What to do?

It took three months, but Gary finally got a letter from the federal minister of finance.

“It is a two page speech about all the Liberal policies addressed at making Taxes Fair for the middle class,” says the Kelowna self-employed blog dog.  “At no point does it address any of my concerns. So much for the govt listening to the people. Kind of disheartening. What to do?”

Gary wrote about some issues raised on this badass blog before the last budget – namely what the T2 gang intend to do about all the people who are now creating their own jobs through self-employment. After all, full-time, salaried employment with benefits and pensions is becoming a thing of the past. The typical Millennial’s grand-dad had one job for life and retired with a monthly allowance. The poor kid will probably have eight gigs and never have a safety net.

Anyway, Gary decided to speak out. He wrote this in his first-ever letter to a politician:

My wife and I have owned and operated two businesses in our working lives.  We personally did without things, saved and invested so that we could look after ourselves later in our lives.   We were reasonably successful in that we are now financially independent and can live off of our investments.

We collect dividends, capital gains, interest etc on our investments.  I have never collected a dime of EI benefits.   We have RRSPs and TFSAs.  However we also have non registered investments.   We will pay Capital Gains tax on whatever we cash out at a 50% rate.  This is on top of the income tax we paid on the original income that we saved and invested. How many times and how much tax are we supposed to pay tax on this money?

Now your government wants to raise this tax rate to penalize “the rich” as Mr. Trudeau refers to us.   We are by no means rich.  We have achieved where we are by our own hard work and diligence.

His concerns? That taxes will be increased on capital gains, or people like him who operate through an incorporation because the government thinks entrepreneurs should be treated the same way as politicians – paid by salary. But without the tax-free expense allowance, housing allowance, travel vouchers, free electronics, office staff and budget plus indexed pension, of course. I mean, fair is fair, right? Why should a guy who puts up eavestroughs all day be treated like some kind of tax-advantaged god? Who the hell do these corporate titans think they are?

The response was a two-page excerpt from the last budget with Bill Morneau’s signature at the bottom. And, as you know, the issue faded a little after the T2 gang retreated from their higher-tax agenda in the March budget.

But, sadly, it’s back. So prepare.

This week Bill donned his pointy Robin Hood hat and trusty codpiece and gave a speech in Toronto suggesting the next budget will be way less kind than this year’s. It was the boldest hint yet that the federal government is, in fact, gunning for the self-employed

“We have identified three areas of concern,” he said. And, yes, they are exactly those which this blog whined, moaned and gnashed over some months ago. It’s only a matter of time now before incorporated people will no longer be able to split income with others, keep retained earnings invested within the company at a reasonable rate, or enjoy the existing capital gains tax rate.

Here are his exact words:

“Take this example: if you are an employee living in Ontario and you make $220,000 a year, you would pay roughly $80,000 in income tax. Now, your neighbour owns a private corporation and sprinkles that same amount between themselves, their spouse and their adult child. In many cases, the family is involved in the business and it’s completely legitimate. But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.

“The second example is passive investment income. That’s when people hold money inside a corporation, not to grow the business by investing in it, but simply to shield it from the higher personal rate.Again, this sort of arrangement is not available to someone who collects a paycheque every two weeks.

“The third and last example relates to capital gains. Converting a private corporation’s regular income into capital gains can reduce income taxes—again, by taking advantage of the lower tax rates. This is about making sure that the rules – as they were intended – are being followed and that people are paying their fair share.”

Morneau cloaks everything in the syrupy mantra of ‘middle class fairness’ but these are desperate actions from a government mired in deficits and over-spending. In just 48 months of governing, the feds will spend about $130 billion more than they collect – so taxes are going up. And not just for the wealthy, who already hand over 50% of their income when they hit $220,000.

Many doctors and medical professionals, for example, earn money through corporations which means they have no pensions, no benefits and start their careers at a later age, with huge student loans. Income-splitting with a spouse allows for some relief, and also means docs cost the system $250,000 a year instead of $500,000. (They can always go south…)

Anyway, what this blog vexed about last winter is about to become reality. Ottawa will first release a discussion paper outlining its reasons for attacking incorporations, and then will move to do so. There will be no compensation allowed for non-employees; retained earnings will be taxed at the beneficial owner’s personal tax (or perhaps the top marginal rate) and you can kiss the 50% capital gains inclusion rate adios.

How do you like fairness so far?

215 comments ↓

#1 NoName on 05.26.17 at 6:27 pm

it was long time since i was first.
Pres play
https://www.youtube.com/watch?v=QtTR-_Klcq8

#2 None on 05.26.17 at 6:28 pm

I think it sounds fair. I have a ton of tax protection via RRSP & TFSA and I don’t have an issue raising the tax on non-registered investments. I only get taxed if I get a gain (and can bank my losses). That’s pretty sweet by itself. Raise it from 50 to 75%. I don’t have an issue with that.

#3 pathcontrolmonk on 05.26.17 at 6:30 pm

Eat the rich

#4 Love this Blog on 05.26.17 at 6:31 pm

I will tell you when I see it …..

#5 BeyondHope on 05.26.17 at 6:34 pm

What to do?

2 boomers, 60ish, no debts, less than 30% of assets in SFH, her with trophy PS pension.

What to do?

Quit work and fly under the radar. Unlike Smoky, I know that Antigua is English speaking.

#6 Mike on 05.26.17 at 6:35 pm

Honestly, Bill/Liberals is correct.

Why myself making $150k a year as employee pay more taxes than a self employed person making $150k a year. That doctor/lawyer can “hire” their spouse/kids to cut their (fake) corporation’s taxes. Can deduct expenses for buying car, gas, parking for his car because it is ‘work related’ while I cannot. Isnt all that work related for employees.

I have no issue with so many exemptions going to doctors/lawyers/self-employed, but then allow me/employees to “hire” my spouse to ‘manage my home business’ & deduct his salary from my income and deduct “all kind of expenses” from my income – buying car, gas, parking”…….

Either let employees do what self employed can do, or have self employed come to same level as employees.

Oh, the rational of why dont I become self-employed doesnt stand because if self employed think they are unfairly treated with Liberals changing policy, why dont self employed become employed, always an option.

Threat of moving South – please do….you would be welcome there.

#7 I'm Not Poloz on 05.26.17 at 6:38 pm

$80,000 tax on $220,000 income? Poloz wants to devalue the rest of your disposable income by lowering the Loonie to 40c.

#8 dr. talc on 05.26.17 at 6:38 pm

#125 Renter’s Revenge! on 05.26.17 at 10:41 am
#65 me again on 05.25.17 at 9:47 pm
mva, think about it: mva is actually a tax on your debt

how cool is that?

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

WTH is MVA?

market value assessment
in Ontario the municipalities use MPAC to tell them the value of what it is they want to tax

it’s worse, because not only is it a tax on debt (if you have a mortgage), it’s also a tax on inflation. but no one in Canada objected ,
Canadians are incapable of critical thinking

#9 Sam the Sham on 05.26.17 at 6:41 pm

Well it looks like it’s official, the Toronto real estate bubble has finally been popped! It has been proclaimed on Zero Hedge. Time for all the blog dogs to pop the Champagne and celebrate. It’s been a long wait for many!!

http://www.zerohedge.com/news/2017-05-26/all-hell-breaks-loose-torontos-house-price-bubble

#10 These People on 05.26.17 at 6:42 pm

Like doctors, these people earn far too much @ https://goo.gl/IARVJ2 . Let’s crowdfund a bus and send the lot South. The doctors can do the roof and chicken thing.

#11 M on 05.26.17 at 6:43 pm

Long Live Socialism !
..for it creates misery and end up bankrupt.
Print Money for the People !!

More taxes is actually an excellent idea, it will bring the general collapse sooner , deeper, longer.

If 70% of Canadian economy is resources and banks and the RE represents 50% of the same economy when including the banks (yes, banks must be included in RE since more than 2/3 of their exposure is RE ), a TAX INCREASE will be a dream came true in the form of a nightmare.

Good job T2.

..oh yeah… and the southern Gringos are gunning down for less taxes, less regulations. Loonie down to 50cents anyone ?

#12 Paul on 05.26.17 at 6:47 pm

What are you prepared to do.

https://www.youtube.com/watch?v=9ALcqt6GMhM

#13 Howard on 05.26.17 at 6:48 pm

As I stated in other threads. The government will find some way to force responsible savers and high achievers to bail out the over-leveraged parasites. Axing the higher TFSA contribution limit was just the start. Prepare for more of this as the Turdo government has taken on the persona of 28-year-old customer service reps earning $35,000/year taking on $1 million mortgages.

#14 JSS on 05.26.17 at 6:48 pm

Has there been anything raised about potential higher taxes on dividend income from common/preferred shares bought on the stock market?

#15 Balmuto on 05.26.17 at 6:54 pm

“But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.”

To be honest, neither do I. Because small business owners don’t get pensions or benefits we ought to keep these loopholes in place that don’t make any sense? Pensions and benefits are paid by the employer. The small business owner can always set aside some of the corporation’s earnings to fund their own retirement. Same way large corporations do, just on a smaller scale. If they choose not to that shouldn’t be the government’s problem.

#16 Sydneysider on 05.26.17 at 6:55 pm

“We collect dividends, capital gains, interest etc on our investments. I have never collected a dime of EI benefits. ”

There is not much difference between colecting dividends and EI. Both are the fruit of other people’s labour. Don’t understand why he is complaining, but good luck to him in the quest to live well without working.

I think he meant dividends from his company. Slight difference. — Garth

#17 blessedbypotato on 05.26.17 at 6:56 pm

what is fair:
one of my friend make same income and route it through the corporation. He barely pays any taxes. It doesn’t stop here. he collects large govt. benefits than I can get like RESP, RESP BOND, CCB, sports for KIDS. Uses roads, hospital etc. and who pays for all that.

#18 bob dog on 05.26.17 at 6:57 pm

Greetings from Vancouver.

Would someone please inform our corrupt puppet government that money laundering is illegal.

#19 Paully on 05.26.17 at 6:57 pm

It would seem that the simple and easy solution would be to get rid of all of the complexities and go to a simple, single, low, tax rate for all income. Something like 15% on everything, after some minimum threshold like $15000 or $20000.

Imagine, income, capital gains, dividends, corporate income all taxed at the same low rate. How easy would it be. You place your resources where the return/risk is the best, not where it gives you some ridiculous tax advantage.

Of course, it would no longer require legions of bureaucrats, tax lawyers, auditors and accountants at the CRA, so it will never happen.

#20 Paul on 05.26.17 at 6:58 pm

#15 Balmuto on 05.26.17 at 6:54 pm

“But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.”

To be honest, neither do I. Because small business owners don’t get pensions or benefits we ought to keep these loopholes in place that don’t make any sense? Pensions and benefits are paid by the employer. The small business owner can always set aside some of the corporation’s earnings to fund their own retirement. Same way large corporations do, just on a smaller scale. If they choose not to that shouldn’t be the government’s problem.
—————————————————————–
Says the guy that’s never ran his own business. LoL.

#21 Damifino on 05.26.17 at 6:59 pm

Jeez Louise! Pierre’s boy hasn’t been in two years and already he’s made a total hash of things. He’s dropped the ball on about election10 promises but the one thing I guarantee he’ll be able to accomplish is raise taxes.

——————————–

Interesting article in the post today about Kevin O’Leary by his campaign manager. Although O’Leary became the immediate front runner and was probably a shoo-in for the Tory leadership, it’s seems doubtful he wanted the job in the first place.

Okay, so maybe he wasn’t the right guy, but I wonder why he bothered wasting his time. If anyone should know time is money it’s Kevin O’Leary.

I thought he was a tad smarter than that.

#22 crossbordershopper on 05.26.17 at 6:59 pm

being poor in Canada is great, i dont know why anyone works anyway. i see them all driving around, going here and there, i dont know. working i guess. why dont people just sell their million dollar home and live in mexico, gated community and relax and live like a king on 1500 a month. i laugh at everyone who works for a living in canada. always complaining, simply leave. come back a few times a year, the weather in Ontario is very nice in the summer. visit family and friends and then go back home. i dont know, if you dont earn any income in canada dont have any assets, you know rent a house, drive a car in your brothers name, you know, dont have any cash in the bank. live the right way.

#23 Pepito on 05.26.17 at 7:02 pm

I like it. Poor Gary… he worked so hard… blah, blah, blah.
You’re so totally out of touch…

What’s next, a teary eyed letter from a speculator how rent controls are going to destroy his retiremen plans?

#24 Wrk.dover on 05.26.17 at 7:02 pm

#155 TurnerNation on 05.26.17 at 2:41 pm
#137 Wrkdover min wage? In charge of inspections?
Sounds ripes for bribing.
All the fresh fish you want dropped off at home.

——————————–

Well there you are. So the all important data has no chance of accuracy does it? So it goes…

but imagine what the data sells for, after it is collected haphazardly.

#25 Frank on 05.26.17 at 7:02 pm

Appropriate tax rates are a matter of debate. Gary’s assertion:

We are by no means rich.

Is not. Sorry Gary, if you make $200K+ then statistically speaking you are rich. No one cares if you feel rich or your neighbour is richer. That puts you in the top 2% of income earners in this country. You’re well off dude, accept it and own it.

Say “I don’t want to pay more taxes to subsidize poorer people”. That’s a fine view point but have to balls to say it, not cry about not being rich.

#26 Smoking Man on 05.26.17 at 7:03 pm

I can’t coment on this till august. Then I’ll let lose and show you dogs how it’s done.

Taxation is theft. It’s all I’m going to say right now.

T2 and his minions of boot licking commies can kiss my ass.

Just Sold Muskoka.

Come find me. I’ll be on an island near St Marteen.

I warned you dogs 8 months before T2 was elected that a shit storm was coming.

Like when am I wrong.

#27 Keith in Calgary on 05.26.17 at 7:03 pm

DELETED

#28 Daughter of Ponzy on 05.26.17 at 7:05 pm

Professional corporations are abusing the tax system. They should be treated as any other employee because they don’t take any risk. Tax these milk cows for once!

#29 Another Annoying Millenial on 05.26.17 at 7:06 pm

Cue the whiny, rich old folk…

How about a real history lesson Garth? Corporations were created to allow large corporate endevours with numerous partners obtain financing and reduce risk to personal assets where to daily operations of the company were largely out of the investor’s control (think East India Company and others).

Now they’re legal “persons” with all kinds of special privileges that anyone can start in one afternoon. No partners needed and full control over operations.

What ever happened to sole proprietorships where hard working craftsmen plied a trade, earned income, deducted expenses, paid taxes, and saved money like the rest of us? If you did a good job and had insurance you had nothing to worry about; if you didn’t, you lost your life’s savings (like you should).

The vast majority of modern corporations are a sham.

#30 rknusa on 05.26.17 at 7:09 pm

no tears here either

friend has been contracting with one firm as a Corp for services for over 25 years and is according to CRA “self employed”

are they stupid?

lives in his parent’s basement (has over a million socked away) pays himself a small salary, writes off his vehicle and other expenses and continually cries about how much tax he is paying, wants to contribute nothing to the betterment of society

#31 the Hammer on 05.26.17 at 7:10 pm

From Orlando Figes book, ‘Revolutionary Russia, 1981-1991’. A couple of jokes that circulated amongst the proles…

“Capitalism is the exploitation of man by man. Socialism is the opposite.”

“What nationality were Adam and Eve?”

“Soviet, of course. Who else would walk around barefoot and naked, have one apple to share between them, and think the were in Paradise?”

Could this 2nd joke be updated?

#32 Dave on 05.26.17 at 7:14 pm

What benefits were realized with the $130 billion spent….refugees freebies and what else???

#33 Alberta Ed on 05.26.17 at 7:14 pm

What else would you expect from a bunch of silver-spoon socialists?

#34 Doug t on 05.26.17 at 7:16 pm

This will all die by the wayside once they lose the next election

RATM

#35 T-Rev on 05.26.17 at 7:17 pm

Now THIS is why I read this blog. Great post Gartho my man. There are so very few defenders of free enterprise left, thanks for continuing to be one.

#36 crowdedelevatorfartz on 05.26.17 at 7:17 pm

What the hell kind of cake is that dog about to eat?

Meat? With cheese filling?

#37 A Dollar is a Dollar is a Dollar on 05.26.17 at 7:19 pm

“How do you like fairness so far?”

Lovin’ it! :)

Trying to suggest some dollars should be treated better than others is exactly like saying men should be treated better than women or whites better than blacks.

No matter how convoluted the rationalizations, such arguments just don’t cut it.

Trump’s PR spin doctors are more credible.

Change is a comin’……………

#38 Another Annoying Millennial on 05.26.17 at 7:19 pm

I should point out that I’m all for larger corps with multiple partners and some form of tax advantage for investors. Reasonable risk taking and saving should be encouraged.

I propose dividends and capital gains are taxed at the same flat rate, say 15-20% or something and don’t allow any exemptions. Allow cost base to be adjusted for inflation to promote, not penalize long term investing.

If the gov did this, they could probably scrap RRSP, TFSA and other gimmicky accounts and maybe our tax returns would be a lot more simple.

#39 neo on 05.26.17 at 7:24 pm

#9 Sam the Sham on 05.26.17 at 6:41 pm
Well it looks like it’s official, the Toronto real estate bubble has finally been popped! It has been proclaimed on Zero Hedge. Time for all the blog dogs to pop the Champagne and celebrate. It’s been a long wait for many!!

http://www.zerohedge.com/news/2017-05-26/all-hell-breaks-loose-torontos-house-price-bubble

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

I think Mark aka pitz in Zerohedge is over there in the comment section rambling about the peak was actually 2013. It’s kind of pathetic.

#40 cmj on 05.26.17 at 7:25 pm

It is frustrating to read this blog and have entrepreneurs criticised for being greedy. Read how they contribute to our overall economy
https://www.startupcan.ca/wp-content/uploads/2012/01/Statistics-on-Small-Business-in-Canada_StartupCanada.pdf

#41 Grey Dog on 05.26.17 at 7:32 pm

WHAT??? I LOVE my nonregistered investment fund…that’s just WRONG!!! I save RRSP, TFSA, all government registered, and now the government has its sites on MY REWARD FOR SAVING and living below my means?

#42 Daughter of Ponzy on 05.26.17 at 7:33 pm

And the dentists. They overcharge on everything because of the company paid insurance. That’s why everything is so expensive.

And let the foreign doctors practice in Canada like you allow any other profession and you’ll see how many people will go to these local boys and gel’s. The only reason they thrive is because there is no real competition. It’s a stupid monopoly and money grab, nothing else.

#43 Royal City Dweller on 05.26.17 at 7:36 pm

Fresh From The Press:
GTA home sales plunge as much as 61 per cent

Wow.

https://www.thestar.com/business/2017/05/26/gta-home-sales-plunge-as-much-as-61-per-cent.html

#44 Daughter of Ponzy on 05.26.17 at 7:37 pm

Let the dog in the picture eat the cake. If he is Canadian dog he is already neutered. At least he should get a cake for f… sake.

#45 Blobby on 05.26.17 at 7:37 pm

I’m one of those people who keeps my money in my corporation, rather than paying myself? Why? Because some years I make next to no money!

Government has forgotten about all the risks self employed people take! How we don’t get sick pay, free extended health, rrsp matching, etc etc that employed people get…

#46 toronto1 on 05.26.17 at 7:38 pm

Not sure how the govt is going to enforce this?

If i own a company i am free to pay whatever salary i would like to whom ever i want regardless if they are family or not.

If questioned on why i am paying my spouse or family member 100K all i need to do is provide comparable jobs and responsibilities in the public sector which should be pretty easy to do and their rate of pay is pretty umm generous.

The capital gains part i dont know- yes people take advantage but that advantage is required to have capital investments- without that advantage why would i invest my after tax dollars into something that will be 100 taxed again?

The gov’t has to tread carefully here, the vast majority of people are willing to pay their fair share of taxes, but if you push it too far, many will just decrease their participation in the workforce voluntary and that would cause larger issues for society as a whole.

Where your talking the top 1 % or 5%, most of these folks can just retire or semi retire right now and live well, whats the incentive for them to hand over more of their pay- they can just wind it down to 1-2 days a week or not work at all.

There will always be an abundance of low to semi skill labour available but for the higher skilled jobs doctors, specialists, lawyers etc.. their supply is limit and even with that limit the top of those professions will always be limited- not every doctor or lawyer or pilot is equal- they all have the same title but some of them passed with a 60% while other did with a 95% but they all have the same title- those who passed with 95% are the ones that go in to specialize in fields that we as society require to live long and healthy lives

#47 Pete from St. Cesaire on 05.26.17 at 7:39 pm

“But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.”
———————————————————
Always looked at from the Canadian point of view of “others should pay more” rather than “I should pay less”.

#48 BoomerKid on 05.26.17 at 7:41 pm

“Like doctors, these people earn far too much”

“Threat of moving South – please do….you would be welcome there.”

I’m a resident doctor in my early 30s. In a few years, I’ll be 35 and I’ll have spent 4 years in medical school and 9 years in subspecialty training working 80-100 hours a week, 2 weekends a month, and 1 in 4 (every fourth night) in hospital overnight. I still have student debt and little savings. I have highly specialized skills that will be valuable both North and South of the border and I will be licensed to practice in the US (most newly graduating physicians can easily be licensed in the US). The Ontario government has recently cut physicians take-home pay by 1/3 and with the looming demographics and government spending habits both federally and provincially, it’s hard to foresee a future where either salary cuts (or dismantling of the “universal” health care system) won’t continue. This is my country and I don’t want to leave it, but if I make 3-5x the take-home salary in the US and can’t pay off my student loans and save for retirement within a reasonable time frame working/living in Canada, I won’t have a choice. Most older/established physicians won’t leave (although they may cut their hours and/or retire early). But the new grads with debt, no savings, and often young families will be forced to.

#49 Scott on 05.26.17 at 7:46 pm

Re: ei- the difference between e.i. and dividends is that e.i. is an insurance policy whose premiums are paid by contributions from the holder. There is no shame in collecting on your insurance when conditions warrant.

#50 Nonplused on 05.26.17 at 7:47 pm

Hear that? It’s the sound of your plumber and the tow truck guy raising their prices so they can pay all this extra tax. Your doctor too.

When are these morons we seem to elect every election going to realize that there is nothing left to tax and the average Canadian is flat broke?

Likewise these stupid carbon taxes. Where do the politicians think this money will come from? Well, it’ll have to come out of other parts of the family budget.

I saw a job posting the other week for someone to drive around to stores in Alberta and make sure the LED bulbs were being sold correctly under the subsidy program. For $17/hour you get a 3 week job but you have to have your own car. Who can take $17 an hour 3 week job and has there own car? These governments are nuts! Oh well I got some LED bulbs cheap.

#51 Pete from St. Cesaire on 05.26.17 at 7:47 pm

The government will find some way to force responsible savers and high achievers to bail out the over-leveraged parasites.
—————————————————–
That’s a fact. Here’s another fact: When we reach TEOTWAWKI, if you’re one of the few who still has a pair of shoes you’ll be told that you obviously haven’t paid your ‘fair share’.

#52 crowdedelevatorfartz on 05.26.17 at 7:51 pm

@# Daughter Of Ponzi
“Let the dog in the picture eat the cake. If he is Canadian dog he is already neutered. At least he should get a cake for f… sake.”
+++++

May I speak for all gender neutered (neutral?) canadian males everywhere…..
I applaud your attitude

#53 Linda on 05.26.17 at 7:51 pm

Sad but not surprising. As more people retire (by choice or by force) the government take drops. So now they are trying to harvest as much as they can from those who set aside funds for their future as possible, all for our own good of course. Hey, why penalize the indigent party animals when those worker ants are so very easy to prey upon? Besides, the party animals have spent every dime they’ve made (& maybe a few more) while those diligent worker ants – well, how CAN we expect resistance to such temptation? After all, you can’t tax what doesn’t exist, but for those who have set funds aside, expect to be plundered. Argh, Matey!

#54 lucyj on 05.26.17 at 7:54 pm

So we make life difficult for small business owners and professionals on one hand and then piss away our tax dollars on Bombardier wtf?

#55 Buyers desperately trying to get out of deals on 05.26.17 at 8:04 pm

The lastest round of fiscally irresponsible RE gamblers are trying to walk away in an attempt to delay the HUGE loss of hundreds of thousands of dollar. They want to litigate with hopes the delay will allow them to sell for a price that pervents them from going bankrupt. RE in the GTA is a house of fraud

#56 Smoking Man on 05.26.17 at 8:06 pm

Did anyone catch Suckabergs speech at 330 graduation ceremony at some Ivie League school in the USA. I did not think the USA was 330 years old.

He’s a dumb stupid kid, but a big time thief, hell yeah he sold Facebook from the twins. That’s why he gets along so well with the real mafia at the UN

Pumping Globalism like there is no tomorrow. I Won’t WORK.!!!!!!

One world govt only works when we can read each other’s minds. Humanity is not there yet.

Did anyone not buy my shit book?
Absolute power corrupts absolutely.

Taxation is theft. Even the Italian Mafia doesn’t take 50% These globalist vermin are scum. Feeding bull shit to kindergarten kids minds all the way up to collage.

Long live the spirit of Entrepreneur, it’s us against the machine

#57 Doug t on 05.26.17 at 8:09 pm

Garth question – would this also include the like of a Holding Company that is “Limited” ?

Especially. — Garth

#58 AR on 05.26.17 at 8:10 pm

Self employed people are free. That’s priceless. If tax rates equivalent to corporate slaves, consider it the price of freedom.

Likewise, the corporate employee pays the price of freedom in exchange for benefits and pension. Everything costs something.

#59 Smoking Man on 05.26.17 at 8:12 pm

#42 Royal City Dweller on 05.26.17 at 7:36 pm
Fresh From The Press:
GTA home sales plunge as much as 61 per cent

Wow.

https://www.thestar.com/business/2017/05/26/gta-home-sales-plunge-as-much-as-61-per-cent.html
…………..

416 still cooking.

#60 Garden Maven on 05.26.17 at 8:13 pm

From the many stupid comments tonight, you learn one thing: the T2 gov is playing the politics of envy because that sure works. But what will they do when the other people’s money is all gone?

#61 oncebittwiceshy on 05.26.17 at 8:16 pm

#170 Calgary Rip Off on 05.26.17 at 4:41 pm
AND WHEN WILL CALGARY COOL?

Perhaps, this will help you out a little. What you hear from people is rarely what’s happening.

http://www.cbc.ca/news/canada/calgary/conference-board-alberta-insolvency-rates-bankruptcies-calgary-edmonton-consumer-business-1.4049820

Alberta insolvency rate jumps 34% as upward trend continues

#62 Rational Optimist on 05.26.17 at 8:18 pm

Take this example: if you are an employee in Ontario living in Ontario and you make $60,000, and your wife makes the same, you would between you pay roughly $23,000 in income tax. Now, your neighbour makes $120,000, and his wife has decided to stay home for a few years to take care of the kids, so has zero income. That couple pays $34,000 in income tax. And the Liberals see no good reason why this should change.

I know the topic is about the Liberals’ intent to stick it to people who own plumbing businesses or hair salons, and definitely that’s insane, but everything about their policies is insane unless understood as a cheap ploy to buy votes. That’s why income splitting was rolled back. That’s why we got the “middle class tax break” that didn’t benefit anyone earning less than $50,000 (increasing the basic personal amount would have helped more people). That’s why the child welfare cheques became means tested- but a household making $200,000 can still get one. Some “middle class” tax break.

#63 Cow Man on 05.26.17 at 8:18 pm

Amigos:

What is not covered here is what tax is paid by the private corporation shareholder, self-employed, when you need to withdraw the retained earnings. Those are the savings, you have accumulated within your private now passive corporation, to replace what the Defined Benefit government employee gets as a pension. Dividends from Canadian corporations, which is what your retained earnings are held in, are grossed up by 25% for taxation purposes. When that withdrawal exceeds $200,000 you get smashed by taxes. No one identifies the dividend tax rate of over $200,000 at a 25% gross up is now taxed as $250,000. It is an absolute bloodbath for withdrawing retained earnings. You pay taxes on dollars you never receive.

#64 Vern in Cowtown on 05.26.17 at 8:20 pm

Garth, any advice to those that have passive investment income (incl. unrealized gains) on investments sitting in Incorporated accounts? Is it liquidate ASAP or are we screwed already?….will this be retroactive?

#65 AB Boxster on 05.26.17 at 8:21 pm

Talked to a friend tax who does tax accounting for high net worth individuals. These folks still work and pay mucho taxes to Dr. Moreau and his commie friends.

Many are looking to end this and just retire.
Why continue working when the socialists just take it away.

Don’t forget milllenials, the people with all the money and net worth today have far more options than you indentured and indebted serfs living from contract to contract.

Money and skills are easy to move out of this country.
It’s called globalization. You love it but will never benefit from it.

Those with the skills and resources will find another place to ply their trade. That is called the free flow of labour and capital.
Econ 101 .

Taxing those who take risks through investment of their own capital, or who provide their servies through corporate structures is doomed to fail.

While they will be plying their trade in a tax friendly country, or retiring in a tax friendly haven, your selfie loving PM will be taxing the crapola out of the rest of you remaining lambs, as you look for your next 6 month contract and try to figure out how in hell you will be able to afford your 800K mortgages when rates rise .025%.

Enjoy.

#66 Figmund Sreud on 05.26.17 at 8:21 pm

What to do?
__________________________

I suggest that each and every single day we simply wake up, march briskly across or down the the street to a local Tim’s for a cup of dark roast coffee, have a gulp or three, … than start foaming at the mouth because of the fairness of things!

May unfair reign, … but only when it is unfair in my favour!

Cheers,

F.S. – Comox, BC.

#67 rainclouds on 05.26.17 at 8:24 pm

#24 Wkd Over “#155 TurnerNation on 05.26.17 at 2:41 pm #137 Wrkdover min wage? In charge of inspections? Sounds ripes for bribing.
All the fresh fish you want dropped off at home.
——————————–
Well there you are. So the all important data has no chance of accuracy does it? So it goes…but imagine what the data sells for, after it is collected haphazardly.

————————————————–

Yup, what goes around comes around.

I believe it was in the 80’s. Fisheries placed “spotters” on foreign boats to ensure compliance catch/species/size).

All it took was a few bottles of booze as a bribe and poof, foreign vessels were complying…….I guess the Fed Govt brain trust in Digby wasn’t around then, or perhaps they are simply stupid?

If me experience last year is any indicator I will go with stupid. Applied for the job as Census person . Did the interview/ passed the “test” in spite of the crayons. Provided my References.

Find out later: Govt genius calls my reference, leaves message on VM. “This is x from the Govt. Please call me” No reason given. Naturally my friend didn’t remember me asking 3 months earlier nor does he have any use for “parasites”.

Consequently Govt Genius explains “You need to provide another reference” . I countered with “If you are too stupid to provide a reason for the call why would I waste my time giving another name……..take me off the list you simpleton”.

Cathartic actually……………………..

#68 Geoff on 05.26.17 at 8:24 pm

Garth, would this affect only professional corporations (Doc, Lawyer, Accountant, Advisor, etc) or potentially ALL small business corps?

All. — Garth

#69 my Executor's Assistant on 05.26.17 at 8:24 pm

There are always going to be those who abuse a system, but for those companies that are planning to go from entrepreneurial to professionally managed enterprises, retained earnings are greatly needed to fund their growth ambitions. Litigation possibilities also play a large role in deciding to become a corporation. No money to fight in court will result in personal bankruptcies for those who remain as sole proprietors or for companies whose retained earnings are eaten away by taxes. Corporations need to keep their sales pipeline full which requires hours of unpaid networking and marketing functions as can be seen from this dog loving blog. This will be a terrible policy if enacted. Employees only worry about their growth ambitions and rarely consider the incredible time, effort and ambition to advance a business by their owners. Governments only know how to grow themselves.

#70 KLNR on 05.26.17 at 8:27 pm

meh, you’d only have a problem with what morneau is saying if you were a scammer/tax dodger.

#71 Rational Optimist on 05.26.17 at 8:29 pm

6 Mike on 05.26.17 at 6:35 pm

“Either let employees do what self employed can do, or have self employed come to same level as employees.”

On Monday morning, go tell your employer that you’d prefer to incorporate and bid on each project. They’ll save on CPP and EI contributions, and get to send you home until they need you again. You’ll get to bid on projects at other companies, and also deduct the lease payments on your car!

Sorry to be glib. But most business owners are not doctors who have incorporated. Most are really running businesses and risking a lot to do so.

#72 Eating quinoa in Vancouver on 05.26.17 at 8:29 pm

Having made two visits to emergency this winter and having had two kids, three surgeries over my life so far, I don’t begrudge any doctor their salary. We need them and they are worth it.

#73 KLNR on 05.26.17 at 8:32 pm

#42 Royal City Dweller on 05.26.17 at 7:36 pm
Fresh From The Press:
GTA home sales plunge as much as 61 per cent

Wow.

______________________

be way more interesting if it said prices.
sales not so much

#74 Canada is screwed on 05.26.17 at 8:37 pm

If they are going mess with the capital gains inclusion rate then I am going to drain my investment account and buy that $3 million shack with my cash. I see no other tax efficient option. Forget balanced portfolio. This goes against everything I learned when I got my CFA charter, but the liberals are leaving little choice.

If they want to tax the rich, tax the capital gains on primary residence. Who is rich…the guy with 100k portfolio or the guy who won the lottery with a 2M wartime bungalow at Yonge & finch?

#75 BS on 05.26.17 at 8:44 pm

But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.

The problem is how do they stop it? If someone owns shares in a business they are entitled to dividends. They would have to gut how a corporation is set up and run. Either way there will be many ways around it and CRA doesn’t have the resources to try to audit any of this and it would be near impossible to prove cheating. Sounds like another failed Liberal policy.

#76 Scrooge McDuck on 05.26.17 at 8:46 pm

Sorry Garth, I’m with Trudeau on this one, you didn’t actually address the argument in the letter, you basically just whined about how hard done self employed people are because they don’t have pensions or whatever. And what, most employees have pensions now? A dollar is a dollar. Tax that shit the same. If you want lower taxes then have the SACK to advocate for lower rates, not for special rates just for you little snowflake Aww that’s so cute poor little you has no pension, poor little you who doesn’t pay into EI doesn’t get EI, Aww POOR LITTLE YOU.

Pay your taxes and stop sniveling.

#77 Catch me if you can... on 05.26.17 at 8:47 pm

#26 Smoking Man on 05.26.17 at 7:03 pm
I can’t coment on this till august. Then I’ll let lose and show you dogs how it’s done.

Taxation is theft. It’s all I’m going to say right now.

T2 and his minions of boot licking commies can kiss my ass.

Just Sold Muskoka.

Come find me. I’ll be on an island near St Marteen.

I warned you dogs 8 months before T2 was elected that a shit storm was coming.

Like when am I wrong.


We got a runner heading for the fences!

#78 dakkie on 05.26.17 at 8:50 pm

Chart of the Day: Toronto Housing Bubble Goes Boom, Suddenly!
http://investmentwatchblog.com/chart-of-the-day-toronto-housing-bubble-goes-boom-suddenly/

#79 Smoking Man on 05.26.17 at 8:57 pm

Conforming for the crumbs.

The day you have the same eyes as the dog in the above pic. That’s the day you discover freedom.

Freedom can end in a crash and burn or you learn to pilot a Nictonite plasma flier.

But sitting there pretending to love your boss who pretends to love his boss. All the way up to the big office of big Dave M. Nixon was way smater than you and I have let the board of directors know.

I got me soom crazy eyes something DM will never experience. Poor bastared. So he takes home milions . That’s not freedom bitch.

I’m a few weeks away from going ape shit on linked in

Jim Stojsin connect for some great entertainment

Basterds feared me. Thought they would shut my up by draining my crumbs and making sure I comply. No bay street job for you.

Nope that’s not how crazy eye roll.

SJW you ever notice that the white patriarch. You worship them, but beat up on white rivet buckers .

Come to my school. You will learn something.

#80 Green envy? on 05.26.17 at 9:06 pm

#30 rknusa
“wants to contribute nothing to the betterment of society”
sounds like you’re jealous that your “friend” has worked his ass off, structured his finances and lives within his means.
And… do you actually think that being overtaxed, especially by this incompetent gov, contributes to bettering the people who really need it? NOT!!

#81 Alice on 05.26.17 at 9:08 pm

Trudeau is quickly turning this country into a cesspool of mediocrity, and cronyism.

#82 I'm Not Poloz on 05.26.17 at 9:10 pm

While everyone of you are fighting over the worthiness of a $220,000 doctor’s salaries, Poloz will turn that $220,000 into $110,000 US using his magical formula to boost exports:
https://www.lombardiletter.com/loonie-0-57-trade-war-means-weak-canada-economy-forecast-for-2017/6800/

#83 Gregor Samsa on 05.26.17 at 9:11 pm

As artificially low interest rates cause stealth inflation and kill off the real, productive portion of our economy (thanks Poloz), full-time private sector salaried positions are steadily decreasing, not increasing. These wage earners are already squeezed about as much as they can take, taxation wise.

Yet as Garth points out, governments are only milking that one kind of worker and giving contractors and incorporations a free ride. In the face of a $20B deficit, something has to give.

But instead of fixing the actual problem (low interest rates), the government is seeking new and innovative ways to steal more tax money from Canadians.

That should end well.

#84 Relax on 05.26.17 at 9:13 pm

By next summer ya all can sit back roll a spliff, get baked and groove to Kanye.

All while Kanada saves this planet!

#85 Bonhomme Carnaval on 05.26.17 at 9:16 pm

Meh, that’s the way the cookie crumbles…

Any news on NAFTA talks/renegotiation?

#86 Smoking Man on 05.26.17 at 9:20 pm

Freedom.

The day you show your crazy eyes, rotting teeth and real a name.

The day you spit on the machine and give no fk of the outcome.

What a beautiful place to be.

That’s Nictonite.

#87 I'm Not Poloz on 05.26.17 at 9:21 pm

@#58 Smoking Man on 05.26.17 at 8:12 pm

—————————————

“But when you start looking at this May compared to April, we’re probably going to see prices fall. Usually prices don’t fall from April to May. Those are peak months. I think we’ll see prices falling maybe 5 or 7 per cent,” he said.”

Poloz will offset the decline by pulverizing the Loonie below 50 cents, while Morneau increases taxes to 60% Income Tax and 20% Sales Tax, so that Canadians can “pay their fair share” while working for free on a 50 cent Loonie.

#88 Mike on 05.26.17 at 9:23 pm

.
I’m a resident doctor in my early 30s. In a few years, I’ll be 35 and I’ll have spent 4 years in medical school and 9 years in subspecialty training working 80-100 hours a week, 2 weekends a month, and 1 in 4 (every fourth night) in hospital overnight. I still have student debt and little savings. I
……….

I respect your profession, and I have no issue if you can avoid your taxes by forming fake professional corporations and hire your kids and spouses as ‘business manager’.

All I am saying is either employees should have same exemptions(deduct spouse’s salary for running home, tax exemptions for buying car, gas, parking. Get to pay dividend tax rate). Everyone have fun, but equal.

#89 Kool Aid on 05.26.17 at 9:26 pm

Taxes will be moving up for the foreseeable future.

Unfortunately much like the Wynne – Hydro fiasco, the Liberals actions regarding taxation & spending have been an exercise in futility and will create real long term economic damage to hard working productive Canadians.

Taxation rates are out of touch, spending needs to be reigned in.

The negative effects of excess taxes are surfacing, many Canadians are rethinking future goals, taxation liability, and how to mitigate such with in their respective financial goals.

A rude awakening for the Liberals is already underway, in the next few years good folk will pivot a portion of their wealth to friendlier tax destinations, the biggest losers will be here in Canada holding stalled assets while paying an every increasing tax burden.

The big winner will be the US, possibly the most underrated tax haven for Canadians via our Tax Treaty.

The US is wonderful and welcoming to those whom wish to spend their hard earned dollars, and taxes are reasonable comparatively and unlike Canadian real estate, US properties are currently undervalued if your window of ownership is 25-30yrs.

Not a fan of taxation without representation, 54%, is the breaking point, we’re actively looking to purchase US real property, guessing that’s where we’ll eventually pay the bulk of our tax dollars too, thanks Trudeau, thanks Wynne, take some more from us now, no problem.

We’ll see how much you’ll get down the home stretch, likely a lot less than if you’d kept taxation rates and spending reasonable.

BTW, I expect principal properties to one day also have a non taxable gains threshold, with the balance after a million being added to your tax bill at the marginal rate.

Brave new world.

#90 I'm Not Poloz on 05.26.17 at 9:30 pm

@#26 Smoking Man on 05.26.17 at 7:03 pm

“Come find me. I’ll be on an island near St Marteen.”

Poloz is aiming to crash the Loonie below 50 cents so that he can boost exports and offset the Toronto & Vancouver housing bubbles. Hope you can diversify your assets before that $100 Sir Robert Borden bill is worth less than $40 US.

Don’t believe me? There are almost 100,000 short selling positions on the Loonie.

#91 Mark on 05.26.17 at 9:31 pm

“I’m a resident doctor in my early 30s. In a few years, I’ll be 35 and I’ll have spent 4 years in medical school and 9 years in subspecialty training working 80-100 hours a week, 2 weekends a month, and 1 in 4 (every fourth night) in hospital overnight. I still have student debt and little savings. I”

Isn’t your issue really with your employer(s) that have chosen to severely underpay you while you’ve been working 80-100 hours a week?

Why don’t doctors demand that this be addressed, rather than working for very little, and then having a problem that their income is heavily taxed when they earn the big bucks?

A flatter income is better from a tax point of view than a crazy high income later in life at the expense of short-term income. Also reduces the financing costs a doctor will pay for their training.

The ‘markets’ will sort out the problems of tax policy, if indeed they really are problems. I personally don’t buy the argument that civil servants (which basically includes doctors with some fairly rare exceptions) should be complaining of taxes — after all, their salaries and compensation is largely derived through taxes.

#92 Wrk.dover on 05.26.17 at 9:34 pm

Two weeks ago I ordered a small item in Britain for 122 GBP that landed at my door here today, duty free for $350 CDN. How do like me now Poloz? ( I truly dislike you )

#93 Sitting on the toilet thinking on 05.26.17 at 9:37 pm

The problem with politicians is they have never worked a hard day in their life. I fully support anyone who can dodge taxes. While the government likes to raise our taxes they seem to give themselves a raise every year. If I was a doctor I would really think long a hard about moving south.

#94 I'm Not Poloz on 05.26.17 at 9:38 pm

Kathleen Wynne wants to increase the corporate tax rate in Toronto to 25%, while Poloz wants a 40 cent Loonie. Canada is turning into a Banana Republic, without the adult pleasures of Banana Republics (you know what I’m talking about).

#95 paulo on 05.26.17 at 9:38 pm

im am thinking the next federal budget will be a damage control one. the plebes in Ottawa will be dealing with a full blown national housing value crash in addition to major trade policy
issues,after we told trump to get stuffed at the nafta re-negotiation table. this being the catalyst that seals the death of our housing bubble. but we shall survive for the most part, excluding real estate speckers and fools whom rolled the dice on a property purchase at the top of a bubble that is in fact a ponzi game deluxe.

#96 Quebec is Great on 05.26.17 at 9:41 pm

Re: 39, 47,59
I agree fully with all of you. Lots of hate out there for small business. sad. Looks like we know who the targets of Millenial hatred are now – those who risk everything to live life the hard way.

#97 paulo on 05.26.17 at 9:45 pm

not sure what our American friends where thinking when the voted this dude into the white house, looking at some of the footage from his recent visit to Europe,like watching the class bully that can not play nice in the sand box even
his wife trying to distance herself rather interesting
going to be a interesting year to be sure. this guy needs a dressing maybe melina should enlist markel as a stand in wife for a month,bet she would straiten his ass out in a hurry

#98 Best dog blog on 05.26.17 at 9:52 pm

OK, I’ll go out on a limb and declare this THE best blog period- thanks, Garth….but more importantly the best online conversations on what matters to most of us Canadians…aah minus family and health.

#99 Smoking Man on 05.26.17 at 9:57 pm

When you get to the point of no return. Crank it.

https://youtu.be/vx2u5uUu3DE

#100 conan on 05.26.17 at 9:59 pm

RE #26 Smoking Man on 05.26.17 at 7:03 pm

Meh…….way more of a shit storm if Harper had gotten reelected. Anyone who thought they were good government was not paying attention.

#101 joblo on 05.26.17 at 10:00 pm

I am Not Poloz, your buddy Steven S. Poloz can want, want, want whatever.
He is a puppet controlled by the Global Banking Cartel.
Your rants are meaningless and pointless.

#102 Another Deckchair on 05.26.17 at 10:01 pm

@6 Mike

“…, but then allow me/employees to “hire” my spouse to ‘manage my home business’ & deduct his salary from my income and deduct “all kind of expenses” from my income – buying car, gas, parking”…….”

That’s all for losers, those who do not know how to really work the system.

I’m self employed, incorporated, no car, work from home, and my spouse makes more than I do – so why would I “pay” my spouse to get all that “income” taxed at the 54% rate?

Actually, one thing money can’t buy is time, so my way of reducing taxes is to reduce the # of hours worked by 20% (scheduled) in the next 12 months, maybe more after that. Over 50% of our take home just gets plunked down on savings for rainy days.

The only fly in the ointment is that I *love* the work I do, and am good at it, so to stick to my 20% reduction is going to be tough.

#103 WUL on 05.26.17 at 10:04 pm

Yet among the comments, not a single comment about the beleaguered prairie farmers and the Crow Rate!!

Heartless bunch of colonial overlords in Upper Canada.

God damn the CPR!!

Shoulder to the wheel.

#104 Leo Trollstoy on 05.26.17 at 10:05 pm

Trump’s showing in Europe just strengthened his support at home.

Ironic

#105 Russ on 05.26.17 at 10:05 pm

A Dollar is a Dollar is a Dollar on 05.26.17 at 7:19 pm
Trying to suggest some dollars should be treated better than others is exactly like saying men should be treated better than women or whites better than blacks.

No matter how convoluted the rationalizations, such arguments just don’t cut it.
===============================

Yawn.

Same old argument. Nothing new here. Move along. Move along.

Please research capitol dollars vs. employment dollars.

#106 WUL on 05.26.17 at 10:07 pm

Old school prairie rant.

#107 Free on 05.26.17 at 10:20 pm

Special delivery for all lefties out there:
http://www.foxnews.com/opinion/2017/05/19/venezuela-incredible-legacy-experiment-with-socialism.html

#108 umm.... on 05.26.17 at 10:21 pm

This week Bill donned his pointy Robin Hood hat and trusty codpiece and gave a speech in Toronto suggesting the next budget will be way less kind than this year’s. It was the boldest hint yet that the federal government is, in fact, gunning for the self-employed

………..

as i’ve said. As shit is hitting the fan this govt shall seek new revenue streams. Can’t go after the debt laden middle class, SOOOOOOOOOO—- yup go after the so called rich and savers.

sorry

#109 OttawaMike on 05.26.17 at 10:26 pm

Having a personal photographer chasing you around all day does not come cheap:
https://www.theguardian.com/world/2017/may/26/justin-trudeau-jogging-yoga-shirtless-photos-pr-stunts

At least Little Trudeau is a feminist. Oh wait that’s all hyperbole too:
https://www.theguardian.com/world/2017/mar/16/justin-trudeau-feminism-scorecard

#110 WUL on 05.26.17 at 10:26 pm

If the pastures are greener in the US are greener, move there. Just quit laying down threats. Send a post card.

#111 The real Kip on 05.26.17 at 10:28 pm

That does it, I’m voting for Justin!

#112 BillyBob on 05.26.17 at 10:36 pm

#87 Mike on 05.26.17 at 9:23 pm
.
I’m a resident doctor in my early 30s. In a few years, I’ll be 35 and I’ll have spent 4 years in medical school and 9 years in subspecialty training working 80-100 hours a week, 2 weekends a month, and 1 in 4 (every fourth night) in hospital overnight. I still have student debt and little savings. I
……….

I respect your profession, and I have no issue if you can avoid your taxes by forming fake professional corporations and hire your kids and spouses as ‘business manager’.

All I am saying is either employees should have same exemptions(deduct spouse’s salary for running home, tax exemptions for buying car, gas, parking. Get to pay dividend tax rate). Everyone have fun, but equal.

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

This blog entry’s comments is a perfect illustration of the greed/envy/tall poppy syndrome that has come to define Canada as a country. It’s to the point now where it’s a stereotype outside the borders – I know, I’ve lived outside them for many years. Canadians are seen as smug socialists, confidently striding down the path that leads right over the same cliff that Europe is plunging over, except that in Canada “it’s different”. Sure.

(Other stereotypes include cold, expensive, money-laundering haven. Sorry, not Tim Hortons and ketchup chips.)

The problem is illustrated nicely with Mike’s expressing his plea to be “equal”.

Just like the whole band of socialists personified by the idiot Trudeau, he confuses equality of opportunity with equality of outcome.

Here’s an opposing, radical idea. How about, if you covet what you perceive as the benefit of being a doctor or other professional, you strive to become one yourself? And if that isn’t an option – and it isn’t, for most people – how about learning to accept that? In the words of the 90’s anti-motivational posters: “Not everyone gets to be an astronaut”.

Of course, those who view themselves as victims will be outraged by such a concept. I’m just saying, trying to build yourself up instead of tearing others down is a far better use of your energy. But I realize that isn’t the loser Canadian way. Which is why the best and brightest very often leave. These proposed measures should accelerate that. Even the dimmest bulb should be able to grasp this is not a Good Thing?

But don’t worry, if you continue on this track you’ll all be “equal” in time.

Equally poor.

Canada is a beautiful place to be from, and to visit. Perhaps one day it will also be a great place to live, but not until there is some fundamental change in the victim/entitlement mentality.

#113 Fake News on 05.26.17 at 10:41 pm

Who the EFF makes 220K a year as an “employee” except a public sector worker???????

Funny how there is never a mention of cutting the size of govt.

#114 Free on 05.26.17 at 10:48 pm

Well said BillyBob, same boat here!

#115 Nonplused on 05.26.17 at 10:52 pm

“But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.”

I too would like to see how this will be determined. My brother-in-law runs a small electrical company (much smaller now than it used to be, times are worse than they say in the media), and his wife does all the accounting. Yes, she actually sits down at a desk and pays all the bills and pays the employees (well, she used to, those trucks are all parked now) and collects all the receivables and tracks all the time sheets, everything to do with running a small business except for the tax calculations. Is she an employee? If he pays her (which he does), is that not proper? How is the government going to determine whether she is an employees or not? How will they determine the proper market rate? Will my brother in law have to hire someone else to do all this work? What if it’s his nephew? Let’s say in a few years one of his sons goes to work for him actually pulling wire as a laborer or apprentice? That’s pretty typical in a family business. I worked a summer for my dad when I was in school. Should he not have been allowed to pay me?

This is going to get even more complicated for partnerships. When I worked for my dad, he was in a partnership so I was being paid by the company that he and his partner owned. Am I clearly an employee now that one of the owners isn’t family?

And what if your live in life-partner works for you but you aren’t married? What if you hire a stepchild? What if you hire your nephew? What if you agree to hire a good friend’s wife in exchange for him hiring yours?

They just aren’t going to be able to plug this so called hole without extremely heavy handed tactics that catch a lot of innocent people up in the lawsuits and audits.

Next thing you know they are going to try and tax my son for mowing the lawn. It’s outrageous.

And I’m not whining for myself, I can’t employ my wife because she’s already got a job so the incentive wouldn’t be there. However there are a lot of things she could do if she didn’t have a job, billing, expenses, booking flights and hotels, accounting, dealing with my various tax accountants, etc. It would be real work that I do myself right now and it distracts me from billable hours or leisure time.

#116 viorelli on 05.26.17 at 10:55 pm

One of my good friends from the college days who is a smarty pants, anesthesiologist, just moved to northern Nevada several months ago. He is employed by a great private hospital where his skills are in good demand. He says: I love Vancouver buddy, but houses are going for 2 mil, high cost of living, student loans, car payments, etc. But here a nice home in a gated community cost about $400.000 or roughly two years of my after tax wages, gasoline, food, other things are much cheaper, safety is ok here, my medical is partially sponsored through employer, wages are bout 70% higher with the exchange rate of my pay in Surrey, BC. Why would I remain in Canada again, Vio? Good luck guys. So Vancouver has just lost another great specialist, why…. don’t ask me guys.

#117 Smoking Man on 05.26.17 at 11:05 pm

Do you think I’m a lost loser bastard?

https://www.youtube.com/watch?v=SRvCvsRp5ho

You tossed Peter kind of wacky under the bus.

I have a problem with that DM

#118 Deplorable dude on 05.26.17 at 11:08 pm

I’m too sexy for my socks….

https://theconservativetreehouse.com/2017/05/26/oh-canada/

#119 Economystical on 05.26.17 at 11:21 pm

Hello again Garth, it’s been a while since I’ve responded but I feel this post is so egregious that a response is necessary.

You see, the current treatment of small businesses was developed in a time when economists wrongly assumed that small businesses were drivers of employment growth and it was thought that by being able to retain income they would invest in expanding the business. This is categorically sub-optimal from an economystical viewpoint.

You see, what will happen if you let a small business owner retain earnings is that they are likely to use those earning to pay cash for needed equipment. A taxi driver may pay off his car for example or pay cash for a new one and hire an additional driver. A plumber might by tools cash instead of on credit. So, so wasteful. Economystics teaches that all such purchases should be made with the maximum leverage possible because borrowing creates money and creating money makes us all richer. However it is distributed, no one can argue that we can be richer if there is less money to allocate, or that we could be poorer if there is more money.

Unfortunately many of the mom and pop operations around the country are not wise in the ways of Economystics and do not understand this very basic premise. They operate way under-leveraged, thereby depriving us all of the wealth that is properly ours if they borrow more and pay more taxes.

So therefore the proper thing to do from an Economystical perspective is to tax small businesses the same as we tax large businesses. This will force them to adopt higher leverage if they wish to expand. This creates more wealth, which creates more jobs, which in turn creates more taxes and leverage and thus even more wealth. Plus don’t forget all the new jobs that will be available in Winnipeg with the CRA, all of which are taxed and lead to more mortgages, thus even more wealth.

Some have argued on this blog that raising taxes on the well paid members of society (doctors, I believe, are your favorite example) will only raise prices. Well, that is probably true. But can’t you see that this only creates more wealth? Those visiting the doctor will thus have to borrow more somewhere along the line, thus creating even more money. If a plumber has to raise his rate from $135 an hour to $150 an hour to cover additional taxes, that is $15 dollars an hour more wealth created in the system for every hour he works because his customers likely have to pay that by borrowing more or forestalling debt repayments by that amount.

Garth, society is now more in debt now than it has ever been at every level whether you look at governments at all levels, corporate, or personal, and we are richer than ever as well. Coincidence? Economystics says no. It’s time to make small businesses carry their share of the march towards Economystical perfection. “A free lunch for everybody, and no one working in the kitchen”. It’s not just a dream anymore.

#120 Smoking Man on 05.26.17 at 11:24 pm

Wen the globalist had enough of me.

Dave Mackey

https://www.youtube.com/watch?v=MfmYCM4CS8o

I not thinking suicide

Cant beat the macine

#121 Ace Goodheart on 05.26.17 at 11:25 pm

They’ll leave loopholes for themselves. They always do. The idea is to know how to read statutes (particularly the income tax act) and figure it out. A lot of the time this just involves googling.

Our governments have one thing in common: they are predominantly run by the children of the ultra rich. These trust fund kids know where their bread is buttered and they won’t attack their own fortunes. They leave themselves “ways out”. You just have to know where to look……

Hard to believe in an age when accurate info is a click or two away that people can be so dense. Must be wilful ignorance. — Garth

#122 Pete from St. Cesaire on 05.26.17 at 11:26 pm

Don’t forget milllenials, the people with all the money and net worth today have far more options than you indentured and indebted serfs living from contract to contract.
———————————————————
Actually if the millenials werent so stupid they would have the upper hand. If they had received usefull degrees they could have left for greener pastures, renounced their citizenship, and left the whole sorry, commie mess behind. While the govt. could easily go after those who have already earned and saved their money even after they move away. All they would have to do it pass a retroactive tax law and claim that unless you paid up you would be wanted for tax evasion.

#123 T on 05.26.17 at 11:26 pm

#112 Fake News

Many people make > $220k a year as employees.

I did it by my mid 30s. Wasn’t that big of an accomplishment. I know others whom have managed the same.

#124 Fish on 05.26.17 at 11:32 pm

I don’t think that is cake, I think the dog is going to eat pie

#125 Brandon on 05.26.17 at 11:36 pm

I have been both an employee and employer. Those of you hating on employers have obviously never been one. Employers take on big risks and work long hours to get to the point of even being able to capitalize on some of these tax advantages. Take away the incentive to create jobs and competition for existing businesses within my sector and I will just close up shop and go take the job of one of the employees in my field. Oh and send our doctors south? May want to rethink that.

#126 meslippery on 05.26.17 at 11:41 pm

Many doctors and medical professionals, for example, earn money through corporations which means they have no pensions, no benefits.
_________________

no pensions, no benefits.
Please Garth that’s the plan for all but a few workers, Gov. workers and almost no one else.
I get a kick out of every time you bring up this pensions
and benefits thingy.
Last dentist visit 45 mins $425.00 the hell with pensions
at this rate she can retire soon.

Does she have employees? An office? Equipment? Seven years of post-sec education? You sound like a small person. — Garth

#127 dumpster fire on 05.26.17 at 11:47 pm

73 Canada is screwed on 05.26.17 at 8:37 pm
If they are going mess with the capital gains inclusion rate then I am going to drain my investment account and buy that $3 million shack with my cash. I see no other tax efficient option. Forget balanced portfolio. This goes against everything I learned when I got my CFA charter, but the liberals are leaving little choice.

***

Then don’t sell? If you have a balanced portfolio then it should be business as usual… Just wait it out until the next government repeals the changes XD And max out those RRSPs while you’re at it since they become far more lucrative if cap gain inclusion rate is increased.

~ breathe deep

#128 Pete from St. Cesaire on 05.26.17 at 11:59 pm

Hard to believe in an age when accurate info is a click or two away that people can be so dense. Must be wilful ignorance. — Garth
—————————————————–
Hey Garth, remember in the 90’s when the govt made a special order-in-council (or whatever) to allow a 5-minute window for a rich Montreal family to transfer billions out of Canada tax free. I guess allowing the press to report on it made it ‘legal’ due to it not being ‘secret’; everyone had the same opportunity (too bad that the story couldn’t be released until the 5-minute window had closed). Nope, those who control the strings of power have no perks for themselves………

#129 Nonplused on 05.27.17 at 12:03 am

#124 meslippery

The reason your dentist charged you so much is because she paid half of what you paid her in taxes, another half of what was left in rent, utilities, insurance and equipment, and another half of what was left for her staff. She got to keep about $100. By far the government took the most of the money. She isn’t retiring anytime soon.

#130 meslippery on 05.27.17 at 12:04 am

You sound like a small person. — Garth
————
6’3” but point is stop with all the perceived worker
benefits thats so 1980s or 90s not now.

#131 Smoking Man on 05.27.17 at 12:06 am

Any of you writers have anything to contribute that means something.

https://www.youtube.com/watch?v=x7bIbVlIqEc

#132 Smoking Man on 05.27.17 at 12:13 am

DM

https://www.youtube.com/watch?v=mTwjUE60HG4

#133 Smoking Man on 05.27.17 at 12:17 am

https://www.youtube.com/watch?v=e9-3RZkzpwM

my world

#134 Smoking Man on 05.27.17 at 12:25 am

Last smoke for the night

Crack it

https://www.youtube.com/watch?v=9muzyOd4Lh8

#135 meslippery on 05.27.17 at 12:27 am

Does she have employees? An office? Equipment? Seven years of post-sec education? You sound like a small person. — Garth
————————-
A really good 30 year mechanic only charges $100.00
per hour door rate with a shop and employees? An office? Equipment? So thats $325.00 per hour for retirement funding for my dear dentist.

#136 Mike on 05.27.17 at 12:28 am

#111
Here’s an opposing, radical idea. How about, if you covet what you perceive as the benefit of being a doctor or other professional, you strive to become one yourself? And if that isn’t an option – and it isn’t, for most people – how about learning to accept that? In the words of the 90’s anti-motivational posters: “Not everyone gets to be an astronaut”.

———

I did explain in my post what you said “why i don’t become a doctor?”, and me being jealous.

Buddy, I said I have no problem with doctors making fake corporations and employing their kids and spouses for doing nothing. No problem. All I said is middle class employees should have similar exemptions to avoid tax…

Oh, why don’t I become doctor? Maybe I ask you, why don’t you become a middle class majority to vote in a government of your liking? You seem jealous your vote didn’t count.

#137 Smoking Man on 05.27.17 at 12:38 am

To Trump

I’m never working ar Starbucks ever

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

#138 Long-Time Lurker on 05.27.17 at 12:42 am

Entrepreneurs create businesses and jobs. Employees don’t.

Making things harder for entrepreneurs and businesses won’t grow the economy or create jobs.

Socialists want to cut off an economy’s nose to spite it’s face.

#139 Cdn Mom on 05.27.17 at 12:51 am

I’m waiting for the new tax…the one that dings you each time you chew.

I believe it’s time for a flat tax, across the board.

I also believe it’s time for politicians who waste tax dollars to go to prison…or be financially and personally responsible for returning that waste, and enrichment of friends, to the taxpayers. First step would be to rescind each politician’s passport when they take office. They can have it back when they leave office, once they’ve received a Clearance Certificate from taxpayers, and their buddies they have enriched need a Clearance Certificate, as well.

Better still, we could vote on what we are willing to pay taxes for. Politicians could submit detailed budgets to taxpayers ONLY, and we can each check boxes.

It’s time to supervise these idiots who act like spoiled mall brats, with Mom or Dad’s credit card. Tough love time. Do it for the children.

#140 Mark on 05.27.17 at 12:55 am

“So Vancouver has just lost another great specialist, why…. don’t ask me guys.”

If that’s the case, then the price of specialists in Vancouver will rise, to take care of the high prices and high taxes.

If Canada’s tax policy makes doctors want to leave for places where the pastures are allegedly greener, then doctors’ compensation will have to rise in Canada. The market will force it.

If small business faces a punitive tax environment in Canada, then there will be fewer small businesses, but those small businesses that do remain will have greater earnings and greater profits.

While its obviously concerning that governments in Canada tax and spend a lot, I wouldn’t be overly concerned about the distribution of taxes as long as the rules are fair and do not arbitrarily target certain professions or individuals for special (or punitive) treatment. The elephant in the room is that government is just run so darn inefficiently in Canada. But Canada has nothing on the US in terms of overall government waste, that’s for sure.

#141 Mark on 05.27.17 at 1:00 am

“If they are going mess with the capital gains inclusion rate then I am going to drain my investment account and buy that $3 million shack with my cash.”

That sounds like a bunch of nonsense. Housing is priced at 3-4X higher than the contemporary (TSX) stock market indices. It strikes me as false economy to buy such a dramatically overpriced asset class and suffer a probable 60-80% relative loss, simply to avoid paying some capital gains tax. Even if the inclusion rate does rise.

Having said that, no politician in Canada (NDP’ers aside) has suggested, in recent memory, raising capital gains tax rates or inclusion percentages on securities. Not sure where the suggestion has come from, but the mere suggestion that a capital gains tax rate increase is around the corner is complete and unadulterated nonsense.

#142 Damifino on 05.27.17 at 1:02 am

#37 A Dollar is a Dollar is a Dollar

What? You again!

I thought you went back to the USSR.

#143 Niko Dog on 05.27.17 at 1:15 am

#122 T

Making $220K + a year puts one in the bottom part of the top 1% of income earners. So no, alot of employees do not make that much.

The point is…. put taxes on ridiculous PS pension benefits. Raise taxes on real estate speculators. Enforce laws on undeclared rental income. Stop income splitting to kids…. and do something about government spending!

#144 MF on 05.27.17 at 1:25 am

Fake News on 05.26.17 at 10:41 pm

Most government employees earn 50k and are on contract with zero job security. Fake news indeed.

-Does she have employees? An office? Equipment? Seven years of post-sec education? You sound like a small person. — Garth

We have PHd’s working at Starbucks. Nobody cares about time in school. Hasn’t meant anything since the 1980’s.

MF

#145 MF on 05.27.17 at 1:29 am

#122 T on 05.26.17 at 11:26 pm

Not it isn’t. No one I know is making that much (we are all mid 30’s in the GTA).

Most make around 60k. 80-90k on the high end.

That must have been decades ago pre 2008.

MF

#146 Fake News on 05.27.17 at 1:36 am

#122 T on 05.26.17 at 11:26 pm
#112 Fake News

Many people make > $220k a year as employees.

I did it by my mid 30s. Wasn’t that big of an accomplishment. I know others whom have managed the same.

_________________________________________

Well thanks for bragging. And there is a reason why it’s called the 1%. Just out of curiosity, was it a govt job? And Doctors, Professors or anyone getting paid by taxpayers count in this category.

#147 Complain, complain... on 05.27.17 at 3:54 am

From reading this Blog and its Comments, I cannot help but notice what an ugly mood Canadians are in nowadays, compared to even a couple of years ago.

Angry about everything it seems.

If 416 RE collapses, as it seems destined to do, our GDP will suffer and go negative. That will add to the anger.

Recessions are half psychology.

I fear that if no good economic news comes soon to Canada, we may have a “Made in Canada” recession as was exacerbated by John Turner’s budget back in the early 90’s. I see these Morneau measures doing precisely that if passed into law.

Not even YVR and its money laundering RE cult will be immune to that.

Hope things turnaround and soon, for I fear we are about to go into recession, courtesy of a nation that has borrowed beyond its means with a Government intent on wringing every last possible tax dollar out of its populace.

…and, spending it on questionable programs such as Trudeau’s $650 MM to gain feminist “street cred” (funding for women’s sexual and reproductive health rights around the world).

I ask you, how does that create jobs, stimulate the economy and change the gloom and anger of Canadians nowadays?

As a nation, we are rudderless and ripe for the picking.

#148 BillyBob on 05.27.17 at 4:55 am

#121 Pete from St. Cesaire on 05.26.17 at 11:26 pm
Don’t forget milllenials, the people with all the money and net worth today have far more options than you indentured and indebted serfs living from contract to contract.
———————————————————
Actually if the millenials werent so stupid they would have the upper hand. If they had received usefull degrees they could have left for greener pastures, renounced their citizenship, and left the whole sorry, commie mess behind. While the govt. could easily go after those who have already earned and saved their money even after they move away. All they would have to do it pass a retroactive tax law and claim that unless you paid up you would be wanted for tax evasion.

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

I am not a millennial (although my g/f is), but the analogy certainly applies to us. Thing is, our money was earned outside Canada and will never be repatriated – there are far, far better places to invest and own property. And it’s held in a jurisdiction where it is legally prohibited for banks to share such information unless in dire circumstances (i.e. money laundering, drugs, terrorism). Ours was earned perfectly legitimately, so Canada can pass whatever laws it wants but it’s pretty hard to make a claim on money you know nothing of, or make demands that would be ignored.

I won’t lie, I take great satisfaction in knowing I will never pay one cent in tax to the government currently in power (beyond the usual consumption taxes when visiting).

Globalization is a wonderful thing. Opportunities and choices, especially as my job is travelling the globe. Small example: my Apple laptop needed a new battery, the Apple store will do it on the spot for a fixed price. In the US: $129USD + 8.75% tax in California. About $188 bucks CAD total. Canadian price: $259CAD + 12% tax in BC, for a total of $290 CAD.

So I have a choice: get it done on a US layover, or when I’m in Canada visiting the fam. Gee, I wonder? Sorry, but you can’t blame Poloz for utter nonsense like that. I don’t know why any small company would even attempt to invest or do business in Canada. The only hope you’ve got is to try and get in on one of the oligopolies or something to do with government and carve a slice. Or do it for the love of it after you can afford to do something without major profit motive, like Garth. (The ice cream store, not the financial advice!) :-)

#149 neo on 05.27.17 at 4:56 am

Stick a fork in it…

http://davidstockmanscontracorner.com/chart-of-the-day-toronto-housing-bubble-goes-boom-suddenly/

#150 Trump's Travel Ban on 05.27.17 at 6:07 am

In a stinging rebuke to President Donald Trump, a U.S. appeals court refused on Thursday to reinstate his travel ban on people from six Muslim-majority nations, calling it discriminatory and setting the stage for a showdown in the Supreme Court.

The decision, written by Chief Judge Roger Gregory, described Trump’s executive order in forceful terms, saying it uses “vague words of national security, but in context drips with religious intolerance, animus, and discrimination.”

http://www.reuters.com/article/us-usa-immigration-court-idUSKBN18L2IO

“I love the First Amendment. Nobody loves it better than me. Nobody.” — Donald Trump

#151 Brian on 05.27.17 at 7:00 am

I know this keeps getting ignored, but BASIC INCOME is coming and if you worked hard and saved you will be screwed.

The deal is, EVERYBODY will receive a basic income of perhaps $18k/yr.

BUT, if you have income (a job, investment income) that $18k will be clawed back.

Basic income will REPLACE CPP AND OAS.

So the income (rrsp, investment) that you get from hard work and saving will negate your basic income (which replaced cpp and oas)

If you saved and worked hard to build your rrsp, your cpp and oas will be gone, replaced with a basic income that will be clawed back because your rrsp withdrawals cancel out your basic income.

Bottom line: if you worked hard and saved smart, you will lose!

No OAS, no CPP, and basic income clawed back….you lose!

Please people… pay attention to this.

It really IS important!

#152 Ontario's Left Coast on 05.27.17 at 7:07 am

#7 I’m Not Poloz on 05.26.17 at 6:38 pm
$80,000 tax on $220,000 income? Poloz wants to devalue the rest of your disposable income by lowering the Loonie to 40c.

Dude, you’ve got a serious fixation going on. You’re starting to make Freedom First look relatively normal.

#153 Alien Dentists Needed on 05.27.17 at 7:29 am

#116 Smoking Man on 05.26.17 at 11:05 pm

Do you think I’m a lost loser bastard?

https://www.youtube.com/watch?v=SRvCvsRp5ho

You tossed Peter kind of wacky under the bus.

I have a problem with that DM
..
Your teeth really are falling out!

#154 Wonder on 05.27.17 at 7:59 am

#15 Balmuto on 05.26.17 at 6:54 pm

“But in cases where the spouse or child have no role in the business, suddenly your neighbour is paying roughly $30,000 less tax than you do. And we see no good reason why that should be the case.”

To be honest, neither do I. Because small business owners don’t get pensions or benefits we ought to keep these loopholes in place that don’t make any sense? Pensions and benefits are paid by the employer. The small business owner can always set aside some of the corporation’s earnings to fund their own retirement. Same way large corporations do, just on a smaller scale. If they choose not to that shouldn’t be the government’s problem.
——

Exactly – small business SHOULD be allowed to retain earnings for retirement purposes, and not be penalized for this behaviour. Based on Morneau’s speech, he fully intends to penalize this behaviour by increasing the tax rate on any retained earnings. I expect that this will have a short term effect of having that money taxed at a higher rate and perhaps spent or invested in non-registered personal accounts, but in the long term, I expect this will increase OAS costs to the government (as they are income tested), and reduce future income taxes, as all of that retained earnings has to be withdrawn at some point and will be taxed at that time.

#155 mouldyinyvr on 05.27.17 at 8:07 am

http://www.news1130.com/2017/04/24/drowning-debt-new-normal-canada/
Drowning in debt??? Worth a read…….are we a nation of idiots….sure looks like it…

#156 A Dollar is a Dollar is a Dollar on 05.27.17 at 8:14 am

Tax all dollars equally, end this ridiculous system of insider privilege.

http://www.ctvnews.ca/business/ford-s-ex-ceo-leaves-company-with-us-51-1-million-1.3430662

Does the ex CEO *for only 3 years!!!!* of a now failing company deserve to get 51 million dollars, taxed at the much lower level of stock options?

Salary, stocks, real estate, treat them all the same.

By all means, allow small business operators to deduct reasonable costs.

Democracy. Transparency. Fairness. The rule of law.

Who do so many here hate those things?

#157 NoName on 05.27.17 at 8:23 am

Good morning

An artist pottery donny as refugee

https://twitter.com/spectatorindex/status/868340019760476160

#158 paulo on 05.27.17 at 8:24 am

#145 fake news

actually everybody whom secured a mortgage in the GTA in the last couple of years apparently makes 200K a year or more …………. so there ya go we are richer than we think!

#159 slick on 05.27.17 at 8:40 am

#6 Mike; jealous much? A couple of things;
how much money do you have invested in the company you work for? You have nothing to lose if the company goes broke. Get another job. the company owner has prolly worked 16 hour days for years to get to the point where he is. Went without health benefits, had pension uncertainty, missed kids hockey and soccer games, driven beat up used cars etc.
How many people does this ‘rich’ bastard employ?
How long does the boss work, after you have punched out?
How old will the boss be before he retires? You pack it in at 65, whine that it may go to 67, collect your pension, that the boss has matched, and screw off the next 25 years.

I gotta take a rest, or I’ll blow up this blog

#160 NoName on 05.27.17 at 8:44 am

Is this very interesting and informative read about tulips, I always tought that prices of tulips went down because prices went to high, but real reason was defit of germany in 1636.
Plus article touches on bitcon and bubles.

https://stratechery.com/2017/tulips-myths-and-cryptocurrencies/

#161 More Bullies Bullying on 05.27.17 at 8:54 am

Two men were fatally stabbed Friday on a train car in Portland, Ore., when they tried to intervene as a fellow passenger screamed anti-Muslim insults at two women, the authorities said.

The victims were attacked when they tried to calm the man, who was ranting and talking disparagingly about the women, one of whom was wearing a hijab, the police said.

“It’s horrific; there are no other words to describe what happened today,” Sgt. Pete Simpson, a spokesman for the Portland Police Bureau, said at a news conference.

https://www.nytimes.com/2017/05/27/us/portland-train-attack-muslim-rant.html

This may be what happens when the president of the United States legitimizes xenophobia, racism and anti-Islam sentiment. — Garth

#162 MF on 05.27.17 at 9:04 am

147 BillyBob on 05.27.17 at 4:55 am

I work with some US expatriates (millennial and gen x).

Their reasons for leaving are:

-the us work-life balance is nonexistent
-people are less friendly in general, and more xenophobic
-the gap between rich and poor is higher (some parts of the us are absolute ghettos
-total 100% distrust of the government/hate
-more guns/killings

You see it’s not just Canadians who complain.

MF

#163 the Jaguar on 05.27.17 at 9:08 am

BillyBob really on a roll today. Agree in most part….especially this:

“fundamental change in the victim/entitlement mentality.”

It’s bad and getting worse in some parts of the country. Where? The places where they burn their city when their hockey team loses a game.

#164 MF on 05.27.17 at 9:09 am

46 Complain, complain… on 05.27.17 at 3:54 am

That’s because of the very nature of the topics covered:

Money/investing, which inherently causes people to compare themselves with others and is in general a touchy subject.

That’s why most will overinflate their income, portfolios to make themselves feel better and look more successful here.

It’s the same for everyone all over the world. Complaining is the norm. Not just Canadians.

MF

#165 MF on 05.27.17 at 9:18 am

#111 BillyBob

You think other countries don’t have their own issues though?

No question this Liberal government is complete garbage along with their ideas/plans. No question Mourneau is not to be trusted, and while not a Liberal..Poloz is 100% incompetent and has to go.

But Europe is basically on borrowed time and on the verge of collapse, South America is corrupt, East Asia is closed off and xenophobic, China is built on fake stats, Africa is dangerous, tribal and corrupt, south east Asia is impoverished.

The US has the same issues more or less than we do.

The current politicians are crap, but the country and people are fine.

MF

#166 NoName on 05.27.17 at 9:18 am

Interesting read but very ong,I give up on page 8, read more later.

It is getting better in us!

https://www.federalreserve.gov/publications/files/2016-report-economic-well-being-us-households-201705.pdf

#167 maxx on 05.27.17 at 9:21 am

#46 Pete from St. Cesaire on 05.26.17 at 7:39 pm

“Always looked at from the Canadian point of view of “others should pay more” rather than “I should pay less”.”

Good point – the difference between losers and winners.

#168 NoName on 05.27.17 at 9:28 am

An this

https://qz.com/238416/asias-richest-man-is-building-hong-kong-apartments-barely-bigger-than-a-prison-cell/

Time we live in, when jail cell is bigger than condo…

#169 maxx on 05.27.17 at 9:28 am

#50 Pete from St. Cesaire on 05.26.17 at 7:47 pm

“That’s a fact. Here’s another fact: When we reach TEOTWAWKI, if you’re one of the few who still has a pair of shoes you’ll be told that you obviously haven’t paid your ‘fair share’.”

True, but when TEOTWAWKI arrives, shoes won’t be required. Shame because I just bought a great pair of flats.

#170 Cici on 05.27.17 at 9:43 am

#15 Balmuto

It may seem unfair, but yes, it is absolutely necessary to offer such “perks” to the self-employed, which make up an important and growing sector of the economy.

Not doing so would be absolute folly: no one in their right mind would risk their capital to start up a small to medium enterprise, and there would be a huge slide in job creation. Among those who would take the risk, if there were no assurances, a large portion would jump ship if any sort of downturn were to hit their industry sector, or lay off as many employees as possible to survive.

The other danger with this sort of obscene fiscal policy is that it will slow innovation; a problem that Canada’s already grappling with. Big Corpo likes big rewards, but not big risks. Most innovation and technological advance is funded by private, self-employed ventures. Big Corpo snaps them up for peanuts right when the reward outstrips the risks.

As for doctors, they have huge bargaining power. The health system is in a terminal state, with politicians under growing pressure to cater to the boomer and millenial cohorts (former needs life support, latter wants to keep having lots of babies). Watch out if the doctors organize themselves and lobby for salaries and pensions; the’ll get what they want and you’ll end up paying for it.

Father knows best and always told young, impressionable Cici: “Life ain’t fair, so you’d better buck up and get used to it!”

#171 Spock on 05.27.17 at 9:53 am

# #134 meslippery

I think you should ask your mechanic to fix your teeth also. With 30 years of experience – I am sure you will find the end result satisfactory and you will save $325 per hour.

I am sure the mechanic spent 200K+(like the dentist) on on their automobile certification and licensing not to mention the excessive cost of liability insurance and continuing education but has no business sense since charging only $100 per hour.

#172 Ace Goodheart on 05.27.17 at 9:53 am

“Hard to believe in an age when accurate info is a click or two away that people can be so dense. Must be wilful ignorance. — Garth”

They do leave loopholes. Those who are able to find them become very wealthy by selling this information to those who need it. They are called tax lawyers. There are a few of them who understand the income tax act and they do very well. Most don’t fully understand it. Try to take a tax law course at a law school and you’ll see what I mean.

Oh and both our Prime Minister and the current US president are trust fund kids……

#173 Millmech on 05.27.17 at 10:18 am

MF
If you don’t like what you make/do go learn another skill,my kids are in their mid to late twenties and make more than me (6 figure incomes)and they keep turning down work.
Coming here to complain about your poor career choices just shows how irresponsible you are,you are where you are because of the choices you made.Before you make any career/lifestyle or financial decision from now on think how it will affect you up to twenty years from now.Also seek out people who are successful in the areas you want to be successful in and emulate their actions or ask them to mentor you.Spend one hour a day learning doesn’t matter if it’s in your field of expertise or something else that interest you,watching YouTube at lunch is such a waste of time and your employers watch what you watch when they are in the lunch room with you.The people I want to move up in the company I work for have to be engage, ambitious,self reliant,and most importantly critical thinkers.
There is a lot of work out there that pays great you just have to go get it.

#174 Paul on 05.27.17 at 10:23 am

129 meslippery on 05.27.17 at 12:04 am

You sound like a small person. — Garth
————
6’3” but point is stop with all the perceived worker
benefits thats so 1980s or 90s not now.
—————————————————————–

Not so big, Tall that’s all !

#175 Penny Henny on 05.27.17 at 10:26 am

101 Another Deckchair on 05.26.17 at 10:01 pm

Actually, one thing money can’t buy is time, so my way of reducing taxes is to reduce the # of hours worked by 20% (scheduled) in the next 12 months, maybe more after that. Over 50% of our take home just gets plunked down on savings for rainy days.

The only fly in the ointment is that I *love* the work I do, and am good at it, so to stick to my 20% reduction is going to be tough.

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

So just work for less money, or for free. Problem solved

#176 Nick on 05.27.17 at 10:28 am

There’s a lot of hate in here towards those who are self employed and incorporated. It feels like the crab mentality to me. (https://en.wikipedia.org/wiki/Crab_mentality)

Does anyone know if a study has been done comparing the financial cost of those exploiting the self-employed/incorporation loopholes with the potential cost of losing those who use it legitimately?

What will it cost us if 5, 10 or 15% of all new doctors go south of the border? Or X% of small businesses close because it’s not worthwhile for them anymore?

Us vs Them mentality is a smoke screen some politicians like to employ to get their agenda through. Don’t let them.

#177 The Technical Analyst, CSTA, CPD on 05.27.17 at 10:32 am

1. Increased taxes, incorporations, ect

Even if I do not use all these benefits others are receiving, if I do not stand up to protect those benefits for them, what incentive do they have to stand up for the benefits I use?

2. Trump’s Travel Ban / Illegal Immigration.

Most Canadians just do not understand Trump, this is understandable as they have never lived in the Southern USA. If they have/did, then you get it as you have seen it and lived it. 80,000 illegal immigrants* per month into Texas affects your life in mixed ways. (*Gov’t of Texas stats, 2014)

#178 Prairieboy43 on 05.27.17 at 10:38 am

“What to do”? This is what to do. Justin no Tax for you. http://www.cbc.ca/news/canada/edmonton/edmonton-beer-stolen-160-000-police-semi-trucks-1.4133667

#179 chapter 9 on 05.27.17 at 10:55 am

#149 Trump’s Travel Ban

The justices that blocked the presidents order saying first there is no evidence showing risk in allowing aliens into the US from these terror associated country’s should have a court clerk look into the Senate Subcommittee on Immigration and National Interest which is a document of the 580 convictions of terrorists since 9/11 (380 foreign born). The information includes names of offenders, date of conviction, terror group affiliation, federal charges, sentence imposed, immigration history, state of residence. Interesting the country’s that are on the presidents travel ban, 72 terrorists are currently serving prison terms. Felony charges, possession of a machine gun, possession of explosives, money laundering, conspiracy to commit a terror attack, material support of a terrorist or terror group to name a few. And what countries did the 72 come from; Somalia 20, Yemen 19, Iraq 19, Syria 7, Iran 4, Libya 2, Sudan 1

#180 Livin Large on 05.27.17 at 10:57 am

Well, of course the Feds are declaring an all out “Spring Offensive” on the self employed. First, because the ranks of “self employed” has been growing explosively in the last 10-15 years and an enormous amount of tax revenue has been legitimately missed. Notice that I said “legitimately”. No one was cheating, those were the rules.

The problem IMO is that far too many employers have abused the “private contractor” designation to save money. It’s almost like every second sales position is now classifying themselves as “private contractors” when they are nothing more than an employee.

I am 100% behind supporting real entrepreneurship but I also make a huge distinction between someone truly starting a new business from scratch and someone who’s employer, in an effort to save money, let’s them call themselves a “private contractor” and then wash their hands of responsibility for their employee.

The rules for determining the legitimacy of “private contractor” designation are pretty clear but if both employer and employee claim their relationship to be one of contractor rather than employee then it just sails through.

Entire industries have reclassified their staff to effectively, and apparantly legitimately avoid taxes paid by employees.

Doctors and Lawyers etc are dramatically different than flooring or appliance sales reps and the risks they take when launching a new practice should be recognized and accomodated but again IMO a doctor or lawyer is simply a profession and not entrepreneurship.

I don’t have a comprehensive solution to suggest but I do know that when entire swathes of the tax base get what is essentially illegitimate benficial treatment then everyone else suffers to some extent.

T1 coined the concept and T2 is perpetuating “The Just Society” ideal so we’re stuck with this for a while yet.

Personally I don’t think a sales person working at just one location and under the control of an employer should be able to pay 1/3 less tax on their earning just by having their employer agreeing to treating them as independent contractors.

#181 Joe2.0 on 05.27.17 at 11:11 am

I wonder what that dogs in jail for.
Guess you can’t always have your cake and eat it too.

#182 crowdedelevatorfartz on 05.27.17 at 11:13 am

@#146 Complain x2

Total agreement.
The liberals can’t keep over spending the budget into greater national debt (to the tune of $21.8 billion dollars last year) without consequences.
Even with an upper middle class tax grab ….it still wont be enough.
Where will the cuts start? Well if Papa Trudeau is any indication the military is always first….

Jet purchases….delayed again or scrapped while our 40 year old F-18’s continue to break down.
Navy Frigate Program awarded to halifax? Behind schedule and over budget again…Supply ships….we dont have any left since the last one almost burnt to the water line while on naval manuvers in Hawaii, Pearl Harbour didnt want to allow it in because it was feared it would sink. Pathetic.
Tanks? personel carriers? trucks jeeps uniforms?
Sadly lacking.
But we have oodles of Admirals and Generals in Ottawa riding desks….no worries there.
Nope. Our Coast Guard/ Fisheries patrol vessels will slowly be built but still wont be enough to replace the even more numerous, ageing Coast Guard fleet built in the 60’s and 70’s.

As one independant report on Canadian Military purchases stated last year.
” Canadian Military Purchases are a classic case study on how NOT to proceed …”
Departmental bickering, political interferance, changes in leadership, on and on and on……and the prices keep going up and we have nothing to show for it.

I, like most taxpayers dont mind paying their fair share in taxes but what most Canadians seethe at is the never ending tax dollars urinated against the wall on international “touchy feely” projects which only seem to perpetuate more govt jobs in Ottawa.
The $650,000,000.00 to foster womens rights around the world being but one drop in the bucket. Really? Thats less than $.25 per woman living in poverty in all third world countries….What are we going to do? Send them posters on how to demand their rights? You’d have to teach them how to read it first….
Give the money to the Gates Foundation. It would be better spent with less waste and beaurocracy.
But our taxes will still keep going up…

No. Lets just hope that when the next Federal election comes around we are 2 years deep into a grinding recession so that we can toss “Trudeau Light” out on his ass and get back to work.

#183 MF on 05.27.17 at 11:16 am

#172 Millmech on 05.27.17 at 10:18 am

Hey I appreciate the advice, but my salary is actually fine and my savings are too.

On an internet forum where everyone posts lies I post some reality and people get upset. No worries. As someone who has grown up with MySpace, Facebook, MSN, icq etc. I am aware 90% of info posted online is false. It just is.

Anyways, the “complaints” I posted here are in regards to my rising rent. Rising rent is something that is seldomly mentioned here when discussing the advantages of renting vs owning. It’s frustrating for lots of people to hear that but again, it’s our reality.

MF

#184 I resemble this on 05.27.17 at 11:21 am

To the envious small-minds, the Corporate instruments are there for all. I make $250k+ / year selling software I invented myself (mostly in my pyjamas and without post-secondary education) to customers all over the world. I took the risk to forge my own company and you can too if you have the courage and knowledge.

If you don’t, then go get yourself on the payroll for a company that does.

#185 Contrarian Coyote on 05.27.17 at 11:27 am

I would definitely recommend every Canadian spend an extended amount of time abroad. While abroad, don’t listen to the news and media and other Maslow-inspired fear hacks. Get out of the bubble for your own sanity and happiness.

Although I’m back in Canada now, I spent a decade in East Asia and only focused on things I could actually control like my job, savings, and investments. I never paid attention to threats from the DPRK, US-China tensions, etc. Definitely an antidote for many in the current malaise.

I’m genuinely fascinated by some comments over the past 6 months re: US politics, Trump and Vancouver & GTA real estate envy. It reminds me of a flock of Canada Geese I saw resting next to the road between Lakefield & Peterborough. Constantly making noise and doing very little to change their situation other than making noise.

Luckily, there are still many quality posters here who provide a wealth of information for free, the blog host most of all. Sadly there’s a lot of noise and goose crap most of us have to step around to get to the good stuff. But I guess that’s what makes it the good stuff. To those who comment with sincerity with quality info: thanks!

#186 NoName on 05.27.17 at 11:44 am

I was listening freaksonomicks podcast who is more generous rich or poor,

http://freakonomics.com/podcast/rich-less-generous-than-poor/

that i stumbled on this, interesting read.

http://www.seattletimes.com/seattle-news/health/study-iq-drops-with-worries-over-money/

#187 MDawg on 05.27.17 at 11:44 am

If the capital gains inclusion rate were to change, when would they announce it – at the Feb/Mar 2018 budget or sometime sooner?

#188 JT on 05.27.17 at 11:59 am

If Morneau is really concerned with “fairness”, he would also be attacking defined benefit pension plans:

https://www.theglobeandmail.com/report-on-business/rob-commentary/tax-benefits-of-differing-retirement-plans-should-be-equitable/article27583082/

#189 jess on 05.27.17 at 12:05 pm

When independent traders in a small Welsh town discovered the loopholes used by multinational giants to avoid paying UK tax, they didn’t just get mad.

Now local businesses in Crickhowell are turning the tables on the likes of Google and Starbucks by employing the same accountancy practices used by the world’s biggest companies, to move their entire town “offshore”.

http://www.independent.co.uk/news/uk/crickhowell-welsh-town-moves-offshore-to-avoid-tax-on-local-business-a6728971.html

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

These are just a few examples of the many:

” In the schemes, employers paid a salary to an offshore intermediary, which takes a commission, before paying this money to the worker in the form of a tax-free loan. They paid as little as 5pc in tax, with the rest pocketed by the company.

HMRC now says it regards contractor loan arrangements as being “particularly aggressive”.

And it is easy to catch the freelancers who used these companies because they disclosed it on their tax returns, with a “Disclosure of tax avoidance scheme” or “Dotas” number.

https://www.theguardian.com/politics/2016/nov/15/temp-agency-tax-avoidance-scheme-national-insurance

https://www.theguardian.com/business/2016/nov/23/tax-avoidance-loophole-temp-recruitment-contrived-scheme-philip-hammond

http://www.telegraph.co.uk/finance/personalfinance/tax/11865618/HMRC-uses-new-powers-on-contractors-I-was-told-to-pay-30000-within-90-days.html

https://thetyee.ca/News/2017/01/07/Liberals-Killed-Promise-Close-Loophole/

stock options pressured from the lobbyists
https://www.pressprogress.ca/bay_street_pressured_liberals_to_break_promise_to_close_ceo_tax_loophole_documents_show

http://www.taxpolicycenter.org/briefing-book/what-carried-interest-and-how-should-it-be-taxed
===================

https://democrats-financialservices.house.gov/uploadedfiles/ltr_fsc_to_john_cryan_deutsche_bank_mirror_trade_and_trump_accounts_5.23.17.pdf

=========

Tax avoidance: Canada-Barbados tax deal loopholes revealed – CBC.ca
http://www.cbc.ca/…/tax-avoidance-canada-barbados-tax-deal-loopholes-revealed-1.19132...
Oct 7, 2013 – After reviewing the hidden camera footage, the former Canadian offshore banker said, “We’re going to have a pretense of developing your

#190 this may be what happens on 05.27.17 at 12:10 pm

This may be what happens when the president of the United States legitimizes xenophobia, racism and anti-Islam sentiment. — Garth

Who legitimizes the whatever label(s) you want to pick to describe the murders in Paris, Manchester and shooting 29 dead in Egypt yesterday?

#191 InvestorsFriend on 05.27.17 at 12:14 pm

Disagree with Gary

We will pay Capital Gains tax on whatever we cash out at a 50% rate. This is on top of the income tax we paid on the original income that we saved and invested. How many times and how much tax are we supposed to pay tax on this money?

**********************************
Capital gains at 50%? He means at half the rate paid on employment income! He gets half off on his tax rate and still complains!

How many times tax should paid on money saved? Exactly one time on every dollar of income earned. Seems fair.

The notion that tax should not be paid on investment income made from after tax dollars is completely ludicrous. It would mean no taxes on the billions earned on retailed earnings in corporations. What other kind of money do people have besides after-tax dollars? (RRSPs aside which are taxed later)

#192 economictsunami on 05.27.17 at 12:18 pm

So Mr Morneau, how is Revenue Canada progressing on the files generated by the release of the Panama Papers?

Tax fairness?

Let’s start by plugging the holes that individual and corporate tax dodgers use to hide their illegal activity and go after revenue owed to the Government of Canada.

Maybe even put a couple in jail and then see how proper, voluntary compliance rises?…

https://panamapapers.icij.org/

#193 Bobby13 on 05.27.17 at 12:36 pm

19 paully you’re right on track, if that was done right we could also rid CRA. 6 Mike nope you don’t get it. If you make corps the same as employee the corps will move out of country to a tax haven and no tax will come in. You are probably in favour of multinationals taking over all aspects of Canadian living. Personally if the small businesses are heavily attacked I will drop my citizenship and incorporate in a zero tax location. I will also have no problem paying for better medical elsewhere should I need it.
Thanks Garth for this post great work.

#194 SunShowers on 05.27.17 at 12:44 pm

#137 Long-Time Lurker on 05.27.17 at 12:42 am
Entrepreneurs create businesses and jobs.

No they don’t.
Name a single entrepreneur who can successfully create a job or run a business without a customer base who can afford to buy their products or services.

#195 CanadianOne on 05.27.17 at 12:50 pm

Blogdogs,

I don’t know if the link below has to do a whole lot with today’s post in terms of relevance….. but nonetheless resonates with Mr. Turner’s position. Informative.

http://www.morningstar.in/posts/40627/do-stocks-really-outperform-debt.aspx

M39AB

#196 BS on 05.27.17 at 12:57 pm

A Dollar is a Dollar is a Dollar on 05.27.17 at 8:14 am

Does the ex CEO *for only 3 years!!!!* of a now failing company deserve to get 51 million dollars, taxed at the much lower level of stock options?

The ex CEO will probably pay $13 million in income tax on that. That is not enough for you? How much did you pay over those 3 years?

If a “dollar is a dollar” there would be no progressive taxation.

#197 Trumpocalypse2017 on 05.27.17 at 1:01 pm

Trump coming back today, must face his critics again. GOP falling apart in front of him. Greece and Italy about to explode in debt. Don’t be fooled by the appearance of calm – it’s not real.

I’m hosting another 4:20 preparedness meetup today at Belfountain. In the parking lot, then we’ll go in for some ice cream.

Look for me in dark blue shorts. Password is “Bandit”.

Much to share.

#198 45north on 05.27.17 at 1:30 pm

Bill Morneau: Now, your neighbour owns a private corporation and sprinkles that same amount between themselves, their spouse and their adult child.

“your neighbour” is a singular noun, it takes a singular pronoun – he or she.

So what is Bill Morneau going to do with the extra money he collects? One of the things is to build “super clusters”:

Ottawa unveils plans for $950 million innovation ‘supercluster’ spending announced in budget

Read more: http://www.itworldcanada.com/article/ottawa-unveils-plans-for-innovation-supercluster-spending-announced-in-budget/393437#ixzz4iIi1WvMp
or visit http://www.itworldcanada.com for more Canadian IT News

Now the Department of Innovation, Science, and Economic Development is not Shared Services Canada. At least I hope it isn’t because Shared Services Canada is a mess. It was supposed to save money through centralization but it hasn’t and won’t. It is soaking up $1.4 billion. A year. With no end in sight.

At the same time billions of dollars of real estate transactions are about to come to a stop in the Greater Toronto Area.

It seems we are entering interesting times.

#199 Livin Large on 05.27.17 at 1:37 pm

I’m going with SunShowers in the job creation. Entrepreneurs only create “jobs” when all else fails. They don’t want to create jobs for other folks. They are, and rightly so, only interested in their own personal wealth accumulation.

They aren’t altruistic saints trying to save mankind. They are just out to make a freakin’ buck. Let’s stop making it sound like sunshine flows out of their butts.

Make a buck, don’t make a buck, I couldn’t care much less than I aleady do but don’t call yourself an entrepreneur when you are simply “business for self”. Hanging out a dry walling shingle because no one wants to put on staff as a drywaller isn’t worthy of much support.

By 2030 it is rumoured that over half the jobs in Canada will be classed as “private contractor” jobs. This slashes employer expenses and slashes employee taxes payable with absolutely zero change in the nature of the work performed. Same work, lower taxes or “freelance welfare”.

#200 A Reply to #178 chapter 9 on 05.27.17 at 1:51 pm

“Interesting [that of] the countr[ies] that are on the president[‘]s travel ban, 72 terrorists are currently serving prison terms…. And what countries did the 72 come from[?] Somalia 20, Yemen 19, Iraq 19, Syria 7, Iran 4, Libya 2, Sudan 1.”

I don’t know where you’re getting your figures, but according to the Miami Herald there were only 41 detainees at Guantanamo Bay on Jan. 19, 2017.

http://www.miamiherald.com/news/nation-world/world/americas/guantanamo/article127473314.html

https://www.documentcloud.org/documents/3382020-Obama-on-Guantanamo-to-Congress.html

Explain to me using some semblance of logic why Iran, Somalia, Sudan, Yemen, Syria and Libya are included in the travel ban, but Saudi Arabia is excluded. Explain also why Iraq was included in the original travel ban, but is now excluded.

Are you saying that none of the enemy combatants held at Guantanamo Bay were Saudis, that none of the 9/11 hijackers were Saudis, and that Donny Trump did not just sign a $110 billion arms deal with Saudi Arabia, a known state sponsor of terrorism?

Explain to me why this revised ban isn’t just a blatant violation of the First Amendment to the U.S. Constitution.

http://www.newyorker.com/news/amy-davidson/trumps-travel-ban-drips-with-intolerance-on-its-way-to-the-supreme-court

https://www.nytimes.com/2017/05/25/us/politics/trump-travel-ban-blocked.html?_r=0

#201 MF on 05.27.17 at 1:56 pm

#191 Bobby13 on 05.27.17 at 12:36 pm

Feel free, but remember these zero tax jurisdictions usually mean:

-Infrastructure issues
-safety/security issues
-corruption
-locals with less purchasing power

MF

#202 Fortune500 on 05.27.17 at 2:12 pm

I’m just going to leave this here …

http://business.financialpost.com/fp-comment/dear-mr-morneau-its-time-to-step-in-and-save-home-capital

#203 M on 05.27.17 at 2:18 pm

HCG is propped up slowly.
Can anyone explain to me why would someone commit suicide by propping up those losers when they only have 110million left out of 2 billion taken from the pension funds ?
Would that be…because for the financial system would be suicide NOT to prop those losers out ?

…and if THIS is the case… the bright shiny canadian banks are already filling the papers to be bailed out.

CIBC stock going to 5 $ ? I don’t think is too fat fetched.

#204 A Reply to #189 InvestorsFriend on 05.27.17 at 3:15 pm

“The notion that tax should not be paid on investment income made from after tax dollars is completely ludicrous.”

What about capital gains that are partially (or entirely) attributable to inflation? Should we not be adjusting for tax purposes the adjusted cost base of a capital asset using real (rather than nominal) dollars? Is this a ludicrous proposal?

What kind of money do people have besides after-tax dollars (RRSPs aside which are taxed later)?”

They have gross income, which is pretax dollars. (You asked.)

#205 Tony on 05.27.17 at 3:30 pm

Re: #200 Fortune500 on 05.27.17 at 2:12 pm

Maybe Bill will also get letters from the short sellers to let Home Capital go bankrupt.

#206 Tom on 05.27.17 at 4:18 pm

@Mike

People who are self employed take immense risk, it takes money to run a business. As an employee you take no risk, starting a business is not easy and you have a lot on the line, which you don’t as an employee.

Why shouldn’t a business be allowed to decuct their employee’s salaries as expenses?

#207 Trumpocalypse2017 on 05.27.17 at 4:20 pm

I’m here, two blog dogs already joining me. Preparedness meeting starting in minutes. The ice cream is delicious.

#208 yorkville renter on 05.27.17 at 4:48 pm

#200 – I saw that, but stopped reading after the writers said they own HCG stock… pathetic.

#209 GAV on 05.27.17 at 4:50 pm

Time for Western Canada independence.

Free the West.

#210 Freebird on 05.27.17 at 5:58 pm

Gary never collected a dime of EI. Why?
Because the self-employed/ business owners CAN’T.
Even if youre inc and take a salary. We know.

This is the first thing I point out to those who think being self-employed is an easy path to freedom and riches. Without a social parachute I say…so plan well and learn to fly! As Gary and the rest of us crazies know well to make it on your own takes hard work and sacrifice esp in the first few years, and maybe a bit of luck. True for the employed also BUT there’s usually EI and or severance pay. It’s also harder to get credit for a mortgage, car loan etc. and CRA has made it harder to claim many home business related expenses. We have both home and ‘real’ office. These new rules are frustrating. We have a win win with a staff of 20 who (we think) like their jobs and keep us running. It’s only going to get harder for those who want to give a try younger and older to justify what’s needed to be successful when it looks like you’ll be penalized for just that. Really bad.

#211 Willy H on 05.27.17 at 9:36 pm

“Morneau cloaks everything in the syrupy mantra of ‘middle class fairness’ but these are desperate actions from a government mired in deficits and over-spending.”

With all due respect Garth I am not so sure that Minister Morneau “cloaking” anything. His first example really hit home for me.

I recall the owner of a very successful machine shop paying his daughter $100K+ to sweep up metal shavings and run errands. This was 20 years ago! She made more than the machinists!

I will agree with you about one thing. Politicians that claim they can bring back the middle class from the dead are wasting their time. The middle class was an unsustainable post-WWII phenomena and we are currently experiencing the renaissance of a class-ridden society (haves and have-nots). Fiddling with the Tax Act will not resuscitate the middle class.

#212 crowdedelevatorfartz on 05.27.17 at 11:44 pm

@#207 Trumpocalypse2017

The day I am forced to watch you lick an ice cream cone…..is the day AFTER armageddon and I’m duct taped to a chair in your bunker…..

#213 diharv on 05.28.17 at 1:56 pm

Passive investment income generated inside a PC is taxed at the highest possible rate so I don’t know what the beef is there. Retained earnings held inside a PC have already been taxed at the corporate rate and will be taxed again when taken out as dividends . It all works out in the wash in the end the same as if an individual took it all out in salary . This massive “advantage” that the idiot in charge of finance claims is smoke and mirrors . He’s intentionally trying to gain regular joe middle class support by by stirring the pot and stoking public sentiment against incorporated individuals. I’m a single shareholder in my corp . I don’t income split . my wife earns a reasonable salary working for me , I pay corporate and personal taxes , and I create jobs . I reinvest what I need to to keep the business current and profitable . The rest is my retirement vehicle . why the hate ? If he wants to change anything then change the corporate structure which allows all the invest , hold. trusts , and every single family member to be a shareholder in an entity . I briefly considered corporate restructuring but deemed it too complicated and not worth the hassle and an accounting nightmare once per year.

#214 diharv on 05.28.17 at 1:58 pm

I meant that the corporate structure which allows investco , holdco ,and family trusts needs to be revamped.

#215 X on 05.29.17 at 12:39 pm

re #28 ‘Professional corporations are abusing the tax system. They should be treated as any other employee because they don’t take any risk. Tax these milk cows for once!’

Yep, no risk in rent, supplies, financing for equipment or responsibility for employees.

As per the comments above, many have never run a business, and grossly underestimate the risk involved.

As per the OP….

A higher tax rate for investments within the corporation would make it a little more difficult for some companies to ‘save’ through investments and purchase equipment, etc.