Envy

Sunday midnight’s the drop-dead date for USMC – the successor to NAFTA. As this is written, our earnest little beavers are squabbling with the weasels, trying to do the deal which will (a) save T2’s political butt, (b) not screw up Monday’s election in Quebec and (c) prevent a Biblical Trumpian tariff on maple-made cars that would hammer southern Ontario.

No deal by Sunday night means no signing-off by the outgoing Mexican president, and will incur the wrath of the White House. In contrast, a document formalizing things could throw gas on the TSX and push your mortgage rates higher.

No deal by tonight would be shocking, a setback for the economy and an abject failure for the federal government.

    

Meanwhile, remember that 2015 election pledge by the Libs to steal from the rich and give to the poor?

We will cut the middle income tax bracket to 20.5 percent from 22 percent – a seven percent reduction. Canadians with taxable annual income between $44,700 and $89,401 will see their income tax rate fall. This tax relief is worth up to $670 per person, per year – or $1,340 for a two-income household. To pay for this tax cut, we will ask the wealthiest one percent of Canadians to give a little more. We will introduce a new tax bracket of 33% for individuals earning more than $200,000 each year.

The new tax structure, pushing the top marginal tax rate in most provinces to around 53% – so high-income earners lose more than half to government – was supposed to raise $2.8 billion a year, rising to almost $3 billion by 2019.

Well, guess what? Ottawa was punked.

According to a new study, the decision to Hoover one-percenters has backfired. Only a portion of the expected revenue has materialized, and when provincial taxes are factored in, the tax is actually costing money. Seriously. Instead of raising $3 billion, it’s netted $1.2 billion and created provincial losses of $1.3 billion. Yes, the 99% are subsidizing the 1% by about $100 million annually. More proof, if you need it, that higher taxes don’t work.

The CD Howe’s report, “Unhappy Returns: A Preliminary Estimate of Taxpayer Responsiveness to the 2016 Top Tax Rate Hike,” is an indictment of the Dick-&-Jane quality of federal Liberal fiscal policy. When taxes are increased people change their behaviour to avoid them. They take income in other forms than salary. They invest in assets instead of absorbing the cash flow. They shovel cash into RRSPs.

The Lib eat-the-rich tax is a textbook example. By pushing the marginal rate past 50%, a tax level many people thought was tough but fair was rendered extreme. Giving more than half your gross income to guys who are spending their way into oblivion doesn’t sit well. So, avoidance strategies kicked in. The windfall T2 expected fizzled. As tax guru Jamie Golombek sums it up:

Previous studies have shown that top income earners, when confronted by an income tax increase, are likely to change their behaviour in various ways: some may reduce work effort by choosing leisure over more work, while others may plan their affairs in a way to minimize their tax burden. In other words, high tax rates may discourage earning additional income and may encourage shifting taxable income to different forms, times and jurisdictions. High rates may not only negatively affect the economy, but they may add little to, or, as the study shows, even reduce, government revenues.

So as the one-percenters altered the way they get paid, it eroded the national personal taxable income base, upon which provincial tax revenues are rooted. The result was a hit to their treasuries larger than the total amount being collected by Ottawa. So, the great idea about soaking the rich (272,000 people) to finance a cut for the rest (8,000,000 people) is as puerile and sophomoric as it sounds.

By the way, the top US tax rate (37% federally) kicks in at $500,000.

Recommends the report:

High personal taxes disadvantage Canada in the competition for global talent. Lower personal income taxes in the US, in particular, hurt Canada’s attractiveness to high earners, and its appeal as a location for head offices. A small reduction to the top tax rate would cost little federally, while provinces could enjoy a windfall because of its positive impact on the taxable income base.

Envy taxes are all the rage now, I know. BC’s about to bring in an enhanced speculation tax designed to punish people wealthy enough to own two properties. As popular as these may be with the pissed-off deplorables and lefty Millennials, they’re merely political sops to the masses, not good economic policy. Plus-50% income taxes are as myopic as gutting the TFSA contribution – the most democratic tax shelter of all.

We may get the country we deserve, after all.

172 comments ↓

#1 For those about to flop... on 09.30.18 at 4:15 pm

Recent sale report.

The media seems pretty keen to tow the line that only the luxury market is getting whacked but cases like this help pour a bucket of cold water on all that.

The details …

3255 Mayne Crescent, Coquitlam

Paid 900k August 2016

Sold 849k August 2018

Originally asking 1.09,it finally went for 848k

No one is totally safe that bought after 2015 at this stage unless they sold and exited the market.

That is the Mayne point…

M44BC

Sold early August.

3255 Mayne Crescent, Coquitlam paid 900k August 2016 ass 912

Apr 4:$1,099,900
Jul 27: $848,000
Change: – 251900.00 – 23%

https://www.zolo.ca/coquitlam-real-estate/3255-mayne-crescent

https://www.bcassessment.ca/Property/Info/QTAwMDAzWFhTRw==

#2 For those about to flop... on 09.30.18 at 4:16 pm

Recent sale report.

This one has a bit of a crust on it, but they still haven’t updated the database to run it as confirmed.

I just saw the result, and a guy by the name of Gary Smith who helped me out multiple times was interested and so I will pass it on.

The details…

Paid 920k April 2016

Sold 897k June 2018

So even though they bought something relatively affordable it still didn’t pay off.

The tide seems to have turned and the water will wash over the Delta…

M44BC

7333 113 st,Delta.paid 920k asking 914

Now asking 914k

___________________________________________

176 gary smith on 01.18.18 at 1:11 am

And another about to flop in Delta-Scottsdale.

Purchased in April 2016 for 920,000
Listed (“updates!!”) for 938,800

https://www.zolo.ca/delta-real-estate/7333-113-street

https://www.bcassessment.ca/Property/Info/QTAwMDA1VkZENg==

#3 Jackofalltrades on 09.30.18 at 4:21 pm

I thought the 53% tax rate kicked in at 225k, not 200k?

#4 eightlock90 on 09.30.18 at 4:26 pm

My heart pumps purple piss for people in BC who own multiple properties.

These are truly the most hard done by people in Canada. Thoughts and prayers.

Just as stated; envy tax. – Garth

#5 Alessio on 09.30.18 at 4:32 pm

How does a single income over $115,000 reduce taxes? I’ve already maxed out RRSP and TFSA. I don’t own RE or have debt. Higher taxed investments are in tax sheltered accounts. What else can I do???

#6 Stan Brooks on 09.30.18 at 4:35 pm

So the financial ‘wiz’ daddy’s boy wild bill was wrong and the doctors and small businesses won’t work extra time giving up more than half of their hourly wages for his budget? They should be punished with more taxes.

This loss is actually outstanding success, considering his other flops, including the defunct pipeline at a cost of 5 billions.


High personal taxes disadvantage Canada in the competition for global talent. Lower personal income taxes in the US, in particular, hurt Canada’s attractiveness to high earners, and its appeal as a location for head offices. A small reduction to the top tax rate would cost little federally, while provinces could enjoy a windfall because of its positive impact on the taxable income base.

That was funny, I guess our vision for top global talent is of basement dwellers who are willing to pay 20 times their before tax yearly (35 times after tax) salary for a crash shack or a glass condo for the privilege to enjoy the bitingly cold ‘beautiful’ Ontario winters.

#7 Dolce Vita on 09.30.18 at 4:36 pm

puerile and sophomoric

I like those words a lot.

Because in 2 simple key words you have captured Trudeau perfectly be it the NAFTA negotiations up until now, over compensating talk about gender and identity, profuse/disingenuous apologizing, narcissistic attire both foreign and domestic (and behaviour), Robin Hood’s antithesis (as discussed today) and on, and on.

You can turn a phrase Turner. Indeed you can.

#8 The Great Gazoo on 09.30.18 at 4:47 pm

Garth, these platforms helped the Liberals get into power and that’s all that matters to them. Who cares about the impact on the finances, just add a few more billion to the national debt.

Until the masses understand the impacts, as you are communicating, and vote accordingly – nothing will change.

Look at the Trumper, he told the masses his number one priority is the middle class – he was going to take care of them, nothing could be further from the truth. And he got elected. Though in the US the Hillary alternative wasn’t very appealing to many. Sad.

#9 Stan Brooks on 09.30.18 at 4:48 pm

#5 Alessio on 09.30.18 at 4:32 pm

If I am to impersonate T2 or wild bill I will call you a ‘tax cheat’ for trying to avoid paying ‘your fair share of taxes’ as the liberals understand it (that means all of your money, none from theirs, that are hidden in numbered corporations and french villas abroad).

But as I am not them I will tell you simply: you can’t.
Joining the real estate Ponzi scheme is suicidal at this point, moving to the states if socks boy does not screw NAFTA could be your best choice.

————————————

#4 eightlock90 on 09.30.18 at 4:26 pm

People with multiple properties in BC are rich and should pay up.

See, it hurts. One wonders when will they say:
People with money and investments in their RRSPs should pay up for the retirements of the rest
It is about equality after all, right? I give it 5-10 years for public thinking to evolve in that direction.

So keep building that nesting egg folks, keep up the good work, I am sure it will be use properly (probably not by you but that is a small detail in the big scheme of things).

#10 SoggyShorts on 09.30.18 at 4:48 pm

#118 Stan Brooks on 09.30.18 at 3:58 pm
Keep on cherry picking specific examples pal, doesn’t make it any truer.

You said 10 years, and then pick 12 years because it most closely fits your BS narrative. What about the 4 years prior that had a price freeze with 0% increases?

In November, 2006, when the Ontario Energy Board set the first new rates after a four-year freeze,

Should be 16 years that we look at, not 12, eh?

Beyond all of that is the fact that Ontario =/= Canada

#11 eightlock90 on 09.30.18 at 4:49 pm

Just as stated; envy tax. – Garth

///////
Hello Garth,

Everyone who works should be able to have some kind of roof over their head.

Nobody want’s to live in a society where only the upper echelon of people own real estate and the rest live like serfs. Housing as rightly become a political issue in BC and unfortunately the spec tax seems like the only reasonable way to reduce demand for housing. Admittedly it’s not perfect but I don’t see you offering any solutions.

Honestly nobody want’s to hear about the woes of the upper echelon of people who hit the top marginal tax bracket.

Taxing people who have more than you will not increase your wealth nor your ability to buy real estate. Give your head a shake. – Garth

#12 Bradley LaForet on 09.30.18 at 4:50 pm

Excellent article. Articles like this are actually informative and newsworthy instead of what we really get from the regular sources. I’m educated and happy to get it here.

#13 Stan Brooks on 09.30.18 at 4:56 pm

#8 SoggyShorts on 09.30.18 at 4:48 pm

I replied to your nonsense, Re: electricity prices in Ontario in 2 posts under the yesterday’s article with information from the MSM that proves my point.

I am glad you acknowledge that besides your flip flopping when actual facts are presented.

As I said, look for another job, not in real estate.

#14 crowdedelevatorfartz on 09.30.18 at 4:57 pm

Gee whiz.
A sophmoronic Prime Minister screwed up by listening to his advisor Mr Butz. An advisor who hails from that socialist backwater endlessly bailed out over the decades by successive govt handouts…aka Cape Breton
Quelle Surprise.
One can only hope his disastrous legacy follows him all the way down in the polls to the “1 term wonder” he so richly (pun intended)deserves.

#15 Bob on 09.30.18 at 5:00 pm

We may get the country we deserve, after all.
______________________________________________

Welcome to the politics of envy in the new Canada…

….this is just the beginning.

#16 SoggyShorts on 09.30.18 at 5:01 pm

#5 Alessio on 09.30.18 at 4:32 pm
How does a single income over $115,000 reduce taxes? I’ve already maxed out RRSP and TFSA. I don’t own RE or have debt. Higher taxed investments are in tax-sheltered accounts. What else can I do???
****************************
Might not work depending on what your job is, but if you became a business you could pay yourself in dividends leaving the rest in the company(taxed only at the corporate rate) to be invested.
The risk is that someday the Gov will take a harsher view on retained earnings.
Eventually, you will have to take the money out though, so it’s sort of like a crappier version of an RRSP.

RRSP allows you 18% per year, but if you want to save more like 40-50% or even higher, then the corp might be a good choice.

#17 eightlock90 on 09.30.18 at 5:02 pm

Stan Brooks.

Nobody is coming after your RRSP or TFSA holdings.

Nobody is even coming after your home in BC. The spec tax applies to people who own multiple properties who are not renting them out.

You can only live in one house at a time. Admittly I don’t like the idea of taxing people (we are taxed enough) but what is the solution? Ban people outright from owning multiple properties? Ban foreign ownership? tax breaks for developers to build rentals?

#18 Millennial Realist on 09.30.18 at 5:03 pm

It’s way too early to call this one. We should absolutely keep ramping up the taxes on the 1%.

Eisenhower had the tax rate right, just like most old-school conservatives did. Funny how no one on the right admits this now. 90%. All that did was create the biggest, most democratic economic boom in world history. Sheesh! What’s there to lose by moving back in the same direction after decades of failed Reaganomics?

If the Boomer elites don’t like it, they can leave. Enjoy Thailand and Central America, guys. Don’t forget to bring lots of firearms and bottled water with you, and hire private security guards that you can trust – for only a little while, unfortunately.

Recognize the proven heritage of what made North America truly great this last century. Don’t act like second-class oligarch wannabees.

Be part of the change, Boomers.

Or be run over by it.

#19 dakkie on 09.30.18 at 5:11 pm

Top 10 Cities Pricing the Middle Class Out of Real Estate

http://www.investmentwatchblog.com/top-10-cities-pricing-the-middle-class-out-of-real-estate/

#20 SoggyShorts on 09.30.18 at 5:13 pm

#13 Stan Brooks on 09.30.18 at 4:56 pm
#8 SoggyShorts on 09.30.18 at 4:48 pm
I replied to your nonsense, Re: electricity prices in Ontario
*********************************
Yes by picking the worst possible range of dates you made a point. Anyone can do that, watch:

May 1, 2018 6.5 9.4 13.2
May 1, 2017 7.7 11.3 15.7

OMG Electricity prices in Ontario are going WAY down!
Ontario has NEGATIVE 10% inflation!

#21 Millennial Realist on 09.30.18 at 5:14 pm

Some truth about taxes from a billionaire venture capitalist:

https://www.youtube.com/watch?v=-8l-9F1TKL8

#22 OlderbutWiser on 09.30.18 at 5:19 pm

Millennial Realist get a grip…you think that South America is the only option for the overtaxed 1%? Try the good old USA…we even have a Tax Treaty with them. If you know what you are doing you can make the tie breaker rules in the Treaty work to your advantage…6 months in Canada…6 months in the USA and only pay taxes at the good old US rate. You will lose your Canadian healthcare but if the Canadian tax rate is too high then there is no reason NOT to move south. Furthermore, the US treats dividends from Canadian companies as qualifying dividends for the 15% tax rate. Canada taxes dividends from US companies at your top marginal rate. If Canada gets even more crazy with the tax rate we are leaving and so will more retirees. But don’t worry MR, you can pick up the tax slack…right???

#23 Stan Brooks on 09.30.18 at 5:20 pm

#16 SoggyShorts on 09.30.18 at 5:01 pm

Did you just wake up after a very long hibernation?
That can explain the brain freeze so now I feel much better about you.

You CANNOT claim dividends from a private corporation and retained earnings if invested will be taxed with I believe 70 something % + on the growth. You can not split income.
These are the ‘loopholes used by the tax cheats’ that wild bill, the french villa guy recently ‘closed’.

You can try it but then I am reporting you to CRA.
BTW you are advising on tax scams according to the latest tax ‘rules’ that are deemed illegal.

——————————–

#17 eightlock90 on 09.30.18 at 5:02 pm

So you are saying I have to be penalized if I have a house/condo in Vancouver and a country home/ recreational cottage and I live 10 months in the city, 2 at the cottage? Or 6 months at each place, if retired?


Nobody is coming after your RRSP or TFSA holdings.

You are damn surely right, I have no intent of living the slightest trace of wealth to the thieves.

But not so sure about yours.

#24 Doug t on 09.30.18 at 5:22 pm

You always the country you deserve – look at the States

RATM

#25 Stan Brooks on 09.30.18 at 5:32 pm

#20 SoggyShorts on 09.30.18 at 5:13 pm

I am showing representative long enough range. Talking about last 2 decades, giving you examples from the last decade and a half.

You are picking a year of ‘price reduction’/for liberals political reasons/, without including the delivery charges.

Go to the closest Starbucks or a grocery store and cry out loud: Grocery prices are declining, electricity prices are way down, they need to increase and see what happens.

You quote rural areas, there are places where people pay $ 1 200 in monthly delivery charges on electricity bill of $ 300.

This conversation is over. Go back to your real estate daily life.

#26 SoggyShorts on 09.30.18 at 5:36 pm

#18 Millennial Realist on 09.30.18 at 5:03 pm

The 90% rate was not on the 1%.
It was for people making $200,000 per year, which is 1.7 million per year in today’s dollars
Closer to 0.01%
Somewhere around 5-10K Canucks make 1.7m+ a year and if you took 90% off of everything over that 1.7, you might have enough to buy every other Canadian a cheeseburger.

MAB38

#27 jess on 09.30.18 at 5:37 pm

Top lottery firms in India accused of tax evasion
BY Erik Gibbs ON September 28, 2018
https://calvinayre.com/2018/09/28/business/top-lottery-firms-india-accused-tax-evasion/

Russian money laundering investigation was ordered to stop, says former head of UK corruption unit (28 Sep 2018)

The former senior police officer in charge of investigating corruption has revealed that he was ordered to halt an inquiry into Russian money laundering.

Jon Benton, who headed up the National Crime Agency’s international corruption unit, said a more senior official linked to the Foreign Office told him to drop his inquiry.

…. Mr Benton, a detective superintendent, headed up the international corruption unit (ICU) when it was set up in 2015. He retired last year.

https://www.telegraph.co.uk/news/2018/09/22/national-crime-agency-ordered-stop-investigating-russian-money/

#28 Bob on 09.30.18 at 5:47 pm

Bear with me here. Math is hard, and I’m quite rusty. But I seem to recall from my high school years that 33% is less than 37%. Please correct me if I’m wrong.

It also occurs to me that we’re comparing apples to oranges here. Most states also levy income taxes, just like the provinces do.

Finally, we get universal health care, which the yanks do not. Subtracting the cost of that from our income tax rates, and our numbers start to look startlingly similar to those south of the border.

#29 MF on 09.30.18 at 5:53 pm

#22 OlderbutWiser on 09.30.18 at 5:19 pm

” If Canada gets even more crazy with the tax rate we are leaving and so will more retirees. ”

-Nobody cares. You would be doing us a favour.

Let’s all chip in to buy this guy a plane ticket.

MF

MF

#30 jess on 09.30.18 at 6:00 pm

anti dis est …ism

The Italian ‘virus’?

https://www.dw.com/en/italy-to-hike-spending-cut-taxes-defying-europe/a-45665944

#31 MF on 09.30.18 at 6:04 pm

Let’s back up a few years for some context.

It wasn’t really T2’s message that got him elected, it was more voter fatigue with Harper, plus the Trudeau name.

Voter fatigue was a large factor in getting Trump elected down south (and Obama in 2008), and any other time one political party has been in power for more than one term. People seem to want change after a while.

MF

#32 akashic record on 09.30.18 at 6:05 pm

Taxing people who have more than you will not increase your wealth

Obviously, unless the government sends me a check directly, collected from the higher bracket.

It can reduce the risk though to get me taxed even more to pay for their pet projects. That’s what each income bracket associated with wealth is rooting for.

#33 Fish on 09.30.18 at 6:07 pm

September 27, 2018
Unlicensed Real Estate ‘Consultants’ Pose Significant Risks To Home Buyers And Sellers, Say Ontario Realtors

https://www.orea.com/News-and-Events/News-and-Press-Releases/Press-Releases/September-27-2018

#34 Work and Tumbel on 09.30.18 at 6:10 pm

T2 tried to tax me to death 50% and well he got me last year but like Garth said I have made moves to save my Moneys and RRSP is only part of the game plan.
I am compensated 100% commission and we have made adjustments.

#35 OlderbutWiser on 09.30.18 at 6:12 pm

MR, your attitude is exactly why Garth wrote his post…but clearly you are much too smart to get the message….a sad reflection on you and your character…or lack thereof…

#36 MF on 09.30.18 at 6:14 pm

#18 Millennial Realist on 09.30.18 at 5:03 pm

“If the Boomer elites don’t like it, they can leave. Enjoy Thailand and Central America, guys. Don’t forget to bring lots of firearms and bottled water with you, and hire private security guards that you can trust – for only a little while, unfortunately.”

-Security guards aren’t the only people these expats hire when they go to those places, if you know what I mean…

MF

#37 baloney Sandwitch on 09.30.18 at 6:15 pm

I think top marginal income taxes should not be more than 30%. The government should introduce a wealth tax (i.e., flat rate -1% per year) for investments (real or financial) over $1 million.

#38 SoggyShorts on 09.30.18 at 6:15 pm

#23 Stan Brooks on 09.30.18 at 5:20 pm
#16 SoggyShorts on 09.30.18 at 5:01 pm
You CANNOT claim dividends from a private corporation and retained earnings if invested will be taxed with I believe 70 something % + on the growth. You can not split income.
These are the ‘loopholes used by the tax cheats’ that wild bill, the french villa guy recently ‘closed’.

You can try it but then I am reporting you to CRA.
BTW you are advising on tax scams according to the latest tax ‘rules’ that are deemed illegal.

****************************
Check again. That 70% only applies after making over 50K in dividends on retained earning in your corp.
So you can still safely and legally shelter $1,000,000 in your corp as long as you are making 5% on it.

I also clearly stated in my advice that they might go after it harder in the future, perhaps reducing that 50K allowance.

I’m quite sure you will never have to worry about it though.

https://biv.com/article/2017/10/government-announces-50000-threshold-passive-incom

#39 Stan Brooks on 09.30.18 at 6:22 pm

#29 MF on 09.30.18 at 5:53 pm

Another ‘sophisticated’ comment.

You forgot:
Leave, if you don’t like it, don’t let the door hit you on your way out.

Retires can’t survive the high cost of living and taxes here, capishe?

Chip in, don’t you have any real money to pay yourself for the ticket?

I will truly enjoy your behind being whipped in (the inflationary depression) that is coming very soon to this place.

#40 kommykim on 09.30.18 at 6:25 pm

So we are to believe a 1%er think-tank on the impact of taxes on the 1% and 99%?
Too funny Garth!

#41 TurnerNation on 09.30.18 at 6:28 pm

For a while now kooks have said the plan of our elite rulers is one toward a North American Union – a controlled unified zone.
Of course they’d have to bring Canada to its knees.
How’s the view out the window today?

At least Kanadians should thank T-Rump for an lesson on the dangers of electing a Marxist regime.

#42 Blackdog on 09.30.18 at 6:37 pm

Wow. In dog world, that picture is borderline porno.

Anyone here a Matt Damon fan? He so reminds me of a guy I knew when I was 16. Wanted so much to go there with him, but reputation and all…sigh..should have done it anyway.

Damon is funny as hell in this Saturday Night Live clip. Bytor, the ‘not sure if you are bi-guy’, you will love it!
https://www.cbc.ca/news/entertainment/snl-brett-kavanaugh-spoof-matt-damon-1.4844541

#43 Nonplused on 09.30.18 at 6:38 pm

Envy taxes, like all forms of socialism, are just another a form of economic warfare. Like all forms of warfare, everyone ends up worse off.

You can’t make the church richer by robbing from Peter to pay Paul.

#44 Ex Pat Canuck on 09.30.18 at 6:38 pm

“No deal by tonight would be shocking, a setback for the economy and an abject failure for the federal government.”
Garth, are you saying Canada should take a bad deal and that would be a win for Canada? I can only imagine the right wingers would scream “We were better off with no deal than this incredibly bad deal”. Tell us how you would negotiate with the Trump administration and their constantly moving goal posts. You’re a former federal official. Enlighten us.

#45 IHCTD9 on 09.30.18 at 6:39 pm

#18 Millennial Realist on 09.30.18 at 5:03 pm
It’s way too early to call this one. We should absolutely keep ramping up the taxes on the 1%.

Eisenhower had the tax rate right, just like most old-school conservatives did. Funny how no one on the right admits this now. 90%. All that did was create the biggest, most democratic economic boom in world history. Sheesh! What’s there to lose by moving back in the same direction after decades of failed Reaganomics?

If the Boomer elites don’t like it, they can leave. Enjoy Thailand and Central America, guys. Don’t forget to bring lots of firearms and bottled water with you, and hire private security guards that you can trust – for only a little while, unfortunately.

Recognize the proven heritage of what made North America truly great this last century. Don’t act like second-class oligarch wannabees.

Be part of the change, Boomers.

Or be run over by it.

————

Never going to work these days. Money and people are super mobile, business is international. Tax evasion can be hired out to professionals who specialize in it.

If a lowly schmuck like myself can make huge reductions in my total tax remittance, I can only imagine what a millionaire could do, or a billionaire.

#46 AfterTheHouseSold on 09.30.18 at 6:51 pm

RE: Flops real estate report

Catching up on my reading here. Flop, it seems you did not read or comprehend my post as your reply addressed nothing in my post.

I did not say anything about the content of your posts.
I did not ask you to stop posting.
I did not say that Garth does not appreciate your posts.

I indicated that quantity was the issue with your posts and each time it is raised you lash out at the person.
I put forth a reasonable and easy solution to resolve this ongoing problem.

I asked only that you change your DELIVERY format; that you compile your multiple posts under one link.
For example, Vancouver real estate report followed with a daily link or two that would contain as many real estate examples as you wanted to post.
NOTHING would change with your info other than the delivery format.

You do understand that delivering your information via a link IS posting on the blog? Unless you are saying that Garth has explicitly forbid you to post via a link? Not likely.

I doubt even your most ardent supporters would object to this delivery format. You often ask that people be part of the solution not the problem. Now’s your chance with one simple fix. A win win for everyone.

I sent you a polite respectful post the other day and again today. It would be nice if you could respond in kind in future. No need to respond to this post. Actions speak louder than words.

#47 yvr_lurker on 09.30.18 at 6:55 pm

Being at the cusp of the new marginal rate, I don’t begrudge paying a little more tax. There are already lots of tax breaks that only the wealthy can benefit from.

Am also a big fan of the measures used to curb speculation and offshore buying in YVR, and to get to the bottom of the incessant money-laundering and corruption that plagued YVR while the liberals were in power. Bring it on. I don’t care if my house goes down in value. If some external controls were not introduced we would have soon been living in Monaco; no future for the next generation (unless passed on by inheritance). This is not the type of World-Class-City that I want to see where housing costs parallel those in the world’s most expensive cities, with wages that are stagnant. YVR was already World Class to me in the 1990s. Prices are slowly coming down and demand is tepid. Give it another 4 years and we’ll see where we are at.

#48 Steven Rowlandson on 09.30.18 at 6:57 pm

“We may get the country we deserve, after all.”

My quest for the last 44 years but I am still no closer to it.
Still one can not live without truth, purpose and faith.

#49 IHCTD9 on 09.30.18 at 7:00 pm

Giving more than half your gross income to guys who are spending their way into oblivion doesn’t sit well. So, avoidance strategies kicked in. The windfall T2 expected fizzled.
———-

Laffer Curve economics in motion. This effect will keep getting stronger as we move forward IMHO.

The modern era with globally integrated finances, and ever larger and more complex tax rules means more loopholes, more hiding spots, and much tougher enforcement. Trying to get more than half of a dudes income in taxes so T2 can pay off another terrorist or fund gender studies in some corrupt dictatorship just won’t work in 2018.

Somewhere along the line, Western Governments will have some tough decisions to make as their revenues peak, yet it (as ever) still ain’t enough.

#50 Stan Brooks for PM on 09.30.18 at 7:05 pm

Stan, we need you in the highest office of this great land. Your common sense approach to all matters economical is what this country needs to set itself back on the straight and narrow. Will you consider running for political office and starting a new political party?

#51 Bucky on 09.30.18 at 7:16 pm

Thank god the NAFTA circus, or SNAFU, or what ever the hell the orange haired buffoon is calling it now, is nearly over. Either a half way reasonable deal or move on, albeit with a lot of short-term pain, and engage with whatever smoldering ruins are left in the wake of the T-rump dismantling of the American Empire and western trade policy.

#52 IHCTD9 on 09.30.18 at 7:23 pm

#26 SoggyShorts on 09.30.18 at 5:36 pm
#18 Millennial Realist on 09.30.18 at 5:03 pm

The 90% rate was not on the 1%.
It was for people making $200,000 per year, which is 1.7 million per year in today’s dollars
Closer to 0.01%
Somewhere around 5-10K Canucks make 1.7m+ a year and if you took 90% off of everything over that 1.7, you might have enough to buy every other Canadian a cheeseburger.

MAB38
——

Probably more likely that suddenly no one would “make” more than 1.7 in the entire country, and a bunch of them would bail to the US leaving a shortfall in revenues compared to the year before.

Trudeau’s education in the real world continues…

#53 SW on 09.30.18 at 7:29 pm

#46 AfterTheHouseSold on 09.30.18 at 6:51 pm

I disagree with that opinion. Whatever format Mr. Flop wants to post his oeuvre is OK with me. I like the layout, it is clear and tells you the essentials in a minimum of time. I do not like links, particularly.

I do hope Mr. Flop is able to continue for the next few months or years. Even if the sample rate drops. Theory says that, eventually, when all hope is lost and RE is a completely despised “investment” the market may, indeed turn, once the economy is purged of the debt.

My advice, Mr/Ms. AfterTheHouse: Get a mouse with a scroll wheel…

#54 Terry on 09.30.18 at 7:30 pm

NAFTA Update:

They are VERY close to a 3-way new NAFTA deal! There is talk of extending the midnight deadline for tonight into tomorrow.

Stay tuned………..

#55 Ryan on 09.30.18 at 7:31 pm

If you babies don’t like taxes; then leave.

#56 FOUR FINGERS WATSON on 09.30.18 at 7:32 pm

If there is a shortfall in tax revenue and the budget does not balance itself i guess they will just raise taxes and user fees again. We should be used to it by now.

#57 millmech on 09.30.18 at 7:40 pm

#4
It is not envy Garth, it is ignorance, we need the landlords to keep subsidising us poor renters. I was up in the interior this weekend visiting friends and they pay $900/mth for a 3brm house with a huge fenced yard, for the last five years no rent increase as they are great tenants.
To buy this house would cost them 2k/mth, so they are being subsidised by the landlord for about $1100/mth.
Bring on more landlords!

#58 Flat Earth Society on 09.30.18 at 7:51 pm

The problem with tinkering with tax rates is that taxes do not create any wealth. If anything, they make wealth creation harder the higher they are.

What do the SJW’s think the rich do with their money? Fill a swimming pool with gold coins and swim in it like Scrooge McDuck? No, they don’t. They either spend it (which creates jobs) or invest it (which creates jobs). Taxing the money away from them makes it more difficult for them to do either, and thus the economy suffers.

Now, some taxes are necessary for things like the construction of roads, the funding of schools, and here in Canada to pay for health care. How much each citizen should have to contribute is open to debate. Those things could be considered to be contributing to the wealth of the nation because things get built and services provided. The man-hours of labor expended by the workers actually produce something.

But taxing the rich to give to the poor actually destroys wealth. The doctor who might have hired a painter because his house needs painting no longer has the money, and the painter has no job so he collects welfare. Net effect: The house doesn’t get painted. This is a very direct destruction of wealth because the painter’s labor, which is the source of all wealth (when combined with raw materials) is un-utilized. The painter’s potential labor, which is a contribution to the economy, never materializes. It is wasted. Do this enough and eventually your country devolves into something resembling Venezuela. It’s been tried enough times that we know with certainty this is exactly what happens, usually followed by much bloodshed. Socialism is a one way road to hell on earth. Sometimes the travel is slow, sometimes it’s fast, but the destination is always the same. Always. It just doesn’t work because it can’t. It destroys the very labor it purports to be helping.

Bill Gates used to be the richest man on earth, but I guess that title goes to Jeff Bezos now. But they also gave us the xBox and Amazon. Where would the world be without these advancements? But they needed money to build these things. Taxing the piss out of them would not have furthered their ability to create and hire the workers needed. The billionaires need their capital to produce their products. Bill Gates is only rich because he (with others, also rich) built Microsoft. Taking his wealth would mean he doesn’t have Microsoft anymore. So why would he have bothered to build it? Just for kicks? That’s not how human nature works. If there are no fish in the river you don’t go fishing.

And let us not forget that no matter where the government inserts the tax into the economy, everybody pays the same rate. You maybe don’t see it on your tax form (or I guess program now), but you pay it through higher prices for goods and services. You have to. The guy who owns the business doesn’t have any money, he has income and expenses, so when his tax rate goes up he must by necessity raise his prices. That is why the mechanic gets paid $30 an hour but the shop rate is $140.

People who argue in favor off socialism just haven’t thought things through. By taking money away from people who could hire people, even to do extravagant things like build yachts, to give money to those same builders to sit at home, accomplish nothing but ensuring no yachts get built. Ever get invited to a party on a yacht? It’s fun, even if you don’t own it. But if you push the socialism far enough, cruise ships don’t get built either so you can’t even go on a cruise.

Capitalism sucks, especially the sort of financialized mess we have today. But it is the only system that can fully harness the potential of human labor and innovation and allow price discovery. We haven’t found anything else that works. It is, like democracy, the worst possible system you could possibly imagine for governing a country, except for all the other ones.

#59 SoggyShorts on 09.30.18 at 7:57 pm

#46 AfterTheHouseSold on 09.30.18 at 6:51 pm

That is a great idea. Scrolling past 3-4 full screen plus posts every day on the same subject vs a single post with 3-4 links.

This is a Finance/Dog/RE blog but it also preaches balance. Not every day has to include multiple posts about the price drops on a handful of homes in 1 city.

Rule #4
• Please avoid pasting the text of excessively long articles or news stories within your comment — provide a link to the item instead.

#60 Lost...but not leased on 09.30.18 at 8:12 pm

DELETED

#61 AGuyInVancouver on 09.30.18 at 8:14 pm

Lauding US tax rates now Garth? Why not publish the stats showing income inequality in developed nations? With almost Third World levels of income inequality it is no wonder the USA is becoming a flaming dumpster fire.

Exaggerate much? – Garth

#62 Flat Earth Society on 09.30.18 at 8:16 pm

#55 Ryan on 09.30.18 at 7:31 pm

“If you babies don’t like taxes; then leave.”

Spoken like a true mafia shakedown bully. “Wouldn’t want to see anything happen to your shop. You need protection. Otherwise you might need to move to a different neighborhood. It’s kind of rough here. Why don’t we make a deal.”

How about if you don’t like not being able to steal your neighbor’s stuff you leave. The neighborhood would be better off.

Taxes are, in essence, slavery. You have to work for the government for free. This is why beyond a certain point they are ineffective and destroy economies. Nobody wants to work for free.

I like to test ideas at the extreme to see if the idea is valid. So let’s test the high tax idea at the extreme and put the rate at 100%. Are you going to go to work if your tax rate is 100%? I’m betting no. You are working for nothing. How about if the tax rate is 0%? I’m betting yes, you get to keep all the money. So we can see from that the lower the tax rate the better, more work will get done. So if taxes are absolutely necessary, the lower the better.

You can’t assume that people will continue to work if you take away their motivation to do so. That’s not how human nature works. It’s also why socialism always fails. Why work if the reward is the same as not working? You wouldn’t, and I wouldn’t either.

But anyway as I’ve already explained the taxes come out in the price. So whatever your plumber pays in taxes you pay in his hourly rate. Can’t be avoided because taxes do not create money out of thin air. Wonder why a coffee is so expensive at Starbucks? Taxes. It’s the same for every single thing you buy, even a hair cut. You have to pay the taxes of everyone you employ to do anything through the price you pay. Where else do you think they are going to get the money?

#63 Lobster Man on 09.30.18 at 8:17 pm

#5 Alessio,

Write to your MP, and tell him/her that you should be treated more fairly. As long as you do not own RE (no principal residence), you deserve to have a much larger annual TFSA contribution limit, say 10k, 20k…..
That’s where you may be able to catch up with any forward capital gains tax free.
Isn’t that more fair?

LM

#64 Remembrancer on 09.30.18 at 8:18 pm

#5 Alessio on 09.30.18 at 4:32 pm

Simple income calculation = simple deduction calculation…

Charitable contributions, medical expenses, if any etc down the line of possible deductions.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses.html?=slnk

#65 Randy on 09.30.18 at 8:18 pm

Just a reminder. CPP Taxes for you and your employers are scheduled to go up in 2019. Thank a Liberal.

#66 april on 09.30.18 at 8:27 pm

#53 – Hear, hear!

#67 Give me RE, or death on 09.30.18 at 8:33 pm

Equating the effects of a RE speculation tax with the effects of high earner income tax is as puerile and sophomoric as it sounds.

Except owning a secondary property is not speculating. So, it’s an envy tax. – Garth

#68 Andrewt on 09.30.18 at 8:35 pm

“Canadian Prime Minister Justin Trudeau spoke with Lopez Obrador on Thursday who indicated that he wouldn’t reopen the accord — raising the notion that talks could stretch on longer than previously thought — but that he’d insist on Canada remaining in it.

“I told him that we will keep insisting on having a trilateral agreement and we hope there will be an agreement between the U.S. and Canada,” Lopez Obrador said Friday. “There’s still time to achieve a trilateral agreement. In any case, we already agreed with the U.S. and we won’t revise what is agreed.”
https://www.bloomberg.com/news/articles/2018-09-29/u-s-canada-in-weekend-dash-for-nafta-agreement-guajardo-says

#69 -=jwk=- on 09.30.18 at 8:41 pm

Taxes are, in essence, slavery. You have to work for the government for free. This is why beyond a certain point they are ineffective and destroy economies. Nobody wants to work for free.

This is nonsense. I like driving on paved roads, having access to a judicial system that enforces property rights, fire and police systems and some men at the border checking on who gets in. Lower does not automaticall equal ‘better’. Most rational people prefer a blend of taxes in exchange for services. I don’t want the lowest bidder running the fire department..

#70 OttawaMike on 09.30.18 at 8:47 pm

37% after $500k in the US you say?

I’m surprised you didnt suggest we ditch public healthcare to make Canada more competitive.
If you’re going to quote CD Howe institute which is slightly right of Atilla the Hun you might as well go full CD Howe.
I would like the think tank to explain to me how every study of the best quality life index cities on Earth always come back with cities in Scandanavia, Germani republics and Canada. All high taxation districts.

The point was simple. By increasing taxes on the 1%ers governments lost money. That’s not ideological, just a fact. – Garth

#71 Hogan polls soar on 09.30.18 at 8:48 pm

Upthespeculationtax.ca

Not only is it coming in, it will be increased in BC.

The foreclosure index showing signs of movement in BC.

All dirty money has a trace.

#72 Capt. Serious on 09.30.18 at 8:50 pm

I know it’s a crazy idea, but the government could cut spending. Trade offs, life is about trade offs.

#73 Linda on 09.30.18 at 8:53 pm

Anyone who has read Ann Rand’s ‘Atlas Shrugged’ could have predicted the outcome regarding increasing taxes on the 1%. People will vote with their feet if legitimate tax reductions are taken away by a government who is trying to appease the masses at the expense of others. And given how the 99% have been piling on the debt, increasing their taxes to make up the tax revenue shortfall isn’t going to go over well either, no matter how many joints are smoked. Even the laid back weed types are going to be saying ‘like man, that is so not cool’ & trying to figure out ways to avoid any new taxes.

Seems to me that the Liberals may be going up in smoke come the next election, especially if Canada ends up without any trade agreement & the USA applies punitive tariffs to gut the economy of a vast swath of voting public. No pressure!

#74 For those about to flop... on 09.30.18 at 8:57 pm

April 30.18 at 8:27 pm
#53 – Hear, hear

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

Hey April, I have some information to pass onto you.

When you asked me to try and track a few condos out New West this is one of them.

Recent sale report.

The details…

1206-828 Agnes st,New Westminster.

Paid 475k January 2018

Sold 495k August 2018

So they probably took a small loss after expenses but they got enough out of it for me to call it a Pink Draw and move on.

As you can see below they were much more ambitious at the start but the market seemingly pointed them in the right direction.

I have one or two more out that way that have removed themselves,maybe they will try again next Spring.

Quite the tug of war and some homeowners are running out of rope…

M44BC

1206 828 Agnes Street, New Westminster. Paid 475 January 2018 ass 436

Now asking 499k

Jul 3, 2018 $499,000 Price Reduced

Jun 21, 2018 $515,000 Price Reduced

Jun 8, 2018 $529,900 Price Reduced

May 25, 2018 $559,900 Price Reduced

Apr 21, 2018 $579,900 Listed For Sale

https://www.zolo.ca/new-westminster-real-estate/828-agnes-street/1206

https://www.bcassessment.ca/Property/Info/QTAwMDAzVUgxMQ==

#75 MF on 09.30.18 at 9:02 pm

#39 Stan Brooks on 09.30.18 at 6:22 pm

“Retires can’t survive the high cost of living and taxes here, capishe?
Chip in, don’t you have any real money to pay yourself for the ticket?”

-Let’s talk in the hypothetical.

If all the retirees decided to go to a different country, then the following would most likely occur:

1) Positives

Lower health care usage and costs. Wait times reduced
Lower number of benefits and pensions paid out by governments
Lower pharmaceutical prices as demand goes down
Lower taxes as a result
Lower government deficits
Businesses would have to pay less taxes and jobs would be more plentiful
Housing units would be freed up and price reductions would occur
Disposable income would go up as rents and mortgage costs went down

2) Negatives

Population decrease might reduce demand for certain services/businesses. But this would be muted since retirees don’t consume as much as younger generations on average.

Hence the “graying population issue”, currently affecting the balance sheets of Canada and the entire western world, would be pretty much be solved over night. Hence having a retiree threaten to leave was nothing short of comical.

“I will truly enjoy your behind being whipped in (the inflationary depression) that is coming very soon to this place.”

-Low probability of that happening, and if it did, it would not be Canadian only phenomenon since the entire western world currently has the same debt burdens. But let’s entertain your idea.

Monetary policy can be faulted, but it didn’t act in unison.

The last bout of hyperinflation occurred when the price of oil shot up from the OPEC oil embargo. Since then, global reliance on a single oil source like OPEC has been reduced. Moreover, many of the OPEC countries involved in the embargo learned a bitter lesson, namely that if you cut off your main export for a stupid cause your own economy will suffer. OPEC today has never been as divided.

Nixon’s decoupling the US dollar from the gold standard caused a panic in confidence for the USD and an exodus of money from the currency. Now 40 years later, the US is the lone superpower with the strongest military and economy in the world. Confidence in the USD is not an issue, even after 2008.

Finally there was also a huge increase in the number of people in the workforce as women entered en masse. This caused a large increase in demand for goods and upwards price pressure. The issue today is the opposite: not enough workers supporting the tax base.

So, aside from poor monetary policy, none of the factors that lead to hyperinflation are present currently. Therefore the likelihood of hyperinflation/stagflation is low. But at least it’s nice to know you are rooting for the suffering of others.

“Another ‘sophisticated’ comment.”

-You bet it was.

MF

#76 AK on 09.30.18 at 9:08 pm

Trudeau calls late-night cabinet meeting for 10:00 PM

#77 ImGonnaBeSick on 09.30.18 at 9:08 pm

Stan Brooks – I get a good nervous laugh at your comments most of the time, but you know you can still keep retained earnings in your corp., and also still pay dividends. It’s after the $50,000 in passive income that it starts to reduce your small business deduction. So keeping retained earnings is still a fine strategy (and legal for all you socialists in here) for extra income.

#78 AB Boxster on 09.30.18 at 9:12 pm

18 Millennial Realist on 09.30.18 at 5:03 pm


If the Boomer elites don’t like it, they can leave.

—————————–_
Nah.
us boomers are just going to spend it all buying copious amounts of CO2 generating goods and services. Driving up the price of everything that millennials hold dear, prior to us departing the earthly realm.

Perhaps leaving the estate to our favorite pet charity.

It will be funny to see your face when you boomer parents tell you they left you nothing, but the cat fluffy will be well taken care of.

That will be a true moment of Millennial Realism.

#79 Fish on 09.30.18 at 9:13 pm

@#72

granted, yes

#80 Pete from St. Cesaire on 09.30.18 at 9:15 pm

PQ majority on it’s way tomorrow, populism rising and all. Garth, you’d better put off writing the next article until the results are in. The Liberals are terrified and they’ve got the media trying to pretend that the PQ no longer exists (almost).

#81 Reality is stark on 09.30.18 at 9:16 pm

A federal government committed to higher taxes and a higher public service payroll guarantees Canadian prosperity.
A NAFTA deal which inevitably must favour the USA coupled with a housing market in free fall are more positives for Canada.
Interprovincial squabbling and minority interests who dictate policy must by definition be good for the country.
Educating our young women to become social justice warriors with few marketable skills will guarantee a lower marriage rate which should also make us the envy of the world.
What is not to like?

#82 Paul on 09.30.18 at 9:22 pm

It’s not just the one percent that won’t work to pay 1/2 their money in taxes. Many of my clients refuse overtime and the self employed just keep getting more creative. The crazy thing most believe in paying to a point but the cost of just getting to work and the time away from the family makes no sense.

#83 Remembrancer on 09.30.18 at 9:22 pm

#41 TurnerNation on 09.30.18 at 6:28 pm
For a while now kooks have said the plan of our elite rulers is one toward a North American Union – a controlled unified zone.
—————————————————————-
Um, like what, a unified free trade zone reaching from Mexico to to US to Canada so integrated that parts for large complex expensive consumer good assemblies flow across borders in an integrated supply chain structure benefiting all whose hands they pass through?

Oh, those elites are so crafty – so which is it, they want to kill NAFTA and the Canadian economy or have an integrated system? These conspiracies are getting harder and harder to follow on this blog.

BTW, I’ve drank US milk and ate US cheese, its nothing special, let them try to sell it and you can just say no if you want. I also don’t need Agropur telling me how great they are every 3rd commercial either, though they are an improvement on those ON tourists in PQ raving about the OKA…

#84 ImGonnaBeSick on 09.30.18 at 9:24 pm

Mr. Garth do you think that moving solely to a consumption tax would be the best way to fix our current tax mess? Could this ever work? Or is it a libertarian pipe dream? I think we can all admit, our current method of taxation is an overly complex disaster…

I feel that if a party offered a complete tax overhaul – moved away from income tax and focused only on consumption this would be the most “fair” system. Obviously having some sort of bracket, maybe under $30,000 would receive a $4500 refund cheque. Tax spending, not saving. It may put a bunch of accountants out of work, but on the flip side, it would also put a lot of CRA out too.

#85 Al on 09.30.18 at 9:25 pm

Waiting for the blog past when the numbers go the other way in future. Like the blog posts on minimum wage when a long string of months of job gains occurred in Ontario this year.

#86 Pete from St. Cesaire on 09.30.18 at 9:27 pm

I wonder if the net loss after the hike on the 1%er’s was actually due more to A) increased tax evasion and B) more people simply saying “I’ve had enough of this country and I’m leaving”. The government wouldn’t want that info to slip out lest other people take it as an incentive to follow suit.

Wealthy, successful people don’t get that way by evading taxes. Avoidance (legal) is much more likely. – Garth

#87 Smoking Man on 09.30.18 at 9:28 pm

Down to the wire.

https://www.zerohedge.com/news/2018-09-30/canada-pm-trudeau-calls-10pm-cabinet-meeting-nafta-deal-announcement-imminent

I’m calling deal. Bye marketing board.

#88 NoName on 09.30.18 at 9:30 pm

#64 Remembrancer on 09.30.18 at 8:18 pm
#5 Alessio on 09.30.18 at 4:32 pm

Simple income calculation = simple deduction calculation…

Charitable contributions, medical expenses, if any etc down the line of possible deductions.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses.html?=slnk

charitable donation don reduce income tax, you do get credit based on income but it is out of pocket money, unless you are in cohoots with crooked charitable organizations.

#89 Calgary Retiree on 09.30.18 at 9:37 pm

I’m no T2 supporter, but laying a Naphta failure on him is crass Con propaganda.

Trump and his henchmen want a one sided deal resulting in the destruction of Canada’s dairy industry, adjudication by American courts only and the ability of Trump to apply tariffs to our exports at will.

The Con’s will be howling if T2 sells Canada out!

However, Canada’s refusal to sign a bad deal will likely result in Trump imposing his tariffs. At that point it is critical Canadians put their ideologies aside – and stand behind our PM.

#90 Remembrancer on 09.30.18 at 9:51 pm

#73 Linda on 09.30.18 at 8:53 pm

Not to be overly pedantic, but Galtians bring it out in me, first of all its Ayn not Ann, secondly her Objectiveness, a darling philosophy of many libertarians and so-called conservatives is a might bit too much a self-serving balm for my liking…

#91 Shawn Allen on 09.30.18 at 9:56 pm

Fact versus contention

The point was simple. By increasing taxes on the 1%ers governments lost money. That’s not ideological, just a fact. – Garth

***************************
It’s a stretch to call that a fact. More like a contention of a biased group but whatever. Torture the numbers long enough and they always confess to whatever is wanted.

Gee if higher tax rates lowered the tax take from the 1% I guess they will line and support even higher still tax rates? Think of how much they (we) will save.

As stated, a lower tax base through behaviour modification reduces provincial revenues since they have no offsetting higher rate. You are clever enough to grasp that. – Garth

#92 Terry on 09.30.18 at 10:01 pm

They have a new NAFTA deal !!!!

An agreement has been reached!

Ka-Ching to the TSX and Canadian investments!

#93 april on 09.30.18 at 10:20 pm

#74 – Thanks Flop.

#94 Parksville senior on 09.30.18 at 10:21 pm

Along with other right wing think tanks like the Frontier Centre, the C.D.Howe institute has become suspect in its intellectual integrity.

How a little money from the Koch brothers can create a news story.

#95 SoggyShorts on 09.30.18 at 10:23 pm

#84 ImGonnaBeSick on 09.30.18 at 9:24 pm

Mr. Garth do you think that moving solely to a consumption tax would be the best way to fix our current tax mess? Could this ever work?

*******************************************
I think it might be a problem if yours is the only country doing it.
How great would it be to earn and save here while paying zero income tax and then retire abroad?
Maybe not enough people live frugally and have high savings rates for it to matter, but this is already a very tempting choice since the cost of living is so much less in other countries.

Perhaps adding some sort of massive exit tax to force people to spend money here could work though……

#96 Hawk on 09.30.18 at 10:38 pm

Thankfully NAFTA deal has been done, after Canada had made some concessions on dairy. Auto sector is saved.

#97 NoName on 09.30.18 at 10:42 pm

#87 Smoking Man on 09.30.18 at 9:28 pm
Down to the wire.

https://www.zerohedge.com/news/2018-09-30/canada-pm-trudeau-calls-10pm-cabinet-meeting-nafta-deal-announcement-imminent

I’m calling deal. Bye marketing board.

i called it way before, just saying…

#72 NoName on 08.28.18 at 9:11 pm
Hello

Libs are feeling prity/very confident that trade deal will be made, both dudes need me thinks deal will be made, especialy it if they want to stay in office.
Whne deal is reached libs will move towards ban on handguns and tighter border.

I think its time to start thinking about going to shit vilage, where i came from, where streets also have noname…
https://www.youtube.com/watch?v=GzZWSrr5wFI

#98 Ace Goodheart on 09.30.18 at 10:47 pm

I guess the question you want to ask is, where is all the tax money going?

Back when I was a youngster and before the world destroyed me as a person and made me into a multi millionaire social refugee, I used to have morals and values.

Way back then I had the opportunity to spend a month at the Sclosshotel in Heidelberg (David Bowie stayed there) as a student in an international exchange. The hotel, much abused by legions of rock star partiers, had been taken over by the University of Heidelberg and was being used to house foreign students during their first month in the country.

Well, that was a month. We partied like rock stars. The old hotel groaned under our eager feet. A bunch of enterprising students opened a bar in the basement (called the “stagger in” (I always thought it should be called the “stagger out”) and we all proceeded to drink ourselves silly. One of the things you had to do was spend the overnight in a sleeping bag in the bar (with the lovely international student lady of your choice) . Many people did this and the fun thing was to come down to the stagger in in the morning to see who had been with whom the night before.

At any rate, we had way too much fun.

I like to look back on these times, before I was corrupted ad made into the ruthless business person that I am.

Why?

Who knows. Weird toys in the attic.

#99 NAFTA IS A DONE DEAL on 09.30.18 at 10:54 pm

Looks like its done.

https://www.cbc.ca/news/politics/nafta-finale-sunday-deadline-trump-1.4844623

#100 Smartalox on 09.30.18 at 10:58 pm

Garth, You make a compelling argument for not sur-taxing the 1%, and I admit that I’ve been maxing mine and my spouse’s RRSP contributions in order to pay 20% less in taxes for each year since 2015, while making more money – compared to years like 2012 – 2014 when I made less money. And yes, I totally understand how my RRSP contributions reduce my taxable income, on which provincial taxes are also calculated.

But even if the facts of the 1% tax are horrible, I can’t imagine any party using your analysis in an election campaign. Cut taxes on the ‘super-rich’? Because they’re making the provinces pay more? Won’t voters equate that with raising taxes on the rest?

Well, maybe Maxime Bernier, but he’d mangle the explanation.

Just like no party will EVER campaign on raising the GST after the Harper government made a show of cutting it from 7% to 5% (and costing billions in lost tax revenue as a result), nobody is going to say that they’re cutting tax on the wealthy, in a bid to get votes.

#101 georgist on 09.30.18 at 11:32 pm

Anyone else drink CIDOR? Garth you look like the sort, with that beard.

https://tradingeconomics.com/canada/interbank-rate

#102 Keith in Rio on 09.30.18 at 11:41 pm

Liberals are the pallbearers of societies.

#103 georgist on 09.30.18 at 11:42 pm

CAD up 0.5% on the news. Market didn’t see this as Brexit2.

#104 macroman on 09.30.18 at 11:47 pm

Anytime one gives more to the State of one’s labor than themselves, you have Communism.

The more a website censors reasonable thoughts/insight, Freedom loses to Fascism, Socialism and Communism.

Totalitarianism anyway you cut it.

#105 Newcomer on 10.01.18 at 12:31 am

An interesting video. Sadly, his last.

https://www.ft.com/video/adc185b8-9b2f-438a-8e95-8503e0dd2777

#106 Stan Brooks on 10.01.18 at 12:59 am

#77 ImGonnaBeSick on 09.30.18 at 9:08 pm
Stan Brooks – I get a good nervous laugh at your comments most of the time, but you know you can still keep retained earnings in your corp., and also still pay dividends. It’s after the $50,000 in passive income that it starts to reduce your small business deduction. So keeping retained earnings is still a fine strategy (and legal for all you socialists in here) for extra income.

You can allocate dividends lawfully in very rare circumstances, in the case of this guy/gal, a single worker and 115 k of income, good luck in that/not to get audited.

50 k is the current threshold. But hey, keep nesting, I am sure it won’t decrease with the next budget shortfall. As for the nervous laugh, you are likely to experience nervousness much more frequently going forward, as for it being a laugh, I am not so sure.
(you think it is your money, they think it is theirs, we will see who wins)

——————————

I hope retirees and investors note the attitudes of some posters, the likes of:

1. Taxes are low, increase it.
2. Let the retirees die of hunger or move elsewhere so we save on services (not that excesses won’t be stolen by crafty politicians), there could be some excessive ‘insured’ mortgages shortfall to cover for example.
3. Tax all capital that exits/they thinks it is ‘their money’
4. Inflation is low, lets boost it. You don’t need hyperinflation to lose your savings.

It perfectly proves my point on why your money is at risk here, yes, including that RRSP (they think it is ‘their’ money)

Cheerio,

#107 Balraj Dhalandar on 10.01.18 at 1:21 am

How is this a good deal for Canada? He opened up the dairy market to the US and limited auto exports to the US.

Canada is in a worst state with this new deal than the current NAFTA.

Buy the rumor sell the news type rally on TSX.

#108 Dolce Vita on 10.01.18 at 1:27 am

USMCA.

Trump gets his no NAFTA (insufferable guy).

Dairy concessions. Reads like Trump got his way on the powdered milk issue.

We’ll find out soon enough what else we gave up.

Still, infinitely better solution than auto tariffs and the subsequent gloomy economic times that Mr. South of the Border would have created for us.

#109 Linda on 10.01.18 at 1:28 am

‘Remembrancer’ – not a proponent of Ayn Rand. Simply pointed out that anyone who read Atlas Shrugged would not be surprised at the outcome of the higher tax on the 1%.

‘MF’ – if you think someone leaving Canada means they no longer receive their pension, think again. Most plans continue to pay out wherever you live; otherwise there would not be those reciprocal agreements between nations & there would not be expat enclaves of retirees in warmer climes. Lower health care costs may occur, as health care benefits will be suspended if one is out of country longer than is allowed under the current rules. Many snowbirds know to the day when they need to return to keep their health care benefits active. As for spending, insofar as I am aware retirees still eat, drink, drive, shop, engage in hobbies/activities etc. The entire baby boom generation will be age 65 or older by 2031. Nine (9) million Canadians were born during the ‘baby boom’. Our current population is just over 36 million. If 25% of the population pulled up stakes & spent their money elsewhere I’m quite certain that the local economy would not easily shrug it off.

Intergenerational hostility aside, consider this: you too are growing older with every passing day. Karma, baby.

#110 Smoking Man on 10.01.18 at 1:39 am

Was at Miramar today. Best airshow in the world.

Shooting the shit with some baby face sky pilots. They fly F22s
Great kids.

I ask, you boys ever dog fight with an orange fire ball. Innocianty they responded no. Their like 20 years old.

There boss, well taned dude with raybands said. What agency you working for.

I said I was flying the plasma flier on Fed 2 2003.

His jaw dropped, told me I was full of shit. Said it’s all in my book. You want the link..

Absolutely John said.

Blue angles flew for an hour.

#111 Oft deleted much maligned stock picker on 10.01.18 at 1:44 am

People who know say Sock Boy is up against it. The auto unions know they’re screwed if no NAFTA results in tariffs, which Teump has promised. In fact they’re so afraid that desk thumping angry trade union good have cornered Junior in a men’s stall twice over the weekend. That’s where the “guarantee condition” came from that wants Trump to promise not to tariff even after the deal gets signed. They are shit scared of how far this has gotten out of hand.

Conversely, Selfie Boys handlers , Butts, Axelrod, O’Ray Gun are being blasted by the Democratic money they’ve become subservient to. “Under no circumstances will you sign” , is what I heard. The Dems lost the bid to axe Kavanagh and NAFTA signed would seem like another home run for Trump. Junior risks losing hundreds of millions in contributions if he wavers in his support for the Trump Hate lobby.

There’s no out for Trudeau at this point. No midterm win means his election backing is dead. Tariffs mean the unions will turn on him. Now that Nova Scotia has shifted Vonservation and support west of Quebec is dead….we can expect some kind of cornered rat move from the Liberals..and the only ones he can hurt is is by introducing some spiteful onerous legislation while he’s on the way out. I think it’s obvious what he’ll do….a body dump like his old man to backstop a few ridings so that they don’t lose Party status like Wynne did.

#112 Steve French on 10.01.18 at 4:28 am

#70 OttawaMike:

Never go Full-CD Howe….

That way lies insanity. The Abyss. I’m talking into the realm of the Smoking Man and beyond.

#113 Stan Brooks for PM on 10.01.18 at 6:29 am

#8 Stan Brooks

“See, it hurts. One wonders when will they say:
People with money and investments in their RRSPs should pay up for the retirements of the rest.”

Please Stan consider running for political office! We need you in this fair land. Canada could become the first G8 Libertarian mecca. This is an invitation to come to our first Stan Brooks for PM convention, address the delegates and then consider organizing into a new Libertarian political party so we can storm the country and make this fair land a Libertarian paradise!

#114 Stan Brooks for PM on 10.01.18 at 6:30 am

Btw Stan, please do not confuse us with the Stan Brooks Fan Club. They sound like a bunch of teenage girls but we are a serious Libertarian organization devoted to transforming this great land of ours!

#115 Oft deleted much maligned stock.picker on 10.01.18 at 6:31 am

DELETED, BANNED.
You were warned. – Garth

#116 dharma bum on 10.01.18 at 7:52 am

#18 Milennial Realist

Be part of the change, Boomers.

Or be run over by it.
——————————————————————–

Ha ha…you wish.

We’re old enough now to keep stalling any changes that could possibly negatively impact us. We are still in control.

We will delay things long enough, that by the time any change materializes, it will be your problem entirely.

Sucks to be you.

#117 Tater on 10.01.18 at 7:58 am

#18 Millennial Realist on 09.30.18 at 5:03 pm
It’s way too early to call this one. We should absolutely keep ramping up the taxes on the 1%.

Eisenhower had the tax rate right, just like most old-school conservatives did. Funny how no one on the right admits this now. 90%. All that did was create the biggest, most democratic economic boom in world history. Sheesh! What’s there to lose by moving back in the same direction after decades of failed Reaganomics?

If the Boomer elites don’t like it, they can leave. Enjoy Thailand and Central America, guys. Don’t forget to bring lots of firearms and bottled water with you, and hire private security guards that you can trust – for only a little while, unfortunately.

Recognize the proven heritage of what made North America truly great this last century. Don’t act like second-class oligarch wannabees.

Be part of the change, Boomers.

Or be run over by it.
—————————————————————
Of course there were more than a few loopholes and no-one actually paid that 90% rate, but you keep telling yourself that it was the cause of the post WW2 boom.

Had nothing at all to do with America not being bombed to ruin unlike their European competitors.

https://almostclassical.blogspot.com/2011/03/90-tax-rate-myth.html

#118 dharma bum on 10.01.18 at 8:04 am

Justin Trudeau: USMCA

https://www.youtube.com/watch?v=_JAA2Unb0B4

#119 Tony on 10.01.18 at 8:10 am

First class sucker money coming into the Canadian dollar today.

#120 crowdedelevatorfartz on 10.01.18 at 8:17 am

NAFTA “deal”.

Which province did Trudeau throw under the bus?
Quebec (Dairy) ? And they have their provincial election….today.
Or Ontario (Autos)?
Either way I’m sure the federal Libs will try and spin this crappy 11th hour deal as best they can.
All while Trump brags he hosed us…..
Its going to be a long long election year for “Selfie.”

#121 Turds on 10.01.18 at 8:32 am

but… but… the man child told us the budget will balance itself!

For any idiot who voted for this metro-sexual silver-spooned PC leftist pot head part-time drama teacher dropout, were you expecting a different outcome?

I hope this all enfolds to hurt the libtard voters the most.

#122 Gravy Train on 10.01.18 at 8:42 am

#115 Oft-deleted now-banned much-maligned stock.picker on 10.01.18 at 6:31 am
DELETED, BANNED.
You were warned. – Garth

Hooray! Bye-bye! Don’t let the door hit your bum on the way out! :)

#123 Remembrancer on 10.01.18 at 8:43 am

#110 Smoking Man on 10.01.18 at 1:39 am

02-Feb-2003 was a busy day for a lot of people.

#124 crowdedelevatorfartz on 10.01.18 at 8:43 am

@#46 After the whining stopped

The Flop format is just fine.
Use your scroll wheel and skate past.
Or live with it.

#125 TurnerNation on 10.01.18 at 8:44 am

Government…a free and open debate right? Why is all the important stuff rammed through without choice, observation or debate at Midnight while we sleep.
If voting mattered…they’d not let us participate, amiright?

#126 crowdedelevatorfartz on 10.01.18 at 8:45 am

@#115 formerly deleted now permanently banned stock picker

Looks like you’ve moved up in the world.

#127 NoName on 10.01.18 at 8:55 am

Maybe deal was reached but, I wonder how many people had panic, anxiety and god forbid heart attack over last few weeks with all this negotiation. How many working Joe becomed deplorable Joe. I know quite of few…

Now we wait for election for fed. :-)

#128 Tea4Two on 10.01.18 at 9:09 am

NAFTA agreement reached…

-the first 2.6 million Canadian car exports to the U.S. (significantly higher than the current 1.8 million) would be shielded from tariffs

-Canada agreed to eliminate its “Class 7” pricing system for certain milk ingredients

-U.S. farmers granted more access to the protected Canadian market, from 3.25 per cent to 3.6 per cent

-Canada agreed to raise its low threshold for applying duties on U.S. goods purchased by Canadian online shoppers.

-no resolution on the issue of the steel and aluminum tariffs imposed on Canada or the retaliatory tariffs imposed on various U.S. products

-no changes to the “Chapter 19” dispute-resolution system

#129 IHCTD9 on 10.01.18 at 9:32 am

“-Canada agreed to raise its low threshold for applying duties on U.S. goods purchased by Canadian online shoppers.”
———

Sweet, I hope we get the same 800.00 or so the Americans get.

“-no resolution on the issue of the steel and aluminum tariffs imposed on Canada or the retaliatory tariffs imposed on various U.S. products”
————-

These need to go asap, both sides better make it a priority.

#130 crowdedelevatorfartz on 10.01.18 at 9:44 am

@#121 Turds

“For any idiot who voted for this metro-sexual silver-spooned PC leftist pot head part-time drama teacher dropout, were you expecting a different outcome?”

++++

No not really.
I was just tired of Harper’s arrogance.

“Selfie” will be a one term wonder OR be forced to “rule” in a minority govt……
Either way… rendered irrelevant

P.S.
You forgot “snow board instructor” in Trudeau’s resume’

#131 A doctor on 10.01.18 at 9:46 am

I’m a %er, by income and wealth. Income is the fools way of “taxing the rich”. My income is high, yes, but I simply reduce my work hours as I have no reason to work more. I stop taking patients and cut hours and spend time with my young kids instead. In B.C., it’s even more ridiculous as patients 51-65 are paid at half the rate and 65 above are not paid at all. So if you are not incorporated, at the top bracket, your 51st patient you just saw for 10-20 minutes will get you maybe 16 bucks, minus overhead, 11 bucks left, and minus taxes, about 5 bucks. That’s equivalent to 20 bucks an hour for a doctor for working harder. Tell the nurses union that you will cut your overtime wages instead of paying time and a half or double and see how they react.

So instead, I cut my spending, have more to invest in divvy paying stocks that are taxed at a lower rate but more importantly have more time with my kids. My income is even higher than when I was younger when I was pouring my life into 60-70 hour weeks.

And another thing for those in Vancouver and TO, 200k is not a lot of money when rents are 3k for a 2 bedroom, or the average 2 br condo is 800-1.3m. We aren’t living like kings out here.

#132 Remembrancer on 10.01.18 at 9:51 am

#129 IHCTD9 on 10.01.18 at 9:32 am

“-Canada agreed to raise its low threshold for applying duties on U.S. goods purchased by Canadian online shoppers.”
———

Sweet, I hope we get the same 800.00 or so the Americans get.
—————————————————————-
Saw / heard variously $100 or $150 exempt, definitely not $800…

#133 Remembrancer on 10.01.18 at 9:55 am

#126 crowdedelevatorfartz on 10.01.18 at 8:45 am

More like on the express elevator to hell. Goin’ down!

#134 Stompin Tom on 10.01.18 at 10:21 am

NAFTA is dead USCMA is alive! Herr Trump is going to be talking about the new deal at 11 am EST. T2 at noon. A good day for trade in North America. Kudos to everyone for making a deal!

#135 IHCTD9 on 10.01.18 at 10:35 am

#132 Remembrancer on 10.01.18 at 9:51 am
#129 IHCTD9 on 10.01.18 at 9:32 am

“-Canada agreed to raise its low threshold for applying duties on U.S. goods purchased by Canadian online shoppers.”
———

Sweet, I hope we get the same 800.00 or so the Americans get.
—————————————————————-
Saw / heard variously $100 or $150 exempt, definitely not $800…
_______

Looks like their de minimis is 800.00.

https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800

Canada’s is a measly 20.00…

#136 IHCTD9 on 10.01.18 at 10:43 am

#134 Stompin Tom on 10.01.18 at 10:21 am
NAFTA is dead USCMA is alive! Herr Trump is going to be talking about the new deal at 11 am EST. T2 at noon. A good day for trade in North America. Kudos to everyone for making a deal!
____

Aye, getting a deal is good news – but those bloody steel tariffs need to go! (At least the Canadian Ones, we
don’t make hardly any steel here anymore).

#137 Shawn Allen on 10.01.18 at 10:44 am

Trade is NOT Canada versus the U.S.

Talk of “Canada” winning or the U.S. “wining” is utter nonsense.

Each individual tariff protects a special interest group like Canadian auto workers or Canadian dairy farmers or U.S. steel makers and harms the great bulk of the consuming population.

It would be better to speak of this deal being about North American consumers versus North American business special interests.

In this case consumers retained low tariffs in most cases.

#138 crowdedelevatorfartz on 10.01.18 at 10:48 am

@#131 A doctor
” In B.C., it’s even more ridiculous as patients 51-65 are paid at half the rate and 65 above are not paid at all….”
++++

Can you explain this again?
The BC Govt only pays you half the billing charges for people 51-65?
And nothing for people 65 and older?
The people that take up most of the doctors time?
WTF?

Now I’m beginning to understand why its so hard to find a doctor…..

Is this the new 2018 version of Eskimos leaving their elderly out on the ice for the polar bears?

#139 Shawn Allen on 10.01.18 at 10:48 am

Canada’s Trade Negotiators did very well

It looks like Canada’s negotiators got most of what they wanted by refusing to concede on Dairy until they very end. Then they gave a little on Dairy so Trump could claim victory. And agreed to a meaningless name change so Trump could claim he killed NAFTA.

No wonder Trump does not like the Canadian negotiators. They played this well. I won’t call it a win for “Canada” because it is individual Canadians businesses (and therefore investors), workers and consumers that win or lose and there is nothing collective about it. But I will call it a clear win for the Canadian negotiating team.

#140 thebarold on 10.01.18 at 10:49 am

I enjoy this blog but am tiring of the partisan rhetoric. If no deal was consummated the same but opposite arguments would be made.

Please identify any ‘partisan rhetoric’ that was employed. – Garth

#141 jojo on 10.01.18 at 11:24 am

#55 Ryan wrote:
If you babies don’t like taxes; then leave.

We did now all you deadbeats will actually have to get a job to make up the losses.

Trumpland dropped my taxes by 24%

Eat that

#142 Remembrancer on 10.01.18 at 11:28 am

#135 IHCTD9 on 10.01.18 at 10:35 am
Saw / heard variously $100 or $150 exempt, definitely not $800…

Looks like their de minimis is 800.00.

https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800

Canada’s is a measly 20.00…
—————————————————————–
Let me be more precise then…

The US # is $800 (since 2016 as you posted the link for)

The current exemption coming into CA is $20, which is being increased to either $100 or $150 with ratification of NAFTA2 er “USMCA, MCA, the USMCA which many people will be talking about now that NAFTA, the worst deal ever is gone”…

#143 yvr_lurker on 10.01.18 at 11:34 am

Although I am not much of a fan of Trudeau, his negotiating team really did a great job in not capitulating to the endless US demands. Freeland gets lots of credit for her savy, and determination.
It doesn’t change the fact that Canada needs to become less reliant on the US and to expand trade with other partners. Who knows whether Trump will actually follow the rules and not impose new tarrifs under the disguise of national security. The proposed LNG plant is a good step in the direction of expanding our trading partners. The Gov’t needs to prioritize developing more self-reliance here.
My bet is that there will be a subtle boycott from consumers of the low quality US dairy products. Nobody in my family will be buying this stuff, and it is only BC wines for us. Wife and I are learning spanish this fall, as it helps when traveling in Central America. No need to go to the U.S.

#144 jojo on 10.01.18 at 11:38 am

I moved to Trumpland after Crybaby attacked my business and family with huge tax increases.

Since we are an online retailer it really didn’t matter where my office was.

We pulled the trigger. It was the best business move we have ever made. Our taxes have dropped 24% YOY and we now have agovernment here that appreciates ideas, hard work, and entrepreneurship.

Since most Canadians are socialists – you beleive that ripping off hard working people is your right. You spread taxes to all the deadbeats who won’t work.

You would think peoplle would understand history. Marxism isn’t the way. But you are headed that way

I, and my family, now keep our wealth to create jobs, investments, even more ideas.

Public sector wages for 60 years were 20-30% under private salaries due to the golden handshakes they received in return.

Now these people make double what is made in the private sector and they still have golden handshakes.
To pay for this your taxes will explode…. It is so easy to see. No politicans will do the right thing and lwoer governmetn costs by 40% to meet revenues.

Now that assessments across Canada are starting to go down, you will see all levels of government have their revenues cut in half…..

TAXES BITCHEZ!

One can also easily see the trillions in debt you have crashing Canada like a wet noodle. My financial advisor said he tried to sell Canada bonds to his customers. They laughed at him.

Canada and its sub national governments are doomed.

Worse – you are going vote in Crybaby one more time to add to his 100 Billion dollar debts he has added in 3 years……

Since you hate wealth – we did what only comes natural

we went to palce that respects our rights to make money and create wealth.

You reap what you sow;.

You deserve your wasteland

#145 IHCTD9 on 10.01.18 at 12:32 pm

#142 Remembrancer on 10.01.18 at 11:28 am
#135 IHCTD9 on 10.01.18 at 10:35 am
Saw / heard variously $100 or $150 exempt, definitely not $800…

Looks like their de minimis is 800.00.

https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800

Canada’s is a measly 20.00…
—————————————————————–
Let me be more precise then…

The US # is $800 (since 2016 as you posted the link for)

The current exemption coming into CA is $20, which is being increased to either $100 or $150 with ratification of NAFTA2 er “USMCA, MCA, the USMCA which many people will be talking about now that NAFTA, the worst deal ever is gone”…

—–

Ah yes, sorry I misunderstood what you were getting at.

Even 150.00 would be a good improvement, that 20.00 thing was stupid.

However “fair” would mean we get 800.00 too :)

#146 Oft deleted much maligned stock.picker on 10.01.18 at 12:33 pm

BANNED

#147 Loonie Doctor on 10.01.18 at 12:38 pm

#131 A Doctor

Well said. I am also a 1%er doctor. The most elegant solution and common sense response to excessive taxation on earned income is to spend less (if needed to enable working less) and to work less (if you are working more than needed for your sense of fulfillment).

We only get a certain amount of time. If the after-tax financial return on our time/effort is no longer competitive compared to spending that time on something else. Then we should modify how we spend our time and money.

Most of the docs I work with have started scaling back or being more selective in how they work over the last couple of years. I pity the ones just starting out – it will be harder for them to get ahead. The good part of the tax shocks and public insults to the 1% income earners has been to cause them to left there heads up and take a new look at work/life balance. The other good side effect is that those who are continuing to work and spend are at least starting to pay attention to the tax bill.

Personally, I didn’t mind paying 48-50% marginal tax rates. It is part of supporting Canadian infrastructure. However, I find 53.5% psychologically unpalatable. Especially when I see it taken for granted and how it is spent. Someone else can work to do that. I’ll play with my wife/kids and walk my dogs. Much healthier.

#148 joblo on 10.01.18 at 12:50 pm

Trump now loves T2
All is good

#149 NoName on 10.01.18 at 12:54 pm

#147 Loonie Doctor on 10.01.18 at 12:38 pm

Well said. I am also a 1%er doctor.

You are so lucky that you are doctor in canada, because if you are practicing elsware, you would be learning self defence, and would not have time to comment there.


In the southern city of Guangzhou, the Zhongshan Hospital has hired taekwondo experts to teach doctors self-defense techniques.

https://www.nytimes.com/2018/09/30/business/china-health-care-doctors.html

#150 KLNR on 10.01.18 at 12:58 pm

@#121 Turds on 10.01.18 at 8:32 am
but… but… the man child told us the budget will balance itself!

For any idiot who voted for this metro-sexual silver-spooned PC leftist pot head part-time drama teacher dropout, were you expecting a different outcome?

I hope this all enfolds to hurt the libtard voters the most.

___________________

LOL, take a deep breath.
Forgot your meds today eh.

#151 IHCTD9 on 10.01.18 at 1:08 pm

#147 Loonie Doctor on 10.01.18 at 12:38 pm

However, I find 53.5% psychologically unpalatable. Especially when I see it taken for granted and how it is spent.
———

I don’t make that much $, and so will never have to worry about 53.5% marginal rates. BUT, I do care what the Government does with my money, and Trudeau kicked the cash incinerators up to 11 right out of the gate.

It took less than a year of watching this guy jetting around the world handing out money like it grew on trees before I had resolved to drastically cut back on my taxability.

I think most folks who are convinced that their blood sweat and tears is being put to good use, will suffer some pretty high taxation.

The opposite is also true however…

#152 Lorne on 10.01.18 at 1:10 pm

#138 crowdedelevatorfartz on 10.01.18 at 10:48 am
@#131 A doctor
” In B.C., it’s even more ridiculous as patients 51-65 are paid at half the rate and 65 above are not paid at all….”
++++

Can you explain this again?
The BC Govt only pays you half the billing charges for people 51-65?
And nothing for people 65 and older?
The people that take up most of the doctors time?
WTF?

Now I’m beginning to understand why its so hard to find a doctor…..

Is this the new 2018 version of Eskimos leaving their elderly out on the ice for the polar bears?
……..
That is not age 51-65 & +65 but simply number of patients seen in a particular time period so you give each patient a reasonable amount of time for their concern. If you were simply paid the same amount for each patient the thought is that some would try to see as many as possible and not show the concern that is necessary for their patients.

#153 crowdedelevatorfartz on 10.01.18 at 1:39 pm

@#143 yvr lurker
“Although I am not much of a fan of Trudeau, his negotiating team really did a great job in not capitulating to the endless US demands. Freeland gets lots of credit for her savy, and determination.”

++++++
Your “premature appreciation” is a little optimistic don’t you think?

Its been less than 12 hours since it was signed.
The ink isn’t even dry and you’re congratulating these people?
Lets give it 6 months or better yet 12 months for the changes to really hammer home….

I always laugh at these negotiations reaching the 11th hour with the media hanging on every utterance as if the world will crash if it drags on 2 more days.
Nah, they were probably all done the hard dealing weeks ago and enjoying the extra limelight….
I can see it now .
2015 elections.
Freeland for PM.
Unfortunately Trudeau beat her to the punch as the first PM to cry on tv…….

#154 NoName on 10.01.18 at 1:43 pm

#92 Terry on 09.30.18 at 10:01 pm
They have a new NAFTA deal !!!!

An agreement has been reached!

Ka-Ching to the TSX and Canadian investments!

indu 220 points up with brakeout
tsx 30 points up lower than friday

Sure i am glad you are not advizing me!

#155 Stan Brooks on 10.01.18 at 1:45 pm

#147 Loonie Doctor on 10.01.18 at 12:38 pm
#131 A Doctor

Pretty much my observation as well. It is the same with all small businesses. Scaling back.

The model of loading the sheeple with debt and then beating it with a stick to pay it back, accompanied with higher taxes is literally driving the economy to the ground.

It beats the hell out of me who will provide health services in the big cities in just a few years. To ‘make’ it anywhere in GTA and get an average house it is not sufficient anymore to have even 2 lawyers or a doctor in the family.

Think about it, a single doctor income of 200 k – 250 k considering the heavy taxes, cost of living including houses is way too low to pay for:

1. office expenses, practice insurance, including receptionist/nurse salary
2. marginal tax rate of 53 %, average of 45 % +
3. an average ‘house’ in the range of 1.2 – 1.5 million in GTA/Vancouver
A typical ‘doctors’ house would be today worth 2.5 – 3 millions
4. skyrocketing cost of living
5. savings for retirement as doctors have no pensions

Even 2 doctors could barely make it but if they they have 2 kids it becomes almost mission impossible.

Think about it, essential top tier service workers like doctors can not sustain life in such expensive cities – new entrants do not stand a chance, old and established are scaling back on activities/services due to excessive taxation.

Anyone believing that doctors and nurses will come en masse to GTA/Vancouver in order to live in basements, have no children and work their butt off under the immense pressure that the system is placing on them (while taxed to death) for the privilege to live in a glass condo (maybe, if lucky) with huge maintenance and wipe the butts and attend to the needs of the old ‘lucky’ home owners is just plain insane.

I know personally doctors who have given up their practice in their early 40-es due to the stress levels.

Waiting times at emergencies increased from 4 to 8, soon going to 12 hours at all major city hospitals.
Waited once a whole night. Literally a nightmare.

With overload far over capacity, capacity will be ‘optimized’ by sending patients back.

The same will soon apply to all services as no entrants in their right mind will come to such expensive places.

A big city with no services is like a jungle.

#156 jess on 10.01.18 at 1:50 pm

FCC to Give Telecom Companies $3 Billion-a-Year for 5G Phone Rollout
And You’re Paying for It; Corporate Welfare Plan Cuts by 90% What Local Governments Can Charge for Access to Utility Poles

By David Cay Johnston, DCReport Editor-in-Chief

David Cay Johnston

The Trump administration, which proposed tripling housing costs for low-income renters, is slashing by 90% or more the utility pole rents paid to local governments by Verizon, AT&T and other cell phone providers. The rent cut for these corporations is worth about $3 billion annually, the National League of Cities estimates.”

https://www.dcreport.org/2018/09/25/fcc-to-give-telecom-companies-3-billion-a-year-for-5g-phone-rollout/

Jerry Brown Signed California’s Net Neutrality Law. One Hour Later, the DOJ Filed Suit to Invalidate It.
=====================
Have you ever felt like the government doesn’t really care what you think?

Professors Martin Gilens (Princeton University) and Benjamin I. Page (Northwestern University) looked at more than 20 years worth of data to answer a simple question: Does the government represent the people?

Their study took data from nearly 2000 public opinion surveys and compared it to the policies that ended up becoming law. In other words, they compared what the public wanted to what the government actually did. What they found was extremely unsettling: The opinions of 90% of Americans have essentially no impact at all.

This video gives a quick rundown of their findings – it all boils down to one simple graph:
this is what they found : princeton study
https://www.youtube.com/watch?time_continue=25&v=5tu32CCA_Ig

==========
“These guys are wrong,” she says. “They should not be in public office, and we are going to take them out.”
https://www.motherjones.com/politics/2018/10/first-she-took-down-a-judge-mired-in-a-sexual-assault-controversy-now-shes-coming-for-republicans/

Professor Behind Recall Of Judge In Stanford Rape Case Has New Political Goal
September 24, 2018 – 10:56 am

The Stanford law professor who led the successful recall of a California judge over his handling of a sexual assault case is now broadening her fight by targeting politicians.

Professor Michele Dauber on Monday announced a new political action committee, the Enough is Enough Voter Project.
https://www.nytimes.com/aponline/2018/09/24/us/ap-us-elections-2018-sexual-misconduct-pac.html

Minnesota Rep. Jason Lewis, who is running in a tight race against challenger Angie Craig, a Democrat endorsed by Emily’s List. Earlier this summer, CNN exposed misogynistic comments Lewis made on a radio show in 2012, when he complained at length that he could no longer call women “sluts” and argued that “young single women” who vote based on insurance coverage for birth control pills were “without a brain” and no longer human beings. (He’s also made racist and homophobic statements.)
====================

#157 Steven Rowlandson on 10.01.18 at 2:00 pm

It looks like the ban hammer is getting a work out!

Guys if there is something you don’t like about the country fine! Fix it, leave it or wait round and pick up the pieces when it crashes and burns. In the mean time polite dissent is usually tolerated and sometimes to a certain point. The main stream political parties need some competition that is completely different. Give the matter some thought.

#158 Smoking Man on 10.01.18 at 2:18 pm

“CANT BE DONE”

– Win GOP
– beat Hillary
– Win @POTUS
– 35 year tax reform
– Korea Peace Deal
– renegotiate #NAFTA
– decrease CO2 emissions
– energy/oil self sufficiency
– new Trade Deals Japan/ SKorea
– GDP 4%+
– record unemployment
– clean Swamp

Oh, it’s only been 1 1/2 yrs

#159 Blacksheep on 10.01.18 at 2:35 pm

On the topic of taxation:

Garth your a connected dude, can you please explain why so many countries allow the legal sheltering of taxes via the ‘legal off shoring’ of said taxation?

I get the whole lobbyist thing, but how can politician’s claim to have 99% of the populations best interest at heart, when this legal theft of tax revenues is allowed to happen on global scale, all while they have the ability to stop it? It doesn’t matter how much or little this ‘escaped tax’ would amount to, it’s the principle of it all.

Why don’t you call out this obvious unfairness in our (most countries) tax systems?

Please don’t say it’s because they employ ‘tax avoidance, not tax evasion’, because that is just an excuse to continue the financial support of the super wealthy so they do not have to pay the same tax rates, you and I do.

#160 Brian on 10.01.18 at 2:37 pm

FYI – if your investment acct is with the maroon bank, you get 5 free trades – today only – as a token for their outage last week.

#161 yvr_lurker on 10.01.18 at 3:08 pm

#153 crowdedelevatorfartz

———————
Compared to what it looked like we were going to get from Trump for the past year (i.e. zilch), I am glad the Canadian team did not capitulate. We kept the dispute resolution process, which is key when one is partnered with an unpredicatable liar who will bend/break all the rules. I could care less that we will have the option to buy their low-grade dairy products and that their wines will be more visible in BC supermarkets….. ain’t going to be buying any of that stuff, or spending any $$$ going down there until Trump is long gone….. If you love defending Trump so much, why not just pack up and emmigrate out of our “socialist utopia”

#162 SoggyShorts on 10.01.18 at 3:24 pm

#158 Smoking Man on 10.01.18 at 2:18 pm
“CANT BE DONE”

– Win GOP
Republicans shot themselves in the foot by not rallying behind one sane candidate.
– beat Hillary
– Win @POTUS
Yep, he changed the nature of the game, turning it into reality TV show gave him the advantage.
– 35 year tax reform
Giving tax cuts to the wealthy and corporations? No one said that “Can’t be done” in fact most assumed he would do it.
– Korea Peace Deal
– renegotiate #NAFTA
Could be argued that making deals when you have a massive advantage isn’t all that impressive.
– decrease CO2 emissions
What did trump do to cause this? Nothing, just leftovers from the past admionistration
– energy/oil self sufficiency
In total energy consumption, the U.S. was between 86% and 91% self-sufficient in 2016
– new Trade Deals Japan/ SKorea
Let’s see how those turn out.
– GDP 4%+
FAKE NEWS 4.1% in a single quarter looks good, but it was 2.7% for the whole year of 2017. Obama had a 5.1% quarter followed by a 4.9%– still doesn’t count
– record unemployment
Again, mostly leftovers from the previous administration, all trump did was manage to not screw it up
– clean Swamp
Really? Other than firing people that he hired, how much swamp was drained?

#163 The Real Mark on 10.01.18 at 3:34 pm

“Now that assessments across Canada are starting to go down, you will see all levels of government have their revenues cut in half…..”

Assessments are not linked to property tax revenues. Assessments are only used to determine the pro rata share of tax revenue required.

Although it certainly is a valid assertion that there will be much more public push-back against property tax rates as housing prices decline and household budgets tighten up severely due to higher finance costs. Combined with higher public sector finance costs, the public sector gravy train may very well be coming to an end. Its about time that the private sector took the lead in this country instead of being the proverbial caboose.

#164 Terry on 10.01.18 at 3:49 pm

#92 Terry on 09.30.18 at 10:01 pm
They have a new NAFTA deal !!!!

An agreement has been reached!

Ka-Ching to the TSX and Canadian investments!

indu 220 points up with breakout
tsx 30 points up lower than Friday

Sure i am glad you are not advising me!

Hey No Name, it will take months to fully price in the the new USMCA for the Canadian markets.

#165 Jerry on 10.01.18 at 4:00 pm

Taxing people who have more than you will not increase your wealth nor your ability to buy real estate. Give your head a shake. – Garth”

Of course it will increase your ability to buy real estate. We know that in Victoria and Vancouver people buying multiple homes outnumber first time buyers and we are among the few cities in the world where this is happening. In almost every city around the globe first time buyers far outnumber investment buyers. Not in BC. People are taking equity out of their homes to buy more and more and are directly responsible for the bidding wars, price run ups and the mania you are seeing in real estate. There is a reason the wealthy and real estate industry are so infuriated with the speculation tax. They know this would bring a calm back to the market here and work. If you want to use homes as stocks and speculate pay up or shut up.

#166 James on 10.01.18 at 4:11 pm

#158 Smoking Man on 10.01.18 at 2:18 pm

“CANT BE DONE”

– Win GOP
– beat Hillary
– Win @POTUS
– 35 year tax reform
– Korea Peace Deal
– renegotiate #NAFTA
– decrease CO2 emissions
– energy/oil self sufficiency
– new Trade Deals Japan/ SKorea
– GDP 4%+
– record unemployment
– clean Swamp

Oh, it’s only been 1 1/2 yrs
____________________________________________
Wow did you come up with that on your own old man?
Me thinks not!
Try being creative old man!

Manny_Ottawa
@manny_ottawa | 22,667 followers
https://www.trendsmap.com/twitter/tweet/1046791471095984128

#167 Gravy Train on 10.01.18 at 4:15 pm

#113 Stan Brooks for PM on 10.01.18 at 6:29 am
“Please, Stan, consider running for political office!” Sorry—no can do. Stan’s psychiatrist only allows him two hours a day of straightjacket-free time. :)

#168 Jerry on 10.01.18 at 4:27 pm

Except owning a secondary property is not speculating. So, it’s an envy tax. – Garth

Speculation- Investment in stocks,property, or other ventures in the hope of gain but with the risk of loss.

Sounds like the textbook meaning here in BC unless you really believe all of a sudden when prices have shot up that all of these people buying multiple homes were just dreaming about being landlords

#169 SunShowers on 10.01.18 at 4:28 pm

Time for Ottawa to man up and goose the capital gains inclusion rate.

Hell, kick that baby up to 100% and we can definitely talk about lowering the top marginal tax brackets.

#170 crowdedelevatorfartz on 10.01.18 at 4:34 pm

@#161 lurker
“If you love defending Trump so much, why not just pack up and emmigrate out of our “socialist utopia”.

++++

I didn’t realize pointing out the fact that the ink is barely dry on the NAFTA ( USMCA) agreement and your crowing at the top of your lungs at what a fab job Freeland and Trudeau did.
Please.
Spare me the jingoistic “Canada Kicks Ass” celebrations.
Our population is 1/10 of the US and if they want to crush us…..they can.
As for Trump.
He’s an idiot who deserves everything that’s coming to him ( hopefully in the mid terms in Nov).

As I commented before.
Lets give this 6 months to a year before we pat the Liberals on the back shall we?
Anything else at this point is pure Public Relations tripe from Liberal hacks in election mode.

#171 Loonie Doctor on 10.01.18 at 5:26 pm

#149 No Name

I actually have a black belt in karate and part of that is a Krav Maga based self-defense system. I consider myself lucky to interact with the people that I do in my practice. I is an awesome career that I came to through a combination of luck and effort. Still, I do not so lucky that I will sacrifice my health or family life for it anymore though. Balance isn’t just for investing.

#172 Gravy Train on 10.01.18 at 5:58 pm

#87 Smoking Man on 09.30.18 at 9:28 pm
“[…] Bye marketing board.” Wrong again, dummy! :)

#158 Smoking Man on 10.01.18 at 2:18 pm
“[…] Decrease [carbon] emissions.[…]” Funny guy! :)

“[…] Drain swamp.[…]” You can rest assured that Mueller’s draining it!

Are you applying for a position with Trump as his new campaign manager? He’s quickly running out of White House staff! :)