First the attack of dunces, then the drones.
Kicking off the election contest, T2 announced that people without money should be able to buy $800,000 houses and taxpayers oughta handle a hunk of the mortgage for them. Then Don’t-call-me-Stephen Scheer announced a universal tax cut in a country where 40% of families already pay no net tax.
Based on the party’s calculations, the average single taxpayer would save about $444 a year. A two-income couple earning an average salary would save about $850 a year. “We’re going to deliver a tax cut targeted specifically at taxpayers in the lowest-income tax bracket. This means that every Canadian will see their income taxes go down and those in the lowest tax bracket see the biggest benefit of all,” Scheer said at a campaign stop in Surrey, B.C. “This means more money to pay the bills, to save up for your kids’ education or maybe even finally afford a family vacation,” he said.
Then Trudeau said the government would give thousands of people without business experience $50,000 each to start businesses. That should work out well. And soon the Cons will announce their plan to blunt the stress test and “make homes more affordable.” The vote-buying is remarkable, and comes after four years of fat deficits, largely due to the billions being given now to people who procreate.
Of course voters vote in their naked self-interest rather than the national good, so this blog will try to shut up and behave itself. However the latest housing numbers and economist comments this week underscore the idiocy of the Lib and Con real estate pumping. With mortgage rates in the ditch, how can any of this be good?
You can almost hear BMO’s Bob Kavcic smirk a little as he says. “Yet again, the housing bears are going to have to take their medicine. A solid job market and population flows persist across much of the country, amplified by a roughly 1% drop in five-year fixed mortgage rates since late-2018. This momentum should continue into the fall.”
The bank (it lends mortgages) looked at the latest numbers and concludes the recent rate plunge has changed everything. The sales-to-new listings ratio has recovered for the first time since the stress test was created. Months-of-inventory has dropped sharply. Prices are stable . Van sales are up by half since April. Toronto prices have reclaimed their 2017 peak. Ottawa and Montreal are hot with 80% of NCC listings absorbed in a month. Halifax is solid as newcomers flood in.
In short, says BeeMo, 2.5% five-year mortgages are like crack cocaine to the homeless moisters. Or should that be a Puffco Plus +V2 Wax/Oil vape pen?
In any case, all that a shared-equity mortgage, gutted stress test or 30-year amortizations will do is fuel the sale/price fire, swell the cost of the most affordable real estate and kick up debt. The day of reckoning is probably delayed. And worse.
Now to the drones.
As you know, some irascible Iranians arranged an attack on Saudi oil facilities, scuttling up to half that country’s production and 5% of global supplies. As a result oil prices surged 10% in a day (the most ever) and suddenly people were talking about $100-per-barrel crude again.
Battered energy stocks leapt higher, US markets fell (a big spike in gas prices hurts the economy), the loonie popped and a lot of money once again flowed into bonds, driving yields lower and prices higher. So, volatility. Instant change.
The point worth noting is that the drone attack was unknown, unexpected and weird. Like Nine Eleven or the latest Trump Tweet, this is something that can instantly impact stock exchanges, bond markets and investor psychology. There’s no way DIY investors with eight or ten fav stocks and twenty minutes a week to devote to their retirement nestegg can prepare for this stuff, or react in time to prevent an impact.
So the drones should remind you of our simple rules of portfolio management:
- Never exit an asset class.
- Do not own individual equities unless you have a bundle and like volatility.
- Set weightings for various assets and stick to them. When they fall out of whack, rebalance.
- Eschew mutual funds. Crazy fees.
- Sell the winners and buy the losers to regain that balance. That includes preferreds.
- Keep a quarter of your portfolio in US$-denominated stuff.
- Own the right amount of bonds for the right reason – which isn’t to collect interest
- Be balanced and diversified since you never know what’s coming.
- Stop watching BNN. They don’t know, either.
123 comments ↓
The latest credit market summary data table from Statistics Canada (to the end of June, 2019):
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3810023401
Its obvious for anyone to see Trump needs a distraction again as Manhattan district attorneys have subpoenaed 8 years of Trumps tax returns. It stinks of the famous WMD crap from the bush years as a reason to invade the middle east.
The US has told at least one US ally in the Middle East, that they have intelligence showing that the launch was “likely” coming from staging grounds in Iran, but they have not shared that intelligence yet. “It is one thing to tell us, it is another thing to show us,” said a diplomat from the region. A US official separately tells CNN that the US has assessed that the attack originated from inside Iran. The official spoke on condition of anonymity.
CNN
Lumber sales are down…..BC mills laying off by the thousands.
China boycotting Canadian agro.
Our irrelevant PM may or may not barely win the election.
2.5 % Mortgage rates sucking in the last of the house horny.
The repo’s will be epic when rates start heading north.
It wont end well
Oil jumps 10% because Yemen/Iran have proven they can make Saudi refineries burn….
Lets see that pipeline get built due south in record time….
Now where did a place that drone…..?
And that’s why everybody should hold a little XEG in their portfolio. Currently trading in its lowest ever territory (though it jumped almost 10% today), it really can’t go much lower.
Smirk?
They are laughing their behinds at the idiot savers, retirees, people on fixed income, the ‘responsible’ and compliant taxpayers.
https://en.wikipedia.org/wiki/Banana_republic
In political science, the term banana republic describes a politically unstable country with an economy dependent upon the exportation of a limited-resource product, such as “housing”/read bananas or minerals.
It is characterized by the rule of a plutocracy to which the rule of law does not apply (read no criminal penalties for obstruction of justice or offshore capital/villas or tax heaven accounts).
You know what? I am laughing too.
Now we know why O’Henry was a heavy drinker….
Too bad we don’t have a few extra pipelines built already…
#2 James
Cannot believe anyone can still watch the fake news on CNN. How many false stories do they have to come out with before people wake up.
T 2 will say whatever it takes to win again.
He could even promise to balance the budget and people would vote for him.
Unless Sheer gets passion for Canada, he is toast.
If he becomes toast, we will be too.
Nope, prices are down off the highs… see my Toronto housing charts or my Plunge-O-Meter that has been updated with August data and is running on all 6 cylinders:
http://www.chpc.biz/plunge-o-meter.html
Toronto SF Detached average prices are down 19% from the peak for a loss of $235,502
Housing looking pretty good. Never exit an asset class.
And never be overweight one. – Garth
Was driving around Edmonton this morning.
Intrigued by the number of Liberal signs.
It’s impossible to predict specific events. But…
1. According to W. Shakespeare, “All the world’s a stage”. We have no choice but to accept this as a fact.
2. A. Chekhov’s gun principle states, “If in the first act you have hung a pistol on the wall, then in the following one it should be fired.”
3. Thus, after observing a loaded gun, one is left with only three unknowns: who will shoot, who will be shot, and when the shot will be fired.
QED
I’m meeting a real estate agent this Thursday. Selling mine and collect the 20% gain. Will apply for the free $50K business loan and open a weed store or something. Lower my income and reap the rewards of paying zero taxes. Sunny days indeed.
Agreed.
=============================
#4 Andrew on 09.16.19 at 4:27 pm
And that’s why everybody should hold a little XEG in their portfolio. Currently trading in its lowest ever territory (though it jumped almost 10% today), it really can’t go much lower.
#9 Yukon Elvis on 09.16.19 at 4:48 pm
Housing looking pretty good. Never exit an asset class.
And never be overweight one. – Garth
…………………….
Hard to see demand for housing slacking off. Population growth and government enabling will keep demand strong into the foreseeable future. Looks like a no brainer at this point.
The Black Swan has landed.
An to make things more fun. Mad Max gets invited to the next debates.
Surely will split the con vote. Hence giving T2 4 more years..
Yikes!!!!!
Lots of Liberal signs in my neighborhood, but nothing unexpected as I live in Toronto and this has always been the case. I really hope we get rid of this wasteful Liberal government this Fall!
The campaign slogans (as best I can remember them).
Lib: Choose Foreclosure
Con: It’s Time For You To Make Some Bread
NDP: We’re In It Too
Grn: Move Forward… Wherever
Help Elect the cons. Campaign for the Greens!
Do your best in those competitive ridings where the libs might win to get the vote out for the Greens or NDP. Gotta split that vote so the local conservative wins with 35% of the vote (Mr. Socks’ pick gets 30% because: NDP gets 15% and Green pick gets 15% siphoning off T2’s lefty votes and those nobodies on the ticket get any remainder).
T2 said he’d tackle electoral reform the last election but quickly abandoned it. Regret that he may…
Do your part to get Mr. Ethically Challenged outta office.
#14 Yukon Elvis .
Yup completely agree .
The reason housing prices will continue to rise are of no
matter to me. I just need to know that the trend is my friend
It is always an option for Canadians to immigrate to countries where globalism creates and does not destroy middle-class.
With some luck you can make it there and might afford to buy a house in the old country, if you are still interested.
There was a story in the G&M at the weekend about household debt. A single guy with a kid, earning 30k as a hairdresser with 24k in credit card debt had a 700k mortgage!
It’s utterly demented that is allowed to happen.
There’s probably a dual income couple on 200k sitting at a kitchen table doing their sums coming to the conclusion “hmm I don’t think we can make this work” while that maniac waltzes into the mortgage broker’s office screaming, “let’s get this fraud on the road!”
I am certain that USA will go to war with Iran so Trump can leverage it to be reelected.
Americans do not want another war where more lives are lost so the war machine will create a false flag incident to get them emotionally vested into changing their minds.
War is a Terrible thing, Iran will not fall easily and its allies will be there to assist
Sheers cut to the lowest bracket is the only good thing I’ve heard so far.
“the billions being given now to people who procreate.“
I am not getting a cent from Ottawa for that.
“Be balanced and diversified since you never know what’s coming.”
Traditional diversification fails sometimes and when it does it can leave people grasping for air. Probably the nightmare scenario happened from 1906 to 1909 when a 60/40 portfolio experienced a max drawdown of -67%.
Interesting read from page 15-17:
https://static1.squarespace.com/static/5581f17ee4b01f59c2b1513a/t/561dc6bfe4b0ee35464228f2/1444791999826/Artemis_Q32015_Volatility-and-Prisoners-Dilemma.pdf
#22
I wonder if he is declaring those rentals to the CRA. Hmmm… Also did anyone inform or ask him of the capital gains he is subject to?
Then Trudeau said the government would give thousands of people without business experience $50,000 each to start businesses. That should work out well. And soon the Cons will announce their plan to blunt the stress test and “make homes more affordable.” The vote-buying is remarkable, and comes after four years of fat deficits, largely due to the billions being given now to people who procreate.
promises without costs
I suppose dictated by political analysis but I don’t think so. It’s spiritual. The spirit of broken promises, lies and deception. It’s a pact between the speaker and the audience – the speaker makes promises and the audience believes him. And somehow, the spirit of promises kept and truth will make its entrance. The stage is being set but wouldn’t it be funny if the audience finds itself on the stage.
#22 Mark
LOL we are the couple as you describe. We read that article as well and could not believe his situation! Merits an entire investigation in and of itself.
https://www.theglobeandmail.com/business/economy/article-how-canadas-suburban-dream-became-a-debt-filled-nightmare/
It is unfortunate that people are so stupid that politicians can buy them off with money the government takes from them.
It is like someone stealing your car but you don’t call the cops because he or she offered you a “free” ride to work.
You are correct Garth. Never read the Comments. Most of these people are Stone Cold Stupid.
RE:#23 Dave on 09.16.19 at 7:04 pm
Whenever I see a surgical military strike, without collateral damage, the M.O. points to just a handful of countries.
Putting holes into oil tankers, without blowing them up, or disabling a major major oil installation with a few drones…… USA is one of those countries.
Someone needs a scary big war and everyone knows who it is.
Let’s see; Saudi Arabia is at war with Yemen, bombs them daily without regard for civilian causalities, has blockaded the country and is starving millions, and the Houthis have proclaimed responsibility for the attack, so when someone attacks Saudi Arabia it’s got to be…. Iran? That makes sense, sort of, in a CNN kind of way.
Speculation is running wild of course and I think it’s fair to say at this point nobody knows whodunit.
Israel is the only country in the region operating F-35’s that could evade the missile defenses inside Saudi Arabia, but it is impossible to envision why they would be motivated to do such a thing. If fighting breaks out with Iran Israel will most certainly be targeted even if they had nothing to do with it, so we can rule them out.
If Iran did it, war with the US will certainly result, and Iran knows they will lose. So if it is war they want, why would they hit just one target and eliminate the element of surprise? Why wouldn’t they have launched a massive surprise attack on all American and Saudi assets in the region (and Israel too for good measure)? If Iran had decided “Well, war it is!!!”, I would have expected a missive attack on anything that has an airplane including all aircraft carriers and military airports within their supposed 2,000 km range. That would be their only hope for avoiding total defeat. So we can assume it wasn’t Iran.
Rogue elements? That’s possible. But also would be stupid. Why would you do something that you know would destroy your country?
Folks are saying it couldn’t be the Houthis because they don’t have the capability. But you want to know the truth folks? These days anyone with a bit of savvy can build a GPS enabled drone capable of flying with precision to a pre-inputted destination. You can get the controller on-line and at some hobby shops, and they aren’t expensive. Heck, even my son’s $100 drone has GPS and can fly back to base, that is wherever it took off from, on it’s own, all while sending video back to his phone. It’s not too accurate, but close enough for explosives.
So I think what happened is the Houtis bought a bunch of the larger hobby drones you can get, something like what Amazon is experimenting with using for deliveries, strapped some C4 on them, snuck up to the fence by land, and flew them in from very close range. It has to be the case, because the dog did not bark. The dog in this case being the Patriot missile defenses that are all over the area. Whatever hit them the Patriot radar could not see. Also it doesn’t take a lot of C4 to cause big problems at an oil refinery, which is probably why that was the target.
This probably also explains the high precision of the strike as well. The “pilots” were watching where the drone was going on their phone from not too far away.
So these are the key points summarized:
– Drones that are capable of carrying a fair payload of C4 for several kilometers are available on Amazon for less than $1000.
– The dog did not bark (Patriot systems were not able to defend against it or see it coming).
– The Houthis are at war with Saudi Arabia.
– Saudi Arabia is accessible by land from Yemen.
– The Houthis have claimed responsibility.
The one fact so far that really argues against this theory is the large vehicle casings that the media is showing. Missile outsides and such. But I think these must be stock pictures, because I don’t see how so much of a missile could survive an explosion and great big fire without at least being blackened or completely destroyed.
So my speculation is the Houthis did it using maybe 25 – $999 drones, some (well, a bunch of) C4, a box truck designed to look like it was carrying produce, and 5 or 6 drone pilots that were not afraid to die if they got caught. The whole thing could have been financed for $50,000. This is what we are dealing with in the age of asymmetric warfare. The enemy doesn’t just line up with their muskets and wear red anymore. They sneak. They hide. They blend in. They use the technology you yourself can get online and you yourself can operate without any idea how it works or how to build it.
“the billions being given now to people who procreate.“
————
Frankly, I find this comment disgusting. Was it a better situation to have Canada near the top of the pack of industrialized nations in child poverty? Should we have instead tried to challenge the U.S. and Romania for top spot? The situation in Canada is now somewhat better than it was 5 years ago. I am perfectly fine to have some of my tax dollars go in this direction. For disadvantaged kids these tax credits for their families can help the kids to get an education, stay in school, and to one day become productive citizens, and ulitmately paying it back through their taxes, etc… Or should we just try to rival the U.S. where many growing up in severe poverty drop out of school, never get an education, and become involved with all sorts of antisocial behavior (drugs, crime, etc…). My sense is that the child tax credits brought in by Trudeau were a good idea.
That being said, I am not supprtive of the Gov’t being involved in equity-sharing. This is a direction we do not need to go. Just keep the tax measures in place to curb speculators, to discourage hoarding of empty homes, and to severely restrict foreign (non-resident) buyers. In this way, the real estate market will “correct” to more reflect incomes of local buyers, and it will help the vast numbers of people who view a home as a place to raise a family, and not a piece on a monopoly board.
#33 -Obviously, Garth has nothing against helping young families, except when self-serving politicians, just to get votes, con young home buyers into thinking their getting free money to buy over priced homes, and in many cases homes they can’t afford, and also when the housing market is in a downward trend is only setting them up for financial loss and all that comes with that. We’re with Garth.
“There are only two things without limit: the universe and the stupidity of human beings. And I’m not so sure of the universe.” Albert Einstein.
Alberta can immediately pounce on the opportunity presented by the Saudi oil production outage. All it requires is a new oil sands development with a 5 year construction window and a $15 billion investment. Kenney is on the job. Crews will mobilize tomorrow.
#33 yvr_lurker
The problem I have with your prospective is that the government doesn’t have any money to support people’s kids. The government doesn’t have any money at all. They never did. I don’t see how they ever will. So what they have to do is take my and other people’s money away so they have some money to be generous to other people. But now I don’t have that same money to raise my own kids.
Having children is a selfish act. Go crazy, if you can afford it and it is what you want to do. But don’t be like my cousin and have 17 kids and then apply for government assistance for all of them. The government has to come after me to get the money. And I get kind of pissed about that. If I wanted 20 kids and could afford 20 kids, I would have had 20 kids (I have 3 so 17+3=20).
Your kids are your problem, not mine. I’ll have my own if I want them thank-you.
Hard to believe but Auzzie Jurock has actually admitted that the Lower Mainland BC housing market trend is down and on into 2020/21.
Re my comment at #36:
Oops. I forgot the 9 year regulatory and court proceedings to obtain an approval for an oil sands development. So a total of 12 years to completion. Don’t you miss the old days of drilling gushers in a few weeks?
Sorry Alberta. You’re SOL
Where do I sign up for that $50,000 ? I have a great idea
Just had a look at the People’s Party of Canada platform. They actually are ready to tackle the real issues that are affecting the hard working productive Canadians and not just trying to pander to the “metro areas voting public”.
They’ll never win but I think I’m going to vote for them.
Are defense stock a good hedge for war risk?
“Lockheed Martin, Raytheon and L3harris Technologies, which all rallied as much as 3.7%, could benefit from military investments as governments seek to expand radar to prevent future drone attacks…” https://www.cnbc.com/2019/09/16/jim-cramer-explains-how-the-market-could-shrug-off-a-major-oil-shock.html
Hey #33 yvr_lurker
What is your problem?
Since when was it my responsibility to raise everyone else’s kids?
If you have the money to have kids, have a dozen of them, I could care less.
If you can’t afford to raise them properly on your own dime, then don’t have them.
Children are a privilege to have, not a right.
#16 Smoking Man
An to make things more fun. Mad Max gets invited to the next debates.
***************
It is increasingly necessary in this world of ideological fanaticism (American far-left Democrats) who spew ad hominem attacks of every -ism, that we regular people read with comprehension and listen with intent to decipher the genuine motivations/ plans of our political leaders.
I’ve heard Max speak – and identifying as a Libertarian, I liked much of what I heard – smaller government, targeting a more nuanced immigration plan (not exclusionary, but not open), removing interprovincial barriers to trade (sheesh! imagine, helping each other for a greater “greater good”) and addressing the insane inequity that is our Equalization program (since inception in 1957, Quebec has received 51% or 221 Billion of the pie…).
Upon hearing of Maxime’s inclusion, the NDP said (ala the radical left), “The rise of extremism, hate speech and white supremacy is real threat to our country,” New Democrat spokesperson Melanie Richer. Hopefully, Canadian politicians can steer clear of the identity politicking hatred spreading in the U.S.
People still watch CNN and still admit to it publicly?
Preferreds ETF CPD has been doing well lately
#37 Non-plused
—————
I do understand where you are coming from. However, there are many families that due to job loss, a deadbeat former partner, death, whatever, who find themselves in a tight bind trying to raise their kids. I would guess it is a really small minority who choose to have kids only because of this modest extra support. Think of it as a paying into an insurance policy to help these kids become good citizens.
We all have our core values. I don’t have a problem with this. Perhaps to raise $$$ the Gov’t should be strict on collecting taxes from those who hide their worldwide income. Moreover, close all the loopholes that permit great tax savings for those families who are able to set up bogus little coroporations for tax sheltering family income . I am sure many here on this blog would find this idea outrageous (the subject though was beaten to death on this blog until Morneau backed down). I would be very supportive of the Gov’t raising $$$ from this lot.
#2 James #7 Kelly #23 Dave
Always encouraged to see the growing numbers of those awoken to the BS continually being fed to us by the US regime and corporate controlled media.
#36 WUL
You are so funny! Not!!!
Chill out; listen (for all) if you enjoy slow and easy blues this one is for you. You’re Welcome! Love Alberta!!
https://www.youtube.com/watch?v=rk8bEbmwOh0
All i can say to this is….
“The following quote attributed to Scottish history professor Alexander Tyler in 1787, seems to portray an accurate reflection of what has occurred during our 200+ years of existence as a democracy.
“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.”
“The average age of the world’s greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:
From bondage to spiritual faith;From spiritual faith to great courage;From courage to liberty;From liberty to abundance;From abundance to complacency;From complacency to apathy;From apathy to dependence;From dependence back into bondage
#50 Drunken Stupor
Amen! Smart Scottish dude who said that! Cannot argue with that! History always repeats itself because humanity is too stupid to realize otherwise!
That is why we all need to chill tonight; I posted above this link:
https://www.youtube.com/watch?v=rk8bEbmwOh0
Anybody else out there with there chill out links?? :)
#2 James – You (and CNN)left out an important piece of information regarding the DA’s subpoenas, they are in regards to Stormy Daniels. Nuff said, other than its going no where.
Garth,
All things being equal, why have 25% of portfolio in USD when owning the CAD equivalent will still pay out the same, just exchanged from CAD to USD?
A share in an ETF covering the S&P 500 in CAD would yield the same benefits and dividends as the same ETF in USD, n’est-ce pas? Save for having to pay 2% conversion fees to buy them in the first place, that is.
Am I missing something here?
Purchasing Canadian fixed income — ANY Canadian fixed income — is voting in favour of the government’s fiscal policy.
…
I gleefully look forward to Scheer’s big reveal. $6bln for the tax cut, another $300mln for the kiddie credits announced today, a promise to grow health and education transfers by 3%/year, and a current $12 billion deficit. He’ll have to announce $10bln+ in cuts (doubtful), import one of Trump’s economists to predict 4% GDP growth, or wink, grin and say the budget will balance itself.
Nobody cares what the election promises are anyway. It’s merely marketing… no promises are actually kept and no recourse exists for promises that aren’t kept.
As Warren Buffett once said: “By periodically investing in an index fund, for example, the know-nothing investor can actually outperform most investment professionals. Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.” (1993 Berkshire Hathaway Shareholder Letter)
https://dumbwealth.com/the-intelligence-of-dumb-money/
@#32 Nonplused on 09.16.19 at 8:15 pm
…So these are the key points summarized:
– Drones that are capable of carrying a fair payload of C4 for several kilometers are available on Amazon for less than $1000.
– The dog did not bark (Patriot systems were not able to defend against it or see it coming).
– The Houthis are at war with Saudi Arabia.
– Saudi Arabia is accessible by land from Yemen.
– The Houthis have claimed responsibility…
***********************
Nicely done.
Must have been at night under the cover of darkness, you would think a guard would see a drone coming over the desert. This isn’t the first attempt on the Saudi oil infrastructure.
I agree Iran would make a bigger first move.
Somebody needs a war.
Great day on the market. Eric Nuttal and John Hood were pounding energy lately and the hammer fell squarely on the nail. Smart guys. SU, CVE, HSE and the XEG we’re good places to be. In my case they painted an otherwise red day glossy black. Thank you Eric and John for the timely insight. Of course it’s just a bizarre coincidence that energy is perking up as Trudeau slides down. No one could have known that Iran would climb out of it’s crazy hole and spit at the sun. But that’s what makes a market.
Talk about debt, seniors are gorging on it. One caveat that’s missing from the reverse mortgage tsunami of advertising. Read your contract in detail. Better still get your lawyer on the case. All contracts aren’t written in the same language. English is not always the language if contracts although the words look the same, they often mean different things. For ex: what does “pay your property tax ” mean for your issuer? Does it mean pay your property tax in cash? Can you still defer? Who’s in what position on title?
They day ” Maintain your property in excellent condition” . What does that mean exactly? If your lawn gets seedy do they foreclose? Paint faded? You’d better make sure. There’s always some devil in the details of contracts, best make sure. Lots of people get caught out in their auto lease contracts when the dealer wants new tires and brakes, timing chain, dealer maintenance. Expensive mistake if you’re asleep at the wheel.
#37 Nonplused on 09.16.19 at 8:50 pm
#33 yvr_lurker
The problem I have with your prospective is that the government doesn’t have any money to support people’s kids. The government doesn’t have any money at all. They never did. I don’t see how they ever will. So what they have to do is take my and other people’s money away so they have some money to be generous to other people.
==================================
It’s actually a bit worse than that. This is done with borrowed money, so they have to steal from the future to give to people for their kids. They are literally stealing from these kids to give to these kids. They don’t even get to vote on where we spend their money
Iranian drones…. yeah right…
Like 9-11 was directed by a dead man in a cave.
GOOGLE” False Flag”
#30 Randy on 09.16.19 at 8:03 pm
You are correct Garth. Never read the Comments. Most of these people are Stone Cold Stupid.
**************
What exactly are you trying to say? lol
Hey Cottingham/Yukon how high will house prices go in this next run up?
#47 yvr_lurker
Some sort of program for insuring against job loss or other calamities like EI is probably acceptable to me, because we all pay in and we all in theory can draw out as necessary. Like car insurance. I’ve never had a big payout. Well, ok the hail damage was pretty expensive. But I am willing to pay in in case I ever do have to make a big payout.
School taxes also sort of make sense because supposedly everyone sends their kids to school and might not if it wasn’t compulsory, but even there it seems a little unfair that a person who has 2 kids pays the same as a person who has six.
I guess we see all sorts of things where assessing user fees is difficult. For example the roads. A Corolla does far less damage to the road than an 18 wheeler. But at least the 18 wheeler pays a lot more in fuel taxes. A lot lot more. Those things get like 4 miles a gallon, whereas the Corolla gets closer to 30.
But in the case of subsidizing children we are really asking people who do not have children to pay for those who do. Since it has been a choice and not an accident since 1968, this seems unfair.
And if we extend the idea of subsidizing children to it’s natural conclusion, why shouldn’t we be chasing the rich around for extra taxes so we can do something about poverty in Africa?
The fact is that there just isn’t a way to offload responsibility for your own decisions onto someone else unless you have a gun and they don’t. Remember folks, socialism always comes from the barrel of a gun. If there are no guns, there will be no socialism. And remember that the greatest mass murderers in history have for the most part been socialist. Stalin, Mao, even Hitler, although he couldn’t hold a candle to what Stalin and Mao accomplished.
Socialism works kind of ok until people get fed up with it at the family or the tribal level. But as soon as there is a property line the guns have to come out and the shooting must continue until there is no property line, just dead people. When you vote socialist, you are voting to steal your neighbor’s stuff, and have him killed if he does not acquiesce. That is why it always fails. Sooner or later there isn’t anything left to steal or anybody left to kill.
What about mutual funds without crazy fees? And if they even have decent performance to boot? How does this factor into your rules, if at all?
#47
If you don’t have a problem, then perhaps there should be voluntary donation to the causes that you are concerned about. Pick a needy case and take care of it yourself. That would work.
I know where you are coming from, but it appears that there is a solution other than forcing your desires and principles upon others.
When all these pet dogs get old, should taxpayers fund an old pet home when their owners tire of the care required to take care of them. It is the nice thing to do but is it the right thing to do?
Think about it.
@#10 JSS
“Was driving around Edmonton this morning.
Intrigued by the number of Liberal signs.”
++++
Redmonton ….as the local wags refer to it.
The last Liberal pimple on the western Conservative rump.
Some people believe the Liberal popularity in Edmonton is due to the large amounts of civil, provincial and federal employees in the city.
Calgary? Polar opposite .
Oil central.
@#38 april
“Hard to believe but Auzzie Jurock has actually admitted that the Lower Mainland BC housing market trend is down and on into 2020/21….”
++++
Yes.
Tis a rare day when perpetual RE pumper Ozzie ( not Auzzie from Australia) Jurrock says anything negative about real estate.
Was he pumping Arizona real estate instead?
#39 WUL
The infrastructure is there/here minus tide water pipelines (oh yeah the 60 yr old one that needs replacing to the West Coast) every other oil producing countries ship it; in Canada it comes up the St.Lawrence via tanker; the irony. Yes they do receive AB oil thru the reverse pipeline but why import when we have it?
Probably posted before but it is worth a read again:
https://nationalpost.com/news/canada/read-the-full-text-jason-kenney-responds-to-amnesty-internationals-criticism-of-his-fight-back-strategy#comments-area
Old 2012 T2 interview on what he thinks about Albertan’s.
You be the judge!
https://www.youtube.com/watch?v=oA1yCIHMJwY
i·ras·ci·ble
/iˈrasəb(ə)l/
adjective
having or showing a tendency to be easily angered.
“an irascible man”
synonyms:irritable, quick-tempered, short-tempered, bad-tempered, ill-tempered, hot-tempered, thin-skinned, snappy, snappish, tetchy, testy, touchy, edgy, crabby, waspish, dyspeptic;
………….. is it just me who had to look that up?
BNN are no better off, good to confirm… what about arabnews.com?
#2 James on 09.16.19 at 4:23 pm
Its obvious for anyone to see Trump needs a distraction again as Manhattan district attorneys have subpoenaed 8 years of Trumps tax returns. It stinks of the famous WMD crap from the bush years as a reason to invade the middle east.
……………………..
Like Hillary’s 35,000 deleted emails? Or the Clinton Foundation that paid for Chelsea’s extravagant vegan wedding?
Trump made a deal with the Nectonite aliens.
Space forces is the result of what the drunken commander of the Nectonites told him in Boston..
Humans, me and Ashman, got your back. Barrington is suck up.Mr Chew is detached, he found God.
It’s all in my book…Garth hates it..
James show some respect .
I hate teachers that never owned a lemonade stand as a kid.
#50 Drunken Stupor on 09.16.19 at 9:46 pm
Democracy?
https://ca.yahoo.com/news/roller-coaster-sask-nurse-prepares-110000305.html
I am a health care provider, worked in 6 different hospitals. We all know there is no quality of care anywhere these days. It doesn’t make any sense that professional bodies have the power to regulate their members’ rights to freedom of speech. Strom has the right to complain about the care her grandfather received, and her complain isn’t directed to any single person. The major function of professional bodies is not to protect their reputation but to protect the public.
Dependence and bondage sounds about right.
Try saying something in public these days, someone will surely ‘feel offended’.
“Shit up, suck it up and move on”, T2 might put in the anthem, he is expert in that.
https://ca.finance.yahoo.com/news/not-a-gamechanger-why-the-liberal-plan-for-firsttime-homebuyers-isnt-a-cureall-184959972.html
“CMHC research suggests that this approach to supporting first-time buyers will contribute to price escalation at 1/5 to 1/6 the rate of plans that change the mortgage stress tests or amortization period,” Kershaw said.
Benjamin Tal, deputy chief economist at CIBC World Markets, says it makes sense to raise the maximum price, but given the program’s small scale, the impact will be marginal at best.
“It’s a step in the right direction, but a very little step — not a game-changer,” Tal told Yahoo Finance Canada.
The banks love it and want more of it: you covering for their risks (CHMC) and the government paying interest to the banks on private loans for their part of the ‘first time home buyer’ joined ownership program.
A note: No equivalent of CHMC, neither of government sponsored loans, neither or pension/RRSP withdrawals for home purchases exist anywhere in the world.
They call it ‘market’ and ‘affordable housing’.
@ #5
Don’t sweat it too much.
Just choose a clip of that persona and observe the body/facial language. Truly scary. Lips incessantly curling over teeth, forced smile, upward lilt at the end of pronunciation, constant upward flicking of eyebrows……just the affectation that would have me running out of the bank screaming.
Here’s an oldie but a goodie:
https://www.youtube.com/watch?v=HDElrZL2LGo
He could be right and he could be wrong. Who cares?
Play your own game because the economy is rigged to pump this crap to get us all to swallow it.
#72 Smoking Man on 09.17.19 at 2:00 am
I hate teachers that never owned a lemonade stand as a kid.
********
SM, I’m guessing you are in your 60s. Teachers were in your life 40+ years ago. Let it go old boy.
#33 yvr_lurker
Or should we just try to rival the U.S. where many growing up in severe poverty drop out of school, never get an education, and become involved with all sorts of antisocial behavior (drugs, crime, etc…).
——————————————————————–
“I hate to advocate drugs, alcohol, violence, or insanity to anyone, but they’ve always worked for me.” – H.S.T.
So I’m watching BNN this morning and Ryan Lewenza is a guest speaker pumping the energy patch. If ya can’t beat em, join em.
#74 Stan Brooks on 09.17.19 at 4:21 am
https://ca.finance.yahoo.com/news/not-a-gamechanger-why-the-liberal-plan-for-firsttime-homebuyers-isnt-a-cureall-184959972.html
“CMHC research suggests that this approach to supporting first-time buyers will contribute to price escalation at 1/5 to 1/6 the rate of plans that change the mortgage stress tests or amortization period,” Kershaw said.
Benjamin Tal, deputy chief economist at CIBC World Markets, says it makes sense to raise the maximum price, but given the program’s small scale, the impact will be marginal at best.
“It’s a step in the right direction, but a very little step — not a game-changer,” Tal told Yahoo Finance Canada.
The banks love it and want more of it: you covering for their risks (CHMC) and the government paying interest to the banks on private loans for their part of the ‘first time home buyer’ joined ownership program.
A note: No equivalent of CHMC, neither of government sponsored loans, neither or pension/RRSP withdrawals for home purchases exist anywhere in the world.
They call it ‘market’ and ‘affordable housing’.
———————————————-
Fannie and Freddy say hi, numbnut.
So oil went up by 10% overnight?
What did they hate our freedoms, or little girls going to school? Must we go over there to get them before they get us? What is the slogan this time.
NOTHING is left to chance in this world especially when you can controll a billion people via a single Twitter account (you know the one).
Not saying she’s not a gatekeeper (as is ineffective Chompsky) but some useful info as we are led sheep to slaughter:
https://en.wikipedia.org/wiki/The_Shock_Doctrine
“deliberate strategy of “shock therapy”. This centers on the exploitation of national crises to push through controversial policies while citizens are too emotionally and physically distracted by disasters or upheavals to mount an effective resistance”
#65 crowdedelevatorfartz on 09.17.19 at 12:29 am
@#10 JSS
“Was driving around Edmonton this morning.
Intrigued by the number of Liberal signs.”
++++
Redmonton ….as the local wags refer to it.
The last Liberal pimple on the western Conservative rump.
Some people believe the Liberal popularity in Edmonton is due to the large amounts of civil, provincial and federal employees in the city.
Calgary? Polar opposite .
Oil central.
___
Same thing here in Southern Ontario with Kingston, usually a dot of red in a sea of blue.
Surprise! – also chock full of Civil servants.
Tax time for the working classes:
A middle class income, earned firstly as the working stiffs earn it, as a salary.
Then, as a self employed person earns it, as a company draw.
Lastly, as the wealthy earn it, through dividends and capital gains.
Who do you think pays the most tax?
We have played this game before. Here we go:
$190,000 per year, earned as an employee:
You will pay $68,526.00 in total income tax, if you live in Ontario.
$190,000 per year, earned as your drawings from your business:
You will pay $69,293.00 in income tax.
Wow. That is a lot of tax.
But, let’s look at how the rich do it…..education is the first step towards enlightenment…..
$190,000.00, earned as capital gains (the favourite method of the wealthy – and the reason Canada’s Federal Government will never increase the 50% capital gains exemption):
You will pay $22,808.00 in income taxes.
Wow. That is a savings of $46,485.00 over the self employed person. (this is why our Finance Minister was so eager to tax professional corporations, which are run mostly by middle class working folks).
And what if you can’t massage your numbers into capital gains? Well, you could earn your money in dividends:
$190,000 earned in dividends results in tax of $37,840.00
Not quite as good as capital gains income, but still $31,453.00 cheaper than being self employed.
The wealthy run our governments (usually through their children).
They will always tax themselves less than they tax us.
The idea is to structure your income so that you earn it from dividends and capital gains, not salary or self employment.
Oh, and why do the Federal Liberals REALLY want to tax you if you sell your house?
Home sales are a middle class game. Buy a small house, then when you save enough, move up to something bigger.
The wealthy don’t do that. They don’t need to. They stay for the most part in the same place. They don’t need to slowly build up equity in a house, and then sell and move to a bigger place when they can qualify for the mortgage.
So taxation of principle residence sale capital gains, is just another middle class tax grab that won’t really effect the wealthy all that much.
Totally bogus comparison, since in order for the ‘wealthy’ to earn $190,000 in capital gains or dividends, they must have several million dollars in assets, accumulated after paying tax on it. Try again. – Garth
And what if the Lib and Cons reduce income tax but put the GST back to 7%.
Should it be better for the economy overall?
“the billions being given now to people who procreate.“
Really? This is necessary to prevent child poverty and much more expensive issues that come with it (crime, drugs, homelessness, mental health etc.). We need to encourage people to have children, and with the costs of homes and childcare, it’s becoming harder for families to keep up. Who will pay CPP and taxes when you are old? Who will work in hospitals? I bet many people against “paying for other people’s kids” are against immigration too, we have to replace our population somehow. Also, we live in a society, we will always pay for things we “don’t use” for the greater good. Like subsidizing transit you may not use, but it keeps down pollution in your air traffic on the roads. Or helping their people to raise the future taxpayers and workers of this country so you don’t have to. And don’t act like this money goes into a black hole either, this money goes back into our economy (childcare, food, clothing, extracurriculars etc.)
And all those kids will inherit the fat debts and higher taxes incurred subsidizing their parents. Surprise! – Garth
“… several million dollars in assets, accumulated after paying tax on it.”
Sounds like the Dollars of the Taxation Revolution.
[In a genteel Southern accent] “O, I can assure you, sir, that we come from modest roots. Why, I’ve several great grand-dollars on both my mother’s and father’s sides who were taxed as labour, before the war.”
#59 Not So New guy on 09.16.19 at 11:09 pm
It’s actually a bit worse than that. This is done with borrowed money, so they have to steal from the future to give to people for their kids. They are literally stealing from these kids to give to these kids. They don’t even get to vote on where we spend their money.
___
This whole handout / tax cut thing has climbed way too high up income ladder. The IH household net last year was just over 100K, we only paid about 6-8K in income tax between us both when it was all said and done.
That’s coming from a grunting, snorting, knuckle dragger with statues of Harper and Harris on the front lawn. (ok, joking about the statues).
Only about 65% of Canadians even have a job to begin with, and only about 60% of these pay anything in net income tax. If you cut the public workers out, you’re down to less than 13 million Canadians working in the private sector and actually paying income taxes who are covering everything.
I’ll relate the story again of a local young, divorced, single mother with 4 kids NETTING 50K between the CCB and the child support from her ex. She opts to not work. She’s making double+ the median individual income in Canada (that’s about ~34K gross) sitting at home.
Canadians will not elect a PM that does not do handouts/freebies. This is a very problematic sentiment, and the results are starting to get bizarre to say the least.
#78 The real Kip (Ret) on 09.17.19 at 7:59 am
So I’m watching BNN this morning and Ryan Lewenza is a guest speaker pumping the energy patch. If ya can’t beat em, join em.
————–
Interesting.
And Garth tells us not to watch BNN.
@#86 IHCTD9
“I’ll relate the story again of a local young, divorced, single mother with 4 kids NETTING 50K between the CCB and the child support from her ex. She opts to not work.”
++++
Yep. Similar situation.
A friend divorced his wife in his late 20’s’s, paid his ex huge spousal/child support for 3 kids.
She made enough to stay at home and sit back, did nothing for years.
She was offered excellent jobs at Telus, Hydro, etc.
Not interested.
When the kids were old enough to “fly the nest” and the child support payments ended.
So, whats a person with zero job references for the last 15 years to do?
She met another guy….. 9 months later new baby makes an appearance….. several years later…..divorced again.
Cutting taxes is not the answer.
Real median hourly earnings have barely increased in the last 40 years, despite labor productivity increasing ~50% during that same time, and inflation adjusted corporate profits have increased about 300%.
Have your taxes gone up 300% in the last 40 years? Have they gone up even 50%? Of course not.
The government are not the ones taking our money.
Re: #84 milly on 09.17.19 at 9:08 am
Agenda 21 is to decrease the world’s population.
#84 milly on 09.17.19 at 9:08 am
“the billions being given now to people who procreate.“
Really? This is necessary to prevent child poverty and much more expensive issues that come with it (crime, drugs, homelessness, mental health etc.). We need to encourage people to have children, and with the costs of homes and childcare, it’s becoming harder for families to keep up.
___
The choice to have kids has never, and will never hinge on what the government is willing to pony up for the effort.
The reason is that to make a couple who absolutely does not want kids to change their mind will take 100’s of thousands of dollars minimum. That’s not going to happen. Paying folks to have kids has never worked no matter where it’s been tried (Quebec, Russia etc…).
It is the sole responsibility of the parents to ensure the kids are brought up healthy and properly – not the bloody government. You plan, and sacrifice if necessary. You don’t go looking for handouts, we’re already way too far down that road already. Canadian Parents get more now than ever before. Enough already. They are the ones who will carry this debt on their shoulders as Mr. G stated.
#86 IHCTD9 points out that middle class families are doing pretty well, at the top and the bottom.
#82 Ace Goodheart shows that incorporated professionals, small business owners, coupon clippers and real estate investors all do pretty well.
Garth says the balanced and diversified crowd has nothing to complain about. This undiversified cowboy isn’t complaining either.
I get that the oilpatch crowd is grumpy, partly for reasons within the government’s control, partly not.
Unemployment’s pretty low, energy’s cheap (except in the lower mainland).
What’s everybody else here so grumpy about?
IHCTD9 on 09.17.19 at 9:32 am
#59 Not So New guy on 09.16.19 at 11:09 pm
It’s actually a bit worse than that. This is done with borrowed money, so they have to steal from the future to give to people for their kids. They are literally stealing from these kids to give to these kids. They don’t even get to vote on where we spend their money.
___
This whole handout / tax cut thing has climbed way too high up income ladder. The IH household net last year was just over 100K, we only paid about 6-8K in income tax between us both when it was all said and done.
That’s coming from a grunting, snorting, knuckle dragger with statues of Harper and Harris on the front lawn. (ok, joking about the statues).
Only about 65% of Canadians even have a job to begin with, and only about 60% of these pay anything in net income tax. If you cut the public workers out, you’re down to less than 13 million Canadians working in the private sector and actually paying income taxes who are covering everything.
I’ll relate the story again of a local young, divorced, single mother with 4 kids NETTING 50K between the CCB and the child support from her ex. She opts to not work. She’s making double+ the median individual income in Canada (that’s about ~34K gross) sitting at home.
Canadians will not elect a PM that does not do handouts/freebies. This is a very problematic sentiment, and the results are starting to get bizarre to say the least.
—————————
The difference between you and the single mom is one of degree not kind.
You both are taking far more than you produce. Those of us on the other side of that trade regard you as parasites.
#47 yvr_lurker on 09.16.19 at 9:34 pm
#37 Non-plused
—————
We all have our core values. I don’t have a problem with this. Perhaps to raise $$$ the Gov’t should be strict on collecting taxes from those who hide their worldwide income. Moreover, close all the loopholes that permit great tax savings for those families who are able to set up bogus little coroporations for tax sheltering family income . I am sure many here on this blog would find this idea outrageous (the subject though was beaten to death on this blog until Morneau backed down). I would be very supportive of the Gov’t raising $$$ from this lot.
—————-
Of course you would. Because it is other people’s money that is being taken. It’s all good until they come after your money.
Shit happens in life. Kids, debt, illness….deal with it without putting the burden on others who have their own shit to deal with.
“the billions being given now to people who procreate.“
Well, not all people who procreate. I check the mail every day and haven’t received a penny as of yet for my 4 year old.
But those two gov’t workers grossing 150K with sweet pensions will get a cool $7500 per year for their two little snot noses.
Seems fair to me, that my taxes would allow them to take the fam to Hawaii each year. Or help them finance a rental property.
And I even get to help pay for their retirement as well. Nice!
I’m all for spending money on kids and families that need it, but lets be real. This is a stimulus program and a large amount of the CCB funds are spent on vacations, toys, clothes. It’s BS to means test it, and if they are going to do that, how the hell did they come up with the math? This government has a strange idea on what “rich” is. Two gov’t workers – there are 2MM fed employee’s – are significantly richer then a one large income family. Lower tax burden, more benefits, and 125K+ (two pensions) guaranteed income upon retirement. I will have to save close to 3MM to have a similar draw down.
Biggest regret is not having my spouse milk that fed teat, we should have laser focused on getting her into a gov’t seat prior to having kids. Sad but this is how to really get ahead – one person on the gov’t dole.
#48 Sheepless on 09.16.19 at 9:35 pm
#2 James #7 Kelly #23 Dave
Always encouraged to see the growing numbers of those awoken to the BS continually being fed to us by the US regime and corporate controlled media.
_______________________________________
So just to keep it even I have posted your favorite news supplier Sheepless.
I happened across this CNN story on my tablet via another web source. I do not take any news source on its word but rather multiple sources. If A+B+C = the same number then I will consider the merits of the sources from multiple regions of the world. Corporate BS sounds very cynical, howsoever you wish to be informed is up to you. So I surmise that you learned about the birds and bees from your friends on the school playground as the corporate BS was not in play at that age correct? How did that go? Do you still rely on your friends as news contacts?
You have to get your news from multiple sources and educate yourself while not getting caught up in the tin-foil hat regime and left or right agenda.
https://www.foxnews.com/world/locked-and-loaded-saudi-oil-attack-military-options-trump
Stop watching BNN. They don’t know, either.
————————————————————
Good point. It’s like the saying that there are those people who don’t know what’s going to happen, and those who don’t know that they don’t know what’s going to happen.
I came across an interesting article over the weekend detailing the cost value to taxpayers of all sorts of tax loopholes that are on the books already and the costs of some of our social programs. Indeed 24.2B for the child tax benefit is a large expenditure, but there is also a large amount that the Gov’t does not collect and that benefits only a small select group of taxpayers (that perhaps should be pruned down) before we say that the Gov’t can afford it.
https://thetyee.ca/News/2019/09/12/Tax-Loopholes-Credits-Cost-Billions
Some would argue that they don’t have kids so why should they subsidize families through this credit. The argument that why should we have many of these generous loopholes that primarily benefit the 1%ers with dividend and trust funds? Well, I don’t benefit from this.
#93 Tater on 09.17.19 at 10:29 am
The difference between you and the single mom is one of degree not kind.
You both are taking far more than you produce. Those of us on the other side of that trade regard you as parasites.
___
Whatev. You can regard me as a parasite all you like. I never voted for any of these handouts (quite the opposite), and I have been steadily employed in the private sector since I was 23 (quite unlike the Mom).
You’ll just have to forgive me for exploiting the freebies as they become available.
You want someone to blame for us paying almost nothing in income tax? Trudeau brought it to an all time record low.
One thing you can take to the bank: If a new government gets voted in by (dumb) Canadians on the promise of handouts and freebies – you can bet your @ss I’ll be milking it to the absolute maximum.
Every single year.
Don’t care who thinks what about it.
#95 RonC on 09.17.19 at 10:33 am
Biggest regret is not having my spouse milk that fed teat, we should have laser focused on getting her into a gov’t seat prior to having kids. Sad but this is how to really get ahead – one person on the gov’t dole.
___
QFT, and review for the Gen Z’s and very young Mils. Make sure both of you work – and one of you get a govy job if possible.
Ms IH had a gov job while we were having kids. Unionized. 98% (young) female staff. 14 months off per kid with full pay. Maternity benefits were one of the biggest issues at that place due to all the young ladies working there. Nice paycheque, great benefits, great DB pension.
I could only dream of getting what she got in the public sector at my age back then. Would never happen in the private sector where I worked. As the years rolled on, my perks effectively declined, and my once DC “pension” died with my former employer – currently I have good pay, ok benefits, and zero pension plan.
She on the other hand has seen all kinds of new benefits and perks, along with ever expanding salary, paid time off, and pension entitlements.
It really does make a huge difference, and it magnifies as the years roll on.
Make it a priority.
RE: Totally bogus comparison, since in order for the ‘wealthy’ to earn $190,000 in capital gains or dividends, they must have several million dollars in assets, accumulated after paying tax on it. Try again. – Garth
Or a trust fund.
When you get to a certain point in wealth, taxes go down. Your first million is the hardest. Then things start to work more like a snowball going down a hill. The more you have, the faster it goes, and the less taxes you pay.
I have done all this so I know how it works. As my income has increased, and more and more of it has been dividend and capital gain income, my taxes have decreased.
Ask any wealthy person and they’ll tell you the same thing. As you get richer, you pay less and less income tax.
The folks who pay the most tax, are middle class income earners who make $100,000 + per year. They stop qualifying for all the government freebies (like Child Tax Benefit) and their marginal rate goes up to over 50% once they hit the mid two hundreds.
Again, been there, done that.
Your best bet for low taxation in this country is to inherit a trust fund.
Other than that, my method also works: Live like a pauper while earning as much as possible, invest it all in stock and bonds and ETFs, and then slowly shift your income from self employment to dividends and capital gains. The more you can earn from those methods, the less tax you pay and the richer you get.
The first million is the hardest to do. After that it gets easier.
“T2 announced that people without money should be able to buy $800,000 houses and taxpayers ought a handle a hunk of the mortgage for them.”
Some people will say or do anything without the restraint of morality, common sense or conscience to keep home owners, investors and real estate agents in clover….
If your buyers of last resort are part time minimum wage slaves then one should expect such buyers to act according to the principles of financial prudence and make extreme low ball bids consistent with the 3 years pay rule. Equal to or less than 3 years pay that they personally earn , no double or more incomes either. A 25% down payment and the balance financed over 25 years at a fixed rate. That is the 3 years pay rule according to Morton Shulman who wrote the book , Anyone can be a millionaire. https://en.wikipedia.org/wiki/Morton_Shulman
“And all those kids will inherit the fat debts and higher taxes incurred subsidizing their parents.”
I suspect not. A “bond” (the financial instrument) is not the same as “bonded servitude.”
Maybe real GDP grows more quickly, and the debt becomes less onerous.
Maybe inflation kicks in, and those bonds get paid back in much smaller dollars.
Maybe nothing changes, and the people (and pension plans, and insurance companies) holding those bonds today get EXACTLY what they bargained for — dollars worth less after inflation than the interest payments made up for. Which makes THEM (Boomers and older, basically) the bagholders.
Maybe the skilled, well-educated, English-speaking taxpayers of tomorrow just move somewhere else more welcoming.
Beats me what’ll happen. I can understand having convinced a younger generation to pay the cost of fighting the Nazis, back when the gold standard still more-or-less existed. Convincing today’s children to pay for a few decades of peace and prosperity with “hard” paper dollars and austerity? Good luck with that. It’s a bondholder’s fantasy.
N.B. The comment section is pretty shirty today. I can’t imagine the some of the language directed at parents passing muster if directed instead at immigrants, or the retired. “Parasites”? Really? Where’s the decorum I’ve come to expect here?
#50 – That is a made up paragraph and it was never written by the Scottish gentleman. A quick search on Google will show you.
Ace Goodheart knows his tax code.
You don’t need to read through a doorstopper of an annotated copy. And you certainly want to steer clear of anyone selling tax shelters. Just understand that a couple unburdened by labour income can collect six figures of divvies every year, and some capital gains, and have a tax rate very close to zippity-doo-dah.
Or more, with a slightly higher, but still QUITE reasonable, toll.
One might have to dial back the dividends once one reaches the age of OAS, so as not to become less of a parasite [sic]. The TFSAs continues to crank, likely shielding income/growth on around $200k combined, and at five o’clock the butler rings the gong, and all the wrinklies stand up to complain about having to withdraw too much (taxable!) income from their RRIFs. The media helpfully churns out stories about “people living on a fixed income.”
More silly words. Wealth doesn’t just materialize in order to pay people in tax-advantanged streams of income. It must be earned and, as it is, taxes paid. The coupon-clippers and cap gains crowd probably paid their due long ago. Spend your time not being jealous but trying to emulate them. – Garth
Ace Goodheart at 101 said:
The folks who pay the most tax, are middle class income earners who make $100,000 + per year. They stop qualifying for all the government freebies (like Child Tax Benefit) and their marginal rate goes up to over 50% once they hit the mid two hundreds.
And he noted low taxes on capital gains and dividends for the rich.
**********************************
Agreed, high tax rates are for the little people.
You never hear about the mega wealthy families in Canada complaining about high taxes since they receive mostly dividends and they manage to pass on the wealth to the next generation with minimal capital gains taxes it seems (See estate freeze and trust fund).
Yep, the first million is the hardest. Except $3 million (at least) is the new one million.
If you are over 65 it’s more like $8 million or so is the new one million of your birth year.
“High tax rates are for the little people.” I gave 54% of my income last year to my country. Little me. – Garth
P.S. Just 3.25% inflation for 65 years makes $8 million worth $1 million real dollars.
“High tax rates are for the little people.” I gave 54% of my income last year to my country. Little me. – Garth
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I think you mentioned your particular business is prevented from deferring taxes in the way that most businesses can. I think you said your business is required to pay out earnings as salary while most businesses can retain to defer taxes?
You are certainly paying your share and more and even arranged to pay provincially in Nova Scotia which can certainly use it. The province should be grateful.
I don’t think the mega rich pay those kind of 54% rates at all.
But okay, high tax rates are (mostly) for the little people.
Not even (remotely) true. Four in ten Canadian households pay no net federal or provincial income tax. – Garth
#98 yvr_lurker on 09.17.19 at 11:23 am
Some would argue that they don’t have kids so why should they subsidize families through this credit. The argument that why should we have many of these generous loopholes that primarily benefit the 1%ers with dividend and trust funds? Well, I don’t benefit from this.
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Maybe the best answer is to not subsidize people for having kids and remove loopholes that benefit trust funds.
“40% of families pay no tax”
Total Hogwash, zero credibility with comments like that.
I have raised a family still have one under my roof who is technically a adult, Be specific to how families pay NO tax as I have always paid tax.
Bunch of BS. Do you think people are that studid, I guess so.
Argue with Justin Trudeau. It’s his stat. I guess he should know. BTW, that was “no net tax.” – Garth
“The coupon-clippers and cap gains crowd probably paid their due long ago. Spend your time not being jealous but trying to emulate them.”
You’ll not trick me into a humblebrag. But I will say you’ve misunderstood my situation.
#105 Tannhäuser Gatekeeper on 09.17.19 at 1:35 pm
Beats me what’ll happen. I can understand having convinced a younger generation to pay the cost of fighting the Nazis, back when the gold standard still more-or-less existed. Convincing today’s children to pay for a few decades of peace and prosperity with “hard” paper dollars and austerity? Good luck with that. It’s a bondholder’s fantasy.
N.B. The comment section is pretty shirty today. I can’t imagine the some of the language directed at parents passing muster if directed instead at immigrants, or the retired. “Parasites”? Really? Where’s the decorum I’ve come to expect here?
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Come come Roy Batty, trying to slide in a gold standard plug as the incentive for fighting Nazis? You speak of decorum, where is yours sir, where is yours?
#79 Tater on 09.17.19 at 8:21 am
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Fannie and Freddy say hi, numbnut.
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These are mortgage originating/loan companies, not mortgage insurance companies, i.e. they could actually make profit on loans + they scale was/is vastly smaller considering the size of the economies and mortgage industries.
Fannie Mae has 700 billion in LOANS.
CHMC + private insurers insure OTHER PEOPLE LOANS. To the tune of 1.2 trillion on economy that is 8 % of of the US economies.
Of course even I do not expect you to be that stupid. Just ignorant.
Cheers, snowflake.
I’m already tired of hearing all the campaign promises.
Thank goodness it’ll be over in mid-October.
And if the Libs get a majority, it’ll really be over.
For us all.
Praise Allah and Iranians because now maybe somebody will need dirty canuck oil from alberta. Maybe…
Tax Rates
But okay, high tax rates are (mostly) for the little people.
Not even (remotely) true. Four in ten Canadian households pay no net federal or provincial income tax. – Garth
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Okay
Low income to lower Middle class pay net zero tax
Middle class to upper middle class pays high and highest tax rates
Mega rich pay low tax rates (but high taxes in dollars)
Whatever, I pay fairly high tax rates and don’t begrudge it. Nor do I begrudge the zero net rates for low income.
But I scratch my head at how the really rich families can pass on literally billions in wealth and you never hear anything about them having to sell off additional hunks of the family’s ownership to pay capital gains tax. The Richardsons in Winnipeg, the Bombardier / Beaudoin family (okay what capital gain there) the Billes (Canadian Tire) the Rogers, the Desmarais plus others.
And I think if taxes were somewhat higher on dividends and capital gains we could lower the tax on earned income.
Warren Buffett thinks taxes could be higher on the mega rich. On that, I rest my case.
High tax rates are for the little people.” I gave 54% of my income last year to my country. Little me. – Garth
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Not you gave! They took 54% so it could be redistributed.
“Four in ten Canadian households pay no net federal or provincial income tax.” You’ve said this many times.
Interesting soundbite but not really a useful measure, Garth. Better statistic would be: what percentage of overall taxes do they pay (not just income tax) in comparison to their net worth, and how does that compare to the 54% tax bracket. What’s that? You’re not my librarian? -XD
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The coupon-clippers and cap gains crowd probably paid their due long ago. Spend your time not being jealous but trying to emulate them. – Garth
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We’ve been trying to emulate them, but it’s pretty difficult, given they pulled the ladder up after them.
@ #120
Wt?? My just-turned 18 niece has her eyes on maxxing out her newly-minted TFSA on a minimum wage job and being a full-time uni student. She’s not interested in a ladder.
I’d bet my Louis Vuitton bucket bag – the real deal – (second-hand shop find for $2.00) that she’ll be in the “coupon clipper” elites club long before retirement.
This was the prediction by RBS on January 12, 2016. The DOW is up 70% or 11,162 since this call was made. Too bad for those who heeded their advice. Shows how often these analysts are wrong.
https://www.infowars.com/great-depression-2-0-sell-everything-2016-cataclysmic-year-for-stocks-warns-rbs/
Garth, hug your dog.
Freaks on Nectonite. They show me stuff..
Love your dog…..cat people are evil…