Suck, blow, repeat

Have you noticed the campaign to fillet the stress test has been ramped up? Can the politicians withstand it as we lurch towards a pivotal election? And what’s the latest on the T2 gang’s plan for taxes?

“The damage done from these stress tests has been enormous,” wrote the CEO of the Ontario real Estate Association this week in the Financial Post (he’s a former politician, a Tory), “beyond what many thought was the worst case. Not only are many people not able to become homeowners at all, others can’t upgrade as their families grow, which in turn means they aren’t selling their starter homes to people trying to buy for the first time.”

Tim Hudak joins the homebuilders, the mortgage brokers, real estate boards in the GTA and Vancouver as well as the banks in ramping up the hate for B-20 as we move into the critical six months prior to the vote. (OREA is also supporting the NDP’s call for 30-year mortgages, by the way.)

Now here comes TD Bank, being holy in its own self-interest as one of the biggest home-loan lenders in the land. Make the stress test flexible, it cries, because the impact of it has been nasty. Sales have cratered in many markets and prices are starting to tumble. In fact, the bank calcs, 40,000 fewer real estate deals were done in the last year because of the test, while about 50% more people were thrust into the arms of subprime lenders since the banks punted them.

Why is this not a good thing after we blew up the biggest housing gasbag in Canadian history?

Because, says TD, it hurts first-time buyers, who normally make up 40% or 50% of the entire market, especially in hipster havens like Toronto and Van. Forcing moisters to prove they can carry a house without cashtration has bloated the rental market, where lease costs are rising and the vacancy rate falling.

All true. But the bank also admits eliminating B-20 would jack Canadian home prices on average by 6% plus what the bank expects will be a 4% hike by the end of the year. In short, this would be an increase of $32,000 in the national cost of a property – which might be something closer to $50,000-$80,000 in 416 and 604.

The bottom line: “a significant near-term boost to housing activity, though at a longer-term cost of worsened affordability.” Duh. And where, exactly, are the kids supposed to get an extra $32,000 or fifty grand to buy the same house? Oh wait… from the bank…

Now a brief follow re taxes. Try not to throw up on the screen.

The top marginal tax rate has zipped over 50% in a majority of provinces. Recent T2 changes mean 40% of families contribute net nothing. The top 20% carry two-thirds of the freight. Professionals and small business dudes have been targeted. Paying people to have children has helped eliminate the goal of a balanced budget. And continuous deficits mean, of course, future taxes must increase. Hard to see how this is sustainable.

But it appears the current government’s happy with this direction and plans to push further. This week Chrystia Freeland, currently the foreign minister (she really plans on being prime minister) suggested taxes on the ‘rich’ will rise further to prevent Trumpian populism from taking root in the land of beavers and weasels.

If the wealthy don’t bleed further, there’s a danger the middle class will be “hollowed-out” and we will have a tough time “trying to sustain democracy.” Even more eloquently she told an Ottawa audience that if middle class folks – many of who now pay no income tax after the Liberal changes – don’t feel financially secure, then the outcome will be a “crummy, crummy society that will be really scary.”

The minister then said the Liberal platform for the coming election will feature “more concrete measures” to (a) fund middle class aspirations, (b) increase family financial security, (c) resist populism and (d) presumably get the 1% to pay for it.

As a reminder, there are 271,000 people making enough money to be 1%ers – average income of about $380,000. They earn 10% of the money and pay 18% of the taxes. Seems like enough.

Now, just to remind us that there are actually people without Porsches who read this pathetic blog, here’s Emily.

I really appreciate your blog, and all the advice you provide. It’s definitely been a big help to us since I’ve started reading a couple years ago – every day – and spend an inordinate amount of time playing with the Turner Investment retirement calculators as well.

My family is one of those getting the “free ride” from the government (I don’t approve of current tax brackets and rates but definitely not turning the baby $ away in protest). My husband earns $76k-ish per year. I stay home with our 3 kids (4th on the way). I have no plans of ever going back to work. We are 32. Our house will be paid off in 4 years (or 8, if we can trade up to our neighbor’s) and we are contributing $765/month for our and I can reasonably expect it to get us over the million mark for age 65.

My question is: What is the best use of retirement vehicles for us? We are right now doing a spousal RRSP and his TFSA, with a 60-40 split. The tax refund from the spousal we put into the TFSA as well.

Should we lessen the spousal contribution ratio and focus more on TFSA? Ignore his TFSA and change those contributions to his personal RRSP? We don’t NEED the refund (as we just reinvest it anyways), I’m more just wanting to be able to income split our funds in retirement– but our retirement income is never going to be overly large, maybe at our bracket it’s not going to matter terribly.

I was wondering what you thought for permanently single-income families, who won’t be maxing out accounts every year. I realize this situation doesn’t apply to a lot of your readers (but surely I’m not the ONLY stay-at-home mom), so I definitely understand if you can’t get to it. I do really appreciate all the free advice I’ve gotten so far, via the blog. Thanks for all you do,

You are doing well, E. On $76,000 a year you and hubs have raised three kids, almost paid off a house and have a 30-year plan to retire with seven figures. But apparently Chrystia thinks you’re financially insecure, ready to vote for some White Power nut and would happily join a rabid rabble intent on flipping and torching  her government limo outside West Block. Perhaps you could email her for us ([email protected]) and clear things up.

As for a strategy, carry on. All RRSP contributions should be into the spousal plan. That way hubs can claim the deduction against his income and yet you gain ownership of the money. When you take it out in retirement it will be virtually free of tax, effectively splitting this income. Meantime plop the refund plus whatever other money you can find (like the payments for four kids) into your TFSAs. Fully fund them. They’ll be critical in retirement, since the cash thrown off will not be counted as income, therefore letting you keep all those OAS payments, and pay no tax.

Apparently that’s my job.

198 comments ↓

#1 Captain Uppa on 05.01.19 at 4:46 pm

Garth, you could always just make less money.

Problem solved.

#2 Darryl on 05.01.19 at 4:55 pm

ah yu like it Garth.

#3 Streetcarriderr on 05.01.19 at 4:56 pm

Cool first one!

#4 Sold Out on 05.01.19 at 4:57 pm

Grenier shows Cons at 36%, Libs at 30%; I think we can safely assume that B20 is going to be whacked, and 30 year amortization will be making an encore performance.

#5 Smartalox on 05.01.19 at 4:58 pm

What you neglect to mention in your thesis is that:

– People who aspire to the ‘middle class’, and who long for increased financial security actually DO end up being ‘net’ contributors.
– They’ll pay more in taxes, (income and consumption) as they earn more money.
– And the government will collect more in taxes from 1000 people increasing their earnings from $75k to $95k than you will by having 100 people earn over $200k per year.

– Also, since the ‘40% pay net nothing’ stat has been used to justify cuts to services for those ‘ingrates’, it would help to realize that providing fewer services does little to make those people pay more of ‘their share’. It just makes those that can’t afford any support more miserable.

#6 Howard on 05.01.19 at 4:58 pm

Why no discussion of increasing sales tax on luxury items?

If you can afford a $100k car or $20k bracelet, you can certainly afford a few percentage points more in tax on the item.

Ditto luxury homes, btw. Anything over $3 million.

#7 W. Kinsella on 05.01.19 at 5:05 pm

Hey Cons, Right wingers (and by extension Bisonette and Bretton Tarrant supporters):

What happened to “muh free market” and “socialism is bad”?

Lobbying government to enact laws to remove a stress test is socialism.

Asking government to give grants to first-time owners is socialism.

#8 Kurt on 05.01.19 at 5:10 pm

Many thanks to Emily and her hubby for taking up the slack so we will be less reliant on immigration to maintain our population. And thanks to Garth (among others) for funding the project.

God, that sounds so weird. Doesn’t it sound weird to you?

Good advice from Garth though, hat’s off to him.

#9 Victoria Real Estate Update on 05.01.19 at 5:10 pm

VICTORIA: HOUSING PRICE DOWNTREND GAINS MORE MOMENTUM

Single family home prices in a growing number of areas in the region are showing year-over-year declines.

Another one of those areas local agents claimed would have “higher prices year after year” – Victoria (city) – is showing lower prices year-over-year.

Victoria (city) SFHs
Average Price Increase/Decrease
Year-over-year:

Apr 2019: prices down – 15%
Mar 2019: prices down – 6%

(Source: Victoria’s R/E board)

By late 2016 I noted that Greater Victoria’s bubble deflation process had begun after noting that (month-over-month) sales of SFH homes had been falling at an unusually fast pace.

2017 proved that falling sales was indeed a trend across the region as SFH sales fell significantly (year–over-year) in every month that year. And that, of course, was before the stress test was implemented in January 2018.

So Victoria’s housing market correction process began a full year before the stress test in 2018. The reason is clear: extremely overvalued house prices caused demand to tank. Nothing new there when one considers what has happened with every housing bubble in 200 years of world housing bubble history.

Local realtors said that demand would never fall from 2016 levels. But it did. Then they said that demand wouldn’t fall as a result of the stress test. But it did.

Then realtors said that prices would never fall in Victoria even with weaker demand. And now prices are falling.

That SFH prices are falling in Victoria (city) is especially difficult for local agents to accept after many of them had claimed that the core was untouchable.

No area and no property type will be spared from what Mr. Market has in store for Victoria’s massive housing bubble.

#10 PastThePeak on 05.01.19 at 5:25 pm

Well, you have to give some credit to the Trudeau Liberals, as they have done ONE THING right in terms of their self-interest.

They have managed to get the vast majority of Canadians (say the 90%) to go to war with the top 9.8%, while the top 0.2% (or whatever specific value – whatever gets one to about 1M+ in income or structured to pay next to little in tax on large estates) get to continue on as before or even increase their wealth.

As mentioned here multiple times – the top 1% (on average) in Canada, looking at earned income in a year, is about $230K (depends on location what that cutoff is). The vast majority of that $230K to the upper 6 figures of annual income is going to be high paid professionals (docs, lawyers, some sr. engineers), small business owners, and sales dudes in white collar professions.

The “rich” are probably the 0.2%. These are the ones with the means to significantly structure their affairs for less tax, have offshore accounts, & have lawyers and accountants on speed dial. The T2’s and Morneau’s if you would. They make sure that the impact of higher taxes falls on the 1-0.2%, but not above (through various loopholes).

But, as always, the poorly educated and ill informed Canadian public fall for it ever time.

#11 the ryguy - In cabo on 05.01.19 at 5:27 pm

#7 W. Kinsella on 05.01.19 at 5:05 pm
———————————————
Who’s arguing for socialism? Seen whats been happening in that Venezuelan haven?

Im all for letting the housing market burn. That being said if a simple stress test creates a slow melt as opposed to a flat out crash then I think any sane person would take the former.

Let’s explore your premise though.. you say we are free market, I say Venezuela is socialist, alright good. Any moron (maybe even you?) would agree that even though we have our problems we are still miles ahead of starvation or being run over by military tanks.

Lefties don’t have a platform..as usual. Go ahead call me racist, Ill show myself out.

#12 Re-Cowtown on 05.01.19 at 5:30 pm

Populism…. just another way of saying the unwashed masses are tired of the elitist yoke.

I can see why the Liberals try to demonize it.

Tell us more about the ‘yoke.’ – Garth

#13 PastThePeak on 05.01.19 at 5:31 pm

As for Emily – indeed why work. 4 kids will collect $20K+ per year for awhile until they outgrow the CCB. That is like the after-tax amount of a min wage job. When considering daycare costs, it is a no brainer.

And after the kids are in upper high school, working or in post secondary ed, you won’t have any interest in starting back into the work force again either. I know a handful of stay-at-home-moms, and none had any interest in going back to work once the kids were raised. Although they did complain a lot about being bored…

#14 AGuyInVancouver on 05.01.19 at 5:31 pm

#6 Howard on 05.01.19 at 4:58 pm
Why no discussion of increasing sales tax on luxury items?

If you can afford a $100k car or $20k bracelet, you can certainly afford a few percentage points more in tax on the item.

Ditto luxury homes, btw. Anything over $3 million.
_ _ _
The BC NDP did exactly that. Garth wasn’t a fan.

They also wisely amped up the tax on luxury vehicles.

#15 Classical Liberal Millennial on 05.01.19 at 5:34 pm

Lobbying government to enact laws to remove a stress test is socialism.
———
No it’s not, Warren. Besides, those wanting the stress test gone fall in all political camps

Asking government to give grants to first-time owners is socialism.
———-
Yes, agreed.

#16 Howard on 05.01.19 at 5:37 pm

#7 W. Kinsella on 05.01.19 at 5:05 pm
Hey Cons, Right wingers (and by extension Bisonette and Bretton Tarrant supporters):

What happened to “muh free market” and “socialism is bad”?

Lobbying government to enact laws to remove a stress test is socialism.

Asking government to give grants to first-time owners is socialism.

———————————————

No arguments here, fake Warren.

No true conservative should want ANY government intervention in the housing market, be it bullish or bearish.

Though I’m not sure why you think realtor/broker/banker always equals right-winger? Tim Hudak is just one person.

#17 yorkville renter on 05.01.19 at 5:37 pm

4 kids… 1 income of $76k… paid off home before 40 and saving for retirement…

Does this magical animal actually exist?!?!!?!!

Not when you live in 416. – Garth

#18 Linda on 05.01.19 at 5:37 pm

Big smile at today’s blog photo:)

On to today’s post. I think a lot of people would claim the middle class was ‘hollowed out’ a long time ago. Somewhere along the way people began to believe the marketing that everyone could live the lifestyles of the rich & famous. More importantly, the belief appears to be that one can live that lifestyle without having to put in the time/effort to pay for it. Or as one recent commenter seems to believe, those who are smarter & therefore possibly able to earn more should pay for those who are not as blessed. Apparently there is now a moral obligation to take care of the financially disabled.
I disagree. My take is that ‘smart’ people are simply ordinary people who have done the work to improve their finances. If you want the lifestyle, do the work to get it & by work, I don’t mean running a con to guilt the one who did the work to pay for your goodie.

#19 yorkville renter on 05.01.19 at 5:39 pm

There are exactly ZERO purely capitalist societies that exist today. Don’t kid yourself

#20 Loonie Doctor on 05.01.19 at 5:40 pm

#10 PastThePeak

That is exactly what I think too. They have brilliantly framed the issue to make a group of villains that distract from those that most of picture when we think of 1%ers. It is like lawn mowing.

The lawn mower cuts any blade of grass that starts to get tall and stick out. The rest of the lawn celebrates as they are mulched up to fertilize them. No one looks up to see who is pushing the lawnmower and it is impossible to join that elite group of social landscapers.

Main strategies that I see as a blade of grass are to stop trying to grow, enjoy the trim, or transplant to another pasture. Not sure what the right answer is actually.

-LD

#21 yorkville renter on 05.01.19 at 5:40 pm

Not when you live in 416. – Garth

In other news, water is wet…

#22 Howard on 05.01.19 at 5:44 pm

#12 AGuyInVancouver on 05.01.19 at 5:31 pm
#6 Howard on 05.01.19 at 4:58 pm
Why no discussion of increasing sales tax on luxury items?

If you can afford a $100k car or $20k bracelet, you can certainly afford a few percentage points more in tax on the item.

Ditto luxury homes, btw. Anything over $3 million.
_ _ _
The BC NDP did exactly that. Garth wasn’t a fan.

They also wisely amped up the tax on luxury vehicles.

——————————————

I know (though not about the luxury vehicle tax – good call there).

I don’t understand why Garth is opposed to a luxury home sales tax. Aren’t consumption taxes “good”? I would be all for a steep federal luxury homes/goods tax if it meant lower income taxes, including for the top 1% of income earners.

#23 yvr_lurker on 05.01.19 at 5:47 pm

Although we are near 1%ers in terms of family income, I do not have a problem with the child tax credit for lower income families. Although we could debate on where the level should be for this support (the family you mentioned above must be from a rural community to do well with 76K), this 76K income would be very low in YVR, GTA, etc. There has been much improvement in the child poverty rate over the past few years, and to me this is an important societal goal. If we are dog-eat-dog like the US, there is very little mobility in the class structure (with one reason being the ridiculous cost of tuition versus that in Canada). This breeds resentment, especially when so many of the low skill jobs are sent overseas with globalization.

However, I think the gig should be up with soaking the 1%ers and high-earners any further. Instead, to raise revenue, The CRA needs to crackdown on systemic tax cheaters, and the Gov’t needs to decrease expeditures on non-essentials. Trudeau seems to run the Gov’t like he is giving $$ from his own piggy bank. Annoyed me no end in pledging $$$ for this TV charity several months ago. His claim to fame will be legalizing dope (an issue I generally could care less about). Generally can’t stand the guy, although I did (mistakingly) vote for him.

I wish that in October there was a Chretien-Martin type coalition; very pragmatic and direct. No Ass-kissing to the U.S. They provided, in my view, the best governance that Canada had in the past 25 years.

#24 Victoria Real Estate Update on 05.01.19 at 5:47 pm

Garth, why have you omitted to talk about the extremely dangerous conditions that had been allowed to develop in Canada (rooted in its extreme debt and housing bubble problems) that basically forced policy makers to quickly take action and implement the stress test before the banks and the entire economy were affected?

What has changed since 2017 in terms of the massive debt and housing bubble problems that were the reasons for the implementation of the stress test? Debt is higher. Incomes haven’t skyrocketed.

It’s interesting that the this is hardly mentioned at all by the MSM and even policy makers. It’s as though the extreme problems that brought about the stress test in 2018 never existed. But they’re still there.

It’s laughable that almost nobody realizes that Canada has hiked rates only 5 times recently while the States hiked 9 times. And which country was hit harder by the GFC in 2009? lol Basically the stress test compensates for the lack of rate hikes compared to the States.

Canada’s massive housing bubble will deflate with or without the stress test.

Removing the stress test would be an admission by policy makers that the extreme dangers to the economy and the banks that necessitated the stress test in early 2018 (that haven’t gone away, more debt, etc.) are no longer on their radar.

Sounds like removing the stress test would be a deliberately destructive action since none of the problems and dangers that brought about the stress test before 2018 have gone away.

#25 Peak on 05.01.19 at 5:48 pm

So disappointed in the Real Mark…

I expected you to comment on yesterday’s post, and disagree with the 2016 VanRE peak, and proclaim it was 2013 when it peaked.

I guess you finally retired your fantasy opinion?
Well done, I guess.

#26 Sebee on 05.01.19 at 5:51 pm

Anything…I mean ANYTHING to keep these values holding.

Aren’t these efforts a form of price-fixing?

#27 Yukon Elvis on 05.01.19 at 6:00 pm

As for a strategy, carry on. All RRSP contributions should be into the spousal plan. That way hubs can claim the deduction against his income and yet you gain ownership of the money. When you take it out in retirement it will be virtually free of tax, effectively splitting this income. Meantime plop the refund plus whatever other money you can find (like the payments for four kids) into your TFSAs. Fully fund them. They’ll be critical in retirement, since the cash thrown off will not be counted as income, therefore letting you keep all those OAS payments, and pay no tax.
……………………………………..

Every time you give advice like this it gives Turdo and the Teapots new ideas on ways to grind more tax out of us. Stop it will ya ? They can change all that with the stroke of a pen. And i will bet you a bag of mice that they will.

#28 CONservatives are fiscally irresponsible Communists on 05.01.19 at 6:03 pm

Some of the biggest SHYSTERS and societies laziest people are conservative. These leaches on society hate working or being productive members . They want taxpayers to backstop fraudulent mortgages/ risky loans for their vreedy benefit. Look at how millennial tell that lazy CON tim Hudak how they like the stress test https://twitter.com/OREAinfo/status/1123247851528699904?s=19 . Bankers, realtors, mortgage broker Conservatives HATE and I mean H A T E free markets. These CONservative communists are scum of the earth. They know they would have to work for money if the government didnt back stop all those fraudulent mortgages. They also know home prices would be half price. These scum of the earth SHYSTERS are scared the mass buyers will see prices are coming down. In fact many already do. I hate lazy CONs

#29 Bob Dog on 05.01.19 at 6:04 pm

Back in 1999 we had something called the “Great Canadian Brain Drain”. US companies were paying 50% more for doing the same work and paying in US dollars that were worth $1.61 Canadian. I still have loads of US dollars from my time in Seattle.

Perhaps it would be useful to dedicate a blog day to inform young Canadians about their options outside of Canada. The NAFTA T1 (non immigrant visa) is still the best vehicle for paying 0% tax to the corrupt puppet regime in Ottawa.

Anyone trying to plan for a retirement should consider the USA for 5 or 10 years. If you work 10 years in the US you are entitled to a US pension as well as the Canadian pension. The US version pays way more.

Seriously on a day to day basis, you can’t tell the difference between living in the USA or Canada. Just avoid politics and religion and you will thoroughly enjoy your stay there. And then there’s In & Out Burger.

Seems its still an issue.

https://www.theglobeandmail.com/business/technology/article-canada-facing-brain-drain-as-young-tech-talent-leaves-for-silicon/

#30 B Don on 05.01.19 at 6:08 pm

Cashtration is golden.
Belongs in Webster’s.

#31 Dboy1 on 05.01.19 at 6:16 pm

Making people pay more taxes on houses over 3 million is a great idea since that is a very small minority of the population. All a great argument from people that don’t have 3 million dollar homes. Other side of the story. Sold our house 4 years ago ( nowhere near that figure) and do not want to buy another. If we had been in that category we would have sold and taken ALL of that tax free money out of country— perfectly legal — and found somewhere that was friendlier in regards to taxes. Think maybe that might happen with the ones that actually do own the high end houses????

#32 Sean on 05.01.19 at 6:18 pm

Since we are still on the topic of who pays what in taxes… why don’t the feds just require the larger accommodation sharing services (AirBnB, Homeaway etc) to charge GST/PST/HST and remit on behalf of hosts, and require a SIN or business number for hosts? This would deal with the GST issue, and also make it extra easy for the CRA to cross reference to automatically bing tax evaders. And anyone who thinks this would push sharing underground doesn’t understand how these businesses work. If it encourages landlords to go back to long term rentals, that would likely be beneficial.

#33 Communist Conservatives on 05.01.19 at 6:20 pm

15 Classical Liberal Millennial on 05.01.19 at 5:34 pm
Lobbying government to enact laws to remove a stress test is socialism.
———
No it’s not, Warren. Besides, those wanting the stress test gone fall in all political camps

Asking government to give grants to first-time owners is socialism.
———-
Yes, agreed

——————

You SHYSTERS think we are stupid? You are all lazy communist conservatives. Every realtor , banker and mortgage broker is a communist conservative . They are lazy liars who want to fleece taxpayers money. Not one cry from the communist conservative party of Canada about CMHC. Communist conservatives hate the free market.

#34 Adrian on 05.01.19 at 6:23 pm

And continuous deficits mean, of course, future taxes must increase. Hard to see how this is sustainable.

In dollar terms, sure, but in in percentage terms, nope. Not unless they get truly out of hand and debt-to-GDP rises significantly. Federally, it’s only about 35%. You keep pushing this propaganda, but to quote Brown University professor and author of ‘Austerity: The History of a Dangerous Idea,’ Professor Mark Blyth, “It’s complete horse $#i+!… The United States has never paid back its Civil War debt in full. The economy is hundreds of times bigger than it was back then.”
its_complete_horse_sht_watch_an_ivy_league_professor_dismantle_gops_austerity_lie

And the longer quote from the interview:

It seems that politicians often frame their argument in the same way. Like, “We’re saddling our grandchildren with debt…” and so forth.

This is a classic canard as well; it’s complete horse [$#i+]! The sum total of public debt is equivalent to the assets of the private sector. Who do you think is buying these things? At the end of the day, the public’s debt is simply a transfer of income and interest from one side of the public to the other; you owe yourself the money. The argument that you have to cut it now so that you don’t leave your kids in debt is totally fallacious because if you cut now what you’ll leave them instead is a smaller economy by the time they become adults, which means that the same amount of debt will actually be bigger.

That’s what happened in Greece; that’s what happened in Portugal; that’s what happened in Ireland through the cuts. It’s doubly fallacious because if you don’t actually pay it now and you focus instead on growth— which is what the administration, through the opposition of Congress and other such nonsense, has done— as those kids get older the economy will be so much bigger that, reciprocally, the debt will be smaller. There’s a reason the United States has never paid back its Civil War debt in full. The economy is hundreds of times bigger than it was back then. What’s the point?

#35 Try this on 05.01.19 at 6:24 pm

#29 B Don on 05.01.19 at 6:08 pm
Cashtration is golden.
Belongs in Webster’s.

https://www.urbandictionary.com/

#36 Andrew on 05.01.19 at 6:33 pm

Drop gold, buy bitcoin.

https://twitter.com/grayscaleinvest/status/1123664985312378880?s=21

#37 expat on 05.01.19 at 6:38 pm

Here in the USA where most wealthy Canadians have moved to

this lady would be considered a deplorable by the democrats and socialists so yes Freeland definitely wants to keep her happy.

The Libs saw what the word deplorable did to the New World Order Socialists down here.

It wiped the Dems out in 2016.

Socialists are totally stupid

#38 Ana on 05.01.19 at 6:39 pm

Re: #21 yorkville renter on 05.01.19 at 5:40 pm
Not when you live in 416. – Garth

In other news, water is wet…
————————————————————

You know the world exists beyond 416 right?

#39 Steve M on 05.01.19 at 6:42 pm

I came to this country fifteen years ago with a money order for $20k, two suitcases and the clothes I was wearing.

In those fifteen years, I’ve gone from making $10/hr, to grossing north of $230k last year – thanks to bloody hard work and putting myself through school a couple more times.

As an immigrant, I’m asset-poor, compared to others in the top marginal tax bracket. I have a couple of non-flashy cars, wife and one child – maybe another (child, not wife) on the way, 33% paid off for a modestly-sized house. $350k in the RRSP/TFSA, and a some non-reg savings. I have 20-25 years of my working life left in me.

As a one-percenter (in terms of income), Trudeau and Freeland like to portray this image that I’m a high rolling, smoking cigars lit with twenties, popping up to my Muskoka cottage in the F-250 every weekend, leaving the nanny to look after the kid in my mcmansion, scumbag who must be taxed to oblivion. Because I’m rich, so very, very rich.

Not true. My income may be high, but I consider myself firmly middle class. My T4 shows big numbers, but my RRSP will never have the Net Present Value (or security) of your average teacher, cop or firefighter. My non-reg funds are just waiting to be plundered by a higher cap gains rate.

Whenever I hear Mr. Privilege himself talking about strengthening the middle class it makes me want to puke. How does slashing a modest TFSA limit help the middle class? How does punishing progress to earn more help the middle class? How does a Carbon Tax on everything help the middle class?

I’ve given up on career progression at this point as I’m through killing myself doing 60-70 hour weeks to pay the government first. Hey, I wouldn’t mind if the money went somewhere useful, but it’s just used to buy others votes and gets pissed away on pipelines that won’t get built.

Anyway, I just wanted to make the point that not all high-earners are truly rolling in it. Wealth can be both earned and built up over time. I don’t have any inherited wealth, currently or expected. My net worth today is south of a mil, which is pretty much the expected average for anyone who bought a house in the GTA pre-2005. I’m just trying to pay off my home, do right by my family and save for retirement. No French chateaus here, and certainly no Trust Funds. Just a regular guy who thought he was doing the right thing.

No doubt there will be some Liberal along subsequently to chastise the point I’m trying to make, tears for that 1%er asshole, etc. And I don’t care. I will NEVER vote for these Buttsesque neoLiberal, dream-crushing, morale-sapping, hard-work-punishing thieves as long as I live.

Cheers!

#40 Dave on 05.01.19 at 6:42 pm

In BC our ex-News Anchor Bill Good has moved into a new line of work. He is on both Radio and TV a hundred times a day convincing people to use the services of Capital Direct. If you own your home you can get a home equity loan – no credit check, no waiting – here you go. Big loan with big fees.

He is using his trusted name as a news anchor to screw anyone over. What next Bill? Career in politics like Jas Johal?

#41 TheDood on 05.01.19 at 6:42 pm

#18 Linda on 05.01.19 at 5:37 pm
…….Apparently there is now a moral obligation to take care of the financially disabled.
I disagree. My take is that ‘smart’ people are simply ordinary people who have done the work to improve their finances. If you want the lifestyle, do the work to get it & by work, I don’t mean running a con to guilt the one who did the work to pay for your goodie.
___________________________________

I completely agree.

It doesn’t take much to educate yourself for financial success. Some of the time lots of people use browsing and texting on their $900 smartphone could be used to do some daily “light” reading to strengthen their money smarts (this blog for starters).

The information to get financially saavy is available everywhere and a lot of it is free. If you’re too lazy to seek it out, then you’re just plain stupid.

#42 tomohawk52 on 05.01.19 at 6:44 pm

My wife and I have about 850K in investments, no debt. We earn about 35K between us. After filing this year’s taxes, my wife got a $2500 “low income” or somesuch cheque from the government.

I sort of hope Trudeau wins and we can expect more poverty cheques from the government in the future. I am thinking seriously of going from working about 700hrs/year down to something like 300hrs and see what goodies I can collect.

I’m not the sharpest too in the shed but even I am belatedly realizing that the tax code is just a test with actual money as the prize. What they are testing, though, isn’t exactly clear. ;-)

#43 Jerry on 05.01.19 at 6:49 pm

Don’t you guys see what’s going on here it doesn’t matter how much taxes we pay, we could give them all of our money they will just keep spending it all like drunken sailors.
There must be a system in place that governments cannot spend more then they taken.
If they must it will have to be an emergency.
This is the only way we will ever survive, and prosper as a nation.

#44 Lisa on 05.01.19 at 6:49 pm

Keep going Emily! Childrearing and running a household are hard work even though society doesn’t put much value on them. But most of society is broke so carry on, you are contributing a lot to society!

#45 Too Big To Fail on 05.01.19 at 6:55 pm

#24 Victoria Real Estate Update on 05.01.19 at 5:47 pm

Removing the stress test would be an admission by policy makers that the extreme dangers to the economy and the banks that necessitated the stress test in early 2018 (that haven’t gone away, more debt, etc.) are no longer on their radar.

Sounds like removing the stress test would be a deliberately destructive action since none of the problems and dangers that brought about the stress test before 2018 have gone away.
———

While completely logical and true, you fail to grasp politics. Something that RE bulls have warned RE bears on this blog for some time.

The housing industry is ‘too big to fail’ – 70% of voters are homeowners, and the next election is a chance to cauterize recent real estate wounds.

Just as the real estate industry whipped up FOMO amongst Canadians for over 15 years, do you really think that they will stop their pressure and stay silent on B20 in the next election?

The stress test is done in the next election. All parties will put out platforms supporting a resurgence of the real estate party.

Prices will resume their stratospheric rise; savers, investors, renters and the financially prudent will be punished for the umpteenth year in a row; and the remaining 70% of the population that are homeowners will be happy that prices will remain high and actually increased.

It is really that simple.

Come a year from now, people will be lamenting that they missed the boat- again- because they failed to grasp the housing industry, its importance to the economy, and its influence at the political and societal level.

#46 DB on 05.01.19 at 6:55 pm

Hello,
Regarding Emily’s situation..
1) kudos for the commitment to saving and having the house almost paid off
2) I would think RESP contributions should come after RRSP and before TFSA contributions to claim the annual Educational Savings Grant maximum
3) there are some great advantages and cost savings that come from being a single income household that I am sure Emily is aware of and is availing herself of but there are certainly some important risks. Saving for retirement is laudable but it’s also important to mitigate for the unforeseen events that inevitably arise (i.e. sudden loss of employment, sickness etc.)
4) many people had planned not to return to the workforce after having children or retiring but were forced to do so due to a change of circumstance. It’s always best to keep your options open by maintaining skills, maybe working part-time or casual and/or taking distance/online ed courses.

#47 gfd on 05.01.19 at 6:57 pm

. . . moving to Venezezuela same shit better weather

#48 Dazed and CONfused on 05.01.19 at 7:09 pm

11 the ryguy – In cabo on 05.01.19 at 5:27 pm

“……Who’s arguing for socialism? Seen whats been happening in that Venezuelan haven?…..”

Wrong. Venezula’s problems are a direct result of corruption, not socialism.

Try throwing your same arguments against Sweden, Denmark, and they don’t stick. But you already knew that.

Bonus Question:
Which country is responsible for blowing the brains out of the entire financial world in 2008, causing more damage than a 100 Venezuela’s.
Hint: It was a corrupt (capitalist) country.

#49 Bonhomme Carnaval on 05.01.19 at 7:16 pm

“crummy, crummy society that will be really scary.”

Crummy society is right!

Every time I look at my pay-stub, all I see are crumbs!

Nice Chrystia, walked into that one–poor rhetoric.

#50 45north on 05.01.19 at 7:29 pm

“The damage done from these stress tests has been enormous,” wrote the CEO of the Ontario real Estate Association this week in the Financial Post (he’s a former politician, a Tory), “beyond what many thought was the worst case. Not only are many people not able to become homeowners at all, others can’t upgrade as their families grow, which in turn means they aren’t selling their starter homes to people trying to buy for the first time.”

so the real estate agents’ position is clear – their interest is short term and short term, it’s bad for them.

Now here comes TD Bank, being holy in its own self-interest as one of the biggest home-loan lenders in the land. Make the stress test flexible, it cries, because the impact of it has been nasty. Sales have cratered in many markets and prices are starting to tumble. In fact, the bank calcs, 40,000 fewer real estate deals were done in the last year because of the test, while about 50% more people were thrust into the arms of subprime lenders since the banks punted them.

There’s a difference between policy and analysis. This is analysis. TD Bank is simply making it available to the public:

https://economics.td.com/b-20-rules

Just listen to Dave McKay, who happens to be in charge of the Royal Bank: “We need some of this policy change, particularly the B-20 change, as we are in a highly stimulative monetary policy environment. We needed to layer on some type of policy change; now that the Bank of Canada feels more comfortable raising rates, that’s supposed to be the brake on the economy that we all like to see.”

the stress test is in the big banks’ vital interest. Their long term interest. They’ve seen the movie “The Big Short”. They don’t want to end up like Nortel.

I have friends who were hurt by Nortel. The stress test is not only, in the interest of the big banks, but also the little guy.

#51 Steve M on 05.01.19 at 7:30 pm

#42

Thank you for further illustrating my point!

#52 Chris on 05.01.19 at 7:31 pm

People who have 3 or more children and who make less than $200k per year are actually stealing from this country. It is a shame. With a $76K family income, Emily probably will not be able to afford college tuitions for her kids. Child care is expensive. Just add food, toys, books, after school classes etc and they will be left with hardly any savings. Canada cannot support an ever increasing population. Population actually has to reduce so that wages can go up and everyone can enjoy a decent quality of life. Canada should only bring in highly skilled immigrants so that they can fill the gap in our economy and create jobs. With the coming advancements in automation and robotics, we need fewer people.

#53 45north on 05.01.19 at 7:31 pm

The top marginal tax rate has zipped over 50% in a majority of provinces. Recent T2 changes mean 40% of families contribute net nothing. The top 20% carry two-thirds of the freight. Professionals and small business dudes have been targeted. Paying people to have children has helped eliminate the goal of a balanced budget. And continuous deficits mean, of course, future taxes must increase. Hard to see how this is sustainable.

compare and contrast the Liberal assault on professionals and small business dudes with its position on climate change. On one hand, the variables of a balanced budget are well understood and under human control. On the other hand, the variables on climate change are not well understood and are not under human control. They include radiation from the sun, ocean currents, carbon dioxide levels, water vapour, methane levels, volcanic ash.

#54 crowdedelevatorfartz on 05.01.19 at 7:31 pm

@#28 Conservatives are communists
“Some of the biggest SHYSTERS and societies laziest people are conservative….”
*****

When did Happy Housing Crash devolve into this?

#55 DD on 05.01.19 at 7:33 pm

Remove the stress test is ok as along as they remove CMHC at the same time.

#56 AK on 05.01.19 at 7:34 pm

#17 yorkville renter on 05.01.19 at 5:37 pm
“4 kids… 1 income of $76k… paid off home before 40 and saving for retirement…
Does this magical animal actually exist?!?!!?!!”

“Not when you live in 416. – Garth”
====================================

Possible in Windsor, otherwise, It’s “Fake News”.

#57 PGer on 05.01.19 at 7:36 pm

#28 CONservatives are fiscally irresponsible Communists.
You know that weed is legal now, right? I suggest that you invest in some – it may calm you down.

“Cashtration” – that’s great Garth. My new word of the day.

#58 AK on 05.01.19 at 7:36 pm

“This week Chrystia Freeland, currently the foreign minister (she really plans on being prime minister) suggested taxes on the ‘rich’ will rise further to prevent Trumpian populism from taking root in the land of beavers and weasels.”
====================================

Freeland can trash talk all she want’s. Bottom line is that The Liberal Party will not be re-elected in October.

#59 Nonplused on 05.01.19 at 7:37 pm

Just a friendly reminder to everyone, the poor and middle class pay CCP, UI, HST, property taxes, licencing fees, and increasingly carbon taxes and I am sure a whole bunch of other taxes, just like the rich. So their net tax is not zero. And after paying all of those taxes, they don’t really have any money left to pay income taxes, but they still do because you have to remember the taxes the rich pay are embedded in the price they charge for their services. Your mechanic doesn’t pay his taxes with his own money, he doesn’t have any! He raises his hourly rate. Same with your plumber, your lawyer, your doctor, the guy who mows your lawn, everybody. It doesn’t matter where taxes are applied to an economy, everyone pays about the same. It’s just a matter of where the taxes are extracted.

#60 crowdedelevatorfartz on 05.01.19 at 7:42 pm

@#96 Groovy Train
“You do know that plastic can be reused and recycled, right?”
*******

You know plastic is a chemical by-product of the oil refining process right? Right?
My God.

@#110 Damfino

:)

#61 Howard on 05.01.19 at 7:44 pm

#45 Too Big To Fail on 05.01.19 at 6:55 pm

Remind me what the home ownership rates were in the US, Spain, Ireland, and Iceland before their housing markets collapsed? Last I checked those were all democratic countries. As is Australia, currently down 7% (and 15% in Sydney). As was Canada in 1989.

Weren’t you gloating a few weeks ago that the shared equity scheme would cause the market to bubble again, before being revealed as a nothing-burger policy?

#62 Kat on 05.01.19 at 7:46 pm

Pretty sure they could sell them, lower the price.

#63 TurnerNation on 05.01.19 at 7:50 pm

Found the sub prime lender. Ooof!! Same rates as an unsecured LOC at my banks. Interest only payments.

And , no wonder TD Bank stopped advertising its
‘Mortgage Payment vacations’ when people most likely just roll & roil with their HELOC payments.

“The Globe and Mail reports in its Wednesday edition that Echelon Wealth analyst Stephan Boire thinks the investor community should give the Mortgage Investment Corporation sector “significant attention,” pointing to the “quality and record” of their managers as well as their “relatively attractive risk-adjusted yields.” … “In essence, MICs offer investors exposure to the residential and commercial real estate lending sector.” …”AI is a mortgage lender essentially benefiting from the fragmentation of Canada’s lending environment. The MIC lends in major urban areas and aims at a weighted average LTV ratio of the mortgage portfolio of less than 75 per cent. More specifically, a typical loan from AI would have an interest rate within a range of 7.75-10 per cent per year, with a one-year to two-year term and monthly interest-only payments.” …
© 2019 Canjex Publishing Ltd. All rights reserved

#64 TurnerNation on 05.01.19 at 7:52 pm

MIC nack paddy whack give a Blog Dog a bone.

Dating myself there…

#65 not 1st on 05.01.19 at 7:57 pm

If Freeland becomes PM, I will be the first at the US border claiming asylum.

#66 Blacksheep on 05.01.19 at 8:00 pm

Too Big # 44,

“While completely logical and true, you fail to grasp politics. Something that RE bulls have warned RE bears on this blog for some time.

The housing industry is ‘too big to fail’ – 70% of voters are homeowners, and the next election is a chance to cauterize recent real estate wounds.”
———————————
Over the years I have repeatedly told my: Owning RE for 15 years, then selling and renting for 5 years, waiting for the crash of 2008 that never happened, then buying back in 5 years ago tale, shared for the benefit of the many RE bears on this blog, only to the typical reception of crickets or outright criticism…

I just shake my head when I read ridiculous comments, like this one from yesterday:
—————————–
“Home will go for what buyers can afford as a reasonable proportion of their single income or for cash. Yes it can be that scary folks.”

“If you have an un-housed labor force that makes minimum wage then that means maximum home prices could be equal to or less than $84,000 and even that will seem expensive.”
————————-
This sample comment just displays how out of touch with the situation some folks are here. I continue to come here to learn from Garth and others more incite full than myself (many) even though it became obvious to me a long time ago, this forum suffers from extreme group think as people simply seek like minded parties to confirm their biases, accurate or not…this is why I now post very little.

Glad to see at least someones, actually paying attention.

#67 palebird on 05.01.19 at 8:02 pm

#39 SteveM

“No doubt there will be some Liberal along subsequently to chastise the point I’m trying to make, tears for that 1%er asshole, etc. And I don’t care. I will NEVER vote for these Buttsesque neoLiberal, dream-crushing, morale-sapping, hard-work-punishing thieves as long as I live.”

I agree.

#68 palebird on 05.01.19 at 8:03 pm

Funny how nobody has commented on the BC/Alberta war regarding gas and oil. Quite amusing to hear Horgan crying about gas prices in the lower mainland and blaming Kenney. Poor boy, guess he doesn’t like getting beaten by his own beating stick. Who is going to save him???

#69 acdel on 05.01.19 at 8:05 pm

DELETED

#70 the ryguy - In cabo on 05.01.19 at 8:08 pm

#48 Dazed and CONfused on 05.01.19 at 7:09 pm

“Wrong. Venezula’s problems are a direct result of corruption, not socialism.”
——————————————————-

Lol, wow Garth..can you believe Presidential Candidate Bernie Sanders comments on your blog? Who would have thought, big day for GreaterFool!!

Re: Sweden, Denmark – Socialism only “works” in smaller countries with homogeneous populations. You start applying identity politics and socialism will tear down the country. Even with this small concession I’d still argue (and win) that citizens working towards their own good will ALWAYS be more efficient than central planners.

Man Im not sticking up for corrupt politicians in ANY system. You want to take out the bankers, be my guest, i’ll even contribute to your go fund me. Thats what you lefties don’t understand about us on the right. Im not pounding the table to allow fraud/insider trading/tax cheating/endless wars.

Pure Capitalism > Capitalism with Corruption > Pure Socialism > Socialism with Corruption

This isn’t up for debate.

#71 Fungal Fred on 05.01.19 at 8:08 pm

“Not since Justin …. gutted TFSA contributions. ”

You do keep moaning about that. Just noticed today that my 2019 TFSA room is actually $6,000 so it appears the Liberals stuck with the (good) plan for TFSA room to start at $5,000 in 2009 then increase with inflation in $500 chunks.

I suppose I hadn’t noticed because the Liberals hadn’t made a hoo-ha out of it increasing, unlike the H____r lot when it went to $5,500. Much taxpayer moolah was spent for them to do photo-ops suggesting they’d raised the amount, when in reality it was inflation that raised the amount.

Then yes, the last bunch did lift the limit to $10,000 (which is not 2X $5,500) but they removed the inflation adjustment. So what they did was of time limited benefit.

Don’t worry Garth, eventually inflation will lift it to $10K and beyond. In the meantime, have a nice moan.

The purposeful blunting of a tool to democratically assist all families is worth noting. Repeatedly. – Garth

#72 joblo on 05.01.19 at 8:12 pm

Garth Iv’e been waiting for your meaning of life post,
Meantime I was sent this, is it close?

Imagine there is a bank account that credits your account each morning with $86,400. It carries over no balance from day to day.
Every evening the bank deletes whatever part of the balance you failed to use during the day. What would you do? Draw out every cent, of course?
Each of us has such a bank. It’s name is TIME.
Every morning, it credits you with 86,400 seconds.
Every night it writes off as lost, whatever of this you have failed to invest to a good purpose.
It carries over no balance. It allows no over draft. Each day it opens a new account for you. Each night it burns the remains of the day.
If you fail to use the day’s deposits, the loss is yours. There is no drawing against “tomorrow.”
You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness and success!
The clock is running!! Make the most of today.

#73 Bobby Bittman on 05.01.19 at 8:17 pm

We will be in good hands when Chrystia takes the PM job. She has that experience Garth is always looking for.

As an economist journalist? – Garth

#74 not 1st on 05.01.19 at 8:26 pm

Here is a little experiment any one can do one day. Pick a Wed in the middle of the month away from any stat holidays and then take a trip to your local timmies about 2pm in the afternoon when the old people are home napping. You will never see more able bodied people sitting around in the middle of the day having a double double. Someone told me shift workers. I think something else and it goes right back to the amount of people who are non-contributors to this economy.

#75 meslippery on 05.01.19 at 8:33 pm

#23 yvr_lurker

This breeds resentment, especially when so many of the low skill jobs are sent overseas with globalization.

However, I think the gig should be up with soaking the 1%ers and high-earners any further.
———–

It was the 1% that came up with offshoring and the Government let it happen. So now they pay dearly.

#76 crossbordershopper on 05.01.19 at 8:42 pm

DELETED

#77 Flop... on 05.01.19 at 8:46 pm

I give you 870k because I like you.

Do you buy an Irish castle with 15 bedrooms and 10 bathrooms, or do you buy a 2 bed/2 bath condo in downtown Vancouver?

You chose the condo?

Put the kettle on, I’m coming down for a chat…

M44BC

https://vancouversun.com/news/local-news/this-game-of-thrones-castle-sold-for-price-of-a-vancouver-condo

#78 crowdedelevatorfartz on 05.01.19 at 8:48 pm

DELETED

#79 Classical Liberal Millennial on 05.01.19 at 9:00 pm

Is “Communist Conservatives” the new SCM?

#80 Yuus bin Haad on 05.01.19 at 9:08 pm

Oh, we are WAY to far over the line for any of this to matter.

#81 Drill Baby Drill on 05.01.19 at 9:11 pm

Jason Kenney is a future PM

#82 Blog bunny on 05.01.19 at 9:14 pm

Just looked at my old spreadsheets. When my salary used to be around 40-50K, I still managed to save 50% of my net income and fully support myself including an annual Cuba vacation. I do not understand why the savings rate in Canada in general is so low. I understand even less why the government is unable to budget and a tax increase is a solution to every problem. This is truly discouraging to those who are hard working and diligent savers.

#83 RESPs? on 05.01.19 at 9:23 pm

What about RESPs?

I mean, some people don’t save anything for the kids, but with 3/4 of the little buggers and a high likelihood at least one or two of them may go to college or university, wouldn’t the guaranteed amount the government kicks in make a lot of sense in Emily’s case?

#84 Cash is King on 05.01.19 at 9:23 pm

A Nanos Research poll released on August 16, 2011 found that fewer than one in four voters describe Hudak as the most trustworthy leader. Among women, the number was one in five. (From Wikipedia)

Tim seams to be a perfect fit to lead realtors.

#85 DON on 05.01.19 at 9:24 pm

#79 april on 05.01.19 at 1:07 am

#65 – Your wrong. This is no “little blip”…. a long way down yet. You must be a realtor. Folks stay out of the housing market especially if your going in to debt to buy.
**************

Oh…I know I am wrong. I was just trolling for house pumpers and caught you by mistaken sarcasm.

But like these boys like to think:

**** #66 Blacksheep on 05.01.19 at 8:00 pm

Too Big # 44,

“While completely logical and true, you fail to grasp politics. Something that RE bulls have warned RE bears on this blog for some time.

The housing industry is ‘too big to fail’ – 70% of voters are homeowners, and the next election is a chance to cauterize recent real estate wounds.”

**So prices can keep going up while incomes remain the same…and favourable economic conditions will remain the same indefinitely. The real reason why sales are low is price got out of reach. How can the average family expect to pay off a $500,000 to $1 000 000 mortgage over 25 years. 25 yrs Broadway. The fact we can’t raise interest rates says something about our economic state.

Where are job losses? They are slowly materializing, realtors and mortgage brokers first and as things slow builders start to lay off, then trades, then home depot etc. Hootsuite (Van) just laid off 100+ citing something lame about the internet social blah blah.

By the end of summer sentiment could be in the dumpster and a whole new behavioural meme will be discussed in public.

Why is the TD bank so panicked?

#86 Unhinged Trader on 05.01.19 at 9:34 pm

Wait, there’s a White Supremacist candidate running this fall?

That would be a fun way to throw away my vote.

@36 “Drop gold, buy bitcoin.”

Eh, don’t buy Bitcoin. The shakeout is just starting.

#87 adee on 05.01.19 at 9:35 pm

Pre B-20:
Here, borrow ridiculously cheap money and buy overpriced houses – overpriced because everyone else is also getting ridiculously cheap money.

Post B-20
Here borrow ridiculously cheap money – but just show us you could pay a higher interest rate, tho you’ll never have to. Good news – your house will be less overpriced.

The ONLY people actually hurt by B-20 are people who can’t afford a house.

#88 Ronaldo on 05.01.19 at 9:40 pm

”Not only are many people not able to become homeowners at all, others can’t upgrade as their families grow, which in turn means they aren’t selling their starter homes to people trying to buy for the first time.”
——————————————————————-
Ok, so someone who bought a starter home in summer of 2008 in Vancouver’s westside which at the time cost $875,000 and now valued at $1,800,000 is supposed to be affordable for a 1st time buyer. Give me a break. Even if the price was to return to the 2008 level it would still not be affordable for most 1st time buyers. What are these people thinking? We have a long ways to go yet before homes become affordable and that is at these historical low interest rates.

#89 Willy H on 05.01.19 at 9:42 pm

The chasm in earnings between 2%’s and what remains of the middle class will drive government policy for some time to come. It’s the new normal.

Overvalued real estate is a big part of this problem.

B20 needs to stay in place until interest rates normalize. It may take a decade.

If T2 caves into our beloved bankers, Hudak and his neo-con cousin Kenney we are heading back to the same real estate circus that has fueled this blog for almost a decade.

How many generations are we going to screw over with such a blatant and short-sighted mis-allocation of our limited economic resources in a bloated non-productive housing market?

This is not just bad for personal finance, it’s skews our GDP and sucks valuable capital away from investments in economic sectors that would drive real growth and incremental wealth creation.

#90 Dolce Vita on 05.01.19 at 9:44 pm

Speaking about SUCK, BLOW & REPEAT this “Liberal” Government cannot win for losing.

So, innocuous spacefaring Marc Garneau announces today the Zero Emission Vehicle Incentive Program. You’d think that what go over well.

Think again and Urban Hipster Millennials. Here are some of their Twitter Replies to his video announcement:

“Interesting announcement to make in Ottawa at the start of bike to work month.”

“Can I have my bike rebate? I commute 52 Km so I’m expecting something pretty big?” *my personal favorite*

“Sorry I am not running a deficit like my country to buy those expensive cars.”

“Why cut the transit credit. Explain.”

“He’s says while standing in front of car paid for by tax payers….”

“Yep, I know what happens to my lithium battery in my cell phone in cold weather. We do have winter here “Mr Garneau” good luck with yours. There’s so much to this…no way to tweet it all. Idiots.”

“Hope to see you in November selling cars.”

“I thought he was a bit smarter than Trudeau but I guess not.”

…etc.

————————————————————–

Suffice to say, the Millennial rabble was less than enthused. If that’s who Justin is expecting to vote him back in come October, good luck.

There are some gifted every day comedians out there in Canada that manage to make light of contentious and serious issues…my omage today to them.

#91 Communist Conservatives on 05.01.19 at 9:46 pm

Communist conservatives means communism for the rich. banks want taxpayers to back stop risky/ fraudulent mortgages. In this case government involvement is ok. Same with mortgage brokers. Government pumping RE using taxpayer money is ok. Its funny these communist conservatives don’t like it when government protects taxpayers money from their greedy communist conservatives hands. Prove me wrong. All you communist conservatives (bankers, mortgage brokers, realtors) know I am 100% right. I LIKE free and open markets . Why dont you so called conservatives demand CMHC shut down??

#92 akashic record on 05.01.19 at 9:50 pm

#38 Ana on 05.01.19 at 6:39 pm

Re: #21 yorkville renter on 05.01.19 at 5:40 pm
Not when you live in 416. – Garth

In other news, water is wet…
————————————————————

You know the world exists beyond 416 right?

Of course. And there is a dark side of the Moon.

But some might want 416 to be like that other existing worlds. Who is to decide and say 416 can’t be – and why not?

#93 Dolce Vita on 05.01.19 at 9:55 pm

#23 yvr_lurker

Well said.

You to Garth.

———————————————

Buonanotte e Ciao d'[*]Italia.

*Come visit us this Summer, we need your hard earned Middle Class tax savings since our GDP has gone to dung (the 1%’s are welcome too). Our coffee and food are not bad and we have the odd attraction to keep you busy.

#94 Al on 05.01.19 at 9:58 pm

If they’re looking for some money, there’s 80 billion of almost untaxed money just in Barbados Bill…oh that’s right, Mourneau Sheppell has a subsiduary there (for reasons completely unrelated to favorable taxation treaties and rates of course.). How’s the BEPS coming along Bill? Married to the heiress of a transnational corporation that benefits from the status quo, must be a dicey dance at those BEPS meetings. I guess we shouldn’t be surprised that nothing happened on these fronts the last 4 years.

#95 not 1st on 05.01.19 at 10:04 pm

I watched that little clip of OLeary. Boy he tells it like it is. Canadians are the richest people on the planet bar none in terms of resources assets per capita. And yet we are the most indebted per capita as well and we cant get sh*t done so investment is down a blistering 52%. $40M a day in lost revenue from the heavy differential because we cant get a simple pipeline built. Sovereign wealth funds with hundreds of trillions totally avoiding our country. And china, a country with an insatiable appetite for raw resources has cut us out now is solely working on an exclusive deal with trump and we don’t even have an ambassador. Everybody is investing in Texas which has the same GDP as Canada.

This is all $100% on Trudeau and his cabinet full of incompetents. He will destroy Canada with another term.

#96 Frank on 05.01.19 at 10:05 pm

Can someone explain why the prices of Montreal real estate are immune to the stress test…. the market is on fire

Montreal sales were up a blistering 1% in March, and prices have flatlined. Some fire. – Garth

#97 Mattl on 05.01.19 at 10:05 pm

SteveM – amen. My story is similar, will take 30 years to save, just maybe, as much saved for retirement as the equivalent of two teachers pensions.

One car family – an 8 yo pickup, used boat, a nice trip every 3-4 years, rural house built in 1991 w laminate counter tops albeit on a nice property. And a 6 figure tax bill. My tax obligation is 2.5 times my accelerated annual mortgage payments. 4 times my annual rrsp limit lol.

And guess what, we will get squeezed again. The libs won’t have to guts to go after corp tax or pensions so high income wage slaves will take another hit. We have no shared voice or lobby group, the gift that keeps on giving.

We would already be in the US but wifey will not go so here’s to 2mm in tax over the next 20 years to hopefully save 3mm for retirement, which at a 4% drawdown will gross me roughly what my annual tax bill is today. Richy rich for sure.

Not looking for sympathy but come on, no one would look at how we live and think we are even close to being rich.

#98 akashic record on 05.01.19 at 10:06 pm

We will be in good hands when Chrystia takes the PM job.

I don’t want that hand anywhere near around me.

#99 Dolce Vita on 05.01.19 at 10:14 pm

#45 Too Big To Fail

Newsflash in case you missed it…

Canadian GDP over the Sept. 2018 to Feb. 2019 six month period, annualized, was a bone crushing:

0.38%

Consumer Spending is nearing Great Recession levels, Canadians are on average in debt to the gills, retrenching and paying off that mountain of debt (evidence: reduced Consumer Spending = 60% of Cdn GDP).

BoC Poloz says today that if the above “headwinds” subside (understatement of the decade), he will raise interest rates.

Removing the Stress Test is not going to change any of the above nor conducive to boost home sales/prices even if Gov steps in.

Nothing more than desperate cries for help.

No one is listening (search Twitter on your assertions, plenty of posts, ne’er a Reply of interest let alone support).

#100 yvr_lurker on 05.01.19 at 10:29 pm

#75 meslippery

—–
Interesting to get a critique from someone more left wing than me. I consider myself left of center, but can’t see myself wearing a yellow vest anytime soon. Let me clarify my statement.

There are many people who are high income earners at the borderline of the 1% in terms of annual income who made through their own initiative (doctors, dentists, senior academics, inventors, senior pilots, lawyers etc…), who pay through the nose in income taxes. They have earned their way through their own effort and dedication . Many of these people are generally apolitical; they don’t control agendas, or decide on Gov’t policies, or run corporations deciding on the future of employees.They are not part of the 1% that I think of as the leisure set who have inherited wealth, trust funds set up by past generations, and others who were already at the finish line when others were just starting out (like our idiot prime minister). This lot didn’t need to do much to succeed, just stay the course and collect your monthly cheque. Of course these two sets of people are not disjoint entities, but I don’t think they share the same mindset. I have friends in both groups, but I know which set I generally have more affinity for. The global elites in the absolute top of the 1% bracket are generally the ones running the major corporations, lobbying those of the leisure set to seek favorable Gov’t policies, and generally speaking screwing over all those on the lower rungs by outsourcing their jobs, seeking more and more concessions from workers, all the while setting up offshore accounts to shelter coroporate profits from taxes as well as their accumulated (and often ill-begotten) wealth. This latter group represents, in my view, the true evils of capitalism and globalization. In my lifetime I don’t think there will ever be policies put into place to curb their egregious behavior as they are so intertwined with the Gov’t and their lobbyists (SNC people, etc…). They have permanent immunity.

#101 AGuyInVancouver on 05.01.19 at 10:44 pm

#81 Drill Baby Drill on 05.01.19 at 9:11 pm
Jason Kenney is a future PM
_ _ _
Will he be able to hold state functions in his mum’s basement?

#102 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 05.01.19 at 10:51 pm

Happy Doctors’ Day, Toronturds and GTAholes!

https://www.oma.org/sections/news-events/news-room/all-news-releases/doctors-day-celebrates-the-31500-ontario-physicians-who-make-a-difference/

Canada’s Loser Province Ontario has 31,500 doctors.

And 70,000 realtors (50,000+ in Toronto)

Kind of tells you everything you need to know………

#103 Phylis on 05.01.19 at 10:53 pm

The message is obvious. Give up now. Stop saving. Rates are low, keep working you wage donkeys, ha ha ha.
Pay for my children. Ya ya, a few more days and you owe %5 more!

#104 georgist on 05.01.19 at 11:03 pm

As a top rate tax payer I’m more than happy to contribute into a joint pot for those less fortunate than myself. I’m happy to shoulder the burden on hospitals. On schools. Leisure facilities. Libraries. On and on.

I am *not* happy to subsidise the lifestyle of the lazy rentiers: the landlords. Who contribute nothing.

Trudeau should lower income tax and raise land taxes. Smoke out the rentiers. If they still need more after this, fine, I’ll pay more. But remove them first.

#105 not 1st on 05.01.19 at 11:04 pm

#101 AGuyInVancouver on 05.01.19 at 10:44 pm

_ _ _
Will he be able to hold state functions in his mum’s basement?
——

Nope but he will sure be able to monitor Vancouver’s gas prices. Hows that carbon free future looking?

#106 Ponzius Pilatus on 05.01.19 at 11:09 pm

#29 Bob Dog on 05.01.19 at 6:04 pm
Back in 1999 we had something called the “Great Canadian Brain Drain”. US companies were paying 50% more for doing the same work and paying in US dollars that were worth $1.61 Canadian. I still have loads of US dollars from my time in Seattle.

Perhaps it would be useful to dedicate a blog day to inform young Canadians about their options outside of Canada. The NAFTA T1 (non immigrant visa) is still the best vehicle for paying 0% tax to the corrupt puppet regime in Ottawa.

Anyone trying to plan for a retirement should consider the USA for 5 or 10 years. If you work 10 years in the US you are entitled to a US pension as well as the Canadian pension. The US version pays way more.

Seriously on a day to day basis, you can’t tell the difference between living in the USA or Canada. Just avoid politics and religion and you will thoroughly enjoy your stay there. And then there’s In & Out Burger.

Seems its still an issue.

https://www.theglobeandmail.com/business/technology/article-canada-facing-brain-drain-as-young-tech-talent-leaves-for-silicon/
———-
But alas,
According to The Economist, Canada is still a much better place to live.
For the average guy or girl.

#107 Evangeline on 05.01.19 at 11:28 pm

#48

It was a capitalistic country that was dabbling in socialism — “affordable housing” politics which forced the banks to throw out their traditional underwriting rules.

#108 Smoking Man on 05.01.19 at 11:30 pm

Disclosure around the corner.

https://www.bloomberg.com/amp/opinion/articles/2019-05-02/ufo-sightings-u-s-military-takes-them-seriously-you-should-too

#109 raisemyrent on 05.01.19 at 11:40 pm

What gets me is that marginal tax rates are there, whether they make sense or not is a bigger pandora’s Box, but benefits are not universal. Not every child is equal. A “poor” child is more equal than a rich child. So the rich parents pay more and get less. Maybe if benefits were universal… hard to carry other people while you work against the social glass ceiling of “upper-middle class”. The (truly) rich, as ever, are not concerned or touched by any of this class/tax war.

#110 yvrmc on 05.01.19 at 11:46 pm

#33 Commy Con , you sound suspiciously like HHCE ….

#111 Gravy Train on 05.01.19 at 11:53 pm

#60 snug smelly lift on 05.01.19 at 7:42 pm
“You know plastic is a chemical by-product of the oil refining process right? Right? My God.” You’ve lost me again! The issue for protesters isn’t the manufacture of petrochemical products (like plastics); it’s the burning of fossil fuels (like oil and gas) with the resultant release of carbon into the atmosphere. Further, not all plastics are derived from petrochemicals; there are also bioplastics. Try to keep up! :)
https://en.m.wikipedia.org/wiki/Plastic
https://en.m.wikipedia.org/wiki/Bioplastic
https://en.m.wikipedia.org/wiki/Biodegradable_plastic

#112 Smartalox on 05.02.19 at 12:10 am

Let’s be clear on THIS:

The only people who are hurt by B20 are those that have Real Estate, and real estate related services to SELL, particularly those compensated as a percentage of selling prices.

Buyers are rewarded by B20 with lower level prices, and easier entry into the market.

#113 Basil Fawlty on 05.02.19 at 12:16 am

Funny, corporate taxes were reduced from 28% in 2000, down to 15% by 2012. However, the option of corporate taxes being increased, even by 1%, is never discussed.

#114 crowdedelevatorfartz on 05.02.19 at 12:21 am

@#90 Dolce
“So, innocuous spacefaring Marc Garneau….”

++++++

Mssr Garneau and Mme Payette have drank from the Liberal cup.
Govt jobs and eventual Senate seats for both I’m sure.
Ahhh the good life and then retirement.
But dont they look divine.
What does selling one’s soul go for these days?
Apparently an inflation indexed govt pension?

Mean while Chris Hadfield keeps beavering away on the tour/lecture circuit.
What’s the name of Canada’s latest french astronaut soon to be politician?
Aliens from outer space must think Canada was 90 % francophone by our representation of orbiting space heroes.
They all seem to be from Quebec during the Liberal reign of error.
However.
The Canadian flag on the space suit must irk the hell out of the Quebec Seperatists.

:)

#115 meslippery on 05.02.19 at 12:45 am

#100 yvr_lurker on 05.01.19 at 10:29 pm
————–
Lets find away for us to do the work here in Canada.
We used make radios and fridges, clothes and in Oshawa
cars. Sure life was not without problems but workers collected Dividends (wages) from business not Government like now.

#116 dharma bum on 05.02.19 at 1:05 am

Why worry about any of this?

I can tell you what’s going to happen:
The rich will get richer.
The poor will get poorer.
The stupid will get dumber.
The obese will get fatter.
The ugly will get uglier.

It has always been the way.
It will always be the way.

Idiot politicians who try to reinvent the wheel will come and go, endlessly, like the changing of the seasons. Their endeavours are merely an exercise in futility.

#117 DON on 05.02.19 at 1:07 am

#68 palebird on 05.01.19 at 8:03 pm

Funny how nobody has commented on the BC/Alberta war regarding gas and oil. Quite amusing to hear Horgan crying about gas prices in the lower mainland and blaming Kenney. Poor boy, guess he doesn’t like getting beaten by his own beating stick. Who is going to save him???
****************

There is this thing called the internet out there and you don’t have to wait to hear from Kenny or Horgan.

Kenny acclaimed the law and that is what he said he would do – to win an election. Hard working Albertans and British Columbians expect him to return all the high paying jobs that we lost in the oil fields. Hmmm.

He can’t enact the law without pissing off big oil and their customers. The fact that he already said he would use it as a vendetta against another Province won’t bold well in court.

I wish people would read and approach thing in a sensible manner.

#118 DON on 05.02.19 at 1:11 am

#66 Blacksheep on 05.01.19 at 8:00 pm

Too Big # 44,


This sample comment just displays how out of touch with the situation some folks are here. I continue to come here to learn from Garth and others more incite full than myself (many) even though it became obvious to me a long time ago, this forum suffers from extreme group think as people simply seek like minded parties to confirm their biases, accurate or not…this is why I now post very little.

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

Ummm…if I remember correctly you didn’t think housing would be in the condition it is now in. Prices were supposed to rise forever. They have been falling for the past year or so…that is why you disappeared.

Can’t pull the wool over everyone’s eyes. How can prices rise forever? Just answer that simple question in detail.

#119 meslippery on 05.02.19 at 1:15 am

#100 yvr_lurker

doctors, dentists, senior academics, inventors, senior pilots, lawyers etc…), who pay through the nose in income taxes. They have earned their way through their own effort and dedication
————-
Yes I get it but we need the line worker with good benefits to pay for it all. Or you could say that CEO should make rock star wages cause he sent your job to ………….?

#120 Evangeline on 05.02.19 at 1:44 am

#99 “BoC Poloz says today that if the above “headwinds” subside (understatement of the decade), he will raise interest rates.”

I wonder what he thinks about President Trump’s belief that a recovering economy needs time to get reestablished, and that raising rates too soon causes reversion.

#121 Smoking Man on 05.02.19 at 1:49 am

Why I ran away from Canada.

DM was groving at Davos and I called him up on it.
The sooner he reads my book the longer he will have a job.

But I’m still unforgiven. Dont want to be. Free speech is everything

https://youtu.be/mTwjUE60HG4

#122 PeterfromCalgary on 05.02.19 at 2:11 am

They will gut the stress test because doing so will distract from SNC-Lavalin.

#123 DON on 05.02.19 at 2:14 am

#90 Dolce Vita on 05.01.19 at 9:44 pm

Not sure I am with you on Trudeau yet! Although he should fire his current strategists.

– Scheer is too close to Harper. This could hurt him the memory of mean Stevie is still around. Scheer is untested, devilish smirk and now seen aligning with big oil and the nutty right.

+Trudeau is all about human caused climate change and millennials as well as others agree to some extent (maybe not in Alberta).

– SNC that was sooo last Month, unless of course the ejected Ministers can make a stink. (voter short memory…hell most humans have short memories especially regarding politics).

At this point Trudeau is his own worst enemy. The Polls have Scheer at 36% and Trudeau at 30%. Then again the polls forecast a green gov in PEI (close) and that the NDP were within 10 – 15% of UCP in Alberta.

Voter memories are short and how many were really paying attention to SNC? The summer can feel like a lifetime – still 6mths to go till the fall election. If Trudeau offers middle class goodies that’s all that matters to people. Mortgage sharing with the gov, taxing the high earners, erratic weather (perception) etc.

I would put Trudeau at a minority gov at this point in time (of course that could change by next week if he continues to stumble). He could go back to majority or loose it all. One thing going in his favour, he’s opposed to Trump and that may work in his favour come election time. And Harper met with Trump. How much money did the Liberals give the media.

That being said a tv ad just came on depicting Trudeau with Trump saying that Trudeau can’t be trusted. Hmmm! The election has started.

I am sure that return ad will depict Scheer, Trump, and Harper…

#124 Smoking Man on 05.02.19 at 2:23 am

Why do we need to go to church to learn we can do it.
Second you think you cant it’s over for you.

It’s a shit load of work. Going to to events , taking to people , pledging your loyalty.

I just want to get shit faced in my back yard and debate God in person.

I’m the only real man around in 2019, and God is in no hurry to debate me face to face. I’ve abused my body for that epic post.

Thinking he’s a liberal. No soup for you.

#125 Dolce Vita on 05.02.19 at 3:29 am

Oh my God. Heart. Skip a beat, or 2.

This early morning headline in Italia (Istat is their StatCan):

“Istat, first quarter GDP + 0.2%: Italy out of recession”

Of course, all the Populists falling over themselves taking credit…

GOOD NEWS for Canada, Istat said the foreign demand component up, meaning Exports. Maybe the rest of the World GDP not slowing down as many claim is happening?

Still, bring your big Canadian tourist dollars to Italia this Summer since we want to run that number up (just in case).

As usual in Chrome, right click Translate to English (this time they did a not bad job of translating):

http://www.rainews.it/dl/rainews/articoli/Istat-Pil-primo-trimestre-Italia-fuori-da-recessione-247f1f2f-ef84-4d16-a682-9b8d278db232.html?refresh_ce

———————————————

And a very good Buona Mattina d’Italia it is.

#126 The Real Mark on 05.02.19 at 4:36 am

“#25 Peak on 05.01.19 at 5:48 pm
.
I guess you finally retired your fantasy opinion?”

Wow rude.. Nothing ‘fantasy’ about pointing out the fact that Vancouver/Toronto peaked in 2013 on individual identical properties. And that alleged “price gains” since have been entirely mix-driven.

#127 Figus Makum on 05.02.19 at 4:42 am

#65 not 1st

No need to worry about Freeland becoming PM. Comrade Putin won’t allow it.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://globalnews.ca/news/3177689/why-canadas-top-diplomat-chrystia-freeland-banned-from-russia/&ved=2ahUKEwjYxtDet_zhAhVJmlkKHZ3GCOkQFjAAegQIAxAB&usg=AOvVaw1QanlyR5AGtL_vS1140gHW

#128 Howard on 05.02.19 at 4:56 am

I’m sure Garth will have a post on this, but Greater Vancouver April report is out.

https://www.rebgv.org/content/dam/rebgv_org_content/pdfs/monthly-stats-packages/REBGV-Stats-Pkg-April-2019.pdf

Annoying thing is that unlike the Toronto reports, which give both average and benchmark (frankennumber) stats, the Vancouver report only gives the realtor benchmark stats.

Using the benchmarks :
detached -11% yoy
townhomes -7.5% yoy
condos -6.9% yoy

#129 Under the radar on 05.02.19 at 6:12 am

104 -lazy landlords. Rental income taxed at highest rate . Rent increases capped. Standardized government leases. Costs of maintaining units in decent repair can be thousands of dollars per unit not to mention escalating taxes and utility’s far in excess of permitted increases. Costs of maintaining buildings infrastructure is tremendously expensive , do you want a list of the trades that are at my building , making repairs , servicing or improving . Not to mention dealing with people’s problems and neglect of their units . I have some news , owning or managing purpose built multi unit rental housing as a serious landlord is like every other job , not easy.

#130 ArcticOutback on 05.02.19 at 6:24 am

RE: #39 Steve M & Mattl –

In total agreement with Steve M.

The problem with social programs like the CCB and RESP Grant’s is that they are both purely based on income, not wealth.

Canada is a great place to live nowadays for folks who come from wealthy backgrounds and have inheritences trust funds. These folks can live like a rock star of they have a job with an ok income, full benefits & pension and plenty of vacation time….add in the use of a family owned vacation property and it is a classic chardonnay socialiy dream.

#131 Howard on 05.02.19 at 6:42 am

#66 Blacksheep on 05.01.19 at 8:00 pm

Oh do get over yourself.

As DON mentions above, the reason you stopped coming here is because BC real estate has tanked. As soon as prices stabilize or rise you’ll be back to your previous posting frequency. And then when they tank again you’ll vanish without a trace.

#132 crowdedelevatorfartz on 05.02.19 at 7:43 am

@#116 dharma
“Idiot politicians who try to reinvent the wheel will come and go, endlessly, like the changing of the seasons. Their endeavours are merely an exercise in futility.”

++++
It you switch the word “politicians” for “voters”.
I will agree 100%

The politicians have realized they can promise anything and the gullible gobble it up.

We will outlaw bullying with a pink shirt and the stroke of a pen!
Hurray! No one will ever be bullied again!
Good Job!
I feel better .

#133 crowdedelevatorfartz on 05.02.19 at 7:50 am

@#111 Groovy Train.
“The issue for protesters isn’t the manufacture of petrochemical products (like plastics).”
++++

Nice links ( yawn)
Apparently irony isnt your strongest trait.

If oil companies stop pumping , and refining ….your precious goretex jackets , plastic tarps and plastic water bottles….It wont just be fuel that will also go…..

Luddites.
They arent getting any smarter.
Enjoy shovelling ‘road apples’ from the horse drawn carriage propulsion sytem on your front street in the hot summer.

#134 Alistair McLaughlin on 05.02.19 at 8:34 am

#52 Chris People who have 3 or more children and who make less than $200k per year are actually stealing from this country.

Some day, one of those kids might be changing your diaper in the personal care home. If not them, then someone else’s kids. A job no “highly skilled immigrant”, or highly skilled anyone, will do. I agree, we should all be highly skilled. Nobody should suffer the indignity of having to look after your sorry incontinent butt in old age when you no longer have control of your bowels.

In case that was too cryptic for you, I’ll spell it out. A
country cannot survive without a large segment of the population willing to do the dirty work, the grunt labour. Jobs that you no doubt consider yourself far above. Not everyone can be “highly skilled”. And how do you know Emily’s kids won’t grow up to be extremely productive, high-earning, “highly skilled” individuals, paying high taxes to support your aging and failing carcass? You don’t. While Emily is allegedly “stealing from the country”, you’re stealing oxygen from all of us.

#135 PA on 05.02.19 at 8:41 am

#39 Steve M.
#97 Mattl
#130 ArcticOutback

Total agreement.

“…Whenever I hear Mr. Privilege himself talking about strengthening the middle class it makes me want to puke. How does slashing a modest TFSA limit help the middle class? How does punishing progress to earn more help the middle class? How does a Carbon Tax on everything help the middle class?..”

I don’t know about puking, but I do have a visceral reaction that is extremely negative. Canada is in a self-flagellation mode of punishing those who have work extremely hard to progress their lot in life and reward mediocrity.

#136 Adrian on 05.02.19 at 8:42 am

I’m disappointed in you, Garth. Are you seeking honest debate, or not? I’ve submitted the link to my quote twice now, and you haven’t posted it. That’s dishonest and you should be ashamed.

Too bad. Totally irrelevant to this blog. – Garth

#137 JB on 05.02.19 at 9:15 am

#121 Smoking Man on 05.02.19 at 1:49 am

Why I ran away from Canada.

DM was groving at Davos and I called him up on it.
The sooner he reads my book the longer he will have a job.

But I’m still unforgiven. Dont want to be. Free speech is everything

https://youtu.be/mTwjUE60HG4
…………………………………………………………………..
Your hyperarousal response to leaving Canada was if I recall due to a lack of a job and losing your home!

#138 JB on 05.02.19 at 9:39 am

#135 PA on 05.02.19 at 8:41 am

#39 Steve M.
#97 Mattl
#130 ArcticOutback

Total agreement.

“…Whenever I hear Mr. Privilege himself talking about strengthening the middle class it makes me want to puke. How does slashing a modest TFSA limit help the middle class? How does punishing progress to earn more help the middle class? How does a Carbon Tax on everything help the middle class?..”

I don’t know about puking, but I do have a visceral reaction that is extremely negative. Canada is in a self-flagellation mode of punishing those who have work extremely hard to progress their lot in life and reward mediocrity.
…………………………………………………………………….
Mr Privilege has never really worked in the Canadian workforce other than his tenure at Vancouver West Point Grey Academy. There he taught drama, French, English, social studies, and math and at Sir Winston Churchill Secondary School. Oh I forgot he was a minor actor in some CBC TV movie. So he is a civil employee! If this guy was in my industry he wouldn’t last 8 hours. He would either be fired or quit. He doesn’t get it how the real world works. This guy has been privileged all of his life jet-setting around the world with his father. I sure as hell wished my father could leave me a couple of million dollars in his will. He has absolutely no comprehension of what the average Johnny Canuck has to do in order to be successful in life. Anyway the best thing for all of us is to VOTE in October and then this guy will hopefully be unemployed. Then he can go back to his acting career as a clown dressed in Indian garb proclaiming his peoplekind bullshit.

#139 Last of the Baby Boomers on 05.02.19 at 9:53 am

#52 Chris
#134 Alistair

Well said Alistair. The grunt workers getting paid minimum wage are the wind beneath everyones wings. Since most 1% refuse to pay the “grunt workers” a living wage, society on the whole must make up a portion of this shortfall. Otherwise where are the workers to support you 1%’ers. If everyone paid their workers a living wage, we could likely reduce these incentives paid by society as a whole.

#140 John Tory on 05.02.19 at 9:58 am

#102 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 05.01.19 at 10:51 pm

“Happy Doctors’ Day, Toronturds and GTAholes!”

And a good morning to you as well! Your maniacal rages are a gas! Keep it up bud, you crack me up.

#141 Landlord Larry on 05.02.19 at 10:02 am

#104 Georgist

“I am *not* happy to subsidise the lifestyle of the lazy rentiers: the landlords. Who contribute nothing.”

So someone who saves and invests in rental property is a lazy rentier? They are not contributing housing for the blog dogs who want to rent instead of own? Please elaborate on your accusations…

#142 Sold Out on 05.02.19 at 10:07 am

I love how the cons think that if everyone would just shape up and go to university, we wouldn’t have all these deadbeats sucking the government, (and by proxy all the “high income” types), dry.

Everyone who can already goes to uni, but all that does is dilute the value of education. STEM degrees only, you say? Lots of engineers out of work. Lawyers are rapidly being replaced by AI and CanLII. Gov’ts would rather fill medical residencies with pay-for-access, foreign students.

Grad school is the new minimum, but you’ll be starting out at $21/hr. Society is approaching a tipping point of vanishing returns for personal effort and crushing debt.

Large numbers of under-employed, basement-dwelling, debt-laden, young people(but men, especially) is a recipe for insurrection. Pipelines and a change in gov’t will not change this.

#143 IHCTD9 on 05.02.19 at 10:08 am

I’m impressed with Emily and Hubs – although they probably do not live in the GTA or GRVD. House will be paid off by 40, 7 figure portfolio likely, stay at home Mom to STB 4 kids. Nice! You two must have started early – time is a powerful weapon for saving and staying/getting off the treadmill.

One suggestion I might add is to get divorced from hubs – just in the meaningless legal sense. Life can carry on as per usual otherwise. This will cause your CCB payments to skyrocket to around $30,000.00 per year. You’ll be getting a nice CCB payment for a loong time. Ms. IHCTD9 will actually be 51 when our CCB payments finally stop showing up.

Don’t worry, no government agents will be worrying about if you and hubs are gaming the system – you can take that to the bank right alongside your CCB cheque. :)

Otherwise carry on as you are, and get yourself some shades because you should be wearing some.

You have counseled fraud. Shame. – Garth

#144 Eks dee Siple on 05.02.19 at 10:13 am

#34 Adrian… the flaw in your thesis is that the ‘debt’ is not owed to ourselves, but to private banking interests. Or more specifically, the interest on that debt, which was not incurred with any GDP output. The elephant in the room that no one dares speak of. The cause of all of our problems. The disease at the heart of true capitalism.

#145 Linda on 05.02.19 at 10:20 am

#52 ‘Chris’ – I don’t think you paid attention to what E wrote. She is a stay at home mom. No additional child care required – her contribution of time/energy costs her, not society at large. Whether she stays at home or not, the child care benefit would still be available. Given the amount it has grown to, those funds are more than sufficient for tays, clothing & after school extracurricular programs/activities.

As for college tuition, seems like E & spouse have a good grasp on how to manage their finances. Once the mortgage is paid off, would be easy to direct $ to RESP’s for each child sufficient to ensure they receive the full amount of the matching government benefit for doing so. Whether the children go to college/university is up to them. They might do trade school instead & frankly that could be the smart way to go.

Finally, have you never paid attention to demographics? The world is aging. The only reason Canada’s population has increased is due to immigration. Lots of other countries are in the same position. Japan for instance expects its population to shrink from well over 100 million to around 89 million within the next 30 years. This despite numerous government programs to encourage people to have more children. However, they do not embrace immigration & thus the anticipated population drop.

Over population is a concern. But if people stopped having babies, it wouldn’t take very long before extinction would be a very real possibility. Think about it.

#146 IHCTD9 on 05.02.19 at 10:46 am

#97 Mattl on 05.01.19 at 10:05 pm

…We would already be in the US but wifey will not go so here’s to 2mm in tax over the next 20 years
____

Just tell wifey that you are now going to work until you hit the top bracket, and then take the rest of the year off. Because you’re sick of giving 53% of every dollar past that point to the gov. Tell her there’s more value in quality of life increases via staying home than there is working for less than half price.

See what happens…

#147 not 1st on 05.02.19 at 11:04 am

You have counseled fraud. Shame. – Garth
—-

There is tax avoidance and now tax aversion. I think its more widespread than you think. I don’t see CRA heading off to the Caymans for a little deeper digging.

People will do what they have to when desperate. And CRA will never jail someone who has paid tax in the past because you are little golden goose and they want you to keep laying eggs. People who have never paid tax, probably never will for certain reasons.

#148 Howard on 05.02.19 at 11:06 am

#145 Linda on 05.02.19 at 10:20 am
#52 ‘Chris’ – I don’t think you paid attention to what E wrote. She is a stay at home mom. No additional child care required – her contribution of time/energy costs her, not society at large. Whether she stays at home or not, the child care benefit would still be available. Given the amount it has grown to, those funds are more than sufficient for tays, clothing & after school extracurricular programs/activities.

As for college tuition, seems like E & spouse have a good grasp on how to manage their finances. Once the mortgage is paid off, would be easy to direct $ to RESP’s for each child sufficient to ensure they receive the full amount of the matching government benefit for doing so. Whether the children go to college/university is up to them. They might do trade school instead & frankly that could be the smart way to go.

Finally, have you never paid attention to demographics? The world is aging. The only reason Canada’s population has increased is due to immigration. Lots of other countries are in the same position. Japan for instance expects its population to shrink from well over 100 million to around 89 million within the next 30 years. This despite numerous government programs to encourage people to have more children. However, they do not embrace immigration & thus the anticipated population drop.

Over population is a concern. But if people stopped having babies, it wouldn’t take very long before extinction would be a very real possibility. Think about it.

——————————————

That 89 million figure for Japan is fear-mongering nonsense. Japan’s population will fall, but their plan is to stabilize it at around 100 million around 2060 (currently it’s 125 million). They are very gradually raising their fertility and also gradually letting in more guest workers who can eventually apply for citizenship. Japan has crafted an immigration policy all its own, and one that puts the interests of Japanese citizens first. They don’t care if it doesn’t meet the approval of Western leftists. At 100 million they will still have a country that’s overpopulated by world standards but with more breathing room and green space. They are also becoming a world leader in robotics, out of necessity.

It is also untrue that Canada’s population would not be growing without immigration. Population momentum from the high fertility rates of the baby boom era would keep Canada growing even to this day.

Lastly, I don’t know what you’re talking abot re: extinction. Is the fertility rate of the human species going to drop to zero tomorrow?

#149 oh bouy on 05.02.19 at 11:08 am

@#141 Landlord Larry on 05.02.19 at 10:02 am
#104 Georgist

“I am *not* happy to subsidise the lifestyle of the lazy rentiers: the landlords. Who contribute nothing.”

So someone who saves and invests in rental property is a lazy rentier? They are not contributing housing for the blog dogs who want to rent instead of own? Please elaborate on your accusations…

_______________________

straight up envy

#150 oh bouy on 05.02.19 at 11:14 am

@#116 dharma bum on 05.02.19 at 1:05 am

Idiot politicians who try to reinvent the wheel will come and go, endlessly, like the changing of the seasons. Their endeavours are merely an exercise in futility.

_____________________________

kinda like your asinine comments on here.

#151 45north on 05.02.19 at 11:26 am

georgist: I am *not* happy to subsidise the lifestyle of the lazy rentiers: the landlords. Who contribute nothing.
Trudeau should lower income tax and raise land taxes.

it’s spelled subsidize

rentier: a person who lives on income from property or securities

https://www.merriam-webster.com/dictionary/rentier

you’re free to think of them as lazy. I don’t.

as far as Justin Trudeau raising land taxes, he has no such power. It’s strictly a provincial jurisdiction.

#152 Captain Uppa on 05.02.19 at 11:39 am

>>#102 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 05.01.19 at 10:51 pm
Happy Doctors’ Day, Toronturds and GTAholes!>>

I bet you loved and lost the woman of your dreams in Toronto and it’s been rage ever since.

#153 PoorEngineer on 05.02.19 at 11:59 am

#134 Alistair McLaughlin on 05.02.19 at 8:34 am

…While Emily is allegedly “stealing from the country”, you’re stealing oxygen from all of us.

————————————————————–

Well said sir.
I think Chris is the one less fortunate with his poor view of life… Can’t stop laughing at this: “Canada cannot support an ever increasing population.” Europe has a population density 10x of Canada, yet people still live fine (The Economic meltdown in Europe has little to do with their population density.)

All developed countries (that try to think ahead) are trying to import as many immigrants as possible. They are seeing their population average age increasing fast in their developed country and recognize that their own people refuse to have children. Most of my co-workers 45 and below do not have children and don’t plan on having any. While, in general, their thinking is fueled by greed (‘I would rather spend my time watching GoT and spend my money on fancy cars and vacations, then spend my time&money on raising children’), their laziness will come back to bite them in the behind once they fall ill and/or old and have nobody to care for them – they actually believe paid care works. Wealth means nothing if you don’t have your health and someone to share it with; sooner or later, your spouse will pass away. Raising a tight family that takes care of each other is what wealth really is. The rest of the world discovered this thousands of years ago; it’s only North Americans that believe wealth is measured in yachts, diamonds, and high pensions.

Yes, I would have more free time if I didn’t have children. But that free time I would fill it with meaningless stuff (like watch TV, do yard work, work overtime, etc). I would much rather spend it with my rascals.

Chris should consider moving to a deserted island in the middle of an ocean. Nobody to take over his job, or pollute the air he breathes and water he drinks. Obviously Chuck Noland was an idiot; he was in heaven and didn’t even realize it.

And Garth, thanks for helping me raise my children. I promise they will work hard and try to keep Canada’s aging infrastructure afloat so your retirement will be as you’ve imagined it.

#154 Uncle Rico on 05.02.19 at 12:09 pm

Emily, you know you can’t afford the fun pack. What, do you think money grows on trees in this family? Take it back! And get some Pampers for you and your brother while you’re at it.

#155 Damifino on 05.02.19 at 12:12 pm

#138 JB

I’m willing to cut T2 a little more slack.

True, he’s way out of his depth and never should have been PM… but is it really all his fault? After all, he was anointed the undisputed King of the Liberals at a time when Canadians were becoming good and sick Harper and finding Mr. Mulcair quite tedious.

Enter a cartload of Millennials, many voting for the first time, and presto! Sunny Ways.

Not much longer, I think. But I could be wrong. Scheer still has plenty of time left to blow it.

#156 Mattl on 05.02.19 at 12:12 pm

#139 Last of the Baby Boomers on 05.02.19 at 9:53 am
#52 Chris
#134 Alistair

Well said Alistair. The grunt workers getting paid minimum wage are the wind beneath everyones wings. Since most 1% refuse to pay the “grunt workers” a living wage, society on the whole must make up a portion of this shortfall. Otherwise where are the workers to support you 1%’ers. If everyone paid their workers a living wage, we could likely reduce these incentives paid by society as a whole.

———————————————————–

You been living under a rock the past 15 years? Unemployment is close to record lows. 75% of workers make more than 15 bucks an hour. A large percentage under that number are part time workers or kids starting out. My first job was at a golf cart track 25 years ago making 5.35 an hour. Same worker today, at 15, would earn 14 bucks. The grunt workers on a landscaping site get paid 17-20 bucks an hour to shovel dirt.

There is tons of well paid work today + Canada has free healthcare + if you have kids, bonus, here is an extra 500-1500 a month. 70% of Canadians own homes, 40% have no mortgage.

We’ve had it so good, and easy, for so long that we’ve lost sight of what real struggle looks like.

#157 TS on 05.02.19 at 12:15 pm

4 kids… 1 income of $76k… paid off home before 40 and saving for retirement…

Does this magical animal actually exist?!?!!?!!

Not when you live in 416. – Garth

———————————-

You guys need to get out more. Median family income for the GTA is 78k. You guys think these people are unicorns but it is literally half of the population.

#158 Mattl on 05.02.19 at 12:20 pm

#146 IHCTD9 on 05.02.19 at 10:46 am
#97 Mattl on 05.01.19 at 10:05 pm

…We would already be in the US but wifey will not go so here’s to 2mm in tax over the next 20 years
____

Just tell wifey that you are now going to work until you hit the top bracket, and then take the rest of the year off. Because you’re sick of giving 53% of every dollar past that point to the gov. Tell her there’s more value in quality of life increases via staying home than there is working for less than half price.

See what happens…

———————————————————

Ya, no. She is a big reason my career has taken off, and her staying home allows me to travel and earn. A good wife that can button down a household is priceless.

And dialing back work is the losers answer to higher taxes, at least for wage slaves like me. There is no scenario whereby I just work less, the expectation is always that we continue to grow revenue, job is dependent on it. So it’s an all or nothing proposition.

We do have options; look for contract work and incorporate, or go to the US. I can live with taxes where they are today but we are near a breaking point.

#159 IHCTD9 on 05.02.19 at 12:26 pm

#145 Linda on 05.02.19 at 10:20 am

Over population is a concern. But if people stopped having babies, it wouldn’t take very long before extinction would be a very real possibility. Think about it.
_____

It’s easy to work back to get a metal perspective with which to gauge what various fertility rates would do over what time period.

Imagine that the upcoming Gen Z’s did not reproduce the world over and the global fertility rate became zero. That would mean in about 70 years from the time GenZ hit puberty, there would be almost no one alive left on the planet. Only the most elderly of gen Z’s, and the few children of the Millennials would remain. So few, that modern civilization would have ceased to exist well before then.

Add another 20-30 years to that and all humans would essentially be totally extinct.

So worst case scenario is 7.5 Billion to zero in about 90-100 years if everyone had no kids.

Look at S Korea – their government claims that South Koreans will cease to exist come 2750 if their current fertility rate of just over 1 continues (even factoring in immigration). That doesn’t sound too urgent until you realize how fast the initial drop of roughly halving your population every generation is.

Not factoring in immigration, S Korea would only take 65 years to cut it’s population right in half. It would take another 185 years to go from their current 50 million all the way down to 1 million. From 1 million, it is a long 250 year ride down to zero.

Here’s a nice calculator to play with:

http://ilkkah.com/population-calculator/#human_age=80&title=&birth_rate=1.6&birth_age=30&immigration=0&start_pop=38000000&timespan=1000&start_year=2013&pyramid=flat

#160 Blacksheep on 05.02.19 at 12:42 pm

Don # 85,

“Where are job losses? They are slowly materializing, realtors and mortgage brokers first and as things slow builders start to lay off, then trades, then home depot etc. Hootsuite (Van) just laid off 100+ citing something lame about the internet social blah blah.”
_________________________
Don, I don’t think your understanding my view point.

This is not about RE in Van. This is not about whether or not, home values are to high in Van.
This is not about the fact Van rents are outrageous.
This is not about the fact many here still believe, home values will only be supported by X times annual earnings in Van. This is not about the fact Canadian dollar (and RE) has already lost 30% of its global market value in the past decade.

This is about one, single, thing:

Voter appeasement….

How long before Horgan caves to pressure from the industry involved in the 20+ % of GDP/employment Van RE represents, not to mention pissed off voters that have equity to protect and mortgages to pay?

When a report came out recently on how shitty Van RE sales are currently, the cartel pointed their finger straight at the NDP, blaming them for the coming made in Van recession. Don’t remeber the NDP rep that responded, but her language (paraphrasing)
went something like this:

“We are watching the markets closely and cannot adjust policy based on a single data point. We have our own sources and will continue to review the situation going forward”

When politicians get in trouble:

Trudeau + SNC = Policy capitulation.

Horgan + pipelines + $ 1.80 liter fuel + job losses =
policy capitulation.

I learned this the hard way through personal experience. The system will protect itself.
_____________________
Don # 118,

Ummm…if I remember correctly you didn’t think housing would be in the condition it is now in. Prices were supposed to rise forever. They have been falling for the past year or so…that is why you disappeared.

Can’t pull the wool over everyone’s eyes. How can prices rise forever? Just answer that simple question in detail.”
_____________________
Never disappeared as I’m addicted to this blog like many others. Show me were I ever said anything remotely like:

“Prices were supposed to rise forever”

And you’ll never read my name here agian.

As for RE and the:

“condition it’s in now”

Yes, a 5 million $ house in west Van may now be worth 4 mill. or a 1.8 million $ house on East Van, may now be worth 1.3, but I and most can’t afford that shit. People come out to the Valley to get away from the insane prices and buy a home where you can still get a patch of dirt without giving up your first born.

I’m in the valley and own a 60 year house that recently became subdividedable (yes, dumb luck)
so my dirt is has a pretty stable base value.

You state:

“Can’t pull the wool over everyone’s eyes.”

Have you even considered, I’m not trying to deceive anyone? I’m a tradesmen, not realtor. I write what I believe to be fact in my opinion. Some people may think I’m a fool and I’m totally ok with that.

#161 JB on 05.02.19 at 12:46 pm

#95 not 1st on 05.01.19 at 10:04 pm

I watched that little clip of OLeary. Boy he tells it like it is. Canadians are the richest people on the planet bar none in terms of resources assets per capita. And yet we are the most indebted per capita as well and we cant get sh*t done so investment is down a blistering 52%. $40M a day in lost revenue from the heavy differential because we cant get a simple pipeline built. Sovereign wealth funds with hundreds of trillions totally avoiding our country. And Cina, a country with an insatiable appetite for raw resources has cut us out now is solely working on an exclusive deal with trump and we don’t even have an ambassador. Everybody is investing in Texas which has the same GDP as Canada.

This is all $100% on Trudeau and his cabinet full of incompetents. He will destroy Canada with another term.
…………………………………………………………………..
China is a piece of $hit, their communist party indoctrinated business leaders work hand in hand with the leadership to control everything. Right now our farmers are paying the price with Canola and pork on the import exclusion list due to some creative gibberish from the Chinese stating we have bugs, disease and or both. Sure China we have bugs and diseases, have you seen the crap that comes out of China. We have no leverage on China, unless we wanted to go all in and eliminate all Huawei activities in Canada, including their funding in our universities. That is about as big as we can hit them. The problem is we need them they don’t need us. Mr Socks wanted to cozy up to them and show us his Big Boy socks in December of 2017 when they showed him the door. Chinese authorities had no wish to obligate their government to Prime Minister Justin Trudeau’s much-publicized push on non-trade issues, including a promise to democracy, the rule of law and the development of women’s rights in Chinese society. In other words S.T.F.U. Justin and go home was pretty much the sendoff he received from President Xi Jinping. Trudeau unfortunately learned during his disastrous trade talks in China, it’s also imperious to fully realize that any successful trade deals must persuasively take into interpretation the important views and ultimate goals of a potential trade partner. Now we have a piece of $hit for a government who has basically started the disenfranchisement with the Chinese, escalated it, got caught in the Huawei fiasco where the US basically has thrown Canada under the bus.
BTW USA thanks for having the big balls to come and take Meng Wanzhou off our hands while the Chinese punish us for your request. Just sitting on the sidelines waiting for your psychotic leader to cut a trade deal with the Chinese and tell us to let her go. For all of you that have a Huawei phone good luck with the buggy software.

#162 Tater on 05.02.19 at 12:49 pm

#157 TS on 05.02.19 at 12:15 pm
4 kids… 1 income of $76k… paid off home before 40 and saving for retirement…

Does this magical animal actually exist?!?!!?!!

Not when you live in 416. – Garth

———————————-

You guys need to get out more. Median family income for the GTA is 78k. You guys think these people are unicorns but it is literally half of the population.
—————————————————————–

Would you happen to have a source for that stat? I’m a big fan of this tool: https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dv-vd/inc-rev/index-eng.cfm

but it is individual income only.

#163 Remembrancer on 05.02.19 at 12:57 pm

#138 JB on 05.02.19 at 9:39 am
So he is a civil employee!
————————-
Ya, and his primary challenger for the job has been working in government (as an MP) since 2004 (4 years longer then JT, so lets call them even or maybe AS is slightly longer as “civil employee”), before that an insurance broker, a waiter and a MP constituency office greeter among other things…

Lets focus on policies and actions and what those mean to Canadians, not the drama teacher memes…

#164 PastThePeak on 05.02.19 at 1:01 pm

#139 Last of the Baby Boomers on 05.02.19 at 9:53 am
#52 Chris
#134 Alistair

Well said Alistair. The grunt workers getting paid minimum wage are the wind beneath everyones wings. Since most 1% refuse to pay the “grunt workers” a living wage, society on the whole must make up a portion of this shortfall. Otherwise where are the workers to support you 1%’ers. If everyone paid their workers a living wage, we could likely reduce these incentives paid by society as a whole.
+++++++++++++++++++++++++++++++++++

It is a good soundbite, but like many things, it can get complicated quickly.

What is a living wage? Is it the ability for a single person to afford to live in downtown Toronto of Vancouver working 37.5 hours a week? How to define it? Is it defined by 1000+ different urban, suburban and rural areas where someone would work across the country?

How to determine which positions to apply it to. Many part-time workers are young persons starting out, from 15 onwards. Should they get $25/hour to serve coffee, or clean a table? Should a person working PT in GTA get the same as rural Ontario?

Where does value come in? A health care working in your example is much more valuable than the person serving me coffee (no offence to my son who has a job at Timmies…). Should there be no difference between a very low skilled job, and one which has skill & value (looking after a patient is not low value).

Is there no personal responsibility? Just give everyone, regardless of their skills, ambition or effort a “living wage”.

You try to paint other people that don’t agree to blindly writing blank cheques as heartless, perhaps you just don’t do much critical thinking…

#165 IHCTD9 on 05.02.19 at 1:05 pm

#143 IHCTD9 on 05.02.19 at 10:08 am

You have counseled fraud. Shame. – Garth

__

I’m just raising some CCB awareness.

Obviously, E will not be divorcing hubs for government handouts, and the chances of them getting away with it if she did – are zero. Lots of “advice” on here is just for laughs.

This comment actually goes back to the real life example of my tax lady’s client who raked in 50K between her ex and the CCB (30K worth) that I posted about a few weeks back.

#166 PastThePeak on 05.02.19 at 1:06 pm

#157 TS on 05.02.19 at 12:15 pm
4 kids… 1 income of $76k… paid off home before 40 and saving for retirement…

Does this magical animal actually exist?!?!!?!!

Not when you live in 416. – Garth

———————————-

You guys need to get out more. Median family income for the GTA is 78k. You guys think these people are unicorns but it is literally half of the population.
+++++++++++++++++++++++++++++++++

His comment refers to the lower cost of living – especially as it pertains to housing – for someone living outside of GTA (not that those in GTA would have higher incomes).

As an example, housing costs in Ottawa are 50%+ less than similar in GTA. It is cheaper still in the small towns around here. You can easily get a nice townhouse for under $300K (you own dirt!) in my suburb of YOW.

#167 Remembrancer on 05.02.19 at 1:08 pm

#158 Mattl on 05.02.19 at 12:20 pm
And dialing back work is the losers answer to higher taxes, at least for wage slaves like me. There is no scenario whereby I just work less, the expectation is always that we continue to grow revenue, job is dependent on it. So it’s an all or nothing proposition.
—————————————–
So true. Sadly, the cadre of commenters here who preach turning off the earning taps at some tax code-keyed level probably aren’t the high achievers – not to say balancing relationship responsibilities and living life for more than the $$ isn’t important, just that there’s a lot more to real motivation and satisfaction than staying below a certain marginal tax rate…

#168 IHCTD9 on 05.02.19 at 1:12 pm

#158 Mattl on 05.02.19 at 12:20 pm

Ya, no. She is a big reason my career has taken off, and her staying home allows me to travel and earn. A good wife that can button down a household is priceless.

And dialing back work is the losers answer to higher taxes, at least for wage slaves like me. There is no scenario whereby I just work less, the expectation is always that we continue to grow revenue, job is dependent on it. So it’s an all or nothing proposition.

We do have options; look for contract work and incorporate, or go to the US. I can live with taxes where they are today but we are near a breaking point.
___

I hear ya, I know there’s no way Ms. IH would move to the USA either – luckily (?) so far we don’t make enough to get the pounding you are getting.

Cross fingers for a change of heart in the government when it comes to revenue generation – surely they must know taxing the crap out of just the “rich” can’t work no?

#169 Remembrancer on 05.02.19 at 1:17 pm

#162 Tater on 05.02.19 at 12:49 pm
#157 TS on 05.02.19 at 12:15 pm
—————————————————
Look for household income, not family income e.g. for starters:

https://www.toronto.ca/wp-content/uploads/2017/10/8f41-2016-Census-Backgrounder-Income.pdf

Concepts like single person households do legitimately impact stats…

#170 Sold Out on 05.02.19 at 1:18 pm

#145 Linda
#156 IHCTD9

Margaret Atwood’s novels are often misclassified as “science fiction”, but may be more correctly identified as speculative fiction.

If birth rates continue to decline in the developed world, and women in developing countries follow suit as their access to education and health care improves, The Handmaid’s Tale starts looking less like science fiction and more like a blue print. Religious fundamentalism is the secret sauce.

#171 IHCTD9 on 05.02.19 at 1:35 pm

#156 Mattl on 05.02.19 at 12:12 pm

You been living under a rock the past 15 years? Unemployment is close to record lows. 75% of workers make more than 15 bucks an hour. A large percentage under that number are part time workers or kids starting out. My first job was at a golf cart track 25 years ago making 5.35 an hour. Same worker today, at 15, would earn 14 bucks. The grunt workers on a landscaping site get paid 17-20 bucks an hour to shovel dirt.

There is tons of well paid work today + Canada has free healthcare + if you have kids, bonus, here is an extra 500-1500 a month. 70% of Canadians own homes, 40% have no mortgage.

We’ve had it so good, and easy, for so long that we’ve lost sight of what real struggle looks like.
____

Add to that the dirt cheap cost of manufactured goods thanks to technology and Globalized manufacturing (ie China).

I paid 800.00 or so for a nice 27″ tube TV in the 90’s. Today you can buy a 27″ flat screen at the grocery store for under 100.00. Credit to anyone who can fog a mirror. Kids these days drive NICE trucks with very new toys behind them.

Before they head off to Uni, today’s kids have it great. I will admit it’s a little different after they leave Uni though…

#172 Flop... on 05.02.19 at 1:50 pm

Today’s happy seller… but shows you how ridiculous some asking prices were…

6188 MACDONALD STREET, Vancouver

Just sold for $9,800,000

Was asking as high as $21,898,000 in 2016

2018 Assessed: $11,107,000
2017 Assessed: $12,214,000

crazy people or market or both?

#173 Blacksheep on 05.02.19 at 1:50 pm

#131 Howard,

“#66 Blacksheep on 05.01.19 at 8:00 pm”

“Oh do get over yourself.”

“As DON mentions above”
——————————–
Howard # 131,

I noticed you never challenged the content or rational of my post, just my character…if you come up with something original to say, then we’ll talk.

#174 IHCTD9 on 05.02.19 at 1:51 pm

#162 Tater on 05.02.19 at 12:49 pm

Would you happen to have a source for that stat? I’m a big fan of this tool: https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/dv-vd/inc-rev/index-eng.cfm

but it is individual income only.
____

About 1/4 of the way down:

https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/details/page.cfm?Lang=E&Geo1=CMACA&Code1=535&Geo2=PR&Code2=35&Data=Count&SearchText=Caledon%20East&SearchType=Begins&SearchPR=01&B1=All

2015 though, and I believe there are different kinds of households, and the 78K is based on the total.

#175 jess on 05.02.19 at 1:53 pm

Trump’s tax returns? What happens if he doesn’t comply?

https://www.thenation.com/article/david-cay-johnston-trump-tax-returns/

#176 Fleeced Indeed on 05.02.19 at 2:02 pm

#27 CL on 04.30.19 at 6:24 pm

Hi – anyone know resources to help explain how best to leave Canada for a more reasonable lower tax jurisdiction? Love this place but can learn to love another if I can keep more than 46% of earnings. I reduced hours to reduce the impact of this high marginal rate, but it still takes a huge bite.

+ + + + + + + + + + +

As someone who is going trhough the process, the answer depends on what jurisdiction you are moving to.

I am moving my company and household to the US, and for a move to the US, there are a lot of resources. A search on Amazon for cross-border guides will get you started.

If you are moving a company, I would suggest looking into getting an accountant or lawyer involved. The tax rules are pretty complicated.

If you have a professional practice, say, physician, it’s somewhat easier. You have to make sure you cut enough ties with Canada so that your residence for tax purposes ends.

Believe it or not, even after moving out, the CRA will consider you a resident for taxes and will come after you unless you cut enough ties with Canada. According to my accountant, the big one that trumps most factors is your home and where your family and furnishings and possessions are. So, moving all of that out is a big consideration.

But things like keeping provincial health cards can make a difference too. The CRA has a form that you can fill and send in for them to determine whether you’re a tax resident of Canada. It’s a good reference, but my accountant advised not to send it to the CRA for determination.

Good luck! Like you, I’m reluctantly moving out. Alas the country I love has become a place that imposes punishing taxes and tends to reward people who prefer others to pull their weight.

#177 RyYYZ on 05.02.19 at 2:05 pm

#10 PastThePeak on 05.01.19 at 5:25 pm

I think you’re right.
Also, don’t forget corporations who use various tax loopholes to offshore their revenues and profits.

#178 jess on 05.02.19 at 2:10 pm

why did this take so long to discover the fraud?

A metals manufacturer faked test results and provided faulty materials to NASA, causing more than $700 million in losses and two failed satellite launch missions, according to an investigation by the U.S. space agency. (bloomberg)
=====================
Tuesday, April 23, 2019
Aluminum Extrusion Manufacturer Agrees to Pay Over $46 Million for Defrauding Customers, Including the United States, in Connection with Test Result Falsification Scheme

According to court documents, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions Inc. (SEI), admitted to providing customers, including U.S. government contractors, with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extruded at the companies’ Oregon-based facilities. Tensile testing involves slowly stretching and then ripping apart a sample of the metal using a machine, which then measures the force applied to the sample at each stage of the test.

“For nearly 20 years, Sapa Profiles and Sapa Extrusions falsified critical tests on the aluminum they sold — tests that their customers, including the U.S. government, depended on to ensure the reliability of the aluminum they purchased,” said Assistant Attorney General Benczkowski of the Department of Justice’s Criminal Division. “Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies accountable for the harm caused by their scheme.”

“Today’s settlement reflects the Civil Division’s commitment to pursue fraudulent conduct,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will vigorously pursue those who seek to take advantage of American taxpayers and undermine the safety and integrity of critical government programs.”

“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”

the fraud from 1996 to 2015.

“Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies accountable for the harm caused by their scheme,” said Brian Benczkowski, assistant attorney general of the criminal division at the Department of Justice, in an April 23 statement.

https://www.bloomberg.com/news/articles/2019-05-01/nasa-says-aluminum-fraud-caused-700-million-satellite-failures

#179 TurnerNation on 05.02.19 at 2:12 pm

#116 dharma bum that’s a good poem. I’d get it tattooed on my back or arm but I’m not a Millenennial.
It would signal my virtue as a Capitalist :-)

#180 Alistair McLaughlin on 05.02.19 at 2:15 pm

#166 Past the Peak You can easily get a nice townhouse for under $300K (you own dirt!) in my suburb of YOW.

Please tell me what suburb that is. I am in Orleans. 27 year old condo townhomes on my street are going for $345K & up, and those aren’t even end units. Granted, these are hybrid “freehold” condos (yes, there is such a thing) where you actually own the house and land; condo board just enforces the rules and maintains the few common areas, so not a true condo I guess, more HOA. Still, nothing even close to $300K in sight.

There was a couple years ago, and I’m wishing I’d have bought then, but decided I wanted a much bigger DP and smaller mortgage. Now I have the bigger DP but the mortgage won’t be much smaller. So much for that strategy.

#181 devore on 05.02.19 at 2:22 pm

#7 W. Kinsella

Banks lend freely because they have no fear of failing. They, and their mortgages are fully backstopped by the government. The stress test forces back some sanity. If the markets is to be regulated (and banking is, very heavily) it should be done sensibly. Removing B20 removes lending constraints. Banks know they are able to lend much more than B20 lets them to; safe for them, bad for the borrower, and everyone else, because banking failure costs are socialized. Bring back market checks and balances, if you want to talk free market.

#182 Remembrancer on 05.02.19 at 2:31 pm

#178 jess on 05.02.19 at 2:10 pm
why did this take so long to discover the fraud?
—————————
Nothing went boom before and its not like they got the parts back for reuse or examination in this case…

From Armageddon’s Rockhound (Steve Buscemi): You know we’re sitting on four million pounds of fuel, one nuclear weapon and a thing that has 270,000 moving parts built by the lowest bidder. Makes you feel good, doesn’t it?

#183 devore on 05.02.19 at 2:46 pm

#170 Sold Out

Religious fundamentalism is the secret sauce.

This is a serious misreading of the situation. Religion has always been the window dressing to mobilise regular people into doing things they don’t want or don’t benefit them. You think the 0.01%ers are motivated by religion? They are motivated by self-preservation and even loss of lifestyle, and not fear of mystical men in the sky.

If their worker bees have lost the ability to appropriately self-govern their daily lives (such as failure to sufficiently maintain and grow the population and production of required goods and services), anything is on the table, including assignment of common breeding stock.

#184 Remembrancer on 05.02.19 at 2:49 pm

#182 Remembrancer on 05.02.19 at 2:31 pm
#178 jess on 05.02.19 at 2:10 pm
why did this take so long to discover the fraud?
—————————
Nothing went boom before and its not like they got the parts back for reuse or examination in this case…
——————
Seriously though folks, Counterfeit, Fraudulent and Suspect Items (CFSI) in supply chains, especially critical supply chains like military, power generation and other civil infrastructure or this case satellites, is a major issue concerning safety, availability and reliability.

Hint to the Bitcoin cowboys, an actual potentially beneficial use case for blockchain tech is tracking of critical infrastructure components…

#185 jim on 05.02.19 at 2:56 pm

Sales have cratered in many markets and prices are starting to tumble…

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

Bring it on.
Lower prices are the best long term solution for first time home buyers.
The rest is noise from vested industry interests.

#186 PastThePeak on 05.02.19 at 2:57 pm

#180 Alistair McLaughlin on 05.02.19 at 2:15 pm
#166 Past the Peak You can easily get a nice townhouse for under $300K (you own dirt!) in my suburb of YOW.

Please tell me what suburb that is.
++++++++++++++++++++++++++

Stittsville.

#187 IHCTD9 on 05.02.19 at 3:02 pm

#170 Sold Out on 05.02.19 at 1:18 pm
#145 Linda
#156 IHCTD9

Margaret Atwood’s novels are often misclassified as “science fiction”, but may be more correctly identified as speculative fiction.

If birth rates continue to decline in the developed world, and women in developing countries follow suit as their access to education and health care improves, The Handmaid’s Tale starts looking less like science fiction and more like a blue print. Religious fundamentalism is the secret sauce.
____

I watched “Bohemian Rhapsody” a while back. Upon returning home I Googled up Freddie M and started reading. He’s Parsi. It turns out this group is slated for extinction. When you read about the people you see many familiar traits to Western Society – as well as a stark contrast to their Indian brethren.

Educated Women, high literacy, wealth, increasing median age, declining marriage rates, and (surprise), declining fertility.

They are expected to lose “community” status and be labeled a “tribe” come next year. They will then slowly fade out of existence forever.

No crazy folks jumped in and took over trying to breed by force. They are just going to quietly disappear as a recognized people.

IMHO, if the West carries on as it is, the same fate will slowly pull the sheets over it as a distinct society as well.

100 years from now, I expect most Western countries will have no dominant culture, religion, custom, ritual, heritage, or a national spirit. No group will feel they have a birthright to the society they grew up with. None will feel obligated to “save” anything. It’ll be an undefined soup of everything, and few will pretend to know “how things should be”. I expect a pile of apathy from everyone involved where the value of the society is to serve the individual, and has little significance as a whole.

I think the things that were once valued like Religion, Culture, Heritage, Patriotism etc… – things that really moved folks, are already well along in dying off. Along with these go the fervor to fight for what is considered “good”, and “right”.

Hence no takeover by zealots – just a quiet low grade slope into a new age – for better or for worse.

#188 Sold Out on 05.02.19 at 3:03 pm

#183 Devote

You misread my intent; we agree that religion is just a selling point, to make the medicine go down a little easier.

#189 Sold Out on 05.02.19 at 3:06 pm

#184 Sold Out

Sorry, it’s “devore” of course. Frickin’ auto-correct.

#190 Barb on 05.02.19 at 3:07 pm

#23 yvr_lurker on 05.01.19 at 5:47 pm

“…Trudeau seems to run the Gov’t like he is giving $$ from his own piggy bank.”

——————————————
If only he would.
His own piggy bank is well out of reach.

#191 JB on 05.02.19 at 3:09 pm

#163 Remembrancer on 05.02.19 at 12:57 pm

#138 JB on 05.02.19 at 9:39 am
So he is a civil employee!
————————-
Ya, and his primary challenger for the job has been working in government (as an MP) since 2004 (4 years longer then JT, so lets call them even or maybe AS is slightly longer as “civil employee”), before that an insurance broker, a waiter and a MP constituency office greeter among other things…

Lets focus on policies and actions and what those mean to Canadians, not the drama teacher memes…
…………………………………………………………………..
Did I bring up the opposition leader? I’m not talking about Scheer. I’m discussing Mr Socks who claims to be a regular guy and wants to associate himself as Johnny Canuck and how he understands the trials and tribulations of the middle and working class. If you want to discus Scheer then check out his background. He came from a humble Catholic working class family of nine and I’m sure his father did not drop the mother-load of several million dollars into his personal bank account to start him off. The bad thing about Scheer is he is not a good actor like Mr Socks and has no pretentious vanity.

#192 LTL_FTC on 05.02.19 at 3:27 pm

Hi Garth,

In the olden days I think you occasionally intimated that Messrs. Flarherty & Carney might have dropped by your site occasionally. Any sense of whether any successors do? Curious.

#193 Smoking Man on 05.02.19 at 3:52 pm

JB on 05.02.19 at 9:15 am
#121 Smoking Man on 05.02.19 at 1:49 am

Why I ran away from Canada.

DM was groving at Davos and I called him up on it.
The sooner he reads my book the longer he will have a job.

But I’m still unforgiven. Dont want to be. Free speech is everything

https://youtu.be/mTwjUE60HG4
…………………………………………………………………..
Your hyperarousal response to leaving Canada was if I recall due to a lack of a job and losing your home!
….

That was just James making up stories. I sold at peak real estate. You see 10 years worth of price growth in 2 months it was a no brainers to sell.

Always said on here when my dad passed away I was out of here. Now I make double and in USD what I would make in Canada and pay a fraction of the taxes.

#194 Linda on 05.02.19 at 6:13 pm

#148 ‘Howard’ – read #159 ‘IHCTD9’ for particulars. To answer, the world fertility rate is not currently zero. However, if everyone on the planet decided to stop having babies, it would take about 50 years of zero births to basically ensure human extinction. The unassisted (no IVF) pregnancy ratio is about 0.7 per 1000 after age 45. There is also an increase in developmental issues for fetuses born to older women. By age 50 the chances of successful conception & birth are virtually nil, even with IVF. It can happen, but the odds are very much against it. I’ll add that women at age 45 plus are usually very happy to have babies in their lives – they call them grandchildren. Having those babies themselves? Not so much.

#195 Shaggy on 05.03.19 at 8:18 am

Garth,
You missed recommending a prime opportunity for Emily to take advantage of her stay-at-home mom status to incomethe income split now and remove funds from the registered account. Why wait until retirement to withdraw and get the funds taxed, they should be withdrawing the spousal RRSP funds now every 2 years to the personal exemption amount.

As you have pointed out in the past, you don’t have to wait until retirement to withdraw RRSP funds, you can withdraw it at any time, and probably should in years where you have no income. Of course the catch is that spousal contributions are last in first out (LIFO), and the last contribution must remain in the account for 3 calendar years (really 2 years if you contribute in December and withdraw in January) or it reverts back to the contributor (Emily’s husband in this case).

Emily, given that you are not maxing your family’s RRSP/TSFAs, you should think about having your husband make Spousal contributions until you have $11k or so in your Spousal plan, then take a break from RRSP contribution for 3 calendar years (spend that time topping up your TFSAs and personal accounts instead). Then, after the 3 years, withdraw the $11k from your RRSP and claim it in your income. You will have effectively income split, and this money will not be taxed in your hands. All completely legit.

Then, you can stop the TFSA contributions for a couple of years and divert the funds to using up the RRSP contribution room that has accumulated for your husband. Once that’s done, pause the Spousal contributions 3 calendar years again and withdraw, topping up the TFSA.

A huge benefit of a stay at home parent is that they have little to no income (may be getting child benefits that they need to claim as income), so you don’t have to wait until retirement to income split. ONE CAUTION: you stated that you get child benefits, so you do have some income. If you deduct the full annual personal exemption amount from your RRSP you will go over the amount because of your child benefit income. So if you want to pay 0 tax, then just reduce the RSSP withdrawal amount by the amount of your child benefi.

This strategy is even more advantagous for those single income families where the income is in the top tax bracket (1%). They can effectively convert income from a 50%+ tax bracket into tax-free or low tax income for the spouse. The only limitation is the amount of RRSP contribution room available to the income earner.

Tax-free RRSP growth for thirty years. – Garth

#196 RetiredBoomerinVictoria on 05.03.19 at 1:30 pm

On the subject of successful Millennials with 4 kids,
there a UTuber called “Mike Martins” and he has many Channels on UTube.

He is age 41 or so, and moved from Vancouver to a small city in B.C. called “Merritt”. He bought a house for $260k, and owns a small Games Store in town, and also has a home business on EBay too.

His videos gives a real life example of how one family can live in a 10 bedroom, 6 bathroom house for $260k, with big backyard, in a small town…

without paying $1.4 million for a “Vancouver Special, eastside, handyman, knockdown bungalow.”

Please check him out on UTube, might be helpful to some folks.

#197 Westcdn on 05.03.19 at 3:26 pm

So far, so good with Kenney – I was afraid I was voting for a career politician who would burn down a barn to kill a mouse. At least he is willing to talk before he throws the match. I avoid wasteful action and slothfulness – seeing a pile of cigarette butts in a parking lot disgusts/angers me to the point I will clean up if I have the tools and I am a light weight smoker.

My girls tease me about my nerd tendencies. They sent me a Youtube video where a father bores his infant asleep by talking – “hey, wake up, I am talking to you”. My attitude is that you just don’t want to hear what I am saying. My wife complained I could suck the life out of a room – it is an ability I don’t want and is under new management.

I get a kick out of “The Fly” of ibankcoin. He wrote about driving home through Mason/Dixon. He has a maladjusted rescue dog he calls the coyote because she attacks nonhuman moving thing with attitude – even took a dump on the front lawn of Washington’s mother. A few comments from memory – “I expected a Tom Sawyer type of kid with dirt on his face to step out of the bushes and throw a turnip at me” – his wife saying “don’t you dare kill those people in front of the children” after hearing hipster talk.

I think I will be better off with the Federal carbon tax regime than Notely’s version. I haven’t made up my mind about the source of climate change and I know people affect by existing. I keep my carbon footprint low. Expect resistance if you just tell me what to do. Consider me Excon (exit confederation) if the Laurentian elite think I will march to their whims without regard to my interests.

#198 Westcdn on 05.03.19 at 3:53 pm

I forgot to mention his link to a novelette by F. Scott Fitzgerald. I was amazed by the power of Fitzgerald’s fictional writing. The characters…. I won’t forget.
https://ebooks.adelaide.edu.au/f/fitzgerald/f_scott/jazz/chapter4.html