Embarrassing

Poor Bill. Hung out to dry by his prime minister and bestie. Bet he wishes he’d stayed at home in his $5 million house in tony Bennington Heights, earning seven figures running his dad’s company. But, no, he had to go into politics – where he’s being used up, day after unrelenting day.

The finance minister faced another hostile room yesterday, this one in Nova Scotia where there are more people than jobs and 75% of doctors (not enough of them, either) are incorporated because they basically have to. So federal proposals to seriously increase the tax burden on the self-employed because ‘wealthy people have to pay their fair share’ were met with eye rolls and derision. In parts of the country were rich people are rare (almost all of it) and families would benefit from more job opportunities, whacking small businesses seems strange indeed.

Recall that the proposed changes – disallowing spouses from sharing earned income even though they’re both corporate owners and investors, plus raising taxes on retained earnings to as much as 73% – are not law. Yet. We’re in a 75-day consultation period that ends a week Monday. In the meantime people who know tax law (like accounting firms) or what’s good for the economy (manufacturers, exporters, labour unions, farmers, small biz operators) are apoplectic.

Over two million small businesses and households will be affected by this. Yes, some are fancy doctors and lawyers. Some are plumbers, IT guys and Uber drivers. Seven in ten earn less than $200,000. Collectively they run businesses employing an estimated  half of the 18.4 million Canadians who work. Overwhelmingly the people Morneau is about to squish are members of the middle class.

Well, as mentioned, he’s being used up. And knows it. The ‘consultation period’ is not only absurdly short, plus crassly staged during summer when you were fishing and MPs went home, but it’s a sham. The new rules are set. The enabling legislation has been drafted. The prime minister has admitted it. T2 doesn’t actually care what anyone thinks, according to remarks he gave at the UN this week.

“We raised taxes on the wealthiest one per cent so that we could lower them for the middle class and we’re continuing to look for ways to make our tax system more fair. Right now, we have a system that encourages wealthy Canadians to use private corporations to pay a lower tax rate than middle class Canadians. That’s not fair and we’re going to fix it.”

This is false, of course. The two million small businesses to be drop-kicked are not owned by 1%ers, since 90% of them don’t earn enough to qualify, nor do they have sufficient assets. Moreover, they’ve being playing by rules in place for decades. They’re not tax cheats. Legislated Tax Act provisions are not loopholes. And lower tax rates for people who risk capital to employ others (the vast bulk of the people T2 will brutalize) are a big reason they take risk. Otherwise, we’d all just loop along and work for corporate giants and government.

Anyway, the prime minister didn’t tell the UN that Canada’s consulting about making major changes to the tax code. “We’re going to fix it,” he said. That was clear. So much for what people think.

One irony is that Justin Trudeau is a millionaire thanks to money he inherited from his famous father. The funds have been tax-sheltered in various numbered companies and trusts. He will not be impacted by these changes, although he’s rich.

The interesting point is that Pierre Trudeau also inherited much of what he passed along to his now-PM son. And where did that wealth come from?

Yes, his father.

 Charles-Émile “Charley” Trudeau was a small business dude. A gas station grunt. He built a network of 30 locations around Montreal and started a loyalty program that encouraged 15,000 people to be gassing up regularly by 1932. He eventually sold the business for big bucks to an oil company, then invested the proceeds in mining companies and a baseball team (the Royals). He died prematurely, and the family fortune passed on to Pierre. Then to Justin.

Imagine. Gas station money. Now sheltered from tax in the accounts of a man his grandfather would hate, but who gladly took it.

 

259 comments ↓

#1 Party on Garth on 09.22.17 at 6:20 pm

The borrowing and spending binge by Canadian households, businesses and governments (all levels) continues unabated. Growing the debt in the economy significantly faster than the economy itself grows seems to have developed into a way of life in Canada.

Canadian total (household, business, and all levels of government) debt numbers as of the end of June, 2017

https://owecanada.blogspot.ca/2017/09/canadian-total-household-business-and_19.html

#2 Bitcoinnaire on 09.22.17 at 6:26 pm

Thank goodness my assets are decentralized and government can’t get to my Bitcoin or really even gauge how much I own (for taxation schedules) no matter how hard they try to scrape the bottom of the barrel for extra revenue.

And they’re increasingly desperate it seems.

#3 Prophecy on 09.22.17 at 6:26 pm

Thy leader of feminist nations weep in peril
for the opposite of what thy claim
As they uncover thy truth like thy nakedness
eventually pile up like a mountain of gold in the River Euphrates
Oh thou art claimed that you are penniless and need mercy?
Why art thou bold and naked to bear false witness on our land?
Don’t you see that thy biggest oppressors allege that they are the biggest victims?
She weeps in a private jet while the rest of nations ride donkeys.
Why hast not embrace generosity with your riches
like you tell the people of the nation to share their earnings which is a pittance compared to thy wealth?

#4 Vancouver Brit on 09.22.17 at 6:27 pm

The question for me is whether or not income splitting is a loophole or if it was intended to be allowed in the initial legislation. If it’s a loophole simply being closed there’s no point complaining, they should be thankful they got away with it for so long and move on.

How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth

#5 KS in Calgary on 09.22.17 at 6:27 pm

Excellent article. Glad someone else picked up the ‘brag’ to the UN that T2’s happily turning our country into a welfare state.

#6 Screwed Canadian Millenial on 09.22.17 at 6:32 pm

Garth don’t get mad but it seems to me your numbers are off. They didn’t sound right to me and I looked them up.

“Collectively they run businesses employing an estimated 15 million people – about half of the 29.5 million Canadians over 15 who work.”

The total numbers of all employees in the country is 15.6 million.

https://www.statcan.gc.ca/daily-quotidien/170908/t002a-eng.htm

With another 2.8 million self-employed.

Nowhere near the 29 million you cited.

I don’t know the breakdown of how many of that 15.6 million work for small businesses but there’s no way it’s 100% of them.

And yes, to those who are wondering why we only have 18.4 million workers (20% part timers btw) out of a country of 37 million, I too agree that is a serious problem. Of course there are children and old people out of the labour force but the point is that there is no labour shortage and there is far more slack in the labour force than people seem to think. Too many people, not enough jobs, terrible wages.

Anyways Garth just wanted to point that out, that’s all.

As for all the other stuff, the weather is far too nice in Toronto right now to be fighting with boomers all night on this (formerly) pathetic blog. Oh how I wish this weather would hold all year long but I’ll catch you GIMMEs next week. I hear they got snow in Edmonton. A frightening thought.

#7 kommykim on 09.22.17 at 6:33 pm

Now if only the government of the day had taxed the heck out of Charley” Trudeau, then we never would have had T1 or T2 for CONs to complain about.

#8 Terry on 09.22.17 at 6:34 pm

Yah, and you don’t shelter any of the money you make for dishing out mediocre financial advice?

#9 Screwed Canadian Millenial on 09.22.17 at 6:37 pm

Last thing. Did anyone alert the CBSA that Smoking Man is re-entering the country? Did he really drive himself to all those places in the States? How was he not detained on national security concerns?

#10 Screwed Canadian Millenial on 09.22.17 at 6:40 pm

Another CANSIM with an easier breakdown if anyone is curious.

http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=2820089&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

#11 TheSpangler on 09.22.17 at 6:40 pm

Funny they went after CCPCs but not any trust stuff.

#12 Robert Daisley on 09.22.17 at 6:41 pm

Garth, how about doing a case study (or a few) to illustrate how the changes will impact a small business? That might help people to understand the facts and make in informed decision about where they stand.

#13 MF on 09.22.17 at 6:43 pm

Embarrassing is right.

My parents loved his father but cannot stand him.

When he speaks it’s legit cringeworthy.

Much like the UN itself, his speech was a joke. I’m sure all the socialist banana republics and dictator states loved it though.

Just fast forward his garbage and watch Trump spell it out to that useless organization of anti western idiots called the “UN”.

MF

#14 Dan.t on 09.22.17 at 6:43 pm

A drama teacher trust fund puppet- he is running a county so what can you say. I guess it simply speaks volumes about voters. Canadians voted this guy in or is that not what happened?

Why can’t there be 2-3 parties having a say in how to run a country, oh right he vetoed that idea too. No biggie, as long as house prices stay high Canadians are happy. Who cares about the rest.

#15 I'm stupid on 09.22.17 at 6:43 pm

#4 Vancouver Brit

Let me tell you about my brother… he works 60 hours a week running a small business he makes about 160k a year. His wife doesn’t work because their wouldn’t be time for the kids plus who would take care of the household. If it’s a family unit, no prenup, no separate bank accounts etc etc why shouldn’t they be able to split the income?

If you had two earners making 80k their take home pay is more but the household income is the same. How is that fair? Both household would reside in the middle class but one is deemed to be rich and pay far more taxes.

#16 Damifino on 09.22.17 at 6:45 pm

My father detested P.E.T. and I didn’t understand why. I’m now older than he was when he passed away.

It’s clear to me now, Dad.

Sorry I was such an ignorant putz. Forgive me.

#17 Alex k on 09.22.17 at 6:46 pm

#2 Bitcoinnaire
Government doesn’t care about your idiotic bitcoins- they’re worthless (smart people made their money and left ) idiots like you and there are many think they discovered America

#18 Flatlander on 09.22.17 at 6:47 pm

Interesting history of the T family fortune. I’m sure Charley is turning in the grave.

#19 Debtslavecreator on 09.22.17 at 6:47 pm

Right in Garth. I see a lot of BFS applications and I can tell you are spot on. Most cheating are a similar profile – sales are 100-400K but net profit almost always under 10k and they usually take no more than 20-30K per year in salary
As if you are going to live in TO on 20-30K year with a 1.2 m house
So these new proposals will do nothing to address this and will complicate taxes and enforcement costs will far exceed whatever pennies they get
Hot off the press from the lending world:
I know RBC and BNS have declined a large number of apps that 1 year ago would be slam dunk
My BM and broker contacts have confirmed that banks are declining almost everything that does not fit the GDS AT 4.84 which of course is today’s BofC qualifying rate
One of my colleagues (a lender too)with a clean app and 50% LTV got declined
The story is that the B20 is already being effectively implemented by at least 2 banks that I know of
If this continues it is lights out RE market and CAD economy 3-6 months out
I can’t stress how major this is

#20 Doug t on 09.22.17 at 6:48 pm

The casino has always been rigged – the “real” wealthy don’t take a hit – puppets spew their rhetoric to an apathetic canadian audience and the wheel keeps on spinning – accept it people your all mice and just hope for a little cheese – nothing changes – move along.

RATM

#21 JustMe on 09.22.17 at 6:48 pm

“From each according to his ability, to each according to his need”

That sounds good in theory. What could possibly go wrong?

https://en.wikipedia.org/wiki/From_each_according_to_his_ability,_to_each_according_to_his_needs

#22 Ian on 09.22.17 at 6:49 pm

Reminds me of that article in Walrus years ago talking about how the Liberals tried to say Paul Martin was a ‘great businessman’, when he too inherited his dad’s company because his dad was trying to become Prime Minister.

All we can do is to continue to create a roar and hope it hurts them. These proposals are ridiculous and will kill my business. I would have hired two people potentially, but if they’re going to tax retained earnings then forget it.

#23 Mark on 09.22.17 at 6:49 pm

“The question for me is whether or not income splitting is a loophole or if it was intended to be allowed in the initial legislation. If it’s a loophole simply being closed there’s no point complaining, they should be thankful they got away with it for so long and move on.

Income sprinkling is illegal, and always was illegal. A very basic principle of the tax system is that dealings between related entities must be recorded, for tax purposes, at fair market value. Income sprinkling schemas that involve, for instance, paying family members more than fair market value for their work have always been, under past and present tax law, subject to the risk of denial by the CRA.

Schemas that involve allowing a professional corporation to reap an excess amount of retained earnings by paying its employee, particularly the “owner”, less than fair market value as a ‘salary’, thus causing for excessive return to the equity of the business (which can definitely be split between multiple shareholders) are also subject to theoretical denial by the CRA under current tax law.

The problem here is that the CRA has been unable to really enforce the rules and basic principles of tax law because its just way too complicated and expensive. The CRA may deny deductibility of an outsized salary paid to a non or minimally contributing family member as a particularly egregious case of income sprinkling. There are literally millions of small businesses, and the CRA’s ability to run a dragnet to audit and test the affairs of every literally every taxable corporation is minimal. Hence, the proposed legislative changes are necessary to ensure compliance.

Changing and clarifying the rules in black and white also helps business owners reduce their risk of being audited and having such arrangements denied by the CRA. The tax planning community, despite the hysterics in the media, would much rather have a clear set of rules instead of being forced to tell their clients that there is a possibility that an arrangement, even a particularly aggressive tax planning arrangement, has a risk, even if small, of denial by the CRA. Most Canadian business owners, including professional corporations, want to obey the law and want to be fully and highly ethical, so the clearer the rules are with respect to dealing with related entities and valuing transactions (including those of labour) at fair market value, especially in the small business, the better off business will be.

#24 rainclouds on 09.22.17 at 6:51 pm

Visiting the east coast.

Today the emergency unit at the general hospital in Montague PEI was closed

” No Dr available ”

It’s started…..

#25 Vancouver Brit on 09.22.17 at 6:54 pm

How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth
____________________________________
It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used. One spouse shouldn’t be able to give their income to their partner to lower their overall tax. Sure, they take on more risk by being a business owner and they deserve a break in some way for that. Income splitting shouldn’t be that break.

#26 Ray Skunk on 09.22.17 at 6:55 pm

– In Ontario, doctors were cut a deal a few years ago that in lieu of increased payments, they could incorporate and make their “raise” that way. Now it’s being taken away with nothing to compensate for it.

– The “consultation period” is an utter sham. “Evidence-based decision making”, as promised in the election, is a farce.

– The money obtained from this is a drop in the ocean compared to what’s been given away and/or squandered on absolutely nothing. $11.7bn deficit – where are the capital investments to show for it?

– “Trust fund” Trudeau and “billionaire-in-waiting” Morneau enjoy tax sheltering, as allowed by the rules and sometimes not (Google a certain set of papers that were in the news last year). When questioned, they claim that “it’s OK – we’re following the rules”. So are small businesses and doctors. But apparently, when discussing small business, but it’s not “fair”. So, ask the question of our entitled leaders and they won’t talk fairness – just refer you to the fact they’re sheltering their wealth “legally”. The absolute pinnacle of Liberal hypocrisy – and my, aren’t there many examples to choose from.

An absolute, complete and utter disgrace of a government.

#27 Bob on 09.22.17 at 6:56 pm

How anyone could be surprised by T2’s hypocrisy is beyond me….his father was the same way but with more gravitas.

You get what you vote for. Suck it up boys and girls or do something about it the next federal election.

#28 Justin's on 09.22.17 at 6:57 pm

grandfather is rolling in his grave.

oh the irony

#29 Linda on 09.22.17 at 6:57 pm

‘Loophole’ – when someone believes that someone else is getting something they can’t get – unless they take the same risks. That is apparently the new definition in this upcoming tax change debate.

Regardless of the mores, the bottom line is simply this – the first wave of tax reform/changes to target the 1% while giving ‘middle-class’ a tax break did not (as stated by this very blog) generate enough tax dollars to replace what was given. So back to the well they go & the intent it to raise those tax revenues back to at least what they were before the first bit of tax meddling began. Covering over the fact they have to take back what they gave in the name of ‘fairness’. Yep, ‘we’ are not taking back what we shouldn’t have given in the first place, folks – no, no, it is those evil tax evaders who are the reason you & yours may be on pogey one day soon….. Because you know, if the small business owner goes belly up, so too do the jobs. Or is the next move to force the bankrupt former employer to continue to pay the former employees, because hey, EI only lasts for so long. And it isn’t fair they lost their jobs, now is it?

#30 Geoff on 09.22.17 at 7:00 pm

This is from a tax lawyer with an incorporated doc for a wife. It spells out the effects of the changes with out flourish.

https://docs.google.com/document/d/e/2PACX-1vTmj7ZYs8tTpLsFa8eGMDKsbnhwNsvzbFgxtb5eEdPBCY0PLNq4RiAt13evqotKDQ4kMxQeKbQGS6T6/pub

#31 Steve on 09.22.17 at 7:01 pm

We are suppose to be “1%”er’s based on income. Yes, we are both millennials, hard working, and very well educated (Doctor in Med and MSc in engineering). We don’t feel rich by any means. We live frugal, save and invest money and rent because we can’t afford to buy without becoming debt slaves (> 3 mill. house prices). I’m all for tax fairness and I’m not sure the changes for the corporation are bad. I do think our Canadian tax system is bad and it will get worse. It puts too much tax burden on people. Young families (1 – 2 kids) with good education and earnings between 100K – 400K before tax. We pay more taxes than back in Europe and Asia but have less benefits.

Taxes are important to pay for all the services a government provides. But we expect a government to be frugal as the businesses and people in the country itself. The government spends our hard earned money and we have a right to make sure that “waste” is minimal. How about lowering spending, make housing and day-to-day needs (e.g. ICBC is just crazy in BC) more affordable. In my point of view, if I’m in the highest tax bracket and pay the highest rate in tax per earned dollars, you shouldn’t deny services like child benefit for us when my wife doesn’t work after birth and she decides to stay home.

How about closing these tax benefits for cooperations and lower taxes, allowing deductions for e.g. families for all people including doctors? How about allowing income splitting with spouses for everybody?

Lower taxes, better affordability and equal tax system sounds more fair to me than what is going on right now…

#32 Brian on 09.22.17 at 7:02 pm

Garth – you will probably delete this as you are on a crusade about taxes and T2. I make well above average income and pay taxes – I don’t like it but such is life eh?

Complaining about taxes in Canada is a bit of a joke – go live in the 3rd world for a while and see what passes for ‘government services’ then come back. Then you have the right to complain. Otherwise it looks kinda silly.

Not to say that T2 and crew should not be pressured to use tax $$ efficiently and sensibly.

#33 good grief on 09.22.17 at 7:03 pm

It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used. One spouse shouldn’t be able to give their income to their partner to lower their overall tax. Sure, they take on more risk by being a business owner and they deserve a break in some way for that. Income splitting shouldn’t be that break.
……………

worthy of a repeat

‘It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used’

LOL. Where do these come from?

………….

#34 Spock on 09.22.17 at 7:04 pm

T2’s message is clear: We are open to consultation (for compliance purposes) but we will not back down.

So much for fairness.

#35 Bob on 09.22.17 at 7:05 pm

For those of you who think a dollar earned by an employee is the same as a dollar earned by a business owner, let me show you why it isn’t, and why tax implications have consequences.

As an employee, you can enter a game for free.
heads you win $1, tails you lose $0. your expected value is $0.50.

As a business owner, you have to pay $1 to play.
Why would you do this if you only expect to get $0.50? You wouldn’t.
So, you break even when
heads you win $2, tails you lose $0 – expected value = $1

To be the same as the employee, you actually need odds like this
heads you win $3, tails you lose $0 – expected value $1.50

But here’s the thing. Mr Trudeau thinks the business owner made $1.50, which is 3x more than the employee, and therefore, they must pay substantially more tax. That’s wrong logic, as it doesn’t account for risk, unpaid hours, lack of benefits, etc. etc.

But these are the known legal rules that businesses make their decision. They need the $3 heads you win odds to succeed. If you have a huge tax grab, then the business is no longer viable.

So what will happen? The business owners will will demand higher fees (doctor’s will negotiate hard with the provinces), or they will stop playing the game (lay people off, work less, move out of the country).

#36 Spock on 09.22.17 at 7:05 pm

I think it would be nice if unions have to pay taxes on their income.

Fairness indeed.

#37 Willy H on 09.22.17 at 7:09 pm

Seven in ten earn less than $200,000. Collectively they run businesses employing an estimated 15 million people – about half of the 29.5 million Canadians over 15 who work. Overwhelmingly the people Morneau is about to squish are members of the middle class.
___ ___ ___ ___

Most of these folks are not going to be affected because they aren’t employing the tax avoidance strategies that are being targeted. The vast majority earn around $65K. They aren’t income sprinkling, dealing with capital gains or passive investment income. I would guess the most of the folks utilizing these strategies have revenues or incomes well over $500K per year.

If T2’s inheritance is to be dragged into this debacle … What about children of small-medium sized business owner’s that inherit profitable and stable business’s from their parents without taking on any risk … are they entitled to benefit from the targeted tax avoidance for life?

#38 kommykim on 09.22.17 at 7:12 pm

How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth

It IS a loophole when the so called “share holder” has neither paid for, nor earned, those shares.

You mean like inheriting trust money you didn’t work for? — Garth

#39 FOUR FINGERS WATSON on 09.22.17 at 7:12 pm

When u elect a clown u get a circus. Why is anyone surprised ?

#40 Keith in Calgary on 09.22.17 at 7:14 pm

If you are saying that paying someone for a job they never did is not cheating, I am at a loss for words.

——————————

I am still waiting for someone to say that they went into business for themselves to make exactly the same amount of money that they did as an employee.

Anyone ???? LOL !!!!

All the whining is still the same, “we’re not cheating, we take risks, we deserve better because we’re special”. ROTFLMAO !!! You went into business to make a pile of money……..4-5-100 times more than you did as an employee. It isn’t going to kill you to pay your fare share of taxes. And while you are at it, maybe your granny can shovel my snow for $15 an hour……..cash of course.

#41 JustMe on 09.22.17 at 7:14 pm

How Excessive Government Killed Ancient Rome

The distribution of free grain in Rome remained in effect until the end of the Empire. The expansion of the dole is an important reason for the rise of Roman taxes. In the earliest days ofthe Republic Rome’s taxes were
quite modest. As Rome expanded, so did Roman taxes.

Although taxes on ordinary Romans were not raised, taxes on the wealthy were sharply increased.

As the private wealth of the Empire was gradually confiscated or taxed away, driven away or hidden, economic growth slowed to a virtual standstill. Moreover, once the wealthy were no longer able to pay the state’s bills, the burden inexorably fell onto the lower classes, so that average people suffered as well from the deteriorating economic conditions.

https://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1994/11/cj14n2-7.pdf

#42 Ronaldo on 09.22.17 at 7:15 pm

How about allowing income splitting with spouses for everybody?
————————————————————-
Those without spouses would scream “unfair”, your discriminating against us.

#43 Larry from ON on 09.22.17 at 7:19 pm

The faster we get T2 and his band of merry marauding Libs out of power the better. That goes for the On-scare-io Libs too. Enough is enough. Provincial election before end of June…..

When is Federal? Not soon enough…

#44 Dean on 09.22.17 at 7:20 pm

All these fancy business people and the write offs.
https://m.youtube.com/watch?v=XEL65gywwHQ

#45 Sitting on the toilet thinking on 09.22.17 at 7:21 pm

#24 Vancouver Brit

What business is it of the government to determine who I can pay. What people don’t realize about spouses is that they have as much of an interest in that business as anyone else. Time for the government to get off our backs. They’re starting to remind me of a panhandler

#46 Entrepreneur on 09.22.17 at 7:22 pm

Wonder if Charley is turning in his grave yelling out “Really, you will destroy small business and Canada. Where did I go wrong?” Or “I took it but this is going too far.”

Charley had that entrepreneur spirit to build and grow but that spirit (the engine to drive our economy) is slowly dying and will be squished with more taxes (and more free international trade, citizens left out).

Would Charley want this for the Canadians that went to his gas stations, supported his business, lifelong friends. I don’t think so.

#47 BC_Doc on 09.22.17 at 7:23 pm

#23 Rainclouds

You might want to bypass Thunder Bay too.

https://www.tbnewswatch.com/local-news/thunder-bay-hospital-er-doctors-threaten-to-leave-720918

Here’s a hint of what T2 and Morneau winning looks like— scorched earth. Get ready for unintended consequences.

#48 Pete from St. Cesaire on 09.22.17 at 7:26 pm

Instead of the CRA clamping down on outsized salaries paid to ‘non or minimally contributing family members’, why don’t they start with vastly oversized salaries being paid to full grown men who earn their living playing kid’s games; in other words, Athletes. eg: Anything above $2 million/year goes to tax.

#49 akashic records on 09.22.17 at 7:27 pm

Justin Trudeau is a loophole of the political system.

#50 BobC on 09.22.17 at 7:30 pm

#2 Bitcoinnaire

So your one of the few? You setting up all the little people so you can get their money?
You should share the planned date you guys are going to dump it all.

https://www.cryptocoinsnews.com/1-bitcoin-community-controls-99-bitcoin-wealth/

#51 Perspective on 09.22.17 at 7:31 pm

As they said in the US about Bush

I didn’t vote for his daddy either…..

#52 Annek on 09.22.17 at 7:33 pm

#24 Vancouver Brit
It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used. One spouse shouldn’t be able to give their income to their partner to lower their overall tax. Sure, they take on more risk by being a business owner and they deserve a break in some way for that. Income splitting shouldn’t be that break.
———————————————————-
Well said!

#53 Daveyboy on 09.22.17 at 7:33 pm

Smoking man. You going to be stopping in Arkansas?

#54 Moses71 on 09.22.17 at 7:34 pm

I’m sure some people must deduce T2 has stats we aren’t privy to. Why the “until now” tax laws have benefited those with their “declared” incomes as <$200k, will be affected, & why T2 is snubbing them?
I'm sure many a hair would curl to see the abuses. Maybe start looking at the bad apples who are spoiling it for the rest. Upheaval may be a necessary solution, with tweaks to follow. For do it yourselfers, yell at your cohorts

#55 Annek on 09.22.17 at 7:36 pm

I wonder what doctor’s do when they don’t have a spouse to redistribute the wealth?
Pay dividents to their sister?

#56 A on 09.22.17 at 7:41 pm

THE HARM OF HIGH HOUSING COSTS

First, sharply rising house prices are associated with increasing household debt, which increases the chance of a financial crisis which has long-lasting adverse effects upon growth…

An increase in the household debt to GDP ratio predicts a subsequent reversal in debt and lower subsequent GDP growth. The predictive power is large in magnitude and robust across time and space.

Secondly, housing is prone to the Baumol disease. Because the housing sector has lower productivity growth than other sectors, a shift in spending towards it tends to reduce overall productivity growth. To put this another way, if younger people weren’t spending so much on rent, they could spend more on other things, which would stimulate output, innovation and entrepreneurship in more dynamic sectors.

Thirdly, years of rising house prices have encouraged a culture of investment in bricks and mortar. This has diverted potential entrepreneurs into “property development” and away from perhaps more socially useful activity; has encouraged people to regard their house as their pension and so diverted capital away from business investment and formation; and might have encouraged early retirement and a loss of skilled labour*.

Fourthly, high house prices give people an incentive to protect their investments, and this breeds the sort of nimbyism which can delay infrastructure investment.

Fifthly, high housing costs encourage people to commute long distances. Not only is this bad for their well-being, but it can also depress their productivity.

http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2017/09/the-harm-of-high-housing-costs.html

#57 Vancouver Brit on 09.22.17 at 7:46 pm

#4 Vancouver Brit

Let me tell you about my brother… he works 60 hours a week running a small business he makes about 160k a year. His wife doesn’t work because their wouldn’t be time for the kids plus who would take care of the household
_______________________________

I don’t see what the wife helping in terms of the family has to do with income splitting? Does that mean if I’m earning $200k working 60 hours as an employee I should also be able to split income with my stay ar home wife?

#58 Andrew on 09.22.17 at 7:49 pm

So many people say paying someone for not working is cheating.

If you consider this, then trust funds should taxed more. So should inheritance.the kids didn’t earn it. That includes transferring farms (or any business) to children. So should primary gains on primary residence. Oh you died? Your spouse didn’t earn the insurance payout, so let’s tax it. See where this is leading? What will make this apacolyptic is not that they are increasing taxes. Many people can afford to pay a little bit more. A big issue is they want complete implementation immediately. A smart, less economically disastrous plan would be a staggered gradual approach.
The other problem is that these changes will do nothing for the deficit. Spending is THE problem.

#59 JustMe on 09.22.17 at 7:51 pm

The Fall of Roman America

~5 century BC: Roman civilization is a strong patriarchy; fathers have absolute authority over the family

~1 century BC: Roman civilization blossoms into the most powerful and advanced in the world. No-fault divorce is enacted, and quickly becomes popular by the end of the century.

~2 century AD: The family unit is destroyed. Children are growing up without fathers, Roman women frequently use nannies.

~3-4 century AD: Roman population declines due to below-replacement birth-rate. Vice and corruption are rampant.

~5 century AD: due to massive debts and financial problems, the Empire starts “selling” parts of the Empire; humanity falls back into the Bronze Age; 12 centuries of religious zealotry and intellectual darkness follow.

https://heartiste.wordpress.com/2010/12/27/feminism-responsible-for-the-fall-of-rome/

#60 DON on 09.22.17 at 7:51 pm

Corruption in BC.

Apologies for the long post. Not in dated order but you will get the idea.

1) IS the CRA aware? Say it ain’t so Joe. I hope the homeowners are claiming the rental income – Easy for the CRA to zero in.

“VANCOUVER (NEWS 1130) – More than 1,200 people have signed an online petition fighting a decision that is forcing the eviction of hundreds of tenants in Clayton Heights to free up parking spaces. The City of Surrey has sent letters to 175 homeowners telling them their illegal secondary suites need to be decommissioned because of increasing complaints about parking congestion. The City says there have been more than 400 complaints about a lack of parking due to illegal suites over the past couple of years. Richard is one of the people behind an online petition asking the City to consider other options.” http://www.news1130.com/2017/09/21/hundreds-sign-petition-fighting-city-of-surrey-illegal-suite/

2) Organized money laundering in BC?

(Exhibit A) “VANCOUVER (NEWS 1130) – More than a year after a report about possible money laundering at Richmond’s River Rock casino was delivered to the Christy Clark government, it’s been made public by the new John Horgan government, which is now ordering a more detailed review. Attorney General David Eby says the report contains serious evidence of suspicious behaviour and the former BC Liberal government buried it” http://www.news1130.com/2017/09/22/attorney-general-money-laundering-casinos/

(Exhibit B) -BC Liberal Rich Coleman is a former cop – and gaming and housing minister.
“An RCMP team targeting illegal gambling in British Columbia wrote a report more than a year ago warning that organized crime figures were likely involved in those activities. Three months later, the investigative unit that was funded by the provincial government was shut down. But a separate internal report the unit prepared in December of 2007 evaluating its future stated that high-level illegal gambling targets would conduct their operations with “impunity” if the team were disbanded. The provincial ministry responsible for gaming didn’t immediately respond to a request for comment. However, gaming minister Rich Coleman has insisted in the past that illegal gambling is just as well-policed now as it was when the integrated anti-illegal-gaming enforcement team was still around. He has said the team was shut down because it was inefficient, had a high staff turnover rate, hadn’t prepared a business plan and was redundant. He has also stressed that the province has “the highest security – both visual and people on site” when asked about criminal activity at legal gambling facilities.”
https://beta.theglobeandmail.com/news/british-columbia/bc-warned-of-organized-crimes-reach-into-gambling/article1368787/?ref=http://www.theglobeandmail.com&amp;

(Exhibit C) Clark Supporter Gets Lotto Board Gig
Also appointed: multicultural advisory chair with ties to rich immigrant investors.

Hotel and spa owner Wendy Lisogar-Cocchia, a key supporter of Premier Christy Clark, is one of two new members of the B.C. Lottery Corporation’s board of directors. Lisogar-Cocchia and investment advisor Robert Holden were appointed Nov. 27, 2013 by cabinet orders. Lisogar-Cocchia’s term runs a year, while Holden’s is for two years. They replace Cindy Grauer and Neil McDonnell. For the year-ended March 31, 2013, BCLC directors were paid $6,875 to $16,750 for attending meetings. Lisogar-Cocchia owns the Century Plaza Hotel in Vancouver and the Absolute Spa chain, which includes a location at Great Canadian Gaming’s River Rock Casino Resort in Richmond.” https://thetyee.ca/News/2014/01/06/Christy-Clark-

Stunning was the fact that the Main arm of the local MSM big boys didn’t break any of these stories. A corruption inquiry is required in BC. What else is going on?

#61 Trumpocalypse2017 on 09.22.17 at 7:51 pm

H Bomb detonation and global war this weekend?

81.9% probability.

Don’t say you were not warned.

#62 Lee on 09.22.17 at 7:53 pm

By the way – it was the Montreal Royals.

#63 X on 09.22.17 at 7:54 pm

#7 Terry on 09.22.17 at 6:34 pm
Yah, and you don’t shelter any of the money you make for dishing out mediocre financial advice?

You don’t use RRSP’s or TFSA’s? FYI, also legal ways to shelter money from paying tax dollars.

#64 Vikky in Victoria on 09.22.17 at 8:00 pm

Quit whining,gorping and snarfing Garth. You and your cohorts voted this dude in…not me..You gonna vote for him again in 2 years for another reaming?? Who was it who said you get the government you deserve? Was it you? You fat cats been hanging off the mother teat for years. Time to pay up big guy…Luv ya..

#65 Protea on 09.22.17 at 8:02 pm

Did anyone notice that when Justin Trudeau spoke at the UN this past week it looked like about 90% of the representative Delegates were noticably absent. The place was empty !!!

An absolute waste of time as many of the various delegates felt at that time.

#66 Renter's Revenge! on 09.22.17 at 8:04 pm

It’s all Harper’s fault. A lot of people didn’t vote for Trudeau in the last election, they just voted against Harper. Maybe if he wasn’t so unlikable, we wouldn’t be in this mess in the first place. Hopefully that’s a lesson for future candidates – you need to be both likable and not an idiot. Actually that’s good advice in general now that I think about it.

#67 Cry me a river on 09.22.17 at 8:05 pm

Not wanting to work for a boss does not make you an entrepreneur. A one man operation does not make a small business or an entrepreneur. It’s time to tax the living daylights out of these people. For the true entrepreneurs inventing new ways, you go and be rich. You will make so much money that tax will be a bee sting. The rest of you get back to work and stop cavorting on entrepreneur.com.

#68 Trudeau socks on 09.22.17 at 8:05 pm

DELETED

#69 millennial905er on 09.22.17 at 8:07 pm

Garth, between the picture and the first paragraph, you already have me in tears!

#70 X on 09.22.17 at 8:08 pm

You mean like inheriting trust money you didn’t work for? — Garth

Yes…we see the irony, but please don’t give T2 more ideas as to how to squeeze more tax money out of people.

#71 Damifino on 09.22.17 at 8:11 pm

#24 Vancouver Brit

Sure, they take on more risk by being a business owner and they deserve a break in some way for that. Income splitting shouldn’t be that break.
————————————–

What then, is the compensating ‘break’ that has been written into the new legislation? Thought so.

#72 Izzo on 09.22.17 at 8:11 pm

To all the parrots of the so called business world:

Your reward for taking risk is making more money not the government giving you a cookie…

If you feel like your spouse is staying home because you are too busy with the business and that means that spouse deserves the ability to split the proceeds of the business is bizarre at best delusional at worse. Why would that be any different for a salaried employee who is busting his hump for 60 to 80 hours a week, the spouse cant get a job because he is slaving all day why would you be anymore special.

The services you use like healthcare and schools are paid for by tax payers who are paying their fair share why should you get a free ride on the backs of less fortunate citizens. That makes you a parasite.

To all the fine folk who think the business people will pack it up and go somewhere else. Great, this is mostly a service economy so you will create more opportunity for other willing entrepreneurs to start new businesses because guess what you are not special.

To all the Doctors and Dentists who think its ok to evade taxes by sprinkling income or purchasing homes inside the corporation and so on. You are not special. There are millions of Doctors and Dentists who would kill for a chance to come to Canada. As i said before break up the cartel that limits the number of doctors and dentists that practice in the country and watch the supply and demand put salaries in their proper place.

This great country wasnt built on parasitical whiners, it was built by hard working immigrants who wanted to improve their lot in life and most of them knew to build a country you dont start by robbing it.

Cheers from Onatrio

#73 Hmm. on 09.22.17 at 8:14 pm

So a family four with one breadwinner vs a family of four with two breadwinners don’t pay the same tax….
How is that fair?

#74 TurnerNation on 09.22.17 at 8:18 pm

If you want to get put on some kind of (other) watch list read this book about Canada.
PDF copies floating around. Keep in mind it was pre-internet.
(author exited via heart attack. Understandable, really)

Old crank or prescient and frank?:

https://www.thriftbooks.com/w/new-world-order-corruption-in-canada-new-world-order-observed_elizabeth-elliott_robert-odriscoll/1658076/#isbn=092174515X

#75 ANON on 09.22.17 at 8:18 pm

Inevitable.
Money disappears, as promises are no longer made. Promises made are becoming “lost”. Nobody can figure out where they lost them, and start looking frantically everywhere.
Not different this time, except in scale.

#76 For those about to flop... on 09.22.17 at 8:21 pm

Pink Pumpkins being carved in Burnaby.

Well , the fall season kicks off with this post that I will dedicate to Karma who helped me find it.

The article Karma linked for me stated that the property was no longer on the market but me being me double checked and it is still on the market with a higher price than stated but still looking at taking a loss.

I have found evidence of them asking in between 1.29 and 1.62 after spending 1.46 in May 2016 and are currently asking 1.48 since seemingly trying to sell it since the end of April.

A student is listed as the owner , I hope they are studying how to dig yourself out of a hole…

Paid 1.46

Asking 1.48

6633 Broadway Street, Burnaby, BC, V5B 2Y6
$1,620,000
2017-04-30

https://www.zolo.ca/index.php?sarea=6633%20Broadway%20,%20Burnaby&filter=1

#77 TEMPLE on 09.22.17 at 8:21 pm

I wish you would stop this, Garth. Or at least present all the facts and not just the dog whistle.

#78 Darryl on 09.22.17 at 8:24 pm

Thanks for the extra info Garth and WOW. Cant the T2 more than I do .

#79 Darryl on 09.22.17 at 8:25 pm

Cant hate T2

#80 crowdedelevatorfartz on 09.22.17 at 8:26 pm

Its somewhat amusing watching Baby Trudeau implode so quickly on his first real test as PM.

One term wonder.

#81 Adam on 09.22.17 at 8:26 pm

You’re constant whining has gotten past pathetic, Garth.

By the way, what did tax laws look like in Canada in the 1930s? I’ll bet drastically different from today, yet somehow, this relatively minor tax law change, despite how you constantly try to frame it, is somehow going to be the end of the Canadian economy as we know it……or not, you’ve been wrong before, right?

#82 Victor V on 09.22.17 at 8:29 pm

BNN’s Greg Bonnell speaks with John Pasalis of Realosophy.com to find out if buyers are returning to the Toronto housing market after a sharp drop in sales.

http://www.bnn.ca/video/are-homebuyers-returning-to-toronto~1212466

#83 Leo Trollstoy on 09.22.17 at 8:30 pm

Amusing watching the middle class being gutted by the leader they voted for

I’ll have another single malt

And more popcorn pls!

#84 Steve on 09.22.17 at 8:31 pm

#41 Ronaldo

This is not discrimination. Many counties do allow income splitting for a good reason. 1) common law and marriages couples are seen as an economic unit. 2) they (usually) produce children which are important to pay and provide services you will need when you are old. Look to Japan what happens if that cycle is broken. 3) raising a child is a huge financial impact for parents. As mentioned without children there is no future for a country and therefor it is important to support people contributing to society.

#85 JustMe on 09.22.17 at 8:31 pm

My point of posting about the fall of the Roman empire is:

1. It’s all been done before.

2. We’re so screwed.

3. Maybe some of us will learn from history and change things.

#86 Leo Trollstoy on 09.22.17 at 8:32 pm

#65 Renter’s Revenge! on 09.22.17 at 8:04 pm
It’s all Harper’s fault. A lot of people didn’t vote for Trudeau in the last election, they just voted against Harper.

It’s good that Canadians get to experience how that voting strategy works out

Good on Harper and the Canadians that voted against him

Amazing experience !

#87 Billy on 09.22.17 at 8:33 pm

Getting rid of Trudeau is the most important contribution blog dogs can make to Canada in the next 2 years.

October 21, 2019: Be there!!

#88 I'm stupid on 09.22.17 at 8:34 pm

#56 Vancouver Brit

Yes it does… a household should be able to split income. When the govt pays benefits the look at the big picture. When a couple get old age poggy a couple doesn’t get double because the govt says they share living accommodations. It’s typical political suck and blow.

I’m in a very irritated state. My wife and I are going threw Ivf to try and have a family. We live in Ontario so the first cycle is funded. We’re on our second cycle, wanted to make sure we got enough so we wouldn’t need to do it again. The second cycle cost 20k. I’m not complaining but if we’re going to talk fairness why do lesbian couples get a cycle each while heterosexual one only get one? In no way am I suggesting that same sex partners shouldn’t have kids, they should and I have no problem with that. But since the funded Ivf program is available to women only, under the age of 43, a lesbian couple could get one each while everyone else gets 1. Is it a coincidence the Premier Wynn is a lesbian I absolutely think not.

#89 joblo on 09.22.17 at 8:38 pm

“Charles-Émile “Charley” Trudeau was a small business dude. A gas station grunt. He built a network of 30 locations around Montreal and started a loyalty program that encouraged 15,000 people to be gassing up regularly by 1932. He eventually sold the business for big bucks to an oil company”

Ya telling me trust fund baby’s wealth is from Oil and Gas and 85 years later the trust fund baby wants to kill oil sands and pipelines?

#90 Victor V on 09.22.17 at 8:39 pm

A new coalition (full of lefties) launched this week in support of the Liberal tax changes: https://coalitionfortaxfairness.ca/about-canadian-coalition-tax-fairness

A time-worn tactic of political parties. — Garth

#91 Darryl on 09.22.17 at 8:40 pm

#37 kommykim on 09.22.17 at 7:12 pm
How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth
It IS a loophole when the so called “share holder” has neither paid for, nor earned, those shares.
You mean like inheriting trust money you didn’t work for? — Garth
—————————————————————-

Exactly ,
Well said Garth

#92 akashic records on 09.22.17 at 8:42 pm

#41 Ronaldo on 09.22.17 at 7:15 pm

How about allowing income splitting with spouses for everybody?
————————————————————-
Those without spouses would scream “unfair”, your discriminating against us.

—-

There would be an app for that.

The income splitting spouses dating app: TinderTrudeau, featuring the leftyswipe finger motion.

Strictly genderless, in order to comply with the most important rule of the land “fairness”, that overrides lower class laws, like tax law definitions, which have a tendency of unfairness, anyway.

#93 T on 09.22.17 at 8:44 pm

#24 Vancouver Brit on 09.22.17 at 6:54 pm
How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth
____________________________________
It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used. One spouse shouldn’t be able to give their income to their partner to lower their overall tax. Sure, they take on more risk by being a business owner and they deserve a break in some way for that. Income splitting shouldn’t be that break.

—-

If two people start a business they are both entitled to the same benefits, dividends, etc. But if they are married you consider it income splitting. Stupid.

#94 Victor V on 09.22.17 at 8:46 pm

Rosenberg: Morneau’s tax plan “makes absolutely no sense to me whatsoever”

https://twitter.com/BNN/status/910124847556026368

#95 Ian on 09.22.17 at 8:49 pm

Just got this from the library. Brand new book.

All about public debt from a former head of the IMF.

https://www.amazon.com/gp/aw/d/0815730675/ref=mp_s_a_1_1?ie=UTF8&qid=1506127706&sr=8-1&pi=AC_SX236_SY340_QL65&keywords=what+we+owe&dpPl=1&dpID=51QEIGNZJHL&ref=plSrch

#96 crowdedelevatorfartz on 09.22.17 at 8:56 pm

@#60 Trump-pox-on-lips 2017
“H Bomb detonation and global war this weekend?

81.9% probability.

+++++++

Eighty One point nine Percent ?

WTF?

Where ?
In God’s green earth did you pull THAT ridiculous number from?

never mind….I dont wanna know.

Stock up on batteries, beans , bullets and bumwad Trumpy.
The new currency in your futuristic nirvana…..

#97 conan on 09.22.17 at 8:57 pm

Taxation rules for “substantial income” derived from inherited wealth are changing.

Entrepreneurs, who create something from nothing, will still have an F ton of deductions. Most of these Liberal tax changes hit the “silver spooners” who personally derive a substantial income from wealth inherited long ago.

Ladi f da.

#98 Darryl on 09.22.17 at 8:57 pm

#60 Trumpocalypse2017 on 09.22.17 at 7:51 pm
H Bomb detonation and global war this weekend?
81.9% probability.
Don’t say you were not warned.
——————————————————————–
Don’t listen to Trumpocwhatever
Don’t say you weren’t warned

#99 Last.... but not leased on 09.22.17 at 8:58 pm

I see via many of the comments that Trudeau and Morneau have accomplished their main Liberal-Machiavellian objective…to create infighting etc. etc. and deflect attention.

Is it not clear that the problem lies with gov’t spending? Then we have these bored rich boy elitists who feel they should bless us with their presence in the political arena ?

Income Sprinkling?…loopholes? .tax avoidance?..etc. .y–a—w–n….these terms are just reactive rhetoric to the current legislative cards dealt.

Turdeau and Moroneau make the middle class think they are their to help them..as they pick their pockets.
They are doing this mid term in their mandate…hoping we’ll forget come next election.

However, I see this more as a desperate gasp and subsequent dire grasp for revenue…dam the consequences..as they leave little if any meat on the bone…ie no more wriggle room.

#100 jim on 09.22.17 at 8:58 pm

#53

“I’m sure some people must deduce T2 has stats we aren’t privy to. ”

Uh, no.

You cannot ‘deduce’ that he has statistics, for the simple reason that it is not a deductive inference. If it can be false in some possible world, it is not deductive.

I think you mean ‘infer’.

Sadly for you, there is also no strong reason to infer that Trudeau has ‘stats’ on such things. It is possible that he does, but it is also possible that he is acting on partial information or out of a concern for optics.

Evidence based decision making is not a hallmark of government. If it was, we would (for instance) have very good stats on immigration, welfare utilization, medical system fraud, etc. We don’t. In fact, when I worked for a health authority in BC on a team tasked with identifying fraud, our results were quickly covered up so as to prevent higher ups in the government from having to do something about it.

#101 Stone on 09.22.17 at 8:59 pm

Lots of unhappy people on here today blaming everyone else. Even if another political party was voted in, I think everyone would still gripe. It’s what it is. Every gouvernment wants to leave their mark and get reelected. Ultimately, there will be winners (those the gouvernment pleases) from these changes and losers (those the gouvernment doesn’t need to get reelected). It’s what it is. Been like this since the beginning of time. Best advice I can give is do the best you can and adapt. I’m sure unexpected opportunities will pop up for those brave enough to grasp for them.

On a positive note, the year to date return on my balanced and diversified portfolio is at 4.91% as at the end of the day today. With the dividends coming between the next week to week and a half, that will increase it potentially to 5.27%. I love my portfolio and its dividends. It never complains, deposits regular cashflow my way for reinvestment and in the long run, continues to grow (with slight hiccups along the way). What more can you ask for? After a hard day working and earning my pennies, I open my spreadsheet, plug in the updated ETF prices, look at the totals and smile. Very satisfying. I highly recommend it for everyone.

#102 crowdedelevatorfartz on 09.22.17 at 9:01 pm

@#74 Just Me
“Maybe some of us will learn from history and change things….”

++++++

Doubtful.

As Albert Einstein once so eloquently replied to the question of what type of weapons would be used in World War 3…..

” I dont know, but mankind will be using sticks and stones in World War 4″

#103 akashic records on 09.22.17 at 9:02 pm

DELETED

#104 Darryl on 09.22.17 at 9:02 pm

#64 Protea on 09.22.17 at 8:02 pm
Did anyone notice that when Justin Trudeau spoke at the UN this past week it looked like about 90% of the representative Delegates were noticably absent. The place was empty !!!
An absolute waste of time as many of the various delegates felt at that time.
————————————————————–
LOL
I noticed that too . Just a few young ladies in the Latvia area clapping . The men already left.

Seriously , watch the recordings .

#105 BS on 09.22.17 at 9:07 pm

T2 doesn’t actually care what anyone thinks, according to remarks he gave at the UN this week.

That UN speech was the most embarrassing speech I have ever heard a Canadian politician make. T2 is one of those people so dumb he doesn’t realize he is dumb. T2 is an insult to drama teachers everywhere.

#106 Smoking Man on 09.22.17 at 9:07 pm

#8 Screwed Canadian Millenial on 09.22.17 at 6:37 pm
Last thing. Did anyone alert the CBSA that Smoking Man is re-entering the country? Did he really drive himself to all those places in the States? How was he not detained on national security concerns?
….

I know people you little shit. Plus having the puppies on board made the boarder guards heart melt on both sides of the border.

#107 Doug t on 09.22.17 at 9:08 pm

#101

You sound like you be a real hoot at a party LMFAO

RATM

#108 Spectacle on 09.22.17 at 9:08 pm

kommykim on 09.22.17 at 7:12 pm
How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth

It IS a loophole when the so called “share holder” has neither paid for, nor earned, those shares.

You mean like inheriting trust money you didn’t work for? — Garth
————–

Now add in Entitled, Narcisist, Talks through his nose about his restless (useless?) subjects, and then a History/Present situation of dangerously stupid behaviour also called mental illness.
Yes it is a sham…and killing Canadians middle Class, Employer of millions.

Sophie Grégoire Trudeau: Why My Family Talks Openly About Mental Health – Huffington Post Canada
http://www.huffingtonpost.ca › talk-openly-me…

#109 WIN not lose on 09.22.17 at 9:10 pm

“Now is the winter of our discontent.”

Thanks to William Shakespeare in Richard III.

Because the Liberals want to loot your nest egg, we can look forward to a long, angry fall and winter.

Angry battles between business owners and a Liberal leader and government so out of touch with reality.

Mendacious mini-Trudeau and malevolent Morneau want to sock-it-to the “wealthy.” How can two beneficiaries of trust funds and corporations be so blind and tone-deaf?

Why do they want to drive a wedge between business owners and their employees? Between business owners and employees everywhere?

Why inflame “the politics of envy?”

What impact will this Liberal flimflammery have?

Will angry business owners and angry employees look for solutions to government spending?

Or will business owners take their money and invest it more fair and equitable environments?

The National Post reports that big money (as in billions) is already leaving Canada.

Click here for the article. http://bit.ly/2fE9r71

For those business owners who can’t send their nest egg offshore, other legal and CRA approved possibilities exist to prevent plundering politicians from pillaging YOUR hard-earned assets.

#110 SWL1976 on 09.22.17 at 9:12 pm

Awesome Garth, one of your best. I think it is fair to say that I am one of your seasoned readers here now.

I love some of the Ottawa insights you choose to share with us. It is truly a shame that such an Honorable Canadian such as yourself was punted from politics. It really does show the depth of the corruption in the system ruling us. No matter which party is voted in or out.

I am still hopeful for a critical mass of critical thinking to avoid what these unscrupulous ‘leaders’ have planned for us

You understanding any of this SCM???

#111 Smoking Man on 09.22.17 at 9:15 pm

T2 is following the George Soros play book. Let’s face he’s stupid as doberman shit.

Globalism is taking your money with the intent of giving it to the 3rd world. Problem is it will never make it to the 3rd world.

And hole in the head hollywood supports it not realizing no one will be able to afford to go to movies after the final act is played out.

Antifa is the brown shirts to the next Nazis . Funded by Soros.

Why is this dude not in a zebra outfit.

T2 goes through with this. Never paying a cent in tax again. The infastructure is in place. Any blog dogs that show proffets of purchase of Deplorables. I’ll show you how to do it too.

#112 BS on 09.22.17 at 9:16 pm

#24 Vancouver Brit on 09.22.17 at 6:54 pm
How is paying dividends to a shareholder a loophole? And you give people money advice? — Garth
____________________________________
It’s a loophole because its a tax avoidance scheme that wasn’t intended to be used. One spouse shouldn’t be able to give their income to their partner to lower their overall tax.

They put in tax law something that was not intended to be used? Something that was widely used for decades by small businesses and never challenged by the CRA? This structure was put in place for reason. It makes sense to drive the economy and create jobs. Increasing taxes on the people that create most of the jobs will reduce jobs and reduce tax revenue.

#113 Argo on 09.22.17 at 9:19 pm

#71 Izzo

Well said! Wouldn’t it be nice if Garth was actually informing people about what the proposed changes are rather than stoking bias and outrage with conservative rhetoric?

People, please read this and learn what is actually proposed and why:

https://news.vice.com/story/the-rich-are-set-to-go-to-war-over-trudeaus-tax-changes

Just what I would expect from someone who gets financial news from Vice. That article is a hoot. — Garth

#114 Smoking Man on 09.22.17 at 9:19 pm

#53 Daveyboy on 09.22.17 at 7:33 pm
Smoking man. You going to be stopping in Arkansas?
….

Zipped through on my way back. Met Dylan Schneider. Up and coming Justin Beber of country music. Great kid might I add.

Got a selfy on my twitter @SmokingMan

#115 Smoking Man on 09.22.17 at 9:22 pm

CRA I’ll be paying a visit to the genral store on Sunday hope to see you there.

#116 leebow on 09.22.17 at 9:22 pm

Gonna be donating to the Cons this season. JT needs to go. His UN appearance is embarrassing (just now realized this is the title of today’s post). Putting Canada down in front of a bunch of irrelevant retards.

But rejoice. It’s a Conservative millennia ahead… Once Conservatives find a leader.

#117 Moses71 on 09.22.17 at 9:26 pm

#84 Steve NDPer?
Hey Steve, you’re on track with how important kids are to the economy. So increase the monies to schools, single mothers, daycare subsidies, too? As this investment would also help the children to take care of us when we are old.
Great argument. lol

#118 Bobby on 09.22.17 at 9:26 pm

The Opposition are on the right track, are the wealthy who hide their monies in trusts like both Justin and Bill, paying their fair share? Why aren’t trusts being included?
The National Post columnists have opined that Justin has shot himself in the foot and both of them are now nervous. The attention has been focussed on them, great, they deserve it. They are trying to ignite a class war, hopefully it blows up in their faces.
By the way, who voted for these idiots anyways?

#119 Moses71 on 09.22.17 at 9:27 pm

#84 Steve
So therefore, increasing the tax pool is a great idea. Love it. lol

#120 Kaganovich on 09.22.17 at 9:31 pm

Careful Garth, soon you will be drawing attention to unearned vs earned income lol

#121 akashic records on 09.22.17 at 9:37 pm

#103 akashic records on 09.22.17 at 9:02 pm

DELETED

—-

Hi T1!

#122 Moses71 on 09.22.17 at 9:39 pm

#100 Jim
Thank you for noticing my comment. Strong reasoning doesn’t define deduce nor infer. Infer is a synonym of deduce. Reasoning or logical conclusion does.
Statistic was an incorrect description. Thanks for this. Evidence would have been an appropriate noun for what I was referring to.
I am related to the health care field, too. Your example is one of many of dysfunctions in the system. But lacks conclusion, as so does my statement. Just an observation.

#123 For those about to flop... on 09.22.17 at 9:40 pm

Here is a handful of houses that were sold or removed this week and I will throw in the other house that was in the article Karma showed me to see if we can get some real time results.

9579 Neill Place,Richmond

875 Greene St,Coquitlam

16715 84th Ave Surrey

4948 Pinetree Cresent,West Vancouver

4368 Cambridge St Burnaby

4855 Lanark St Vancouver

I might as well throw this one in as well as apparently it sold the week before, but when I asked last week I received no reply from the realtors on here.

2706 1077 Cordova St Vancouver

So as you can see ,a nice little mix from some of the cities that make up Greater Vancouver and now it is over to the realtors.

I swear I used to get way more replies from the realtors before the shyster guy turned up…

M43BC

#124 Too many tears on 09.22.17 at 9:43 pm

Now now people, let’s not digress too far away from a real estate blog.

You tax cheats need to realize your game is up and T2 has painted a big old bulls-eye on your asses.

So stops with the tears and let’s get back to real estate, realtors, and mandarin.

#125 Millennial Realist on 09.22.17 at 9:45 pm

You Boomers in denial are hilarious, it’s such a hoot to read the comments tonight :)

Justin will CRUSH the Cons in the next election.

All the defenders of the 1% better get some fresh diapers on, coz you’ll be alone in the minority corner of irrelevant has-beens pooping yourself over what is to come!

This is where we are going, you GIMME generation apologists.

Don’t like it?

GET OUT OF OUR COUNTRY!!!

WE OWN CANADA NOW, LOSERS!!!

(I hear Puerto Rico has some cheap real estate if you want to “escape” our social and tax fairness – take some batteries, though)

#126 StandardDeviation on 09.22.17 at 9:45 pm

FYI this is one of the only countries I have ever lived in and I have lived in 5 thus far. That does not allow income splitting for a stay at home mum family.
There appears to be a an outlier approach (Internationally speaking) to all financial strategies when it comes to our governments fiduciary strategies?

#127 Lobster Man on 09.22.17 at 9:48 pm

Flop,

This is an odd-ball contribution to your “Pink Folder”. But it is not pink at all.

376 45th West, Vancouver

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

The property’s assessment value stands at $3.5655 million. It was sold in August, 2017 for $5.265 million, (click on recent sales history), very close to the asking price.

Why?

The property is within the Cambie Corridor Phase 3 Zone, an area of potential redevelopment. And it is hotter than hot.

But please don’t let this sales example discourage you. You are doing great with the data you have been providing. The only thing is, as sales volumes drop, as in case of the Vancouver Westside as of late, this particular sales will lead to a “not-so-correct” higher average sales number for the area. And mind you, there are more than just one or two odd-ball ones like this.

What are Mark’s usual words? “Sales Mix” – and this is a true example of what may be hidden inside a “sales mix”.

LM

#128 JustMe on 09.22.17 at 9:54 pm

#124 Too many tears

Now now people, let’s not digress too far away from a real estate blog.

——————————————————————————

Taxes, interest rates, consumer debt and government policy all affect real estate prices. After all, it’s the price of the real estate at issue here.

#129 HDJ on 09.22.17 at 9:56 pm

Garth, Now you’re savaging the prime Minister’s father and grandfather as part of this attack against proposed legislation to insert some fairness into our tax system. Your use of this sort of stuff is surprising. Slanted arguments and clever distortions I can understand, but your vested interest in retaining tax policies that favour one group over others is dragging you and others into a quagmire of ridiculous hyperbole, scare tactics and overtly divisive arguments. Trying to block the government’s tax proposals is all about protecting the bank accounts and pockets of those accustomed to always having their own way. You guys can vote Conservatives next time. Our democracy is about to shuffle the board a little. That’s all. Don’t let greed make you into a sour old man. Getting at someone by going after their dead father and grandfather is kinda low-brow.

How did I possibly disparage T1 or his entrepreneurial dad? — Garth

#130 Canadian Moose on 09.22.17 at 9:58 pm

It’s just so simple, and we really never really talk about it anymore. Countless Canadians have a spending problem relative to their income. Our Liberal government is representative of that as well. Additional taxation at any level will not resolve it. Until we find anyone who wants to lead on a serious platform of austerity (Garth)? this country is doomed.

Oh yes and good evening from the Hinterland

#131 Crash the system on 09.22.17 at 10:01 pm

#24 rainclouds on 09.22.17 at 6:51 pm

Visiting the east coast.

Today the emergency unit at the general hospital in Montague PEI was closed

” No Dr available ”

It’s started…..

—-

My wife is a nurse here in Nova Scotia and the logical conclusion that we’ve come to regarding the doctors, the ones she’s spoken with, is the liberals will crash the system. The medical system has been a mess for several decades with average age of doctors and all, but from what we can surmise, it’s seems like the liberals haven’t figured out that if there is say…a drop of 1/3 of available doctors, then how will the system survive.

I hope we’re wrong about the system crashing, but the doctors will retire, move, cut their hours, etc. With such a massive decrease in their availability, how can this not come back to haunt the idiots in Ottawa?

#132 TheUnhealthy on 09.22.17 at 10:01 pm

Very timely post considering a main point of Trudeau’s UN speech was transparency.

#133 akashic records on 09.22.17 at 10:02 pm

#111 Smoking Man on 09.22.17 at 9:15 pm

T2 is following the George Soros play book. Let’s face he’s stupid as doberman shit.

Globalism is taking your money with the intent of giving it to the 3rd world. Problem is it will never make it to the 3rd world.

=========

Globalism is not really about giving money to the third world. That’s just a tool.

The actual idea is to create more government debt in the most developed world, where the risk of default is the lowest – and profit from lending the money.

Canada is full subscriber of the game and T2 needs to get the money to service the debt and to finance the programs that can guarantee to create more debt.

What do you think this latest tax grab plan is coming from?

#134 Manitoba Whale on 09.22.17 at 10:06 pm

#105 BS on 09.22.17 at 9:07 pm
T2 is an insult to drama teachers everywhere.
*****
Awesome. You people crack me up.
I thought he was a substitute teacher?

#135 Chico on 09.22.17 at 10:08 pm

#37 Willy H on 09.22.17 at 7:09 pm

Seven in ten earn less than $200,000. Collectively they run businesses employing an estimated 15 million people – about half of the 29.5 million Canadians over 15 who work. Overwhelmingly the people Morneau is about to squish are members of the middle class.
___ ___ ___ ___

Most of these folks are not going to be affected because they aren’t employing the tax avoidance strategies that are being targeted. The vast majority earn around $65K. They aren’t income sprinkling, dealing with capital gains or passive investment income. I would guess the most of the folks utilizing these strategies have revenues or incomes well over $500K per year.

If T2’s inheritance is to be dragged into this debacle … What about children of small-medium sized business owner’s that inherit profitable and stable business’s from their parents without taking on any risk … are they entitled to benefit from the targeted tax avoidance for life?

——

Statistically speaking, 2nd generation family run businesses tend to decline from what the first generation built, not all but most, and very very few ever make it to the third generation. Running a business is not for the pampered or meek. I have not run my own business but I served hundreds and probably thousands while working in advertising and the print industry. I have great respect for how hard these people work!

#136 rainclouds on 09.22.17 at 10:08 pm

This has Butts fingerprints over it. Trudeau’s BFF from McGill. “Smartest guy in the room” Might have miscalculated the blowback in spite of the “summer consultation period”

https://beta.theglobeandmail.com/news/gerald-butts-the-guardian-of-the-trudeaunarrative/article31692482/?ref=https://www.theglobeandmail.com&service=mobile

#137 Gentle ,Loving Kindness on 09.22.17 at 10:09 pm

PM J Trudeau and K Wynne are making me like Pres. Trump more and more.

#138 NoName on 09.22.17 at 10:11 pm

off topic

Those two guys are geniuses of some kind, they have this registered as a non-profit school. As they say tax deductible education.

MUST PRESS PLAY
http://bit.ly/2fo2F8z

if notime, fast forward to 8:30 and watch from there

#139 Wack on 09.22.17 at 10:13 pm

“Hey!” Remember when Harper warned us about JT not being ready and his itty bitty deficits? Lol!!

Ya, JT is even worse! Glad I didn’t vote for this idiot, never voted for his idiot father either!

2 yrs can’t come soon enough, just worried that this country has more brain dead idiots than smart people and he’ll get another term!

#140 Spectacle on 09.22.17 at 10:14 pm

95 crowdedelevatorfartz on 09.22.17 at 8:56 pm
@#60 Trump-pox-on-lips 2017
“H Bomb detonation and global war this weekend?

81.9% probability.

+++++++

Eighty One point nine Percent ?

WTF?

Where ?
In God’s green earth did you pull THAT ridiculous number from?

never mind….I dont wanna know.

Stock up on batteries, beans , bullets and bumwad Trumpy.
The new currency in your futuristic nirvana…..

———- Now That Was Funny……..
Ps: the U.S. is just aching to express its dominance . It will turn North Korea into a barbecue should it come to that. What’s that smell?

#141 Deplorable Dude on 09.22.17 at 10:14 pm

T2 is full of it….

If he’s claiming to want fair taxes how about bringing back Harpers income splitting for couples that he ditched. How is it fair that a family with one wage earner can potentially be paying more tax than a family with two wage earners bringing in the same amount as the single earner?

#142 akashic records on 09.22.17 at 10:21 pm

#129 HDJ on 09.22.17 at 9:56 pm

Getting at someone by going after their dead father and grandfather is kinda low-brow.

How did I possibly disparage T1 or his entrepreneurial dad? — Garth

—-

Garth is actually a true T1 faithful. You can find all the evidence on this blog, look for DELETED, it’s all about T1 channeled.

He likes more only the grandfather – that’s for the right reason, he was a true entrepreneur.

As the comment of the day noticed: too bad his wealth was not taxed away to prevent the creation of a political dynasty.

#143 Ace Goodheart on 09.22.17 at 10:28 pm

T2: “We raised taxes on the wealthiest 1% so we could lower them on the middle class”. Bull f%$&ing s$%T.

T2 is a partier. He is too soft. He has no idea who is influencing him and why. I struggle to understand his compass. Everyone has one. Harpo’s was dead easy to see. With T2 it is almost like his compass is still an embryo and not functional and he is blowing like a leaf in the wind.

I told you lot about T2’s gas station heritage in a previous comment post months ago (Remember Petro Canada – “pumping your energy back into Canada”).

The winds blow and right now they blow South to the US border then they hit the ice wall and Buffett back with the opposite message they left with.

When you have a socialist government financed by 1% billionaires for the purpose of appeasing an unruly horde of young folk bred up on a virtual reality that cannot exist, and the whole thing is held together by an everyday rude boy trust fund millionaire kid who really wants to connect with the society that his wealth has always excluded him from, you hope the rude boy clues in, develops a recognizable compass and moves forward in a way that educated people can predict.

That is not happening right now……

#144 For those about to flop... on 09.22.17 at 10:29 pm

When the Metrosexual Messiah was voted in the first time I sort of understood as he had a bit of X factor.

If he does another term, I will start studying the Y factor…

M43BC

#145 oncebitten on 09.22.17 at 10:36 pm

OK, I need some clarification re: income splitting and income sprinkling as the two terms are being used interchangeably.

As I understand it, income splitting is when a higher earning spouse contributes to an RRSP in the lower income spouse’s name. Anyone can do this

Income sprinkling is paying spouse and children a salary? dividends? which obviously only someone with a business can do.

Also, #141 Deplorable Dude what income splitting measure did Trudeau ditch? I do know that he got rid of the $2000 family tax grant which affected our family big time.

#146 meslippery on 09.22.17 at 10:38 pm

‘wealthy people have to pay their fair share’ were met with eye rolls
——————

You could have just gently raised the tax on the middle class like was standard operating procedure for years.
Oh forgot the middle class and those working to remember what that was, yeah been farmed away so we only have people with money to tax.

#147 akashic records on 09.22.17 at 10:39 pm

#143 Ace Goodheart

I struggle to understand his compass. Everyone has one. Harpo’s was dead easy to see. With T2 it is almost like his compass is still an embryo and not functional and he is blowing like a leaf in the wind.

===

Your struggle ends when you realized that T2 is a carefully groomed puppet for the role, like Macron.

#148 Dolce Vita on 09.22.17 at 10:47 pm

#127 Lobster Man

Why the Median Selling Price is a better indicator than the Average.

Mode better yet, but not reported.

City of Vancouver:

Average Selling Price = $1.2 MM
Median Selling Price = $836 K

Indicates Positive Skew or that most properties (detach, condo, townhome) probably selling for less than the Median.

Of course, we do not know since RE does not report the Mode. Suspect it is lower since cheaper resale Condo unit sales represent 75% of the product mix.

Still, detached now -11% in average sold price y/y even with such a high detached, average distorting, number that you report (122 total detached sales this month so far).

Well, with rezoning it looks like they can build a few townhomes on that property and recoup their money? Multi-unit?

Probably multi-unit in light of B20 probably coming into effect (i.e., fewer qualified buyers with a lesser amount of mortgage money to spend).

If #19 Debtslavecreator is correct, a lot fewer buyers after B20.

Interesting post Lobster Man.

It would be nice to learn what they intend to do with the property in the future. On the surface it seems a high risk purchase price if you cannot put many units to sell on that property.

#149 Two-thirds on 09.22.17 at 10:58 pm

A few points to add to this debate:

1) If the tightening of the rules is because a majority of users of incorporation are abusing the system = justified change and “fair.”

Otherwise, statements claiming that the changes will not affect the vast majority of “honest” business people, suggest the problem is due to a small number of users. Thus the solution should not be changing the rules for all, but actually enforcing the existing rules on the rule-breakers.

This thinking would be akin to saying that because some people do 180 km/h on hwy 401 and abuse the system, the speed limit has to be lowered (for all), to stop the abuse. Would you rather not have better speed traps and increased patrolling/penalties? In both cases, the best answer is stricter monitoring and enforcement of rules, not changing the rules, penalizing everyone because of a few rotten apples.

2) Concerning income splitting, consider the following: if a spouse who does not work at the business but is entitled to (taxable) proceedings from it is unfair, is it also unfair that when the marriage is ended, the non-working spouse is entitled to (half) the wealth and assets? (absent a pre-nup, that is)

Which one is it?

Strange, for a feminist PM to so disadvantage the “non-working” spouses of incorporated business owners, who are predominantly women.

3) I concur with those who advocate for income splitting for us working stiffs. Instead of taking it away from a few, give it to all of us!

But that could not possibly be deemed equal or fair, though. The previous government did it in their last year, and they were not nice people!

Happy end of the world day tomorrow, all!

Happy housing crash too!

#150 Ace Goodheart on 09.22.17 at 11:03 pm

Rocket man. My first karaoke song. Followed by should I stay or should I go by The Clash (which I was much better at, excepting the part about “oooh split” that I always got wrong).

I never expected, back in 1983 when I could still hear the rebel yell (against me, thrash unreal) that my favorite karaoke song would become the catch phrase of a historical event.

But now here we are.

The United States has officially conceded power over planet Earth to South East Asia (and in particular, China), it’s aging dotard leader has been made a fool of internationally, the emperor clearly has no clothes, and my very first forage into bar life drunk as a skunk singing has become the anthem for a dying civilization.

How weird is life!

And here is me thinking I need to work harder on avoiding frogs on the road on the way to the cottage.

#151 Joe Schmoe on 09.22.17 at 11:05 pm

Thanks Garth!

This was the JT bashing people need.

Surprisingly very few ‘but but but Harper!’ defences

Good to see. People are starting to pay attention.

Dirty Bill will be the first rat to flee the ship. Not too many of the others have jobs to go back to that pay more than a MP

#152 Dolce Vita on 09.22.17 at 11:07 pm

#19 Debtslavecreator

I like reading your posts as you are in the debt industry.

I can see how RE prices and $ volumes will drop with B20 in the short run (fewer qualified buyers with a lesser amount of mortgage money to spend) but how is it you think also a lights out impact on the Cdn. economy 3-6 months out?

RE and related sectors, at most, represent 20% of GDP. Recent GDP numbers, post Toronto and Vancouver correcting, show robust growth.

Not combative; rather, curious.

Since you are in that industry you must foresee something else happening that laypeople such as myself are not privy too.

#153 Quit whining! on 09.22.17 at 11:10 pm

Quit whining people, we all have to be on a level playing field.

Lets stop these artificial deductions and income sprinkling. Lets stop taxing dividends at a lower rate.

And lets tax all dollars earned at the same rate!!! Like a person here once said A Dollar is a Dollar is a Dollar.

Tax everything the same. One rate. Simplify the tax code to one page.

#154 Quit whining! on 09.22.17 at 11:13 pm

#124 Too many tears on 09.22.17 at 9:43 pm
Now now people, let’s not digress too far away from a real estate blog.

You tax cheats need to realize your game is up and T2 has painted a big old bulls-eye on your asses.

So stops with the tears and let’s get back to real estate, realtors, and mandarin.

——
Unbelievable that when a bunch of people get together, they think they can have it their way. T2 will level the playing field soon and then some. we need a 100% inclusion rate.

Now if we can only do something about the money launderers (RE) in Vancouver. The group there seems entitled to that as the group here seems to be entitled to an unfair playing field.

Game Over.

#155 45north on 09.22.17 at 11:14 pm

Poor Bill. Hung out to dry. Bet he wishes he’d stayed at home But, no, he had to go into politics – where he’s being used up, day after unrelenting day.

“hung out to dry” that’s my impression

Debt Slave Creator: The story is that the B20 is already being effectively implemented by at least 2 banks. If this continues it is lights out RE market and CAD economy 3-6 months out
I can’t stress enough how major this is

that got my attention

old post: It all confirms my growing conviction there is no rescue possible.

http://www.greaterfool.ca/2010/11/17/no-rescue/

seven years later, the GTA real estate market is in free fall. People need to be rescued but no rescue’s possible.

#156 BS on 09.22.17 at 11:29 pm

Rumours suggest changes coming to feds’ tax reform proposal: B.C. minister

“I believe you’ll see a shift. Certainly the rumour that is out there is that you’ll see some kind of shift coming forward,” James said during a question-and-answer session with members.

It looks like this tax increase is even too radical for the ultra left BC NDP.

James said more consultation is needed to avoid unintended consequences that could harm small business owners, whom she described as the backbone of the provincial economy.

http://www.1310news.com/2017/09/22/rumours-suggest-changes-coming-to-feds-tax-reform-proposal-b-c-minister/

#157 Dmitry on 09.22.17 at 11:31 pm

#9 Screwed Canadian Millenial

Hey screwy, what’s your concern with Smoking Man entering Canada?
Why don’t you report it yourself to CBSA, CRA, CISC, her majesty queen, JT personally, etc?
Why that has to be someone else, not you?

#158 Dmitry on 09.22.17 at 11:34 pm

#12 Robert Daisley

Study?
Why they would want to do it?
Not their intention to do the right thing, so why bother?

#159 Ace Goodheart on 09.22.17 at 11:36 pm

Re #125 Millenial Realist:

The 1% you speak of are likely not in “your country” right now (it’s September they usually leave the end of August).

T2 is not going to change the amount of tax they pay.

They will still pay far less than you and me.

T2 is going to tax you more. Either directly or through increased taxes on the business you work for.

Bright side is, you can fight this.

How? Earn money like the 1% do. Ie from not working. Earn your income from dividends and capital gains. Like the 1% who will never be taxed like the middle class

#160 Alberta Ed on 09.22.17 at 11:47 pm

Let’s hope Morneau has to go in for a prostate check soon. T2, too.

#161 Dmitry on 09.22.17 at 11:49 pm

#23 Mark

Did you ever owned a business?
Or have you been incorporated or contracted?
This is total BS that has nothing to do with reality.
Small businesses pat corporate tax on profit, period!
What to do with the profit is up to owners.
Why would owner pay himself smaller salary than it is considered an average in the market?
According to you is only because the owner is cheating, right?
In reality owner wants to save to buy equipment or hire more personnel to extend the business.
Or even save in retained earnings so when retired can pay himself or other investors dividends.
How is that not valid or logical is beyond my comprehension.
If there would be no such thing, why own the business all all and how to operate it?
Looks like all you want to to confiscate all profits from all businesses and distribute to all population via evergrowing government.
Yes, only that is fair!

#162 Dmitry on 09.22.17 at 11:53 pm

#25 Vancouver Brit

So according to your screwed logic spousal RRSP is also tax avoidance?
Essentially it’s the same thing – if your spouse earns lower income you just lower overall tax paid by contributing more to your spouse RRSP account?
How’s that fair?

#163 Mark on 09.22.17 at 11:53 pm

“What are Mark’s usual words? “Sales Mix” – and this is a true example of what may be hidden inside a “sales mix”.”

Its a one-off special situation. The “sales mix” when I use it in discussion refers to the aggregated data of an entire region, and the statistical changes within the sales data, ie: the influence of change in the distribution of percentiles of the overall market under transaction.

Having said that, assessments aren’t very useful as they’re heavily based on criteria that is much different from “fair market value”.

#164 mousey on 09.22.17 at 11:53 pm

Ok, I’m going to read T2’s address to the UN and if he has said what is being reported, then that tears it for me and the consultation period is a total farce. I will be attending at the MP’s office with a transcript of that speech, which he probably hasn’t even read, and I will be asking for an explanation. Update to follow.

#165 meslippery on 09.22.17 at 11:55 pm

#127 Lobster Man

Why the Median Selling Price is a better indicator than the Average.

Mode better yet, but not reported.

City of Vancouver:

Average Selling Price = $1.2 MM
Median Selling Price = $836 K
———
Thinking even if the spouse and I get $15.00 per hour
this is going to be tough.

#166 SoggyShorts on 09.23.17 at 12:06 am

#153 Quit whining! on 09.22.17 at 11:10 pm
Quit whining people, we all have to be on a level playing field.
….
Tax everything the same. One rate. Simplify the tax code to one page.
***********************************
How are people so damn ignorant? I get that you have never had a small business, but surely you can see that those who do have different expenses?
Does an employee have to pay $5k a year for E&O insurance?
No, they don’t.
Does an employee ever have negative income in a year? No, they don’t.
Does an employee have to pay double CPP?
No they don’t.
Does dividend income increase your RRSP limit?
No it doesn’t.
Can someone earning dividends collect E.I?
No, they can’t.

Only an idiot thinks every dollar should be taxed the same.

#167 Dmitry on 09.23.17 at 12:06 am

#55 Annek

Why are you’re so worried of what doctors would do?
Worry about what you do, loser.

#168 Ace Goodheart on 09.23.17 at 12:08 am

You wonder. It’s like when I was a 15 year old boy trying to figure out how to convince a girl to date me. You think logic, reasoning, incentives. None of that works. Then one day you realize. Women work on emotion, not logic. Build that emotional connection and you have her. Reasoning is useless.

Same with investing. Ear to the ground. Treat your holdings like they can feel you and you them. It is not logical. It is a feeling. An educated gut reaction. You cannot reason with the markets nor can you talk logic to them. But if you listen, watch and try to connect yourself, you can feel them.

#169 Dmitry on 09.23.17 at 12:10 am

#57 Vancouver Brit

Yes, absolutely every family should be considered as one atomic unit and income is taxed per family, not individually.
Otherwise what’s that financial incentive to start and keep family in Canada?
Tax should be incentive, so a cash grab to infinitely grow government.

#170 Dmitry on 09.23.17 at 12:13 am

#65 Protea

Yeah, who would want to listen to a loser pretending to be a communist.

#171 clownsox on 09.23.17 at 12:25 am

#150 Ace Goodheart on 09.22.17 at 11:03 pm
The United States has officially conceded power over planet Earth to South East Asia (and in particular, China),”

Best check the atlas dude, southeast asia includes places like Cambodia rather than China!

#172 Tom from Mississauga on 09.23.17 at 12:29 am

Thank goodness I work for a US based company that won’t have a single extra penny in tax to pay. Too bad for our small Canadian competitors.

#173 Trust Nonsense on 09.23.17 at 12:31 am

Trust income is already fully taxed at the highest marginal tax rate, so it does not make sense to generate income inside a trust. Unless you have multiple beneficiaries, such as family members in a family trust, who have lower income tax brackets, as income may be taxed in their hands, notably in a discretionary trust. Same for capital gains. Is that fair? Well, nobody needs to do any work, and the allocation rule is the equivalent of income splitting. So, I say trusts should be subject to the new rules too!

#174 Trust Nonsense on 09.23.17 at 12:34 am

Of course, the truly unfair tax measure that needs to be undone is no taxation of the capital gain on the sale of real estate. This is the most outrageous tax benefit ever created, just to encourage a housing bubble.

#175 Pete from St. Cesaire on 09.23.17 at 1:05 am

They put in tax law something that was not intended to be used?
——————————————————-
Sure, just the way we’re supposed to believe that the bail-in legislation they enacted insures that it will never be used.

#176 Rentin on 09.23.17 at 1:15 am

Didn’t notice anyone posting a link so here it is. Tax is always lower on dividends, since it is paid from post corporate tax earnings.

Make sure you don’t get married, but have a permanent girlfriend, that never stays for more than 14 days; and that way you get to keep two principal residences….

https://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.pdf

Taxes will always go up until the spending gets under control.

#177 Pete from St. Cesaire on 09.23.17 at 1:18 am

is it also unfair that when the marriage is ended, the non-working spouse is entitled to (half) the wealth and assets? (absent a pre-nup, that is. Which one is it?
————————————————————-
Here is something that somebody should pick up and run with: In all of those years when gay people were not permitted to marry they lost out on those perfectly legal income sprinkling opportunities; therefore they should now demand a retroactive payment from the CRA for all of the monies that could have been saved in taxes during the time when they were wrongly discriminated against. T2 would have to agree or he would be anti-gay and anti-equality. I wish some gays or lesbians out there would pick up the fight for justice.

#178 Buford Wilson on 09.23.17 at 1:26 am

Bill stepped in it.

#179 Where's The Money Guido?Coleman on 09.23.17 at 1:43 am

Re: #60 DON on 09.22.17 at 7:51 pm
Corruption in BC.

Apologies for the long post. Not in dated order but you will get the idea.
2) Organized money laundering in BC?

(Exhibit A) “VANCOUVER (NEWS 1130) – More than a year after a report about possible money laundering at Richmond’s River Rock casino was delivered to the Christy Clark government, it’s been made public by the new John Horgan government, which is now ordering a more detailed review. Attorney General David Eby says the report contains serious evidence of suspicious behaviour and the former BC Liberal government buried it” http://www.news1130.com/2017/09/22/attorney-general-money-laundering-casinos/

(Exhibit B) -BC Liberal Rich Coleman is a former cop – and gaming and housing minister.
“An RCMP team targeting illegal gambling in British Columbia wrote a report more than a year ago warning that organized crime figures were likely involved in those activities. Three months later, the investigative unit that was funded by the provincial government was shut down. But a separate internal report the unit prepared in December of 2007 evaluating its future stated that high-level illegal gambling targets would conduct their operations with “impunity” if the team were disbanded. The provincial ministry responsible for gaming didn’t immediately respond to a request for comment. However, gaming minister Rich Coleman has insisted in the past that illegal gambling is just as well-policed now as it was when the integrated anti-illegal-gaming enforcement team was still around. He has said the team was shut down because it was inefficient, had a high staff turnover rate, hadn’t prepared a business plan and was redundant. He has also stressed that the province has “the highest security – both visual and people on site” when asked about criminal activity at legal gambling facilities.”
https://beta.theglobeandmail.com/news/british-columbia/bc-warned-of-organized-crimes-reach-into-gambling/article1368787/?ref=http://www.theglobeandmail.com&amp;

It’s not just the River Rock Casino; the Hard Rock Casino in Coquitlam is just as bad. I have personally seen good looking mid-30s women come in with HUGE purses (2 feet square) and just start pouring 20s into machines and not caring how much money they were winning, but, they were winning an unbelievable % of their spins.
I watched this happen for over 2 hours of continuous feeding the machine, not even stopping to see how much they won/lost, just carrying on as if they were at a job, chatting among themselves. One spin for every ten 20s shoved into the slot machine. And no security anywhere to be seen. I could recognize this laundering, why couldn’t their security? Those ladies must have had $50k in 20s between them.
I believe it is an inside job and the former cop (Coleman) is the mafia head, imo….

#180 fishman on 09.23.17 at 1:46 am

Out here on the west coast we’ed celebrate if T2 even came close to his much loved & respected grandfather Jimmy Sinclair. Great fisheries minister, presided over a booming industry of ten of thousands of people making good money. Didn’t let them damn the Fraser.Good returns,listened to scientists & fishermen. Sure he made mistakes , but nothing like the ones now leading to extinction.

#181 Accountant on 09.23.17 at 2:04 am

Corporate tax should be like personal income tax. Thats fair. Capital gains should be taxed at the highest bracket. Lifetime capital gain exemption should be removed. Need to tax high income more.

#182 Adrian on 09.23.17 at 2:50 am

(You’re right, Garth, inheritance taxes *are* important.)

I don’t want to downplay the manner in which Trudeau is pushing this through, or how politics and politicians are really pursuing power above all else, but I do think there is a legitimate reason to at least consider the need for certain changes without hysteria. Hear me out:

Has anyone here ever been approached to join a multilevel marketing (MLM) network? Like Avon, but some people have gotten scary serious about this stuff. They’ve developed strategies that include using the tax benefits of small businesses to accumulate their wealth pretax, while using spousal tax-splitting to draw income from their “business” at the lowest possible rate.

My dad ran an electrical contracting company for 25 years on the basis of quality workmanship, a fair price, and honouring your commitments. I’m certain that the vast majority of small business owners are honest, hard-working, legitimately productive people like him. But some people out there definitely are trying to game the system and they’re using the small business tax rules to do it.

Despite the ham-fisted approach of the Liberals, and without having actually read firsthand how they propose to “fix” things, I want to propose that perhaps there is a well intentioned origin to these tax-code changes that doesn’t simply involve a naive desire for fairness by people ignorant of genuine, risk-taking entrepreneurialism.

#183 Fake News Again on 09.23.17 at 2:56 am

So please tell me that I am not the only person that thinks that it was “no coincidence” that once Bill Morneau returned from Bilderberg – the tax hikes were announced by Bill and Mr Selfie.

#184 Ian on 09.23.17 at 3:02 am

I still think the housing market will play a major role in sinking The Snowboarder and Wild Bill.

Classic early signs in a bear: the bulls don’t believe the falling prices yet. Hosing in Canada now reminds me EXACTLY of the stock market in summer of 2000 with most saying ‘all will be fine’.

By 2019 people will be apoplectic about housing as they realise what the Gartho has been trying to tell them: it will take 15-20 years in real terms to see your peak house price again.

So this could be a major factor in getting rid of this government. Not to mention electoral reform and Khadr and carbon tax.

Let’s hope. Plus, Scheer is personable and funny as hell, unlike Harper. I met him at the leadership convention. I was hoping for Mad Max but since then I’ve come to believe Scheer is the man. The new Diefenbaker from SK!!

#185 Ian on 09.23.17 at 3:13 am

#157 Dimtry

There’s no helping SCM. We all tried lol.

#186 Dolce Vita on 09.23.17 at 3:19 am

#155 45north

“that got my attention”

Good to read I am not the only one that thought the same.

May well have been in reference to the large portion of GDP that RE and related sectors contribute, some say up to 20% and the impact B20 will have on that (fewer qualified buyers and lesser amounts of mortgage money to spend).

Still, June 2017 GDP showed no signs of RE failing (4.5% annualized at the end of 2nd Qtr 2017).

By then Toronto had 2 consecutive months of average selling price drops (total of -$200 K) and Vancouver beginning to show signs of a slowing market in terms of units sales from its May 2017 peak.

Then again, #19 Debtslavecreator said wait 3-6 months.

By Dec. 2017 (a little over 3 months from now) we will have had GDP reports for up to and including Oct. 2017 and Labour Force Surveys for up to and including Nov. 2017.

Not so sure I buy the implosion theory yet. 33% of Canadians have not debt. 25% up to their eye balls in debt (and yes, I know that is well above critical mass that brought down America’s RE market about 10 years ago).

Having said that, #19 Debtslavecreator is in the lending business and has a bird’s eye view of what the 25% are up to.

#187 Ian on 09.23.17 at 3:26 am

Another factor I forgot in my post: healthcare wait times. If the docs do what they are threatening, even the most ardent supporters of The Snowboarder will turn on him big time!

Early retirement for him. He will be seen as, er, ‘smart’ for not damaging his own family trust funds.

#188 Dolce Vita on 09.23.17 at 3:46 am

Starting to change my mind on the proposed SMB owner taxation plans.

I see no problem with company dividends given out to family members as a way of lowering the tax burden for the owner of an SMB. Large corporations give out dividends to shareholder owner families [which we have plenty of in Canada and they are well heeled], why not SMBs?

The company reinvesting money in whatever assets it sees fit, after paying 15% taxes, I have no problem with either. Nor the dispersal of these funds when the SMB owner retires at a lower MTR.

What assets a company purchases is of no business of the Government other than obvious regulation issues such as Competition etc. It is unlikely our intrepid SMB owners have that high on their list of priorities.

True, this amounts to a life long tax shelter for the SMB owner.

Then so do RRSPs and TFSAs for employees and not forgetting CPP and OAS, the latter which the SMB owner will not receive. SMB owners need an offsetting method for retirement income for not receiving CPP and OAS, if fairness is the goal.

I still have a problem with income sprinkling from a company to owner family members.

Income splitting for working families was capped at $2,000 with child tax credits as the offset. If the Government wants fairness, then do the same for SMB owner families, increase the $2,000 income splitting amount to acknowledge business risk/reward to at LEAST the amount of $2,000 + child tax credits.

#189 Ian on 09.23.17 at 4:02 am

I forgot to give Garth credit for this one:

‘This blog scares the bejesus out of me’ – Garth

Came very close to peeing myself!

#190 Oft deleted much maligned stock.picker on 09.23.17 at 4:42 am

The ‘mining’ business Trudeau Senior ( the last able bodied Trudeau) went into was COAL MINING.

#191 Karma on 09.23.17 at 4:58 am

#57 Vancouver Brit on 09.22.17 at 7:46 pm
“#4 Vancouver Brit

Let me tell you about my brother… he works 60 hours a week running a small business he makes about 160k a year. His wife doesn’t work because their wouldn’t be time for the kids plus who would take care of the household
_______________________________

I don’t see what the wife helping in terms of the family has to do with income splitting? Does that mean if I’m earning $200k working 60 hours as an employee I should also be able to split income with my stay ar home wife?”
——————–
Yes. Her work at home allows you to spend more time at work, which increases the welfare of your family. If you were a single parent, would you still work 60 hours?

#192 Myra Andrews on 09.23.17 at 5:02 am

Not sure if this is okay to post this twitter account. This Vancouver realtor posts several house sales that flopped.

https://twitter.com/hutchyman?lang=en

#193 Stone on 09.23.17 at 7:28 am

#107 Doug t on 09.22.17 at 9:08 pm
#101

You sound like you be a real hoot at a party LMFAO

RATM

————-

Everyone knows how much I love investing and making money and getting my dividends. I make no secret of it. At the parties, 99% are only interested in how that money gets spent though so we talk about that instead. Talking about travelling to exotic destinations appears to be the highlight. Just spent hours yesterday discussing Japan. Only 1% of the audience is actually interested in discussing investment returns and I’m more than happy to oblige. The money gods don’t need converts. They’re very satisfied with the followers they have. Just like I am with my investment portfolio and it’s dividends. LOL.

And anyways, it’s fun for me (I’m a money and investing nerd), doesn’t hurt anyone, and if it helps someone improve their financial lot in life, even better.

#194 Bezengy on 09.23.17 at 7:36 am

So how is the CRA going to know if the spouses actually did any work or not? How many CRA agents do we need to investigate who is being truthful. Seems to me this will just make liars out of a lot of people filing taxes.

#195 Freebird on 09.23.17 at 8:03 am

#183 Fakenews
So please tell me that I am not the only person that thinks that it was “no coincidence” that once Bill Morneau returned from Bilderberg – the tax hikes were announced by Bill and Mr Selfie.
—————
Not sure but this was an interesting read…

https://www.google.ca/amp/s/amp.theguardian.com/world/2017/jun/02/bilderberg-secretive-conference-eric-schmidt

#196 Millmech on 09.23.17 at 8:13 am

125
I hope T2 wins the next election also,since every thing he has done to increase revenue has actually decreased it.
The doctors will easily just cut back on workdays to accommodate the new tax laws and reduce their burden.T2 will not care because he as a politician and is first in line for medical care and if need be with all that sheltered trust fund money he can go south and afford private care.
If your smart you got to ask yourself what is next on the hit list because once they are done squeezing the people in front of you it will be your turn because the smart money will have left by then as it is starting to now.

#197 Freebird on 09.23.17 at 8:19 am

#191 Karma

I don’t see what the wife helping in terms of the family has to do with income splitting? Does that mean if I’m earning $200k working 60 hours as an employee I should also be able to split income with my stay ar home wife?”
——————–
Yes. Her work at home allows you to spend more time at work, which increases the welfare of your family. If you were a single parent, would you still work 60 hours?
—————
My parents ran a small business for close to 40 yrs. He worked the hours of a doctor without the benefits and together they built a very loyal client base. My mother ‘stayed at home’, and kept the books, managed the house finances, and kept FIVE kids fed, alive and well. My dad did what he could to help when he was home. She used to say if I stuck a broom handle up my a** I could sweep the floor too! My dad saw her as a partner and often said there’d be no business without her. I watched my parents work when they were sick (incl post op) because no work no money no food on table. They didn’t ‘whine or complain’ as some on this blog accuse the self employed/ business owners of doing. They paid they’re taxes and some years were better then others. Did they use what tax breaks they could? Of course. And with the extra put the money back into the economy by providing for the family. This scenario could and does describe many family businesses today.

#198 Manitoba Whale on 09.23.17 at 8:33 am

#153 Quit whining! on 09.22.17 at 11:10 pm
And lets tax all dollars earned at the same rate!!! Like a person here once said A Dollar is a Dollar is a Dollar.
Tax everything the same. One rate. Simplify the tax code to one page.
*****

At what rate? 15%? 53?
Starting at what income level? $15,000? 30,000?
Just above your gross income?

Our infrastructure costs money. Wouldn’t be fair if every man, woman, child paid $10,000 each to cover T2’s budget? Or instead hard working Canadians above 18 each pay $20,000 each?
Or how about all businesses pay the entire budget they are rich anyways according to Trudeau and Morneau.

Life is not easy and simple. And math is hard.

#199 Asterix1 on 09.23.17 at 8:38 am

https://www.zolo.ca/toronto-real-estate/trends

Prices up according to Zolo in Toronto (average +5% and median +5.86%)

Is this the start of a dead cat bounce?
or
People did not get the memo yet that interest rates are up+B20+credit crunch+debt
or
Not accurate stats (thought prices were still falling in September)

#200 OttawaMike on 09.23.17 at 8:42 am

#42 Ronaldo
Those without spouses would scream “unfair”, your discriminating against us.
—————————

Already happening. Did you notice the group of docs who favored the tax changes?
May of them are single.

#201 Re., 181 the accountant on 09.23.17 at 8:45 am

A gross socialist .

Anybody want to know why Canada lags behind in SO many areas of business (start ups, techs ..) ? We crush the enterpeners. Will put in mail for small business …. and hope Ford doesn’t close another plant

#202 Debtslavecreator on 09.23.17 at 8:51 am

Dolce vita- from what I have been hearing in the last few days there is no doubt we will see a strong impact
The data in Canada will probably be “good” for September and likely October – credit flow has become the biggest driver of our economy and most of that flows into RE. I have been hearing some of the banks have been declining a lot but to hear that if the GDS at 4.84 doesn’t work then no deal in most cases is a major change
This sharp reduction in credit after a historic debt bubble where the system has so much leverage will feel like applying emergency braking at high speed. I expect to see a sudden and stunning fall in retail sales and GDP and rising unemployment starting in the FIRE sectors
It should result in a nasty recession by next spring
In the long term it is needed but this underwriting practice should have been in place in 2010-2012 not now
Ironically if we slide into this drastic economic problem the CAD will likely drop hard compared to the US and a year from now foreign money should be able to buy a house for 30-50% less factoring in drops in house price and a CAD $
Many borrowers such as my friend who got declined will be stuck at their existing lenders and 2-3-4 years from now if most A lenders base GDS at the high qualifying rate these borrowers will see higher rates because they are stuck and mortgage rate discounts will slowly dry up
So the economy is not likely to collapse but should suffer a hard time for the next 2-3 years as we adjust away from this junk neo liberal RE bubble based economy
I worry more about out of control radical governments raising taxes and changing rules on the fly to desperately tax what they can because their RE bubble tax flows are drying up

#203 Dharma Bum on 09.23.17 at 9:07 am

#159 Ace Goodheart

“Earn money like the 1% do. Ie from not working. Earn your income from dividends and capital gains. Like the 1% who will never be taxed like the middle class.”
——————————————————————

Right you are.

Save.

Invest.

Retire.

Reap.

The Dharma Bum way.

#204 Been there on 09.23.17 at 9:10 am

Germany and many European countries have splitting income taxes and they are all die hard socialists. Some of them even hidden communists. Are they all idiots.?! Germany?! A power house?!

#205 rainclouds on 09.23.17 at 9:15 am

#179 Guido

Concur, ex neighbour was a blackjack dealer in Coquitlam. Middle of the day, young dudes come in 10 grand in every pocket. Didn’t care if they won or lost. No oversight. Shiny BIG new casino opening in DT Van in a week.hope the cameras are turned on this time. Maybe catch Coleman savaging the donut buffet….

BC Lib/Cons skeletons are coming out of the closet almost daily. The duchess of Dunbar was the perma-smile head of a rotten cabbage

Our fault. Get engaged. In particular those Millennials that statistically aren’t

#206 ImGonnaBeSick on 09.23.17 at 9:15 am

I can’t wait for harvest season to be over. Looking forward to all the farmers taking their manure spreaders to Ottawa again. Socks is going to find out what happens when you piss Canadian farmers off.

Anyone complaining about a private corporation distributing dividends has obviously never owned a large cap public company. Should we make it illegal for them to distribute dividends to you dummies? Private corporations are the precursor to Public, so there’s no reason private corps shouldn’t be able to hold retained earnings, have non-operating income, and pay out dividends. Why shouldn’t I be able to give shares of a private corporation to anyone I want?

This proposed change is dotarded at best. Morneau owns a very large pension company. One of the only ways to get around this passive income change will be IPPs. Give your heads a shake, pop a zit, and ask yourselves the real intention of this change.

#207 NoName on 09.23.17 at 9:30 am

Interesting read

https://www.theguardian.com/inequality/2017/sep/21/in-eastern-europe-we-dont-prefer-to-eat-garbage-readers-on-food-inequality?CMP=fb_gu

#208 Tony on 09.23.17 at 9:31 am

Re: #17 Alex k on 09.22.17 at 6:46 pm

Until the FED and central bankers come up with a way to “rig” the price of Bitcoin downward or kill it the price of Bitcoin will likely keep on rising exponentially especially with the U.S. dollar poised to fall to an 80 handle on the dollar index. The original poster is likely correct.

#209 I'm stupid on 09.23.17 at 9:35 am

We can debate tax fairness for an eternity and we’ll all have different opinions as to what is “fair”. There is no such thing as fairness because every situation is different and we all want to be in the most advantageous situation because we all hate paying taxes. I have a few examples of how govt programs negatively affected my personal situation but there are circumstances where govt policy works to my advantage. The point is that as long as govt is that we all feel jaded because the govt is not using tax payer money as efficient as possible. We have a tax and spend govt in every province at every level.

Things I would love to see in my lifetime. Free post secondary education, free prescription drugs and help for poor children so no Canadian child goes hungry. The way in my opinion to increase the quality of life for a country is to have the smartest, healthiest population. Then let them fly.

#210 truthbetold on 09.23.17 at 9:47 am

Garth – Don’t pretend to know how this new legislation will be written. It will likely be tweaked and 98% of what you are complaining about day after day will be addressed.

#211 Pete on 09.23.17 at 9:59 am

Does an employee making $60k with a stay at home wife able to income split? Didnt they get rid of that?

#212 Cpdlc on 09.23.17 at 10:02 am

How do all you T2 worshippers think this will end. Do you honestly think Canada will turn into some socialist utopia once the government taxes the “rich” to oblivion? Small/medium businesses, farmers Doctors, entrepreneurs. Increasing Capital gains/dividend tax, wealth tax, inheritance tax, property tax, carbon tax… will all these measures satisfy your envy and loathing for the so called rich? Probably not.
This doesn’t end like Norway or Sweden or any of those sunshine and rainbows Country’s you all like to praise, not even close.

This ends with small businesses going bankrupt with their owners losing everything without any social safety net you all think everyone but “rich” people deserve. Successful business will be snapped up by large corporations because guess what? A small business can’t compete when their tax rate 50% higher then a large corporation.

This ends with family farms selling out to large farming conglomerates because what individual in their right mind would even consider buying a farm under this small business tax scheme.

This ends with Doctors/specialists leaving Canada as we enter our own “grey wave” of boomers ageing, and newly trained doctors not bothering to start a practice in this country to begin with.

And finally this ends with the only wealth left in this Country in the hands the of 0.1% you know the people that somehow are left out of the conversation when T2 talks about fairness. How would it ever be possible for a small/medium business to become “Large” if these measures are passed? That’s right the couldn’t. How blatantly convenient for the true powers that be in Canada. T2’s true friends.

#213 Pete on 09.23.17 at 10:03 am

#183 Fake News Again on 09.23.17 at 2:56 am
So please tell me that I am not the only person that thinks that it was “no coincidence” that once Bill Morneau returned from Bilderberg – the tax hikes were announced by Bill and Mr Selfie.

Don’t forget the sudden change of heart for interest rates from pause to up and up and up.

#214 Jay (not that one) on 09.23.17 at 10:18 am

You can keep crying for the poor business owners and how they’re being oppressed by not being able to claim certain things on their taxes any longer, but it’s going to continue falling on deaf ears.

You get into business for yourself because you think you can make more money that way, not because the government is giving you incentives to do so. If the only reason you go out business for yourself is that there’s a tax advantage in doing so, particularly if you’re working for the same amount of money for the same company you would have otherwise, then that’s exactly what is being targeted here.

As for “creating jobs”, if the job yours creating is paying your wife and kids to exist for tax purposes, then I’m afraid I’m not really impressed. Numbers look great, but there’s no actual effect on employment. You’re not going to stop supporting your family just because there’s no longer a tax write-off for it.

I’m center-right on this topic. If you’re not convincing me, then you’re really not convincing anyone else, besides the echo chamber of people who already agree with you.

#215 Ian on 09.23.17 at 10:21 am

“Why the Liberals decided to take on small business corporations” – and not house speckers as another Globe article said?

I know exactly why. It’s because they calculated that falling house prices will murder their reelection chances, and these tax proposals won’t. They’re bang on on the former, not so much on the latter.

And because of this, although I make fun of the OSFI B-20 doubters, it’s not hard to see a scenario where behind the scenes Wild Bill et al are leaning on OSFI hard to not do it.

https://beta.theglobeandmail.com/news/politics/liberals-tax-reform-small-business/article36364102/

#216 Yuus bin Haad on 09.23.17 at 10:32 am

Do the proletariat really think that this time there going to be invited to the dacha for sure?

#217 How much is too much? on 09.23.17 at 10:39 am

It’s a classic debate. People with money want to keep it. People without want it given to them.

That’s fine – up to a point. People throw around a lot of terms, tax cheats, third world services.

It comes down to this. How much tax is enough? 50% 75%? How much to you take from them? Some people are going to work harder, be smarter, and make more than others. Some will just be lucky.

People need to realize that there is an upper limit to the amount of taxes you can collect. Will these changes hit that limit?

I don’t know. 75 days of study means the government doesn’t know either.

People need to understand this is really about getting votes. Those who love T2 need to realize this. It’s not about fairness, it’s about keeping power.

This isn’t the first or last time we see hypocrisy from our government.

There’s always been a war between have and have nots.
This government is starting one between generations, with doctors, and crazy people who think they should start a business.

There are a lot of people in denial that repeatedly show up in the comments section.

#218 Wrk.dover on 09.23.17 at 11:25 am

I wrote in a year ago that you can’t make money making money. Anyone believe me yet?

Meanwhile I just correctly re-bent and MIG welded the cracked gizmo and rod ends that raises the deck on my ride on mower back to life in thirty minutes, saving hundreds of dollars potentially of after tax income, including a pick up and delivery of it.

Tool up everyone, money not spent is the only money to be made in this era.

#219 Pre-retiree on 09.23.17 at 11:39 am

Now you’ve done it, Garth!
The thought that the existing tax rules for the CCPC might result in producing more T2s in the future is almost enough to make me reconsider my opposition to the proposed tax reform.

#220 Stone on 09.23.17 at 11:56 am

#203 Dharma Bum on 09.23.17 at 9:07 am
#159 Ace Goodheart

“Earn money like the 1% do. Ie from not working. Earn your income from dividends and capital gains. Like the 1% who will never be taxed like the middle class.”
——————————————————————

Right you are.

Save.

Invest.

Retire.

Reap.

The Dharma Bum way.

———–

My heroes. You always know exactly the right thing to say.

#221 The Fat Lady on 09.23.17 at 12:00 pm

So the SACRIFICES a doctor or small business owner makes throughout there life is not enough to be considered paying there fair share. The late nights and years of studying, cancelling all those events to take care of business including your employees.

Yet A guy who smokes dope all throughout high school and doesnt go to college can just get a job be considered middle class and I gotta give up more money out my pocket to account for is lazy ass.

What a shame this governement is!!!!

#222 maxx on 09.23.17 at 12:07 pm

Hardly anything nations do today happens in a vacuum.

Economic reform seems to be the global make-work flavour of the day, T2 was “advised” by various high-level entities to fix the economy and that’s exactly what he regurgitated at the UN.

http://www.cbc.ca/news/politics/justin-trudeau-un-speech-general-assembly-1.4300602

What will be just a wee tad more difficult to “fix” (obtuse use of the word) will be ubiquitous government waste and metastasizing debt levels, no matter how much blood is pumped out of debt-riddled taxpayers.

What will be insurmountably difficult to “fix” will be the number of people, many of whom voted for selfie king, he has managed to pi$$ off. It seems that hardly a day goes by without a chorus of voters declaring he won’t get their vote next time around……and he’s got 2 more years to pi$$ people off even more.

He’s pi$$ed off forward-thinking savers of all ages, including seniors by gelding the TFSA, for one;

He’s pi$$ing off the middle class (at present nowhere near max annoyance – wait for it);

He’s pi$$ed off small businesses, likely the most motivated and innovative economic engines of society – some of which are beginning to migrate away from Canada, no doubt more to follow;

The irreverence with war vets by way of one-armed pushups and crass braggadocio with some of our closest allies is toe-curling. “Boom!”. Really? “Boom”?

By all means ferret out tax cheats and have them pay their fair share, but with a view to growing wealth across the country’s entire prudent, wealth-building demographic. Simultaneously staunching the chronic sickness of indebtedness by raising rates is beyond long overdue. Indebtedness is a major drag on economic health.

How can the “middle class” ever forget the video footage referencing his “family fortune”. Canadians are waiting for details as to the tax treatment of this fortune.

…….a “lifestyle” galaxies apart from most Canadians.

Fascinating to see how many more Millennial voters he manages to pi$$ off by end of mandate.

The “middle class”, as it is so fondly referred to, is audibly cleaving loyalty.

#223 Increase those taxes on the rich now! on 09.23.17 at 12:34 pm

For those who want to punish small business owners:

I want you to know how absolutely terrifying it can be. Making payroll, paying bank loans, demanding customers, competitors who are always trying to kill us.
It’s really, really hard.

Let me propose this compromise.

I’ll pay more taxes if the rest of you guarantee all my loans, top us off in the lean years, and give me a small pension at the end.

That way I could cut back on the hours, stop spending my weekends studying the competition. Actually sit by my pool.

Heck I’d even give up the pool, stop flying business class, and sell at least one Porsche. I’d even hire another person or two.

For those stressed millennials who think student loans are bad, you need to get a couple business loans. That’s next level stress.

Those unfair, under taxed retained earnings? That’s called a cushion so I don’t need to fire everyone when the next recession hits.

It’s for 2 years from now when I need to replace a $3 million piece of equipment that runs 24/7 and gives 5 people a job.

The business needs to make some money on that savings. If you increase taxes it takes me 3 years to buy that machine.

All those student loans and not one of you understands economics.

This blog isn’t pathetic. You kids are.

Now run to mommy and tell her how I triggered you and hurt your feelings.

#224 genbizx on 09.23.17 at 12:44 pm

vote the liberals out…everywhere…and reverse whatever damage they’re doing

#225 Ronaldo on 09.23.17 at 12:48 pm

#189 Ian on 09.23.17 at 4:02 am

I forgot to give Garth credit for this one:

‘This blog scares the bejesus out of me’ – Garth

Came very close to peeing myself!
—————————————————————-
Maybe time to consider a stash of Depends if you plan to continue following this blog. lol

https://www.depend.com/mens-solutions/products

#226 kommykim on 09.23.17 at 1:12 pm

RE: You mean like inheriting trust money you didn’t work for? — Garth

See my comment in post #7
http://www.greaterfool.ca/2017/09/22/embarrassing/#comment-542875

It seems that you want to saddle the next generations with more Trudeaus and Trumps by allowing the wealthy to avoid taxes and pass the money on tax free to their spoiled rotten spawn. This is why we need to get rid of these tax loopholes that the CONs want to keep open.

But you were being deliberately obtuse in your comment to Vancouver Brit’s post (#4). Those “shares” I was talking about aren’t inherited because the owner is still alive and running the business. In fact there aren’t actually any “shares” changing hands at all, but somehow the CONs and their ilk seem to think it’s OK to siphon money out of a business and spread it around to family members to avoid taxes.

If a man and a woman start and fund a business then share the proceeds through dividends, it’s okay. If they’re married they become tax cheats? I thought you and T2 were feminists. Sounds misogynistic to me. — Garth

#227 MF on 09.23.17 at 1:20 pm

#223 Increase those taxes on the rich now! on 09.23.17 at 12:34

So tired of this.

No one wants to “punish small businesses”.

The only reason why these clowns got voted in is because of some pathetic hate Harper campaign, and some who voted for electoral reform apparently.

M34ON

MF

#228 joblo on 09.23.17 at 1:39 pm

Embarrassing.
Don’t the Lieberals get how bad T2 is?
Are they as stupid as those who voted for them?

#229 Stone on 09.23.17 at 1:58 pm

#221 The Fat Lady on 09.23.17 at 12:00 pm
So the SACRIFICES a doctor or small business owner makes throughout there life is not enough to be considered paying there fair share. The late nights and years of studying, cancelling all those events to take care of business including your employees.

Yet A guy who smokes dope all throughout high school and doesnt go to college can just get a job be considered middle class and I gotta give up more money out my pocket to account for is lazy ass.

What a shame this governement is!!!!

———————

And there is your answer. Work smart, not hard. As a result, complain less.

#230 Lost...but not leased on 09.23.17 at 2:15 pm

Intriguing is T2 and Moroneaus timing.

Garth’s blog has been doing an excellent job of warning of Real Estate inevitable crash…it was just a matter of when.

Pierre Trudeau effectively pitted East versus West..his NEP was one major blow against Alberta. His arrogance was legendary…I recall seeing him at UBC and a question was submitted re: a policy that he had implimented right from the Tory’s platform yet claimed he would never do it.

Trudeau answered flippantly that it wasn’t in place then and wasn’t in place now..so whats the problem?

I think the warning sign is that unlike his father’s regional attacks…T2 is showing no such” discrimination” he is attacking the middle class in each and every province and at the worst time possible.

Surely when he got into office he knew that the economy was in bubble mode..so why launch another attack ?..and be the final straw ?

The only rational is that he is part of some global cabal whose agenda was to set each nation up for a synchronized economic collapse.

Fast forward to T2

#231 Sherrillvwiseman on 09.23.17 at 2:16 pm

Trudeau is a liar and should take his place up beside Trump. He is doing as much or more damage to a huge swath of Canadian as Trump is too America. He is justvexcused because he’s cute, I guess to some.

#232 Lost...but not leased on 09.23.17 at 2:34 pm

Richmond casino et al..

Thanks for providing the report..

As many are aware..the host City gets a cut of the annual revenue. It appears that River Rock generates the highest revenue in BC.

However, it appears that RiverRocks revenues have peaked, and likely due to the clampdown on laundered money.

So…what’s the problem?

City of Richmond has spent the casino revenue like a drunken sailor, as opposed to rainy day funds. They originally dedicated over $50 Million of casino funds to the white elephant called the Olympic Oval.

They have engaged in massive upgrading of several civic facilities.

So..whats the problem?

Like many cities where Real Estate as gone wild…they have benfitted greatly from property taxes not just on existing homes, but on new development.

Question is…what are they doing with this gravy train…one may debate and question peoples brain dead gains in a hot Real Estate market…but lets not forget Gov’t huge take as well. Cities rake in milions EXTRA each year…where does it go..AUDIT please?

In Richmond, if casino revenues go down…is the city so leveraged on capital projects it has to raise taxes…makes no sense? ie Richmond has several multi family projects be built each year..as well as much industrial commercial land re zoned…that is over and above average revenue.

#233 crowdedelevatorfartz on 09.23.17 at 2:39 pm

@#230 Lost

“The only rational is that he is part of some global cabal whose agenda was to set each nation up for a synchronized economic collapse….”
+++++

Paranoid conspiracy theorum….
Is that what passes for an “education” at UBC these days?

I see it’s time for me to “spread the wealth” in the elevators of the residential Gage towers in order to expand those bright young minds of tomorrow……

#234 Lost...but not leased on 09.23.17 at 2:44 pm

For what its worth….

Re Bloodlines…

A young girl in the US did a genealogy chart of all the US Presidents, and found all of them were related to some degree….aka as FDR said.”.Presidents are selected, not elected”.

T2….well his mothers maiden name is SINCLAIR….one of the major players in histories bloodline game.

#235 FOUR FINGERS WATSON on 09.23.17 at 2:55 pm

Embarrassing ? Not a chance. Turdo is very pleased with himself, just observe his body language and his smug little smile. He’s the Man and he knows it.

#236 T on 09.23.17 at 2:57 pm

#161 Dmitry on 09.22.17 at 11:49 pm
#23 Mark

Did you ever owned a business?
Or have you been incorporated or contracted?
This is total BS that has nothing to do with reality.

It’s very obvious Mark doesn’t do much of anything, he has far too much time on his hands. I would suggest ignoring him like I do.

I actually (accidentally) read some of the post you are replying to and was instantly irritated. His bolding of paragraphs in his comments can get your attention.

#237 Lost...but not leased on 09.23.17 at 2:59 pm

Re small business.

Small business is already under attack by Local Gov’ts who mercilessly re-zone industrial and commercial land to multi – family residential. If one owns or rents this land…cost of business go way up simply via taxes.

City of Richmond is one of the worst for this…much of the commercial land is rezoned to hi -rise…driving many businesses out, or forced to re-locate miles away…but no new commercial land to replace it.

Re capital gains..some landlords simply sell the land because of the high taxes,etc. …but my understanding is they have a year to purchase/reinvest comparable property or be hit big time with taxes. This then results in higher bidding for whatever comparable land is available..a vicious circle ensues.

#238 Punisher on 09.23.17 at 3:06 pm

MF you’re wrong. I am being punished. It took my freedom, risk, money & sweat to build a business. people are calling me a tax cheat. Pay up they say.

I’m literally being called a criminal because I keep some money in a holdco, instead of paying out the whole amount as income.

I choose this – I don’t have a surplus of income, I take out enough to live on and keep the rest in a legally reduced tax entity. There are other reason for this. Creditor proofing the operating business is one.

There are dozens of reasons for this. It’s not about dodging. Maybe NAFTA gets changed and I have to open a US office. Maybe I can buy a competitor.

The tax cheats are not in legal holdcos that pay 15% tax year instead of 50%. It’s the 2 trillion in the Cayman Islands.

Tax cheats may literally be our prime minister and finance minister. Either one of them could have an offshore account. That would be wild.

This is political games on the part of the government and it’s working! People are mad at holdcos and

#239 Lobster Man on 09.23.17 at 3:22 pm

#148 Dolce Vita,

I agree that the median selling price, when available, is a better set of numbers than the average.

Here is another example of an “out-of-the-ordinary” selling price in the Vancouver Westside in this past year:

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

This is an SFH lot that was sold in September 2016 for 6 million dollars.

Again, it was for the same reasons as the example I previously cited: potentially a much higher F. S. R. (Floor Space Ratio) that would be allowed in the upcoming potential rezoning of the area.

According to my guesstimate, there have been approximately 60 properties sold during the past 12 months in the same manner, along this Cambie Phase 3 Corridor Area. And that is just my guess.

LM

#240 Manitoba Whale on 09.23.17 at 3:31 pm

#230 Lost…but not leased on 09.23.17 at 2:15 pm
Intriguing is T2 and Moroneaus timing.
The only rational is that he is part of some global cabal whose agenda was to set each nation up for a synchronized economic collapse.
*****
Yes…or… perhaps T2 and his groupies misjudged the strength of his popularity.
Or perhaps they misjudged the complacency of the electorate.
Or through confirmation bias the policy wonks he employs gave him and his entourage information not in sync with all Canadians and the better good of Canada.
Who knows, but willingly kill the economy?

In the end his Teflon is getting more and more scratched. The stage is being set for Scheer and perhaps the cool NDP dude to have a chance to schmooz their way into office in 2019. Vote according to your conscience.

#241 Hoopla on 09.23.17 at 3:38 pm

Just to confirm, aren’t the rules available to the Trudeau family trust still available to all small business owners?

#242 Karma on 09.23.17 at 3:38 pm

#197 Freebird on 09.23.17 at 8:19 am
#191 Karma

I don’t see what the wife helping in terms of the family has to do with income splitting? Does that mean if I’m earning $200k working 60 hours as an employee I should also be able to split income with my stay ar home wife?”
——————–
Yes. Her work at home allows you to spend more time at work, which increases the welfare of your family. If you were a single parent, would you still work 60 hours?
—————
My parents ran a small business for close to 40 yrs. He worked the hours of a doctor without the benefits and together they built a very loyal client base. My mother ‘stayed at home’, and kept the books, managed the house finances, and kept FIVE kids fed, alive and well. My dad did what he could to help when he was home. She used to say if I stuck a broom handle up my a** I could sweep the floor too! My dad saw her as a partner and often said there’d be no business without her. I watched my parents work when they were sick (incl post op) because no work no money no food on table. They didn’t ‘whine or complain’ as some on this blog accuse the self employed/ business owners of doing. They paid they’re taxes and some years were better then others. Did they use what tax breaks they could? Of course. And with the extra put the money back into the economy by providing for the family. This scenario could and does describe many family businesses today.”
——————————————-
Freebird,
I think you are directing your story at me, but should be directed at Vancouver Brit, as I was responding to his question about if his wife was at home, should he be able to split his income with her. I said “Yes. Her work…”

FYI, my parents had a small business in Canada for 30 years before retiring in 2015. I’m a beneficiary of income sprinkling, but I think it’s wrong in how it was used. Income splitting as per Harper’s legislation seemed more fair to me, which would be applicable to Vancouver Brit’s situation.

#243 Karma on 09.23.17 at 3:51 pm

#211 Pete on 09.23.17 at 9:59 am
“Does an employee making $60k with a stay at home wife able to income split? Didnt they get rid of that?”

Yes, because it punishes the “rich”.

https://www.liberal.ca/realchange/ending-unfair-tax-breaks/

#244 Ace Goodheart on 09.23.17 at 3:53 pm

Re 226 kommykim: Garth’s response: man and woman running a business versus man and woman who are married running a business.

Overall it is a tax liability to be married. Even for CPP you get more if you are separated. And separated spouses can legally income split (spousal support is tax deductible to the payor) wheras married couples cannot.

Separated spouses can claim two primary residences. Married spouses can claim only one (this makes a BIG difference for capital gains). With the soon to be imposed empty house tax there will be further tax savings here.

And yes a man and a woman who are not married can operate a business together and split the profits wheras a married couple will soon not be able to do this.

Kinda makes you want to get divorced….

#245 Ronaldo on 09.23.17 at 3:59 pm

Interesting article on the unaffordability of housing in Vancouver.

http://www.scmp.com/news/world/united-states-canada/article/2089031/david-and-goliath-priceless-vancouver-academic

#246 Karma on 09.23.17 at 4:04 pm

#214 Jay (not that one) on 09.23.17 at 10:18 am

“Numbers look great, but there’s no actual effect on employment. You’re not going to stop supporting your family just because there’s no longer a tax write-off for it.”

It very well could have an effect on individuals that get less hours because the owner now has less after tax income. Someone going from 40 hours to 35 hours a week could face some real challenges paying their bills. We don’t know how the business owners will react, but we do know that they will react in some fashion. It won’t likely be net positive for those individuals who work for small businesses affected the most.

——–
“I’m center-right on this topic. If you’re not convincing me, then you’re really not convincing anyone else, besides the echo chamber of people who already agree with you.”

I was chatting with an SVP of my company who was in town from Calgary (I live in Van). He’s as right-of-centre as you get. First day I met him was Oct 19, 2015. He was livid. Anyways, he agrees with Trudeau that there is abuse of the system via income sprinkling, and he knows several tax and accounting professionals whom abuse it. Fair point, I agreed with him. But then I said most people aren’t angry about the income sprinkling reform, they are upset about the passive income taxation change. And he agreed with me! So it’s very important to be clear about what portions you are reform is “convincing” versus “not convincing”.

#247 S on 09.23.17 at 4:17 pm

Would someone please clarify once for all, is T2 proposing to impose a 73% tax on the retained earnings or is he proposing to impose 73% tax on the profit made on the invested retained earnings? Big difference between the two.

#248 n1tro on 09.23.17 at 4:47 pm

Is this an example of what goes around coming around? City being sued for not accomodating and allowing said individual to burn stuff inside public office.

https://www.thestar.com/news/gta/2017/09/22/torontos-indigenous-consultant-resigns-files-human-rights-complaint.html

Is diversity still our strength?

#249 Screwed Canadian Millenial on 09.23.17 at 4:50 pm

#110 SWL1976 on 09.22.17 at 9:12 pm

You understanding any of this SCM???

—————-

I helped Garth with the numbers.

#250 Screwed Canadian Millenial on 09.23.17 at 4:51 pm

#157 Dmitry on 09.22.17 at 11:31 pm

Hey screwy, what’s your concern with Smoking Man entering Canada?
Why don’t you report it yourself to CBSA, CRA, CISC, her majesty queen, JT personally, etc?
Why that has to be someone else, not you?

—————-

Dmitry. I was kidding about Smoking Man. It was a joke. You ever heard of those? Calm down man you sound unhinged.

#251 Screwed Canadian Millenial on 09.23.17 at 4:52 pm

#106 Smoking Man on 09.22.17 at 9:07 pm

I know people you little shit.

———————–

The nasty hookers you have to pay hardly count Smokey.

#252 Screwed Canadian Millenial on 09.23.17 at 4:53 pm

#125 Millennial Realist on 09.22.17 at 9:45 pm

http://www.greaterfool.ca/2017/09/22/embarrassing/comment-page-1/#comment-542996

Boy oh boy, Millennial Realist ripped you boomers a new one.

#253 Small bus owner on 09.23.17 at 5:21 pm

Anybody remember what happened in 08?

Because of current tax laws our business survived because I had left retained earnings in the business, no employees were laid off, we hunkered down, worked hard and had NO profits only loses for 5years!!!

If these changes happened businesses will fail and workers will lose they jobs.

Simple economics

#254 Lost..but not leased on 09.23.17 at 5:35 pm

Re Turdeau and Moroneau..

Politics is timing and optics….
Killing the economy?

Whether intentional of not…they have set in motion enough uncertainty to perhaps create a self -fulfilling prophecy ? Even if they ratchet back a lot of moves they have spooked the citizens

Perhaps review the Great Depression and its roots….16 years after the Federal Reserve was created(as a means to buffer/regulate/ stop economic collapse lol).

Where was Winston Churchill ?..he was a guest of the NYSE on Black Thursday Oct. 24, 1929…and he realized it was no fluke..it was to show who really ran the show.

Other than perhaps Iceland….submit nations who aren’t vulnerable to both foreign and domestic economies…they seem all ripe and primed for a big time reckoning.

“All Wars are Bankers Wars”

History has shown that when the SHTF, we enter into major global conflicts….and the global herd gets culled ….stir and repeat.

#255 IHCTD9 on 09.23.17 at 7:01 pm

#218 Wrk.dover on 09.23.17 at 11:25 am

Meanwhile I just correctly re-bent and MIG welded the cracked gizmo and rod ends that raises the deck on my ride on mower back to life in thirty minutes, saving hundreds of dollars potentially of after tax income, including a pick up and delivery of it.

Tool up everyone, money not spent is the only money to be made in this era.

——

Everyone read the above statement two or three times.

Not to mention the taxes not paid on the parts, fuel, and services not purchased.

I think and do like this every day. Not because I need the money, but because I don’t want to give the fools in Ottawa any positive reinforcement whatsoever.

Rest assured, I am fully “tooled up”…

#256 45north on 09.23.17 at 8:55 pm

Bombardier:

Andrew Coyne: Whereas it is increasingly clear the federal government, at least, views itself and Bombardier as being one and the same.

http://nationalpost.com/opinion/andrew-coyne-the-odd-merger-of-bombardier-and-the-canadian-government

Andrew Coyne makes the point that the Quebec and Federal Governments have massively subsidized Bombardier.

However, the Federal Government has not allowed Bombardier’s new C-Series to land at Toronto Island Airport. If it did, Porter Airlines would immediately buy it. The demonstration of Canadian aircraft providing a niche service in Canada would give Bombardier a huge boost in its effort to sell them in North America.

Here’s a piece I posted July 2017:

http://www.greaterfool.ca/2017/07/16/relationships/#comment-528446

Here’s a Globe and Mail article pointing out the main political issues:

https://beta.theglobeandmail.com/report-on-business/liberal-opposition-to-jets-at-billy-bishop-airport-kills-bombardier-order/article27074974/?ref=http://www.theglobeandmail.com&amp;

Political inertia is hurting the Canadian airline industry and it’s hurting Toronto. The GTA housing market is in free fall. It’s going to impact the economy and when it does people are going to come up with ideas – such as expanding Toronto Island Airport. On that day, the Island Airport won’t have the runway; Porter Airlines won’t have the planes and it won’t have the routes.

#257 45north on 09.23.17 at 9:22 pm

Home Capital Group:

According to a source, subsequent spot checks discovered that a significant proportion of applications coming from the Accelerator unit were missing information.

Eventually, the individual in the risk department escalated their concerns to the board, the source said.

http://business.financialpost.com/news/inside-the-rise-and-fall-of-home-capital

#258 Braj on 09.25.17 at 3:02 pm

#2 Bitcoinnaire on 09.22.17 at 6:26 pm
Thank goodness my assets are decentralized and government can’t get to my Bitcoin or really even gauge how much I own (for taxation schedules) no matter how hard they try to scrape the bottom of the barrel for extra revenue.

And they’re increasingly desperate it seems.

Is there any point in trying to get in the game now?

What makes you think bitcoin will continue to be valuable? Is it bitcoin that will be biggest, ETH? Another Cyrpto?

Where do you see this technology going?

#259 Bumblebee on 09.25.17 at 6:24 pm

Trudeau inherited $1.2 million. That’s not middle class, but when you consider what a house costs in the GTA, that is not filthy rich either. Especially when you consider that Harper was the son of an oil executive…who went straight from school to the mail room to politics. Another rich boy who didn’t do much before becoming leader, so it’s a little rich that all the scorn is being heaped on T2.

http://www.huffingtonpost.ca/2015/10/24/justin-trudeau-net-worth_n_8374458.html