Fleeced

There was a time I dreamed of earning in a year what I have to remit to the CRA on Tuesday. And that’s just the final installment for 2018. Taxes in Canada have reached a point where many doctors, for example, have decided to work less, cut back their practices and enjoy life more – since working those extra hours isn’t worth it. Not since Justin created a new high-income tax bracket, quashed corporate income-splitting and gutted TFSA contributions. Perhaps this is why 16% of Albertans can’t find a family doctor, 26% of Quebec residents are without one or that NS cancer patient’s vid  last week gripped so many hearts.

There’s more to come from the current government. The Department of Finance has been mandated to examine raising the threshhold for capital gains tax, significantly increasing the rates, while reducing the dividend tax credit. All aimed at the same target.

As mentioned here already, four in 10 families under the current Liberal administration pay no net tax. They receive more in government benefits (especially the breeding premium) than they remit in federal and provincial income tax. Indeed the 2015 platform forecast a $3 billion extra fleecing of the wealthy to finance a $3 billion ‘middle class’ tax cut. That small tax cut happened but the tax revenues did not materialize (docs and others reduced their incomes), so the deficit went up.

The top 1% of tax filers (making about $220,000 or more) take home 10% of all income but pay about 18% of all taxes. The top 20% of income-earners (family incomes over $120,000) earn 49% of income yet pay 65% of taxes. Families with a couple of kids earning $80,000 or less get the free ride – no net contribution for health care, education, defence, coast guard, food safety etc.

Whether this system is just or not is moot. More important, what are the effects? Will taxing the 1% more make life better for all? Or will it lead to wealthy people adjusting their lives to avoid the extra pain?

Seems that’s exactly what is happening. As rates creep higher and deductions wither, tax avoidance blossoms. The Trudeau eat-the-rich bracket has therefore collected only a fraction of what was anticipated. Human nature is breaking out all over, and now Ottawa’s decided to rein it in with a fat increase in the CRA’s enforcement budget.

Just to be clear, tax avoidance is legal. Tax evasion is a crime. Every person has the right to arrange their affairs in order to attract the least amount of tax. The courts have confirmed that. But the feds have something called GAAR on their side – the general anti-avoidance rule. That says the CRA can invalidate any savings flowing from actions that had no commercial purpose other than to reduce tax. Now law firms that help clients craft such schemes are being routinely fined, along with accountants and tax-preparers. In fact, legislative change over the years has turned accountants into de facto CRA employees. They answer to Ottawa first, then advise you. Only tax lawyers avoid this conflict-of-interest.

The Libs promised to turn the CRA into a toothy, taxpayer-chomping pitbull. And that’s happened. In the last three years alone it has audited close to 40,000 real estate deals in the GTA and YVR and assessed over $70 million in penalties. Caught in the net have been renovators, speckers, flippers and people who think they can avoid capital gains by declaring every property they own as a principal residence.

Small business owners and professionals with corps now face a minefield of rules and enhanced CRA scrutiny. It’s aimed at preventing people from retaining money in a company instead of being taxed on it personally. The premise is that a guy taking daily risks to be an entrepreneur should be taxed the same as a pensioned employee. Flawed logic.

Meanwhile untold numbers of Canadians Airbnb their houses, and pay nothing. In Toronto last year the average host rented out space 87 nights of the year and pocketed about ten grand. How many of these people filed the T776 form and declared their rental income? If they collected more than $30,000, did they register for, collect and remit HST?

The CRA also seems to have a blind spot when it comes to rental suites – meaningful, since Vancouver has the highest proportion in North America.  People renting their basements are legally required to report this as income, adding it to other earnings and paying tax at the marginal rate. Plus, if they alter their houses to accommodate a renter, they will lose a hunk of their capital gains exemption.

At least, that’s the theory. But how many comply? So far there’s no evidence the CRA has gone after this massive pot of untaxed moolah. That could be because there are 270,000 1%ers in Canada, and 36.79 million who are not. Of those, 25,669,742 are registered voters.

Taxes are a fact of life. Equity? Not so much.

195 comments ↓

#1 1% Prepper on 04.29.19 at 5:11 pm

Spot on Garth. I’m just an anecdote, but I’m in what society says are my peak earning years. I’m the past I’ve been in and out of the 1% club. And if I’m out, it’s not by much.

I definitely saw a change in how “government” viewed my contribution to society. I am now just an over taxed cash cow. I’ve always paid my ‘fair share’ but I’ve reached that point where I see additional work as meaningless as the government gets more than half of what I make.

So I’m adapting. Taking early retirement at 50. Got rid of the luxury cars and high dollar consumables a few years ago in preparation and just saving as much as I can. Maxed RRSP, And TFSAs. My investment income in retirement will put me around the Canadian average income. But I won’t be working. At least not for a T4. Thanks Trudeau, I’m gonna join the bottom 40% and pay no taxes but get tons of benefits. I love socialism.

#2 Smoking Man on 04.29.19 at 5:25 pm

You might also want to menton us pro high earning xpats that give T2 his father’s famous salute. Even in Commie California you far less tax than you do in Canada.

T2 will be history come October. Let’s see if andrew rolls back theiving.

I may even return if it happens.

#3 Michael King on 04.29.19 at 5:30 pm

“The Department of Finance has been mandated to examine raising the threshold for capital gains tax, significantly increasing the rates, while reducing the dividend tax credit.”

As a retiree, reducing the dividend tax credit would be a major bummer. As of today, Eric Grenier has the Conservatives 5.5 points ahead of the Liberals. While I won’t vote for them because of their policies regarding the climate emergency, I do agree that they would be much kinder to investors with no defined pensions. If it happens, I won’t be sad to see Trudeau and his minions lose the election. Review the photos of his Mr. Dressup India trip and it’s impossible to take him seriously.

#4 Salty on 04.29.19 at 5:35 pm

When the government pays you over $500 per child per month, it makes a lot of sense to not work and just populate the world.

Or even worse, have your working capital somewhere else, not declare it here, and have a sweet bonus, courtesy of the Libs!

How long until the system finally breaks, and we do a tax reform to account for a global economy?

#5 Victor V on 04.29.19 at 5:43 pm

#2 Smoking Man on 04.29.19 at 5:25 pm
You might also want to menton us pro high earning xpats that give T2 his father’s famous salute. Even in Commie California you far less tax than you do in Canada.

T2 will be history come October. Let’s see if andrew rolls back theiving.

========

Some folks who know a thing or two about politics are saying T2 is history:

https://www.facebook.com/kinsellawarren/posts/10157320642038945

#6 Dolce Vita on 04.29.19 at 5:54 pm

Do I detect SOUR GRAPES in what I read subsequent to the sentence fragment below?

“…what I have to remit to the CRA on Tuesday”.

I mean look it, some one has to pay for these very, very important programs that directly affect the lives of every Canadian…you know, “DO OR DIE, MUST HAVE” stuff:

-$600 MM for MSM Luddites struggling to adapt to a digital age that has been around for 20 years or so – slow on the uptake?. Like throwing cash at them is going to help if their that thick.

-$650 MM on global sexual and reproductive health and rights for the Congo et. al.

-$50 MM to impress supposed TV heavy weight personality Trevor Noah (who ever that is) for a global child education fund – Federal Budget via Twitter. Of course Justin forgot that 1.2 MM Canadian kids live in poverty or 1 in 5 (1 in 2 for First Nations kids).

-$22 Billion for The Canada Child Benefit program to 2020. Very equitable to the 12.4 MM Single Canadians (> 15 yrs old, 2016), 35% of the population gets nothing.

…I could go on, but I do not want to steal the thunder totally from others.

—————————————————

Come on Garth you 1%’er, where’s that “giving, caring, sharing spirit”?

Only ONE HUNDRED AND SEVENTY FIVE DAYS until the next Federal Election. Please make time fly oh upper deity of your choice (big electron for the non-believers).

#7 Richard Pikulski on 04.29.19 at 5:55 pm

Ppc party might be way to go

#8 yorkville renter on 04.29.19 at 6:00 pm

Paying myself divvys + massive RRSP contribution = really small tax bill this year.

We’ll see how long I can keep this going. But the tax man cometh – this scheme will eventually run out of RRSP room and I’ll need to pay taxes on the RRSP income/contribution that final year

#9 SunShowers on 04.29.19 at 6:06 pm

“Taxes in Canada have reached a point where many doctors, for example, have decided to work less, cut back their practices and enjoy life more – since working those extra hours isn’t worth it.”

How awful! Having to cut work hours to “enjoy life more”, while the average joes work 60-70 hour weeks across multiple jobs just to make a fraction of what those poor souls make on their reduced hours!

I can’t imagine somebody wanting to give up their 8-5 job plus gig economy “side hustles” in exchange for the pitiable existence you have described here, Garth.

#10 BlogDog123 on 04.29.19 at 6:09 pm

If you’re an employee with a paycheque every 2 weeks, the government gets their money first/early. If you get a bonus, the government gets their big pound of flesh first, including EI and CPP. Took over 40% of my bonus cheque in various deductions right off the top.

The T1213 form helps, at least to get your “refund” early for contributing to your RRSP (your paycheques are fatter instead of getting a big refund in April), avoiding giving Ottawa an interest-free loan throughout the year…

#11 Bob on 04.29.19 at 6:12 pm

“The Department of Finance has been mandated to examine raising the threshhold for capital gains tax, significantly increasing the rates, while reducing the dividend tax credit.”

It was just a matter of time…no one should really expect investors to be left alone in this country, risk takers or not. This Liberal government will frame the changes to come as social justice for all…get ready.

#12 baloney Sandwitch on 04.29.19 at 6:15 pm

If capital gains tax is raised people will not sell their investments. They will be holding it for ever till they die. This will reduce the circulation of money in the economy and contribute to a recession.
I guess the only way to be happy in this country is to be lower middle class. Anything higher and you are going to get fleeced.

#13 Marc Roger on 04.29.19 at 6:17 pm

On cap gains and dividends: what bugs me is that these kinds of changes are: 1 not explicitly part of a platform and 2 rapidly implemented.
Are you just scaring us or are they really going to screw with these?

#14 kommykim on 04.29.19 at 6:19 pm

If the federal government really cared about climate change, they would be paying people NOT to have children. But most of us seem to believe in the myth of infinite growth in a finite world. Good luck with that.

#15 yvr_lurker on 04.29.19 at 6:20 pm

I think most of us can agree that income taxes on high earners are at a stage where it is bordering on being punitive. I just worked it out and my wife and I paid 112K this past year in net income tax. However, I would never support a flat tax rate as this would further inequity across all levels, and there are people in our society who do honestly need help. Having a more dog-eat-dog society is not the way to go (unless everyone wants to live behind high walls or gates ala Rio or Johanesburg). What I do support though is for the CRA to actively go after all those who have cheated the system for years (flippers claiming 4 principal residences, a large group of business class people claiming zero Canadian income but earning hordes overseas (why don’t we ever talk about this group???), air BNB people skirting the rules, offshore illegal hiding of $$ by individuals and corporations, etc. By seriously going after this lot and collecting the taxes due, and then closing the loopholes, perhaps this will allow for a lower marginal rate on the honest tax-paying citizen in this country. One of the key factors of why Greece collapsed was that there were a very large number of citizens who cheated the tax system year in and year out, with little if any consequence. In this way, the tax system would be fairer, cheating would be discouraged, and with more revenue collected, hopefully (but not with Trudeau I’m afraid who is an idiot) it could be given back through a reduced overall income tax rate.

#16 Zenon Jones on 04.29.19 at 6:21 pm

Garth, Did you work less in 2018 to pay less to JT and Co. or did you continue to work full time hours and remit more to the CRA?

#17 JonBoy on 04.29.19 at 6:23 pm

Add me to the list of “tax avoiders”. I got $13K additional back this year by dumping a chunk of extra money into my RRSPs to use up some contribution room and cut my tax bill.

I’d already contributed a bunch to my RRSPs for the year but it seemed prudent to get back close to 50% of that money to quickly max out the TFSA for the 2019 year at the same time, while also putting some money into our savings/investments.

I’m done with these high taxes. I’m maxing out everything, saving like a fiend from now on (more so than before) so that I can push money into RRSPs and then max out our TFSAs and push the rest into non-reg low-tax investments. Rinse and repeat until I run out of RRSP room…

If I save and invest hard enough, my wife can almost get $500 a month for our kids (!) while we help “bomb proof” our financial future. Win-win. If you can’t beat ’em, join ’em!

#18 Loonie Doctor on 04.29.19 at 6:26 pm

A timely post. Paid my final personal tax bill today. I don’t mind paying taxes that help lift up those who need it and pay my share for the services I and my family enjoy. However, I do worry that we are crossing into stifling territory and also wonder how many families I should be fairly expected to support.

This past weekend, I ran the numbers for downsizing to a lower cost area, working ten weeks per year, and living off that and our investments. Our lifestyle actually wouldn’t change since our tax bill would drop so dramatically. Crazy. But it is also getting crazy to work more than provides fulfillment once you hit the top tax bracket. I could tend to my own family members rather than everyone else’s. My timeline keeps shortening.

Of course, hosing investment income would make those taxes worse, but still less than working hard.

But really, who is going to work more than they strictly need to or invest in Canada anymore if the government continues on this path?

I also don’t understand how they could go after the eligible dividend credit. That is not a tax break -it is part of tax integration. The rate is lower since the company issuing the dividend already paid tax at the general corporate rate. Together they add up to more than earning the money directly already!! Of course, this government already demonstrated a lack of understanding of tax integration with their original passive income proposal and were schooled by the various accountants to fix it prior to the final product. Would have thought they had learned some tax basics. Must have been taught the same day when self-balancing budgets were debunked.

So, the tax system would not reward risk (capital gains) and would double tax Canadian investment income (eligible dividends). The government will collect the money and dole out funds for innovation and productivity as they see fit? Sounds like a great idea to kill investment and innovation. Make taxes on a high-earner punitive which discourages them working. It is usually the high-value workers that earn high incomes. This honestly all seems nuts to me. I can only hope that the Canadian public can see this before it is too late. I am honestly worried about the future of our country if we continue down this path. I am pretty sure that we’ve seen this movie before.
-LD

#19 acdel on 04.29.19 at 6:26 pm

Keep voting for these so called Libs when we actually know that they are far left green/socialist and it only gets worst. Did not T2 just fly all the way across the country for a surf boarding retreat in Toffino with his family (huge carbon imprint) when they could all have had a beautiful vacation in Quebec for 1/10th the price and carbon footprint. Oh, typical hypocrites, on top of that they could have supported there favorite province; oh the shame! Mon Dieu!

Hey, the smart provinces have kicked their butts out to no where land; Quebec I am in no denial that they will only vote what is best for them but the Territories and the central West; Eastern B.C., Norther Ont, and maybe just maybe the East Coast is coming around, P.E.I. good on you, let us keep the momentum going.

#20 Keith on 04.29.19 at 6:28 pm

About 90% of Canadians pay one third of their income in taxes of all kinds to all levels of government. People who earn high incomes, will exercise legal deductions and employ tax planning strategists to cut their tax bill.

People who earn less, and pay little or no income tax pay a lot of sales taxes and fees, because the fees we pay to government are not progressive by income – it’s a flat rate no matter how much or how little you earn. So most of them pay a third of their income in tax, just not in income tax.

The vast majority of Canadians are not getting even the cost of living in their wages and salaries, and are missing out on participating in the economic growth. The higher up the percentile chart you go, the higher the annual income increase has been. So when very few people actually get ahead at all, and those few get ahead at 10% plus per year, when the vast majority is on 2% or less, they will pay more of the income taxes.

It’s a commentary on how few people are actually participating in the economic growth of the country. We have had progressive income taxation in this country for a very long time. Concern about “fairness for the rich” has been a mantra since the eighties. Look up economic growth when the top marginal rate was 90%. Look up economic growth since those rates began being cut. You’ll find that economic growth has been lower since income tax rates were cut. It seems to have failed to stimulate growth.

So the economy has changed, and we are left with the dubious proposition that tax cuts will stimulate growth. Except they haven’t. So the best case scenario is that our growth which used to run 5% plus for many years, under higher top marginal rates, would have been even less if we hadn’t cut those rates. Which leads me to ask how the countries in the west which have retained much higher marginal tax rates than Canada have avoided economic collapse.

There are several of these countries, with better social programs, longer lifespans, free post secondary education. How is it after so many years they haven’t gone broke? Why aren’t they under the care of the IMF and the World Bank? How do they attract investment capital?

The big problem in this country is the death of the working and professional middle class – jobs are being off shored, automated and computerized out of existence, or out of the ranks of paying a living wage. Decreasing union density, inadequate retirement benefits, massive tuitions costs, skyrocketing debt of all kinds – we are losing the middle class as a stable base that earns enough to pay significant income taxes and raise a family. Start acting on that reality, and you’ll get somewhere.

People that don’t like Canadian taxes have left – but people are beating down the doors to come here. We don’t have to compete on taxes in a race to the bottom that we will never win. Lots of countries don’t compete that way, and they do fine. The neighbor to the south is there for people that want to be paid as an entrepreneur and a risk taker. There are other paths to building a great society.

#21 renter in Surrey on 04.29.19 at 6:29 pm

that’s pretty much how I feel looking at my tax return

what’s the point of working your ass off?

you can’t even afford damn condo anyways

may be it’s time to review priorities,
take it easy and sponge of government as much as you can

#22 Shell Mobil on 04.29.19 at 6:33 pm

Someone laundering money from a dictatorship or oppressive regime to speculate in Toronto condos should be a crime.

Why should the African dictator who swindled the oil revenues from his country, or the Middle Eastern war criminal who oppresses his citizens of his oil rich country, be allowed to park dirty money into Toronto’s housing market, while the middle class have to walk on eggshells because of Justin Trudeau’s politically correct agenda?

Why is it ‘racist’ to point out that drug money is fuelling the Vancouver housing market to the point that one has to be a drug dealer to afford the multi-million dollar shacks in Burnaby or Richmond?

Why aren’t the racists in the Alt Right advocating for tougher penalties on money laundering and professional misconduct, than harassing innocent people because of their skin colour or religious affiliation?

#23 Dolce Vita on 04.29.19 at 6:34 pm

One thing about my fellow Canadians, they have the BEST SUBLIME HUMOR on Planet Earth. Step aside England, here come the Canadians…

The latest Justin faux pas, inspired graphics Tweeted directly to his Twitter account (you have to feel sorry for the guy at the dim view his fellow citizens have of him):

Asian Cartography 101 Courtesy DND (My personal favorite)
https://i.imgur.com/MiDklgZ.jpg

Sincere map challenged question
https://i.imgur.com/enI0qAL.jpg

Confusing Cuisines
https://i.imgur.com/nRwxwLm.jpg

Expect this when you take a Selfie of yourself smiling with the locals in the background furiously sand bagging to save their homes
https://i.imgur.com/nviv0ZY.jpg

…and finally, someone with a long Justin Tickle Trunk memory
https://i.imgur.com/jxiFMIz.jpg

Brazen or not, there is some MAJOR TALENT out there in Kunickstan for capturing the moment in a humorous way.

——————————————–

There Garth. Something to take your mind off of your net wealth hit.

Now, go find some other building in Lunenburg to buy and renovate – you poor tax battered thing you…there’s always Little Island.

Ciao d’Italia e Buonanotte.

#24 Bezengy on 04.29.19 at 6:37 pm

…and they still can’t balance the budget.

#25 One thing about ... on 04.29.19 at 6:40 pm

having an investment portfolio is that it finally got me to see an accountant. Man she saved me a lot of moolah. Sorry T2.

#26 Paul on 04.29.19 at 6:41 pm

Not all the folks that made money on real-estate avoid taxes. A client just cut a cheque to CRA form $95,000.
But no one cares, the comments are well look at all the money they made.

#27 AGuyInVancouver on 04.29.19 at 6:43 pm

Why is it the wealthy always use the imagery of a saintly doctor being “overtaxed”? Never a Lawyer, or worse, a Realtor….

Do we have a public crisis caused by a lack of lawyers or realtors? – Garth

#28 Keith in Rio on 04.29.19 at 6:46 pm

I honestly don’t know how the Crime Minister could make such a simple mistake between two Asian world leaders whose countries hate each other as much as these two do.

After all, any good statesman should know that Winnie the Pooh is the real president of China.

#29 Sunny South on 04.29.19 at 6:46 pm

“The premise is that the guy taking the daily risks to be an entrepreneur should be taxed the same as a pensioned employee. Flawed logic”

The only flaw is in the flawed assumption that all, many or even some of those tax payers have a pension plan. Mr. Turner, as a long time follower who purchased your books, yes paper hard cover books with one signed “from Art’s son to me” how many times have you stated the fact that most of us have no pension plans let alone ways to save earnings in corps for future use. I sincerely disagree with this comparison and statement. The high income earners have significantly more avenues available to avoid and defer taxes than the majority of taxe payers. IMHO

#30 Hawk on 04.29.19 at 6:48 pm

I don’t really understand how one is classified as a net tax payer or not, by the powers that be. After all it’s not just how much one pays, but how much one consumes.

If a single man pays $10K in income taxes is he a net tax payer for that year or not?

What if he has used no health care within that year?

What if he did not use the services of police, fire people etc etc?

The reality is that just because someone is paying more or less in tax dollars does not mean they are a net consumer or producer.

For example, any single person or childless couple paying property tax are automatically paying more than their fair share since they have no kids going to school. If they own multiple properties they are paying way more, regardless of their income tax contribution.

#31 Young Boomer on 04.29.19 at 6:50 pm

#1 1% Prepper on 04.29.19 at 5:11 pm

=======

Our story is similar, but mid 50s. We ran the numbers for a tax efficient withdrawal plan and decided to live more simply. No regrets.

#32 Dolce Vita on 04.29.19 at 6:52 pm

Garth, you sure do know how to incite your rabble to insurrection, mutiny and down right sedition when it comes Tax Time.

A lot like CAIAPHAS in Hosanna from Jesus Christ Superstar.

There, let that song ring in your head for the rest of the night for complaining about poor CRA.

#33 Millenial on 04.29.19 at 6:53 pm

This is that rare case, when I agree with you, Garth.

#34 Smartalox on 04.29.19 at 6:53 pm

Now now, painting yourself as a victim is how we end up with populist politicians – on BOTH sides of the political spectrum. The poor complain about the rising costs of living and wealth inequality get baited by politicians promising free drugs and taxing ‘the rich’.

Wealthy people complaining about tax handouts to ‘the great unwashed’ beget politicians pledging cut taxes (at best), actively tweeting dog whistles and chortling at inflicting harm on the vulnerable (at worst).

Don’t conflate tax avoidance and tax evasion; I work hard, I’m a 5%er, and do my legal best to keep my tax owing to about 20% of my income. Paid more in taxes for 2018, than I did in the first five years of my career, put together. I know I pay my share. I also know that every dollar I take off my taxable income is one less I have to pay tax on to my province of residence, as well.

But I have little time for tax evaders. People who made tens, if not hundreds of thousands in Real Estate transactions, and who did not report their gains? You are far more to blame for wealth taxes and inequality than that fabled 1%. You are criminals, and if the CRA wants to take my honest tax dollars to enforce existing tax laws and nail you for what you owe, then so much the better.

Let’s enforce this country’s current tax laws before passing any new ones. Beat the Cheats! How’s that for a slogan for election 2019?

#35 Dress for Success on 04.29.19 at 6:55 pm

#20 Dolce Vita on 04.29.19 at 6:34 pm

One thing about my fellow Canadians, they have the BEST SUBLIME HUMOR on Planet Earth. Step aside England, here come the Canadians…

The latest Justin faux pas, inspired graphics Tweeted directly to his Twitter account (you have to feel sorry for the guy at the dim view his fellow citizens have of him):
…..

You are missing this beauty..

https://i.dailymail.co.uk/i/pix/2017/07/23/16/4296F79D00000578-0-image-a-72_1500823500484.jpg

#36 Sunny South on 04.29.19 at 6:59 pm

Apologies. It was from “Archie’s” son. Mea culpa. No disrespect intended.

#37 acdel on 04.29.19 at 7:00 pm

#21 Sunny South

I am no way near as smart as you. You found something/shortcuts to what they are doing.

My uneducated voice that only knows how to survive says “So What”. The high income earners have worked their butts off either creating jobs etc. No, not all are equal, the bad ones should be fazed out and charged but the majority earn an honest living through years of education or not/drive/ambition/enjoying it/ or just wanting to make a difference.

I am getting so tired of people of people blaming them when they themselves are somewhat to blame, before I am lambasted, not all, as mentioned before the bad ones need to get weeded out but the good ones like Garth deserve credit for all that he and his team have done and continue to do. There are always two sides, a minority are bad but the good teach us so much!

#38 Out Of Work CEO, Will Travel on 04.29.19 at 7:00 pm

The federal government has the advantage of very low interest rates to borrow at the present time. The other side of the ledger being the now extinct “saver” getting next to nothing on their savings. The low interest rates benefit governments and corporations and are a direct transfer from the “saver”. Personally, being a senior and a saver I am also cutting back on my spending to match the low return on my savings.

#39 Brian Ripley on 04.29.19 at 7:01 pm

…many doctors, for example, have decided to work less, cut back their practices and enjoy life more… Garth

My guess is that there are even more non-professionals and retirees that are avoiding income tax by simply not being registered as employed and the combined sum of all of us reducing our taxable potential is creating a chronic trend in less consumption compounded by the growing mass of over leveraged house buyers and home owners who have leveraged up their asset(s) with “”cheap” financing.

Our historically high household debt levels are crimping consumption as can be seen in my recent blog post charts, one of which is the percentage of GDP that is private consumption currently down to 58%. Charts: http://www.chpc.biz/history-readings/maxed-out

In the 1960’s private consumption was in the 65% range.

Consumption dropping means less employment and less income tax collected.

Everyone in awhile I drag out my blog post on “The Automated Payment Transaction Tax” which according to the authors…

By capitalizing on financial data processing technology, it is possible to create a tax code for the 21st century that is astonishingly easy for all citizens to understand and administer because it eliminates the need to file tax or information returns.​ (WOO HOO).

The foundations of the APT tax proposal—a small, uniform tax on all economic transactions—involve simplification, base broadening, reductions in marginal tax rates, the elimination of tax and information returns and the automatic collection of tax revenues at the payment source. The APT approach would extend the tax base from income, consumption and wealth to all transactions.

See the full 41 page PDF with charts here: http://www.chpc.biz/history-readings/apt

Based on the U.S. economic metrics of 1998-2000, Feige and his team projected that a tax of only 0.6% on each financial transaction (0.3% for each side of the transaction) would be needed to raise government revenues needed in the economy.

Imagine.

We need the new generation of digital workers to transform our Canadian tax system.

#40 Dolce Vita on 04.29.19 at 7:09 pm

MY HEART BE STILL, 2 Nights in a Row:

#31 Millenial

“This is that rare case, when I agree with you, Garth.”

—————————————————-

THIS is how you know Garth is really upset when an Amish Shunning is permitted a 1 night redemption. MISERY LOVES COMPANY, indeed.

—————————————————-

The other HEART BE STILL MOMENT was when Garth let AGuyInVancouver get away with no rebuttal the other day on the usual blame the Asians for YVR RE woes.

I take note that 1 day reprieve has expired per #25 AGuyInVancouver.

.
.
.

WHAT is there not to love about his Blog, its Creator and the personalities that make the Comment section worth reading for so many reasons.

ONE HUNDRED AND SEVENTY FOUR DAYS until the next Federal Election (108 hrs in Italia). Buonanotte for certain.

#41 PGer on 04.29.19 at 7:12 pm

One of the main reasons I invest in Canadian stocks is for the favourably taxed dividends. If that goes I might as well sell my Canadian stocks and buy only US and world stocks.

This won’t do wonders for the Canadian economy (I think Trudeau thinks Canada is Cuba), which is already having a very hard time attracting international capital. But it doesn’t seem like this Liberal bunch care, or understand. Over the cliff we go, unless we give them a swift kick in the @$$ this fall.

#42 Fsav on 04.29.19 at 7:14 pm

@kommykim

If the federal government really cared about climate change, they would be paying people NOT to have children. But most of us seem to believe in the myth of infinite growth in a finite world. Good luck with that.

——————————————–

What an insane statement! If we subsidize single to prevent what the point to combat climate change if your civilization vanish anyways?

By the way the commies Chinese did kill 40 millions and then force their population to have only one kid and still the biggest polluter in the world. Find another solution that do not come from a communist play book, we tried them all already and they always end up in starvation and genocide.

#43 AR on 04.29.19 at 7:15 pm

Wouldn’t it be more fair to talk about absolute income rather than relative income? If you’re taking home over $200,000 a year you can afford to pay something to help people who weren’t born with your amazing brainpower. Or who weren’t born into privilege. How many doctors do you know whose parents were doctors? A lot. The cycle continues. And on the other extreme, the poverty cycle continues. Those blessed with more brains or more privilege should help those that weren’t. Otherwise society gets dangerous. Scheer and his conservatives will make that happen – by pitting the haves against the have nots and dog whistling their way to an election victory.

Pay your share, be grateful you’ve enjoyed a good life and stop whining.

#44 Dave on 04.29.19 at 7:15 pm

There’s not one person at the Federal level tasked with investigating the widely documented money laundering in Vancouver. Trudeau is doing nothing to stop this parking ill gotten gains in real estate. I wonder whom he is beholden to.

#45 AK on 04.29.19 at 7:16 pm

“Not since Justin created a new high-income tax bracket, quashed corporate income-splitting and gutted TFSA contributions.”
====================================

Current Liberal Party: Socialists, with communist characterizations. Let’s hope they get the boot in October.

#46 Smartalox on 04.29.19 at 7:18 pm

I recall that years ago in Ontario, the provincial tax return offered a small tax credit on rents paid to live at an address in the province. The deduction was geared to income, so that the provincial credit decreased as your taxable income increased, but the important things was that you had to write in the name and address of the landlord, as well as the address where you rented, and the amount of rent paid, in order to access the credit.

Now the problem was that the information entered was almost impossible to act on, because it was written out, instead of being available electronically, was filed provincially instead of federally, and there was no correlation to the landlord’s Social Insurance Number, so there was no easy way to confirm that rents collected were being taxed fairly, but the thought that it might be possible to get the CRA knocking at your door probably kept a lot of landlords in line.

BC doesn’t do this, and I’m not sure that Ontario does it any more, either. They should, though.

#47 Dolce Vita on 04.29.19 at 7:21 pm

#33 Dress for Success

Whats so funny about that?

All I see is 3 Drag Queens.

GOOD ONE.

#48 Zero Enforcement on 04.29.19 at 7:24 pm

Nobody in BC claims rental income.

Zero.

As for enforcement: municipalities like Kelowna will only investigate into an AirBnB operation (which is illegal as per bylaw) only if someone files a complaint.

You heard that right. They don’t care that there is 1200 AirBnB listings registered in Kelowna on the platform unless someone complains. If no complaint, you can operate illegally in broad daylight. And the CRA isn’t following up on this.

Main reason for lack of enforcement? Not enough resources. Party on tax evaders.

The only meaningful slowdown of AirBnB unit listings observed has been in Vancouver.

But don’t get too excited. There are a lot of platforms backfilling the AirBnB platform that are foreign and harder to regulate.

Same thing with the illegal ride sharing in Vancouver if anyone has been paying attention. A shift to non-main stream platforms that are located off shore, in various languages and obviously harder to regulate within Canada. A leopard doesn’t change it’s spots. They find alternatives.

#49 Bob Dog on 04.29.19 at 7:25 pm

“The premise is that a guy taking daily risks to be an entrepreneur should be taxed the same as a pensioned employee. Flawed logic.”

Oh I see now. The person who started the business should be taxed less than the employees and then when everyones hard work makes the company successful the CEO should get paid 361 times that of the average worker. And that 361:1 ratio should increase over time.

#50 Giver - AB on 04.29.19 at 7:25 pm

Maybe I’m just a glass half-full kind of guy, but I look forward to the day when I can choose to work less for whatever the reason. Isn’t that the whole idea? Isn’t that what’s supposed to happen?

The beauty of capitalism is that there is always somebody who is younger and hungrier ready to eat your lunch when you take your foot off the gas.

#51 the ryguy - In cabo on 04.29.19 at 7:32 pm

There was a time I dreamed of earning in a year what I have to remit to the CRA on Tuesday.
———————————————

While Im sure Im not at your level Garth this sentence rings true for me as well.
The last 3 years Ive gotten re-assessments. First one was $600, then $900, last year was $1400. Ive paid it without question..hell my accountant would probably charge me $500 just to look it over.

Anyone else thinks the CRA does this because they know a lot of people will just pay it?

#52 Barb on 04.29.19 at 7:33 pm

“…turned accountants into de facto CRA employees.”

————————————————–

Our accountant is more averse than ever to treading into grey areas (versus his former black or white stance).

We have purposefully reduced our family’s annual income, and continue to guard our assets as we always have.
It seems now that some assets are being “re-evaluated” by the accountant.
And not in our favour.

Accountant asserts CRA’s oversight may necessitate some changes.

Garth may have sounded a strong alarm on just how effective our accountant may be.

#53 Lee on 04.29.19 at 7:33 pm

Garth is a bit of a show-off.

#54 Leftover on 04.29.19 at 7:37 pm

I’m all for the CRA enforcing the tax code because, if they do, that eliminates the need for new/higher taxes.

If they’d done it for the past ten years there might not be such a real estate craze because those “tax-free capital gains” wouldn’t be so easy to hide away. Same thing with under-the-table landlords skimming off their basement suites.

#55 BlorgDorg on 04.29.19 at 7:39 pm

Just get rid of the principal residence exemption entirely. Or put some severe restrictions on it, eg. only valid after a property has been held 10 years, on a sliding scale, etc.

Millennial voters will love it, boomers won’t care, and it greatly simplifies identifying who to collect from otherwise. Too many damn realtors, too many damn lawyers. The accountants are mostly OK.

#56 Loonie Doctor on 04.29.19 at 7:39 pm

#9 Sunshowers

How awful! Having to cut work hours to “enjoy life more”, while the average joes work 60-70 hour weeks across multiple jobs just to make a fraction of what those poor souls make on their reduced hours!

————————————————————

What you may be missing is that those doctors put their time in, in advance. Not just long hours studying, but the effort and stress to be at the top of their class. For over a decade. Racking up debt. I can tell you first hand, that was during a prime part of my life and not overly enjoyable. I can tell you it was more like 80 to 100+ hours per week, depending. Then, working a more reasonable 50-60h/wk.

I have respect for anyone who works 60-70 hours per week. I also don’t think that those who did that level of work in advance without pay should then be chastised, like with your sarcastic comment, when they reap the benefits later. Some people make upfront investments and reap the rewards later. Others consume in advance and spend the rest of the time trying to make it up.
-LD

#57 Not 1st on 04.29.19 at 7:43 pm

This post has me triggered. Capital gains exemptions and dividends are the backbone for people who do not have a govt or corporate pension. And Trudeau is going after that. So now we subsidize other people’s pension plans.

Canada is a slow motion socialist horror show.

#58 Flop... on 04.29.19 at 7:44 pm

I went to the bank Saturday morning to pay my taxes.

Dunno what happened after that.

I must have blacked out…

M44BC

#59 Youtubers on 04.29.19 at 7:45 pm

Do it like youtuber Mickey.

Calculate how much money you have in cash, find where that buys you a home outright, in this case Merritt and buy the house free and clear. You may want to have a bit of extra cash to beef up on security depending how sketchy the area is.

Open a business or two that does not make money. Claim it as a loss.

Have as many kids as possible. Trudeau pays monthly for kids.

Collect every government benefit available to people who do not make any money.

Utilize your supposed failing business losses (not on purpose of course) for even more money from the government.

Calculate cost of living including house taxes and compare with how much Trudeau is paying you.

Validate positive savings rate.

Enjoy tons of free time for things like youtube.

That is what you call legal tax avoidance where you live off the government.

And quite frankly I highly recommend this to anyone thinking about living in Canada. Forget about working. The government does not provide any incentives for you to carry on a career.

Do it like Mike.

As a bonus I can tell you about how inter-generational families can do this and exponentially increase the above, sharing the proceeds in one big family pot, paying for things like luxury homes where nobody has to work, a nice Audi in driveway and there is tons of time for family members to raise the kids their way. No daycare. You don’t even have to worry about work commutes. You don’t need to work. Ever. Definitely recession proof. Gas prices? pffftt Not a problem when never reporting anywhere. Lots of time to polish the car on the driveway.

Full disclosure. I live in Lower Mainland and 50% of population doing this.

The ones complaining about the gov in their back pocket have it all wrong.

Be in the governments back pocket. Trudeau’s cheques don’t bounce. At least not to date. And past history is not an indication of future Trudeau handouts. But it will continue. Get on board!

#60 175 more sleeps on 04.29.19 at 7:46 pm

Messing with dividends and capital gains….would Trudeaus nail in the coffin. He not “just not ready” hes “just that dumb”. Lets pray for an early election.

#61 Not 1st on 04.29.19 at 7:50 pm

The best investment in Canada now is an expensive mean accountant.

Remember when smoking man was saying he was carrying $10k at a time out of the country and unto the US. Best move ever. Better to take a 30% currency hit than let Trudeau siphon it all away.

Second best investment is a green card to trump land.

#62 Adrian on 04.29.19 at 8:03 pm

Do we have a public crisis caused by a lack of lawyers or realtors? – Garth
***
My aunt married a doctor (I’ve never heard them complain about their taxes as much as you do, and I’m sure they don’t need your advocacy). Their eldest daughter is training to become a doctor, and despite a 90% average, she had to travel to Ireland for her residency because Canada sets quotas on training positions. I think that has more to do with any doctor shortage in this country than high tax rates.

“Medical residency mismatch: number of unmatched Canadian medical graduates reaches all-time high”
https://healthydebate.ca/2017/05/topic/medical-residency-match

#63 AlMac on 04.29.19 at 8:04 pm

CRA stats for TFSAs for the 2016 contribution year, by total income class, show: 13.473M total accounts; for those with total income below $80k, there are 10.043M account holders, for those above $80k, 2.58M account holders.

The average unused room for total income below $80k is $27k; for $80k to $100k is $27k; for $100k to $150k is $25k; for $150k to $250k is $20k; and above $250 is $15k.

This data indicates to me that many persons across all income classes use TFSAs, and that higher income classes do not benefit that much more than lower classes. So my take is that the Liberals, in limiting the TFSA room, are potentially penalizing all persons that take advantage of TFSAs, not just the ‘wealthy’.

See link for more data on this: http://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/income-statistics-gst-hst-statistics/tax-free-savings-account-statistics

#64 will on 04.29.19 at 8:05 pm

i love that picture.

#65 Lost...but not leased on 04.29.19 at 8:07 pm

While no fan of Gov’t , I find it hard to believe people think they can cheat on taxes based on the increasing number of tools the CRA has at its disposal. Its just a matter of time…not to mention continually disenfranchised people ratting on them..especially types that brag about flipping houses etc.

That said, my son is a self-employed contractor making
quarterly payments,uses an accountant… yet CRA is continually claiming he needs to submit more.

#66 acdel on 04.29.19 at 8:07 pm

Off topic; but this is the third story I have read in the last two days from different outlets warning of the same outcome in 2022; fictitious they say; but the dates are all precise, hmm, what do you think?

Personally, if it does happen, I will have my six pack and bottle of Scotch sitting on my front lawn enjoying my last moments. :)

https://www.dailymail.co.uk/sciencetech/article-6974075/NASA-chief-warns-asteroid-crash-Earth-lifetime.html

#67 tccontrarian on 04.29.19 at 8:12 pm

“There was a time I dreamed of earning in a year what I have to remit to the CRA on Tuesday. …” – GT

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

It’s not what you make – it’s what you get to keep!

Tax time – my favourite time of the year (NOT)

TCC

#68 acdel on 04.29.19 at 8:29 pm

Last post, all my prayers going out to the people in Ont, Que and Maritime s being affected by the floods. Here in AB we have had a number of difficult disasters in the past ten years and Canadians have always stepped up and helped. We will never forget that! It is our time to help..

#69 Nonplused on 04.29.19 at 8:29 pm

I remember the good old days where we used to vote for people who promised the most amount of services with the least possible taxation. Now we have a government that promises the least amount of services with the most possible taxation. Things have gone so wrong.

I will just remind you all who maybe haven’t kept up that no matter where taxes are implemented in an economy, everybody pays the same rate. Raising the taxes on the guy that owns the 7-11 makes the Slurpee more expensive. You can’t shift the tax burden by taxing high income earners more, because then they just turn around and charge more for their services. And employ less people. Every tax dollar that comes out of the economy comes out of each and everyone’s dollars more or less equally. Remember folks, the rich aren’t sitting on a pile of gold in the basement like Scrooge McDuck. To pay a dollar in tax, they have to charge you a dollar.

I know this because I am smart, but also because I worked as a contract consultant for a while. All the taxes I paid came out of the hourly rate I charged my clients. There was no other possible place for it to come from. My clients, on the other hand, had no place to get the cash to pay me other than to charge their customers. Some of these clients were utilities. Therefore, all of my fees, including all of my taxes, appeared on the power or gas bill in some small way. However, you add up all the people working for the utility, and it’s a lot. All of their taxes appear on the utility bill. And it works exactly the same for any business. So you think you aren’t paying tax? So stupid. You pay the same rate as the rich, it’s just hidden in the price.

#70 Al on 04.29.19 at 8:31 pm

So what you’re saying is that the marginal increase at the top has increased the 1% ers quality of life? Win-win. Anyone earning a rate of 500k a year who no longer thinks it’s worthwhile to work those extra hours, please give me a call , I’ll jump in for you lol. Preferably, lawyers, accountants, high level managers, finance folks , pizza chain/ food / retail magnates. I’ll let the relevant association know to train more doctors as well, or import them if they need some asap in the meantime.

#71 Mike on 04.29.19 at 8:32 pm

Doctors –

Please move to TRUMPLAND or RUSSIA if you think you are being oppressed.

Please do.

Or, just stop complaining.

#72 Flop... on 04.29.19 at 8:43 pm

Get Flop off the blog plan didn’t work out.

There was no deal on Flexit…

M44BC

Visualizing how a ” NO DEAL Brexit” Would Affect the World’s Economy.

Since the United Kingdom (UK) voted in June 2016 to leave the European Union (EU), international markets have experienced uncertainty about how trade with the UK would change. In April 2019, the United Nations Conference on Trade and Development released a report titled Brexit. Implications for Developing Countries, which analyzes the consequences that the UK’s changing tariff structure as a result of Brexit will have on other countries. If the UK and the EU were to agree on an exit plan, the UK would maintain its current trade agreements with international partners for the next two years before implementing trade deals of its own. However, if the UK does not reach an agreement with the EU (“No-Deal Brexit”), existing trade agreements between the UK and other countries will no longer apply. This means that other, non-EU countries that export goods to the UK will be subject to highly expensive MFN tariffs, dramatically tipping the balance of exports around the world. This change in trade balances is the subject of our most recent visualization.

Top 5 Countries that stand to gain the Most From No-Deal Brexit

1. China – $10.2 billion increase in exports
2. United States – $5.3 billion increase in exports
3. Japan – $4.9 billion increase in exports
4. Thailand – $3.9 billion increase in exports
5. South Africa – $3 billion increase in exports

Top 5 Countries That Stand to Lose the Most From No-Deal Brexit

1. European Union – $3.6 trillion decrease in exports (not shown on the map)
2. Turkey – $2.4 billion decrease in exports
3. South Korea – $714 million decrease in exports
4. Pakistan – $497 million decrease in exports
5. Norway – $209 million decrease in exports

https://howmuch.net/articles/export-gains-and-losses-resulting-from-no-deal-brexit

#73 not 1st on 04.29.19 at 8:47 pm

Bill More-no is in dirty with Bay Street. You think he wont hear a thing or two about this plan to tax dividends?

#74 Lost...but not leased on 04.29.19 at 8:50 pm

Steve Sareztky latest YOUTUBE:

—-Condo sales are at their 18 year LOW,

—-Record amount of condo product being built and coming on line.

—–Per sq ft prices went from around $700 in 2015 to $1200 psf 2019.

— increased number of realtor car leases being taken by bankruptcy trustees.

#75 IHCTD9 on 04.29.19 at 8:51 pm

#28 Sunny South on 04.29.19 at 6:46 pm
“The premise is that the guy taking the daily risks to be an entrepreneur should be taxed the same as a pensioned employee. Flawed logic”

The high income earners have significantly more avenues available to avoid and defer taxes than the majority of taxe payers. IMHO
—————-

I guess none of the high income earners have ever heard of these avenues, because it sounds to me like they’re getting hosed…

#76 Mr Canada on 04.29.19 at 8:51 pm

Re; 4 out of 10 families pay no federal or provincial taxes. Can you imagine a party platform that demands the bottom 40% pay more in taxes?? — The liberal media would be hysterical….maybe its time for a minimum tax to make it “equal” and “fair” for all. Sunny Ways Indeed!

#77 not 1st on 04.29.19 at 8:54 pm

#70 Mike on 04.29.19 at 8:32 pm
—–

Sure that will show those doctors. Force them to move to California and make $5M doing plastic surgery while we get hallway medicine and 2 yrs waits for surgeries.

#78 DON on 04.29.19 at 8:56 pm

SHAAAAAZAM!

That was a smack down. Notice the from the hip/heart approach and then just pointing out the obvious political connection and lack of will to do the right thing.

Overlooking fairness and pandering for votes.

On a lighter note:
In the news yesterday, ‘how to tell if your Air BnB has secret cameras’ Just a little creepy.

Garth – I suggest a nice long walk with Dorothy and Bandit.

#79 saskatoon on 04.29.19 at 9:03 pm

garth,

you point out that families with kids making 80k/year don’t pay any net tax.

however, for the most part, doctors in canada don’t contribute to the cost of operating government either–as they are paid by the state.

Where does the state get the money? Oh wait…taxes. On doctors. – Garth

#80 gattu on 04.29.19 at 9:07 pm

As a recent immigrant, my observation is that poor financial literacy + low interest rates + expert marketing by businesses is a lethal combination in Canada. There is also a hardwired preference to consume today rather than save for tomorrow… this seems true of a lot of rich countries with a reasonably functioning safety net. Canada’s high taxes leave less disposable income in people’s hands, so we borrow more to maintain the illusion of a good standard of living. And it appears the BOC was happy to keep the music playing with low interest rates, until the Fed forced it’s hand. Don’t see how this ends well.

#81 ImGonnaBeSick on 04.29.19 at 9:08 pm

#42 AR on 04.29.19 at 7:15 pm

It must get exhausting wagging that finger and telling everyone how much smarter you are than them… Thanks for the advice no advice.

#82 crowdedelevatorfartz on 04.29.19 at 9:08 pm

hmmmm.
House under renovation/construction burns at Fraser and 12th…..
Yo !
Broadway Skytrain, was the smoke bad?

#83 Reality is stark on 04.29.19 at 9:09 pm

Now for the real news.
It appears that Ford is going to try to tackle expenses. John Tory is our first respondent to the Ford “attack”. Ford will cut 1 billion in the Toronto health budget over 10 years. Tory is basically telling you that he has no intention of looking at his cost structure. He will get it all back and then some by boosting property taxes.
Get ready to pay folks.
Your house price may correct down from the peak, but your property taxes are about to skyrocket.
Whatever the government did to artificially inflate your house price has an added bonus. The power to take that wealth back through property tax increases. Be careful what you wish for. You may regret every dollar of appreciation when the taxman comes a callin.

#84 Shawn Allen on 04.29.19 at 9:10 pm

Is the Dividend Tax Credit fair, or a gift to the investor class?

Loonie Doctor at 17 said:

I also don’t understand how they could go after the eligible dividend credit. That is not a tax break -it is part of tax integration. The rate is lower since the company issuing the dividend already paid tax at the general corporate rate. Together they add up to more than earning the money directly already!!

But Nonplused at 68 argues that the taxes paid by a corporation are paid by the corporations’s customers not really by its owners.

**************************
Personally, I am not sure it is fair to tax dividends from large corporations more lightly than we tax labour income and justify it in the name of tax integration.

Probbaly some companies would charge less (due to competition) if taxes were lower, in which case it is the customers not the share owners that are paying the tax.

In other cases the corporation faces little competition and would charge about the same tax or no tax in which case the share owners pay the tax and integrations seems logical.

Overall, I think the investor class (inludes me) gets a good deal compared to labour income.

If we closed a ton of special deals we could lower the overall tax rates on labour (including Garth’s labours)

#85 crowdedelevatorfartz on 04.29.19 at 9:14 pm

@#70 Mike

“Doctors –
Please move to TRUMPLAND or RUSSIA if you think you are being oppressed.
Please do.
Or, just stop complaining….”

*****
My my.
Tough talk.
have you told your doctor how you feel?

#86 Ustabe on 04.29.19 at 9:19 pm

Remember when smoking man was saying he was carrying $10k at a time out of the country and unto the US. Best move ever. Better to take a 30% currency hit than let Trudeau siphon it all away.

You can carry however much you desire to carry out (or in). You just have to declare any amounts over 10k. Another fantasy post that turns out to be a fraud.

While I too would be happier with anyone but Trudeau, can anyone point me to any Con policy that would mitigate anything we are discussing today? Sheer has nothing on his site, nor does the Conservative official site.

I’ll say it once again, if you turf the Liberals you get Andrew Scheer as PM. Think about that for a second.

The guy hasn’t had an original thought since high school.

#87 A Dollar is a Dollar is a Dollar on 04.29.19 at 9:29 pm

“Taxes are a fact of life. Equity? Not so much.”

Could not have said this better myself, Mr. Turner.

Tax all dollars equally, wherever they come from.

The ONLY solution.

Period.

No solution. The tax codes seeks to influence behaviour for social goals. Without investors willing to risk for a greater return the economy would be pooched. – Garth

#88 Adam on 04.29.19 at 9:33 pm

So at what marginal rate will wealthy people not adjust their lives to work less and enjoy life more?

Somehow blaming doctor shortages on tax policy (that shows absolutely no sign of changing if the cons get a majority), what the hell? What a frigging joke.

#89 Adam on 04.29.19 at 9:37 pm

Seriously, read through some of the “nodding along” comments on here and look at the kind of people you’re non-sensical tax rant is appealing to.

#90 Paul on 04.29.19 at 9:43 pm

#69 Al on 04.29.19 at 8:31 pm
So what you’re saying is that the marginal increase at the top has increased the 1% ers quality of life? Win-win. Anyone earning a rate of 500k a year who no longer thinks it’s worthwhile to work those extra hours, please give me a call , I’ll jump in for you lol. Preferably, lawyers, accountants, high level managers, finance folks , pizza chain/ food / retail magnates. I’ll let the relevant association know to train more doctors as well, or import them if they need some asap in the meantime.
————————————————————————————————
I don’t think you could run a lemonade stand. Ya jump right in no investment money,time, risk. FREE

#91 Brad on 04.29.19 at 9:43 pm

How about asshole politicians learn to live within their means like the rest of us are forced to due instead of continually raising taxes

#92 Lead Paint on 04.29.19 at 9:59 pm

Getting a government job is like winning the lottery for most workers, and there are less and less reasons to start or run a business. What a sad state of affairs, but more and more Canadians seem to think this just swell.

#93 Joshua Carriere on 04.29.19 at 10:05 pm

If you have an income that is location independent leave the country, cut residency status and move to a more friendly jurisdiction.

#94 PastThePeak on 04.29.19 at 10:17 pm

Have 6 more years of the full time salaried fleecing, but then will be cutting way back on both time and taxes paid (likely paying less than 1/5th income tax of what I am now). Better to do an early semi-retirement for longer with something different, than go hard for another 7-8 years and then do nothing. Time more important than money (especially highly taxed money…)

For anyone that can – start up a (legitimate) side business that can grow to profitability over time (like during a semi-retirement:). During this startup phase with higher investment your business net costs are deductible from your salaried income, so it can help reduce a bit.

#95 Gravy Train on 04.29.19 at 10:22 pm

#68 Nonplused on 04.29.19 at 8:29 pm
“[…] You can’t shift the tax burden by taxing high-income earners more, because then they just turn around and charge more for their services. And employ less people. Every tax dollar that comes out of the economy comes out of each and everyone’s dollars more or less equally[…].” No, tax incidence depends on the price elasticity of supply and demand.
https://en.m.wikipedia.org/wiki/Tax_incidence
https://en.m.wikipedia.org/wiki/Price_elasticity_of_demand
https://en.m.wikipedia.org/wiki/Price_elasticity_of_supply

“I know this because I am smart[…].” That may very well be true, but you ought to take a first-year economics course to gain a better understanding of basic economic theory. :)

#96 Greg on 04.29.19 at 10:35 pm

You must be right about doctors Garth, tried making an appointment for a Friday lately? Good luck.

#97 the ryguy - In cabo on 04.29.19 at 10:50 pm

#66 acdel on 04.29.19 at 8:07 pm
————————————-
Super off topic but you’ve brought up an obsession of mine. The reason for more and more outlets reporting on comets is because our ability to track objects in space has vastly improved in the last couple decades. Using super computers scientists can take the current size/speed/orbit and recreate where and when the original comet came from..well theorize on it anyway.

Every June and November we pass through the taurid meteor stream. Each passage Earth is vulnerable for about 12-13 days. Some scientists believe Earth had another small moon, that was hit by a HUGE object and splintered, thats how the taurid meteor stream came to be. There’s more than 200 objects over 1km in diameter in the stream..if something that size hit the earth it would be lights out for just about EVERYONE on earth.

I wont nerd out too much, but give it a google if you want to stress out for 2 weeks twice a year :)

#98 Basil Fawlty on 04.29.19 at 10:50 pm

Funny no mention of corporate tax rates. Did they not decrease substantially under the Harpos?

#99 Green is the Red, Blue and Orange on 04.29.19 at 10:51 pm

People dislike T and other party leaders. So could the Green Party see more traction across Canada this election? Love or hate them, with concerns over climate change exploding they might get more votes.

https://www.shortcommons.com/2019/04/the-green-party-wave-could-spread.html

#100 Trojan House on 04.29.19 at 11:04 pm

#14 kommykim on 04.29.19 at 6:19 pm

Pay people NOT to have children??!! You’re comment is just ignorant.

#101 BigQ on 04.29.19 at 11:13 pm

Taxation is the price we pay for failing to live in a civilized society

#102 Ponzius Pilatus on 04.29.19 at 11:29 pm

#6 Dolce Vita on 04.29.19 at 5:54 pm
Do I detect SOUR GRAPES in what I read subsequent to the sentence fragment below?

“…what I have to remit to the CRA on Tuesday”.

I mean look it, some one has to pay for these very, very important programs that directly affect the lives of every Canadian…you know, “DO OR DIE, MUST HAVE” stuff:

-$600 MM for MSM Luddites struggling to adapt to a digital age that has been around for 20 years or so – slow on the uptake?. Like throwing cash at them is going to help if their that thick.

-$650 MM on global sexual and reproductive health and rights for the Congo et. al.

-$50 MM to impress supposed TV heavy weight personality Trevor Noah (who ever that is) for a global child education fund – Federal Budget via Twitter. Of course Justin forgot that 1.2 MM Canadian kids live in poverty or 1 in 5 (1 in 2 for First Nations kids).

-$22 Billion for The Canada Child Benefit program to 2020. Very equitable to the 12.4 MM Single Canadians (> 15 yrs old, 2016), 35% of the population gets nothing.

…I could go on, but I do not want to steal the thunder totally from others.

—————————————————

Come on Garth you 1%’er, where’s that “giving, caring, sharing spirit”?

Only ONE HUNDRED AND SEVENTYere FIVE DAYS until the next Federal Election. Please make time fly oh upper deity of your choice (big electron for the non-believers).
———–
Not sure where your loyalties are?
You live in Italy.
And you obviously must be expat Canadian.
And you keep bashing Trudeau and Canada.
You can’t have it both way.

#103 Ponzius Pilatus on 04.29.19 at 11:42 pm

#50 Giver – AB on 04.29.19 at 7:25 pm
Maybe I’m just a glass half-full kind of guy, but I look forward to the day when I can choose to work less for whatever the reason. Isn’t that the whole idea? Isn’t that what’s supposed to happen?

The beauty of capitalism is that there is always somebody who is younger and hungrier ready to eat your lunch when you take your foot off the gas.
———
Adam Smith wrote a book on the subject.
But you put it in a nutshell.
Well done.

#104 Ponzius Pilatus on 04.29.19 at 11:52 pm

#58 Flop… on 04.29.19 at 7:44 pm
I went to the bank Saturday morning to pay my taxes.

Dunno what happened after that.

I must have blacked out…

M44BC
———-
Floppie,
Everyone files and pays their taxes on-line now.
It’s not JT’s fault.

#105 TheDood on 04.29.19 at 11:57 pm

#49 Bob Dog on 04.29.19 at 7:25 pm
“The premise is that a guy taking daily risks to be an entrepreneur should be taxed the same as a pensioned employee. Flawed logic.”

Oh I see now. The person who started the business should be taxed less than the employees and then when everyones hard work makes the company successful the CEO should get paid 361 times that of the average worker. And that 361:1 ratio should increase over time.

—————————-
You disagree ?

An entrepreneur who gambles his own cash (and possibly his own financial future) on a business idea, employs dozens, hundreds, even thousands of others doesn’t deserve a more favourable tax landscape than those who choose to live a more risk averse lifestyle? Have you thought about this at all? Where will future employment come from when nobody is risking their money to invest because of stupid gov’t policy?

#106 Fleeced Indeed on 04.29.19 at 11:58 pm

Garth, your topic couldn’t be more timely for me personally. Just came back from the US, renting out space to move my company to a state with lower cost of living and lower taxes. End of June and we’re gonners.

Don’t get me wrong, I’m fortunate to have money to pay taxes on. But just how much is enough tax for the government? “Pay just a little more” followed by “Pay just a little more,” and so on. As IHCTD9 and others have noted, the taxes go to “social justice” wars, many in foreign places. What’s the value add for us locals?

Sorry, this little beaver can’t take it any more. Reluctantly, I’m out of here. Oh, and Mr. MF, not to worry, I’ll make sure the door doesn’t hit me in the tooshie. :)

#107 Blogbunny on 04.30.19 at 12:28 am

Garth,

You are spot on the money. I am one of the high earning folks you talk about. I am in my late 30s and now planning for part time work vs early retirement, which never even crossed my mind a few years ago or during my training. The worst is that I am in a financial position to do so, I just need to find the courage to fly out of the cage.

#108 domain on 04.30.19 at 12:30 am

I see the virus is spreading. People advocating for socialism and talking about a “climate emergency ” being their core concern for the next election.

The real emergency will come when we are in an actual emergency and have no capital left with which yo something useful or necessary.

As far as I see it, we are heading for disaster by punishing people for being successful or hard working. This is an insidious policy that will ensure that we all enjoy a falling standard of living as these people weaken and destroy capitalism.

#109 DON on 04.30.19 at 12:32 am

#65 acdel on 04.29.19 at 8:07 pm

Off topic; but this is the third story I have read in the last two days from different outlets warning of the same outcome in 2022; fictitious they say; but the dates are all precise, hmm, what do you think?

Personally, if it does happen, I will have my six pack and bottle of Scotch sitting on my front lawn enjoying my last moments. :)

https://www.dailymail.co.uk/sciencetech/article-6974075/NASA-chief-warns-asteroid-crash-Earth-lifetime.html
**************

No need to worry…the Nectonites are in position.

On a lighter note:
In the news yesterday, ‘how to tell if your Air BnB has secret cameras’ Just a little creepy.

Garth – I suggest a nice long walk with Dorothy and Bandit.

#110 rookie57 on 04.30.19 at 12:52 am

#43 AR

I agree with you to some extent but not entirely. My grandfather was an immigrant to Canada in 1908. His family came to Canada as coal miners. He was 7 years old at the time and became a coal miner with a Grade 7 education. My father, his son, started as a coal miner but eventually became a school principal. I, like my father, graduated from university and have done well in my career (now retired and not a teacher). Give most people a good financial opportunity (job) and they will usually pursue it. Punishing people too much for being successful is counter productive and sends the wrong message. People will change their behaviour if they believe they are being treated unfairly. Raising taxes beyond the tipping point causes a change in behaviour – just like doctors working less. Endless raising of taxes is a sign of a poorly managed government. You catch more flies with honey rather than with vinegar.

#111 Not So New guy on 04.30.19 at 12:57 am

The government needs to eliminate the ‘profit’ tax on corporations and bring in a revenue tax. This would have many benefits. It would lower the tax for all or be revenue neutral at least while leveling the playing field for those who can’t afford million dollar tax lawyers and accountants. It would remove all frivolous expenses that are only made to lower profits. This would make our businesses much more efficient spending only on what is cost-efficient and not on write-off seeking. It would bring many corporations back onto the tax rolls instead of us handing them huge dobs of corporate welfare

#112 PeterfromCalgary on 04.30.19 at 1:13 am

Stephen Harper has made real progress on reducing the size of government. When we elected this Justin idiot that all went to hell!

#113 The Real Mark on 04.30.19 at 1:19 am

#42 AR on 04.29.19 at 7:15 pm

#48 Bob Dog on 04.29.19 at 7:25 pm

Two fine examples of the ignorance found rampant throughout Canada these days. It’s truly unbearable.

#114 The Real Mark on 04.30.19 at 1:25 am

#88 Adam on 04.29.19 at 9:33 pm

Another fine specimen showing their ability to reason and think critically.

It’s incredible how some people think. What is even more incredible is what people think they know.

Canada deserves what’s coming. 90% of the population needs a serious reality check.

#115 Stan Brooks on 04.30.19 at 2:08 am

The corrupted liberals are not taxing the rich. Have you heard of any offshore tax evasion investigations lately? Of course not, these are the french villa guy buddies, untouchable.

They come after the upper and mid – middle class crushing it with invented arbitrary ‘rules’ that sometimes contradict laws with the sole purpose of suppression of opinion and suppression of financial independence.

Corrupted liberals need obedient brainwashed plebs to serve their elitist rich friends.

I warned about what’s coming, more taxes, now capital gains increases, tomorrow pension fund confiscation in one form or another, first with higher taxes, then with outright confiscation.

Of course higher inflation and lying about it helps the corrupted liberals with man-child constantly on dope at the helm (who does not know the difference between Japan and China) as it drives virtual capital ‘gains’ measured in increasingly worthless currency that have to be taxed according to the corrupted lying liberals who think that they own you.

How many times did I say: Run?

#116 Millmech on 04.30.19 at 2:16 am

#9 sunshowers
Sad, I make more than my family Doctor, pisses him off to no end. Must be depressing to be you and to have chosen a lacklustre career that never lets you get ahead.

#117 Taxes! on 04.30.19 at 3:07 am

Quick question on Taxes.
If I gift 100% of my income last year to my spouse, I know the attribution rules say i have to claim the interest amount.
But my question is, how far back does that attribution rule apply? eg, if i have 1million dollars in my account, and i put in 100k every year for 10 years, and all the money was gifted every year to the spouse. Does the T5 income get all attributed to me, or is it just the T5 income from the last year (10% of the income since i contributed only 10% of the total last year), or the last 3 years(30%), or 5 years(50%)? Is it forever attributed to me?
sorry for the newbie question, but i cannot find an answer.

#118 Leanne on 04.30.19 at 5:48 am

@#4 Salty: “When the government pays you over $500 per child per month…”

The per month per child allowance is ONLY this high for families earning $30k or less per year, and it has made a significant dent in lifting children out of poverty. The payout per child is scaled and stops at an annual family income of $230k I believe. I would agree at the higher end ($150k, $200k+) that it likely isn’t necessary.

#119 Hanna on 04.30.19 at 5:59 am

“Taxes in Canada have reached a point where many doctors, for example, have decided to work less, cut back their practices and enjoy life more – since working those extra hours isn’t worth it.”

Maybe these Doctors are choosing to cut back their hours not based on taxes but because it’s possible to do so in their line of work and because reduced hours allow for a better quality of life. Imagine working only 20 hours a week and still making $150k per year. I would cut back if I could but am in an industry and job where it’s all or nothing, unfortunately, which is likely the case for most of us.

#120 Evangeline on 04.30.19 at 6:14 am

#45 … “That may very well be true, but you ought to take a first-year economics course to gain a better understanding of basic economic theory. :)”

There’s no such thing as “basic economic theory” in the singular. And what is taught in the classroom depends entirely on the personal biases of the teacher.

A Thomas Sowell is not going to teach the same theory about economics as a Paul Krugman.

Few if any profs today are balanced and honestly objective enough to admit to their own biases as being biases. So all they teach are their biased viewpoints, which is why there so much economic confusion and disagreement in the world.

#121 NoName on 04.30.19 at 6:44 am

@ La Dolce Vida Loca

Keep doing what you are doing it seems that its working, ponzi its loosing it. Cant wat for him to aks same questions rest of 2.8 million s Canadians that live abroad.
Wait intil word gets around that libs don’t like them there…

#122 NewNormal on 04.30.19 at 6:47 am

While this may not be a popular opinion, I’m all in for a harmonized tax rate accross all sources of income. Reduce taxes on wages + bonus and increase them on dividends, capital gains, housing windfalls, gambling profits (lottery) and most of all, inheritance.

While I get the risk premium associated with opening and running a business, most people do it for the freedom rather than the tax benefits associated with it. (You also get the fat expense account and write offs to help compensate for risk).

Also, if a business is successful, it usually will throw off more money than working for someone else ever could.

Tax should be there to pay for services, not influence behaviour. Make it a level playing field, close loopholes and influence traps. Then we can re-purpose all the smart people working in Tax Law and accounting to do productive work for society.

#123 MF on 04.30.19 at 7:01 am

#77 not 1st on 04.29.19 at 8:54 pm

No….

How about reduce the barriers to entry for doctors in our medical schools so more graduate?

The numbers of new students are artificially kept low. They could adequately train many more, but they purposefully don’t.

Besides, I thought all doctors all told the admissions officer they wanted to make difference and it wasn’t about the money anyways.

MF

#124 Ace Goodheart on 04.30.19 at 7:04 am

Want to be a Judge in Canada? You had better have had a Liberal lawn sign in the last election (and if you made a fat donation, that helps too):

https://www.theglobeandmail.com/politics/article-pmos-background-checks-on-potential-judges-reveal-more-than-a-decade/

#125 MF on 04.30.19 at 7:08 am

#9 SunShowers on 04.29.19 at 6:06 pm

“How awful! Having to cut work hours to “enjoy life more”, while the average joes work 60-70 hour weeks across multiple jobs just to make a fraction of what those poor souls make on their reduced hours!”

^^quoted for emphasis. There are tons of people who are chronically Underemployed who can’t cobble together enough hours to make a living. And then there are the people (like me) who work multiple jobs. Being able to scale back whenever you want, work whenever you want, and still make over the average is a luxury almost no one else has.

MF

#126 MF on 04.30.19 at 7:14 am

#106 Fleeced Indeed on 04.29.19 at 11:58 pm

Lol thanks for the shout out.

The US is in the middle of an economic boom. The country goes through big busts too as part of the normal economic cycle so keep that in mind.

Also, the violent nature of Americans is becoming a problem.

MF

#127 Another Deckchair on 04.30.19 at 7:37 am

@119 Hanna;

My dad was a doctor, and he worked and worked and worked. He loved the job.

He’d leave home Monday 8:00 am, back for lunch, then back for dinner (office 10 mins drive), then for evening office hours, then overnight in Emergency, then Tuesday do the same office thing, finally coming back home Tuesday night about 9:00.

If emergency was busy, it would be a sleepless night. His other days of the week were easier; 8:00 am to 6:00, then house calls or evening office hours. Office hours on Saturday, sometimes Sunday, or more house calls.

Most of the phone calls to the house were from being “on call”, and I do remember being pissed off as he’d be called out Christmas morning 100% guaranteed. And birthdays. Guaranteed.

I do remember, when I was in last year of high school, him coming home looking absolutely beat. He was in the right place, at the right time, and saved a kid who had anaphalatic (sp?) shock and lost heartbeat not once but twice. Kid survived; don’t know if the family really knows how close it was.

Do you work that hard? I sure don’t, but I do have huge respect for doctors. If they decide to spend more time with their family, they have my absolute support.

#128 Stan Brooks on 04.30.19 at 7:44 am

#102 Ponzius Pilatus on 04.29.19 at 11:29 pm

Not sure where your loyalties are?
You live in Italy.
And you obviously must be expat Canadian.
And you keep bashing Trudeau and Canada.
You can’t have it both way.

T2 and his band of dishonest, lying and greedy incompetents does not represent Canada and Canadians. One owns no loyalty to these ethically challenged thieves.

#129 dharma bum on 04.30.19 at 8:01 am

Reading about taxes in Canada makes me physically ill.

There’s something wrong when we, as a couple, keep more dough in our pockets since I stopped working, than when I was working.

Don’t get me wrong, I’m not complaining. Not now, anyway.

But when you ultimately make more money by not working, there’s really something’s wrong with the system.

The current taxation system is most definitely a huge disincentive to keep slaving for a paycheque once investment income kicks in.

This will force the government to continue increasing the tax on salaried and hourly employees (i.e., pretty much EVERYBODY that works).

So start saving and investing early, kids, so you can get outta the rat race, and keep your cash instead of forking it over to our useless spendthrift government.

Low Tax Income Stream from Dividends and Capital Gains.
It’s a beautiful thing.

#130 BillyBob on 04.30.19 at 8:05 am

2 Smoking Man on 04.29.19 at 5:25 pm
You might also want to menton us pro high earning xpats that give T2 his father’s famous salute. Even in Commie California you far less tax than you do in Canada.

T2 will be history come October. Let’s see if andrew rolls back theiving.

I may even return if it happens.

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

My decision to leave Canada wasn’t driven by tax strategy, but my decision to never again work there most certainly is.

The country is a pleasure to visit during the several months of decent weather and it’s satisfying to convert USD and GBP into Canadian pesos. But salaried employment in an ever more socialist enclave? No thanks. Life is too short to toil for waste.

Looking forward to exercising my restored right to vote as an expat. Somehow I don’t think I’m who JT had in mind when looking for votes to count on.

#131 Linda on 04.30.19 at 8:07 am

The AirBnB thing. The website has locations, photos, host first names & email/phone numbers to contact them by. So with all of this public information, the CRA should be able to easily pinpoint who is renting & thus who should be declaring income. Unless, of course, if there are no bookings. Reference has been made to extent of CRA powers in this blog. Would not those powers permit them to request details from AirBnB regarding how much business a host was doing? Or is that more power than even the CRA has?

#132 crowdedelevatorfartz on 04.30.19 at 8:10 am

@#104 Ponzie Prattle

“Floppie,
Everyone files and pays their taxes on-line now.
It’s not JT’s fault.”

*****

Unless you own a business and are making quarterly payments….and yes, higher taxes are Trudeau’s fault..

#133 young & foolish on 04.30.19 at 8:11 am

I am sorry to say blog dogs, there is no escape from encroaching “socialism” …. not here, and not even in the U.S.

Brian Ripley’s post regarding “digitizing” tax collection hints at a different kind of future, one where tax avoidance becomes almost impossible (think cashless society), and maybe even less desirable (if the level of taxation is low enough). The system will be re-imagined, as the one we’ve had up until now becomes increasingly untenable.

#134 Tater on 04.30.19 at 8:12 am

#43 AR on 04.29.19 at 7:15 pm
Wouldn’t it be more fair to talk about absolute income rather than relative income? If you’re taking home over $200,000 a year you can afford to pay something to help people who weren’t born with your amazing brainpower. Or who weren’t born into privilege. How many doctors do you know whose parents were doctors? A lot. The cycle continues. And on the other extreme, the poverty cycle continues. Those blessed with more brains or more privilege should help those that weren’t. Otherwise society gets dangerous. Scheer and his conservatives will make that happen – by pitting the haves against the have nots and dog whistling their way to an election victory.

Pay your share, be grateful you’ve enjoyed a good life and stop whining.
————————————————————–
Ah, here comes the loser’s lament! You only got where you were because of your parents. Typically spouted by people who haven’t put in the work themselves.

What does that work look like? Well, in my case, 12 hour a day since I was 22. And for a good chunk of my 20s that workday was followed by 3-4 hours of master’s level coursework. It meant delaying having kids until we knew we could afford them.

I’m lucky, I love what I do, and I get paid well to do it. However, it is not fair or right for the government to get more than half of the rewards for that work and sacrifice.

#135 Loonie Doctor on 04.30.19 at 8:13 am

#119 Hanna

I agree that some docs will just cut back because they can. However, most that I know actually struggle with that idea. We/they have put so much into the practice of medicine and it has been such a central part of their lives for so long that the notion of cutting back on it isn’t that attractive on its own. It is a great profession and addictive in many ways.

However, no one likes to be a sucker or be taken advantage of and you start to feel that way at some tipping point where you are told that you simply need to contribute more to do your “fair share” and more than half of what you make gets taken. Then you have media and government constantly trying to paint your professional in a bad light or incite jealousy for various political reasons. It can steal joy. I am honestly torn about it and try to generally ignore it, but it has been pretty pervasive for the last five years or so.
-LD

#136 jess on 04.30.19 at 8:14 am

https://www.cbc.ca/news/business/biggest-airbnb-hosts-canada-corporations-1.5116103

its biggest players in Canada are actually — and sometimes secretly — multimillion-dollar for-profit corporations, a CBC News data analysis found.
Personable biographies or even fake photos obscure the operations of big businesses
Zach Dubinsky, Valérie Ouellet · CBC News · Posted: Apr 30, 2019 4:00 AM ET | Last Updated: 31 minutes ago

#137 Gravy Train on 04.30.19 at 8:18 am

#120 Evangeline on 04.30.19 at 6:14 am
“There’s no such thing as ‘basic economic theory’ in the singular.” You’re feisty, Evangeline. Are you single? :P
But to your point: Marshallian supply and demand functions form the foundation of economics, and I strongly doubt that Thomas Sowell and Paul Krugman would dispute the economics of tax incidence and the price elasticities of supply and demand. (It’s just pure math.)

https://en.m.wikipedia.org/wiki/Marshallian_demand_function
https://en.m.wikipedia.org/wiki/Hicksian_demand_function
https://en.m.wikipedia.org/wiki/Utility_maximization_problem

Did you read the link in my previous comment on tax incidence? Did you not notice that I said a first-year (not fourth-year) course? :P

#138 maxx on 04.30.19 at 8:36 am

And now for something completely different:

https://www.youtube.com/watch?v=maT1lwM0H-Y

#139 jess on 04.30.19 at 8:37 am

https://www.thetimes.co.uk/article/former-hmrc-investigator-accused-over-tax-avoidance-3907055pc

https://www.theguardian.com/business/2018/feb/20/fcas-chair-elect-admits-error-of-judgment-over-tax-avoidance-scheme

https://link.springer.com/article/10.1007/s10551-018-4087-8

#140 isuckless on 04.30.19 at 8:38 am

“climate emergency”? Really. Who started this global warming (later renamed to climate change when it did not happen)? Politicians. Do you really believe that politicians have your best interest on their mind? And that they are capable of changing something only if you give them money?
For example, gas is taxed in various ways, but portion of the tax goes to maintain infrastructure (new/repair old roads and such). Remove gasoline (terrible fossil fuel /s) – do you think that the politicians will not tax electricity the same way after ICE are history?
“Alternative energy” is not close enough to support civilization as we know it but our (western) politicians are pushing it no matter what. Giving subsidies to buy electric card that someone else in a foreign country built instead of caring for our own people. This is a smoke screen to get more taxes and to hide real pollution that is making our soil and waters dirty. Tailing ponds, heavy metals, pesticides, nano particles in everything, but we care about “greenhouse” (BTW, CO2 in not greenhouse gas – it is added to greenhouses to enhance plants growing, it has 0 impact to the temperature inside the greenhouse).
Remember that western world is only about a billion people. The rest 6 billion DO NOT CARE! If you do not believe me, visit Asia or Africa – 0 care for environment and fictional climate change. Consider impact of 6 billion comparing to 36 million Canadians (and don’t dare to mention that we have to do our fair share to save the planet). Kick idiot politicians out and concentrate on real pollution, not the one that brings more taxes to their (and their lobbyist friends) coffers

#141 not 1st on 04.30.19 at 8:52 am

Trudeau has already cost our country 1 Trillion dollars in lost investment, He has ran up an unpayable generational legacy debt. And now he will go after the only remaining sources of capital and wealth in the country by hammering dividends and CG. Canada will be gutted.

Trudeau is literally the Thanos of Canada. Destroy half the nation with the snap of a finger. Good thing I live in a part of the country that will soon be separating before he can wipe everything out.

#142 PastThePeak on 04.30.19 at 8:52 am

How much more CAN they raise taxes on the upper 10%? How close is to falling down the other side of the Laffer curve?

The top marginal in many provinces is about 54%, starting at a bit over the $220K mark. That last hike didn’t bring in the amount of taxes expected. Hiking this more will produce even less.

Raising capital gains inclusion rate? Sure, but that can have some obvious blowback on other parts of the economy, leading to less growth…and LESS taxes overall. Not to mention, part of a “government benefit” for only taxing 50% gain is to avoid tracking inflation on the asset in terms of adjusted cost base. If I purchase a stock, and sell it in 20 years, today I am paying the gain from its original price. If I have to pay all or most of the tax on gain, they better damn well adjust my cost base. So again, its not as much tax increase as might be thought.

Tax dividends more? Most likely they will (there will be trust fund exemptions though). Not sure what the negatives will be there (there is always something).

I am sure the provinces will raise the PST / HST in the coming years as well.

#143 not 1st on 04.30.19 at 9:22 am

Yesterday the Liberals paid Toyota to expand it lexus line up in Canada. A gift of $117M of tax payer funds for a small increase in production.

Yesterday Trump got Toyota to move $40B of production to the US without a single dollar of govt money.

https://www.trtworld.com/business/trump-japan-will-invest-40-billion-in-us-car-factories-26226

#144 Phylis on 04.30.19 at 9:26 am

#74 Lost…but not leased on 04.29.19 at 8:50 pm,…. leases being taken…
Yep, just checked, Audi lease bailing up over 100% in one year.

#145 Dispute Resolution on 04.30.19 at 9:38 am

Very timely indeed! Just finished and paid JT his last tax bill of 2018. Fortunate our family has succeeded and joined the 1% however when I work the entire year and don’t cover my spouses 53.3% marginal rate tax bill the opportunities to move locations starts to look better and better. This is the thing the government doesn’t think about. The 1% will get fed up paying more then their fair share and they have the means and opportunities to go elsewhere. When enough leave who will pay the tax bill. Looking forward to the 3 year plan and the call from US head office to join them. Tax savings alone will more then cover my above average salary and unfortunately remove two good tax contributors from Canada.

#146 Lee on 04.30.19 at 10:04 am

Those of you who do not heed Garth’s advice to stay away from individual stocks need look no further than the Kraft company and Bayer, both of which have fallen about 30-40% recently with no end in site to the pain.

#147 Sonny on 04.30.19 at 10:07 am

Who’s behind the smiling faces of some Airbnb hosts? Multimillion-dollar corporations

https://www.cbc.ca/news/business/biggest-airbnb-hosts-canada-corporations-1.5116103?cmp=rss&fbclid=IwAR1-Tn75D-mpF56UTaM98s69TNSw9BEK9t8uxt9gbi-G_pBCrmxX_LLDHhE

#148 Stan Brooks for PM on 04.30.19 at 10:32 am

#128 Stan Brooks on 04.30.19 at 7:44 am

“T2 and his band of dishonest, lying and greedy incompetents does not represent Canada and Canadians. One owns no loyalty to these ethically challenged thieves.”

Stanley it is time you run for political office! This country needs a man like you at our helm!

#149 Ponzius Pilatus on 04.30.19 at 10:39 am

#145 Dispute Resolution on 04.30.19 at 9:38 am
Very timely indeed! Just finished and paid JT his last tax bill of 2018. Fortunate our family has succeeded and joined the 1% however when I work the entire year and don’t cover my spouses 53.3% marginal rate tax bill the opportunities to move locations starts to look better and better. This is the thing the government doesn’t think about. The 1% will get fed up paying more then their fair share and they have the means and opportunities to go elsewhere. When enough leave who will pay the tax bill. Looking forward to the 3 year plan and the call from US head office to join them. Tax savings alone will more then cover my above average salary and unfortunately remove two good tax contributors from Canada.
————-
I came to Canada 40 years ago.
Even then many people were talking about high taxes and moving to the States
Brain drain and all that jazz.
Turns out Canada is still quite a nice place to live and raise a family, after all.
My advise, if you don’t like it, move.
But don’t drag everybody down with your negativity.
And don’t come back for free health care and pension.

#150 IHCTD9 on 04.30.19 at 10:45 am

#142 PastThePeak on 04.30.19 at 8:52 am
____

IMHO, the top earners are already crammed up against the maximum tax that can be applied. We have already seen some of the indicators (Trudeau’s new tax “on the rich” that generated zero revenues), and heard the opinions of high income earners right here in the comments section. They’re already pushing back. On top of that, it’s just plain common sense to work less if you’re just giving more than half of it away at the end of the year. Why bother? 40 hours is more than enough – maybe too much.

Most hard lefties think the Laffer Curve idea is a total fake joke goofy theory – so you can bet Trudeau and crew think like that. If so, the taxes will keep coming, and the revenues will keep dropping and no one running the show will have a clue what is going on (per usual).

The feds are screwed revenue wise. T2 may prove to be the straw that broke the camels back, so much economic damage that can not be fixed easily or quickly.

The situation is what it is for any leader we get – and that is why I care little about who gets to run the show. Trudeau may well be the best choice looking at the long run. He’ll totally **** things up with big business, small business, and domestic/foreign investment – meanwhile he’ll be burning what little revenue he still has on feel good garbage. This will force a change sooner rather than later.

A.S might help things for a while if he gets a majority, but Canadians will boot anyone out of office who decides to bring the pain of healing. This just delays the inevitable.

Whatever happens – I’ll keep cutting my tax bill until I see a government in power that essentially talks and acts the exact opposite of the monkey brained twit we currently have running the show. I want no part of this kind of stupidity – flag me down when Canadians get their priorities straightened out.

#151 MF on 04.30.19 at 10:51 am

#130 BillyBob on 04.30.19 at 8

Britain and the EU don’t have a bright future. Hearing you call Canada “socialist” is hilarious and ironic.

And let’s face it, you left because you failed here. Doesn’t mean the rest of us are though.

MF

#152 George Carlin, on 04.30.19 at 11:01 am

#97 the ryguy – In cabo on 04.29.19 at 10:50 pm

“Every June and November we pass through the taurid meteor stream. Each passage Earth is vulnerable for about 12-13 days. Some scientists believe Earth had another small moon, that was hit by a HUGE object and splintered, thats how the taurid meteor stream came to be. There’s more than 200 objects over 1km in diameter in the stream..if something that size hit the earth it would be lights out for just about EVERYONE on earth.”

As the late great comedian George Carlin would say, “I wouldn’t sweat the tax grab with meteors about to hit earth in the weather forecast…”

https://www.youtube.com/watch?v=4-EwFOI1mg0

#153 NoName on 04.30.19 at 11:22 am

Met friend of mine for coffee, he recommended me a book to read, regarding my obesity and anger issues…

Bought a eBook i am almost half way threw probably it’ll be done late tonight, funny thing its a book about gut bacteria.

Took a breather from reading siruis stuf, i just skipped to healthy recipes funny avocado just mentioned only 4 times, but only in combination with olive oil ans salt, not toast, i wonder why…

#154 IHCTD9 on 04.30.19 at 11:28 am

#135 Loonie Doctor on 04.30.19 at 8:13 am

However, no one likes to be a sucker or be taken advantage of and you start to feel that way at some tipping point where you are told that you simply need to contribute more to do your “fair share” and more than half of what you make gets taken. Then you have media and government constantly trying to paint your professional in a bad light or incite jealousy for various political reasons. It can steal joy. I am honestly torn about it and try to generally ignore it, but it has been pretty pervasive for the last five years or so.
-LD
___

I dunno LD, this whole Doctor thing in Canada seems to be swinging low over “not worth it” territory.

A local young Doc who decided to work part time to dedicate more time to raising her kids recently wrote a piece that ended up on the CBC. Apparently another Doc was suggesting Doctors be REQUIRED to work full time – or pay more for their educations. This idea was based on the fact that Doctor’s educations are subsidized by the taxpayer, and that new Docs therefore “owe” the taxpayer and need to work full time.

Dissension in the ranks, a black eye from the media, anger and oppression from the hate the rich crowd, cross-hairs from the CRA, cannon fodder for politicians.

At some point this kind of stress starts to push past whatever value you place on your paycheque (which I’d bet for many Doctors, may not actually be all that much despite the big numbers).

IMHO, you’ve got no change for the better coming in Canada if Trudeau gets voted in again – and that’s a statement about the Canadian voting public, not Trudeau himself.

#155 Joe Bloggs on 04.30.19 at 11:31 am

#102 Ponzius Pilatus
Not sure where your loyalties are?
You live in Italy.
And you obviously must be expat Canadian.
And you keep bashing Trudeau and Canada.
You can’t have it both way.

– LOL!!! This is it! Man, congrats – you are a certified idiot!!!

#156 Adrian on 04.30.19 at 11:38 am

FYI, Garth’s numbers come from the Fraser Institute:

(PDF warning)
https://www.fraserinstitute.org/sites/default/files/measuring-the-distribution-of-taxes-in-canada.pdf

To put those numbers into context, the bottom 40% still have a combined after tax income less than that of the top 10% (20.4% vs 23.3%):
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110019301

The marginal dollar of income is more likely to be spent on survival by low earners vs invested by high earners. That means each dollar of tax is a greater burden at lower incomes. Also, high-earner investments further exacerbate existing income & wealth inequalities. So, progressive income taxes distribute the burden more fairly while also reducing the market-driven divergence between top and bottom. Sounds good for democracy.

Extreme inequality breeds violence and social unrest. Given that inequality is still growing rapidly, if anything we aren’t going far enough. It’s easy to forget that the New Deal in the US was successfully implemented because the wealthy were scared that the alternative to giving up a little was losing everything. Are you hoping for a repeat of history, or can you recognize enlightened self-interest when you see it?

Research sources for this post included the Centre for Policy Alternatives, Statistics Canada, Metropolitan Toronto, Airbnb, The Financial Post, the Fraser Institute, 2015 Liberal Platform, the federal Department of Finance and the Bank of Canada. – Garth

#157 IHCTD9 on 04.30.19 at 11:42 am

#134 Tater on 04.30.19 at 8:12 am

I’m lucky, I love what I do, and I get paid well to do it. However, it is not fair or right for the government to get more than half of the rewards for that work and sacrifice.
_____

I hate to say it, but I think there are MANY regular voting Canadians out there who vehemently disagree with this point of view…

“You didn’t built that” etc…

I have to wonder what the future holds for the top 5-10% of Canadian income earners given that Trudeau/Horgan type politicians seem to be doing better than ever in the recent past.

#158 Headhunter on 04.30.19 at 11:46 am

Hard lesson but crime does pay, just be with the right criminals.. look at BC. $$$$ Laundreymat. Not ONE RCMP officer assigned. Think about that for one minute.
Massive money laundering… no RCMP

How many times have the big banks or trading houses been caught cheating? Make a few hundred million get caught pay 5 million in fines.. GREAT Deal 5 mil is just “the cost of doing business”

Buy an pipeline for 4 billion thats worth 3.. wher’d that extra billion go?

AirBNB great example.. tax dodgers!

just enjoy today and be happy. System is rigged.

#159 IHCTD9 on 04.30.19 at 11:58 am

#149 Ponzius Pilatus on 04.30.19 at 10:39 am

Turns out Canada is still quite a nice place to live and raise a family, after all.
_____

Weren’t you the guy paying so much for car insurance that you flat out didn’t believe what my rates were?

You even needed someone to back up my assertion – of which several did – and most paying even bloody less than I was.

Ponzie, I’m just gonna come out and say it – you’re either a sucker for punishment, or you’ve got very low expectations of your adopted country.

#160 cry_me_a_River on 04.30.19 at 11:58 am

Lol, this blog post whining about a progressive tax bracket with a safety net for the lower class.

You want regressive taxes go move to america.

#161 A.E. Newman on 04.30.19 at 12:26 pm

Kind of coincidental but reading Peter C. Newman’s book Titans – How the Canadian Establishment Seized Power and I come across this quote that is applicable to today’s discussion…

Page 146, the late George Black (Conrad’s father) speaking to the late Canadian tycoon E.P. Taylor who was hiding out in the tax haven Bahamas. “Why are you so bloody jumpy about taxes? Don’t you think that the country where you made your money is where you should keep it?”

#162 Mattl on 04.30.19 at 12:28 pm

#125 MF on 04.30.19 at 7:08 am
#9 SunShowers on 04.29.19 at 6:06 pm

“How awful! Having to cut work hours to “enjoy life more”, while the average joes work 60-70 hour weeks across multiple jobs just to make a fraction of what those poor souls make on their reduced hours!”

^^quoted for emphasis. There are tons of people who are chronically Underemployed who can’t cobble together enough hours to make a living. And then there are the people (like me) who work multiple jobs. Being able to scale back whenever you want, work whenever you want, and still make over the average is a luxury almost no one else has.

—————————————————————–

Well tough luck. The past 10 years have been gravy, who is having a hard time finding work? Ask anyone running a company that requires manual labour, it is close to impossible to find anyone that wants to work labour jobs anymore. And those that are willing to work hard, have made out pretty well – join a framing crew in 2008, willing to work OT, and you would have grossed upwards of 1MM that past decade. Electricians, plumbers, etc all pretty easy entry requirements and tons of work including lots of side jobs.

Ya, not everyone is going to make it and that sucks for them. The same people that aren’t making it today would feint at the thought of 10 years in school to become a doc. These same people that are under employed are most likely not willing to do what it takes to get ahead.

There are of course outliers, people with chronic health issues, family challenges, etc. But my god if you couldn’t find full employment the past decade, you are in big trouble when things actually do get bad.

#163 Mattl on 04.30.19 at 12:40 pm

My families response to increased taxes has been to consume less. Actually sold a boat last year and put the proceeds into my RRSP. Bought a small boat cash that uses far less gas, requires less maintenance and didn’t trigger much in the way of tax at sale.

Taxes at the top end are full on out of control. I’m a big believe in social welfare but come on, a 40% effective tax rate is obscene. End result for us is less consumption, more savings into tax efficient vehicles, and ideally a move to become a contractor / corp in the near future. Gov’t wont’s have the balls to restrict corps too much, can’t beat em, join them. Should be easy to find a few contracts in my 50s and ride out the last 10 years to retirement.

#164 Pheebel_Wimpe on 04.30.19 at 1:00 pm

I did the expat working and living thing for a few years. Living (mostly) tax free in Qatar let me save up a chunk. However, while I gained a lot of great experience living and travelling abroad, I made the decision that savings in an offshore brokerage account can’t make up for the things I gave up, like a degree of social and legal equity, universal health care, public education and a cleaner environment. Let’s try not to forget what our tax dollars fund, and not just think about the people who receive transfer payments.

Also, did Garth’s analysis include GST/HST, CPP contributions and EI premiums? It was my understanding that the incidence of tax (plus social contributions) was relatively flat across income levels despite the progressiveness of income tax.

#165 Eks dee Siple on 04.30.19 at 1:01 pm

#134 Tater “…loser’s lament” Q: Who is really the loser, here? A: The one who sacrificed his youth, worked 16 hours followed by 4 hours of study, in order to get a (wage slavery job) working for the government off the taxpayer’s dime. And then complaining that the government doesn’t care about you? YUSBINHAD.

The Social Contract was breached in the 80s under the Conservatives in both Canada and the US when the off-shoring of jobs was completed for the 0.1% ers. Then the Credit Economy was born and bred by the banker parasites.

It amazes me that people actually think that politicians actually change anything tangible in the economy. Bureaucrats do that. The CRA does that. With simple “Rule Changes”. Your Real Rulers, as I call them. Bought and paid for by your local friendly banker. As a smart poster shared above, these changes are not part of a platform and are done quickly.

Garth has admitted that most of his clients are in their 40s, doctors, with about 250K to invest, so he is basically always advocating for these 1 percenters. I’m not saying there is anything wrong with that. Just business, I guess.

#166 not 1st on 04.30.19 at 1:04 pm

#149 Ponzius Pilatus on 04.30.19 at 10:39 am
Turns out Canada is still quite a nice place to live and raise a family, after all.
—-

The success of a nation is more than just a pretty view from your deck. Its reliant on its ingenuity, productivity, entrepreneurship, investment and las of all demographics. Yes demographics can be countered by proper investments like Japan is doing. But Canada is not doing that. On average our immigration is 10 yrs older than the US and half their working lives are gone by the time they get up to speed.

Look at the demographics again. Canada is headed for the ditch. There is no reversing this now. To keep everyone in these social programs and pet projects, the country will have to tax itself harder and harder. That creates a cycle where motivated move out and ply their trade where they are treated better. That leads to less investment, then more tax, then more money leaving and pretty soon its all downhill. T2 wouldn’t be thinking about dividends and CG if this weren’t the case.

http://population-pyramids.github.io/#/Capital%252C%2520BC/Canada

#167 Eks dee Siple on 04.30.19 at 1:07 pm

Harper was paying women to have kids as well. It got him elected to a second term, as I recall, in the last few months of the campaign. You foolish conservatives have such short memories. As if anything will change if Scheer gets in. What has Drug Ford done for you, lately? Not even buck a beer. Ha! YUSBINHAD.

#168 MF on 04.30.19 at 1:17 pm

166 not 1st on 04.30

Wrong:

Average age of immigrants is around 30. Makes sense since children aren’t going to be leaving their country alone.

https://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-010-x/99-010-x2011001-eng.cfm

Btw, Demographics are not a Canada specific problem, but rather an entire western world issue.

MF

#169 MF on 04.30.19 at 1:22 pm

IHCTD9 on 04.30.19

No. That is indicative of something else: voters vote against a party not for the competition. Remember T2 was elected because Harper was mean.

MF

#170 Bobby on 04.30.19 at 1:23 pm

The sad reality is there are many out there who believe high wage earners should be taxed at even higher rates. Their position is they should have the same wages and benefits as a doctor for example, regardless of their skills. Sadly these people also have a vote and are easy swayed with unrealistic promises.
Out here on the west coast we have governments at both the provincial and municipal levels that believe much should be free. Given most have little business or economic sense they have no idea that someone actually pays. Sadly these nut bars have a following.
Unfortunately it takes a crisis to facilitate change. As doctors leave or reduce their workloads maybe the masses will get the message.

#171 Tater on 04.30.19 at 1:26 pm

#165 Eks dee Siple on 04.30.19 at 1:01 pm
#134 Tater “…loser’s lament” Q: Who is really the loser, here? A: The one who sacrificed his youth, worked 16 hours followed by 4 hours of study, in order to get a (wage slavery job) working for the government off the taxpayer’s dime. And then complaining that the government doesn’t care about you? YUSBINHAD.

The Social Contract was breached in the 80s under the Conservatives in both Canada and the US when the off-shoring of jobs was completed for the 0.1% ers. Then the Credit Economy was born and bred by the banker parasites.

It amazes me that people actually think that politicians actually change anything tangible in the economy. Bureaucrats do that. The CRA does that. With simple “Rule Changes”. Your Real Rulers, as I call them. Bought and paid for by your local friendly banker. As a smart poster shared above, these changes are not part of a platform and are done quickly.

Garth has admitted that most of his clients are in their 40s, doctors, with about 250K to invest, so he is basically always advocating for these 1 percenters. I’m not saying there is anything wrong with that. Just business, I guess.
—————————————————————–

Us 1

#172 Tater on 04.30.19 at 1:30 pm

#167 Tater on 04.30.19 at 1:26 pm
#165 Eks dee Siple on 04.30.19 at 1:01 pm
#134 Tater “…loser’s lament” Q: Who is really the loser, here? A: The one who sacrificed his youth, worked 16 hours followed by 4 hours of study, in order to get a (wage slavery job) working for the government off the taxpayer’s dime. And then complaining that the government doesn’t care about you? YUSBINHAD.
——————————————————–

Wait, what? Working for the government? Ha, no.

You’re so fantastically bitter. It’s great. Try to improve yourself rather than complain about what the world hasn’t handed you.

#173 Grey Dog on 04.30.19 at 1:38 pm

I have the privilege of paying taxes for a law abiding secure life around me. I don’t like the idea of larger class sizes. I appreciate our medical coverage.

Why has the CRA not gone after Canadians that opted out via Isle of Man and Panama Paper schemes?

Why are they relentlessly chasing my cleaning lady?

#174 not 1st on 04.30.19 at 1:51 pm

And Canadas economy just contracted again and inflation rose. And this coming from its own corrupt shill group Statscan so you know its way worse than that.

https://www.marketpulse.com/20190430/cad-pressure-canada-gdp-contracted-ppi-increases/

#175 not 1st on 04.30.19 at 1:56 pm

Canadian economy shrinks with poor weather adding to oil woes
Theophilos Argitis, Bloomberg News

Canada’s economy returned to its sluggish ways in February, with a drop in output that will reinforce expectations of a slow start to the year.
Gross domestic product fell 0.1 per cent, taking back some of the 0.3 per cent gain in January in part due to poor weather, Statistics Canada said Tuesday from Ottawa. Economists were estimating output would be unchanged.

The February data are consistent with an economy that continues to grapple with a number of headwinds and may have barely grown in the first quarter of 2019, extending a slump that began at the end of last year.

The monthly numbers are in line with the Bank of Canada’s pared back expectations for the quarter. Without any more growth in March, Canada’s economy may have come to another near halt in the first three months of the year, as the central bank is now predicting. Policy makers expect the economy to pick up from the second quarter on.

Falling resource production was the main culprit in February, with the mining and oil and gas sector down 1.6 per cent — its sixth consecutive drop. While the oil and gas sector continued to show weakness, the big decline was in mining and quarrying outside of energy. That component fell 4.4 per cent, driven by reduced output of most types of metals.
A tough winter in much of the country also played a role in the contraction, adding to the economy’s woes.

This was evident in a 1.6 per cent drop in transportation and warehousing sector, the largest one-month decline for the sector since June 2011. On the flip side, February was a great month for utilities, which saw output jump 1.5 per cent because of the cold.

#176 Brett in Calgary on 04.30.19 at 2:01 pm

#21 renter in Surrey on 04.29.19 at 6:29 pm
that’s pretty much how I feel looking at my tax return

what’s the point of working your ass off?

you can’t even afford damn condo anyways
====================================
My wife and I have had the same conversation countless times, and we are only 40 years old. Due to the economy it’s quite possible she loses her job this year which would mean our household falls from 150k, 80k/year income. Would we really notice the difference in today’s tax and real estate regimes? Not that much I would bet, but we are also atypical Canadians.

#177 Incubus on 04.30.19 at 2:17 pm

Charles Hugh Smith said the same thing. You can not milk a cow to the blood.

http://charleshughsmith.blogspot.com/2019/04/there-are-two-little-problems-with.html

#178 jess on 04.30.19 at 2:34 pm

7 years under seal

Whistleblowers: Company at heart of 97,000% drug price hike bribed doctors to boost sales cnn
—————————————
…”In other words, tax havens aren’t tax havens just because they have low taxes—rather, what makes a tax haven is its opacity of financial information. This is why tax havens are often more accurately referred to as ‘secrecy jurisdictions,’ and why they facilitate many more problems than just tax evasion…

“Multinational companies (or ‘MNCs’) use tax haven secrecy in slightly different ways then criminal tax evaders and money launderers. In general MNCs use complicated corporate structures involving layers of tax haven entities and accounts to disguise or alter the character of their income in ways that (often legally) reduce their corporate tax bill, a process known as ‘tax avoidance’ (in contrast to ‘tax evasion,’ which is illegal). These strategies can be wildly successful for MNCs, bringing their tax bills down to zero or even triggering a tax refund from the government, while they enjoy massive profits.

Cracking down on tax avoidance often requires closing the seemingly endless number loopholes in tax treaties and tax laws one at a time. However, one way to greatly expedite this process, as well as bring public pressure to bear on rampant tax avoiders, is to require them to own up to their tax schemes. Global Financial Integrity recommends that all multinational companies be required to publicly disclose basic financial information, such as their sales, profit, taxes paid, and number of employees, in each individual country in which they operate. This policy, called “country-by-country reporting,” will not only help both rich and poor countries better enforce and amend their tax laws, but it will also make free markets more transparent for investors and the public at large.”
https://www.gfintegrity.org/issue/tax-havens-bank-secrecy/

#179 The Wet One on 04.30.19 at 2:40 pm

Hi Garth,

Thanks for this corrected statement:

“The top 20% of income-earners (family incomes over $120,000) earn 49% of income ”

It may not be 100% correct, as I couldn’t find the stats that support it anywhere although I’m sure I’ve read such from Stats Can in the past, but at least I can read that and not recoil in disbelief at how incorrect it sounds.

My household income for 2018 was $142K (just did taxes yesterday so the info is fresh). I’m not top 20 percentile where I live, but I’m probably top 20 percentile in Canada. That’s eminently believable and close enough to actual reality. $180K household? Ehh…. Not so much.

Cheers!

The bracket is roughly $120,000 to $186,000. – Garth

#180 BillyBob on 04.30.19 at 2:45 pm

MF on 04.30.19 at 10:51 am
#130 BillyBob on 04.30.19 at 8

Britain and the EU don’t have a bright future. Hearing you call Canada “socialist” is hilarious and ironic.

And let’s face it, you left because you failed here. Doesn’t mean the rest of us are though.

MF

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

lol Oh dear little MF.

On the one hand you want the barriers to entry lowered, judging from your comments about doctors. I ran into the same obstacles in aviation. Not for lack of effort, persistence, hard work, whatever. Instead of whining about it, I left, and guess what failure turned into spectacular success. By any metric you care to name.

And that’s the difference between you and I.

You’re still a failure.

Not sure what makes you think you’re qualified to comment on the EU or the UK lol. But keep working those multiple jobs. I only have one, I enjoy it immensely, and it pays very well, thanks.

#181 not 1st on 04.30.19 at 2:54 pm

Canadas income by riding. Square this with housing prices, then square it with tax policy. There is nothing left to take from people and the 1% wont stand for it. They have accountants and advisors.

http://338canada.com/map-income

#182 Sold Out on 04.30.19 at 3:12 pm

Given that successive governments of all stripes have actively pursued, supported, or enacted trade pacts that capped the earning ability of the working and middle classes, why are the high-income types who voted for them filling the comment section here with their kvetching about paying more income tax? Where do think it should come from? The middle class has always been the greatest source of tax revenue; well, the reality is that all you “high income” doctors, lawyers and entrepeneurs are what is left of the middle class. High income is relative; it only looks good compared to what the rest of us have been subsisting on. Your ivory tower isn’t inviolable. Why are you so special that your standard of living shouldn’t suffer, just like everyone else’s? Wake up, you’re not protected by your advanced degrees, or net worth. You were all just fine with the gutting of the working and middle classes, because you thought that you were different and special; you were wrong. Get used to it.

#183 MF on 04.30.19 at 3:14 pm

180 BillyBob on 04.30.19 at 2:45 pm

Where did I say I am a failure?

What gave you that impression?

Oh yeah, I didn’t. You just have no argument and made it up I guess.

News flash, everyone under 40 works multiple jobs. That’s how you get ahead, remember? Hard work.

And you don’t have to be an expert to see it. Dim future for the EU and UK. From politics, to economics, to social dynamics. Many headwinds that will only get worse.

MF

#184 IHCTD9 on 04.30.19 at 3:15 pm

#168 MF on 04.30.19 at 1:17 pm
166 not 1st on 04.30

Wrong:

Average age of immigrants is around 30. Makes sense since children aren’t going to be leaving their country alone.

https://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-010-x/99-010-x2011001-eng.cfm

Btw, Demographics are not a Canada specific problem, but rather an entire western world issue.

MF
_____

So…

“The median age of newcomers in 2011 was 31.7 years”

Per stats Can. That’s even younger than I thought it might be. Garth posted the median for all of Toronto yesterday at 39.5 years old.

This is surprising, and can only mean there are a boat load of wrinklies, or soon to be wrinklies in Toronto.

#185 isuckless on 04.30.19 at 3:37 pm

BTW, why CEO of big corporations have such a big salaries that shareholders support – tax avoidance (one of the reasons for the pedantic) for the company as salary is a loss of profit, so less corporate tax to pay to the government

#186 NoName on 04.30.19 at 3:39 pm

@MF that statement of your makes you sound like holywood actor.

Americans are not violent by nature, lack of quality education, family makeup and lack of opportunity to some degree does that to people.

Yrs back i read blog whete some dude with menial job whete he describes how two car repairs brought him to the knees an how it took yrs to pull himself up. It got me wondering how many other s didn’t make it amd just threw towel in..

#187 Westcdn on 04.30.19 at 3:41 pm

My neighbour’s wife died about 6 months ago. He had a new honey within weeks. He is moving into her place and will rent the house for cash flow. I am not going to miss the lazy city employee and his yappy small dogs – 3 of them that seemed to hate me. He didn’t walk his dogs or socialize them. He told me a story about how my cat would walk the fence, sit down and stare at them which put them into a frenzy. He had to shoo her away as the barking was intolerable.

This could be an instructive story as the young woman has no idea of what kind of dead weight she has picked up. But then, I am a moody one. It looks like I will getting a bunch of new home owners shortly – circle of life – could get interesting.

#188 Y. Knott on 04.30.19 at 4:05 pm

#86 Ustabe on 04.29.19 at 9:19 pm

I’ll say it once again, if you turf the Liberals you get Andrew Scheer as PM. Think about that for a second.

The guy hasn’t had an original thought since high school.

– So, you’re saying you admire the’ original thoughts’ Trudeau has?

You know, the ones like… “Oh I think I’ll go Christmas vacationing on the private island of a real good friend of daddy’s, whom MY government gives several million dollars a year… Oh what’s that you say? I… broke Canadian law taking that real nifty private helicopter ride to his island? So what? – I’m Prime Minister, I can do what I want!”

– Or his… “MY government WILL take stern action on MY Ministers and MY Cabinet members, and throw them out as soon as they’re ACCUSED of any physical misogyny toward women – and oh – what’s that you say? Some reporter says I groped her, and then told her I wouldn’t’ve if I’d known she was a reporter? Oh well… err… well, I remember it differently – and besides, I’m Prime Minister so the ruling I made doesn’t apply to me anyways.”

– Or, his… “I have a GREAT idea – I think I’ll go on a vacation to INDIA! And I’ll dress-up like a maharishi and take LOTS of selfies – and fly-in a private chef all the way from Canada to cook Indian food for us on the taxpayer’s dime – and oh yeah! – I’ll invite a murderer to come-along and party with us!”

– Or, his… “Oh I know! I’ll outlaw handguns! That’ll really turn-on all my greeeeen followers, and get me LOTS of votes in Toronto and Quebec, and what’s that you say? It won’t affect gun crime in Canada at all, even the police say it won’t? – that’s NONSENSE!!!; so err, besides, I can always just have Ralph Goodale lie about it a little, nobody cares about gun-owners anyways…”

– Or… “We’ve REALLY got to SAAAAAVE THE EARTH! Oh I know – my BFF Gerald says we really need a tax on that awful carbon, and what’s that you say? Canada actually absorbs carbon, and voters’re taxed to the max already and can’t afford it? I thought I’d explained to the Ontario electricity ratepayers, stopping eeevil global warming is MORE IMPORTANT than them, they can freeze and starve for all I care! Besides, I need the money; so many other important social justice causes I’ve gotta’ spend it on…”

– Or his… “WHAT??? WHAT does she think she’s DOING??? SNC-Lavalin is one of daddy’s best-friends EVER – and they’re in QUEBEC – and besides, Bill and I have big slices of our trust funds invested with them! I’ll teach her…”

– Or his… “Let’s spend $4.2 billion on a pipeline…” or his “let’s give my buddies at Loblaws $12 million…” or his “let’s give Omar Khadr $10 million so he won’t say mean things about daddy…” or his “I’m pledging $50 million of YOUR MONEY on this really worthy cause I saw on the TV, because then I can take a selfie with this neat TV star…”

Compared to Shiny Potato’s indisputable genius in office? – I’m quite prepared to risk four years of Andrew Who, thank you.

#189 Jonah on 04.30.19 at 4:11 pm

bread is 3 bucks; absolutely insane and here Garth is talking about 1%ers. Salries have not gone up compared to inflation and yet people are buying houses on mortgages.

Taxation is the only solution. Rich should be taxed because they can afford it. If they adjust their lifestyle, so be it

Now you can tell us how taxing some people more will lower bread prices. Or that of houses. – Garth

#190 Ustabe on 04.30.19 at 4:12 pm

A couple of observations on this day’s comment section.

“The people who matter don’t care and the people who care don’t matter” Dr. Seuss

“Too many people aren’t aware of the water they swim in.” Me.

A few of you I’d actually go out of my way to have a beer with but I have to say I’d do a frogger over the 401 to avoid quite a few more. All you do is argue and bitch. Never a solution offered, never a constructive thought presented. Everything is not black or white, there is a lot of background going on if you just stop the hate and divisiveness and look around.

I can immediately think of 101 things to be positive about being Canadian, living in Canada and being retired (me) and working (my kids) in Canada.

The only thing I’m a bit down about is we don’t have a North African restaurant and the Korean place shut down.

#191 not 1st on 04.30.19 at 4:27 pm

#190 Ustabe on 04.30.19 at 4:12 pm

—-

Like most retired people you probably don’t care what happens in the country. Got your OAS and CPP and health care, three programs on their way to insolvency without massive tax infusions, or disqualifications.

Have a couple little kids looking at you every day and then load up the debt and gdp forecast for this country factor in some demographics and technological disruption and maybe then you will wake up. If there was a game called boiling frogger you would excel.

#192 BillyBob on 04.30.19 at 5:31 pm

#183 MF on 04.30.19 at 3:14 pm
180 BillyBob on 04.30.19 at 2:45 pm

Where did I say I am a failure?

What gave you that impression?

MF

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

You do, pretty much every post. Trying to take shots at people who do things differently from you and succeed, like myself. Taking shots at other countries and even whole economic unions, even though you’re too afraid to try leaving your own little comfort zone.1

Sorry, but “The EU” is far too complex to be reduced to the simplistic terms you use. And if you think somehow I’m worried about the fate of said EU, the UK, or any country really, guess again. My skillset is portable, in demand, and unlike you I’m not afraid to go where the prospects are. Not to mention that thanks to following Garth’s advice over the years, I am rapidly approaching the point where work is something I only have to do if I feel like it.

Just a friendly note, but when you constantly complain or try to tear others down, you just come across as insecure and whiny.

To me, that’s a failure.

#193 Remembrancer on 04.30.19 at 6:13 pm

#188 Y. Knott on 04.30.19 at 4:05 pm
or his “let’s give Omar Khadr $10 million so he won’t say mean things about daddy…”
———————-
You were on quite a roll there, but let’s be clear on this one – if we’re handing out invoices to prime ministers, the bill needs to go to Harper not Trudeau, who set the floor price for extrajudicial revocation of Canadian citizenship rights…

#194 TurnerNation on 04.30.19 at 7:30 pm

Where your taxes go. T2 remit per UN Agenda to punish the West. No worry we’ll all be equal soon.

https://www.transparency.org/cpi2018

#195 Eks dee Siple on 05.01.19 at 12:51 pm

So, I asked what Drug Ford has done for us and *crickets*. I guess you conservatives have finally STH up. Good. What happened to Open for Business? Where da binness at? Out the back of Ford’s black Escalade, where it’s always been. What a joke. Look at gas prices, food beer prices, education and healthcare going to decay. I think I have a protracted right to poke fun at Ford and his cult followers moving forward. Better get used to it. Told ya so. Oh wait, I see that the cult of Ford is blaming T2 carbon taxes. Riiiiiight. Wasted how many millions for radio ads to tell me those untruths? Autistic children don’t need money, but those radio stations need it badly. Someone stop me, I’m having too much fun here. Yes, Drug Fraud was the answer to our problems all along! LOL.