The tsunami continues. Atop the universal tax cut, the goosed-up shared-equity mortgage, the guaranteed income for new moms, the fatter kiddie cheques, swelled RESP grants, the free startup money and the flood of new child care spaces comes more wrinklie pogey. The latest big promise from Mr. Socks is a 10% boost to OAS payments for the 75+ set, and a huge 25% bump in CPP for old people who lose their spouses. The cost of this: about $3 billion more a year.
The spending is breathtaking. Especially in a nation where there’s no extra money to spend. It’s all borrowed. And today’s deficits are tomorrow’s taxes. Surprise, kids!
Well, let’s deep dive into elderly welfare for a minute.
Nobody pays directly into OAS. Unlike the Canada Pension, which is funded by employers (mostly) and employees, the Old Age Security behemoth comes right out of general government revenues. It is monstrous, and growing all on its own – thanks to demographics. This year OAS will cost more than $51 billion (more than twice what the child cheques total), and it’s growing at the rate of 6% a year – far faster than the economy or government revenues.
How do you earn OAS?
No work is required. No job. No contributions. You just need to live in Canada. Ten years of residency starts to qualify you. After 40 years of living here, you get the max, currently $607 a month. That’s $7,200 a year, or $14,500 for a couple.
Payments start at age 65, but you can roll the dice and delay them until age 70, when payments grow by 36% (unless the rules change). OAS is clawed back, or subject to a “recovery tax”, at an income of $76,000. It disappears completely at $121,000.
Now that life expectancy in Canada has soared past 82 years, we have a problem. Today 15% of the population qualifies for OAS. In a dozen years it jumps to 23%. That equals a 53% increase in pogey going to this cohort. So if you lament the size of the government deficit today, just wait. And imagine what marginal tax rates will be in 2030.
This is why the Harper Cons pushed out the age for collecting OAS – a move which was reversed by the Libs. And now this. Finally, as we all know, a social program can never be ended, reduced, eliminated or diddled with.
So here’s the question: should people receive money just because they get old? Or because they have a kid? Both OAS and the Child Benefit are non-contributory programs. Nobody pays into them – unlike CPP or EI. As more and more people are removed from the tax rolls by politicians looking for votes (Andrew Scheer just proposed the same), the revenue base narrows. More spending. Fewer taxpayers. Higher rates. And endless deficits.
What does this tell us?
Nothing good. This election isn’t about big ideas – trade policy, tax fairness, climate change, economic growth, national destiny, demographics or democratic reform. Instead the government is wiggling in people’s mortgages and buying them Huggies and Depends. Leaders aren’t inspiring or visionary. They want you to be myopic and selfish. Canada can wait.
In that spirit, remember to top up your TFSA and keep it brimming and fully invested. This vehicle can throw off lots of income in the future, none of which is counted on your tax return. That means a lower reported income and more old people’s pogey in your pocket. Of course utilize the RRSP fully. Its greatest benefit is to high income-earners, allowing taxes to be deferred and shifted. You can loan your spouse money to invest at a ridiculously low (and deductible) interest rate with none of the gains attributed back. You can split pensions or CPP with your squeeze to lower overall taxes. Or use a spousal RRSP to put money in the lands of a less-taxed partner while still reaping the credit. Plus, investment portfolios in retirement turning out dividends and capital gains have a huge advantage over the tax treatment of working schmucks.
If everyone’s in it for themselves, you might as well join. And isn’t that a disappointing thing to read?
188 comments ↓
Every time I think I see the end of Canada’s lunacy it comes back from the dead and worsens. Sigh. The OECD ranks us 11th in the world in patent generation… our idea generation can’t be much higher.
Nothing like bribing people with their own money (and debt) to win an election.
So it goes.
Thankfully, what cannot continue forever will stop.
Considering how indebted our neighbours to the south are, with their country not blowing up and no one (including fiscal conservatives) caring, I’m reasonably satisfied that Canada has a ways to go before this well and truly blows up in our faces.
That said, we kinda fixed this mess before (thank you Finance Minister Paul Martin and PM Chretien and I guess PM Mulroney for the GST), so probably we can fix it again, but don’t expect that anytime soon.
Why can’t we have a fiscally conservative and socially liberal party that has an actual chance of governing? Why do we only get the pathetic choices that we do get?
Sad.
#106 Tony on 09.18.19 at 4:10 pm
Re: #97 Tater on 09.18.19 at 2:14 pm
Powell stated no more interest rate cuts in 2019.
——————————-
Did he hike? Nope, we got a cut. Did markets tank? Nope. So, post I was replying to was definitely wrong.
As for the idea that there won’t be another cut, market sure seems to be pricing one. So if you believe Powell, there’s a bunch of money for you to make.
Money for nothing…chicks for free.
What are the odds the government doesn’t diddle with TFSA withdrawals by the time you get to retirement?
I agree with you the party leaders have no vision for nation building or responsible government. We have reduced politics to short-term populist ideas.
If increasing personal and government debt has no consequences we can just keep right on spending. In 2025 it will be a million bucks for a porta-potty in Regina.
It’s all “ME, ME” – “NOW NOW”. People have the attention span of a gnat, because of the rise of what I call stupid screens. Blankly staring at the latest news on the death of a celebrity, while the world goes by…and as the coming economic tsunami nears. When it hits – a lot of folks are going to be in a world of hurt.
We can only keep the ‘ponzi scheme’ going so long and we will wind up with a ‘Black Swan event’, or a War -anything is possible with Pumpin Head in the White House.
People seem numb or paralyzed. I sit here watching these hugely expensive SUV’s pile by, as gasoline goes through the roof, and have to ask, “where are these folks getting the money to afford a $75,000 vehicle”?
Debt.
Cheap now, but if it goes up, even T2’s nice socks won’t save the day.
As far as I can remember it has always been the situation that everyone is in it for what they can get. This is nothing new, except that now it is probably rather more polarized than before. Many people without kids loathe to pay school taxes or contribute to child tax benefits, others writing letters on mass to the Gov’t not to change tax benefits on family corporations, lower income people crying out for the Gov’t to build affordable houses in major centers. For me, I wish I could have opted out of the EI payments 30 years ago as I knew I would never need it this benefit (and was willing to risk it).
It is a far cry from the days when I was a kid when everyone in my family would listen (with some reverence) to Walter Cronkite’s evening news report, and take it on faith that he was dispensing an honest and objective assessment about key issues (i.e. failure o Vietnam war). Now any half-literate and half-informed dudes with an axe or agenda to grind (backed in $$$ by unknown people) can give fake or biased “news” on the internet by writing a blog or journal, and hook up with IT people to get the blog to appear early in internet searches. The “diversity” of these opinions (I am being sarcastic here) generally serves to polarize people even further.
One would think that the perils of climate change would be a topic that would bring people together for the common good as it has been documented objectively by a very large percentage of scientists of good repute (of course there are rogues here as well). The only way as I see it that we will come together is when most of the edges of Greenland melt in the sea and the rising waters are lapping at the entrance of the NY stock exchange in lower Manhattan. By then it is a bit too late to talk about increasing carbon taxes or beginning to divest from fossil fuels.
Garth:Twenty years of residency starts to qualify you.
10 years of residency is enough
But if we all pile into rsp and TFSA and principle residence houses won’t all this start to get taxed eventually to pay for all the benefits?!
“So here’s the question: should people receive money just because they get old? Or because they have a kid?”
Depends if we want to be a society that is ok with geriatric poverty and whether or not we think children should have opportunities while growing up.
OAS at $100,000 income? Doesn’t sound like ‘geriatric poverty’. – Garth
It is all about the freebies. Freebies are best when they take from your pile and put them in my pile. Go Libs! Lovin’ it. I’m gonna vote twice.
Federal Reserve just reduced its interest rate….Trump is winning. The rate will continue to drop and USA economy will be screaming hot.
Canada is falling into a debt spiral….root cause is housing.
Voting green or ndp….which ever kills real estate
Actually the Fed said nothing of the sort. Market odds for more cuts have plunged below 50%. – Garth
My serious proposal to fix the system:
If you do not pay net income tax, you cannot vote.
Think about it.
A group or demographic that votes themselves so many entitlements that it eliminates it’s own net taxes no longer votes until they return to tax-paying status. It would be a check & balance on entitlements. The entitled demographic would be out of policy making decisions until the current tax-paying demographic votes to tax the old demographic and get tax-free stuff themselves. Rinse, repeat.
I am only half joking.
Heard an interesting saying on the radio a few days ago…. “Social media is not Journalism”.
You are spot on with your media comments.
#6 yvr_lurker on 09.18.19 at 4:51 pm
https://www.greaterfool.ca/2019/09/18/money-for-nothing-4/#comment-666893
How is Doug Ford working out for Ontario?
TFSA withdrawals are not taxed…..yet. in 30yrs, they will be, along with gains on your house etc… thank god i’m turning 60, cause entering retirement at anything beyond subsistence level in 30yrs will totally suck. remember: nothing is guaranteed. that includes your private or public pension, including a DB plan.
I wonder if/when they will start raiding TFSA withdrawals/dividends/cap gains at tax time??..oh right nobody has any money in them, forget it.
“So here’s the question: should people receive money just because they get old? Or because they have a kid?”
—————————
While I support helping those in genuine need from situations usually beyond one’s control with a hand up (vs a hand out). However, increased reliance on gov’t hand outs/subsistence often comes with increased gov’t control. Higher future taxes risks continuing and deepening this cycle. Nothing is free and comes with trade off. For many tax payers the future payment or price it could be less freedom. Just something to think about. On election day pick your poison.
T2’s overspending of 80 billion in 4 years divided by 18 million taxpayers. My share is almost $5000. $10000 for me and wifey. Am I wrong to think I owe this money? Am I wrong to think you do too?
Just coincidence, I was reading this article yesterday in FP it is about fine-prints of OAS (secrets):
https://business.financialpost.com/personal-finance/retirement/the-oas-clawback-ceiling-isnt-as-firm-as-you-thought-and-heres-how-you-can-take-advantage
“…Thirdly, there is an estate planning tip that may permit even a wealthy individual with annual income of $250,000 or more to capture a single year of OAS …
“
OAS at $100,000 income? Doesn’t sound like ‘geriatric poverty’. – Garth
——————-
Come on.
The overwhelming majority of Canadians don’t get anywhere close to that amount, and means-testing OAS even further won’t be anywhere near enough get the fiscal conservative’s panties un-bunched, so why even bother with this dishonest question?
-“anything is possible with Pumkpin Head in the White House.”
People should be more than concerned. He is fiddling with WW3 in order to have a slim shot at re election.
DELETED
Well, what can you do? Even if some old people made mistakes in their lifes or couldnt achieve certain financial objectives for other reasons, would you want to see them beg for money, eat from a dumpster or starve? I wouldn’t even if it costs me. Same for the six children from comments. Eligibility is another issue. Ensuring that the funds are used for the intended purposes is third issue.
Wynne had the same idea in the Ontario election… free dental free drugs free bum wiping free everything, doesn’t matter just throw another log on the debt fire… I propose a debt reduction tax that is punative to politicians salary and their political party funding proportionate to debt added per budget. That’ll get the angry pitchforks out to change behaviour of politicians who do not have balanced budget…
#20 SunShowers on 09.18.19 at 5:21 pm
OAS at $100,000 income? Doesn’t sound like ‘geriatric poverty’. – Garth
——————-
Come on.
The overwhelming majority of Canadians don’t get anywhere close to that amount, and means-testing OAS even further won’t be anywhere near enough get the fiscal conservative’s panties un-bunched, so why even bother with this dishonest question?
The blog comments are painful sometimes. Are you purposely being this obtuse? You missed the point by a margin impossible to measure. It’s like the point disappeared from this dimension and entered a black hole on the other side of existence.
So the “independent from politics”, and “data dependent” FED listened to some politician, and did the wrong thing by reducing interest rates…again.
Pretty dumb move, of course, and everyone knows it.
But hey, no big deal if we keep pointing out that their credibility is less than zero (was zero before, now less), and that all the idiots who believe in conspiracies or anarchists that hope the system collapses now have more credibility. No big deal.
OAS?
MF
James on 09.18.19 at 12:49 pm
#62 Smoking Man on 09.18.19 at 2:54 am
75 degrees every day 365 a year.
Dark Blue sky and deep green palm trees in the back drop..
Winter is coming to Canada again. I’m not going to feel it. Perma tan and flip flops every day. That’s success….
https://youtu.be/N-aK6JnyFmk
______________________________________
Winter, Old Man is what defines we Canadians the toughest Thank God however you’re remaining in SoCal and not returning to Canada, except as its obvious to all here on the blog to keep your Ontario Health care card active. Yes it’s quite clear that you return every six months for only one reason. If you were a “real man” and not just a fake old one you would renounce your Canadian citizenship, become a US citizen and pay for your own private health care therefore contributing a monetary value to your newly resident country as opposed to being a leach.
———–
I thought it was 90 days? Ah, risk free health care and OAS.
When the people find that they can vote themselves money that will herald the end of the republic.
Tax reform would solve a lot of problems.
Since my first post in 2012 on “The Automated Payment Transaction Tax”, I have heard no similar call for this solution which would go well beyond “tax fairness” and open up the possibility to cure many headline societal ills.
And I have sent this link (below) to many media and political actors.
It’s time for young tech-savy people to take up this task.
If you are out there, go for it because old people would rather game the system than reform it. It’s time for a new generation of thinking.
The details are here http://www.chpc.biz/history-readings/apt
Tell me why my balanced portfolio should hold any Canadian positions?
Vote NDP.
Buy bitcoin.
Well OAS can always be offset by assisted suicide program and new young immigrants could be taken for a ride, no? You can run on that platform Mr financial adviser.
It comes out of general government revenues. And where does that money come from. I guess all those years I worked my money didnt go into revenue. Yea right. Thats why I pulled the pin and 53 and loving every moment of not paying as much in taxes as I did.
Here’s some good news for all those seniors needing companions:
https://www.cbc.ca/news/canada/17-000-feral-cats-could-be-roaming-toronto-and-experts-say-that-s-good-news-1.5273967
“If everyone’s in it for themselves, you might as well join. And isn’t that a disappointing thing to read?”
That is really where the world is at right now Garth. There are just too many people causing too many problems on this planet right now and we are right on the edge of something catastrophic happening to adjust the balance.
And yeah, people should not have kids. They should have dogs. And which language they will have to learn to get that glass of water in long therm facility?
‘Fetch!’ – Garth
well if 45% of canadians dont pay any net tax, then you can expect it to get even worse, see if you dont know what anything really costs, and never have to work for it. you can ask for everything, and looking at the policies of like the green, free dental, free pills, free post sec education. you can argue that we should all be poor, and just elect the one that gives you the most, so just ask someone else to go to work and pay for it.
its messed up, but thats where we are in 2019. no responsibility, if your young and having lots of kids, no prob, if your old and never worked or saved anything, no prob,
the responsible ones will have to look after everyone, the problem is eventually the cant or wont anymore, then its time to go to usa.
if your poor no prob, you simply mooch off their system, as you have in Canada for a century.
weirdest place is the world this Canada.
Peeples Party of Canada.
You don’t see them promising Canadians all these freebies.
But they are willing to deal with the issues that the others aren’t talking about.
Not sure whether they have underlying motives or not but it was actually quite refreshing.
How many poor people live in Scandinavian countries?
And they all got long time ago all that bones for which dogies are fighting for,here. Despite that those countries are not bankrupt. And why rich people from that countries do not elect “people” like Dog Ford or Mike Harris?
I can’t wait for Andrew Scheer’s five kids to start paying taxes to support my retirement.
#30 Tony on 09.18.19 at 5:57 pm
Tell me why my balanced portfolio should hold any Canadian positions?
————————————————————-
Because all this spending, in the short term, will float the economy. Where do you think the CCB, for instance, goes? Clothes, vehicles, dinner out, home reno’s. That’s all this spending really is, stimulus as compassion.
#29 Brian Ripley on 09.18.19 at 5:51 pm
What does this offer that HST does not?
——————————————
My grandparents immigrated in the 50’s. They never expected the government to solve their problems, let alone give them money.
My parents, solid middle class, supported the Liberals most of the time, so I have too. Now I’m grown up and employee people, have a young child and take risks staring new endeavours here in Canada. All I see are trust fund babies Trudea and Morneau protect their precious inheritance while preventing people like me succeeding. They say we don’t pay out ‘fair share’.
It comes down to incentives. If you pay people to have children they can’t otherwise support, you will get more and more. Instead of cash to the parents give the kids free food vouchers, vouchers for team sports, books, summer camp, etc. Get the kids out of poverty without incentivizing more siblings.
If seniors need government support to stay out of poverty, have them sell all their assets or declare bankruptcy, and then support them financially until they die.
But all of this giving money away, on our children’s dime… is shameful. We’ve become a takers society, lead by people who were given much and earned naught.
Garth,
with all of the money accumulating in TFSAs, mostly by those of us who need it the least, what are the chances of the government finally waking up to the massive amount of tax revenues they are missing out on and levying a tax on it or cancelling it or not increasing contribution rates in line with inflation?
TFSAs are funded with money that has already been taxed. – Garth
I gave away 30% of my after tax income to friends and family who were struggling last year. I will do the same in the future. If I qualify for OAS in a few years, it will just end up under a few Christmas trees.
Universality only makes sense, in these times, if those who receive it but don’t need it, neutralize it by supporting people who are trying their damndest but can’t get ahead.
People will always – always – act in their own self interest.
TFSAs are funded with money that has already been taxed. – Garth
So are GICs…
How many beers have you had? – Garth
Nailed it, Gartho. We’ve become a nation of selfish, myopic narcissists who don’t give two hoots about our neighbours, never mind some one a few provinces over or future generations. I don’t remember it always being thus. Having a hard time finding any faith in humanity these days. There’s no common vision anymore. At the risk of sounding like a Mad Max supporter, maybe we really have lost our way through relativistic denigration of our common values and mores. There’s nothing common left to believe in, so it’s just every (blog) dog for them self.
“If everyone’s in it for themselves, you might as well join”
Sad but true. My step father is a very wealthy man, he doesn’t even live in Canada anymore. In fact he uses my PO-box for all his Canadian mail. I open everything and send him pics of whatever is there. Recently he got a letter from CRA stating he would start receiving all the wrinkly benefits. I chuckled and said “big boost in the spending now hey..will this pay for your 3rd house in Florida?” He said “dude Ive paid in a hundred thousand times more than I can ever get out”. Fair point I guess, still it feels wrong, everyone else is doing it, shrug shoulders and join in.
Don’t know who said it but..
“A society grows great when old men plant the trees, that they know they will never feel the shade of.”
If this is true what does that say about Canada? Yikes.
TFSAs are funded with money that has already been taxed. – Garth
*********************************
Yes, just like taxable accounts are funded that way and businesses are funded that way and savings are funded that way. Yet those are all taxed.
The notion that income on money that has already been taxed should be tax free is basically preposterous. It would lead to even more wealth concentration. Even more breaks for the most wealthy. Would facilitate even more inter-generational building up of fortunes unearned by the heirs.
So you oppose TFSAs? – Garth
Well Lead Paint, if you read the content links of my post you would see that there is no similarity to the HST (other than being a transaction tax). The details are here http://www.chpc.biz/history-readings/apt
If you are really interested you should read the 41 page PDF thesis by Edgar L. Feige, Professor of Economic Emeritus, University of Wisconsin-Madison, Forthcoming in Economic Policy, October 2000
Tax and spend, tax and spend more, spend, spend, spend,tax,tax,tax,…..
Quite a fiscal hole the politicians are digging for the Mils….
Some would call that fiscal hole a grave.
Personally, if I must support my Nom de Plume…
I’d call it an outhouse pit.
:)
What a beautiful country we live in. My house has increased in value beyond my wildest dreams and the value will continue to be propped up by the government. I get my CPP when I hit 60 (now if I want) instead of waiting until 65, I can defer my property taxes for as long as I have the house, I get extra OAS I get more, more, more, while the kids get less, less, less… sorry kids but the deck is stacked in the boomer’s favour. Good luck trying to get anywhere now.
RE: #44 Dave on 09.18.19 at 6:55 pm
with all of the money accumulating in TFSAs, ……. levying a tax on it or cancelling it or not increasing contribution rates in line with inflation?
————————————————-
levying a tax would be very unlikely.
cancelling it is a possibility.
not increasing contribution rates in line with inflation is highly possible or even capping the max contribution limit.
It is easy for a government to change something going forward, like they did with CPP, but much more difficult to do it retroactively. That’s why I think a tax on previously untaxed money is highly unlikely, but dialing back the yearly contribution limit increases could be in the cards.
#44 Dave and especially Mr Italics:
Don’t be so sure. They won’t ever tax the original contribution amount, but I’d bet there is a cap coming someday soon to the amount of tax free interest that can be earned. They’ll eventually cap the lifetime contribution limit. Then they will apply a NPV calculation at a rate of return of their choosing. Any amount withdrawn above this NPV will be taxed the same as an RRSP when withdrawn. It may be a decade or two off, but it will happen before millennials retire, guaranteed. Of course, they will have to provide a warming period, at which time you can suck your cash out, but this won’t last forever. It can’t.
Price’s law even on taxation. No wonder 45% of the population pay no net tax.
https://www.youtube.com/watch?v=s_WBWCVmmrc
Expect brain drain to follow.
Trudeau says he’s for the middle class, making life more affordable. But constantly digging us further and further into debt will have the exact opposite effect. The chickens will come home to roost in a generation or so (if not much sooner), so if you think the Libs are good for your kiddies, think again. There’s no free lunch.
That Trudeau can fool the masses by his giveaways of our own tax dollars, while finding it necessary to have endless budget deficits (and not small ones), doesn’t say a lot for our education system.
I’m glad that I’m retired, have lots of savings and investments, and can coast with my beloved until my ultimate demise. It’s not going to be so pretty for the younger generations I fear.
Uh oh pic of JT in blackface in 2001 just hit the social media LMAO
#46 Trojan House on 09.18.19 at 7:07 pm
“People will always – always – act in their own self-interest.”
Well, so much for the categorical imperative (as conceptualized by Immanuel Kant).
https://en.m.wikipedia.org/wiki/Categorical_imperative
The spending is breathtaking.
————————————————————————————————
https://getyarn.io/yarn-clip/9db30c69-ce72-4d94-8e6f-c4f7f66fe240
TFSAs are funded with money that has already been taxed. – Garth
So are GICs…
How many beers have you had? – Garth
———————————————————————
My usual six pack.
Garth, TFSAs are a god-send (MSU!)
However to suggest that future governments will keep their sticky hands off of them because they are funded with after-tax dollars is not an argument that holds. It’s simply too much of an untapped revenue source.
As long as the economy grows the debt can also grow and so a deficit for several years becomes acceptable so long as that ratio (i forget,,, ? to gdp) is maintained and besides the States are in way way deeper than Canada so whatever happens there will get fixed then so will ours get fixed… and we’d fixed this once before with a decent governing Liberal bunch didn’t we… and these are cheap money days so the governments should be borrowing and building and building and building… Grow Canada Grow… Lastly,,, for about 40 years I’ve been hearing the concern that our children will be saddled with more taxes because of taday’s out-of-control spending and I’m not sure taxes have gone up as much as the alarm bels warranted…
Re: #3 Tater on 09.18.19 at 4:46 pm
We know all of Trump’s meetings in China are just show until around the middle of next year when he’ll sign anything. Powell stated no more rate increases in 2019. Trump’s tax returns going back 8 years in New York likely will be bad news for the stock market and that brings into play his records at Deutsche bank which will be even worse news for the stock market unless his lawyers can block them into the 2020 election.
Here is the Introduction to Feige’s 41 page Thesis PDF
Well we may not need to worry about what Justin may or may not do after this one!
https://time.com/5680759/justin-trudeau-brownface-photo/
Justin Trudeau, Canada’s prime minister, wore brownface makeup to a party at the private school where he was teaching in the spring of 2001. TIME has obtained a photograph of the incident.
The photograph has not been previously reported. The picture was taken at an “Arabian Nights”-themed gala. It shows Trudeau, then the 29-year-old son of the late former Prime Minister Pierre Trudeau, wearing a turban and robes with his face, neck and hands completely darkened. The photograph appears in the 2000-2001 yearbook of West Point Grey Academy, a private day school where Trudeau was a teacher.
So you oppose TFSAs? – Garth
Not sure I oppose them. But I do see it as something of a gift to those who can afford to partake. One man’s added tax break is always someone else’s tax bill. No different than child tax benefits or transit pass deductions.
I certainly don’t see TFSAs as some sort of god-given right. Garth-given I understand but not god-given. The fact they are funded with already taxed money is completely irrelevant and no different than other investments except RRSPs. Already-taxed is the only kind of money we have.
No problem funding all these new programs. Just tax capital gains on primary residences! First introduce the proposal as a limited measure as is being done, saying it only applies to speculators because once you’ve owned the home for 3 years it doesn’t apply. Then you slowly increase both the amount of gain included and the length of time to qualify for exemption. Within 10 years or so we should be able to get the inclusion rate to 100% and the exemption period starting at 25 years. Then, we slowly start raising the inclusion rate on all capital gains.
Most of the money people acquire through capital gains in their primary residence just gets left to their heirs as an inheritance. Why should these people benefit from this one time cash windfall, when there are so many others who are more deserving? And most people will thank the government, because it means they too can look forward to increased OAS payments when they are older too! Much more far-sighted then simply spending the money on current expenses or paying down debt. One should never pay down debt.
Gotta say, I find all the doomsaying here to be terribly misplaced.
So the blue guy and the red guy each want to spend more than they collect in taxes, mainly by giving it to poor(ish) people. Who will spend it. And complain about higher rents, food prices, phone bills and all the other things poor people complain about. And the extra spending will drive up the prices of the assets which this blog’s people own. The money goes through the poorer people but ends up sticking to the richer people.
Whereas some on this blog think the government should reduce its deficits, going from injecting $12bln more per year than it collects in tax to a balanced budget. Whose net worth would be impacted by that? Not the people with no appreciable net worth today!
Public sector deficits are private sector surpluses, and they generally end up with the people who can hang onto more of the money which passes through their hands. You, dear readers, you! Who’s getting richer in the US with the government running $1T deficits? Not the farmers, steelworkers, schoolteachers and auto workers.
Good column today. I have a question for Garth (a real one, not a sarcastic one): what is the better way than OAS for our society to manage all those many, many, many people who make it to old age and who have failed to provide for themselves?
OAS is essentially a ‘universal basic income’ for elderly people; specifically for elderly people because good luck realistically getting and holding a job as an 80 or 90 or 100 year old. What about a frail 95 year old who is estranged from their family or never had kids?
I would hope that we’re not saying “let them starve and die alone in the streets.” If that’s not what we’re actually saying then, honestly, what is the better way to provide the basic necessities for people in that situation?
It might be higher now but at one time I remember auto workers wage,benifits and pension being quoted at $75.00 per hour all in.
We as a country let them move to a low wage country.
When I say let them think free trade, no inport tariff to dissuade them.
If we only had well paid workers to tax.
What we have are min. wage workers not working enough
hrs. to pay taxes.
They do how ever qualify for all kinds of gov. benefits.
Understand the system and work it.
I like Henry Ford thinking share the wealth pay so the workers can buy a car without a 25 year morgage.
Black Makeupgate…..
JT is yet again deeply sorry and deeply regrets what he did…. but this time he is apologizing for his action not the country’s action…..
#60 Tannhäuser Gatekeeper on 09.18.19 at 2:03 am
Sure a high dividend strategy on ~4-6m could get you 190K, but the points remain that
1. The vast majority of “people paying themselves 190k in dividends” are not paying 37k in taxes (vs 69k in taxes for salary workers) they are in fact paying very similar taxes since they own private companies and are taxed at a higher rate (ineligible dividends, not eligible)
2. The exceptions to #1 above are relatively few. How many Canadians have a 4m+ invested in dividend-paying stocks? You could tax those divies all at 100% without putting a dent in our budget deficit. Also, who cares about the tax paid on that measly 190K when those few with 4m+ investments are set to make close to a million in unrealized cap gains.
Further to #1 paying yourself in dividends from your private company can be beneficial in certain circumstances like when you pay yourself in the 40-60K range you can save about $2k in taxes, but almost half of that savings is because you aren’t contributing to CPP, so no pension for you. Also, employment income gives you an 18% RRSP room increase that dividends do not.
“Paying yourself in dividends” is not a magic formula to pay 50% less in taxes.
I see Trudeau gaining votes from Elizabeth may’s Green Party.
I see People’s Party gaining votes from conservatives.
Another Trudeau government for sure. Doesn’t matter how many blackface selfies are uncovered.
These politicians are so embarrassing – it’s Canadstan
Stealing our young and unborns money. We can do so much better than these clowns who rob one group to pay another
After all a politician’s job is to deliver his/her constituents to his/her campaign contributors
What a farce
Hey folks when it comes to income , investing and social benefits the joke is on us and it isn’t even funny.
Garth I admire about 90% of your posting and a 100% you hosting this blog but by far this was the most stupid blog you ever wrote to those who have contributed 40 plus years in taxes, hard work, broken bodies, self sacrifices, seriously give it a break for those who have done so much for this country. Could say more but many posters above have made the point!
Go take your dog for a walk!
Buying votes, not inspiring voters, is a destructive way to win office. How is that possibly a stupid sentiment? – Garth
“Taxpayers footed bill for $4.5M in trips by MP spouses, partners over last 4 years..”
https://globalnews.ca/news/5876674/taxpayers-bill-4-5-million-mp-spouses-partners/
Timing of the targeted article is pretty interesting as well.
Now that I have been caught red handed and brown faced I have come completely clean just like I always have. Also remember that time in high school when I may or may not have done black face but was dressed the part to sing day-o. So I’m going to get my makeup kit out, put on one of my many many many Indian dresses, maybe even a turban as long as it’s not the same colour as Jagmeet is wearing that day and apologize until October by coming out to day-o at all my events, dressed as I have depicted. Just remember once again I have come clean once proof was produced of what I did so we’re all good now.
Also I have absolute immunity because I know the orange imbecile.
T2 pic surfaces, he’s in black face gropping a woman…hahaha…
Dude is such a hypocrite…..
Today’s post was on point. These continual spending announcements are insane – I guess we really are in a new world where no one cares about long term financial balance.
Where’s the serious discussion about the rate of growth of certain programs/areas (e.g. OAS, health spending) and how to develop a sustainable path.
#44 Dave: I am in the camp that believes that in the future, the government of the day will indeed make some sort of rule change re TFSAs and means tested benefits. I am not a finance guru, but having seen the common advice on the street stressing the fact that IFSA ‘income’ would not affect OAS-GIS, I wondered how does that make sense for the long term sustainability of those programs where the rate of expenditure growth was already substantial.
I encourage people to have a look at the 2019 Budget Plan for themselves and look at some of the projections. Elderly benefits, at ~ $51 billion in 2017/2018 are projected at ~ $71 billion in 2023/2024. The Canada Child Benefit expense grows from about $23 to $26 billion over the same period. Of course those projections would need to be recalculated to account for today’s announcements.
“An election is no time to discuss serious issues.” It would seem that statement is especially true this campaign season.
Sigh.
The saving grace of our current state of politics is that no one believes a word the red, blue, green or orange “leaders” says. Even their talking heads are only going through the motions and hoping to survive.
This election will be based on partisan/ethnic loyalties, and whichever way the coins the rest of us will toss will point. No one will have a mandate for anything, so let’s have a hung Parliament, a short pause for reflection and regrouping under new party leaders, and a new election to sort ourselves out.
Oh please, please, please let this be the end of that vapid idiot and his band of merry socialists..
Trudeau at a private costume party almost 20 years ago is news?
And the politically correct “Leaders” of the other party’s fall all over themselves to lambast him for something ANY of them would have done 20 YEARS ago.
Apparently “Liz’ May forgets her own babbling speech after too little food and possibly too many wine at a “presser” last year…..
I cant wait to see what dirt the Liberals are ready to unload in the weeks ahead….
“The Democratic process” is cringeworthy.
Trudeau 2001 photo level the playing field for the Conservatives.
I just might get my tax credits from Scheer after all.
Buying votes, not inspiring voters, is a destructive way to win office. How is that possibly a stupid sentiment? – Garth
———————————————————–
By ignoring all the bodies that built this country!
Agree, buying votes is just politics, it will never change but discrediting the one’s who sacrificed for this country really burns me! If they need AOS then so be it; they earned it!
On a personal note.
If Burnaby North’s Svend Robinson wins in the federal election…..will Ottawa’s jewelry stores be prepared?
NDP promises free dental care for households making under $70K. Liberals will probably see the “free” dental care and raise them by “free” college. It’s high stakes poker being played with taxpayers money so nothing to loose for the “leaders ” of the parties. Has there been an election with more blatant vote buying than this one? It makes me sick that voters are swayed by promises that will either never be kept or if kept, bankrupt the country. Pathetic really.
These are just promises and unlikely to see the light of day considering what is coming towards us in the next few years. The one I am watching is the social security mess in the U.S. that will eventually need to be addressed. There will be a price to be paid, nothing lasts forever.
Trudeau apologizes for dressing in blackface
https://youtu.be/E9GkacyPGyc
I was hoping Trudeau would fail solely on his politics, bit he will be eaten by his own now.
The difference between old people benefits and benefits based on how many kids you have is that people can’t stop themselves from getting old, whereas people can stop themselves from having more kids than they can afford.
#90 NFN_NLN
Does not the cute lady with T2’s hand wrapped around her neck and further down; kinda remind you of a young Lew*nski/Cli*ton scandal; no proof, just observation, just saying! But it is just a costume right?
#65 Paul on 09.18.19 at 7:48 pm
Well we may not need to worry about what Justin may or may not do after this one!
https://time.com/5680759/justin-trudeau-brownface-photo/
Back in 1979/80 I went to a halloween party in blackface dressed as a pimp, think Starsky and Hutch’s adorable Huggy Bear. There I was blacked out and wearing bellbottoms, cowboy boots, a purple smoking jacket, and a 10-gallon hat. Every single person at the party laughed, smiled, and came up to talk with me and to ask if I knew where to get some weed. Nobody thought anything about political correctness or racism. It was all about having fun and dressing up.
Here we are 36 years later, some of my best friends are black, my girlfriend is asian, my mother is still white, and my employees look like the United Nations. Definitely wasnt racist then, still aint now.
It has become worse than an election for high school class president.
It’s unfortunate. Because once these freebies run out, we’re all on our own to figure it out. Might as well figure it out now.
https://dumbwealth.com/the-latte-factor-warning/
#44 Dave on 09.18.19 at 6:55 pm
…
“TFSAs are funded with money that has already been taxed. – Garth”
Taxed as income but not taxed as wealth.
The CRA already taxes contributions above a certain amount. It’s not inconceivable that the government will one day start taxing accounts with holdings above a certain amount, in the nebulous spirit of making the wealthy ‘pay their fair share’.
All T2’s latest escapade shows is that his lack of judgment isn’t just a recent development; it’s a recurring theme.
When you look at his decisions through the filter of lack of awareness, everything he does pops into focus.
Lecherous goof.
Yeah, OAS would be nice if I could actually get it… I first applied 2 years ago but found out that because I had worked outside of Canada for five years I had to provide documents to establish when I left and returned. Do you keep all your old passports and tax returns? Right.
Anyway it took half a year of back and forth before I had what they said would establish my claim. I’m still waiting. The nice lady on the phone says they have my claim but has no idea when they will get around to it. The .gov website says it can take up to 12 weeks. Pure fiction, try 100 weeks. So, it may cost the government a fortune to pay out all that OAS, if, they actually pay it.
65 Paul on 09.18.19 at 7:48 pm
Well we may not need to worry about what Justin may or may not do after this one!
https://time.com/5680759/justin-trudeau-brownface-photo/
————-:::———-:::———-:::——
Oooooh, so not proud to be a Canadian after that.
And has Butts his script writer, strategy handler gotten back on a plane to England. Loyalty……hmmm.
Sir Turner, please go back into Politics : )
#64 Brian Ripley on 09.18.19 at 7:45 pm
It’s a solid idea. Anyone else promoting it besides you? Think tanks, politicians, major economists?
#93 Black and White on 09.18.19 at 9:51 pm
#65 Paul on 09.18.19 at 7:48 pm
Well we may not need to worry about what Justin may or may not do after this one!
https://time.com/5680759/justin-trudeau-brownface-photo/ Definitely wasnt racist then, still aint now.
#####################################
Of course it’s not about racism. It’s about narcissism, ego, arrogance and hypocrisy!!
I can’t stand T2 (see my post #43 above) but this ‘gotcha’ culture has to stop.
Well, well, well… Who knew that Trudeau is a closet racist?
#93 Black and White
99% of the people on this blog or on other sites get it; not offended by it for the fact like children on Halloween dressed up as there favorite characters are not out to be discriminative but admire or have admiration for the culture,symbols,characters they dress up as,perhaps not perfect in today’s society but for me as a child it was never about insulting anyone; but T2’s pompous attitude and preaching is just coming back to bite him; he is just so hypocritical on so many levels!
DELETED
What is this gaurunteed income for new moms? We had our first 4 months ago and my wife isn’t receiving any gaurunteed income (not that we need it). Is this the child tax credit or something new?
The key to the success of the program is to claw more back than you hand out in benefits. Old political trick. Boost it in year one and in subsequent years claw it all back for anyone making over $55,000.
Works every time.
So here’s the question: should people receive money just because they get old?
Answer is YES.
Maybe adjust when and how it gets clawed back. Think of the parents who didn’t work, and instead chose to raise kids, volunteer or work cash gigs. And it never hurts to give Canadians an edge in retirement for choosing to actually live here.
Or because they have a kid?
Answer is YES.
But limit it to two kids. Otherwise you are promoting puppy mills. And the planet doesn’t need more people. Canada can easily grows it’s population through immigration. Provide the benefit regardless of income. You shouldn’t discourage intelligent professionals from having kids by making it a burden for them relative to those who are under or unemployed.
From what I have heard this election season, I feel motivated to not vote or move overseas.
Green says nothing.
Orange wants to increase taxes on the wealthy – why bother with overtime or trying to get a promotion.
Blue wants to cut taxes to the poor – I should just work part time and pay not taxes and reap the CCB.
And the Red – 4 years and you can’t balance the books with no recession and unemployment at historical lows.
Kilt.
*guaranteed
Odd that the autocomplete filled in an incorrect spelling… twice
#77 acdel on 09.18.19 at 8:32 pm
Garth I admire about 90% of your posting and a 100% you hosting this blog but by far this was the most stupid blog you ever wrote to those who have contributed 40 plus years in taxes, hard work, broken bodies, self sacrifices, seriously give it a break for those who have done so much for this country. Could say more but many posters above have made the point!
Buying votes, not inspiring voters, is a destructive way to win office. How is that possibly a stupid sentiment? – Garth
———————
Did I miss the whole point here.
The current Government, AKA Fancy-Blackface , is trying to get elected , by bribery, lying ( yes again , who knew) and getting away with crimes!
Respect your hard work, playing the good Canadian rules, and finding a trust fund lying fool is taking all of this from us. The Castro loving, woman assaulting (although they interpreted it differently) buffoon, ….oh I will stop.
Thank You Garth
Still waiting for the Cons to say they will reinstate the $10k yearly max. for TFSA accounts. I would think that would be a no-brainer to reverse T2’s reverse of Harper’s largess. Come on Scherer! What are you waiting for?
The absolute state of Canadian politics…
It’s come down to a clown contest of unsustainable promises to a largely idle, obese, zero-information electorate.
Downright American.
The Fed just pumped $128 billion into markets to pull down interest rates, its first injection in 10 years
https://markets.businessinsider.com/news/stocks/fed-repo-injects-billions-into-market-first-time-in-decade-2019-9-1028534289
Good thing they’ve got things under control.
I mean, what if they don’t? The next time, they pump $128 billion into markets and interest rates rise anyway? What if they don’t pump $128 billion into markets, how high do interest rates rise?
The US Fed, lowered interest rates from 5% to 0% and the Bank of Canada tagged along. Canada prospered. Canadians got into debt. What happens when the US Fed allows rates to rise?
#87 crowdedelevatorfartz on 09.18.19 at 9:14 pm
On a personal note.
If Burnaby North’s Svend Robinson wins in the federal election…..will Ottawa’s jewelry stores be prepared?
————————————————————————————————-All he need to do is keep his eye on the prize and hope no one is looking. Diamonds are a girls best friend.
>Nobody mentioned this so I will.
I read somewhere else that overnight interest rates briefly hit 10% before the N.Y. Fed dumped $56 billion into the banking system. (From memory.)
—
Repo chaos tests Wall Street confidence in NY Fed’s Williams
Reuters | Sep 19, 2019 02:17
By Jonnelle Marte, Ann Saphir and Megan Davies
(Reuters) – Wild swings this week in U.S. money markets have raised fresh concerns about whether the New York Federal Reserve under John Williams (NYSE:WMB) has lost its deft touch with markets.
The New York Fed had to intervene in cash markets this week when the repo rate, a key measure of liquidity in the global banking system, sky-rocketed, forcing the Fed to make an emergency injection of more than $125 billion (£100.2 billion) on Tuesday and Wednesday. A key interest rate the Fed aims to influence also broke above the central bank’s target range on Tuesday for the first time since the financial crisis.
“What has happened in the repo market is far from a minor problem,” said Ward McCarthy, chief financial economist for Jefferies. “That’s a financial crisis waiting to happen if they don’t get that under control.”….
https://m.uk.investing.com/news/economy/repo-chaos-tests-wall-street-confidence-in-ny-feds-williams-1965524?ampMode=1
>Hey, Smokey, remember that “Inca City” on Mars found by NASA that I put up earlier? I found it’s counterpart on Earth: Pueblo Bonito in New Mexico, USA.
—
“Inca City” is the informal name given by Mariner 9 scientists in 1972 to a set of intersecting, rectilinear ridges that are located among the layered materials of the south polar region of Mars…
…The MOC image shows that the “Inca City” ridges, located at 82°S, 67°W, are part of a larger circular structure that is about 86 km (53 mi) across…
https://www.jpl.nasa.gov/spaceimages/details.php?id=PIA03918
—
Hidden Architecture
Pueblo Bonito
…Pueblo Bonito (Spanish for beautiful town), the largest and best-known great house in Chaco Culture National Historical Park, northern New Mexico, was built by the Ancestral Puebloans, who occupied the structure between AD 828 and 1126….
http://hiddenarchitecture.net/pueblo-bonito/
Good column Garth…that’s what I come here for. On the other hand, you bash Trump while Dem candidates get the warm and fuzzy. Given the theme of your column, here’s a good read from the Boston Herald…
http://www.bostonherald.com/2019/06/21/dems-big-on-government-handouts-over-work/amp/
Say it ain’t so Jason.
https://www.thestar.com/calgary/2019/05/09/municipalities-raising-taxes-to-cover-bankrupt-energy-companies-unpaid-bills.html
#104 Shaggy on 09.18.19 at 10:34 pm
DELETED
****************
Did he say something bad about Scooby Doo?
#92 acdel on 09.18.19 at 9:51 pm
#90 NFN_NLN
Does not the cute lady with T2’s hand wrapped around her neck and further down; kinda remind you of a young Lew*nski/Cli*ton scandal; no proof, just observation, just saying! But it is just a costume right?
***************
Yah I noticed the pinky finger wandering. I know that play.
#83 Cowtown Cowboy on 09.18.19 at 9:05 pm
Oh please, please, please let this be the end of that vapid idiot and his band of merry socialists..
****************
That’s no way to speak about corporate socialist “Smirking Andrew Scheer” is it?
The “lessest” of all of the evils, vote Scheer. And then duck.
Justin Trudeau in blackface groping an unidentified woman. LOL! He will get away with it as well! https://time.com/5680759/justin-trudeau-brownface-photo/
Garth, Garth, Garth! How long do you think it will be before TFSA ‘s are taxed? I think it might even be after this next election!!!!
Finally, as we all know, a social program can never be ended, reduced, eliminated or diddled with.
==================================
No, but it can be devalued via the printing press. Just ask $75 billion a day Jerome Powell
Which party will commit to returning the TFSA annual contribution limit to at least $10k, indexed to actual cost of living?
I just saw one of those one minute infomercials on tv. Just exactly the same as every party’s election promises. But that’s not all we’ll throw in a second one free just pay extra and people keep falling for it.
No concept of the black zero in Canada.
Why blame Trudeau for this economic atrocity ? He’s not responsible, in life or otherwise. His American handlers simply want him to act as if it’s all OK. We know it’s not. But he’s got American speech writers. They got Obama elected, same guys. David Axelrod is Obama’s campaign manager, now working as Trudeau’s chief strategist. Trudeau is acting like a PM, we know he’s being controlled by American carpet baggers. On his own, Trudeau is a clown.
https://www.thesun.co.uk/news/9958274/justin-trudeau-brownface-canada-pm/
#122 Marcus on 09.19.19 at 12:15 am
Justin Trudeau in blackface groping an unidentified woman. LOL! He will get away with it as well! https://time.com/5680759/justin-trudeau-brownface-photo/
——————————————————————
As much as I dislike the guy, this is nothing more than petty politics and dirt digging tactics. If they have to pull off this sort of crap to win an election and cannot do it on their own merits none of them deserve a vote. Such bullshit.
Some other guy in Vancouver, replace the TFSA with an annual $25,000 withdrawal and no RRSP deduction. It is better. Another key change that should be made is credit card credit, bonds with 18% guaranteed by CDIC for $100,000 for TFSA’s.
So T2, who has just spent the beginning of the election campaign attacking conservative candidates for stuff they said on social media, way back when, continuing on with his “I only apologize for others, not myself” habits, has just had to apologize.
For himself.
It seems, back in the 1980s, appearing in “brownface” (or blackface) was OK. A lot of people did it. Now it is considered the equivalent of appearing wearing a swastika and Nazi memorabilia. But back in the 1980s, it was OK.
Yes, Justin, that is true. In the 1980s, a lot of things were OK, which are not OK now. Like, for example, saying negative things about LGTBQ2+ people (which many conservative candidates have done in the past, though they now all acknowledge that they were wrong in doing so).
So, yes, Justin, times change. If you go back far enough, you can always find someone doing something that is not acceptable anymore.
Including yourself…..
Doug Ford’s approval rating hits a new low.
That’s what you get for trying to control and cut wasteful spending . It’s what you get as a politician who try’s to rain in the entitlement mentality that the average ontarian and Canadian has.
As today’s post highlights today , higher debt and taxes are eternally inevitable in this socialist communist country we call Canada
Amy rumors of the $10k TFSA coming back if Stephen the Second wins?
Trudeau has engaged in palpable and real racist behaviour.
…and you all call Trump a racist lol
#132 Cottingham a bargain on 09.19.19 at 7:16 am
Doug Ford’s approval rating hits a new low.
That’s what you get for trying to control and cut wasteful spending . It’s what you get as a politician who try’s to rain in the entitlement mentality that the average ontarian and Canadian has.
—————————————————–
That’s what you get when you claim TO TRY TO CONTROL AND CUT WASTEFUL SPENDING YET RUN HIGHER DEFICITS
45North, Canadians prospered. Garth talks about how everyone is in historic debt mess up to their eyeballs and have a condo, house they can’t afford and little to no savings, investments with lower incomes.
No wonder Canadians like you believe in Justin Trudeau Liberals sunny ways. One of these days all this socialism and money printing is going to blow up in our faces and it is because of people who think that there is no limit in life. Central banks will lose control and money will become worthless, devalued big time like so many times in history, U.S.S.R, Chile, Venezuela, Zimbabwe, South Africa, Greece, Germany, look at even the British pound.
The irony of the whole affair is that it represents the final, corpse-shudders-after-being-dead-for-four-years act of Harper campaign 2015 incompetence. Hear me out:
Regardless of what you think of oppo research and gotcha politics, the practitioners know it (usually) works, and it wasn’t a new technique four years ago. This pic was in a yearbook of a place JT was known to have worked… So EASY to find. Dropped in the middle of “He’s Just Not Ready 2015,” it would’ve dealt a mortal blow, I think.
Total Harper campaign incompetence that this wasn’t found four years ago, and used to deliver the coup-de-mort then. Ponder that.
TFSAs are funded with money that has already been taxed. – Garth
…..
#50 Shawn Allen on 09.18.19 at 7:15 pm
The notion that income on money that has already been taxed should be tax free is basically preposterous.
….
Rumor has it most tfsa’s are lowly cash savings, which earn nothing. So taxing the tfsa program is kind of like sucking a stone when you’re dying of thirst. Speaks to the government’s desperation if they do.
A “tax-free” incentive for self-reliance should be taxed??… ha. If that’s the case and I was a federal employee, I would be worried about job security. If they tax tfsas, make sure you have a few cases of beans on hand, cause society is going down. When society is humming along good, I don’t care how much money other folk have.
@#128 The CBC
The only thing better than watching Trudeau squirm in a ridiculous “presser” scrum on his privet leased jet ( Climate warming set aside for the campaign).
Was watching the grim faced announcers on the 6PM CBC ( Communist Broadcasting Corpse) news.
The Lefty agenda was dying a thousand deaths playing that photo over and over.
The election finally tripped on its own politically correct smug self rightous bullshit.
Finally.
An election worth watching.
Lets see if Trudeau tries to change the subject from politically correct BS ( where he’s now vunerable) and move to something important like…… financial solvency?
Oh. Right.
He’s spending our money faster than a runaway freight train.
Well, there’s always the climate.
#25 Jif PB
It’s like the point disappeared from this dimension and entered a black hole on the other side of existence.
——————————————————————–
It’s hard to imagine that the point was missed, because that’s where SunShowers lives!
Plus, investment portfolios in retirement turning out dividends and capital gains have a huge advantage over the tax treatment of working schmucks. – Garth
——————————————————————–
Preaching to the choir.
Cap Gains + Divvies = Bum
Like others are saying, Twinkletoes is soooo lucky that everyone’s talking only about his face
#110 cramar on 09.18.19 at 10:58 pm
Still waiting for the Cons to say they will reinstate the $10k yearly max. for TFSA accounts. I would think that would be a no-brainer to reverse T2’s reverse of Harper’s largess. Come on Scherer! What are you waiting for?
—————
He won’t do it even if he wanted too. Idiots have conflated the TFSA with something only “rich” people can use therefore it is bad. If only these idiots knew that the TFSA is the one vehicle of sticking it to (any) government now and in the future from molesting your wealth. :(
#129 Ronaldo
If they have to pull off this sort of crap to win an election and cannot do it on their own merits none of them deserve a vote.
——————————————————————–
Hah!
Don’t kid yourself.
The Libs (and all the rest of the far left politically correct fanatics out there) would be the FIRST ones to take advantage of just exactly this kind of thing.
The holier than thou nutcases out there love to make a huge deal out of stuff like this, and try to destroy other people’s lives, especially when stuff happened decades ago. They love to turn every little innocuous occurrence into a federal case and are out for blood.
Oh, but when it’s costume-wearing-selfie-boy-fake-male-feminist-socks-man, it’s just some harmless high school tom foolery. Boys will be boys.
The hypocrisy of the “woke” pseudo politically correct left is beyond belief.
Let that racist poser women-groping narcissistic coverup artist resign and never show his dumb looking kisser in public life again.
Stocks are rocking.
https://www.ccn.com/dow-jones-undervalued/
If you’re waiting to buy, wait, you’ll look even more like an idiot soon. Go for it. Hollywood is putting you to sleep with the idea that if they can fund a recession with propaganda, it’ll be worth it. ” Too bad if people lose money” days Uber nut job ” John Maher”. BTW, Cher’s all for it. Great.
If you missed it, the markets is up 320%. Is your portfolio up anywhere close to that ? If Trump Hate is holding you back, I’d suggest you slam the car door on your pee pee. Write to Cher.
PS, I’m all in. Suffered through like most, but never sold. Hah, remember the RBS howl to “Sell Everything”. I’m up BTW. Reinvesting dividends across the trough in ’09 supercharged my portfolio. Buying again, still, no bonds, no treasuries. Never invest for a zero return. The toilet can never be clean enough.
Did you all see Trudeau McBlack Race. What is it with him and silly costumes? Why India? Sheesh?
#18 Bezengy on 09.18.19 at 5:13 pm
T2’s overspending of 80 billion in 4 years divided by 18 million taxpayers. My share is almost $5000. $10000 for me and wifey. Am I wrong to think I owe this money? Am I wrong to think you do too?
___
It’s easy to pretend it’s someone else’s problem – until the invoice shows up in your mailbox…
#93 Black and White on 09.18.19 at 9:51 pm
#65 Paul on 09.18.19 at 7:48 pm
Well we may not need to worry about what Justin may or may not do after this one!
https://time.com/5680759/justin-trudeau-brownface-photo/
Back in 1979/80 I went to a halloween party in blackface dressed as a pimp, think Starsky and Hutch’s adorable Huggy Bear. There I was blacked out and wearing bellbottoms, cowboy boots, a purple smoking jacket, and a 10-gallon hat. Every single person at the party laughed, smiled, and came up to talk with me and to ask if I knew where to get some weed. Nobody thought anything about political correctness or racism. It was all about having fun and dressing up.
Here we are 36 years later, some of my best friends are black, my girlfriend is asian, my mother is still white, and my employees look like the United Nations. Definitely wasnt racist then, still aint now.
_____________________________________________
What was or was not considered racist then is no excuse as the newly minted generations are much less tolerant of such indiscretions. I did not give it any thought if he did paint himself up and act like a buffoon however I am not of middle eastern or south Asian decent so I do not have the moral positon to discern those feelings as they do. I do appreciate that if they feel insulted then that is their right and I support them. What will be interesting is that everyone will jump on one train or the other to support Trudeau or to denounce him. If he gets a hall pass for this then the Liberals and Trudeau himself will no moral high ground in which to preach to the masses when a Conservative is accused of anything touted as racial. My grandmother always says “what is good for the goose is good for the gander”. So much for treating Woman as equals and our inclusiveness for people-kind.
BTW Did our budget ever get balanced?
Bytor’s Unabridged Dictionary (Second Edition) defines karma as the condition where one finds oneself hoisted on his own petard by the PC monster he enabled.
It’s simply delicious.
#42 Mattl on 09.18.19 at 6:50 pm
Where do you think the CCB, for instance, goes? Clothes, vehicles, dinner out, home reno’s. That’s all this spending really is, stimulus as compassion.
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Not when the CCB recipient doesn’t work…
https://globalnews.ca/news/5922861/justin-trudeau-brownface-video/ Probably has killed a bunch of the promises this election. Though a 600 million m dis payoff would have fixed this. Trudeau is toast…
The tsunami continues. Atop the universal tax cut, the goosed-up shared-equity mortgage, the guaranteed income for new moms, the fatter kiddie cheques, swelled RESP grants, the free startup money and the flood of new child care spaces comes more wrinklie pogey. The latest big promise from Mr. Socks is a 10% boost to OAS payments for the 75+ set, and a huge 25% bump in CPP for old people who lose their spouses. The cost of this: about $3 billion more a year.
The spending is breathtaking. Especially in a nation where there’s no extra money to spend. It’s all borrowed. And today’s deficits are tomorrow’s taxes. Surprise, kids!
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What are we cutting from the budget to accommodate all these new programs?
Isn’t it great how we always choose to judge past actions by the sentiments of today? The truth is that some things done in the past were perfectly acceptable.
I once dressed up as a storm trooper for Halloween and my friend dressed as Yoda. Were we being culturally insensitive to star wars?
That said, Justin deserves any fallout he gets since he insists on constantly apologizing for actions that aren’t his to address and were judged by a different standard at the time.
Not just “brown” face….but also “black” face!
https://www.msn.com/en-ca/news/elections/exclusive-video-shows-trudeau-in-blackface-in-3rd-instance-of-racist-makeup/ar-AAHx7K1?ocid=spartanntp
At least Trump and his orange face only offends the Oranges.
Hi Garth, what will personal income tax look like in Ontario in 25 years? How many years before tax deferral will catch up with rising personal taxes?
If this election is to be decided on hypocrisy, I will declare myself a deplorable and vote for the least politically correct party I can find. Right now that’s the PPC. Any other party interested in rising to the challenge?
With Pumpkinhead (nice one B.G.) and Blackface at the helm in N.A.
“What me worry?”
I dedicate this tune to the liberal party of Canada.
Crank it….
https://youtu.be/MfmYCM4CS8o
T2 hung by a rope he made all by himself to hang others..
Love it. Great time to be alive…
#50 Shawn Allen on 09.18.19 at 7:15 pm
The notion that income on money that has already been taxed should be tax free is basically preposterous. It would lead to even more wealth concentration. Even more breaks for the most wealthy. Would facilitate even more inter-generational building up of fortunes unearned by the heirs.
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Yeah, I’d rather be dragged by my ***** through a mine-field than ever let anyone make tax free gains on previously taxed earnings. Heaven forbid.
Someone out there must despise the man deeply. The photo in question was just as available in 2015 as it was yesterday. Why did we not see it before Sunny Ways blanketed the land?
Myself, I only wished he would fade away quietly.
Far better he should fall on the sword of his dismal governance than on an ill-advised and thoughtless frat party stunt from two decades ago
A third video of Justin Trudeau in a separate incident wearing full body “blackface” makeup has surfaced and will be released today by Global News Canada. The left is eating their own. Glorious!
JT’s goose may indeed be cooked although being backed into a corner may make him a more dangerous opponent. The televised debates are going to be that much more interesting. Trudeau appears to have some eccentricities, which is certainly not a first in Canadian politics.
I have read that William Lyon Mackenzie King was able to govern Canada effectively. In later years, it came out that he was eccentric in that he was a spiritualist (who believed in being able to communicate with the dead) and also for having serious discussions with his dogs (which may mean he was smarter than most).
In this age of mass and instant communications, with nothing embarrassing ever really being lost, maybe we are just seeing an eccentric person being revealed to us in the present versus what would happened in the past where such information would only be revealed after a person’s death.
Where did we go wrong? I think it all started to go off the rails after we elected Trudeau the first versus Robert Stanfield.
#137 Tannhäuser Gatekeeper on 09.19.19 at 8:01 am
The irony of the whole affair is that it represents the final, corpse-shudders-after-being-dead-for-four-years act of Harper campaign 2015 incompetence. Hear me out:
Regardless of what you think of oppo research and gotcha politics, the practitioners know it (usually) works, and it wasn’t a new technique four years ago. This pic was in a yearbook of a place JT was known to have worked… So EASY to find. Dropped in the middle of “He’s Just Not Ready 2015,” it would’ve dealt a mortal blow, I think.
Total Harper campaign incompetence that this wasn’t found four years ago, and used to deliver the coup-de-mort then. Ponder that.
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Was thinking similar thoughts as things unfolded last night.
TSFA would have been at around 11,000 by now, can’t get that compounding time back.
At the current pace it will take around 15 years to get back to where it was, plus the cost of the extra gains.
I said at the time maybe Harper should have moved it to 7,500 first, so it wouldn’t have been such a big election issue.
The fact that we have people voting against other people trying to self-fund their own retirement shows you exactly where we are at.
If Harper had won, people would be well and truly sick of him by now, but we would have been in better shape overall and Alberta might have been placed softly in the tumble dryer instead of being hung out to dry…
M45BC
#70 Oilaphant on 09.18.19 at 8:12 pm
Good column today. I have a question for Garth (a real one, not a sarcastic one): what is the better way than OAS for our society to manage all those many, many, many people who make it to old age and who have failed to provide for themselves?
OAS is essentially a ‘universal basic income’ for elderly people; specifically for elderly people because good luck realistically getting and holding a job as an 80 or 90 or 100 year old. What about a frail 95 year old who is estranged from their family or never had kids?
I would hope that we’re not saying “let them starve and die alone in the streets.” If that’s not what we’re actually saying then, honestly, what is the better way to provide the basic necessities for people in that situation?
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Remove OAS and make the old folks a formal family responsibility. That would solve the old age expenses and fertility rates at the same time. :)
Seriously though – short of family helping out – the only other option is spending money. There is no way to avoid having to deal with folks who end up old and broke.
IMHO – the best case scenario is for those wrinklies with kids – that they would be their “social net”. The government could incentivise this action and stay out of the way. The rest would have to be covered by the government.
#152 Sail Away on 09.19.19 at 10:04 am
Isn’t it great how we always choose to judge past actions by the sentiments of today? The truth is that some things done in the past were perfectly acceptable.
I once dressed up as a storm trooper for Halloween and my friend dressed as Yoda. Were we being culturally insensitive to star wars?
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^ That’s a really weak argument. Star Wars is make believe stuff. There isn’t a race of Yodas out there to be offended.
Let’s use a semi neutral example why what we have done in the past has everything to do with today and how we should be judged.
In the past, it was legally impossible for a man to rape his wife because being married was considered as implied consent. So if a man has repeatedly forced himself on his wife, back then it was perfectly acceptable, but today it would be considered rape.
Regardless of the time, is there still not a victim in the scenario?
#80 Smoking Man on 09.18.19 at 8:42 pm
T2 pic surfaces, he’s in black face gropping a woman…hahaha…
Dude is such a hypocrite…..
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That was an interesting spot to uhh… “rest” his hand wasn’t it? I noticed it right away. No way in hell would I try and pull a stunt like that. A little invasive to say the least.
Maybe different set of rules for T2 compared to IH though…
#152 Sail Away on 09.19.19 at 10:04 am
Isn’t it great how we always choose to judge past actions by the sentiments of today? The truth is that some things done in the past were perfectly acceptable.
I once dressed up as a storm trooper for Halloween and my friend dressed as Yoda. Were we being culturally insensitive to star wars?
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Absolutely that was insensitive. Star Wars fans were kidnapped from their homes and used as slaves for 400 years. Then a series of movies were made that reduced them to crude stereotypes. They have every right to be offended
Muppet.
The die is already cast. All the major economies (+ Canada) are sinking in one form of debt or another. There is *nothing* that will stop this debt train from accelerating & crashing (and I do mean nothing – no political party in any country will deal with the issue, and most are past the tipping point anyways).
5 years ago one could still have some sliver of hope that things might get addressed. Some nations like Canada (at federal level) had dealt with deficits, US was slowly improving, and US opposition was blathering on about debt control. But the last 5 years then proved that the sliver is gone (Poloz drops rates to 0.5% spurring a housing bubble & debt bing, Trudeau ramps debt, Trump wins and does exact opposite of what he said about debt/deficits & position on interest rates, ECB doubles down on disaster, protectionism, etc).
The US federal debt is soon to hit $23T, growing at over $1T per year, NOT INCLUDING the unfunded benefits liabilities (social security, Medicare, Medicaid). After 10 years of economic expansion. China is estimated to have $40T in debt. Europe has high debt nations, negative interest rates, and things are still going downhill. Japan is the poster child high debt, no growth, and lost decades.
No amount of “higher taxes” in the future will correct the issue. It is not fixable within the current global financial system. A financial reset of some kind is going to happen. Debt forgiveness (enforced), money printing, change in global reserve currency situation, currency devaluations – any and all of the above.
The MMT crowd (which includes all Democratic contenders to some degree given their promises, and Trump would also love it) believe the answer is just to print money, for gov’t and the people, or even pay off the debt. Which is of course technically true. Canada could do the same. Just print $3T CAD and eliminate all public debt. Easy peasy.
Except…massive money printing has one and ONLY ONE, outcome in history. Massive inflation and devaluation of money. Financial ruin for most. Think it can’t happen here, or US, or Europe?
I remember a bachelor party years ago just west of Montreal. The groom was drunk and fell asleep, and a freight train stopped. Then the groom was placed in a coffin as planned, and placed in an empty freight car shutting the door. The groom was finally found in Winnipeg, and sent back home. Not so funny anymore, but those were times we want to forget.
#168 PastThePeak on 09.19.19 at 12:03 pm
Except…massive money printing has one and ONLY ONE, outcome in history. Massive inflation and devaluation of money.
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History is history, and today is today. We are living in deflationary times: technology, globalization, women in the workforce. There are too many forces pushing down prices that maybe it’s different from now on.
Banana Boat Song to ruin? More likely a defining political TEFLON moment. All the big time leaders bounce this chit off and grow from it.
Next few days will tell.
https://www.youtube.com/watch?v=oKD_PfCQx9A
How is the Canadian stock market sustainable? Have you seen the Stock Index lately. To me that screams “unsustainable” growth. Next is a big fall.
The market was unloved and undervalued last year (which is why I suggested buying in). This year it’s playing catch-up. Markets do not fall just because they rise. – Garth
#165 n1tro on 09.19.19 at 11:51 am
#152 Sail Away on 09.19.19 at 10:04 am
Isn’t it great how we always choose to judge past actions by the sentiments of today? The truth is that some things done in the past were perfectly acceptable.
I once dressed up as a storm trooper for Halloween and my friend dressed as Yoda. Were we being culturally insensitive to star wars?
————
That’s a really weak argument. Star Wars is make believe stuff. There isn’t a race of Yodas out there to be offended.
Regardless of the time, is there still not a victim in the scenario?
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Reasonable point if we’re talking about slavery. With an Aladdin costume I would say no racism since there has been no historical and systemic oppression of Arabs by Canadians, and Aladdin was a heroic figure in Arabian folklore. No different than dressing up as Blackbeard, Superman or Dumbo.
Speaking of Dumbo, I see now a full Trudeau blackface video has emerged. Oh well… can’t explain that away.
My wife and I watched the tyranny on the news last night and both of us looked at each other in disbelief!
My wife who is Asian, said What is wrong with dressing up for a play?
We saw no maliciousness here at all. Just tyranny from the Media trying to sell advertising.
If the Media wanted to they could have spun it the other way and said Trudeau is so inclusive he even wore Brownface at a school play!
Those making this into a racist issue are the real racists.
If someone wants to be hurt they will be hurt. If someone looks at it as it really is, they would see no racism here.
Nothing to see here… move along rubberneckers!
Mr. Trudeau said it was racist. Maybe you should take it up with him. – Garth
If that was Sheer in that video and pictures, he’d be in a Siberian gulag by the end of the week. The radical left SJW army would take to the streets burning effigies. Once the the good ship Liberal sailed swiftly into another majority government, legislation would be passed to never again utter the name “Sheer”. And to never, never forget. And the tears, oh so many tears.
In addition:
What ever happened to free speech?
The Tyrannical SJW’s will never stop until all life is serious and even Comedy is outlawed.
Are not the Arts in all forms and Music exempt from having to deal with a black cloud of seriousness hanging over them?
How many times have you heard the N word in Music and on movies? Did they make the Global News headlines that day?
This is pure and simple, sick and dirty politics. I’m thinking of throwing my vote towards Trudeau in Sympathy.
Mr. Trudeau said it was racist. Maybe you should take it up with him. – Garth
I see that as his strategy to make this go away.
He has 2 choices.
1. Defend his actions, rightly as not racist and have a lengthy debate that will last until election night.
2. Profusely over-apologize and make it go away saving a million votes.
The people who want to be hurt will be hurt, especially if option 1. is chosen.
If option 2. is chosen those who want to be hurt will feel some sense of empowerment that they made the PM apologize.
I have been thinking of throwing my vote towards the Liberals for another reason.
Trudeau is a Free Trader. Scheer is a simpleton like Trump and has stated that he wants to throw up tariffs to incoming Chinese goods.
Free Trade is the way to go. Canada is nothing more than a Pimple on an Elephants ass with China.
We would not even move their GDP enough to be measured. Our whole country is the size of one of their cities.
I can forgive Trudeau for much of his idiocy if he at least protects our economy with Free Trade. that is the one thing he does right.
Conservatives introduced the FTA. Liberals opposed it. – Garth
Mr. Trudeau said it was racist. Maybe you should take it up with him. – Garth
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The term ‘racist’ has been so over used by the Left as to become meaningless.
Defn : “a person who shows or feels discrimination or prejudice against people of other races”
I can’t stand JT but this is a great example of the insane political correctness. What he did wasn’t racist.
In my drunken University days I dressed up as a women for one party….does that make me sexist? How is painting your face black to represent a black person racist?
The world is going mad…..
#174 NEVER GIVE UP on 09.19.19 at 1:25 pm
Those making this into a racist issue are the real racists.
If someone wants to be hurt they will be hurt. If someone looks at it as it really is, they would see no racism here.
Nothing to see here… move along rubberneckers!
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Let me guess…both you and your asian wife are Liberals? The left seems to give themselves passes for everything yet if allegations of any wrongdoing from 30-40yrs ago for someone not in the same click, it is guilty until proven innocent right?
Being brown faced during a school play is ok? What about full bodied black + black faced at (what looks to be) a sporting event? Let me guess, you and your wife will justify it in your mind as Trudeau supporting black athletes? The white Colin Kaepernick of the north?? Oh Canada! Our home and native land…true patriot love….
Mr. Trudeau said it was racist. Maybe you should take it up with him. – Garth
Mr. Trudeau has no choice, even if he truly believes, as I do, that there is nothing wrong with dressing up for a costume party. He has to say that it was racist or risk being crucified by the MSM. He is a politician trying to win an election, he can not speak his mind freely, none of the candidates can if they want to have any chance of winning.
Mr. Trudeau said it was racist. Maybe you should take it up with him. – Garth
Mr. Trudeau has no choice, even if he truly believes, as I do, that there is nothing wrong with dressing up for a costume party. He has to say that it was racist or risk being crucified by the MSM. He is a politician trying to win an election, he can not speak his mind freely, none of the candidates can if they want to have any chance of winning.
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It’s way past a race issue. This PM has been virtue explaining, PC lecturing and in general talking down to Canadians with his superiority toned arrogance for the past 4 years. When the lights shine back on him he fails miserably. His agenda has always been to shine on the world stage. He is now the laughing stock – karma?
If the current stupidity in the world’s governments is a sign that societies are evolving, we’re heading in the wrong direction(s).
Oh…and while we’re expressing disgust, who thought that daily 3-hour “news” on TV was a good idea? Gawd….
Re: #107 Kilt on 09.18.19 at 10:43 pm
Throughout the decades if you have money you always vote conservative in Canada.
#184 Tony on 09.19.19 at 3:51 pm
Re: #107 Kilt on 09.18.19 at 10:43 pm
Throughout the decades if you have money you always vote conservative in Canada
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and if you want someone else’s money vote Liberal or NDP.
#180 n1tro on 09.19.19 at 1:58 pm
#174 NEVER GIVE UP on 09.19.19 at 1:25 pm
Being brown faced during a school play is ok? What about full bodied black + black faced at (what looks to be) a sporting event?
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The intent of the costume at an Arts event was obviously not racist.
The example you set forth is not protected by time, place and manner exceptions. In your example I agree that it could be construed as hurtful and racist.
It is a slippery slope to complete control of your ideas. Note some of the examples below of the Tyranny of the masses and what kind of prison sentences some have endured for their thoughts.
[“Throughout the 19th century, sedition, criminal anarchy and criminal conspiracy laws were used to suppress the speech of abolitionists, religious minorities, suffragists, labor organizers, and pacifists. In Virginia prior to the Civil War, for example, anyone who “by speaking or writing maintains that owners have no right of property in slaves” was subject to a one-year prison sentence.
The early 20th century was not much better. In 1912, feminist Margaret Sanger was arrested for giving a lecture on birth control. Trade union meetings were banned and courts routinely granted injunctions prohibiting strikes and other labor protests. Violators were sentenced to prison. Peaceful protesters opposing U. S. entry into World War I were jailed for expressing their opinions. In the early 1920s, many states outlawed the display of red or black flags, symbols of communism and anarchism. In 1923, author Upton Sinclair was arrested for trying to read the text of the First Amendment at a union rally. Many people were arrested merely for membership in groups regarded as “radical” by the government. It was in response to the excesses of this period that the ACLU was founded in 1920.”]
https://www.aclu.org/other/freedom-expression
BTW I consider myself a fiscal conservative with different ideas. I don’t identify with any labels.
#34 ‘Unbalanced’ – good point. OAS comes out of general government revenues, which means our tax dollars. So in fact anyone who has ever paid taxes has paid for OAS as well as other government programs like GIS, the Child Tax benefit etc.
OAS may or may not be ‘needed’ by its recipients, but that doesn’t erase the fact that tax dollars fund it. Plus I have to wonder about the statistics regarding how many Canadians past age 55 who apparently have not saved anything to fund their retirement with. Fine if they are supposed to receive a decent work related pension in addition to CPP or have other means to support themselves, but not so great if CPP is all they’ve got.
The question raised however is whether someone should receive a government benefit just for surviving to a certain age, or for having a child. Thing is, if one agrees that this is wrong, then what about providing government benefits to those who never provided for their ‘golden years’? Should we as a society provide an income for those who could have saved/invested etc. but instead chose to spend their funds on whatever suited them today? Should we as a society pay for medical care for anyone who chose to smoke, abuse drugs or otherwise destroy their health? Once the door opens to denying benefits where does it end?
Obviously the lunatic racist liberals are increasing manic. Trudeau is a racist no question. Never give up? Trudeau should do the right thing, stop lying, there’s no forgiveness. We’re tired of being lied to by a clown.
https://nationalpost.com/news/politics/election-2019/fallout-from-trudeaus-brownface-photo-bombshell-sure-to-dominate-campaign
He lied about doing it at all, he lied about the second time, then there was a third, now a video? Lies lies lies lies. Trudeau, before you’re on trial.