The big shed

Monday afternoon central bank boss Stephen Poloz will deliver a speech titled, “The Future of Canada’s Mortgage Market.” Big tingles. Will he announce the stress test is being gutted?

Not. A. Chance. In fact the big guy will reinforce why the test is working – cooling off real estate in an orderly fashion (the melt we keep talking about), without a crash. It’s exactly what policymakers want. Slowly cheaper houses, falling sales and gaunt, emaciated realtors. Dumping B-20 just when there’s a mortgage rate war, Poloz will warn, would do nothing but froth up housing, hurt affordability and lead to more rate hikes to cool it off. So, ain’t happening. Election or no election.

As detailed here last week, real estate is losing altitude fast, especially at the top end. Particularly in Vancouver. Prices have toppled 20-30% in the leafy hoods, with some mansions giving up half their value from 2017. The stress test didn’t do that, of course. Few moisters are borrowing money to buy $5 million digs. The culprit is taxes, and the message being sent that rich people are no longer welcome in the Socialist Collective of BC.

Of course stiff taxes – on foreign buyers, on people from Alberta or Ontario, on second homes, on part-time homes, on expensive homes, on renovators or speckers – are not enough to satisfy the masses. The eat-the-rich genie is out of the bottle, and BC’s NDP government openly encourages people to think housing costs too much because the market’s been manipulated by evil 1%ers.

This past weekend a noisy gaggle of protestors took to the streets of Point Grey – home to YVR’s priciest mansions – to demand the wealth gap be closed. They honked, tooted, yelled, chanted, waved flags and blocked driveways of the locals. The cops got lost.

“When we look at wealth inequality in B.C., it’s out of control,” Alex Hemingway of the lefty Canadian Centre for Policy Alternatives told CTV. Here’s the rest of the story…

The most expensive home on Belmont is valued at some $65 million. Buying a property like that with a mortgage would mean making monthly payments of around $250,000. That’s the price of a modest studio apartment in Vancouver. “At the rate I make, I would probably have to work my entire career to save up that much money, if I’m lucky,” said retail worker Steve Nielsen.

The growing wealth has brought with it a dark side: Working people are being pushed further out by the lack of affordable housing while in some cases opulent properties in Vancouver sit empty. And Nielsen said that’s costing those people much more than money. “If you’re commuting two hours a day, you can’t have family life. You can’t have civic life. It’s enormously destructive and it needs to change. School tax, speculation tax – but we’re only scratching the surface of the sheer size of that real estate wealth.”

Now, imagine the citizens of Toronto converging on the Bridle Path to protest outside the long, long line of mansions built there. Or SoHo in New York. The Hamptons. Potrero Hill in San Francisco. Outside Bill Gates’ house in Seattle.

Nope. In most cities there are enclaves where the well-heeled congregate on big lots, in grand houses, behind gates. Usually those people are entrepreneurs, company owners or founders, corporate executives or occasionally old-money inheritors. Collectively they employ masses of people, pay the mortgages on untold numbers of employee houses, fork over huge property tax and shovel millions into the economy building their castles. In Canada, moreover, the rich get to hand over half their incomes to the government – a tax bill which could be slashed if they moved an hour to the south. In short, these are the kind of people you’d want in your city. They sure seem to in Seattle.

The BC government is busy turning a real estate correction into something more intense. Supporters think prices can be taken down by 50% and there’ll be no economic consequences. How naïve.

Of course, the agenda is more about attacking wealth than making housing affordable. The empty houses tax, the so-called speculation tax on second homes and the uber property tax on top-end properties all have one thing in common. They target the rich. And polls show that’s perfectly fine with the locals. It’s the same sentiment federal super-minister Chrystia Freeland voiced last week – that without more taxes on the successful, we will have a “crummy, crummy society” in which democracy eventually fails.

Will BC be the first province to bring in a wealth tax? Are the federal Libs thinking the same? To date we’ve primarily taxed what Canadians earn, not what they own. Crossing that bridge would open up a tax creep with the potential to erode pension savings, retirement plans and investment portfolios – as well as the market value of your house.

To the hooters and hollerers in Point Grey, that would be wonderful. Because they don’t have any. So they want yours. Like, how’s that not fair?

 

190 comments ↓

#1 Dave on 05.05.19 at 3:43 pm

First!!

#2 Edwardo on 05.05.19 at 3:44 pm

BC is beyond hope but come October we can set Canada on a slightly more prosperous path.

#3 Classical Liberal Millennial on 05.05.19 at 3:44 pm

Progressives and their “ideals” sure are revolting and disgusting.

#4 AGuyInVancouver on 05.05.19 at 3:47 pm

…In most cities there are enclaves where the well-heeled congregate on big lots, in grand houses, behind gates. Usually those people are entrepreneurs, company owners or founders, corporate executives or occasionally old-money inheritors. Collectively they employ masses of people, pay the mortgages on untold numbers of employee houses, fork over huge property tax and shovel millions into the economy building their castles. In Canada, moreover, the rich get to hand over half their incomes to the government ..
_ _ _
Except you know very well that’s not the case anymore in Vancouver, even if you won’t admit it.

#5 Mike in Airdrie on 05.05.19 at 3:52 pm

Not to mention the huge donations these people make to charities and education foundations. If you want to push off the 1% you’ll quickly find out just how much they support public services and the arts. Good luck with that BC.

#6 not 1st on 05.05.19 at 4:00 pm

What the?

Skyline getting crowded as T.O. adding 31 skyscrapers by 2024

https://torontosun.com/news/local-news/skyline-getting-crowded-as-t-o-adding-31-skyscrapers-by-2024

#7 Oh that pic ... on 05.05.19 at 4:01 pm

reminds me of a time when a bud and myself were out in my boat fishing on a lake. The fishing was slow so my bud began combing out his border collie who was with us. He worked out a huge ball of hair and just threw it overboard. It was still floating around a week and a half later.

#8 drydock on 05.05.19 at 4:11 pm

Oh that pic … on 05.05.19 at 4:01 pm

reminds me of a time when a bud and myself were out in my boat fishing on a lake. The fishing was slow so my bud began combing out his border collie who was with us. He worked out a huge ball of hair and just threw it overboard. It was still floating around a week and a half later.

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

That’s hilarious.

#9 Howard on 05.05.19 at 4:11 pm

The Canadian wealthy who properly declare their wealth do indeed pay a lot, perhaps too much.

Satellite families, however, pay next to nothing. Or they did anyway, until the NDP came to power in BC and now finally there is a possibility that they will pay their share of income tax.

Ideally foreign ownership should be banned but this is at least a step in the right direction.

#10 Victoria Real Estate Update on 05.05.19 at 4:13 pm

Garth, when the stress test was implemented in January 2018 you made it clear that it wasn’t brought in to cool the housing market.

Instead, as you explained many times, the stress test was brought in to protect the banks and the economy from the dangers and threats that were rooted in mortgage loans – specifically a high percentage of loans that put the banks at risk – as well as extremely high debt levels, etc.

And those dangers and threats remain today (and have likely worsened).

Are you saying now with certainty that the stress test was in fact implemented in January 2018 to cool the housing market?

#11 Flop... on 05.05.19 at 4:15 pm

I get it, some people think the NDP tried to do too much at once.

A lot of what ails Vancouver is due to bad data and outright lying.

The people that I feel most sympathetic towards in this correction are the people, whether they were speculating or not, that bought in Spring 2017.

The dynamics of the market had already drastically changed, and yet the real estate board tried to cover up the changes and the local media was also culpable as they sat on their hands.

Clearly you don’t expect a real estate board to tell everyone the sky is falling but to massage the numbers to make it look like Vancouver real estate was up 20% y.o.y on top of an already outrageous Spring 2016 was borderline criminal.

It was no longer a green light disco and the lights were flashing amber.

Do what you want to do, but proceed with caution.

Just as ordinary citizens who were trying to house their families, and the disliked Specuvestors suffered from bad Intel, so too did the provincial government.

If they had spent the time to properly analyze the market independently instead of going of the realtors numbers and public sentiment at the time, then the cooling perhaps would have been a little less dramatic.

Alas, we are where we are.

Patience had run out for a lot of people and something, anything, needed to be done.

The mystique and the euphoria has diminished significantly, but there is still money in this town and so let’s hope enough of them stay so the truly wealthy can support this city and its economy now that the fake wealth is evaporating…

M44BC

#12 Linda on 05.05.19 at 4:18 pm

“Supporters think prices can be taken down by 50%”

Well, isn’t it really like this will happen within the next 24-36 months?

#13 Howard on 05.05.19 at 4:20 pm

In most cities there are enclaves where the well-heeled congregate on big lots, in grand houses, behind gates. Usually those people are entrepreneurs, company owners or founders, corporate executives or occasionally old-money inheritors. Collectively they employ masses of people, pay the mortgages on untold numbers of employee houses, fork over huge property tax and shovel millions into the economy building their castles.

——————————————

Oh come on Garth. This isn’t 1920.

Rich people these days usually become rich through inherited wealth which is then “financialized” into even more wealth. I say “usually”…there are exceptions.

I am not in favour of confiscatory income tax however and would prefer very high consumption taxes particularly on luxury homes and goods. Wealth tax is fine a small long as it accompanies a decline in income tax.

#14 Ken M. on 05.05.19 at 4:21 pm

#106 Smoking Man on 05.03.19 at 1:18 am
80 Ken M. on 05.02.19 at 9:42 pm
All this in a country with $22.2 trillion in national debt and a budget deficit which this year will hit $1 trillion.
=============

But smoking man says it the greatest.
Greatest in debt.
……
Sorry dude but lake Ontario has shit waves. I’m a surfer now. Getting rock solid abs. You can find me on a short board at Huntington beach every second week end.
=============
How many six packs does it take to get your ab?
When is your next scheduled trip to leave your trailer park to visit Canada in order to keep you citizenship anyway?

#15 PeterfromCalgary on 05.05.19 at 4:22 pm

Attention: Rich people in Vancouver

Move yourselves and businesses to Calgary! We love rich people. We love you so much that our new Premier Jason Kenney is lowering the Corporate tax from 12% to 8% over his first term.

We have lots of prime office space available for your corporations and you can buy about 5 times the house per dollar here in Calgary.

Vancouver does not deserve you or your investments! In Calgary we appreciate you especially if you rent some offices downtown.

#16 BillyBob on 05.05.19 at 4:26 pm

The naiveté of the protesters is frankly, embarrassing. But not really surprising. BC has always had a higher percentage of flakes.

#17 Cowtown on 05.05.19 at 4:36 pm

#15 PeterfromCalgary

Love your note! Having lived in Calgary for many years and now just moving back to Cowtown after 5 years in Van (we rented!) I have heard it all. Yes Calgary winters are long and cold but the skiing is great and there is sun almost every day vs Vancouver where it frequently rains for days and always seems gray, overcast and brooding. I do have to admit though, that we have never seen anything like when Van gets a centimetre of snow – pure chaos!!!

The biggest challenge for BC though is that you have to accept the self serving, narrow focus and short term thinking of Horgan and his socialist government who are doing all they can to make BC as unwelcome to people and businesses as possible!!
For my money, we are glad to being Alberta bound!!

#18 Yankee Canuck on 05.05.19 at 4:40 pm

“If you’re commuting two hours a day, you can’t have family life. You can’t have civic life“

Whoever said this is living in some alternative 1950s utopia. In Boston, NYC, Philly a one hour commute each way in the city is almost a fact of life. Not all but many.

Why is this the government’s problem? Why not move? The commute is Regina is not an hour…

#19 eightlock90 on 05.05.19 at 4:43 pm

The bi-weekly “Kiss our rich asses or else” post.

Housing has now become a political issue. People who work deserve to have some access to decent shelter, whether it is renting or owning. Do you not have any concern for your fellow citizens or is everything about money to you Garth? Really out of touch point of view expressed in this post. It’s actually kind of gross in a way.

This is not a partisan issue you can pin on the NDP to matter how hard you try. If anything it’s the federal conservatives that deserve the blame. 40 year 0 down mortgage. Let’s also not let the BoC off the hook – cutting rates to 0.5 in 2015 when there was never even a recession? Yikes.

It is funny how the federal liberals will wear the housing collapse but it’s was really the previous governments fault.

Real estate is not a right. Government of all stripes have screwed up the market, and it continues. – Garth

#20 Re-Cowtown on 05.05.19 at 4:59 pm

Hey Garth, you also forgot to mention BC’s eat-the-poor carbon taxes. My friends daughter is going to UVIC studying to get into vet school. She wants to work at an animal shelter to get some experience and help out with the critters. The shelter pays minimum wage and is a long drive from her apartment. Gas prices at $1.75+ eat her pay cheque so badly that she can’t afford to work there out without blowing a hole in her school budget.

And so here is the diabolical cost of carbon taxes; people are, today, being forced to stop doing acts of kindness by gas prices. The BC government should be ashamed of themselves by placing more value on virtue signalling than in allowing the acts of virtue themselves.

Can someone explain to me how these carbon taxes are not regressive on the financially struggling? Energy, whether it is electricity or gasoline is a huge cost to those on the edge.

And please don’t suggest that she get an electric car; electric cars are for rich folk. She can barely afford the beater she’s driving and she’s also opposed to the child slavery in the Congo that comes from mining the cobalt for the electric car batteries.

#21 eightlock90 on 05.05.19 at 5:03 pm

Real estate is not a right. Government of all stripes have screwed up the market, and it continues. – Garth
/////////////

But, shelter is a right. Do we really want to live in a society where people can’t even assess shelter?

I’m not saying every retail worker in Vancouver deserves to live in a mansion in point grey but what we have now is currently not working.

You say in your post we should tax what we earn and not what we own. Okay if we did it that way we would scrap the personal residence exemption. If RE is not longer shelter but an “investment” then people can pay capital gains tax on it. Also we can immedately abolish CMHC. Why are tax payers backstop loans for the big six when they make huge profits. They should take all of the risk and set their own risks.

It’s funny. When policies that send housing to the moon like personal residence exemption, lower lending standards, longer amortizations, cmchc insurance nobody who owns has a problem with it but when governments finally try and clamp down on reckless RE speculation everyone has a big hissy fit over it.

See dictionary: Cognitive dissonance.

#22 crowdedelevatorfartz on 05.05.19 at 5:05 pm

“…..falling sales and gaunt, emaciated realtors…..”

+++++

That brought a smile to my lips.
Speaking of taxes.
Happy Cinco de Mayo realtors, have you paid 2018 taxes yet?

Wealth Taxes.
Didnt Britain try that in the 1970’s and 80’s.
And all the rich just up and left?

Anything to make screwed Canadian voting Millennials happy.
Good job!

#23 Yukon Elvis on 05.05.19 at 5:07 pm

The have-nots can now out vote the haves. The revolution has begun. Cover your assets accordingly.

#24 Ustabe on 05.05.19 at 5:09 pm

#15 PeterfromCalgary on 05.05.19 at 4:22 pm

Attention: Rich people in Vancouver

Move yourselves and businesses to Calgary! We love rich people. We love you so much that our new Premier Jason Kenney is lowering the Corporate tax from 12% to 8% over his first term.

We have lots of prime office space available for your corporations and you can buy about 5 times the house per dollar here in Calgary.

Vancouver does not deserve you or your investments! In Calgary we appreciate you especially if you rent some offices downtown.

What if I’m a teacher and my wife is a nurse and we have a middle school aged child who thinks she might be gay?

#25 crowdedelevatorfartz on 05.05.19 at 5:10 pm

@#18 Yankee Canuck
“Why not move? The commute is Regina is not an hour…”

******
Possibly because people would rather spend 2 hours a day sitting in a hellish commute than live in Regina-beria

#26 SimplyPut7 on 05.05.19 at 5:16 pm

Canada is not running out of land. We just needed to build more homes with families in mind.

Building 500 sqft concrete boxes owned by speculators who thought they could flip them before they were finished being built is not how you build cities.

Everyone does not want or need to live in Toronto or Vancouver. Creating mega cities does not solve your climate change problems.

The more expensive homes in GTA and YVR would have fallen in value without more taxes if all levels of government made sure affordable housing was being built for the residents who live in their cities. You don’t see Florida or Arizona creating speculative taxes for Canadians because they leave the homes they purchased empty for most of the year.

#27 David on 05.05.19 at 5:18 pm

Poloz doesn’t have authority to change any federal stress test. Stop with the fake news.

Influence is authority. – Garth

#28 JSS on 05.05.19 at 5:22 pm

Next up might be TFSAs. Maybe a lifetime cap.
Or dividend income from stocks.

#29 JSS on 05.05.19 at 5:26 pm

Vancouver is beautiful.
Calgary…not so much.
Sorry to offend #15 and #17. People are not lining up to leave BC for AB.

#30 AK on 05.05.19 at 5:30 pm

#60 Remembrancer on 05.05.19 at 5:02 pm
#59 AK on 05.05.19 at 2:27 pm
into North America for little or no tariffs.
—————
“You realize that it would be Canada that would impose tariffs on any Chinese imports to the (Canadian) purchaser, don’t you?”
===================================

What’s wrong with buying products made in Canada or U.S.A. ?? At least you will know what you are getting.

#31 AK on 05.05.19 at 5:33 pm

“In 2018 the US exported $120 billion worth of goods to China. Do you lie on purpose, or just through ignorance? – Garth”
====================================

Well, I know that.

My point is that the playing field in not even close to being level.

So, on purpose. – Garth

#32 Linda on 05.05.19 at 5:34 pm

#19 ‘eight’ – Concern for your fellow citizen? Indeed I do have concerns. Starting with the entitlement many ‘fellow citizens’ seem to have – as in, ‘I don’t have it so you shouldn’t either’ & especially ‘I don’t have it so to be ‘fair’ I want to take yours’.

Charity is not charity if it is enforced. Then it is called theft & for a good reason. Is it difficult to earn a living, pay for the goods/services one uses & build a nest egg? For the vast majority of us, darn right it is. That does not give any of us the ‘right’ to ‘redistribute’ the assets of others because we think it isn’t ‘fair’ they have more than we do.

Seriously folks. Life is a gift. Why waste it & the time you won’t get back envying others?

#33 AB on 05.05.19 at 5:46 pm

#15 Peter from Calgary
Agree 100 percent. Alberta is open for business again. As for Ustabe#24, your ridiculous comments are right out of the Socialist/anarchist play book and have zero bearing on reality.

#34 RetiredBoomerinVictoria on 05.05.19 at 5:47 pm

“Mike Martins” (a cool Millennial with wife & 4 kids) bought a 10 bedroom / 6 bathroom house in Merritt, B.C. for $260k in 2016.

He makes almost daily videos on UTube, about life in Merritt (very candid, good and bad points about moving to a small city, from Vancouver downtown.)

He talks about filling up 1 tank of gas, every month or month-and-a-half. He talks about the 2 minute “commute” to his Game Store in town. He also talks about how he is treated in Merritt (good and bad points.)

He does 2 LIVE shows each week on UTUBE, with people Skyping in. Interesting Viewers talk on his “shows”, who have “boots on the ground” in the foreclosure scenes in the GTA.

His “Mike in the Night” and “Trends in the Housing” are his LIVE UTUBE shows each week.

Foreclosures by wealthy Foreign Investors and Canadian homeowners with mortgages with sub-prime alternative lenders, is something our media is not talking about, and not making Headlines about yet.

Interesting insights (if you are interested in this.)

#35 Barb on 05.05.19 at 6:00 pm

Hopefully Horgan will remove the second home tax for Albertans as barter for more gas in the pipe to keep BC fuel prices from skyrocketing, as is predicted.

And with all this talk of people demanding the “right” to own a house/property, perhaps it’s time to remind them that T1 didn’t enshrine that into the Constitution all those years ago.

You know…T2’s Daddy.

#36 Pfft on 05.05.19 at 6:11 pm

@#20 Re-Cowtown on 05.05.19 at 4:59 pm
Hey Garth, you also forgot to mention BC’s eat-the-poor carbon taxes. My friends daughter is going to UVIC studying to get into vet school. She wants to work at an animal shelter to get some experience and help out with the critters. The shelter pays minimum wage and is a long drive from her apartment. Gas prices at $1.75+ eat her pay cheque so badly that she can’t afford to work there out without blowing a hole in her school budget.

And so here is the diabolical cost of carbon taxes; people are, today, being forced to stop doing acts of kindness by gas prices. The BC government should be ashamed of themselves by placing more value on virtue signalling than in allowing the acts of virtue themselves.

Can someone explain to me how these carbon taxes are not regressive on the financially struggling? Energy, whether it is electricity or gasoline is a huge cost to those on the edge.

And please don’t suggest that she get an electric car; electric cars are for rich folk. She can barely afford the beater she’s driving and she’s also opposed to the child slavery in the Congo that comes from mining the cobalt for the electric car batteries.
___________________

how bout’ a bus pass.

#37 Bobby on 05.05.19 at 6:15 pm

Give it another 6-9 months and it will be evident why the NDP were unceremoniously turfed out the last time they were in power. If the economy tanks, and it will, many of those who support the NDP will be out of work. It doesn’t matter what houses cost if you have just lost your job.
I don’t think there will be a wealth tax but a public revolt against those in the public service making above average pay and benefits. And of course those defined benefit pension plans. These are all not sustainable. Imagine PSAC are looking for hefty raises above inflation and compensation for the Phoenix Pay debacles. They want those who weren’t even affected to also receive monies because they could have been affected.
The people should be careful what they wish for.

#38 oh bouy on 05.05.19 at 6:15 pm

@#16 BillyBob on 05.05.19 at 4:26 pm
The naiveté of the protesters is frankly, embarrassing. But not really surprising. BC has always had a higher percentage of flakes.
___________________

naiveté of the bellyachers on here today equally embarrassing.

#39 Wait There on 05.05.19 at 6:20 pm

Well suppose you have 1 billion people.
The top 1% decide to purchase some foreign property.
That’s 10 million of them. About one third the TOTAL population of Canada.
Now let’s suppose of those 10 million ONLY 10 % decide to purchase a home in Canada. That’s a cool 1 MILLION folks wanting to purchase some foreign property principally in either Vancouver or GTA.

Now suppose 75% of them decide to purchase in the city of Vancouver. Hmmm…..that is 750,000 homes they might want to purchase.

Even if the estimates are incorrect by some factors, relative to Canada, the impact is large and NOT insignificant.

Do I need to point out that that one billion is from ONE country. Add in some 1 percenters of other countries and whoops…. Canada’s population is relatively small and we should remember that.

Even if we reduce it to the top 0.5% of the wealthy of 1 billion people. The scale is huge relative to a population of 37 million. ONE billion is a big number. China’s population is approx 1.4 billion. India is also nearly the same. These countries are used to illustrate the relative sizes of populations as compared to Canadas’. China’s population is 38 times larger than Canada’s. Canada’s population is less than 2.6% of China’s alone. ( That is why any kind of Carbon solution MUST include China and India. We are miniscule. Jointly just between these two countries we are less than 1.3%. We are only 1/3rd the population of even that small chain of islands called the Phillipines. Even Indonesia, a country we know of and think they are inconsequential, Canada is only 1/7th the population of that country)

And most of Canada is empty. – Garth

#40 joblo on 05.05.19 at 6:21 pm

Kanada is so broken.

#41 Young Boomer on 05.05.19 at 6:26 pm

#5 Mike in Airdrie on 05.05.19 at 3:52 pm
Not to mention the huge donations these people make to charities and education foundations. If you want to push off the 1% you’ll quickly find out just how much they support public services and the arts. Good luck with that BC.

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

Exactly! Ask the charities and non-profit sector in and around Calgary how things have been over the last four years!!

#42 js on 05.05.19 at 6:33 pm

I sense this fear of falling prices… well.. you can’t have your cake and eat it at the same time, right? Somethings’s got to give… Prices SHOULD be falling and that seems reasonable… what the hell is wrong with that?

#43 Mac on 05.05.19 at 6:35 pm

‘Atlas Shrugged’ playing out in real time. Have fun Canada.

#44 DON on 05.05.19 at 6:52 pm

#4 AGuyInVancouver on 05.05.19 at 3:47 pm

_ _ _
Except you know very well that’s not the case anymore in Vancouver, even if you won’t admit it.

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

The money laundering, gangs, washing cash in real estate, especially high end. No doubt that has slowed as it is public knowledge.

As soon as prices reached the sky, they were bound to retreat…political measures aside. The main factor on the way down is prices (other things just serve as catalyst).

At what point do people start rushing to the exits, as it only takes a few to start a stampede. The economy always had to revert from the excesses of a prolonged housing boom. Now we are also susceptible to global and local economic shocks.

Our economy was blooming and we failed to diversify. What did we expect would happen after peak house, with an economy dependant on peak house. Now sentiment is changing and as the worrisome stories get more traction on TV. Peak Household debt is the ball and chain.

Avalanches start slowly also. Just spoke to a former 80’s realtor yesterday and she said this is reminding her of the 80’s as she is seeing prices starting to really slip on the Island.

#45 DON on 05.05.19 at 6:56 pm

#16 BillyBob on 05.05.19 at 4:26 pm

The naiveté of the protesters is frankly, embarrassing. But not really surprising. BC has always had a higher percentage of flakes.
******************

It’s happening world wide Billy.

#46 Dave on 05.05.19 at 6:57 pm

I wonder what tax bracket Garth is in?

I’ll tell you when Trump does. – Garth

#47 Flop... on 05.05.19 at 7:00 pm

What is my roll on this blog now?

Besides waterboy, I’m not sure.

It’s been a few days,and no one on here has talked about perhaps what could be the biggest story in residential real estate in Vancouver this year.

People, I have done my two years of community service and raised a little bit of money for charity but walking around with placards ain’t gonna cut it.

The Real Estate Board of Vancouver should be looking into deals like this one just to make sure everything was done properly.

If they are going to be self-monitoring then they don’t need to check up on a house in Maple Ridge that goes 50k under ask, it is deals like this one they need to oversee.

Don’t get pissy with me, I’m just the messenger but I’m gonna give you an address and some numbers and I’ll tell you right off the bat it’s not good one way or the other no matter what your outlook is on things.

The details…

1153 Eyremount Dr,West Vancouver.

Paid 11.28 million December 2015

Sold 5.5 million April 2019

Originally asking 12.8 million

Not gonna even bother adding it up.

Questions should be asked.

Do what you want with the information.

Don’t threaten my wife…

M44BC

https://www.zolo.ca/west-vancouver-real-estate/1153-eyremount-drive

#48 Eco Capitalist on 05.05.19 at 7:01 pm

@#20 Re-Cowtown

An old beater? So she doesn’t oppose the regime in Saudi Arabia that thinks women are possessions and that it’s okay to murder journalists then? She’s good with oil and all the wars to protect it?

#49 DON on 05.05.19 at 7:02 pm

#20 Re-Cowtown on 05.05.19 at 4:59 pm

FFS! The BC Liberal/Conservative/Social Credit bought in BC’s carbon tax……………….

@Cowtown…have fun with Jason Kenny…hey isn’t the rcmp investigating a leadership scandal.

Human nature repeats.

#50 Dolce Vita on 05.05.19 at 7:02 pm

Well Babe Ruth (a.k.a., Garth), you hit a HOME RUN today in rabble-rousing.

Love all the Comments from your well healed “LET THEM EAT CAKE” acolytes vs. sedition, insurrection and in general the “OFF WITH THEIR HEADS” opposition.

I ABSTAIN (not a mangiacake and I like my head where it is).

———————————

Ciao d'[*]Italia

*Tonight, a good safe harbor to lay low from Canadian WRATH of all stripes.

Buonanotte.

#51 A Dollar is a Dollar is a Dollar on 05.05.19 at 7:05 pm

That’s why the most straightforward solution is the best.

Tax all income and all wealth equally.

A dollar is a dollar is a dollar.

Why do Conservatives always try to complicate the tax code to benefit themselves.

Tax everything equally. Period.

(Now I’m just waiting for the chorus of precious snowflakes here, saying “But wait, we’re special, the money of (mostly) rich white males is different and we have to be treated like the snowflakes we are…..tic, toc, tic, toc, LOL!)

#52 Joe Nobody on 05.05.19 at 7:07 pm

Garth, you’re embarrassing yourself with your flippant Con analyses (if that term could be used to dignify your rants, which it probably shouldn’t).

#53 Maxima on 05.05.19 at 7:09 pm

Well, my opinion is that Kinney has a high conflict personality. These types of leaders, confirmed by world wide political science research statistics and supported by a recent book on this topic, are alleged to be the most least able to govern with successful results. Alberta’s economy may drag along with no pipelines being built. As for the rich….I’ve currently noticed “gaunt emaciated realtors “
advertising their own properties in Calgary displaying a 2000 sq. Ft. Property with a 40 year amortization and payments of $5500.00 a month!!

#54 islander on 05.05.19 at 7:10 pm

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals

Individuals Exemptions for Speculation and Vacancy Tax

“People who own residential property within designated taxable regions of B.C. may be eligible for an exemption from the speculation and vacancy tax.”

#55 Tony on 05.05.19 at 7:11 pm

It would make sense to bring in inheritance taxes or estate taxes before bringing in wealth taxes.

#56 That's All, She Wrote on 05.05.19 at 7:11 pm

“Real estate is not a right.”

That’s right. The Crown (as advised by her loyal ministers of the duly elected government of the day) granteth, and the Crown (yadda yadda yadda) may abrogate in turn.

#57 Dolce Vita on 05.05.19 at 7:11 pm

Actually, good you threw the LIONS some red meat tonight Garth…it reads they were hungry.

You pot stirrer you:

“Double, double toil and trouble;
Fire burn and caldron bubble…

…For a charm of powerful trouble,
Like a hell-broth boil and bubble…

…the charm is firm and good.”

#58 eightlock90 on 05.05.19 at 7:15 pm

#19 ‘eight’ – Concern for your fellow citizen? Indeed I do have concerns. Starting with the entitlement many ‘fellow citizens’ seem to have – as in, ‘I don’t have it so you shouldn’t either’ & especially ‘I don’t have it so to be ‘fair’ I want to take yours’.

You are arguing against people in your country being able to afford shelter? I never said anything about stealing anything from people. Linda, maybe you should re-read what people are saying before launching into a sanctimonious diatribe.

#59 yvr_lurker on 05.05.19 at 7:15 pm

We have been through this argument many times before. Garth loves emphasizing the outrageous statements of the few looney tunes that exist in any city as a way to discredit a carefully thought out tax reform that discourages speculation and will make the city more affordable for the masses. Frankly, I have better things to do than debate this again and again. I am completely done with this blog, and as much as I dislike Trudeau I am happy as pie that Garth is not in politics. He suffers from willful blindness. I will shut the door behind me; no need for any dumb ass blogger to push me out the door. Adios.

#60 Re-Cowtown on 05.05.19 at 7:16 pm

“What if I’m a teacher and my wife is a nurse and we have a middle school aged child who thinks she might be gay?”

+++++++++++++++++++++++++++++++++++++

Stop listening to the NDP and have a great life in Alberta. I hate to break it to you but nobody in Alberta cares that you or your kid might be gay. It means nothing here which is the greatest display of tolerance possible.

#61 Reality is stark on 05.05.19 at 7:16 pm

You have to get while the gettin’s good.
When the government gives you a cookie, take it. You know full well they plan to take two cookies back for their nepotistic flock.
They gave you a get out of Canada free card early in 2017 and the smart ones sold their primary residence and left for good. Often times you get one good chance in life.
The raw reality is that there is no growth in this country and outrageous public service salaries guarantee that there will be no growth going forward.
The government will be forced to claw back wealth through the housing market by jacking up property taxes to improve the lifestyles of their flock.
You were duped by a fictitious property market as the government has all but ruined what was once a decent country.
A flock full of toxic social justice warriors weakens a country. Raising a group of people to extract wealth in family court is a stupid educational premise especially now that no one wants to sign up.

#62 That's All, She Wrote on 05.05.19 at 7:22 pm

“protestors took to the streets of Point Grey […] and blocked driveways of the locals.”

That’s funny, because I distinctly remember the Point Grey locals, a few years back, appropriating a citizens’ thoroughfare to use as their private driveway. I hadn’t heard that it had been given back.

#63 Nonplused on 05.05.19 at 7:27 pm

A wealth tax will be extremely destructive to the economy. The problem is in the implementation. What is wealth? How do you measure it? Where does the cash flow come from to pay it? To whom does it apply? At least with HST, income taxes, and capital gains taxes there is a transaction price so both the purchase and sales price are known, or in the case of income taxes the earnings received. But extending this to all “wealth” will be onerous indeed.

Just look at the crazy effort a municipality must go through to assess all the properties every year to implement the so-called “fair share” property taxes. They have to figure out the relative value of all the properties in town! Sure they use recent comparables to do it, but do they really know m house is worth $887,500? Nobody is going to know that until I sell it.

So how do we assess other assets? Bill Gates is worth $101 billion so they say. But it is almost in it’s entirety held in Microsoft stocks. What price do you put on it? The price he paid (the last actual transaction) which is zero, or the current market price? If we are going to use the current market price, on which day? It changes every day. Until he sells we don’t know exactly what it’s worth.

So let’s say it’s going to be close of the last trading day of the year. Oh boy that’s going to screw with the markets that day! But let’s say we’ve arrived at a price. Now where does Bill come up with lets say 2% of the 101 billion dollars, or $2 billion in cash? He’ll have to sell or turn over 2% of the shares in-kind to the government who will then sell them. Who’s going to buy? And since everyone affected will be in the same boat, the first day of the trading year should see significant losses. And that’s just for public companies, the nightmare gets even worse once it is applied to privately held assets. Who can say what a privately held company is actually worth until it gets sold? And of course if there are loans you have to figure out the “net worth” of all those businesses.

And who do you audit to see what their actual worth is? Do we say it starts at $25 million? Well, the way the distribution works is that there are a whole lot more people with less than $25 million than more, but everyone with more than $25 million is going to try as hard as they can to look like they have less. Since most of these prices are notional until a sale is made, it won’t be hard to do, the same way Trump is worth a lot more when he applies for a loan than he is when he files his taxes. All businesses do this. “Good will” and “brand awareness” and “market share” never make it into the tax statements. So this means the government is going to have to audit at least twice as many people as they actually tax just to find out who is actually responsible to pay the tax and how much.

And what happens to the bond market? If bonds are now subject to a 2% wealth tax, what has to happen to interest rates? They have to go north of 2% that’s for sure or the bond market will collapse. If we assume our wealthy bond holders are already in the top tax bracket, the interest rate must rise to at least 3% just to cover taxes.

And how is poor Bill going to respond to this new and onerous tax scheme? Well, he is either going to move Microsoft’s head office to the Bahamas or raise the price of Microsoft products. If he does the former the government loses most of the tax revenue they get now. If he does the later than we all pay the new tax, it’s just embedded in the price of goods and services as all taxes are.

My long time contention is that everybody pays the same tax rate no matter how much they earn. The rich simply embed their tax burden in the rates they charge for things. They have to because they don’t have any money (or much as a % of assets). They have revenue streams. They aren’t Scrooge McDuck with a big pile of gold coins in the basement.

The only reason for a graduated tax system is because it’s a lot easier to audit 280,000 people than 36,000,000. We all pay the same tax rate.

So the long and the short of it is that a “wealth tax” will be an accounting nightmare and just raise the cost of living for everybody including the poor. This is why there hasn’t been one before, and instead we’ve used capital gains taxes, which are the same thing but at least you’ve got verified numbers to start with.

This is also what happens when politicians pander to the 50% of the population that has below average IQ. They aren’t smart enough to know the tax is coming right back to their grocery bill and every other bill, so it’s sounds good to them. They are so easy to deceive.

A real simple example of that is the carbon tax on say diesel trucks. It is one of those trucks that delivers your food to the grocery store. So who pays the carbon tax? It isn’t the trucker I can assure you, he hasn’t got the money. It goes on your food bill. So the next time you want to wail against those nasty CO2 belching big trucks, remember without them you would have no food and any cost they must incur to get your food to the grocery store you must pay. That, for the poor, means they get to eat less. Oh well I guess we could all afford to lose a few pounds anyway.

#64 Mike on 05.05.19 at 7:28 pm

“It’s the same sentiment federal super-minister Chrystia Freeland voiced last week – that without more taxes on the successful, we will have a “crummy, crummy society” in which democracy eventually fails.”

Someone should take her to Venezuela – they thought the same thing in the early 2000’s. At the time, Venezuela was a resource rich country that boasted the 2nd most sales globally of F-150’s. No people are starving in the dark

It’s why Dr’s are now realizing that they’ll take fewer patients, work fewer hours and have a quality of life since the gov’t has their hand so deep in their pockets.

Socialism sucks – and you’re witnessing the collapse of it globally.

#65 Drill Baby Drill on 05.05.19 at 7:30 pm

The Alberta haters are out in force on this blog today. King Jason will prove to be the right leader at the right time. Alberta needs him big time. As well if any of those folks in Point Grey want to move please come to Alberta we will welcome them with open arms. I have never seen so many painsie assed protesters in all my life as on that newsclip. I arrived in Alberta 46 yrs ago and I was broke I am now a 1%.

#66 Damifino on 05.05.19 at 7:31 pm

without more taxes on the successful, we will have a “crummy, crummy society” in which democracy eventually fails
—————————–

Chrystia Freeland was the only Liberal I kind of liked.

That took the glow off quite a bit.

#67 Basil Fawlty on 05.05.19 at 7:40 pm

Release the hounds. The naysayers and nitpickers are out in full force today.

#68 Ace Goodheart on 05.05.19 at 7:49 pm

T2 and Wild Bill are both rich trust fund brats and Freeland recently bought a 1.3 million dollar house in Toronto, so no to wealth taxes. Politicians never tax themselves.

In lighter news, just found out how difficult it is to get a couple of cans of craft beer in Toronto on s Sunday.

In Ontario, it is offensive to public morals and decency for beer to be sold after 6pm on a Sunday. It is a Church day after all.

They have Churches in Europe too. But you can get a can of beer in a gas station at 3am in Germany. I guess their churches don’t mind.

I have to wait until Monday, when I can buy beer until 11pm. Monday is a work day. But there is no Church.

Oh and I have to drink that beer in my house. If I take the can across the street and drink it in the park, I will be arrested and the beer will be confiscated. Because, well, that would go against public morals and decency.

And we don’t want that…..I drank a bottle of wine with the wife in the park in front of Notre Dame in Paris.

That was ok. But Toronto parks are not…public morals and decency forbids.

#69 Vampire studies (post grad) on 05.05.19 at 8:01 pm

39 Wait there. Top 1%? Try again.

https://www.cnbc.com/2018/11/01/how-much-money-you-need-to-be-part-of-the-1-percent-worldwide.html

#70 Shawn Allen on 05.05.19 at 8:02 pm

Impact of lower home prices

Citizens selling existing homes to each other for ever higher prices was a bit of a fake way for homeowners to get rich. To the extent the rise was greater than justified by lower interest rates it became a ponzi scheme.

Now it seems we will see the opposite and it is a strange way to get poorer while in fact the actual houses will still be there providing the same shelter.

The parabolic rise was the bacle, now comes the debacle.

#71 entrepreneurial money laundering on 05.05.19 at 8:11 pm

The loan shark industry have 19,000 vacant positions in Vancouver alone that they cannot fill. Decent starting wage of 2,700 per day, tax free.

BC NDP the only gov. in power with balls of steel.

#72 Ustabe on 05.05.19 at 8:14 pm

#33 AB on 05.05.19 at 5:46 pm

#15 Peter from Calgary
Agree 100 percent. Alberta is open for business again.

As for Ustabe#24, your ridiculous comments are right out of the Socialist/anarchist play book and have zero bearing on reality

AB, I’ve been a voting and at times working member of the Progressive Conservative Party of Canada since I came of age in the late 60’s. I did not leave it, it left me the day Peter sold out for a cushy position, some helicopter rides and a smoking hot wife.

Your ad hominem attempt to paint me as some fringe lefty radical is laughable. But typical of the new Conservative, attack rather than engage.

Have fun with Kenny.

#73 Vampire Studies (post grad) on 05.05.19 at 8:29 pm

21 eight – the principal residence exemption and CMHC
have been around a lot longer than the unaffordability
issue.

#74 jerry on 05.05.19 at 8:37 pm

Vancouver is beautiful.
Calgary…not so much.
Sorry to offend #15 and #17. People are not lining up to leave BC for AB.

A December news release from Statistics Canada shows that B.C.’s population crossed the five million mark for the first time because of international migration.
However, it lost about 1,200 people to other provinces in the third quarter of 2018 after 21 quarters of gains. Ontario, Alberta and Nova Scotia had the largest gains in population from other provinces.
https://business.financialpost.com/real-estate/young-professionals-leaving-vancouver-over-high-cost-of-housing

#75 Willy H on 05.05.19 at 8:44 pm

“In Canada, moreover, the rich get to hand over half their incomes to the government – a tax bill which could be slashed if they moved an hour to the south.”
__ __ __

Oddly enough, over-valued real estate actually creates a larger tax burden for the wealthy to carry. It’s not rocket science.

The incremental economic benefits of over-valued housing are eclipsed by the social costs that they inevitably spawn.

Over-valued land and real estate plagues almost all of central and southern Ontario. The wealth divide between have’s and have not’s is a chasm and still growing unabated. Nothing we don’t already know.

The result is an insatiable demand for affordable housing and social assistance in terms of rent subsidies. The reality is that a growing number of Canadians continue to fall through the cracks because they simply cannot find affordable housing that correlates with their stagnate incomes.

There are folks on wait-lists with wait times well beyond 30 years for affordable housing in some jurisdictions!

Developers are uninterested in affordable housing. Why would they bother when the margins are sky-high on single family dwellings and condos. Building affordable rental housing is not even on the radar unless they are forced to include a set number of units by regulation. These are often two few and exposed to market rates which remain unaffordable for the most vulnerable. Rarely are building owners/landlords held to account for ensuring these units offered at “affordable” rates. There is virtually no accountability.

Municipalities that attempt build affordable housing with tax dollars require increasingly more tax revenues (funding) in order to meet the demand and cover the spiralling costs associated with building what the private sector is uninterested in.

That money is going to come from the have’s.

B20 is necessary economically and ethically. In fact, it’s in the best interest of Canada’s highest taxed income earners, whether they no it or not!

CREA, realtors and developers can go hang.

#76 crowdedelevatorfartz on 05.05.19 at 8:44 pm

@#47 Flop
“1153 Eyremount Dr,West Vancouver.

Paid 11.28 million December 2015

Sold 5.5 million April 2019

Originally asking 12.8 million

Not gonna even bother adding it up.

Questions should be asked…..”

+++++++

Wow!
5.8 million dollar loss.
Plus expenses
Thats quite a hit.
Even for a rich person….

Of course, the media…….. crickets.

Glad to see you back.

#77 acdel on 05.05.19 at 8:45 pm

#65 Drill Baby Drill

Could not agree more. The Notley gov was just a frustration vote against idiots that got too arrogant. I really hope that Jason understood that and challenges and fights the idiotic socialist fundamentals that have created more harm to our economy in the past ten yrs then ever recorded.

The ironic part if these so called green experts actually practiced what they preached and worked with business to create new ideas which they were profitable then it would have taken off; instead they created a huge carbon footprint like the super rich that enjoy flying all over the world, hang out on their yachts and preach; oh, the irony!

Green only works if it is profitable; plant a fricken tree, that will make a huge difference.

Meanwhile, municipalities are collecting your recycling fees only to have them dump them in the landfill or store it in storage containers (out of view); see Calgary Sun today; for the fact that no country wants our junk. Again; oh, the irony! What a joke!!!

#78 Figmund Sreud on 05.05.19 at 8:47 pm

Collectively they [ the well-heeled ] employ masses of people, pay the mortgages on untold numbers of employee houses, fork over huge property tax and shovel millions into the economy building their castles.
_______________________________________

The belief that social reforms should always – always! – move towards better things, … and that such moves should always necessarily involve giving the already very well-heeled more of what they continue to demand shows faulty judgment. Just sayin’!

Best,

F.S. – Calgary, AB.

#79 Yukon Elvis on 05.05.19 at 8:49 pm

#31 AK on 05.05.19 at 5:33 pm
“In 2018 the US exported $120 billion worth of goods to China.

Do you lie on purpose, or just through ignorance? – Garth”
====================================

Well, I know that.
My point is that the playing field in not even close to being level.

So, on purpose. – Garth
……………………………………..

Like when you say that inflation is 2% ?

#80 akashic record on 05.05.19 at 8:53 pm

#46 Dave on 05.05.19 at 6:57 pm

I wonder what tax bracket Garth is in?

I’ll tell you when Trump does. – Garth

Trump donates his salary. So he must be paying whatever the wealth tax is. Not that it should be the business of any Canadian.

#81 ImGonnaBeSick on 05.05.19 at 9:05 pm

#19 eightlock90 on 05.05.19 at 4:43 pm

“Do you not have any concern for your fellow citizens or is everything about money to you Garth? Really out of touch point of view expressed in this post. It’s actually kind of gross in a way.”

Did you fall on your head? Garth literally writes every night with the intention of helping his fellow citizens. Seek help, you’re obviously concussed.

#82 Re-Cowtown on 05.05.19 at 9:13 pm

#74 jerry on 05.05.19 at 8:37 pm
Vancouver is beautiful.
Calgary…not so much.
Sorry to offend #15 and #17. People are not lining up to leave BC for AB.
++++++++++++++++++++++++++++++++++

Umm..errr…. (hand shooting up) My wife and I left BC to head back to Alberta. And so did my kids. And my niece and nephew. My son told me the other day that his friends know that there’s no future for them on the Island but there families live there so they feel that they can’t leave.

Don’t get me wrong, I love the weather in BC. And the vast, vast majority of people we met there are fantastic and I’m proud to call them my friends. But there is simply no future there for the kids.

#83 Jack Adullby on 05.05.19 at 9:14 pm

When the middle class is squeezed, don’t be surprised when they bring their wrath down upon the wealthy. It’s Human nature. Wealth is only popular when all boats are rising.. consider it your “cross to bear”, Garth.

#84 Deano on 05.05.19 at 9:14 pm

Money is increasingly inherited….fewer and fewer make it on their own. The exception (entrepreneurs, business tycoons) are not the rule. Ch-ch-check the stats Garth. The average Joe makes less than 1973 in the US (not much different here I’ll reckon). You may not like it, but people are P-O’d for a good reason. 65 million dollar mansions that are nothing more than a commodity to billionaires are just one of many targets. AND (get this), I don’t really consider myself left-wing at all….imagine!

Provide evidence “money is increasingly inherited.” – Garth

#85 Trump tax on 05.05.19 at 9:15 pm

Futures down 2% so far. I wonder if tomorrow is the worst of it, or if the whole week will be rocky.

#86 MF on 05.05.19 at 9:17 pm

#37 Bobby on 05.05.19

Already been debunked on here when some moron posted about school janitors making 300k.

Average salary is around 45k. Hardly lavish. Add in that most public servants hired since 1995 are contract, so stability isn’t even what it used to be.

Go get a public sector job if you think it’s so great and are envious. Stop complaining and scapegoating while you are at it.

MF

#87 wallflower on 05.05.19 at 9:17 pm

Re:
You don’t see Florida or Arizona creating speculative taxes for Canadians because they leave the homes they purchased empty for most of the year.
***
Florida doubles property tax for non residents. This is what all provinces should do for real estate everywhere. No idea why all Canadian provinces have not adopted this. I believe PEI does something similar.

No Florida does not does property taxes for Canadians. A tax credit is available to locals who apply for one, and it is relatively minor. – Garth

#88 ImGonnaBeSick on 05.05.19 at 9:17 pm

#32 Linda on 05.05.19 at 5:34 pm

Excellently written and to point Linda.

#89 Paul on 05.05.19 at 9:19 pm

#55 Tony on 05.05.19 at 7:11 pm
It would make sense to bring in inheritance taxes or estate taxes before bringing in wealth taxes.
————————————————————————————————
It’s amazing how some people think they are entitled to someone hard earned and already taxed dollars, GO AND WORK for your own. You may find you will enjoy and appreciate your own money.

#90 acdel on 05.05.19 at 9:19 pm

#80 akashic record

So true; it is none of our business in Canada what Trumps income statement or tax brackets are; last I heard that he works for 1$ dollar a year as the President of the United States. Sure, he gets the same benefits as all other Presidents but this one does not collect a salary for all that he does.
Correct me if I am wrong!! I really could care less what is happening down South but his numbers regarding employment are looking pretty good for someone that is so attacked (every day) by radicals and even people that have half a brain; he is not perfect, but he knows business due to his fails in the past. He will win in a landslide in the next election.
If one does not learn from the past then they are due to failure!

#91 Randy Randerson on 05.05.19 at 9:20 pm

Shows you how stupid communists are. I’m leaving this shithole of Vancouver in 6 months, good luck you won’t be getting my tax money afterward.

#92 MF on 05.05.19 at 9:21 pm

#61 Reality is stark on 05

Read this:

https://www.cbc.ca/news/world/despite-trump-s-scaremongering-socialism-is-gaining-a-foothold-in-america-1.5118810

And stop complaining. This is a western world wide phenomenon.

MF

#93 MF on 05.05.19 at 9:23 pm

16 BillyBob on 05.05.19 at

What’s this we agree on something???

BCers and Albertans are clearly the most miserable of all Canadians from what I keep reading.

MF

#94 the Jaguar on 05.05.19 at 9:24 pm

Three things:

-….In short, these are the kind of people you’d want in your city. They sure seem to in Seattle. (Agreed, because in Seattle they don’t have their head up their ass.)

-…super-minister Chrystia Freeland ( No argument, she is very intelligent, but she oversteps, has a pathological hatred of Russia based on her Ukrainian roots. Maybe watch the documentary ‘Ukraine on Fire’, Chrystia. Pretty sure your folks were the ones supporting Stefan Bandera. And there is something a little ‘Carney’ about her.
-In fact the big guy… ( I like Poloz. Not an easy job, and he wears it well, chin up, and hasn’t disappointed me at all. Stay the course. Impulse power, Mr. Poloz.

#95 acdel on 05.05.19 at 9:45 pm

#92 MF

Nope it is not; did you see the recent election results in Canada alone??

People are starting to see through all the b.s.!

#96 dakkie on 05.05.19 at 9:53 pm

Update on the Less-Splendid Housing Bubbles & Crushed Markets in America

https://www.investmentwatchblog.com/update-on-the-less-splendid-housing-bubbles-crushed-markets-in-america/

#97 Dave on 05.05.19 at 9:55 pm

No Florida does not double (sp) property taxes for Canadians. A tax credit is available to locals who apply for one, and it is relatively minor. – Garth
-Not true.
Florida allows residents to “Homestead” their property limiting the maximum increase in assessed value. Over time this can result in full time residents paying significantly less tax than out of state (snowbirds) on identical properties even though the full time resident consumed the larger share of services. Call it anything you want, but it sure felt like a wealth tax to me when I was paying it.

My statement is correct. Floridians need to apply for the Homestead credit which is not available to out-of-state owners. There is no anti-foreigner tax. No empty houses tax. No speculation tax. No second-home tax. No comparison with BC. – Garth

#98 A Dollar is a Dollar is a Dollar on 05.05.19 at 9:56 pm

#84 Deano

Provide evidence “money is increasingly inherited.” – Garth
—————–

Holy cow, Garth, are you seriously that out of touch with the reality on this issue?

So many quality sources support exactly this issue, here is just one with additional sources noted.

https://www.brookings.edu/blog/social-mobility-memos/2015/01/30/wealth-inheritance-and-social-mobility/

About 45% of all wealth today is inherited, not earned.

Holy Entitlement, Batman!!!

Tax every dollar equally. The only solution we need.

Stats on US billionaires are irrelevant to Canada. – Garth

#99 acdel on 05.05.19 at 9:59 pm

#93 MF

Ha, maybe just maybe Albertans and British Columbians (from the east side), the Territories, understand and are frustrated by the rhetoric and especially from the hypocrisy of liers; if you do not get it then I have no words.

#100 acdel on 05.05.19 at 10:16 pm

Enough with all the negativity; kudos to these ladies that controlled their future. Clap,Clap,Clap, good on you! :)

https://www.dailymail.co.uk/femail/article-6995219/Were-beating-City-slickers-stock-market-too.html

#101 D Tree on 05.05.19 at 10:25 pm

Hoping to get one of the brilliant economic minds that read(or write) this blog to comment on a theory.

What happens when the price of million-plus dollar homes(actual rich people) starts to bump up against the million dollar CMHC cap(barbaric hoards)? Will this cause a domino effect that bursts the condo/particle board mansion market?

#102 fishman on 05.05.19 at 10:27 pm

How does Nonplussed come up with this Bill Gates has all his wealth in Microsoft? Year or two ago the Canadian Senate had a special assembly to raise the maximum % one shareholder could hold in CN from 18% to more. Thats because our Bill owned 18% of CN & wanted to buy more. Or How about when his pal Steve Jobs hit him up for $170 million loan when Apple was going under. Bill Gates reads the Gartho too;like us poor bloggies, & diversifies.
Point Grey lefties are pissed because they are 2nd & 3rd generation &their UBC artsy degrees are not being rewarded by a spot in the petite bourgeoisie. Besides, their political correctness won’t let them say whats really on their mind. Greasy undeserving fureners grabbing the good spots. I know. I went to UBC with them & still got west side R/E. NO, I don’t socialize with them, I, like the SM, have my standards.Too bad,so sad, you’se guys picked the wrong horse & even a tweet from the Trumpster isn’t going to make it right again.

#103 Dave on 05.05.19 at 10:34 pm

My statement is correct. Floridians need to apply for the Homestead credit which is not available to out-of-state owners. There is no anti-foreigner tax. No empty houses tax. No speculation tax. No second-home tax. No comparison with BC. – Garth
Your right, it was called the “Save our Homes” amendment, voted in by local residents who felt they couldn’t compete with all the non-Florida capital coming in and running up real estate values.
Sounds like there might be at least comparison to me.

#104 Linda on 05.05.19 at 10:40 pm

#58 ‘eight’ – since your initial post started with ‘The biweekly kiss our rich asses or else’ followed shortly with ‘or is everything about money to you Garth’ I’d say your own sanctimonious tendencies are pretty well established. Oh, but now its ‘You are arguing against people in your country being able to afford shelter?’. I said nothing of the sort. Stop trying to portray others as sinners to your saint.

#105 GG on 05.05.19 at 10:41 pm

“taxed what Canadians earn, not what they own. Crossing that bridge would open up a tax creep with the potential to erode pension savings, retirement plans and investment portfolios – as well as the market value of your house.”

Garth doesn’t the new school tax do exactly that. Seems we have crossed the bridge and majority is cool with it so I fully expect more to come. As a Canadian physician I am thinking the U.S. is looking better all the time. My biggest expense next year may be immigration lawyers

#106 AB on 05.05.19 at 10:43 pm

#72 Ustabe
Your victim card is showing its colours. Enough engaging for you?

#107 Sail Away on 05.05.19 at 10:53 pm

#15 PeterfromCalgary on 05.05.19 at 4:22 pm

Attention: Rich people in Vancouver

Vancouver does not deserve you or your investments! In Calgary we appreciate you especially if you rent some offices downtown.
————————————————-

#24 Ustabe on 05.05.19 at 5:09 pm

What if I’m a teacher and my wife is a nurse and we have a middle school aged child who thinks she might be gay?
————————————————–

In that case, if you moved to Calgary, you would probably work as a teacher, your wife would work as a nurse, and your child would eventually settle on her sexuality. Does that help?

#108 Damifino on 05.05.19 at 11:20 pm

#98 A Dollar is a Dollar is a Dollar

What? You again!

Why didn’t you answer the question I asked before you disappeared about a year ago? Do you believe there should be no ‘basic’ personal tax exemption amount?

That is, everyone should pay tax right from the first dollar earned per year. That would include a stay at home mom who makes a bit of cash babysitting and a student who makes ends meet painting in the summer.

A buck is a buck. Earn one, pay the tax. No exceptions.

#109 Al on 05.05.19 at 11:23 pm

Progressive wealth tax is the best thing that will mitigate the increasing wealth gap to the best of our knowledge. Why should we stop the increasing inequality? Democracy. Our host seems to be of the opinion that well functioning Democratic society can exist with ever increasing inequality. History gives that belief very poor odds. This all talk though as this will require international cooperation and tracking of wealth. The entrenched interests such as our host and particularly the much more powerful will fight it tooth and nail. Don’t worry 0.1% , the wealth you won’t every need or use will be safe for awhile.

#110 Leo Trollstoy on 05.05.19 at 11:34 pm

#76 crowdedelevatorfartz on 05.05.19 at 8:44 pm

The media already published it

https://bc.ctvnews.ca/mobile/luxury-home-market-experiencing-carnage-in-some-spots-1.4404275

#111 Don haraguchi on 05.06.19 at 12:05 am

“Of course, the agenda is more about attacking wealth than making housing affordable.”

Is thaaaat riiight ?????? LOL !

#112 Smoking Man on 05.06.19 at 1:13 am

Mac on 05.05.19 at 6:35 pm
‘Atlas Shrugged’ playing out in real time. Have fun Canada.
….

John Gault is my nabour.

#113 Nonplused on 05.06.19 at 1:47 am

#102 fishman

Are you saying that because Bill Gates tries to diversify $170 million of his $101 billion that he is not primarily invested in Microsoft? I have to admit I don’t know how much CN he owns or tried to own but it is the same question, just a different company.

If it quacks like a duck, waddles like a duck, looks like a duck, swims like a duck, and flies like a duck, it’s probably a duck. You my friend are a duck. You don’t have the ability to avoid conflating things that are a best remotely related. Bill Gates attempts to diversify his assets in no way do anything other than diversify his portfolio, and everything I said stands, despite small inaccuracies of no account and not worth going over. But yet you do.

#114 Smoking Man on 05.06.19 at 2:06 am

You ever ask you’re self if the newly schooled ever faced famine or war how they would make out.

They can’t even change a tire. Nice job teachers.

#115 Bob Dog on 05.06.19 at 2:11 am

The more I read here the more I lose faith in the people we elect to run this country. The government of Canada has done more to reduce the standard of living for young Canadians than Isis could ever dream of.

#116 Gareth on 05.06.19 at 3:24 am

Garth, beyond being a full time Conservative shill, what really qualifies you to spout this type of drivel?

Try solving the current Conservative disaster in Ontario, before spreading this type of bovine fecal matter about current BC politics and taxation.

#117 Paul on 05.06.19 at 3:44 am

#20 Re-Cowtown on 05.05.19 at 4:59 pm

Public transit is not terrible in Victoria. $4-5 return trip.

#118 Paul on 05.06.19 at 3:54 am

Reading the comments tonight was especially disheartening. Seems like the polarization in this country is getting worse by the day. Still, they are a good pulse on the reactions of what’s going down and a much better insight than the opinion polls. I’ll read through all of them as long as they are around.

#119 Leanne on 05.06.19 at 4:11 am

#63 Nonplused

Not too hard to measure a person’s wealth. Get the person to declare all assets in their income tax return. Details of balances on all global accounts (including a copy of statements from Dec.31st), and an estimate of the value of all possessions (houses, cars, boats, jewelry, etc). For the house value they would likely use the same estimate as was used for property taxes. If you’re randomly checked and have underreported there will be a huge fine to pay.

In countries where their is a wealth tax (several in Europe), it usually only kicks in at amounts above $500k or $750k per person, which ensure that your average person just trying to get by and have a simple retirement will not pay.

Really not so difficult to put in place, and many have argued (including Piketty) that it is one of the most fair and equitable ways to tax while allowing for economic growth.

#120 Captain Uppa on 05.06.19 at 6:25 am

As I said, GTA sales up 16.8% in April YOY. I saw it happening in my own neighborhood.

So … uppa, Uppa, UPPA!!!!

#121 Millennial Realist on 05.06.19 at 6:30 am

Where are the privileged wealthy classes who will help this desperate family, one son living and the other dying because they cannot afford the $250,000 annual drug bill to save his life?

https://www.cbc.ca/news/health/boy-with-cystic-fibrosis-denied-lifesaving-drug-1.5117469

Oh, yeah, they’re spending the same amount on a Maserati and expecting government to subsidize their stock market winfalls with lower tax rates.

Don’t expect any rich folks to step forward to help such a family. This boy will die soon. So sad.

Our system is broken and unjust. Boomers have titled it further into the back pockets of the 1%. Before them, the Greatest Generation knew what needed to be done. People like Eisenhower knew after the war that taxes needed to be much higher on the wealthy to create a stable society. And we grew the fabulous middle class world of the 1950s as a result.

Today?

“Let them eat cake!”

#122 Howard on 05.06.19 at 6:39 am

#72 Ustabe on 05.05.19 at 8:14 pm

AB, I’ve been a voting and at times working member of the Progressive Conservative Party of Canada since I came of age in the late 60’s. I did not leave it, it left me the day Peter sold out for a cushy position, some helicopter rides and a smoking hot wife.

Your ad hominem attempt to paint me as some fringe lefty radical is laughable. But typical of the new Conservative, attack rather than engage.

Have fun with Kenny.

———————————————

The Progressive Conservative party was simply a clone of the Liberals. There was zero ideological difference between them. Each party had leftists and rightists, you appear to be a militant version of the former.

What began in the 90s and culminated in the formation of the CPC in 2003 is that small-c conservatives in Canada finally asserted their electoral power. They’re 35-40% of the population but had to sit on the sidelines until then. Did the declining Laurentian Elite really think their unopposed dominance would go on forever?

#123 BillyBob on 05.06.19 at 6:44 am

#68 Ace Goodheart on 05.05.19 at 7:49 pm
T2 and Wild Bill are both rich trust fund brats and Freeland recently bought a 1.3 million dollar house in Toronto, so no to wealth taxes. Politicians never tax themselves.

In lighter news, just found out how difficult it is to get a couple of cans of craft beer in Toronto on s Sunday.

In Ontario, it is offensive to public morals and decency for beer to be sold after 6pm on a Sunday. It is a Church day after all.

They have Churches in Europe too. But you can get a can of beer in a gas station at 3am in Germany. I guess their churches don’t mind.

I have to wait until Monday, when I can buy beer until 11pm. Monday is a work day. But there is no Church.

Oh and I have to drink that beer in my house. If I take the can across the street and drink it in the park, I will be arrested and the beer will be confiscated. Because, well, that would go against public morals and decency.

And we don’t want that…..I drank a bottle of wine with the wife in the park in front of Notre Dame in Paris.

That was ok. But Toronto parks are not…public morals and decency forbids.

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

This – among many, many others – is one reason we bought an apartment in Prague instead of Canada. Well, ok…the fact that the apartment is 1/4 the price for 100x the culture also had a bearing.

Canada is like the pimply-faced adolescent in a group of adult nations when it comes to attitudes about so many things. It isn’t about any single issue, it’s just a totally different outlook on lifestyle.

Try and explain what you just did to the average European and they’re simply perplexed and bemused.

#124 MF on 05.06.19 at 6:57 am

#115 Bob Dog on 05.06.19 at 2:11 am

“The government of Canada has done more to reduce the standard of living for young Canadians than Isis could ever dream of.”

-The BC government is a provincial government.

You know what else reduces the standard of living for young Canadians? Failing civics courses in high school.

MF

#125 MF on 05.06.19 at 7:00 am

#105 GG on 05.05.19 at 10:41 pm

” As a Canadian physician I am thinking the U.S. is looking better all the time. My biggest expense next year may be immigration lawyers”

-Wait a second, didn’t you tell the admissions officer you went into medicine to “help people”?

MF

#126 jess on 05.06.19 at 7:28 am

etf’s

Vanguard Patented a Way to Avoid Taxes on Mutual Funds (2 May 2019)
the dialysis machine: “heartbeats” transfer vehicles
https://www.bloomberg.com/graphics/2019-vanguard-mutual-fund-tax-dodge/

=========
CMIG

https://www.scmp.com/news/world/united-states-canada/article/3008193/whos-really-behind-vancouver-mountain-boss-troubled
https://www.chinaknowledge.com/News/DetailNews/86308/CMIG-cross-default

#127 Millennial Realist on 05.06.19 at 7:35 am

It’s time to do the right thing.

https://www.huffingtonpost.ca/davide-mastracci/inheritance-tax-income-capital-gains_a_23501405/

#128 jess on 05.06.19 at 7:38 am

wealth gaps

algerians “Le Pouvoir”
‘Get them all out!’ The Panama Papers connections to Algeria’s latest revolution
The Supreme Court has reopened the case of Chakib Khelil, who has fled the country. Khelil is accused of bribery in a case involving contracts awarded by the state-owned oil company… investigation revealed that his wife and his son were beneficiaries of offshore companies linked to a money laundering machine worth $220 million (€197 million) in commissions.
https://www.icij.org/blog/2019/05/get-them-all-out-the-panama-papers-connections-to-algerias-latest-revolution/
https://www.cnn.com/videos/world/2019/03/29/algerian-police-use-water-cannons-on-protesters-demand-president-resignation-cnni-vpx.cnn
Algeria: Protesters keep up demand for political rehaul

========
Why is the president so afraid of Mueller?

JUNE 5, 2016
https://www.nytimes.com/interactive/2016/06/03/us/document-von-der-goltz-mossack-fonseca.html
U.S. authorities charged Von der Goltz, Brauer and another former Mossack Fonseca employee, Ramses Owens, with conspiracy to commit tax evasion and money laundering.Brauer helped U.S. clients evade taxes for years in what prosecutors called a “decades-long criminal scheme,” U.S. prosecutors alleged at the time.
“For decades, the defendants, employees and a client of global law firm Mossack Fonseca allegedly shuffled millions of dollars through offshore accounts and created shell companies to hide fortunes,” said U.S. Attorney Geoffrey S. Berman.

https://www.icij.org/investigations/panama-papers/first-american-charged-with-panama-papers-crimes-appears-in-court/

#129 Tater on 05.06.19 at 7:56 am

#43 Mac on 05.05.19 at 6:35 pm
‘Atlas Shrugged’ playing out in real time. Have fun Canada.

—————————————————————

Ah yes, the fairy tale about the wonders of personal responsibility written by a person content to live on the public dole in her twilight years.

#130 Millennial Realist on 05.06.19 at 8:08 am

Boomer Moisters, the Game is Up!

Do you get it!!??

https://news.sky.com/story/un-report-to-warn-nature-is-in-worst-shape-in-human-history-11712823

The Boomer/conservative/capitalist/1%er hegemony has brought the world to the edge of total collapse.

We MUST CHANGE. NOW.

We must stop the existing capitalist model that benefits only the few at the expense of the planet.

NOW.

NOW.

NOW.

NOW.

Boomers, be part of the change.

Or be run over by it.

WE WILL NOT WAIT FOR YOU.

#131 Headhunter on 05.06.19 at 8:10 am

the biggest factor of ones success in life, monetary that is. Its the family they were born into.

Im at a loss of words and time right now so I’ll just blurt it out. What happened in Van point grey is happening in all the housing hot spots in Canada. No denying it any longer.

Dirty $$$, dirty authorities turning a blind eye, locals are chatting amongst each other and the jig is up. Why play a game you cannot win? So like yellow vest they take to the street

Hard work dont work anymore, for what a 54% tax rate?

Thats why the youth especially young males have “checked out”… soup aint worth the peas.. juice aint worth the squeeze..

#132 crowdedelevatorfartz on 05.06.19 at 8:18 am

@# Leo Trotsky
“The media already published it.”
++++

I cut the cord 3 years ago.
Got tired of paying $100/month for tv that was endless breaks for vapid commercials and “News” that was regurgitated Remax propaganda.

CBC is pathetic and unbelievably left wing biased….but at least I dont have to suffer the indignity of paying for their slop in a monthly bill. They dont cover the housing market all that much unless its a new homeless shelter.

Usually have a man on the street interview breathlessly covering the newest instalment of a rainbow cross walk somewhere in BC .
Or the 6pm “news” is pre-empted by the Stanley Cup playoffs….from April til the end of the season.
Millions of BC fans desperately need to see Toronto Make Beliefs go down in flames once again.
Yes….. its annoying…. but free.

#133 MF on 05.06.19 at 8:27 am

23 BillyBob on 05.06.19 at 6:44 am

Lol news flash that’s called North American culture, not Canadian culture. It’s work oriented with its origins in that European culture you speak of (England and France).

It’s why North America is where it is today. Europe…well…Greeks sure love to enjoy life, but like they have learned, someone has to pay for it.

MF

#134 crowdedelevatorfartz on 05.06.19 at 8:27 am

@#127 Millenial Surrealist
“It’s time to do the right thing.”

*****

Bwahahaha

I get it.
It’s the “right thing” when you’re the net receiver of other people’s money.
Here’s a thought.
Instead of coveting other peoples’ money….. how about trying something different like…… go earn your own….
Oh right.
Work’s hard.
Pass a law and take someone else’s money.
Good job!

#135 DLee on 05.06.19 at 9:01 am

#119 Leanne on 05.06.19 at 4:11 am

Will police, teachers, firefighters and other government defined benefit pensions be included in this calculation? Most of those are going to be valued well over $750k.

And isn’t 750k a bit low of a threshold? If you turn 18 today and invest $6000 into your TFSA every year for the next 40 years and earn an average rate of return of 7% you would be over $1.2 million. You’re telling me this person is “above average” and deserves to be hit hit with a “wealth tax” for being responsible and saving a small part of her income? Disgusting.

#136 IHCTD9 on 05.06.19 at 9:06 am

#13 Howard on 05.05.19 at 4:20 pm

…I am not in favour of confiscatory income tax however and would prefer very high consumption taxes particularly on luxury homes and goods.
______

I’d love a consumption only tax system, but it’ll never happen as it puts too much power in the hands of taxpayers. Government would then live and die via the prosperity (and subsequent consumption) of their constituents.

Much better to tax things essential to modern life with no possible escape route.

#137 DLee on 05.06.19 at 9:12 am

#21 eightlock90 on 05.05.19 at 5:03 pm

I’ve read a number of your comments and am trying to understand your point of view. It would be helpful to understand a bit more about you. Do you work? What type of career do you have? Did you receive any post secondary education? Is more schooling an option? Could you relocate to a more affordable part of the country? I am concerned that you are unable to find any shelter and are on the low income end of the scale and would love to help, but depending on your situation how that help is provided will vary.

Being angry at someone for being successful is not going to help you. There is all kinds of money floating around out there and the fact some rich people live in Point Grey does not decrease the chances you too could get your share of the pie. It might however take time and some hard work.

#138 baloney Sandwitch on 05.06.19 at 9:12 am

Actually Canadian tax burden for labour is less than the US.
https://taxfoundation.org/comparison-tax-burden-labor-oecd-2018/
Looks like the best place to be is Chile & the worst Belgium.

#139 HH on 05.06.19 at 9:17 am

@51 and others of his ilk

“A dollar is a dollar is a dollar…”

Nope, it’s not. Disagree completely with that sentiment, having made several different kinds of dollar myself. (Started working life in a low paid, but super-safe government job. Got sick of it and left for private sector. Working as self-employed contractor nowadays, while endeavouring to follow Garth’s precepts and make some investment dollars.)

And let me tell you: the sweat-soaked dollar of self-employed and entrepreneurs and the nerve-wracking dollar of the investors is TOTALLY different from the sleepy dollar of 9-5 steady job office hamsters.

The amount of risk, stress and hustle involved is utterly different. Hence the differing tax treatments.

This is difficult to grasp and always seems “unfair” to those laid-back folks, who have been in mediocre-paying but steady jobs for their whole lives. They have not had to hustle or face much risk / instability for a long while. Perhaps not since they got into the workforce. And it’s among those that “a buck is a buck” mantra is most popular, I think.

But an economy will always need a certain number of people to face risks of entrepreneurship and investment, rigours and instability of self-employment.

If you completely dis-incentivize all risk-taking and hustling type of behaviour, there’ll be no growth. What would be the point of trying anything that involves any more risk and hustle than usual, if you get taxed into the ground exactly the same as those who never dared to leave their comfort zone / place-of-safety?

#140 T on 05.06.19 at 9:28 am

Ironic waking up to a stock market being pummeled by a few tweets.

And some how that asset is “safe”

We shall see how this unfolds now….Ryan and the gang will likely need to dust off some more charts that show the “hot hand” theory works.

Till it doesn’t

The market has been sitting near record highs. A drop of 200, 300 or 500 points is meaningless. Stop being a drama queen. – Garth

#141 ImGonnaBeSick on 05.06.19 at 9:32 am

#130 Millennial Realist on 05.06.19 at 8:08 am

Have you been up all night? You’re an idiot.

#142 Asterix1 on 05.06.19 at 9:36 am

#120 Captain Uppa on 05.06.19 at 6:25 am
As I said, GTA sales up 16.8% in April YOY. I saw it happening in my own neighborhood.

So … uppa, Uppa, UPPA!!!!
____________________________________________

It’s 16.8% up from the atrociously low numbers of April 2018! Nothing to cheer about, trust me!

Media calling it a “surge in sales”, not in my book. Those newspapers are truly pathetic, bought off by RE dollars.

#143 IHCTD9 on 05.06.19 at 9:39 am

#116 Gareth on 05.06.19 at 3:24 am

Garth, beyond being a full time Conservative shill, what really qualifies you to spout this type of drivel?

Try solving the current Conservative disaster in Ontario, before spreading this type of bovine fecal matter about current BC politics and taxation.
____

Right Gareth.

So how many years have you spent as an elected official in Government?

BTW, Ford is a sip fine wine after experiencing Wynne’s Liberal parade of SJW balloon heads. Our disaster was solved when the Libs got pile drove right into the sub soil at the last election.

So far, I am watching with amusement the total self immolation of BC’s bird-brained dunce cap wearing dingbat NDP government. BC is going down in flames. By the time they smarten up, half the province will be broke, while taxes will have doubled. Sounds like a great plan to me.

Bring Cash suka!

#144 crowdedelevatorfartz on 05.06.19 at 9:50 am

@#130 Millenial Surrealist
“We must stop the existing capitalist model that benefits only the few at the expense of the planet.
NOW.
NOW.
NOW.
NOW.
Boomers, be part of the change.
Or be run over by it.
WE WILL NOT WAIT FOR YOU….”

******
Your shrill, indignant, demanding, caterwauling reminds me of Apocalypto2019.
Amusing but of little benefit.

Here’s a thought.
Save the planet.
Have fewer children.
Or better yet.
Fewer tattoos

#145 SunShowers on 05.06.19 at 9:57 am

Provide evidence “money is increasingly inherited.” – Garth
——————————————–

As per Piketty in 2015, approximately 60% of US and FR/DE/UK wealth is inherited. It historically peaked in the low-mid 60% range in the 1920s and 1930s, fell as low as 50% in the US (40% in Europe) during the 70s and 80s, and has now almost risen back to the historical high since then.

I don’t see why the trend for Canada should be any different from those 4 nations.

http://piketty.pse.ens.fr/files/AlvaredoGarbintiPiketty2015.pdf

Will you be refusing to pass on anything to your kids? I hope so, lest you be a hypocrite. – Garth

#146 Prairieboy43 on 05.06.19 at 10:15 am

Vancouver Canucks need a “Stanley Cup”. We as Canadians should be cheering for Vancouver to win the Stanley Cup. Should Canucks win, the idiot Vancouver Canucks fans will destroy, Burn Vancouver to the ground. This Was witnessed a few years ago, in Vancouver’s loss to Bruins. Vancouver will take care of itself “Naturally”, just needs a catalyst.

#147 Lag in HPI on 05.06.19 at 10:15 am

Someone figured it out!

Teranet HPI lags eight months, EXACTLY!

Look at this correlation with sales/newlistings.
uncanny!

https://twitter.com/capeconcanada/status/1125391616058040320?s=21

Paging Real Mark.

#148 Bobby on 05.06.19 at 10:16 am

For #86 MF,

You missed my point. May I suggest you educate yourself as to the swelling public sector ranks. Much of the growth in the jobs sector of the economy is in the public sector. It is well documented. Moreover, the so called sunshine lists continue to swell.

The fact that public sector pensions at all levels are unsustainable is well documented and is a huge unfounded liability that will have to be borne by the taxpayer. Have you looked at the main issues of the post office lately?

No, I don’t work for the public sector, left decades ago.

#149 Vampire Studies on 05.06.19 at 10:29 am

119 Leanne

“it usually only kicks in at amounts above $500k or $750k per person, which ensure that your average person just trying to get by and have a simple retirement will not pay.”

Laughable, and sad. Somewhere near the average net
worth of a 65 yo Canadian.

dumb comment.

#150 BillyBob on 05.06.19 at 10:34 am

#93 MF on 05.05.19 at 9:23 pm
16 BillyBob on 05.05.19 at

What’s this we agree on something???

BCers and Albertans are clearly the most miserable of all Canadians from what I keep reading.

MF

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

Well, I don’t know about that but if simplistic generalizations are allowed, I’d like to point out that Ontarians are by far the dullest, most humourless citizens in the nation (and most indebted). Either coast, the Prairies, Quebec, at least have some character.

++++++++++++++++++++++++++++++++++

#133 MF on 05.06.19 at 8:27 am
23 BillyBob on 05.06.19 at 6:44 am

Lol news flash that’s called North American culture, not Canadian culture. It’s work oriented with its origins in that European culture you speak of (England and France).

It’s why North America is where it is today. Europe…well…Greeks sure love to enjoy life, but like they have learned, someone has to pay for it.

MF

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

Nope. To use the example Ace cited, the Americans sell beer in gas stations as well.

You flatter Canada by trying to lump it in as “North America”. Most of Canada’s economic success comes from riding the coattails of the Americans and their close proximity.

It’s amusing how Canadians always trip over themselves trying to distinguish themselves from Americans when they think it somehow makes them look better, then quickly distance themselves when it suits them lol.

—-

“Interesting question: If you translated our incomes into U.S. dollars using exchange rates that accurately reflected cross-border differences in purchasing power, how many Canadians would make it into the top fifth (or quintile) of the U.S. income distribution? Answer: just 5.2 per cent of us.”

https://business.financialpost.com/opinion/william-watson-canadas-income-ladder-is-easier-to-climb-than-americas-but-its-way-smaller

#151 IHCTD9 on 05.06.19 at 10:34 am

#98 A Dollar is a Dollar is a Dollar on 05.05.19 at 9:56 pm

Holy cow, Garth, are you seriously that out of touch with the reality on this issue?

So many quality sources support exactly this issue, here is just one with additional sources noted.

https://www.brookings.edu/blog/social-mobility-memos/2015/01/30/wealth-inheritance-and-social-mobility/

About 45% of all wealth today is inherited, not earned.

Holy Entitlement, Batman!!!

Tax every dollar equally. The only solution we need.

____

From the link:

“The rule means a lot of lost revenue: in 2012, the OMB estimated that “stepped-up basis” would cost the government $400 billion over 5 years.”

80 Billion per year in a country carrying twenty two thousand billions in debt?

Wow, US inheritances must be so massive and relentless for the government to “lose out” on such an “enormous” pile of money.

Back up the trucks.

#152 Pepito on 05.06.19 at 10:40 am

Wealth tax is nothing new. Has been around in the EU for some time. In Spain where we live it starts at 600,000 euro. Canada is socially and morally behind on this as it is also on housing policy.

#153 old dinosaur on 05.06.19 at 10:41 am

On the topic of wealth tax. Why don’t we hit the economy at both ends?

I think forced labour for all welfare recipients to build low cost housing for politician’s families is what we need.

#154 oh bouy on 05.06.19 at 10:54 am

Good morning curmudgeons.
Beautiful day out there, feeling a little to good about life.
Tell me again how bad Canada is and how miserable your lives are.

#155 Pfft on 05.06.19 at 10:57 am

@#118 Paul on 05.06.19 at 3:54 am
Reading the comments tonight was especially disheartening. Seems like the polarization in this country is getting worse by the day. Still, they are a good pulse on the reactions of what’s going down and a much better insight than the opinion polls. I’ll read through all of them as long as they are around.
_________________________________

not at all.
just the vocal minority.

#156 IHCTD9 on 05.06.19 at 11:02 am

#127 Millennial Realist on 05.06.19 at 7:35 am

It’s time to do the right thing.

https://www.huffingtonpost.ca/davide-mastracci/inheritance-tax-income-capital-gains_a_23501405/
_____

“…would bring in at least $2 billion for the federal revenue annually. The CCPA suggested families in Canada must be receiving an inheritance of more than $5 million before the tax would apply.”

2 Billion? LOL, what a waste of time…

The Feds would blow a least a billion trying to collect. A year later, the rich folks will have developed a way to avoid the tax, and it’ll be another Trudeau style boondoggle wealth tax that just ends up resulting in zero revenues.

Some day MR, folks like you will realize that there just aren’t enough rich folks in Canada to help anyone out much – even at 60-70%+ tax rates.

Maybe you’ll also come to learn that levying a new tax does not mean any kind of new revenue is coming in. Odds are probably 50/50 you’ll get zero. Chances are 99% what little the Government does get – will be wasted on some crap and not do anyone any good anyway.

Spend your time thinking about things that’ll actually work instead of BS like an inheritance tax.

#157 Captain Uppa on 05.06.19 at 11:18 am

#142 Asterix1 on 05.06.19 at 9:36 am
#120 Captain Uppa on 05.06.19 at 6:25 am
As I said, GTA sales up 16.8% in April YOY. I saw it happening in my own neighborhood.

So … uppa, Uppa, UPPA!!!!
____________________________________________

>>It’s 16.8% up from the atrociously low numbers of April 2018! Nothing to cheer about, trust me!

Media calling it a “surge in sales”, not in my book. Those newspapers are truly pathetic, bought off by RE dollars.>>

+16.8% is UPPA. That’s just math.

#158 SunShowers on 05.06.19 at 11:31 am

Will you be refusing to pass on anything to your kids? I hope so, lest you be a hypocrite. – Garth

————————————-

Is anyone seriously arguing for a 100% estate tax with no exemptions, though? Seems like a bit of a strawman to me.

For example, I’d be ok with an exemption of $500,000 in assets, with an additional $500,000 exemption for the primary residence. Anything in excess of that could be taxed in progressive brackets, starting at about 40% (which seems to be the baseline elsewhere), and up to 70% on the value of estates over $5m or something.

#159 Steve on 05.06.19 at 11:35 am

“I tried to warn my millionaire friends about showing off. I am so damn rich. But I live in a 600 square foot cinder block box with curtains. From the street it’s like a Soviet bloc playset piece. No protests outside my house! They think I’m so poor that I get free food left on the doorstep all the time. It’s showing off that caused all of this.” (Fictional quote from fictional rich/modest human.)

#160 IHCTD9 on 05.06.19 at 11:46 am

“In the U.S. in 2016, the inheritance tax affected just 0.2 per cent of the population — families receiving inheritances of $5.49 million per person — but brought in $18 billion in tax revenue.”

LMAO! Total joke.

Shouldn’t they be raising that tax a bit? They need TRILLIONS, not a measly 18 Billion . Isn’t just the US annual deficit alone typically like 7-800 BILLION?

Total joke. Just love how all these advocates are typing up a storm trying to make it look like an inheritance tax is this great thing.

It’s a drop in the bucket. Will do squat. The only reason to get enthusiastic about an inheritance tax is if you like to see money forcibly carved out of the rich.

#161 TriCity on 05.06.19 at 12:04 pm

… no loss of altitude here
https://www.therecord.com/news-story/9336416-average-house-prices-in-kitchener-waterloo-reach-all-time-highs/

#162 jess on 05.06.19 at 12:12 pm

1960 china?

How do the chinese millennials feel about Xi’s idea?

https://www.theguardian.pe.ca/business/to-spur-rural-development-china-to-send-millions-of-students-on-volunteering-trips-301072/

#163 SunShowers on 05.06.19 at 12:12 pm

#160 IHCTD9 on 05.06.19 at 11:46 am
Shouldn’t they be raising that tax a bit?

———————————————-

The estate tax RATE isn’t as much of a problem as the fact that the tax base has been narrowed to the point of uselessness.

In 2001, the exemption was $675,000. Indexed to inflation that would put the 2016 exemption at about $915,000. Instead, it was hiked up to $5m + indexed through legislation in 2011, bringing it to nearly $5.5m in 2016.

Not to mention the rate went from 55% to 40% in the same period, but messing with the exemption is what really killed it.

#164 Damifino on 05.06.19 at 12:18 pm

#139 HH

I’ve earned several types of dollar in my lifetime and I thank you for saving me the trouble of typing a similar post. Unfortunately, your effort is only for the benefit of folk not so intransigent as mister Fungible-Buck.

He only drops in when the discussion turns against the wicked risk takers lining their pockets while supplying jobs to the proletariat. He won’t stay too long.

#165 PastThePeak on 05.06.19 at 12:21 pm

Canada doesn’t have an inheritance tax, but any capital goods (property, equities, bonds, businesses) are deemed sold upon death (when no surviving spouse). Any capital gains on that property “deemed sold” must be paid by the estate. Any registered plans like RRSP/RRIF must be sold and income tax paid.

The exceptions are principle residence, and lifetime capital gains exemption of $800K. This lifetime exemption is applicable for
– Qualified small business corp shares
– Qualified farm property
– Qualified fishing property

So someone who has a house and a cottage, the secondary residence (say cottage) has to have the cap gains paid on it. It can’t be provided tax free to the children. Same for the non-reg equities, etc.

Not the same as an inheritance tax, but given Canada’s high tax rates, a lot of tax may be paid. Perhaps the 0.1% have ways of shielding this with private trusts, but it is certainly not the case for most of the “demon” 1% that are the object of much hatred on the blog.

#166 JB on 05.06.19 at 12:46 pm

#112 Smoking Man on 05.06.19 at 1:13 am

Mac on 05.05.19 at 6:35 pm
‘Atlas Shrugged’ playing out in real time. Have fun Canada.
….

John Gault is my nabour.
……………………………………………………………………
Wow you must have been completely blitzed when you typed this Smoking Man!

First of all it is spelled Galt, not Gault.
Secondly it is spelled neighbour or neighbor is preferred in American English, and neighbour is preferred in all the other main varieties of English including ours. Please pick one or the other.
Thirdly you must be now living in Guelph area.
Lastly the other John Galt is as fictional as you are delusional.
BTW We have tons of fun here in Canada, hockey, hockey and fishing. SGFY!

#167 Mattl on 05.06.19 at 12:49 pm

This subject isn’t as black and white as people want to make it. On one hand, inequality is growing and thats a problem. The tax system is complex. I’m not convinced passive, generational wealth should be so tax advantages to say, income earned through labour. And a realtor, or a guy with a few contracts is really not a corp. Sure they don’t have pensions but who does anymore.
Private sector DB pensions don’t exist anymore.

And if equality is the goal lets reevaluate public pensions. Two teachers will retire with the equivalent of 5mm funded, those same two in a DC plan making same contribution would end at half that. What is equal about that?

And why go after a guy that owns a 65mm home in Point Grey? Properties taxes on that would pay multiple teachers salaries and close to zero chance that owner uses the services those tax dollars go to. Talk about misguided. There IS a housing problem in YVR but it has nothing to do with 80 yo mansions – these places have always been for the super rich. Was there ever a time where retail min wage workers lived in the best areas of Van?

#168 IHCTD9 on 05.06.19 at 12:54 pm

#163 SunShowers on 05.06.19 at 12:12 pm
#160 IHCTD9 on 05.06.19 at 11:46 am
Shouldn’t they be raising that tax a bit?

———————————————-

The estate tax RATE isn’t as much of a problem as the fact that the tax base has been narrowed to the point of uselessness.

In 2001, the exemption was $675,000. Indexed to inflation that would put the 2016 exemption at about $915,000. Instead, it was hiked up to $5m + indexed through legislation in 2011, bringing it to nearly $5.5m in 2016.

Not to mention the rate went from 55% to 40% in the same period, but messing with the exemption is what really killed it.
_____

5+ Million sounds about right for an exemption. Once you’re down to 2 million and less you risking taxing the crap out of many regular working families who sacrificed their entire lives to get a nest egg together.

The real problem is that there just aren’t enough multi-millionaires passing on 7 figure inheritances to make a difference to anyone. You’d have to tax the regular working stiff households (as per usual), and a 915K exemption would certainly do that.

If our Government ever decided to pound the crap out of the few real rich with an inheritance tax, they’ll get the same lesson France did.

#169 IHCTD9 on 05.06.19 at 12:58 pm

“Leaders who create the right conditions to keep millionaires home will find that all of their residents — not just the wealthy ones — are richer for it.”

https://www.nytimes.com/2018/06/02/opinion/sunday/millionaires-fleeing-migration.html

Lots of good points on what it means when they bail, and why you don’t want them to.

#170 SunShowers on 05.06.19 at 1:14 pm

#168 IHCTD9
5+ Million sounds about right for an exemption. Once you’re down to 2 million and less you risking taxing the crap out of many regular working families who sacrificed their entire lives to get a nest egg together.

——————

Except that wasn’t happening in the US at the time. Working stiff households weren’t getting taxed to oblivion by the estate tax in 2001. So why should we expect it to happen now with the inflation adjusted figure?

Going back to the 1970s, the exemption was so low that indexed to inflation today it would be ~$250,000, and that’s when America actually had a middle class.

Coincidence? I think not.

$500,000 exemption per person, with an additional $500,000 (combined) exemption for the principal residence, with both indexed to inflation from 2019. I think that’s more than fair.

#171 Robert Ash on 05.06.19 at 1:30 pm

What discourages me, is the comments today that indicate many are so frustrated and lack confidence to get out and make a good living… I have never met someone personally that would say to another … I want what you have… the minute the Hard Worker, and the Guy or Gal that invented the next big “thing” are demonized this will be the Death rattle for all of Canada. It is surrender, to give up and think I can ‘t do this or achieve that… and it is really sad… Like Garth mentioned, Canada is 90 % empty. There are lots of good places to live, other than VCR or the GTA, and lots of Opportunity. When the youth of the Country have lost their zeal, who caused it…. I think the Tax Burden being placed on all Canadians, Rich or Low Income, is what is the Problem… Just too much taken off each pay check today… Not enough left over for young Canadians, the irony is these young Canadians, are now turning to the Government to provide the solutions, while increasing the States role, and further exasperating their futures… Kind of a catch 22… But to a large extent this is irrelevant, as 4.5 Billion Asians, will just start to purchase the country, and implement their own work ethic… and that will be scary to the NDP crowd… and it should be… Canada needs to do just the opposite, to what socialist want today… since the rest of the Globe, is full on for Personal and Family Independence… Even China, promotes, Billionaires, after learning Fundamental Theoretical Communism … just does not work…

#172 Smartalox on 05.06.19 at 1:37 pm

@Flop:

Despite that huge hit on the West Van property that you posted, the REBGV stats for April showed a 7% increase in sales year-to-date over last year (7 more houses sold), in West Vancouver, and a whopping 23% gain in median sale price (Median Detached Home Sale price in West Vancouver was $2.925M in April 2019).

So the $5Million mark-down from a $12.9M asking price was a big hit, but the selling price was still significantly more that the median. The stats would suggest healthy upward trend (at least in West Van, it’s pretty harrowing everywhere else) but clearly, individual results vary widely.

Incidentally, listings in West Vancouver are also up 53% in April 2019 compared to March 2019.

Too bad the Real Estate Board doesn’t track the difference between median listing prices and median selling prices.

I’m sure that asking prices are tracked in the same database as sold prices – they’re just not published by the cartel.

Although it could explain why the HPI franken-number (a Quasi-reflection of market sentiment) is so wildly divergent from reported values.

#173 miketheengineer on 05.06.19 at 1:42 pm

Garth et al:

Stuff is expensive…homes are expensive….and out of reach for most…If a couple has combined income of 150k, the most they should buy is home with mortgage of 450 (assuming a downpayment of 50k). Even then they are going to struggle to keep up with the JONES next door.

From Zolo, Median DETACHED prices for various GTA city range from 1.5M on the high end to 800k on the low end.

Untill the price comes down…..Average “Joe 6 Pack” is currently out of the market.

Median prices need to be reduced a futher 300k….at least that is what I see.

The “stuff” is too expense here…way too expensive. Oh and average sold price from zolo for Toronto was 915k.

When I purchase my next piece of RE…it ain’t going be in GTA, and likely not in Ontario, because I can’t afford what I want, and what is available is not acceptable in my affordability limits. Whomever is purchasing 915k properties must have dual incomes, and both working for the Federal and Provincial Governments, earning 200k….and there must be thousands of these peoples.

#174 MF on 05.06.19 at 1:52 pm

8 Bobby on 05.06.19 at 10

Again, There is no “swelling” of the ranks of public sectors in Canada. It’s grown since the 1970’s, but by a minuscule percentage, and still stands at a much lower percentage than such “horrible” countries like Sweden and Norway.

Your argument is a red herring.

Look where our spending goes. The real problem: an aging demographic requiring more and more benefits.

MF

#175 Smartalox on 05.06.19 at 2:05 pm

Nope. In most cities there are enclaves where the well-heeled congregate on big lots, in grand houses, behind gates. Usually those people are entrepreneurs, company owners or founders, corporate executives or occasionally old-money inheritors. Collectively they employ masses of people, pay the mortgages on untold numbers of employee houses, fork over huge property tax and shovel millions into the economy building their castles.

I have to question this: the people who own these ultra mansions are not feudal lords paying workers directly. The people who founded corporations that employ hundreds of workers that then pour money into the economy, may have established the infrastructure and mechanisms for doing so, but it is the corporations themselves, and the people that work for them, that earn income to justify their continued employment – plus profits – of course.

If there’s no ‘business case’ for keeping employees, they’re not kept around for long.

The founders get repaid for the risk that they took on when they started their enterprise, as they should, and investors who take a risk to underwrite the value of the company (allowing the company to pay present wages with future profits) get repaid for their share of that risk out of the profits earned as well.

The question of wage equality has to center on whether the compensation earned by the employees of the corporation are in line with the value that those employees bring to the company – by allowing the company to earn revenue, cut costs, or both.

Those questions are abstract, and hard to answer. How much value is gained if products don’t fail? If a circuit doesn’t fail, not resulting in a malfunction, thereby avoiding a billion-dollar recall, is it worth a billion dollars?

No. It’s worth whatever profit it earns (after the costs of production are factored in).

Losses are still attributed to ‘bad luck’ instead of assignable causes (i.e.: bad design or cheap production), which, incidentally, shields those directly responsible for bad design or cheap production from liability (risk) associated with those actions. Instead, that risk is attributable to owners, and distributed to shareholders, manifested as costs levied against profits, and the value of the company.

I know that even though I am good at what I do, and very diligent in my work, I’d prefer to take the hit for any defect as a shareholder than be held personally and singularly liable. As a person of conscience, I’d never be able to operate under that sort of pressure.

#176 AGuyInVancouver on 05.06.19 at 3:09 pm

#15 PeterfromCalgary on 05.05.19 at 4:22 pm
Attention: Rich people in Vancouver

Move yourselves and businesses to Calgary! We love rich people. We love you so much that our new Premier Jason Kenney is lowering the Corporate tax from 12% to 8% over his first term.

We have lots of prime office space available for your corporations and you can buy about 5 times the house per dollar here in Calgary.

Vancouver does not deserve you or your investments! In Calgary we appreciate you especially if you rent some offices downtown.
_ _ _
Continuing the proud Alberta tradition of giving away tax breaks to wealthy oil companies. Remember how Stelmach caved on royalties? This is why Norway is rich and Alberta is poor.

#177 IHCTD9 on 05.06.19 at 3:13 pm

#173 miketheengineer on 05.06.19 at 1:42 pm

From Zolo, Median DETACHED prices for various GTA city range from 1.5M on the high end to 800k on the low end.

—-

It’s going to take a while to come around IMHO, and then – how much will it?

In the late 90’s Toronto SFD’s were nudging up near 300K, I bought out here in the sticks a similar house (but way more land + outbuildings) for 123K.

My place now should go for 300-350K, which means a same priced Toronto SFD should go for 850K or so.

My place is low end. A (regular) high end place around here is 600-650K – so Toronto high end should be ~1.6 Million.

Going by the above ratios – it looks like Toronto house prices are right around the same as they were back then comparatively speaking – which makes me think they are about in the “normal” range.

Now consider interest rates were more than double what they are now back in the 90’s. Maybe wages just aren’t keeping up with everything else. Houses should be more affordable today at the prices you posted than they were back in the 90’s at the prices I posted (apples/apples just because of rates).

#178 Remembrancer on 05.06.19 at 3:14 pm

#173 miketheengineer on 05.06.19 at 1:42 pm

From Zolo, Median DETACHED prices for various GTA city range from 1.5M on the high end to 800k on the low end.

—————————————
Which GTA cities? Like try looking east, just b/c you say its so, doesn’t mean it is…

#179 april on 05.06.19 at 3:17 pm

#172 – Why would you even give stats from the REBGV the time of day…?

#180 Briana on 05.06.19 at 3:38 pm

Foreign home ownership should be completely banned in people that are not working nor actual citizens and tax paying individuals. The world population is growing too much too fast for this to continue happening and Canada needs to wake up and have affordable housing options for working class citizens. The UN hit it on the mark with last week’s article about Canadian housing. Those foreign owners who have current homes here should have to pay premium on owning home here whether it be property taxes or some sort of other tax and support the economy, businesses and local labour markets and social programs!!

#181 Follow the Money on 05.06.19 at 3:40 pm

If the intent is to gradually move towards a wealth tax, and if we have a short supply of truly wealthy people, then perhaps the target of Los Federales would be to implement a capital gains tax for real estate on principal residences. While I don’t like the idea, would it not be a stark and gob-smacking thump to show, once again, how our esteemed, genetically enhanced and gifted thrice over blog host is right yet again in his admonishments to diversify and seek true balance…

#182 jess on 05.06.19 at 3:41 pm

WASHINGTON—The Federal Reserve identified elevated asset prices, historically high debt owned by U.S. businesses and rising issuances of risky debt as top vulnerabilities facing the U.S. financial system, according to a report released Monday

“The Federal Reserve updates its heat map internally on a regular basis but the ongoing results are not available to the public.” OFR also indicates that the Fed’s heat map does not include contagion risk.

http://wallstreetonparade.com/2019/05/feds-powell-says-financial-risks-are-moderate-these-charts-dont-agree/

==================
Kraft Heinz to Restate Financial Results Following Investigation

Kraft Heinz said it is restating a host of its financial results dating as far back as 2016, after it determined they included certain misstatements. 4 minutes ago

#183 IHCTD9 on 05.06.19 at 3:52 pm

#170 SunShowers on 05.06.19 at 1:14 pm

$500,000 exemption per person, with an additional $500,000 (combined) exemption for the principal residence, with both indexed to inflation from 2019. I think that’s more than fair.
_____

That’s more than fair for the government, and highway robbery for the working stiff. Retirement destroyer for the non-rich sacrifice makers.

This is 2019, a shack costs a mil in the GTA.

5 million+ exemption per head to comfortably steer clear of those who worked hard to save and invest. Index this to inflation X2 to be safe. 10 Million per head if the person(s) has kids. No more “final tax return” on the deceased if Inheritance tax were to be implemented. Fingers off the CG’s on the primary residence.

That’s a bare minimum.

If we want to be morally correct – the government gets zero inheritance tax. They didn’t earn it, they don’t get to decide what happens to it.

#184 Northerner (for now) on 05.06.19 at 3:57 pm

Boy, the socialists are out in full force, trying to make their wealth-hating cases, even on this blog! Sacrilege!

Speaking of socialists, my wife and I being born and living our entire lives in BC, are about done with the place. All BC is becoming is an anti-business, protester, socialist haven. It is a sick province, and will just get worse under the NDP.

We are in the process of deciding where to retire to, and were considering either Kelowna (nice weather, short winters, but lots of yahoos especially in the summer), or Calgary (cold winters, but sunny, and lots to do, unlike Kelowna in the winter). Both have good airports and hospitals (we are getting up there).

With all of the taxes (property transfer etc) and the socialist NDP picking our pockets at every chance (ICBC rates through the roof), we’re leaning towards Calgary – much lower taxes and fees, and people are actually friendly – something that is lacking in places like YVR (and even Kelowna to some extent).

Even if we could afford to (well we can, but don’t want to), I wouldn’t even consider a move to Vancouver, Victoria or the GVRD – way too rainy and depressing in the winter (we lived in Vancouver for over 10 years and lived our younger years elsewhere in the lower rainland). And did I mention unfriendly and chock-a-block full of socialists, potheads, and protesters? They’re welcome to the place.

#185 jess on 05.06.19 at 4:09 pm

legacy cases from the Irish property crash:

https://www.irishtimes.com/business/commercial-property/sean-dunne-did-not-transfer-assets-to-wife-to-evade-creditors-us-court-told-1.3882734

Seán Dunne-Gayle Killilea asset transfer trial kicks off in US
Long-running action against Carlow developer and wife goes before jury in Connecticut

…”The 64-year-old businessman has previously said that he transferred the money for “love and affection and children”, “having a happy marriage”, “cooking the odd meal” and “washing the odd shirt”.

‘Straw men’

Mr Coan has accused the Dunnes of operating a long-running scheme to conceal assets from him and creditors “through the use of shell companies, trusts and other straw men” to move assets and change the ownership of assets in the US, Ireland, continental Europe, the Isle of Man, Cyprus and South Africa.

He has alleged that they launder their money through “multistep financial transfers, using a constellation of financial institutions located throughout the world, directed by Dunne’s financial control person, James Ryan”.

https://www.irishtimes.com/business/commercial-property/se%C3%A1n-dunne-gayle-killilea-asset-transfer-trial-kicks-off-in-us-1.3881721

#186 David Pylyp on 05.06.19 at 5:41 pm

Not only BC see the 1% ers as lunch meat

NY state Mansion Tax
The new Mansion Tax, while it will continue to charge buyers of those $1 million one bedroom mansions described above at 1%, will charge significantly more as the prices go up. A $3 million deal will pay 1.5%; a $6 million deal will pay 2.25%; a $12 million deal will pay 3.25%; and anything above $25 million will pay 3.9%. In addition, the state transfer tax for city dwellers will increase from 0.4% to 0.65%.

https://www.forbes.com/sites/fredpeters/2019/04/02/what-does-the-new-mansion-tax-mean-for-new-york/#6247c2166fbc

http://www.trebhome.com/index.php/buying/calculators

Toronto had 20 + years of positive growth and nary saved an acorn for dark times….

#187 jess on 05.06.19 at 6:18 pm

These guys are predators’: Condo owner says home turned into Airbnb ‘ghost hotel’

Residents says their building on St. Patrick Street in Ottawa has been host to a so-called ‘ghost hotel’ since the beginning of the year. (Jennifer Chevalier/CBC)

An Ottawa man who says his tenant is renting his condo out on Airbnb against his will — and the condo board’s rules — is complaining he feels violated by predators.

Jason Yung moved to New York City a few years ago to pursue a master’s degree and found a new tenant in January to rent his ByWard Market condo.

Almost immediately, he had complaints from neighbours in the small 22-unit St. Patrick Street building about the number of people coming and going from his apartment….

Multilisters’ behind many Ottawa Airbnbs

With only seven listings, however, “John” isn’t even one of the most prolific hosts in Ottawa.

According to a CBC News analysis of Airbnb listings for entire homes or apartments on April 10, that distinction belongs to someone going by the name “Genevieve.”

Read CBC’s methodology here

When CBC analyzed the listings, “Genevieve” was listing 75 properties.

In all, there are 210 listers in Ottawa offering more than one property for rent. Otherwise known as “multilisters,” they manage a total of 789 properties, representing 48 per cent of the city’s listings.

https://www.cbc.ca/news/canada/ottawa/condo-owner-violated-airbnb-ghost-hotel-1.5122219

#188 Bobby on 05.06.19 at 8:58 pm

MF, you should get out more.
Public sector growth, including all three levels of government, accounts for a large percentage of any job growth here in Canada.
Not a red herring but solely fact.
Taxes are rising to fund this public service but do you see a rise in the quality of services available. I certainly don’t and neither do many of the people I know.
I once asked a clerk in Service Canada, my 7th call trying to get CPP sorted out, why they call it the public service when there is no service.
Yes, an aging demographic pays a large part.

#189 Paul on 05.07.19 at 3:17 pm

127 Millennial Realist on 05.06.19 at 7:35 am

It’s time to do the right thing
_____^______________________^^^^^^^^^^^________^^^_^^^^___________________Yes the right thing. people should give. after tax money to you.

#190 Paul on 05.07.19 at 3:27 pm

183 IHCTD9 on 05.06.19 at 3:52 pm
#170 SunShowers on 05.06.19 at 1:14 pm

$500,000 exemption per person, with an additional $500,000 (combined) exemption for the principal residence, with both indexed to inflation from 2019. I think that’s more than fair.
_____

That’s more than fair for the government, and highway robbery for the working stiff. Retirement destroyer for the non-rich sacrifice makers.

This is 2019, a shack costs a mil in the GTA.

5 million+ exemption per head to comfortably steer clear of those who worked hard to save and invest. Index this to inflation X2 to be safe. 10 Million per head if the person(s) has kids. No more “final tax return” on the deceased if Inheritance tax were to be implemented. Fingers off the CG’s on the primary residence.

That’s a bare minimum.

If we want to be morally correct – the government gets zero inheritance tax. They didn’t earn it, they don’t get to decide what happens to it.

He just a lazy sob wanting to take the fruits of others labor and sacrifices.