taxes

#70 Trojan House on 04.21.17 at 9:31 pm

Ah hell…why don’t we just get it over with and move to 100% taxation on everything?

I’m willing to pay my fair share.

#71 Darryl on 04.21.17 at 9:33 pm

great Leaf game though

#72 leebow on 04.21.17 at 9:37 pm

Dam, if I was the Smoking Man, I’d come up with a rant.

#73 NEVER GIVE UP on 04.21.17 at 9:39 pm

#4 traderJim on 04.21.17 at 7:05 pm
Quick google search finds that President Trump graduated from Wharton, with a Bachelor of Science.

Entrance requirements for Wharton correlate to an IQ of 145 to 156.

That would mean Trump almost certainly belongs in the 99.99 club, meaning he is smarter than 99.99% of the people on earth.

(Bill Clinton also had an incredibly high IQ of around 148)
============================

Means nothing. You can buy your way into any school.

https://www.quora.com/What-is-the-average-IQ-of-students-attending-a-prestigious-university-Harvard-or-MIT

https://www.quora.com/Can-you-get-into-HBS-Wharton-or-Stanford-GSB-with-a-horrible-GPA

#74 Ace Goodheart on 04.21.17 at 9:39 pm

RE: #63 GB on 04.21.17 at 9:21 pm:

“For goodness sakes. It is just the healthy ebbs and flow of economic balance. Over the past two decades the wealthy have enjoyed tremendous breaks and incentives resulting in a very unhealthy wealth gap.”

One last comment before I go downstairs and spend the rest of the evening drinking craft beer and watching old shameless episodes…

People who run CCPCs are not “the wealthy”. Doctors and lawyers are people who were for the most part born poor, actually bought into the whole “get an education” garbage that they feed to the kids to keep the teachers and the profs employed, and somehow got out of the whole dung pile with marketable skills (as opposed to degrees that will get you nothing more than a day shift position at “Unicorn Frappe” S…b..cks).

Dude, there is no such force in the universe as “the healthy ebbs and flow of economic balance” You live at the base of a turbulent and unforgiving brutal economic ocean, supported on your side by armed forces and weaponization that you cannot even imagine. You get your safety net out of crumbs thrown to the birds to keep them from rioting in hunger. You have no idea.

Every so often the powers that be make a mistake. They are making a huge one right now. That gives the rest of us an opportunity to increase our fortunes, if we can only see the stupid thing that has happened.

The parrots are singing a tune that is not being spoken by their masters, completely by accident, listening to echos. The next six months will be among the best buying opportunities in the last 20 years. They have really messed up this time. They know what they have done, and they are scrambling. There is this little window of opportunity before things close up again.

My advice is to take it.

#75 leebow on 04.21.17 at 9:40 pm

Funny thing is that so many years ago I was paying almost 50% tax rate making only 15/hr. You can imagine how many hours I worked. It was in QC.

#76 Shameful on 04.21.17 at 9:41 pm

#58 Ontario Doc

If you’re working 80hrs a week and you’re not a resident it means you’re not doing it so I don’t die, you’re doing it because you love money. Plus it’s dangerous as shit, you’re working fatigued in ER putting peoples lives in danger because you want more money. And don’t give me this doctor shortage story, your professional association creates quotas just like with the milk, there could be 2 docs working 40hrs a week and taking a quarter mil each per year, but that’s not enough for you is it. You have your supply management keeping a shortage so you can work 80hrs and milk the government for money.

Did you make your love of money known to the med school selection board during your interview? Because there’s plenty of other smart kids that could have done what you’re doing without whining about how half a million a year isn’t enough and you don’t want to pay your taxes.

I bet you’re gonna be real mad if you can’t income split with what I can only assume is a stay at home spouse. Which is cool, do whatever you want, but why do you get to split when other working chumps don’t?

If you love money move to the states, I hope the policies of this government make it clear what the prevailing Canadian values are. This isn’t North Korea. You can leave if you don’t like it.

#77 TurnerNation on 04.21.17 at 9:42 pm

I get the picture. Today’s rich are being PUNished.

#78 CalgaryRocks on 04.21.17 at 9:43 pm

Hey CalgaryRocks on 04.21.17 at 6:37 pm
By your own admission , how LITTLE are you saving in price gouging liberal California ?

Yeah man. You can’t save any money in Commiefornia as a middle class. Unless you live like a miser, but I don’t need to do that anymore.

Not like when I lived in Calgary, paid off my house and cashed out at the top. Plus a side business, 2 flips and all that saved after a low tax rate.

But in Commiefornia you can build your resume and then use that experience and network to earn bigly after moving to a sane state.

Anyways, once you have some decent net worth you’re not concerned with saving money. It’s more about the experience and lifestyle.

#79 Freedom First on 04.21.17 at 9:45 pm

#23 Ace Goodheart

Great post Ace!

It is always wise to have the liquidity to take advantage of opportunities.

Keeping it simple and enjoying every day. It’s how I roll.

#1
Freedom First
Master of Freedomonics

#80 NEVER GIVE UP on 04.21.17 at 9:48 pm

#63 GB on 04.21.17 at 9:21 pm
For goodness sakes. It is just the healthy ebbs and flow of economic balance. Over the past two decades the wealthy have enjoyed tremendous breaks and incentives resulting in a very unhealthy wealth gap.

The wealthy got wealthier and did not trickle that down(they never do). And so a healthy balance must be restored. Simple economic policy being executed perfectly.

Eventually, the balance will shift again…and that too will be healthy.
=================================

You disagree with our esteemed Blog Master who sincerely believes that he should be able to hang on to more of his stash.

The wealthy have all the cards stacked in their favor and feel the poor don’t deserve the same breaks because they were born poor or less intelligent.

Mostly wealth is obtained by luck coupled with opportunity and readiness to use that opportunity that makes one family wealthier than another.

Proof of this is the very fact you were not born in Nigeria!

Tax laws are universal. There are no special breaks for the wealthy. — Garth

#81 Bloated govt scum must die on 04.21.17 at 9:55 pm

DELETED

#82 NEVER GIVE UP on 04.21.17 at 9:58 pm

#74 Shameful on 04.21.17 at 9:41 pm
#58 Ontario Doc

If you’re working 80hrs a week and you’re not a resident it means you’re not doing it so I don’t die, you’re doing it because you love money. Plus it’s dangerous as shit, you’re working fatigued in ER putting peoples lives in danger because you want more money. And don’t give me this doctor shortage story, your professional association creates quotas just like with the milk, there could be 2 docs working 40hrs a week and taking a quarter mil each per year, but that’s not enough for you is it. You have your supply management keeping a shortage so you can work 80hrs and milk the government for money.

Did you make your love of money known to the med school selection board during your interview? Because there’s plenty of other smart kids that could have done what you’re doing without whining about how half a million a year isn’t enough and you don’t want to pay your taxes.

I bet you’re gonna be real mad if you can’t income split with what I can only assume is a stay at home spouse. Which is cool, do whatever you want, but why do you get to split when other working chumps don’t?

If you love money move to the states, I hope the policies of this government make it clear what the prevailing Canadian values are. This isn’t North Korea. You can leave if you don’t like it.

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

Spot on Shameful!

Even more egregious is the Crony Capitalism of Dentists who can have their licences yanked if they compete on price.
Dentists make way more, Why?
The Dental college turns the tap on and off at will to control supply and make damn sure no one has to work too hard for their $500k per year income.

So, be a dentist. — Garth

#83 bigtowne on 04.21.17 at 9:58 pm

After flying into Seatac airport in Seattle and waiting for the Greyhound to take me and the busload of Canadians north to Vancouver, B.C., back maybe fifteen years ago the bus driver a Bill Gates look alike gave us a “Garth like heads-up”.

Kay; Kay; so I am somewhat certain it might have been Bill Gates or could have been Bill Gates…who cares what is important is Bill’s narrative goes like this;
There once was a PIG and the tribe on occassion got hungry so they said: slice off a leg; this horrific hunger possessed the tribe over and over and finally they were down to the third leg…Jeepers dontcha no we pulled into van. I slept at the new Y where they cram ya in five to a room and what next but some breather had to open the window. Van in Jan is freakin cold with the damp.

#84 NoName on 04.21.17 at 10:07 pm

#59 Smoking Man on 04.21.17 at 9:11 pm

German machine it is !!!

https://www.youtube.com/watch?v=4dsgQb3jkk4

#85 Mike on 04.21.17 at 10:23 pm

Wow, spot on timing on this one Garth. I’m looking at buying a business here in AB (not sure what yet, as there is a lot of overpriced, cash strapped businesses for sale with not very many promising ones on the market).

I guess I’ll be picking my accountants brain about this as I don’t want to get caught in the middle of an audit due to a rule change mid stream that I don’t catch. Thanks!

#86 Barb on 04.21.17 at 10:23 pm

T-2 is making Harper look good.

The bastard.

#87 m212 on 04.21.17 at 10:24 pm

Was Anne the sister of Ayn?

#67 Ace Goodheart on 04.21.17 at 9:26 pm
RE: #48 m212 on 04.21.17 at 8:35 pm:

“Who is John Galt?”

Anne Rand forever dude. Atlas shrugged.

#88 Oh come the f on now on 04.21.17 at 10:25 pm

So, be a dentist. — Garth in 2017

“Nobles get legislated privileges that are bullshit”
“So, be a noble.” – Garth in 1017

“Pirates killed my crew and robbed my cargo”
“So, be a pirate.” – Garth on the open seas

“A minority is enriching itself unfairly at the cost of the majority”
“So, be part of that group” – Garth generally

So, git at her. — Garth

#89 economictsunami on 04.21.17 at 10:29 pm

It was both ironic and instructive that Fitch cut Italy’s debt to one notch above junk:

“…citing the country’s huge debts, stagnant economy and divided politics.

The Italian economy is dragged down by an aging workforce and low productivity. Fitch expects it to grow just 0.9 percent this year, same as last year.”

Many countries are heading in the same direction but lack the motivation to do anything other, then the time honoured tradition, of extend and pretend…

Central Banks Have a $13 Trillion Problem: Paycheck to Paycheck

http://www.acting-man.com/?p=49180

Fantasyland Reality Check: Fed’s Beige Book Makes Absurd Claims in at Least 3 Places

https://mishtalk.com/2017/04/19/fantasyland-reality-check-feds-beige-book-makes-impossible-claims-in-at-least-3-places/

#90 GFD on 04.21.17 at 10:35 pm

. . . what a mess.

#91 GFD on 04.21.17 at 10:39 pm

Did anybody notice it’s hard to get cheap chinese shxt off the eBay? It looks like it all disappeared. Must hide behind VPN.

#92 Wack on 04.21.17 at 10:43 pm

I miss Stephen! :(

#93 akashic records on 04.21.17 at 10:44 pm

#65 NoName on 04.21.17 at 9:23 pm

#51 Smoking Man on 04.21.17 at 8:47 pm

There was no need to wait 4 yrs, banks are desperate for people that know cobol and “old stuff”. if you know cobol time is now.

Banks scramble to fix old systems as IT ‘cowboys’ ride into sunset

“The stakes are especially high for the financial industry, where an estimated $3 trillion in daily commerce flows through COBOL systems. The language underpins deposit accounts, check-clearing services, card networks, ATMs, mortgage servicing, loan ledgers and other services.”

===

Not that there is anything wrong with COBOL, but blockchain can take care of this in very short order.

Mind you, it raises the question of redundancy for banks to do all of those services that you listed.

#94 akashic records on 04.21.17 at 10:55 pm

Even more egregious is the Crony Capitalism of Dentists who can have their licences yanked if they compete on price.

So, be a dentist. — Garth

I thought you were pro free market Capitalism.
Your entire post tonight was suggesting it.

Why is a real estate price cartel worst than any other professional cartel?

Looking forward to hear from you next time “so be a real estate agent”.

#95 DD on 04.21.17 at 10:56 pm

@Shameful
@Never Give Up

Oh boo hoo you special snow flakes.

#96 Victor on 04.21.17 at 10:59 pm

Over 121000 Toronto homeowners own multiple homes in the city, the number grew fast and is equivalent to 14% of all sales in 2016…
https://betterdwelling.com/city/toronto/foreign-buyers-domestic-greed-121000-toronto-homeowners-multiple-homes-city/

#97 LaLa on 04.21.17 at 11:00 pm

CNN-esque title today.

“Tax laws are universal. There are no special breaks for the wealthy. — Garth”

How does one profitably offshore ones earnings as a middle class wage earner?

Serious question.

Tax evasion is not a tax break. If it was we’d be talking about cash rent for the basement suite. — Garth

#98 bill on 04.21.17 at 11:02 pm

yup! really bigly….

#99 Barb on 04.21.17 at 11:10 pm

To “shameful”

Your handle isn’t a misnomer.
And your abject jealousy shines through loud and clear.

#100 LaLa on 04.21.17 at 11:15 pm

“Tax evasion is not a tax break. If it was we’d be talking about cash rent for the basement suite. — Garth”

I was referring to legal tax avoidance which move earnings to low tax jusrisdictions, the type that many, and almost exclusively, wealthy entities utlize.

#101 akashic records on 04.21.17 at 11:17 pm

Tax evasion is not a tax break. If it was we’d be talking about cash rent for the basement suite. — Garth

Why waste time and effort on such low hanging fruit?

Nobody becomes m/billionaire for renting out basements for cash. Basement landlords are not offshore clients – everybody knows that.

#102 SI2K on 04.21.17 at 11:18 pm

#4 traderJim

45 attended Fordham for two years before transferring to Wharton. This usually means you didn’t have the quals at the get go. IQ-related entry not so much with that crowd, anyway. More whether your daddy is donating a building. The high-IQ crowd just sort of tolerate these dudes, bc they’re going to be our bosses, regardless. He’s an excellent case in that point.

#103 Eric on 04.21.17 at 11:24 pm

Welcome to Cubanada!

#104 Nonplused on 04.21.17 at 11:31 pm

The new 2018 simplified Trudeau-Morneau tax form:

Box 101 Total Gross Income:

Send it in.

#105 NOTHING SURPRISES on 04.21.17 at 11:32 pm

Possibility something to consider.

Greater income for public projects if farm land taxed at proper rates ??

– Farm land value not taxed properly.

– Farmers incorporate.

– Small corporation pays very little tax.

– Corporation pays all farming living costs; farmers
(corporate shareholders) don’t show anything but
minimum income, usually none taxable levels.

– Sons & daughters obtain maximum loans etc. available
for higher education as parents show minimum income.

– Parents through their corporation, purchase residence
for their offspring to live at location of their higher
education pursuits ….. student housing costs are nil!
Realty expenses paid from corporate cash flow. Later
sold at a profit

– Farmers have no money.
They will tell you this sitting in their new cars/trucks
with all the bells & whistles, on a cruise, on tour in
Europe or at their summer cottage.

– Farm corporation installs solar and/or
windmills making obscene profits still taxed minimally.
Should be taxed designated as commercial/industrial
sites and taxed as such.

– Myth: Increase farm taxes increases food costs. Not
true!

– Farm Pensions are fulfilled by selling quotas for
millions or sell their farms at over $25,000 per acre in
S.W. Ontario. Standard 100 acre farm sells for $2.5
million +.

#106 NoName on 04.21.17 at 11:36 pm

#93 akashic records on 04.21.17 at 10:44 pm

Not that there is anything wrong with COBOL, but blockchain can take care of this in very short order.

Mind you, it raises the question of redundancy for banks to do all of those services that you listed.

—-

i dont se how block chain will reduce redundancy, maybe will reduce it for bank but it will put strain on all parties involved because they have to store and manage “ledger” of evry and everyones transaction, if anything blockchain it would add one more layer of complexity for consumers. Why would i have to know and store all your and everyone else’s financial transactions. blockchain, time stamp, tramp stamp who cares whats used, how long machine says approved…

every so often we hear about bitcoins being stolen from someone, everyone knows that block chain cant be faked but yet bitcoins are being stolen more and more often, did you ever heard that someone got his coins back?

read

http://www.businessinsider.com/a-thief-is-attempting-to-hide-100-million-in-stolen-bitcoins-and-you-can-watch-it-live-right-now-2013-12

Those observing the chase on Reddit seem to believe that the thief will either eventually get away with it, or the money will be “lost” by becoming irretrievable:

You aren’t going to get anything back. None of you are going to get anything back, and it’s by design. This is EXACTLY how Bitcoin is supposed to work. Bitcoin would be fundamentally broken if you somehow got your money back.

#107 Still employed in AB on 04.21.17 at 11:37 pm

SO MANY LOSERS POSTING TONIGHT….AND ITS NOT YOUR WAGE ITS YOUR ATTITUDE!!! The truth is most of us are average and as a result average people have to pay for average services. Time for Canadians to pull their socks up and become productive owners. I don’t care if you start a small business or invest in a large publicly traded one. Lusting after someone else’s earning won’t get you anywhere.

#108 Blog Dog Joe on 04.21.17 at 11:42 pm

At least Putin won’t have to go to the trouble of meddling in our election. We are becoming Russia all on our own!

#109 IHCTD9 on 04.21.17 at 11:48 pm

#69 paulo on 04.21.17 at 9:28 pm

…these people are concerned that this only the beginning of new taxes
—-

They are right. We’re going to be getting it from all three levels of government too. They’re all broke, commodities are stagnant and will stay that way for the foreseeable future, economy is flopping like a fish out of water, public sector ever expanding and more expensive, borrowing by Trudeau is supersonic, and the lefty birdbrains in charge have all but destroyed any hope of new business investment.

They are going to have one HELL of a time growing revenues without putting the coal to new taxation.

#110 For those about to flop... on 04.21.17 at 11:54 pm

Here’s the latest offering from my buddies at how much…

M42BC

The Tremendous Price Disparities of Everyday Items in 10 Major Cities

“Singapore is the world’s most expensive city, but that dubious accolade is just an average of a wide range of prices. If you drill down to individual product categories, the picture shifts dramatically. For example: if you like your cigarettes, you are worse off in New York City – as shown on this graph. In the Big Apple, a pack of twenty branded cigarettes costs a whopping $14.25. That is about 50% more expensive than in Singapore. And almost four times as much as in Seoul – the cheapest of the world’s ten most expensive cities, if only for smokers.”

“To lifelong residents and occasional visitors alike, New York can feel like the priciest place on the planet. But according to a recent survey by The Economist, Singapore is the world’s most expensive city for the fourth year running. New York only comes in at ninth place, ex aequo with Copenhagen. Filling out the Top Ten are Hong Kong in second and Zürich in third place, followed by Tokyo, Osaka, Seoul, Geneva and Paris.”

https://howmuch.net

#111 Economystical on 04.21.17 at 11:55 pm

Garth, I guess I have to give you one more lesson in Economystics.

When a corporation retains earnings, whether they be earned by a professional or by a larger corporation, the retained earnings burn a hole in their pocket and they do things like invest in other hopefully profitable endeavors or plant and equipment. This is called capitalism and it is so outdated. Would you want Adam Smith involved in making financial policy today? Certainly not.

In Adam Smith’s day he had a very, very simple understanding of economics that can be summed up by looking at a simple farmer. Said farmer in good years may harvest and sell more wheat than he needed, and use the excessive profit to buy a tractor, reducing his need for labor in the future. This was one of the things Adam Smith called capital, the reinvestment of previous earnings into future increased cash flow. This was so wrong. As we know now, the correct thing to do is for the farmer to lease a tractor, thus employing a bunch of bankers, pay his remaining labor at least $15/hour under minimum wages laws, and be prevented from laying any of them off when the tractor arrives. The farmer should also be taxed 100% on anything he earns above $15/hour himself.

This way the government gets all the profits above a socially just level for redistribution, and through the lease new money is created equal to the cost of the tractor plus interest that would not have existed if the farmer paid cash. Thus we are all twice as rich.

There is a certain sort of barrier to understanding Economystics that you have to “transcend”, but once you do it’s like reaching enlightenment.

Remember the goal of Economystics as I have stated before: “A free lunch for everyone and no one working in the kitchen.” But I suppose I didn’t make clear that everyone is going to be eating the same thing. There will be no steak sandwich for those who would take more than their far share by working hard or smart, these people are selfish. We will all eat oatmeal in perfect, socially just harmony. Well except for me of course because I get paid by the government so I’ll be eating steak. Probably New York strip loin. Whatever is the most expensive thing on the menu. And the largest steak they have none of this 8 ounce crap, what I don’t eat I can feed to my dog, reducing the amount of kibbles he needs and therefore making more food available for seniors, furthering social justice even further.

Economystics has the promise of forever freeing mankind from the binding chains of mathematics, physics and reason. Come on board. The future awaits. It is a future where we all have everything we could possibly want and nobody has to work to create it. (Just don’t set your sights to high on what you want, we’ll be deciding that.)

#112 Entrepreneur on 04.21.17 at 11:59 pm

People and businesses have being moving out of B.C. for a long time now, mostly to Alberta or U.S. The “can’t get ahead and taxed too much.” In Victoria businesses were closing their doors.

Communities are slowly shutting down. And people are moving on and away. Surrounded by miles and miles of forest but the logs are trucked/shipped away. The niche business is not working any more as it cost too much to live now.

As for the housing prices and the action of the leaders: Vancouver had working people living in their vehicles/boats for a decade or more; Victoria is seeing working people living in their vehicles; middle island, working people are living in living in whatever they can afford (tents, trailer, rv). Any working person living in their vehicle in Toronto, yet?

Is free international trade working for some but not for all? Is this why Britain and U.S. want out? Now remember leaders are suppose to speak and lead the people of a country, not just a few.

#113 yorkville renter on 04.22.17 at 12:14 am

I dont understand how you tax retained earnings… its affer-tax cash that’s sitting around, no? I understand if those retained earnings earn additional income, but how do you justify cash sitting idle?

#114 Karma on 04.22.17 at 12:22 am

#69 paulo on 04.21.17 at 9:28 pm
“had a interesting afternoon with a Chinese friend from mainland china he and his family are well to do and invested in businesses, restaurants and real estate
all in the gta area his thoughts, he is exiting Ontario and thinks that the vast majority of Chinese from mainland will also leave,and that new money will be looking elsewhere the usa and mexico of all places.
these people are concerned that this only the beginning
of new taxes”

I’m sure your friend is a good guy and all. But I don’t feel bad for them. Mainland China doesn’t reciprocate the same openness as Canada does to their citizens. So after a while, it’s only fair that the overbalance is altered back towards something more balanced.

#115 Charity on 04.22.17 at 12:25 am

#88
Bahahaha…. classic, Garth you are on tonight!

#116 Armando on 04.22.17 at 12:48 am

Trump probably won’t be able to lower taxes in the US, but at least he’s not trying to raise them! Looks like Canada has their own pretty version of Hugo Chavez in T2. Next up: Venezuela with lots of maple syrup and bad weather!!

#117 Welcome to Slurrey on 04.22.17 at 1:30 am

Tax evasion is not a tax break. If it was we’d be talking about cash rent for the basement suite. — Garth

………… Can you talk more about this, i know a lot of people who carry mortgages, suites cover the mortgage they carry. Ie : a 200,000 worth of mortgage is easily covered by cash rent from a suite …. there is no recourse

#118 For those about to flop... on 04.22.17 at 1:32 am

Pink Pollen falling in Richmond.

These guys with their latest reduction have fallen into Pink Pollen territory.

I’ve seen at lot more people in bigger trouble ,but this one is a townhouse and so I’ll put it up just to show that it’s not just detached houses that are proving to be a worrisome problem for their owners.

These guys paid 840k for this 15 year old townhouse and last time I looked you could get a relatively new one for around the same as they’re asking for this one in Richmond.

Maybe they will find someone who wants to reminisce…

M42BC

5 8388 Park Road, Richmond

Mar 6:$928,000
Apr 20: $898,000
Change: – 30000.00 -3%

https://www.rew.ca/properties/R2157887/5-8388-park-road-richmond-bc

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1V0ZWRA==

#119 wicked as it seems on 04.22.17 at 1:37 am

Having lived in Asia for 6 months every winter less a day !for the last 6 years.
i can tell you how bad you have it here in beaver land, that half of the year i live under my mention and investments average, the summer part in victoria with my own studio suite payed for, i find it hard to get by on said moneys!

#120 steerage steward on 04.22.17 at 1:42 am

But he failed in his efforts to convince governments that the proposed transcontinental railway should prioritize New Westminster, and ultimately failed in his bid for re-election, losing to Robert Dickinson in 1875, 59 votes to 38.

https://www.youtube.com/watch?v=HtBebT-rKeM

#121 Stock Picker on 04.22.17 at 3:34 am

Turdo and Moroneau…..two inheritance cases who fell assbackwards into positions neither is qualified for. Virani….a colour coded vote pandering nobody who has never created a job……great leaders…..not.

I said it many times……get the hell out of Canada. Trudeau is everybodies finger puppet……none of them adding benefit to Canadians. Trudeaus been told he’s needed to play the anti Trump by his UN handlers……he’s sent billions already for projects that produce nothing.

None of the money he’s lost in deficit spending has been directed at Canadians…..no…he needs those billions to send elsewhere. The country is screwed…..no one is going to pay over 50% of income to live there…..it’s become a dumping ground for UN policy dregs…..and those problems are going to hang around Canada’s neck like stinking meat until the Liberals are stuffed back in the sewer.

#122 Jay on 04.22.17 at 4:04 am

Tax away.

We should be taxing as much as we need to pay every nickel we spend (and pay down some government debt).

Does it suck being taxed? Of course it does! I’d love to take home more pay! However; the people asked for all this new spending. The money has to come from somewhere.

It’s really childish to whine about taxes and act like you can just cut taxes magically. The taxes are being used for something. If we want lower taxes, we need to figure out which spending we are ok with not doing. Simple as that.

#123 No it is not on 04.22.17 at 4:29 am

No, it is not just you :-) I agree on all accounts but the upcoming changes to taxation of corporations. As a multi-millionaire with a private corporation, I have always had an issue with most of the ways you list for famillies to avoid paying taxes that ordinary citizens cannot avoid. Some of the proposed measures are really overdue. I sympathize with the need to provide for your own old-age security as a small business owner, but there are sufficient other tax benefits to private corporations to keep fairness up. But techniques such as income splitting among non-taxed family members who do not provide real work for a corporation really should have been addressed already long ago.

Now, on all other accounts than tax reform for private corporations, I fully agree with you – we are heading in a disastrous direction. Soon we will face all of the problems the EU is facing, without the big-market benefits that the EU can still harness to soften the blow.

#124 Freedom First on 04.22.17 at 4:46 am

#36 Ex Cow-Town

You are not the only one who feels they have been Tru-boned.

Truth, me and others driving around Alberta can hardly believe our eyes. Some Albertans have removed their rear license plates on their vehicles and replaced them with plates that are nicely designed, but clearly state “Fuck You Trudeau” On the left side of the plate, with a very clear pic of Justin on the right hand side of the plate.

I’m just not feeling the love these days for Justin.

#125 Bezengy on 04.22.17 at 6:41 am

No on likes to pay taxes, but even this ultra right winger has to admit everyone should pay their fair share. If you make a million, congrats!, you get to keep half, now pay up. Talk to a CRA rep. and they’ll tell you the tax cheats are everywhere and it’s costing the average hard working Canadian a fortune.

Personally, I hope the CRA rakes in billions from Toronto house flippers. Sounds like easy tax revenue to me, or is this just another revenue neutral government initiative?

#126 A Reply to #4 traderJim on 04.22.17 at 7:05 am

“… President Trump graduated from Wharton, with a Bachelor of Science.”

Trump majored in economics.

So, Jimbo, if he learned anything at all from Wharton, why is he threatening to put tariffs on Canadian and Mexican imports? Does he (and do you) not understand that Americans will be paying higher prices for those imports (caused by the deadweight loss from the tariff)? Do you not understand that if he carries out his threats there would likely be a reduction of Canadian exports to the U.S. (caused by income and substitution effects on the American consumer)?

Do you not understand that his America First executive order will force the U.S. federal government to restrict supply from outside the U.S., leading to inefficient and ineffective product and factor markets, higher prices and wasted taxes? Do you not understand that excessive use of executive orders is not a healthy exercise of democracy?

Just in case you can’t follow any of my arguments so far, let me put it in simpler terms that even you can understand with the following true story, as reported by Andy Borowitz of the New Yorker.

Speaking to a television interviewer in London, [Stephen] Hawking called Trump “a demagogue who seems to appeal to the lowest common denominator,” a statement that many Trump supporters believed was intentionally designed to confuse them….

Later in the day, Hawking attempted to clarify his remark … telling a reporter, “Trump bad man. Real bad man.”

http://www.newyorker.com/humor/borowitz-report/stephen-hawking-angers-trump-supporters-with-baffling-array-of-long-words

#127 Retired Buddah on 04.22.17 at 7:11 am

#11 Gasbag Boomer

“Deal with it Wild Bill, I’m sure you will be hurting as many Boomers pack it in from high paying jobs to near zero taxation!”
——————————————————————–

Uhhhhhh…don’t worry……these thieves and charlatans will figure out a way to steal whatever money and income that we’re going to be living on. We’re all they have left. The useless generation of millennials, hipsters and moisters behind us don’t earn squat.

#128 The Mao on 04.22.17 at 7:27 am

Su casa est mi casa. Welcome to Ontario!

#129 westcn on 04.22.17 at 7:35 am

I spent time in Gautama city. I stayed in an inn, it was a palace and cheap. Mind you going at night a police escort was recommended but even they would disappear when the sun went down. During the day the people were friendly in Costa Rica and Gautama. I liked Antigua and bought jade there. I learned a lot from the locals – those without Spaniard ancestry are short. I felt like a giant when I went to their open air markets. A lot of Canadians go to Antigua to learn Spanish. I had to laugh when a Canadian gal found out the children were calling her Ronald MacDonald because of the orange flip flops she wore. She dumped them.

There is an active volcano near Antigua. I even threw a golf ball into the lava flow for a friend. Be careful of what you wish. Antigua has been wiped out by earthquakes and eruptions. The ruined churches are a testimony. Some have been converted to restaurants – beautiful. It is amazing what people can create.

The Mayan have a rich history. I went to Tikal (a Mayan ruin) several times. The power of religion stands out. I met a woman whose American father was killed by the government in charge at the time. A civil war was going on – many people died fighting on both sides. The gal was rounded up with the others by the rebels and taken to Tikal. The place has great acoustics and the fearless leader wanted to give a speech. She did not know if she was going to be shot because of her ancestry. She looked to escape but the rebels had troops flanking them. She was fun. I enjoyed her company. She said that a scene for Star Wars was shot there and a nearby casino was blow up by the rebels.

The speech began and then a bus shows. A German woman pops out and proceeds to take pictures. She even told a soldier to put away his big gun before she was hauled away.

I did some diving while in Latin America. It rained hard on me during my last visit but that was okay because it was like walking in a warm shower. I could not see much since it was so gray. The guide made up by taking us to remote islands. I got introduced to sea crocks – I spent my time on land. The people who lived there before dying would make round stones as money. These were huge and weighed bigly. Try and carry them around as pocket change.

The other that amazed me was sea crabs. Small little bastards but they sure can move a long ways inland and they bite. We came across a sea turtle on the boat ride back to the resort. The poor guy had a hell of a time getting below the surface.

#130 FLHTK on 04.22.17 at 8:01 am

Wow. I can’t believe where this country is headed. Taxes Taxes Taxes, feels like communism with nothing left over. Mr. Government I need a new pair of glasses.
I feel like moving to the caymans, tax free, and setting up a tikki bar with $2.50 beers on the beach.
I’m going for a motorcycle ride!

#131 Faye Whitcomb on 04.22.17 at 8:06 am

This is all fine and dandy, the talk of Moreau and Trudeau. But what is really important is the Conservative leadership race and its new leader because they will hold Our Gov’t to account on these issues and help forge the path forward for Canada. I’m a political moderate and I hope to see things go that way!

#132 The Mao on 04.22.17 at 8:16 am

There will be talk in Ontario, like we’ve heard in BC, that that sales and listings have vanished before the blatant government intervention in the markets. Nonsense. Sales dropped weeks before because it became known there will be intervention.

And it’s not this tax or that tax.. just the concept. Who wants to invest good money in a market controlled by the government? Sure, after a short staring contest, in a year or so, it will seem like everything is back to ‘normal’, albeit at lower level of activity – like we see in BC.

But normal it won’t be – a market where only those in dire need buy and you don’t have investors who look ahead create supply before it’s even needed (even low levels as we have seen is better than nothing). When housing starts drop to half, you’ll know we will be facing even more serious problems down the road that leftist governments can never solve. Look at Sweden’s 15 year waiting lists. Coming to Ontario… unless people decide to go wait somewhere else.

#133 Bitcoin is a sad joke on 04.22.17 at 8:16 am

#93, #106

Please stop fantasizing about the benefits of Bitcoin and (public) blockchains. Why on earth would you put your faith in a bunch of speculative unidentified “miners” who, by colluding to form a majority, can at any time not only validate fraudulent and bogus transactions, but who can even do this retroactively (only limited by a checkpoint that could be set from time to time that is up to a tiny group of unregulated parties)? Oh, wait, you have no clue about how Bitcoin and public blockchains really work, and you are really only interested in driving up the price of those Bitcoins that you, one of the great fools, bought in the expectation that more and more publicity should suffice to lure in greater fools. Has it occured to you that right now, as we speak, all it takes is for a handful of chinese kids, who together control more than 50% pf mining power, to get together to subvert the entire system; and that all they do is hold out hoping for Bitcoin to reach stratospheric prices? The moment these kids decide to cash in, Bitcoin collapses; and public blockchains will too, since they rely on Bitcoin.

#134 realstuff on 04.22.17 at 8:31 am

“Intellectuals” on this blog were begging for more tax and gov intervention.

Now they’ll get it. Lol

#135 maxx on 04.22.17 at 8:37 am

#104 Nonplused on 04.21.17 at 11:31 pm

“The new 2018 simplified Trudeau-Morneau tax form:

Box 101 Total Gross Income:

Send it in.”

:-) Very good!

#136 AB Boxster on 04.22.17 at 8:38 am


Is it just me, or does it feel like we’re going bigly in the wrong direction?

————————————————–

Every time a Liberal or NDP government is elected in Canada, ”everything goes bigly” in the wrong direction.

#137 The Mao on 04.22.17 at 8:40 am

#121 Stock Picker It’s just 1 more year in power for them in Ontario and 2 in Ottawa, then things will change. In the grand scheme of things, even 100 billion wasted can be made back fairly quickly if we limit the damage to one term. Canada’s GDP is 2 trillion.

#138 3s on 04.22.17 at 8:45 am

Record Everything = hyperinflation…..by stealth of course in not including key expenses such as real estate, energy, tax etc in the calculations. It is the only way to shrink the size of the aftermath of the GFC into oblivion.

#139 traderJim on 04.22.17 at 8:52 am

#8 Flop

“Clinton wasn’t smart enough to offer to pay for the dry cleaning…”

As we all know, high IQ doesn’t necessarily mean someone is smart.

#140 X on 04.22.17 at 9:02 am

The irony being that gov’t workers are overpaid compared to private sector employees….but yet…lets make sure no one else gets a financial leg up…..

#141 M on 04.22.17 at 9:21 am

Welcome to communism in a generation :)
..no no.. don’t be upset… these are the boomer’s children we’re watching growing :)
..those kids’ never been explained the “blessings” of socialism
https://www.youtube.com/watch?v=GBbwsjKSGr4

…growing kids in blended families, lack of toil and nice words.
Ergo…boomers will pay dearly in the old age.

..alone, poor and forgotten.

…almost divine justice

#142 traderJim on 04.22.17 at 9:23 am

#102 SI2k

Unless you are typing from your super-yacht in Monaco’s harbour, your claims that you or any other blog dog sitting in their rented east york bungalow are somehow smarter or better than the guy who became president of the most powerful nation on earth are beyond laughable.

Oh I know I know, all your problems are due to not being born rich and not having daddy give you everything.

The world’s unfair, it’s all luck, blah blah blah.

Pathetic. Have you tired that whine in a face to face conversation with anyone? Did that person have an incredibly pained look on their face, like they wanted to cut their wrists just to escape from you?

Yes, we all know you are so much better than one of the most successful people on earth. As Garth might say, ‘so why don’t you become the President?’ hehehe

#143 conan on 04.22.17 at 9:24 am

The wrong direction was voting in the Harper Government in the first place. Yes, they saved money, but not by doing anything intelligent.

Seems to me, that every file they touched ,has turned into a flaming turd stuffed inside a paper bag.

It’s like hiring a new building manager and they save money by not doing any building maintenance. That manager has saved you F all. Instead, they have cost you money,and time.

#144 Herb on 04.22.17 at 9:25 am

#134 realstuff,

get real! There are lots of would-be capitalists, some idealistic libertarians, a few idealistic socialists, and one Smoking Man on this blog, but no “intellectuals”.

#145 crowdedelevatorfartz on 04.22.17 at 9:34 am

@#86 m212
“Was Anne the sister of Ayn(Rand)?
********************************************

No. The syster. Get with the gendernonspecific times.

#146 crowdedelevatorfartz on 04.22.17 at 9:39 am

@#88 Oh come the f on now

Ok. How about this advice.

Nothing in life is free.
Stop whining and change something.
Suck it up buttercup.
More cheese with that whine?
etc. etc. etc.

P.S. Love the name.
A bit more pizzazz than “Mr Deleted” aka “Govt scum must die”

#147 traderJim on 04.22.17 at 9:42 am

#126 Condescending guy

I have an MA in Economics and am a follower of the Austrian school, so I understand perfectly what barriers to trade mean.

However, unlike you, I also am not blinded by emotion and I don’t get all my info from witless talking heads on tv.

I actually watch what Trump DOES, not just what he says.

And what Trump does, which should be obvious to anyone with a functioning brain, is TALK a lot about things he MIGHT do, as a pure negotiating tactic.

And he also starts with an outrageous first position, which he has even explained is his method, and SOME people (not pointing any fingers) still don’t get it.

Now Trump is a pragmatist, which I think is a huge fault, but so are all other politicians, so I think Trump’s the best pragmatist.

I’m sure he will soon be said to be ‘backing down’ from his border taxes threats, although he might make some minor tweaks here and there.

He’ll also not be able to get the massive tax cuts he is negotiating for, but he’ll get some.

And some people (not pointing any fingers again) will see that as ‘flip flopping’ or whatever makes them feel good to believe, and some others (me, people who actually understand negotiations) will see that he’s just another politician, neither right wing nor left, who has to walk a tightrope to try and get things done.

The big difference between Trump and others is that he actually works hard, and his basic ideas are to make better deals for the USA, which only an idiot could oppose.

Since you have to be an idiot to oppose ‘better deals for America’. Some people distort the truth to see what they want so they can criticize Trump for something he doesn’t believe. Again, not pointing any fingers.

#148 crowdedelevatorfartz on 04.22.17 at 9:47 am

@#103 Eric
“Welcome to Cubanada!”
*******************************************
Any other socialist suggestions people?

Canazuela? Vanada? Millenialda? Taxada? Trudanada?
Or my South American socialism espanol favorite….. Nada?

#149 traderJim on 04.22.17 at 9:53 am

Free trade

It’s fascinating that the left are now ardent supporters of free trade, which they despised for decades, until President Trump came along.

Trump actually believes in the theory of free trade, as do I.

But what Trump realizes is that free trade does not exist. What we have are a series of trade deals that have almost nothing to do with ‘free trade’. You can’t even cross the border with a couple of bottles of JD, so claiming that we have free trade and that Trump is going to end that is ludicrous.

Trump’s position is that he will renegotiate existing trade deals to be more advantageous to the USA.

As Canadians we should be concerned, but American voters have to love that.

#150 crowdedelevatorfartz on 04.22.17 at 9:59 am

@#122 Jay
“We should be taxing as much as we need to pay every nickel we spend (and pay down some government debt).”
**********************************************

Well Gee whiz Jay.
Reading comprehension a little off on Friday afternoons?

” And pay DOWN some govt debt”

There in lies the problem.
The TRUDEAU govt is intentionally and MASSIVELY INCREASING govt debt or did you miss that part?
I dont like paying taxes but if they’re spent wisely I’ll grudgingly keep paying but when I see tax dollars urinated against the wall again and again and again while line ups at hospitals increase, roads get worse, aid money is shovelled at foreign countries by the billions and we recieve refugees in return…….
And all this is explained by a Prime Minister ( who looked great with his photo op wife on stage handing out one liners at the Juno awards by the way)
Because its 2017 and thats what “selfienation” wants from its “leaders”
Then yes.
I have a problem with ever rising taxes

#151 traderJim on 04.22.17 at 9:59 am

When your only argument is to belittle people by claiming they are racist and stupid, as the left seems to love to do, you have lost the argument.

Really glad they are not giving up on the tactic, as it will guarantee another term for Trump, if he decides to run again.

BTW, whatever happened to all the “Russia” hysteria? All a completely false narrative created to try and bring down a democratically elected President? Risking WWIII just because you can’t take losing?

That story is now going to gain traction, but not in the way the Democrats hoped. Reality always wins in the end, and that giant hoax will bite them in the ass for years to come.

#152 WUL on 04.22.17 at 10:03 am

I am home in Calgary for a few days with kin. Down from McMurray. The CREB numbers continue to look better. Is it only the spring market?

Ah Cowtown. Shall I compare thee to a summer’s day? Thou art more temperate and more lovely.

#153 crowdedelevatorfartz on 04.22.17 at 10:04 am

@#130 FLTHK
“I feel like moving to the caymans, tax free, and setting up a tikki bar with $2.50 beers on the beach”
*******************************************

Try $5.00 US for beers on the beach

#154 Joe Schmoe on 04.22.17 at 10:04 am

My wife and I were able to donate significantly less to charities this year due to higher taxes.

Do you think the governments are doing anything to support the truly needy?

Taxes shouldn’t be punishment. Yet this is how it’s being spun.

To all those spouting that the self employed “should pay their fair share”, clearly you can’t.

#155 fancy_pants on 04.22.17 at 10:06 am

‘Democratic’ socialism always fails in the end as it removes all motivation for hard work and effort.

A reminder. Overtaxing the rich: A cautionary tale.
http://www.theglobeandmail.com/globe-investor/personal-finance/taxes/how-splitting-the-dinner-bill-relates-to-tax-cuts/article24441644/

#156 Leo Trollstoy on 04.22.17 at 10:19 am

And to add fuel to the fire bond yields are trending lower and lower. This ain’t over people. Peek 400k on to of the average SFH price before the fat lady gets to drop the mic

Smokie is right on the money.

#157 NoName on 04.22.17 at 10:28 am

Interesting read about online pricing and shopping, when price change s depends on time of day, device you are using, and place of residence…

Funny thing few weeks ago guy at work an I did small almost “scientific” experiment, (as my 9.5 yrs of education allows me) we googled very specific frase regarding us politics, same computer, so same configuration, same serial numbers, just different logins and cookies per say, I logged my self in and took screngrab of results given to me and he did same, it took us hole 17s to realise that an about 30% of search results are same but few pages away. All other results will take us to place where different spin on a same frase was put on.me deplorable dude (but not hardcore), from hammer vs afluent and emancipated gentleman 15 yrs older than I, from okvile…
Not that I didn’t know this before but got me wondering do they search/price discriminate based on sex, and sexual orientiring. Who pays more for same product low income​ deplorable or highly educated metropolitansexual…

As some book reviled to me more educated people tend to over pay for goods and services regular ly, probably because more desposable income, buy neverles more is more.
I wish that I am enterpratur, i know exactly who my potential customer would be, but unfortunately for me I suck at beeing enterpratur. Anyways…

Back to pricing, being raped by online shopping, I’ve been looking for Seiko 5 for my wife, on Amazon model that she likes here 500- in us 150+-, only filter I do is Amazon prime only. 300% price difference…

http://bit.ly/2pP03kv

I am not big on conspiracy but every so often I click on this link to remind myself that is science and marketing that I should be afraid of, there is always some mad scientist out there…

http://webkay.robinlinus.com

And my take on taxes, gov should study what happened in Greece in last 20yrs and do absolutely everything in their power to avoid that, I my opinion we have 5-7yrs left, let’s keep in mind that I am not always right, but I am never wrong.

NoName
The Knows-it All

#HavingFrendsAtTrailerParkSavesMoney

#158 BG on 04.22.17 at 10:38 am

#133 Bitcoin is a sad joke

Bitcoin is not ALL blockchains.
And blockchain is a young technology, it will improve overtime and for sure be part of our daily lives eventually.
Also, the kind of miner collusion that you mention (with exaggeration) is particular to the “Proof Of Work” protocol, which is not the only protocol a blockchain can use. “Proof of Stake” is becoming popular, and Ethereum (second biggest blockchain after Bitcoin) will switch to it within 2 years.

And even on the topic of Bitcoin itself, you fail to understand that – just like gold – its value is mostly not intrinsic, but derived from the fact that people are willing to trade it.

#159 OffshoreObserver on 04.22.17 at 11:09 am

Dateline: 22 April 2017 – Panama City, Panama — Next week Ecuador.

Ayn Rand and the U.S. founders must be rolling over in their graves:

Where is “Small, effective” government; Laissez-faire?

Instead, especially in Canada, we are surrounded by government and political morons.

Since the end of World War II, they have bred a strain of citizenry who thinks they are entitled to million dollar homes, don’t have to save for retirement; don’t need to be enterprising and believe the “modern healthcare is efficient and free” bullshit.

How can any regime spark innovation and advancement with stealing more than half of those that are relatively better off than the remaining “plunderers?”

Well, I am “Shrugging” in South America:

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

Viva La anarcho-capitalists!

[Next comment from a beach town in Equador–no GST nor PST!]

#160 SWIB on 04.22.17 at 11:23 am

#4 TraderJim
When current POTUS got into Wharton it was normal for the wealthy to buy their kid’s entrance with donations so his attendance even graduation isn’t a gaurantee of his IQ. Apparently the bigger schools have (at least publicly) clamped down on this, I’ll say it’s a fair bet it still happens. Wonder if his family money helped his draft avoidance?

#161 LaLa on 04.22.17 at 11:31 am

This may jog some peoples memories:

http://www.theglobeandmail.com/opinion/ethics-paul-martin-and-the-circle-of-csl/article1332107/

“A third controversy arose during a televised encounter last Wednesday. Mr. Martin was asked how CSL could justify paying ridiculously low taxes when small business owners pay tax rates of 40 per cent. Although CSL faces the same rates as other Canadians on taxes it pays in this country, its international affiliates, registered in the tax haven of Barbados, pay almost no tax on their profits. They can then send the money to Canada as tax-free dividends, thanks to tax arrangements confirmed while Mr. Martin was finance minister. (Mr. Martin has argued that at least he shut down Liberia as a tax haven, in 1995. That’s when CSL reflagged seven ships from Liberia to Barbados.)”.

I like the part were he confirmed new tax arrangements that were favourable to onshoring his offshored profits, tax free.

Thats our former Prime Minister and Finance Minister for you youngsters out there. No wonder these types of things have yet to be meaningfully addressed. As usual, the low hanging fruit, in this case the proleteriat SB owners are targeted when more revenue is needed.

#162 akashic records on 04.22.17 at 11:34 am

#133 Bitcoin is a sad joke on 04.22.17 at 8:16 am
#93

Where did you find in the post the word Bitcoin, that triggers you so hard?

#163 YVR update on 04.22.17 at 11:35 am

Trudeau is a one term boy wonder. He’s lied too much to be elected again. Maybe change of leadership?

If he hikes capital gains next year then less than 2 years later they will be brought down by a new government. Retroactively.

Trudeau has got to be the lowest IQ PM ever. It’s so obvious (not capable of hiding it) that he takes his marching orders from various special interest groups.

#164 YVR Update on 04.22.17 at 11:57 am

A Dollar is a dollar is a dollar means we need to move to a system where all money earned by A PERSON is taxed at the same rate.

Does not matter of corporations already taxed. They are not a person. Just a made up ‘thing’.

Simplify the tax code. Tax all dollars the same.

Otherwise, the rich will be eaten for breakfast in the future.

Look at whats happening in France on Sunday. Upheaval.

#165 SWIB on 04.22.17 at 12:07 pm

As business owners this post has us looking at our future. For all the reasons Garth wrote and these:

Self employed/ sml biz owners DONT qualify for EI. So many people don’t get this. It’s the first thing I point out when I’m asked about owning you’re own company or being you’re own boss (sounds good that way doesn’t it?). Many don’t make a profit for the first few yrs and find out the hard way how it feels to have the buck end with you (24/7/360). Paid vacation leave? LOL Even if you pay yourself by salary it’s still your coffers.
My dad was self employed for over 40 yrs and yes he worked (too) hard to provide a decent life and left my mom with some security with the help of modest investments and a good acccountant. My partner and I have built our company over two decades and while it can have great rewards (with usually long hrs) it comes with compromise. So even though we accepted the pros and cons and gave up the EI / WSIB/ Pension/ Health Benefits parachute(s), and grew to employee over 15 FT really great people some of whom just celebrated their ten yrs with us, the Feds want to take some of our tax advantages because they’re UNFAIR. How ironic. Just James the lawyer we make a decent living but not wealthy. In part due to medical issues that have cost us out of pocket upwards of $200K. It’s getting better but it’s an ongoing cost. What about private health insurance some argue? It’s usually cost prohibitive for self employed/ sml biz owners. We got life ins early.

Thanks Garth and James for the heads up. We’re now pushing up the timeline to sell. Hopefully the new owners will retain most our staff but if these new rules go in? We have friends who are docs, lawyers, contractors etc who will all be effected. T2 needs to rethink this. Seriously or they will lose votes. Even friends who aren’t self employed get this.

Pissed in P’bo

#166 Ronaldo on 04.22.17 at 12:08 pm

”– Farm Pensions are fulfilled by selling quotas for
millions or sell their farms at over $25,000 per acre in
S.W. Ontario. Standard 100 acre farm sells for $2.5
million +.”
—————————————————————
Yes, but how many years generations did it take and how much money and energy went into this to create that value. A house in Toronto for $1.6 million that was bought for half that a short time ago is a much better investment and tax free and you just had to live in it for that time. Not a huge sum of money. School teachers pensions have more value in order to create the income they receive.

#167 crowdedelevatorfartz on 04.22.17 at 12:22 pm

@#151 trader jim
“BTW, whatever happened to all the “Russia” hysteria?”
********************************************

Well, if you support Putin’s “relected” govt and can justify his multi billion dollar personal value ( on his state salary no less).
It was no secret that Putin loathed the possibility of a Clinton Presidency. The FBI had been investigating a Russian hack of the Democrats computor system for months before election day. The leaking of Clinton campaign emails causing embarrassment and resignations leading up to election day would benefit who? The Reuplicans and Putin?
And to think that possibly, just possibly an oligarch like Putin who has successfully bullied, bribed and possibly murdered his way to the top and could care less about nudging a foreign country’s election towards a candidate he might be able to “work” with isnt so far fetched….. Putin just might want a President that he can blackmail with dirt…….. anything is possible.

https://www.google.ca/url?url=https://www.theguardian.com/commentisfree/2017/jan/12/donald-trump-russia-dossier-frighteningly-true&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjpm8ekurjTAhVH02MKHaTjB84QFgguMAU&usg=AFQjCNETgRTX293q4dGDKMbTxq76lfY2pQ

I agree with you about Trump’s “negotiating” tactics regarding “Free Trade” and NAFTA.

But we’re barely into Trumps first 100 days…..lets see what dirt is unveiled as he is forced, by either Congress OR public opinion, to put the screws on Putin……..

Wag that dog…..

#168 Braj on 04.22.17 at 12:42 pm

#74 Ace Goodheart on 04.21.17 at 9:39 pm
RE: #63 GB on 04.21.17 at 9:21 pm:

“For goodness sakes. It is just the healthy ebbs and flow of economic balance. Over the past two decades the wealthy have enjoyed tremendous breaks and incentives resulting in a very unhealthy wealth gap.”

One last comment before I go downstairs and spend the rest of the evening drinking craft beer and watching old shameless episodes…

People who run CCPCs are not “the wealthy”. Doctors and lawyers are people who were for the most part born poor, actually bought into the whole “get an education” garbage that they feed to the kids to keep the teachers and the profs employed, and somehow got out of the whole dung pile with marketable skills (as opposed to degrees that will get you nothing more than a day shift position at “Unicorn Frappe” S…b..cks).

Dude, there is no such force in the universe as “the healthy ebbs and flow of economic balance” You live at the base of a turbulent and unforgiving brutal economic ocean, supported on your side by armed forces and weaponization that you cannot even imagine. You get your safety net out of crumbs thrown to the birds to keep them from rioting in hunger. You have no idea.

Every so often the powers that be make a mistake. They are making a huge one right now. That gives the rest of us an opportunity to increase our fortunes, if we can only see the stupid thing that has happened.

The parrots are singing a tune that is not being spoken by their masters, completely by accident, listening to echos. The next six months will be among the best buying opportunities in the last 20 years. They have really messed up this time. They know what they have done, and they are scrambling. There is this little window of opportunity before things close up again.

My advice is to take it.

What is it that you see on the horizon here? Is this related to this housing decisions made recently?

#169 Paul on 04.22.17 at 12:49 pm

Question.

Can rrsp’s be transferred to your spouse/common law partner

#170 For those about to flop... on 04.22.17 at 12:52 pm

traderJim on 04.22.17 at 8:52 am
#8 Flop

“Clinton wasn’t smart enough to offer to pay for the dry cleaning…”

As we all know, high IQ doesn’t necessarily mean someone is smart.

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

Yeah ,I made a mistake.

While you were busy arguing with everyone else I thought I would try to make you laugh to lighten the mood.

I used to do the same with Mark,who you seemed to have replaced on this blog.

Anyway Metaxa,if you are lurking, come back on the blog…

M42BC

#171 A Reply to #147 traderJim on 04.22.17 at 1:05 pm

#41 wallflower on 04.21.17 at 8:13 pm

#73 NEVER GIVE UP on 04.21.17 at 9:39 pm

#160 SWIB on 04.22.17 at 11:23 am

Hey, Jimbo! How come you didn’t beat up on the above folks? What gives? Feeling outnumbered?

#172 Spectacle on 04.22.17 at 1:07 pm

Regarding ::
#151 traderJim on 04.22.17 at 9:59 am

….”BTW, whatever happened to all the “Russia” hysteria? All a completely false narrative created to try and bring down a democratically elected President?

…That story is now going to gain traction, but not in the way the Democrats hoped. Reality always wins in the end, and that giant hoax will bite them in the ass for years to come.”
*****************
Good analysis Trader Jim. It’s a little like the Environmental Lies/fraud being dumped upon the already overwhelmed citizens. People will fall victim to contrived fears, if they already hold such mindsets. A little like the Terror such pirates use daily to control the average Joe/Janes of this world.

Trump is a master technician….and he is achieving his American Prosperity goals. I hope it floats Canada’s ships at the same time, as a side effect.

The world is a big beautiful place

#173 I HATE CONservatives on 04.22.17 at 2:05 pm

You cry baby CONs make me sick. The Liberals are acting like Conservative lite. The corporate CONservatives are the biggest sellouts to greedy corporate interests. CONservatives HATE the free and open markets more then any party. CONservatives are socialists for the rich.

#174 Herb on 04.22.17 at 2:07 pm

#141 M,

hit the stop button after 7:31 of the link. It wasn’t all the cliches I had heard before, but when the Professor lamented the turn to socialism from the former good entrepreneurial times in India and Africa, I had to quit.

Obviously he had not encountered colonialism in his economic studies. On the other hand, I might be wrong, and he could have been serious in considering the operation of the white man’s burden as great economic times. Maybe that’s why some of the colonies tried socialism, at least those that did not descend into government by greedy despots.

#175 Ontario Doc on 04.22.17 at 2:12 pm

#21 Shameful and #82 Never Give Up

I am not a resident and I am not lying. The reason why I log those hours is not because I am greedy and it is not because there is no one willing to do my specialty. It is because there are very few people willing to pick up the night shifts. So, I work in the day like everyone else and I pick up the less desirable nights when they are unfilled. When the admissions board were looking for people, they look for people willing to work extra to fill in the needs that exist. I guess you could look at it that those who do that are simply doing it for the money, but that is a bit jaded. If I was about the money, there are lots of specialties that pay more, have less stress, and are during regular hours – I would have chosen one of those. I can do this now because I am young and I know that when I am older that there will be new young people to pick up the nights so that I can still contribute by doing mostly days when I am older. Yes with my hours, I do have a stay at home spouse. They have sacrificed their career for mine. This was our choice and a difficult one. I am also not sure why it is “more fair” for two parents working to be taxed less than those who choose to have one parent work more enabled by the other parent working maintaining a stable household.

You are right, I can leave. Most established physicians won’t – we have built our careers here. Those starting out with less ties will simply start somewhere else. We saw that in the 90s and there was a legtimate physician shortage in Canada then that took us 15 years to correct. Too bad we as a country never learn beyond a few year election cycle. I guess that is all part of the ebb and flow Garth is talking about. You seem to know alot about other people’s circumstances, motivations, and what is right. If only I could be so wise as you. With your super skills, you’d make a great doctor. Go for it if you have the IQ, EQ, and work ethic – there will lots of nights available for you to work in 15years when you are ready to be greedy like me.

#176 TurnerNation on 04.22.17 at 2:12 pm

In a UN world of “densifcation” and “urbanization” and “sustainability” + Agenda 21 this is luxury defined:

(Sustainability means this: our taxes will sustain the elites’ lifestyles and war-making. Again, take anything said by our elites and turn it backwards. Then it makes sense completely. I cannot stress that enough.)

Teeny bachelor unit, the Expressway is 50 feet from your balcony (must see photos to believe it).

Cost $300,000

https://www.realtor.ca/Residential/Single-Family/18043632/512—169-FORT-YORK-Boulevard-Toronto-Ontario-M5V0L8-Waterfront-Communities-C1

#177 I HATE CONservatives on 04.22.17 at 2:13 pm

Leo Trollstoy on 04.22.17 at 10:19 am
And to add fuel to the fire bond yields are trending lower and lower. This ain’t over people. Peek 400k on to of the average SFH price before the fat lady gets to drop the mic

Smokie is right on the money.

You dirty evil shyters will say anything to keep this ponzi from crashing. Fact is sales are falling through as buyers are walking away and realtors who are looking to cash out of the ponzi scheme are getting worried. Why do you think smokingman is cashing out? He is an admitted liar and knows the ponzi scheme is about to crash. He also knows the masses are stupid and will repeat lies. Smokingman cashing out = housing crash is coming

#178 crowdedelevatorfartz on 04.22.17 at 2:28 pm

@#174 I hate conservatives

“CONservatives HATE the free and open markets more then any party…..”
*******************************************

My goodness the millenials are angry tonight!
Put down that flag you’re waving.
Apparently you’ve never heard of Venezuela?
Go for a visit to that socialist “paradise”……
One word of advice….bring your own food or high voltage boots and gloves…….

http://www.google.ca/url?url=http://www.abc.net.au/news/2017-04-22/eight-looters-electrocuted-in-venezuela-as-unrest-continues/8463828&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjph_Wl2LjTAhVB4GMKHa78BlkQqQIIGzAC&usg=AFQjCNEVaFJczeveex8av3mTIVDWF5iuTQ

#179 Stan Broock on 04.22.17 at 2:37 pm

Fair share of taxes?

Said who, a government bureaucrat who never worked real work in his life and has a gold plated pension?

How about taxing capital gains on houses, should not the home owners be paying their fair share of taxes as well?

‘private corporations that inappropriately reduce personal taxes of high-income earners’

inappropriate to whom?
It is either legal or not. Laws should not be a subject to interpretation by incompetent bureaucrat.

Look at big corporations they are taxed on net income. 15 % tax.

Now why citizens and small private corporations are taxed on income before expenses?

If you are making 120 k annualy government takes away 45-50 k in taxes. On 10 k per month that is 4.5 k in taxes leaving to you 5.5 k to live on.

How it should be: People/families should be taxed on net income – income after deducting living expenses, so if you make 10 k per month in Toronto and need 4.5 k to sustain life and basic necessities for your family, you should be taxed on the difference between 10 and 4.5 k – on the 5.5 k. at corporate rate of 15 % that makes 800 $ per month in taxes, not 4.5 k.

So in essence people are paying 80 % of income taxes on net income – this is what 4.5 k in taxes related to 5.5 k of net income is.

Parasites.

#180 A Dollar is a Dollar is a Dollar on 04.22.17 at 2:43 pm

Tax all dollars equally.

However the money is acquired, same tax rate.

Simple.

Fair.

***And you could cut government bureaucracy easily in half without all the ‘programs’ needed to put bandaids on the fact that our current system rewards only the rich.

Lower tax rates for everyone.

What’s not to love about that?

A Dollar is a Dollar is a Dollar.

#181 Raj on 04.22.17 at 2:43 pm

According to Globe and Mail, things have changed a lot in last 2 weeks in GTA. No more bidding wars for every property.Some properties are not getting any bid at all !!
Wow !!

#182 Stan Broock on 04.22.17 at 2:49 pm

So the government is uniformly aligning small professional corporations with salaries individuals.

They are very different animals, small corporation owner has a business risk that salaried employee does not have, higher uncertainty, no pension, no benefits, lives in highly competitive environment and has much higher expenses just to sustain business- office expenses, accountant, etc and in many cases these are family Businesses.

Doctors, lawyers have receptionists. Who in their right might would say a professional corporation owner is equivalent to a salaried employee?

Idiots.

Government of Canada should introduce family taxation. Enough of these retarded backward treatment of ‘high income’ individuals, In GTA (a family of 4) you can not live with 150 k single income before taxes. And they treat that as high income? Just look at normal rich country taxation, e.g Germany.

Morons.

#183 I like cookies on 04.22.17 at 3:25 pm

Congratulations, Garth, people on reddit think you’re bourgeois scum! https://reddit.com/r/CanadaPolitics/comments/66v4t6/the_war_on_wealthy/

#184 Silver on 04.22.17 at 6:39 pm

just more tax’s for government protected business’s and employee’s to line their gold plated retirement plans and paychecks with. course they get a free ride. no special tax’s here….
public employees get their paychecks from people who pay real “beneficial” tax’s.
A concept beyond T2 and his ilk having never had real creative jobs.
they don’t pay beneficial tax’s
their tax contributions are paid from my original tax’s minus their pig like extorted benefits and pay packs.

canadah is toast.
investment is done.
the Snowflakes win.
socialist starting to go full retard…

welcome to the wrong side of history

Silver

#185 Silver on 04.22.17 at 7:29 pm

lots of screeming of small business expenses with wife. about income splitting…
actual question should be why should all wives not qualify for an income split with their husbands income?
are they not working… as well…
why are wives in general not able to income split.

just wondering why the lefties don’t get that basic part…

Silver

#186 Jay on 04.22.17 at 7:30 pm

@ #150

Way to show me how childish you aren’t by complaining that you have to pay taxes for stuff you don’t like, and taxes aren’t spent on what you do like.

#187 Yanniel on 04.22.17 at 7:30 pm

Re: Shameful.

Garth works long enougth, even for free. How many post has he written in the last 6 years for free? What does any plumber have ever done for you? Other than charging for his service.

Garth has helped me for free to be financially successful and I am not a 1% ter, not even close. And I am not his client.

Respect, Shameful, please.

#188 45north on 04.22.17 at 8:11 pm

Bitcoin: think instead distributed ledger:

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

when you buy a house there are a lot of transactions, you sincerely hope your lawyer keeps track. The way I understand distributed ledger is that the transactions are recorded in identical format in multiple places: take the payment of the buyer to the seller: the transaction is recorded by the lawyer, the buyer’s bank and the seller’s bank. The transaction really did take place and can only be changed afterwards with the agreement of three parties. The recording of transactions is not really so different than what is taking place right now with credit and debit cards.

transactions are becoming universally recorded, the records are locked down and so become money. Unalterable and outside the jurisdiction of government. Which I guess is something government would worry about.

#189 Andrew Woburn on 04.22.17 at 10:59 pm

Ontario’s Fair Housing Plan, Joshua Varghese, a professional real estate investor gives his views | Financial Post

http://business.financialpost.com/news/fp-street/ontarios-fair-housing-plan-joshua-varghese-a-professional-real-estate-investor-gives-his-views

#190 ted lepton on 04.23.17 at 8:33 am

Self employment, entrepreneurship is fundamental to capitalism. That communist writing answer is against that because is taking all kind of benefits, pensions, perks such government is providing to own apparatchiks only. He is coming with big word: by law. What is the law? The one driven by 10 Commandments, the one some Kings is saying, or Al Capone’s street law? Where Canadian communistic government is placing own law among? Hey apparatchik – how you will survive one day on the street without your government mafia protection?

#191 Financial Samurai on 04.23.17 at 8:56 am

Yikes, so they’re coming for you guys too! And here I thought as an American big government had already came and conquered.

It’s not worth killing yourselves for bigger bucks folks. We Americans look to the Canadians and Europeans as a path to a better life. But now I’m concerned for y’all!

Best,

Sam

#192 traderJim on 04.23.17 at 12:06 pm

#172 Outnumbered

Uh actually I was out clearing some trees for my cottage building that starts as soon as things dry out a bit.

#193 Spectacle on 04.23.17 at 5:26 pm

BIG thank You for posting this Turner Nation. Agenda-21 and Agenda-30 are the most destructive and ruinous manipulations of humanity. And nobody really knows about it.

Thank You TurnerNation.
Regards
—————
#177 TurnerNation on 04.22.17 at 2:12 pm
In a UN world of “densifcation” and “urbanization” and “sustainability” + Agenda 21 this is luxury defined:

(Sustainability means this: our taxes will sustain the elites’ lifestyles and war-making. Again, take anything said by our elites and turn it backwards. Then it makes sense completely. I cannot stress that enough.)

Teeny bachelor unit, the Expressway is 50 feet from your balcony (must see photos to believe it).

Cost $300,000
https://www.realtor.ca/Residential/Single-Family/18043632/512—169-FORT-YORK-Boulevard-Toronto-Ontario-M5V0L8-Waterfront-Communities-C1