The big fix

Lizzie May would fight climate change by taxing financial transactions. A lot. Seventeen billion a year, collecting money every time you bought an ETF. Jag & the Dippers would bring in a wealth tax to pay for their promises, including pharmacare for all and billions to build cheap houses. This week J said his party would ‘gut’ CEO compensation.

The Libs have already created a high-end tax bracket, announced a new luxury tax, will limit the ability of businesses to deduct debt payments and ask the CRA to target high-income-earners. The Tories say they’ll restore entrepreneurs’ ability to pay family members and keep retirement savings inside a corp. Both the Libs and Cons will cut middle-class taxes. Trudeau will finance that with debt. Scheer will cut foreign aid by 25% to find the dough.

For average voters, it’s a minefield. My old boss, Kim Campbell, once mused that elections are no time to discuss serious policies. She was right. And she was crushed for saying it. Most people haven’t a clue what the implications are of a wealth tax, making money via dividends or a financial transactions levy. Yet here we are. Voting on it.

Well, time for a reality check. Average beavers will cast ballots based on what they get out if it personally. Few grasp or care about the national interest. And as stated  yesterday, the role of government has morphed into covering over people’s personal financial failures.

Here’s fresh evidence. Accounting firm BDO did a big survey. The results suck.

Half of people (more than half – 53%) have no savings, no disposable income and live paycheque-to-paycheque. Almost 60% carry credit card debt. A third can’t pay what they owe. Most indebted is the GenXer cohort. Close to 40% have no retirement savings and half say they can’t put aside anything – and these are people in their 40s and 50s. Yikes. The number who say they’ll run out of savings before they croak is 69%. Women are a mess. Almost 60% have no disposable income and 43% no retirement savings. And, yes, females live longer and need more.

Add to this record household debt of over $2.3 trillion, billions in HELOCs not being paid off and average incomes which are barely crawling ahead and it’s not hard to find the lowest common political denominator. Give them stuff. They’ll pick you.

This should alarm people with wealth – paid-for houses, good incomes, savings, cashflow-generating assets, businesses and portfolios. It is a short leap from a luxury tax, a hit on stock options or special tax brackets (as now) to a change in the treatment of dividends, restrictions on tax-free real estate gains or (ultimately) a wealth tax. The growing divide between the 1% and the 99% more of less guarantees this eventuality.

Remember, if you earn above $200,000 a year you’re a 1%er. Only 280,000 people are in this category. In terms of assets, at least $1 million (houses don’t count) is required to be in the club. There are fewer than 300,000 Canadians with net worth between one and five million. Only a few thousand families exceed that threshold – and they are the 0.01%.

As you know, a majority of provinces now have top marginal tax rates of 50% or more. High-income earners overcontribute to the system yet are means-tested out of receiving ‘universal’ benefits like the kiddie and wrinklie pogey. If the Trudeau-Morneau tag team decides to whack the self-employed more, up the cap gains inclusion rate or erode the benefit of dividends, it’ll be this group affected the most.

The lefties who huddle for warmth in the corners of this blog, burning old posts, will think that’s just fine. They reflect the common political wisdom today of justified income redistribution. We’ve all read the dollar-is-a-dollar arguments claiming people collecting investment income should be taxed like the schmucks on the factory floor – even when they own the factory. But the danger in that is immense.

There aren’t enough rich people to gut. Second, they’re already paying a ton. Third, they don’t need to stay here. Fourth, they’re usually employers, not employees – creating income for others. Fifth, investing means risk, whether it’s starting or running a business or buying stock in a company that could stumble. Showing up for a paycheque, selling your time, is inherently safer than being an entrepreneur. Sixth, most employees have pension plans, whether a gold-plated DB or a group RRSP. Most self-employed have none. Seven, it’s all about ambition, enterprise and drive. Society should be encouraging and rewarding those silly enough to employ others, not whacking them once they succeed.

The problem today is not that a few people don’t pay enough. It’s that most people spend too much, save too little and expect a lot. And they all get a vote. So keep your knees together.

 

200 comments ↓

#1 crowdedelevatorfartz on 10.01.19 at 4:40 pm

Geez, by the time I reach the 1% tax bracket it will almost be time to retire…..
:)

#2 SoggyShorts on 10.01.19 at 4:40 pm

#96 Three Hurrays For Taxing Bubble Gains on 09.30.19 at 9:16 pm
#87 SoggyShorts: “There’s no risk in collecting a wage so it’s not the same thing as cap gains on investments.”

If that were true, I might agree with you. But in the past 10 years….

*******************************************
Oh has the stock market only been around for 10 years?
The crash of 2000, 2008 and a 20% drop last Christmas are meaningless?
If there’s no risk why haven’t you maxed out all of your credit and used it to buy 3x leveraged ETFs?

#3 SoggyShorts on 10.01.19 at 4:42 pm

#151 Penny Henny on 10.01.19 at 10:25 am
#113 SoggyShorts on 09.30.19 at 11:38 pm
#92 #82 Three hurrays for taxing bubble gains on 09.30.19 at 9:05 pm.

I always hear that the reward for taking a higher risk is a greater rate of return. For example I expect a higher rate of return for buying XIU (TSX Index fund) instead of buying a GIC. Isn’t my higher rate of return my reward for taking a greater risk?
If so then why should I be taxed a lower rate on my higher returns? Is this a Double reward?

Please try to answer these questions without name calling. Thanks
********************************
In short: yes.
The single reward of a chance at higher gains for more risk doesn’t cut it. A little tax break adds more incentive. (how much is needed is debatable) The fact is that taxing something discourages people from doing it. So if (for example) you taxed cap gains on stock investments money would flow into other investments like dividend darlings, housing, or offshore options. The end result is that if you tax one thing too much you don’t actually increase tax revenues.
—————————————————————
#151 Penny Henny on 10.01.19 at 10:25 am
#113 SoggyShorts on 09.30.19 at 11:38 pm
#92 #82 Three hurrays for taxing bubble gains on 09.30.19 at 9:05 pm.
Soggy lets take this example and apply it an existing company.
Dollarstore for example. Lets say that from this point forward no one bought any DLR stock how would this negatively affect Dollarama the business? Would it not continue to exist?

*******************************************************
Well if no one bought any that means no one is able to sell any so the value would drop to zero wiping out millions…or I guess shareholders would all demand that the assets be liquidated so that they could get their share. So to answer your question: No. If no one ever bought a share in dollarama again it would not continue to exist.

The buying and selling of company shares is the passing on of the risk and gains. Buying and holding until you die is pretty useless- at some point, you want to spend your money, so you cash out and someone else assumes the risk.

As others pointed out, further investment in an established company gives them capital for expansion.

#4 Dumbwealth on 10.01.19 at 4:45 pm

It seems like the existence of a middle class is an exception to the rule, looking at history. The world naturally polarizes with a vast concentration of power and wealth in the hands of the few. If we value a society with a robust middle class, we must work hard to preserve it.

People need to look inward and start with their own ability to create wealth. Big brother can set the legal and tax framework, but we all need to be accountable.

Start with the essentials. Here are tips from 20 different Financial Advisors in Canada:

https://dumbwealth.com/20-wealth-tips-from-real-financial-professionals/

#5 Sask to AB on 10.01.19 at 4:49 pm

Good grief Batman! What a mess……..
How will our kids ever save for the future in this environment…….

#6 Annie McBattlefield on 10.01.19 at 4:53 pm

Garth, if May wins, would you move to the USA?

#7 Brett in Calgary on 10.01.19 at 4:53 pm

“The problem today is not that a few people don’t pay enough. It’s that most people spend too much, save too little and expect a lot.”
=====
Absolutely. Special Canadians, the most specialist of all peoplekind.

#8 Tannhäuser Gatekeeper on 10.01.19 at 4:55 pm

Suggested reading:
BUBBLE OR NOTHING: How the Long-Term Swelling of
Household and Business Sector Balance Sheets Has Increasingly Forced Lenders, Investors, and Borrowers to Sacrifice Prudence, Financial Rewards, or Both
https://www.levyforecast.com/core/wp-content/uploads/2019/09/Bubble-or-Nothing.pdf

#9 one big joke on 10.01.19 at 5:05 pm

good thing i have a number of passports….

#10 Calgary Cowboy on 10.01.19 at 5:06 pm

Great post Garth! If only the audience was wider and had more common sense and a forward thinking approach. We’re doomed.

#11 Kelly on 10.01.19 at 5:12 pm

It’s quite simple.
Tell the electorate what they want to hear.

You , the great electorate class, get more.
You, the tiny minority entrepreneural rich class, get less.

Every party is singing from the same hymn book.

Atlas Shrugged is coming to Canada.

Adjust your lives accordingly.

#12 Bonhomme Carnaval on 10.01.19 at 5:18 pm

The current Canadian political climate reminds me of that in Greece between 2004 and 2012. Especially the portion under George Papandreou, son of Andreas Papandreou (Google it).

Well, we all know how that turned out…

In my humble opinion we should consider less income tax and more consumption taxes; might even be good for the environment.

Wealth taxes are dangerous, since wealth is a question of perception–my perception my reality…

There’s nothing wrong with free healthcare, free pharma, and affordable (and limited) education (one undergrad, one Master’s, one PhD).

However, I don’t see why the tax payer should be subsidizing highways, low energy rates, baby making, and mortgages (just to name a few…).

Perhaps we should also introduce mandatory military or social service like many other Western nations offering generous social programs, guaranteed incomes, and the like (?).

#13 Buddy on 10.01.19 at 5:21 pm

There’s a party that is listening. The PPC.

Wonder what a landslide this election would be if Mad Max wasn’t smeared and lost the conservation race 49%. As Canadians, the national interest would be most definitely on the right track. Heck, he’s got more experience than all of the candidates combined. Why in Canada, is the vote always cast to get the idiot out of office, not who the best leader would be?

Did Preston Manning teach you nothing? – Garth

#14 Its the hypocrisy on 10.01.19 at 5:21 pm

Butts making sure there are no questions on stuffed socks…..

The fix is in…..

https://www.thepostmillennial.com/election-debate-moderator-had-dinner-with-trudeaus-disgraced-top-advisor-week-before-debate/

What a truly depressing election

#15 Paddy on 10.01.19 at 5:25 pm

Team Turdeau better not mess with the dividend tax credit, It’s the only reason I have maple in my taxable account.

#16 Andrew on 10.01.19 at 5:26 pm

Sounds like a blueprint of why individuals may want to choose to put a small slice of their wealth in a hard, sound, immutable, hard to confiscate vehicle outside the traditional financial system. Because who really knows?

Bitcoin.

Then you can lose it all to pirates and manipulators instead of the government. Good thinking. – Garth

#17 The Wet One on 10.01.19 at 5:28 pm

Yeah.

Pretty much that.

But whatever, it’ll be fine in the end.

Remember, climate change (another apparently real and increasingly immediate threat) will probably collapse civilization anyways.

The thing will fix itself.

It’s sad that too many people are sucked in by the Ad Man to their personal detriment.

So it goes…

#18 JSS on 10.01.19 at 5:33 pm

Apparently, it is acceptable to brag about your $1M house to guests at a party.
But unacceptable to “counter” brag that your $450,000 house is paid off.

we left the party early.

#19 Remembrancer on 10.01.19 at 5:34 pm

There’s nothing wrong with free healthcare, free pharma, and affordable (and limited) education (one undergrad, one Master’s, one PhD).

However, I don’t see why the tax payer should be subsidizing highways…
————————————————-
Its all infrastructure investment – in human capital/skills or transportation of goods and services…

#20 Flop... on 10.01.19 at 5:34 pm

After being here nearly 20 years, and finally starting to exercising my right to vote, a while back I was looking forward to making my federal debut.

But man oh man, look at these guys the parties have put forward.

You can’t really blame the individuals for being themselves, but the parties need to have a good hard look at themselves.

Are they still parties?

Acting more like corporations each year…

M45BC

#21 yvr_lurker on 10.01.19 at 5:34 pm

In my view the group that has shouldered the most in this country for paying taxes are those high income earners taxed at marginal rates that seem to be on the upswing everywhere in Canada. Many of these people can not shelter taxes through setting up “corporations” (that in many instances are a sham), and are not in the elite group receiving tax sheltered dividends. They are also not in the group of satellite citizens who earn their money abroad, all the while hiding world wide assets from the CRA all the while living in 5–10M mansions on a CRA reported salary of 40K per annum. Let’s level the playing field a bit a bit here with these privilged groups. We are indeed fortunate, but my little family paid just under 140K in income tax last year at the top marginals. Not elliigibe for any forms of “benefits”: tax credits, income splitting, bogus corporations etc…

That being said, a wealth tax would not work. People would just hide assets in items that are hard to “measure” and I don’t see the Gov’t being able to enforce anything. If they couldn’t do anything with the rampant money laundering going on in BC and elsewhere for 15 years, how on earth would they ever get a wealth tax set up. The idea though of an inheritance tax, like in many other industrial countries, on a sliding scale over some threshold would be much easier to administer…. This I would support, and would reduce the number of priviliged trust fund babies (like T2).

#22 Sold Out on 10.01.19 at 5:35 pm

Garth, this is a genuine request for the benefit of your experience in government. What would you propose to break this vicious cycle of low interest rates and inflated asset values that has led us to the edge of fiscal ruin, as mentioned in today’s blog? Where is the path out of this madness?
Maybe if the average voter had some notion of what is actually required to reverse the damage caused by persistently low interest rates, they would demand it of their leaders. The Japanese economy doesn’t seem to have uncovered the magic formula to break out of stagnation and low interest rates, and they have had a long time to work on it.
Maybe the post-WW 2 boom was actually detrimental, as it super-heated national economies, and raised expectations beyond what could be delivered in the longer term.
When well-educated, middle class Mills are unable to achieve middle class goals such as homeownership and saving for retirement, is it really their fault?

#23 Buddy on 10.01.19 at 5:38 pm

Did Preston Manning teach you nothing? – Garth

Really? Not even worried about it. Conservatives win at least a minority.

You gripe and moan about the state of Canada but present the same, tireless option. Problem is, this time around, PC-LIBS-GREEN-NDP are basically the same party. Let’s call them the Clueless Party. If we’re swirling down the toilet we need options. Not saying PPC is the option but at least Mad Max created one.

#24 So What Is Your Solution on 10.01.19 at 5:38 pm

You have a lot of critique, Garth, but you not giving any indication of what solutions you would propose to keep Canadians from finacially falling further behind. Tell us, what are your magic policies that would help Canada’s economic outlook?

#25 Loonie Doctor on 10.01.19 at 5:40 pm

One good thing about being a high-income professional is that we can adapt. Watching how this train is moving, my wife and I are planning to adapt by downsizing and I will go down to part-time work. Spending less and producing less is probably not great for the country, but we aren’t going to be martyrs.

We’ll enjoy life and not strive to be the tall blades of grass. You’ll only get mowed to fertilize the other grass while the ones pushing the mower (those with large family fortunes like T2 and Mourneau) are unscathed and get to play on the lawn.

There will be enough people who can’t or won’t control their consumption and will continue to grind away to keep it going for a while. However, everyone eventually weighs whether working the extra hours is worth it or not and with diminishing returns for the time/effort, more will start to change their behaviour. Those that can. As I said, most high-income professionals have options if they lift their heads up and deviate from the script. We are becoming more and more dependent on a shrinking portion of the population to fund the rest. I don’t plan on being the last one holding the bag. Should be interesting.
-LD

#26 conan on 10.01.19 at 5:49 pm

Big policy of the future is going to have to be innovative. There is no other direction to go as taxes are at near top limit.

The savings rate is low because many people do not make the money to be able to save anything. Rent has sky rocketed, and the average family needs 3 salaries, instead of two.

Private industry can only do so much. The answer is smart government.

We will see that in our life times?

#27 Remembrancer on 10.01.19 at 5:50 pm

#13 Buddy on 10.01.19 at 5:21 pm
Why in Canada, is the vote always cast to get the idiot out of office, not who the best leader would be?

Did Preston Manning teach you nothing? – Garth
————————————————————-
The difference this time is that there is a whole country’s worth of candidates who, based on my completely unscientific survey of 3-4 ridings worth of signs I’ve driven past, are former CPC unelectables who are always beaten by Liberals or fringe Conservatives who were in their riding association’s picks somewhere in 2nd – 3rd place in past nominations and got picked up on the Max train.

Speaking of the man, other than him saying out loud what you’d want to be able to say out loud, what really is the attraction? Not as a protest of the other guys & gals, what’s the vision thing that really gets you energized, b/c I frankly can’t see it…

Thanks in advance for an insightful response!

#28 Flop... on 10.01.19 at 5:50 pm

I like watching the mining shows Gold Rush and Bering Sea Gold, the people on them are very resourceful.

Just found out where all that gold goes.

John Tory has the Raptors, but does he have 37 billion in his basement…

M45BC

https://www.dailystar.co.uk/news/world-news/135-tons-gold-37billion-cash-20382092

“Police have found mountain of 13.5 tons gold and haul of $37 billion in cash in a raid on the home of an allegedly corrupt ex-mayor in China.

Chinese officials came across the incredible mounds of gold bullion while searching his house in Haikou City.

Zhang Qi, a former mayor and member of the Community Party, was undergoing a review by the National Supervisory Commission.

He will now have even more explaining to do after police uncovered the multi-billion dollar haul in his basement.”

#29 Bob Dog on 10.01.19 at 5:51 pm

Sound like its time to learn Norwegian.

#30 Grandview cut on 10.01.19 at 5:51 pm

#9 one big joke on 10.01.19 at 5:05 pm
good thing i have a number of passports

Considering that our country is seemingly incapable or unwilling to elect prime minister or government that would tell the simple truth to populace : “All borrowed money will have to be eventually repaid back with interest” your statement rings very true ! Sadly they are all competing on who will spend more of our tax money and thus ruin the future for our children with increased taxation. The big question on my mind as of lately is : If by some miracle we elect fiscally prudent and normal government down the line(we are talking four years plus since this time it doesn’t look like it is going to happen) how long would it take for such government to bring things back to normal. Is that even possible and should we expect improvement?

#31 Flop... on 10.01.19 at 5:58 pm

Slow learners running all the countries…

M45BC

“Tory Sir Desmond Swayne blacked up as the soul singer James Brown and has since refused to apologise.

The party grandee, 63, claimed his costume was as “authentic as possible”. He said he had “no intention” of apologising, later adding the only reason he would not put on blackface again is “because you have to go to some trouble to get it off”.

Labour MP David Lammy wants him booted out of his party. He said: “For those who have been victims of racism there aren’t words for how grim it is that Tory MP Desmond Swayne refuses to apologise for blacking up.

Sir Desmond Swayne claimed his costume was as ‘authentic as possible’

“Boris Johnson, unless the Conservatives have become unapologetically racist, you will now remove the whip.” Sir Desmond, MP for New Forest West in Hampshire, at first refused to confirm it was him with wife Moira. He said: “It is definitely my wife. What does this add to what I have already said? Nothing.

“I don’t know the provenance of this photograph. It was years ago.”

The comments were made in a blog on his website in which he defended Canadian Prime Minister Justin Trudeau, who has seen his election campaign hit by revelations he too wore blackface.

The MP said: “I suspect that Justin Trudeau’s cringing apology for blacking himself ‘blinded by his own white privilege’ has done him rather more harm than the original offence.”

#32 Greg on 10.01.19 at 6:05 pm

“So keep your knees together.”

LOL, but Garth, this is a bit sexist. Let’s be more inclusive, and say, “Cover your butthole.”

#33 Dog Breath on 10.01.19 at 6:06 pm

Here’s my final post on the man made global warming hysteria. (I promise) —
Watch this brief video by Tony Heller on Zero Hedge He does an amazing job of showing how the fraud takes place in his video entitled My Gift To Climate Alarmists.

https://www.zerohedge.com/geopolitical/global-warming-fraud-exposed-pictures

#34 Sail Away on 10.01.19 at 6:09 pm

Well, let’s see how it goes. It’s interesting that there are so few rich people in Canada but not surprising when 4 of 5 funding solutions the parties mention involve taking wealth from others. Only the Cons consider actually cutting spending.

My solution as a dual citizen is to take full advantage of opportunities in each country and always be ready to move for the best deal.

Government spending is fantastic when my company is the recipient, but if tax squeezing gets unpleasant and the US is the better deal, the border is right there.

So, case in point here: an employer and significant taxpayer ready to leave the country if squeezed too hard. Would there be a benefit in keeping Canadian real estate? Not if it comes with a punitive tax.

And there’s the problem when proposing to take (steal?) assets of the wealthy as a funding strategy. They won’t complain and try to change the laws, but will quietly leave.

#35 Silent observer on 10.01.19 at 6:10 pm

Wonder how Martin Armstrong’s prediction for the bond markets will be further fuelled by the direction our illustrious leaders are taking us? At first I wasn’t buying in to it, but it’s starting to make sense.

#36 Michael King on 10.01.19 at 6:12 pm

Re: the dividend tax credit. Thank you for answering my question from yesterday.

#37 IHCTD9 on 10.01.19 at 6:13 pm

Was talking to a business owner today. Big time Lib, HATES the cons. He cracked and voted Ford in the last provincial election after Wynne’s debacle of a term. He’s doing it again this Federal election and voting Scheer, as Trudeau ended up giving him nightmares.

Sometimes, you just have to let natural forces do the teaching…

#38 Grunt on 10.01.19 at 6:16 pm

Environmental levies Garth. Not immediate. But the near future. Extra taxes on combustion sales (new and used) & parts. Extra taxes on non renewables like gas & oil. That’s how they’ll tackle the deficit. A carbon reduction crusade. Surprised your weekend lackeys haven’t seen it coming.

#39 BlogDog123 on 10.01.19 at 6:16 pm

Funny how nobody campaigns on spending cuts and outlining how to get rid of the bloat.

Those spending cuts and big ol’ piles of debt are for someone else to talk about… Don’t even bring it up. Nyah, nyah, nyah, I can’t hear you, blah, blah, blah.

Wouldn’t some balance budget amendment be just peachy?

#40 SunShowers on 10.01.19 at 6:18 pm

1) So?

2) Well, since the divide between the 1% and the 99% continues to grow, this would suggest that either the 1% aren’t paying enough, or the 99% aren’t being paid enough. From which side would you prefer to see the issue resolved? From what I’ve seen here, most would say “neither”, and that answer is not acceptable.

3) They’re already hiding hundreds of billions overseas in tax havens.

4) It’s actually consumers who create income for workers. Employers are middlemen who extract rent from workers by virtue of them already being wealthy enough to own the means of production.

5) Going to the casino is also risky, and provides jobs for many casino workers. How handsomely should we reward gamblers?

6) Lol.

7) Making our benchmark for success how much surplus value could be extracted from workers is probably why things are so bad.

#41 Amok on 10.01.19 at 6:21 pm

What exactly is so wrong about May’s plan to tax banking transactions? Why should the banks make zillions of dollars in profits on providing an essential service (meaning that it is basically impossible to not have a bank account). Why shouldn’t the government take some of that pie?
It seems like an awfully lucrative solution to servicing debt. The banks post profits in billions each year. Why do bank CEO’s deserve such insanely high payouts?

The tax is not on the banks. Pay attention. – Garth

#42 45north on 10.01.19 at 6:24 pm

But the danger in that is immense.
There aren’t enough rich people to gut. Second, they’re already paying a ton. Third, they don’t need to stay here. Fourth, they’re usually employers, not employees – creating income for others. Fifth, investing means risk, whether it’s starting or running a business or buying stock in a company that could stumble.

I know two men – pretty sure they’re in the 1%. They could leave anytime – just get on a plane. We would all be poorer.

Justin Trudeau would gut this country. He’s counter to my interests. He’s counter to the interests of my grand children too.

#43 Smartalox on 10.01.19 at 6:25 pm

Back in the days of Pierre Trudeau, I recall that Canadians used to complain about being a ‘branch plant’ economy – that Canadians would beaver away at their jobs, but the profits would flow to head offices in the USA, and be spent in communities there.

Imagine what it would be like if CEOs’ pay were ‘gutted’ by the NDP. I know that I’d live in Plattsbugh, or Blaine, or Point Roberts if it meant a few hundred Gs in my pocket. Might be a bit of a stretch for a CEO based in Toronto, but at those rates, one could afford a helicopter to hop across the lake to the island airport. Fuel up in NY: avoid the carbon taxes.

#44 The boulder on 10.01.19 at 6:27 pm

The tax only impacts middle/upper-middle class. The rich anyway have dedicated accounting professionals to save their tax.

#45 Jaxville on 10.01.19 at 6:27 pm

Perhaps someone here can help me out with this question….. If I withdraw $170,000 from my TFSA, can I replace the entire amount or only the $58,500 I have so far put in the account?
Getting mixed answers and my bank with my trading account is of no help.
I would prefer an answer from someone who has actually taken out more than their original contribution.
Thanks

Can replace it all, but in the next calendar year. – Garth

#46 Mike in Airdrie on 10.01.19 at 6:33 pm

Well that’s depressing. Thanks Garth :\

#47 Don Guillermo on 10.01.19 at 6:37 pm

Found these words sometime ago. I don’t recall where I found them so can’t give any credit. It seems like the western world is somewhere between the third and fourth line and the developing world is somewhere between the first and second line. Sad for us.

“-hard times create strong men and women
-strong men and women create good times
-good times create weak men and women
-weak men and women create hard times”

rinse and repeat!

#48 Yukon Elvis on 10.01.19 at 6:38 pm

Bury your after tax cash, gold, and diamonds in the back yard. Or:
Andorra Located in Western Europe between France and Spain in the Pyrenees Mountains. No gift, inheritance or
capital transfer tax.
The Bahamas Located off the southeast coast of Florida. No personal income tax, capitals gains tax or inheritance tax.
Belize Located in Central America on the Caribbean sea between Mexico and Guatemala. No capital gains tax.
Bermuda Located east of North Carolina in the Atlantic Ocean. No income tax, capital gains tax, capital transfer tax.
The British Virgin Islands Located 60 miles southeast of Puerto Rico in the Carribean. No capital gains tax, capital transfer tax. Famous destination among offshore companies.
The Cayman Islands Located in the western Caribbean just south of Cuba. Famous offshore banking center.
The Channel Islands Located 40 miles north of France and 110 miles south of UK in the English channel. Non-residents are not taxed on foreign income.
The Cook Islands Located between Samoa to the west and French Polynesia to the east in the south Pacific. Famous for bank confidentiality.
Hong Kong Located south of mainland China on the South China Sea. No taxes on capital tax. Other taxes are also low.
The Isle of Man Located between Ireland and England in the Irish Sea. No corporation tax, capital gains tax, inheritance tax or wealth tax.
Mauritius Located in the Indian Ocean east of Madagascar. A low tax heaven.
Liechtenstein Located in western Europe bordered by Switzerland and Austria. Famous for low taxes.
Monaco Located in western Europe on the French coast of the Mediterranean sea. No personal income tax or capital gains tax.
Panama Located between the North Pacific Ocean and the Carribean sea. No tax on foreign source income.
Switzerland Located in western Europe. Famous for offshore banking and lower taxes.
St. Kitts and Nevis Located west of Antigua in the Lesser Antilles of the Caribbean Sea. Up to a 15-year tax holiday as an investment incentive. Bank secrecy.
Perhaps create a trust for your descendants.

#49 JonBoy on 10.01.19 at 6:41 pm

Who is John Galt?

It seems like we’re approaching that point. I’m all for balance but I also know (by personal experience) the depth of commitment, the loss, the struggle and the pain and effort it takes to succeed above and beyond your fellow man.

To overtax that success, after all that hard work and sacrifice, is shortsighted. The 1% are able to move more easily, find gainful employment more easily, and also generally shelter their income better.

I’m not a 1%er. I’m more like a 5%er, but I consider myself blessed. I also live way below the level of a lot of people I know, including my direct reports in my company. Prudent thinking is going to lose me money if they start raising taxes. I may just have to get extreme on the income protection side of things. Heck – it may be the best thing that ever happened to me. I can make a bunch and pay very little and get maxed out UCCB or something. Once our latest kid arrives, maybe I’ll get enough that I can make payments on that new Acura NSX I drove this week…

#50 n1tro on 10.01.19 at 6:42 pm

So a vote for the PPC is 2 votes for the liberals. Is there any vote that would take away 2 from the Trudeau?

I got an engineer and 2 academics representing the big 3 in my riding. Engineer is representing the NDP. Sigh….

#51 acdel on 10.01.19 at 6:42 pm

In support of the blog you posted today Financial Post has a good article as well regarding what people are not paying attention to in the upcoming election.

https://business.financialpost.com/opinion/jack-mintz-none-of-our-leaders-are-talking-about-the-one-key-issue-that-affects-every-persons-wallet#comments-area

#52 Smartalox on 10.01.19 at 6:44 pm

You remember the urban legend where someone programmed a computer to round off the thousandths of cents from interest calculations, and then deposited them into their own bank account? And it quickly added up to some huge sum, because of the large volume of transactions.

Elisabeth May and the Greens’ transaction tax should be like that: We’ve already eliminated the penny, and people are used to rounding up or down to the nearest nickel, with the implicit assumption that rounding up and rounding down will ‘balance out’ over a large number of transactions.

Maybe the transaction tax should work the same way, collecting the thousandths of cents on interest transactions, and the odd cents on retail sales.

Nobody would miss them, right?

Oh wait, I think I just figured out Max Bernier’s tax policy

#53 Bytor the Snow Dog on 10.01.19 at 6:45 pm

#170 IHCTD9 on 10.01.19 at 12:18 pm
#167 Sail Away on 10.01.19 at 11:58 am
—————————————————–
Why worry about fighting Tater? There’s no man there.

#54 Re-Cowtown on 10.01.19 at 6:51 pm

The “Khmer Verts” candidates miss one key point: Cheap energy enriches lives.

Consider the following:

Right now, in Sub-Saharan Africa, a woman named Abena spends all day, everyday, trekking miles to find and haul firewood to cook her family’s meals. Abena spends her days scouring the dry harsh lands to find and bring home 20 lbs of firewood.

The amount of energy contained in 20 lbs of firewood is about 120,000 BTU, which sounds like a lot but is actually the same amount of energy contained in four liters of gasoline. At $1.00 a liter, Abena’s entire day’s back-breaking labour has purchased $4.00 of energy.

To Abena, this life-cost of clawing for energy is astronomical. Converting her efforts to our standards, it would be like us spending $3000 to fill up the family car.

So further consider this: If Abena could be like us and spend 10 minutes of her day gathering enough daily energy to sustain her family instead of 10 hours, how much more enriched would her life be? And how much more could she enrich the lives of those around her? With 9 hours and 50 minutes of free time, Abena could find the time to become a world class cardio-thorassic surgeon.

But instead, Abena gathers wood.

Abena’s energy impoverished lifestyle is harsh, plodding and will likely be very short. But, as the “Khmer Verts” remind us, it will also be green, sustainable, eco-friendly and virtuous.

And leader of the “Khmer Verts” Elizabeth May wants your vote so that you, too, can enjoy a lifestyle just as virtuous as Abena’s.

#55 Sue on 10.01.19 at 6:51 pm

Ndp just knocked on my door and left a pamphlet. Thought it was best not to answer…..
Hoping for a large silent majority out there with some common sense. Worried

#56 devil on 10.01.19 at 6:54 pm

“income should be taxed like the schmucks on the factory floor – even when they own the factory”

Shouldn’t they be taxed even more than the factory worker? Afterall, they aren’t even really working for it.

Never run a business, have you? – Garth

#57 slam on 10.01.19 at 6:56 pm

#1 crowdedelevatorfartz
“Geez, by the time I reach the 1% tax bracket it will almost be time to retire…..
:)”

Don’t worry, the gov will tax you so much that you’re not able to reach the 1% :)

#58 Lee on 10.01.19 at 7:07 pm

I’m embarassed that JT has now been seen in photos that appear to be from more than three occasions doing his act such that “skin darkening makeup face” was basically his schtick during his twenties and people are still seriously considering voting for him. I hear Uraguay is nice.

#59 Sold Out on 10.01.19 at 7:07 pm

I could have saved myself some typing and just read the umlaut guy’s/gal’s link first. No party or candidate will ever promise any measures that will address the asset bubble; it would be tantamount to political suicide. Blaming individuals for the same sins committed by corps and govs is a little too close to victim blaming, but that’s the Conservative way, I guess.

#60 Re-Cowtown on 10.01.19 at 7:12 pm

#56 devil on 10.01.19 at 6:54 pm
“income should be taxed like the schmucks on the factory floor – even when they own the factory”

Shouldn’t they be taxed even more than the factory worker? Afterall, they aren’t even really working for it.

Never run a business, have you? – Garth

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

What’s the difference between a small business owner and a government employee?

One of them shoulders the risk of going home at the end of the day with less money than they started with.

The other one gets a pension for life that the small business owner has to pay for or go to jail.

#61 Ace Goodheart on 10.01.19 at 7:15 pm

Yeah I can just see Bill Morneau instituting a wealth tax. He’s one of the richest men in Canada. He’s married to Nancy McCain for cripes sake.

And Trudeau with his 30 million dollar trust fund..

Yeah right.

Not happening Garth. Sorry

#62 Mean Gene on 10.01.19 at 7:21 pm

How easy would it be to bankrupt Canada, all this government debt, deficits and spending is BaNaNaS.

#63 Sail Away on 10.01.19 at 7:30 pm

#54 Re-Cowtown on 10.01.19 at 6:51 pm

Consider the following:

Right now, in Sub-Saharan Africa, a woman named Abena spends all day, everyday, trekking miles to find and haul firewood to cook her family’s meals. Abena spends her days scouring the dry harsh lands to find and bring home 20 lbs of firewood.

———————————————

Abena sounds content. She has a fulfilling daily project with rewarding results. We should all be so lucky.

Ants R us

#64 GBiddy on 10.01.19 at 7:30 pm

On Mad Max and McCarthyism

On Mad Max: anyone displeased with the current crop of parties and their lying platforms should give Max a hearty thank-you. Unlike the rest of us, he’s taking action for his vision of a better Canada (and turned down a six figure salary to do so). Principled. We the people do next to nothing.

He started a political party that will likely outlive him, and possibly a couple of the established parties as well. Remarkable. I’m not saying vote PPC, I’m saying read their platform. Bernier speaks in truths, and I’ve never seen another politician like him in this country. Despite a near MSM blackout, that will resonate with people–watch.

On McCarthyism: remember those crazy times when the FBI and CIA hunted down commies that had infiltrated schools, universities, gov’t institutions, the military and the like? Infiltration is in accordance with core principles of Marxist strategy. Today, we laugh and cry out, “How ridiculous, how quaint!”

Indeed. Imagine if most public institutions had been infiltrated by neo-Marxists. Imagine public elementary schools indoctrinating children with Marxist ideology. Imagine provincial governments and public service unions doing the same.

If you can’t see this, you’re truly blind because it’s happened, it’s happening. Look back and scoff at McCarthyism all you want, but a softer version of those days may be returning because only one side in that struggle let down their guard.

When you see Marxist sentiment being expressed on a financial/real estate blog like this, by people who probably don’t even realize that they’ve been indoctrinated, you get a sense of how far gone Canada is.

To see where Canada will be five years in the future, you need only ever look at America five years in the past.

#65 Sail Away on 10.01.19 at 7:42 pm

#53 Bytor the Snow Dog on 10.01.19 at 6:45 pm
#170 IHCTD9 on 10.01.19 at 12:18 pm
#167 Sail Away on 10.01.19 at 11:58 am
—————————————————–
Why worry about fighting Tater? There’s no man there.

———————————–

Regardless of gender, it’s angry. Probably also delicious when properly prepared.

#66 ImGonnaBeSick on 10.01.19 at 7:42 pm

“Seven, it’s all about ambition, enterprise and drive. Society should be encouraging and rewarding those silly enough to employ others, not whacking them once they succeed.”

Thanks Mr. T, I couldn’t agree more. We are truly living in the upside down.

#67 Debt alarm on 10.01.19 at 7:43 pm

From today’s post
Add to this record household debt of over $2.3 trillion, billions in HELOCs not being paid off and average incomes which are barely crawling.

This cannot end well, when people can longer pay off the debt then???? It cannot go on forever.

Everything is connected, people cannot pay off debt, people stop buying things, factories close. Jobs are lost then the cycle repeats till a Great Depression.
So your investment strategy of balanced portfolio does not work as stock prices will tank and bond markets will tank. There’s no money everyone has debt that is created from nothing.
I am not saying buy gold, but the riches people in the 1930s had cash and lots of it.
Just wondering how this will all end.
No wonder Canadians no longer care about debt, let the government borrow and give us everything we want.

So what is the best investment for the up coming super debt cycle ending?

It’s not ending. Stay invested. – Garth

#68 Spectacle on 10.01.19 at 7:43 pm

#3 SoggyShorts on 10.01.19 at 4:42 pm
#151 Penny Henny on 10.01.19 at 10:25 am
#113 SoggyShorts on 09.30.19 at 11:38 pm
#92 #82 Three hurrays for taxing bubble gains on 09.30.19 at 9:05 pm.

I always hear that the reward for taking a higher risk is a greater rate of return. For example…..
If so then why should I be taxed a lower rate on my higher returns? Is this a Double reward?

Please try to answer these questions without name calling. Thanks
********************************
In short: yes.
The single reward of a chance at higher gains for more risk doesn’t cut it. A little tax break adds more incentive. (how much is needed is debatable) The fact is that taxing something discourages people from doing it. So if (for example) you taxed cap gains on stock investments money would flow into other investments like dividend darlings, housing, or offshore options. The end result is that if you tax one thing too much you don’t actually increase tax revenues.
—————————————————————
#151 Penny Henny on 10.01.19 at 10:25 am
#113 SoggyShorts on 09.30.19 at 11:38 pm
#92 #82 Three hurrays for taxing bubble gains on…..

The buying and selling of company shares is the passing on of the risk and gains. Buying and hmolding until you die is pretty useless- at some point, you want to spend your money, so you cash out and someone else assumes the risk.

As others pointed out, further investment in an established company gives them capital for expansion.

———————
Hi Soggy and all the others.

Any online resources to prepare for the coming political/financial/tax uncertainty in Canada.

Idea is to build a Canadian Service Co. ( with some US market location/penetration ( pardon the joke) , then sell it witH an equity stake. How the heck does one not give it all to the government ?

Might have to call You directly Garth & the Boys!

#69 Simon on 10.01.19 at 7:49 pm

3 Buddy on 10.01.19 at 5:21 pm
There’s a party that is listening. The PPC.

Did Preston Manning teach you nothing? – Garth
++++++++++++++++++++++

Ah, yes – The Canadian Reform Alliance Party (C.R.A.P.)

#70 jess on 10.01.19 at 7:50 pm

https://www.sec.gov/news/press-release/2019-199

Two BMO Advisory Firms Pay Over $37 Million to Harmed Clients for Failing to Disclose Conflicts of Interest

FOR IMMEDIATE RELEASE
2019-199

Washington D.C., Sept. 27, 2019 —

The Securities and Exchange Commission today announced that two BMO advisers have agreed to pay over $37 million to settle charges regarding their failure to tell clients about certain aspects of how the advisers selected investments in their retail investment advisory program, known as the Managed Asset Allocation Program (MAAP), which included the selection of more expensive investments from which BMO advisers profited.

According to the SEC’s order, when selecting investments for clients, BMO Harris Financial Advisors Inc. (BMO Harris) and BMO Asset Management Corp. (BMO Asset Mgmt) preferred mutual funds managed by BMO Asset Mgmt (proprietary funds) and invested approximately 50% of MAAP client assets in proprietary funds. This practice resulted in payment of additional management fees to BMO Asset Mgmt, however, the SEC’s order found that neither BMO adviser disclosed this practice or the associated conflict of interest to clients. Moreover, the SEC’s order found that, when considering mutual funds for MAAP, BMO Asset Mgmt evaluated the lower-cost institutional share class for both proprietary and non-proprietary funds, but the higher-cost, non-institutional share class for proprietary mutual funds always was selected for MAAP.

In addition, the SEC found that BMO Harris failed to disclose its conflicts of interest arising from investing MAAP client assets in higher-cost share classes of certain mutual funds, including funds managed by BMO Asset Mgmt, when lower-cost share classes were available. By selecting the higher-cost share classes, BMO Harris received revenue sharing payments and avoided paying certain transaction costs, while clients received lower returns on these investments.

#71 Robert Sagal on 10.01.19 at 8:02 pm

Wow Garth…it almost sounds like everything you are talking about lines up with the PPC platform. Is there a reason why you didn’t mention them from your post?

The PPC is the ONLY party that values individual freedom and personal responsibility – 2 values that I think you are trying to convey. You are a smart man, I just wish you didn’t fear the media and the establishment folks who keep trying to label the PPC something that they aren’t.

Irrelevant? – Garth

#72 Nonplused on 10.01.19 at 8:07 pm

Wealth taxes are messy because you never know what something is worth until you sell it. So with a wealth tax RevCan will have to be in the business of marking everyone to market every year, and not just the 1% but the 10% just in case somebody snuck into the top 1% but didn’t declare it. And then to pay the tax the wealthy will likely have to sell assets to raise cash. Who will they sell too? What if their assets are not easily divisible? How can they sell for example 2% of a yacht or jet? Or a private business? Or what about a farm? Does the farmer have to go and take out a loan to pay the tax? Farms can be quite valuable without necessarily producing a lot of free cash flow. And that cash flow is already taxed.

And anyway we already have a “wealth tax”, it’s called capital gains taxes. But with the capital gains taxes the government has to wait until the asset is sold and therefore has price discovery before they can assess their share.

The problem with wealth is that until something is sold nobody really knows what it is worth, or how to monetized it. For example if you have shares in Tesla or WeWork (or Bre-X or Nortel in the past) right now the government might decide you are pretty wealthy and impose a tax. But what about next year when those shares fall to zero? What do you owe then? What about the money you paid last year on shares that are worth zero this year?

Capital gains taxes are the proper way to handle “taxing wealth” and they already exist. Over the long run everyone dies and the bill gets paid, so introducing a wealth tax is just going to make everything more complicated and produce exactly zero extra revenue. It is pure political window dressing. Pandering of the worst sort.

If the concern is that the 1% really isn’t paying enough already, the easiest way to address that is to increase marginal tax rates or the capital gains inclusion. “Wealth taxes” and “luxury taxes” are just plain and simple politicking. They don’t do anything that can’t already be done with the existing structure, they are complicated, and they won’t raise even one extra dollar of revenue over the long run. There are only so many dollars out there, so what you take in one tax disappears from another. It’s just a huge shell game.

————–

Even the idea of taxing financial transactions is pure pandering of the worst sort of politics. People who have gains in the financial markets already have to claim them and pay taxes. Now they are just going to declare less income from the transactions. See? It’s a shell game. All they managed to do is move money from capital gains to financial transactions. No new money suddenly appeared.

And don’t forget who makes most of the financial transactions (excluding the robot traders); the ETF’s in your RRSP or pension fund. So all a tax on financial transactions is going to do is take money out of your RRSP now that you would have paid later when you withdrew. So short-sighted. So corrupt.

Plus these financial transaction taxes are going to introduce a lot of “stickiness” in the markets for various people including traders and financial planners. For example, Garth currently reviews his clients portfolios once or twice a year and re-balances them (or I assume he does). This already has significant fees associated with it (brokerage, mostly, upon which the broker is already taxed). What happens if there is now a transaction tax??? It means now folks like Garth have to go through the laborious analysis of whether the portfolio is actually any better off after the government skims the transactions.

All that will happen if the government introduces a transaction tax is that people will trade less, possibly lots less, then the brokers will make less money, and then the brokers will pay less tax. See? Again all they did was a shell game.

—————–

Folks, government seems to be an unavoidable evil, like acne, the flu, kidney failure, tattoos, pink hair, and man-buns. But I suppose where we can’t do without it we have to fund it. But there is only one ratio that matters, and that is the total tax take divided by the GDP. It matters not what they call the tax, or how many of them they multiply. There is only one tax rate, and we all pay it the same. For the 7-11 operator, it looks like a big bill, but he just increases the price of a Slurpee, so you don’t see it, but you still pay it.

The only purpose of a graduated tax system is to reduce the number of people RevCan has to bother auditing. We all pay the same rate.

There are only so many dollars out there. Only the BoC can make more. So when the government introduces a new tax or increases an old one, all they are doing is trying to hoover more of the existing dollars. That means those dollars have to come from somewhere else. In the end, it is your pocket, not some ephemeral “rich” people. The rich only have the money for a short time, and they have to get it from selling stuff to you at higher prices.

#73 TurnerNation on 10.01.19 at 8:20 pm

The fix is in. TurnerNation here tellin’ it as it is.
Not looking to inform, scorn or warn.

We must follow the yellow tractor guy’s burly lead, vote T2 and get this post-national state over with.
Cradle to grave welfare and drugs, how to control the sheeple.

Talking some humans this week different areas of the city Tdot. Their kids pick up drug paraphanallia in the parks, their cars broken into while secured in underground parking lots; drugs openly dealt up top.
All on video. The police will do nothing. Their always are too busy or morale is low.
The drug gangs run this town.

A former PM, Premier and several former police chiefs sit on board of Weed companies. Show us the way.
Next up for TO, SF. Bet they decriminalize theft under 800 for ‘vunerable marginalized” people.
This is the new world order folks, wake up to it.
The individual has all the rights; society has none.

#74 Doug in London on 10.01.19 at 8:23 pm

The role of government has morphed into covering over people’s personal financial failures.
———————————————————————————-
Yes indeed! Well said, and consistent with my observations.

#75 King Richard on 10.01.19 at 8:33 pm

In my day it was simple. Whenever I needed money, I just sent the Sheriffs out to collect half of my peasants gold and silver. As simple as it seems, it would result in the same thing as this complicated stuff you are trying to do. “Modern civilization” my arse. Your 50% tax bracket is no different than what I did.

I never did implement a property tax though. Why would I? I owned the land, and I needed my peasants to work it. So I just took half of the proceeds. I used it to build roads and an army. I certainly wasn’t going to use it for welfare because that would be a peasant on my land who wasn’t working. “If you don’t want to work, get off my land” was my motto.

Simple, effective, just. All your so called PhD’s have done is make what I did so much more complicated. Ya, sure, I had to torture a few people to death to keep the order and maintain control, but I think my system was more humane than yours. Nobody stayed in my dungeons for 25 years to life. And conditions inside the dungeons weren’t much different than outside, unless of course you were on the rack or otherwise targeted for special treatment. But I gave my victims peace quickly, after making a point to discourage others from attempting to abuse my hospitality.

You folks think you are so much more advanced, but you try running a country with swords and horses, and a population that is completely uneducated. I did ok.

#76 akashic record on 10.01.19 at 8:43 pm

Irrelevant? – Garth

Then enjoy what you think and legitimize as “relevant”.

Not my opinion. Fact. Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth

#77 marcus on 10.01.19 at 8:43 pm

Yes Canada …… you are truly screwed. I saw the writing on the wall many many moons ago and decided to strategically relocate. Butt in the sand …… beer n the hand ….. oh what a land! Best of luck Canucks!

#78 marcus on 10.01.19 at 8:47 pm

#62 Mean Gene on 10.01.19 at 7:21 pm

How easy would it be to bankrupt Canada, all this government debt, deficits and spending is BaNaNaS.

Canada IS bankrupt. So are many countries in Europe. This is how the controllers want it. Since Canada is a test bowl for Globalism and has a pliable population you can expect more “rear entry” without lube. Enjoy!

#79 Tannhäuser Gatekeeper on 10.01.19 at 8:51 pm

“There are fewer than 300,000 Canadians with net worth between one and five million.”

This is an implausibly low number.

Capgemini thought there were 362,000 Canadians with investable assets (excluding the house, the Rolls, the art and the wine collection) of US$1mm or more — a higher threshold — in 2018.
https://worldwealthreport.com/reports/population/north-america/canada/
And frankly, the only people who exclude home equity in net worth are asset managers.

“Only a few thousand families exceed [CAD$5mm]”

Again, Knight Frank thinks 4,785 Canadians have a net worth of over US$30mm.
https://content.knightfrank.com/resources/knightfrank.com/wealthreport/2019/the-wealth-report-2019.pdf

An earlier wealth report states that The Poor Will Always be With Us.

#80 Smoking Man on 10.01.19 at 9:01 pm

There aren’t enough rich people to gut. Second, they’re already paying a ton. Third, they don’t need to stay here. Fourth, they’re usually employers, not employees – creating income for others. Fifth, investing means risk, whether it’s starting or running a business or buying stock in a company that could stumble. Showing up for a paycheque, selling your time, is inherently safer than being an entrepreneur. Sixth, most employees have pension plans, whether a gold-plated DB or a group RRSP. Most self-employed have none. Seven, it’s all about ambition, enterprise and drive. Society should be encouraging and rewarding those silly enough to employ others, not whacking them once they succeed.-garth
……..

So True
The teachers, the lefties, socialist don’t understand the above quote. They stupidly think the risk taker will hung around only to be stomped on.

I left, and many Canadian business are doing the same.

Canada is screwed, no matter the outcome of the election people with money are going to run away…

#81 Gen X-Lax on 10.01.19 at 9:02 pm

Broke, indebted Gen-Xers. Don’t matter because, like the Mils, in 15-20 years’ time they can unload their Canadian real estate for ten to twenty times what they paid for it. Retirement “problem” solved.
By the way, more Gen-Xers need to play the mediator in this senseless war of words between the Mils and Boomers. Mils can’t help that they were raised by teams of heartless, leftist social engineers. Or that they were force-fed the worst pop music EVER.

#82 North Korea on 10.01.19 at 9:06 pm

What will the markets do tomorrow? North Korea just fired two missiles at Japan. One landed in Japan’s EEZ.

#83 A Dollar is a Dollar is a Dollar on 10.01.19 at 9:07 pm

Simple solution.

Move to a flat tax rate on all transactions, all income from every source. No special treatment for stock options, capital gains or house profit.

All dollars treated as equal = All problems solved.

So obvious.

#84 BlogDog on 10.01.19 at 9:07 pm

I’m a young (soon-to-be) university graduate with a STEM degree and I cannot wait to leave this country behind…

Every single day there’s far-left political events. You can’t escape the nonsense. Maybe it’s just the campuses but if this spreads further it’s all over.

#85 Shawn Allen on 10.01.19 at 9:11 pm

But’s Okay to Brag about Living Off of low-taxed Dividends?

#18 JSS on 10.01.19 at 5:33 pm
Apparently, it is acceptable to brag about your $1M house to guests at a party.
But unacceptable to “counter” brag that your $450,000 house is paid off.

we left the party early.

***************************************
What? Did you at least get to brag about all those dividends and dividend increases you have been rubbing your tummy over on this blog for what the last eight years?

Remember, most people will try to pull you down to their (typically low) level. If possible, party with the most successful people you can find. They will tend to help you rise up.

Party at Garth’s?

#86 Shawn Allen on 10.01.19 at 9:16 pm

Escape Canada?

#84 BlogDog on 10.01.19 at 9:07 pm

I’m a young (soon-to-be) university graduate with a STEM degree and I cannot wait to leave this country behind…

******************************
Okay but where will you go? You have no unconditional right to enter, much less work in, any country other than Canada.

If you get permission to work in the U.S. or probably any other country, you can be kicked out at anytime. Am I wrong?

If you break certain laws in many countries, expulsion will be automatic.

#87 PastThePeak on 10.01.19 at 9:19 pm

I said it two years ago when I first started reading the blog, and I will say it again. Those that think what happened in Venezuela can never happen here are delusional.

All it takes is an NDP/Green coalition to form power and – boom – the slide is irreversible. The NDP have stated more than once over the last two decades the desire to nationalize the banks, and neither party would hesitate to do so to the resource industries. They could frame it is “milk the oil cow and give back to the people while we ‘phase it out'”. The BoC would start printing money by the trillions to pay for free everything.

Based on the MSM and the bilge section here, it would be done to mostly thunderous applause.

Economy would crater faster than you could blink, more nationalization, and hyper inflation would take hold. Takes less than a decade, as everyone has learned from Venezuela and know how to wreck it faster…

#88 IHCTD9 on 10.01.19 at 9:20 pm

#40 SunShowers on 10.01.19 at 6:18 pm

——-
1) So?

Ah, well you see, if the plan is to extract the required revenues from the rich, and there is not enough of ‘em to soak, then the plan won’t work eh?

2) Well, since the divide between the 1% and the 99% continues to grow, this would suggest that either the 1% aren’t paying enough, or the 99% aren’t being paid enough…

The assertion that the wealth gap exists in part due to a taxation problem is obviously false. This pretense is ideological, which means you will be unable to muster a workable solution until you start being intellectually honest.

3) They’re already hiding hundreds of billions overseas in tax havens.

All guilty, got it.

4) It’s actually consumers who create income for workers. Employers are middlemen who extract rent from workers by virtue of them already being wealthy enough to own the means of production.

Consumers receive the means of consumption via a money tree in the back yard. Gotcha.

Consumers are not workers, cool.

5) Going to the casino is also risky, and provides jobs for many casino workers. How handsomely should we reward gamblers?

Really basic logic errors here. If the Casino patrons are due a reward for undertaking the risk of gambling, then you are aligning them with the risk taking entrepreneurs. The jobs created by successful entrepreneurship would then be similarly required of the Casino patrons, according to your logic. Obviously, Casino patrons do not hire any Casino employees. Casino goers are not due a reward for consumption of (risky) products and services, which is what they are actually doing.

6) Lol.

You think it’s funny that essentially zero self employed folks have pensions? Nice.

7) Making our benchmark for success how much surplus value could be extracted from workers is probably why things are so bad.

More failure to acknowledge and accept the real world. In the real world, if I put an ad in the paper for 1000 jobs paying 2.00/hr, I would get zero responses, right?

Right.

Pretty hard to extract a surplus from workers when your factory is empty no?

Workers freely apply, and freely leave their positions. Choice is 100% in their hands. They go where the money is. No money, no employees.

#89 Linda on 10.01.19 at 9:21 pm

The point Garth makes – that there are simply not ‘enough’ wealthy people to pay for all – is valid. I did a Google search on the wealthy & totted up the amounts they are alleged to possess. Always presuming that the billions mentioned would actually materialize after the assets were sold, the grand total would pay off the provincial debt of Ontario & most of the provincial debt of B.C. (also supposing those sums were at all accurate). Note, that was presuming the sums listed beside each wealthy individual were accurate & would materialize upon sale of ALL assets. In effect, the top tier would be completely stripped of all assets & would be effectively homeless individuals who could apply for state benefits. This transfer of wealth would not be enough to pay the debts remaining for B.C. or any of the other provinces or territories. Federal & municipal debts would be completely untouched. Nor would this in any way show the impact on the 99% who presumably work at the businesses owned & operated by the wealthiest. One could likely count on considerable disruption to the income of those so employed during the wealth redistribution.

Weirdly enough, those in favor of wealth redistribution fail to realize that once the wealth is in their hands, they become ‘the wealthy’ & the target has now been fixed to their backs. Because once that door is opened it will be rinse & repeat until there is nothing left to loot.

#90 Paul on 10.01.19 at 9:25 pm

#83 A Dollar is a Dollar is a Dollar on 10.01.19 at 9:07 pm
Simple solution.

Move to a flat tax rate on all transactions, all income from every source. No special treatment for stock options, capital gains or house profit.

All dollars treated as equal = All problems solved.

So obvious.
————————————————————————————————
Well one thing is obvious, you don’t know if it’s punched or bored. Lol

#91 conan on 10.01.19 at 9:37 pm

Every single day there’s far-left political events.- blogdog

Care to give some examples?

Maybe you wear a MAGA hat and everything progressive to you is far-left.

#92 Canuck on 10.01.19 at 9:43 pm

Not my opinion. Fact. Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth
_____________________________________________

You’ve just described the Green Party but you have no problem talking about her crazy ideas. 2 seats in 20 years?? At least the PPC, what you call a fringe party has candidates in almost every riding in the country. The NDP and Greens can’t say the same yet they have credibility? Please…

Maybe, just maybe people are starting to learn and are fed up with the same old crap time and time again which by the way, is why Trump got elected.

Not a chance. – Garth

#93 Popeye The Sailor Man on 10.01.19 at 9:47 pm

“There are fewer than 300,000 Canadians with net worth between one and five million”

Is that per person or for a couple/ family?

#94 Facebook rules on 10.01.19 at 9:49 pm

We’ve seen it in November 2016, from now on the results of the elections will depend on what Facebook targeted brainwashing propaganda the clueless mass will get on their smartphones.

#95 PastThePeak on 10.01.19 at 9:55 pm

#25 Loonie Doctor on 10.01.19 at 5:40 pm
One good thing about being a high-income professional is that we can adapt. Watching how this train is moving, my wife and I are planning to adapt by downsizing and I will go down to part-time work. Spending less and producing less is probably not great for the country, but we aren’t going to be martyrs.

We’ll enjoy life and not strive to be the tall blades of grass. You’ll only get mowed to fertilize the other grass while the ones pushing the mower (those with large family fortunes like T2 and Mourneau) are unscathed and get to play on the lawn.

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

I am 100% with your thinkin’ Doc! Not everyone can do it easily – my engineering profession is mostly 5 days per week except when you get near the end and can afford the risk of trying to go to 4 or 3 (there is also contracting, but can be very stressful in its own right, and my wife does it anyways).

But my plan is in motion, building a side business (and enjoying those tax deductions), and certainly should be semi-retired by 55. It means working longer overall, but at something you really enjoy, and with much more freedom.

Why bust a butt and pay almost 40% income tax (not marginal… average), and collectively be the enemy of the state for it. Don’t build the nest egg too high and be a target.

Use your savings to purchase the most important thing – time. And enjoy denying punitive taxes to the leftards. My son is starting uni soon and I have already helped guide him to a career that affords mobility.

I really don’t care who wins this election – my plan is the same regardless.

#96 Gulf Breeze on 10.01.19 at 9:58 pm

Some people would rather be the wealthiest in the world than have an actual world to be wealthy in. Bizarre.

We all have to do our best to turn this thing around — even those who can afford to be invested.

#97 Dr V on 10.01.19 at 10:00 pm

21 lurker – $140k in tax? Top marginal starts at $205k so I get that as about $231k/yr each with max RRSP of $26k apiece. You are both 1%ers. About $270k left over. Not a bad problem to have.

#98 Moh on 10.01.19 at 10:01 pm

Garth dont scare me about the eroding dividends to collect more taxes. If that happens some of us will cry!

#99 DON on 10.01.19 at 10:03 pm

#41 Amok on 10.01.19 at 6:21 pm

“The tax is not on the banks. Pay attention. – Garth”
*******************
The public not paying attention is one of the root causes.

The *post Garth* Politicos act like children with no consequences. The nation is indebted, more debt than ever and recency thinking is beating out logic and not so common sense.

I hear Canadian growth just stalled after 4 months of surprising growth…but yet not sustainable.

The World was slowing down prior to Trump’s trade boxing match. Now it is slowing again.

No doom and gloom just reality after a long ride up on the roller coaster. One article out today or yesterday making reference to the trade wars that preceded the 1930’s. Not stating that it is correct, but makes you think twice doesn’t it?

#100 BlogDog on 10.01.19 at 10:06 pm

#86 Shawn Allen
Your assumptions are wrong. I’m a dually.

#91 conan
Last friday there was a walkout for climate change.
The day before that the Canadian Communist Party had a tent set up in front of the library.
Every single flyer board is filled with something about transgenderism, LGBTQ+ events, decolonialism, and Marxism.

#101 MF on 10.01.19 at 10:30 pm

77 marcus on 10.01.19 at 8:43 pm

-Yeah nobody cares.

7 PastThePeak on 10.01.19 at 9:19 pm

-Except everyone has the same problems.

80 Smoking Man on 10.01.19 at 9:01 pm

-21 trillion reasons why that’s incorrect. Oh yeah soon to be 22.

60 Re-Cowtown on 10.01.19 at 7:12

-Big risk big reward. Isn’t that what capitalism is? Or, are you just scapegoating “government workers” for your own failures?

That’s it for today. This place is a joke. Maybe it’s a full moon outside. Trolls everywhere.

MF

#102 DON on 10.01.19 at 10:34 pm

#81 Gen X-Lax on 10.01.19 at 9:02 pm

Broke, indebted Gen-Xers. Don’t matter because, like the Mils, in 15-20 years’ time they can unload their Canadian real estate for ten to twenty times what they paid for it. Retirement “problem” solved

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

Who’s gonna buy those houses in your scenario>>>? multi-millionaires? Or will they be too expensive for them also?

#103 leebow on 10.01.19 at 10:43 pm

The zero-sum thinking is really frustrating. I hope Karl Marx is burning in hell for the idiotic surplus value theory.

The reality is that almost without exception, especially in capitalist countries, we live better than any of our ancestors. Abundant food, entertainment, life expectancy, healthcare, housing are so much better. Risk of violent death is close to 0. The opportunity to innovate with access to knowledge, modern design and prototyping tools, communications, financial system are unprecedented. Who cares about the relative size of the economic pie portion if it gets so much bigger in absolute terms?

#104 Ace Goodheart on 10.01.19 at 10:47 pm

Dizzie Lizzie, Mad Max and Jagmeet all have one thing in common: They will never be Prime Minister of Canada.

Trudeau is an old boy through and through. He is also a very good actor. Expect him and his old boys club to tax the usual suspects if re-elected: small businesses, the self employed, and high income earning salaried persons.

Scheer is an ideological conservative. He is actually less conservative than Trudeau, at his core, but outwardly, he is all about the usual conservative values. Expect him to start by lowering taxes, but then commit to lots of spending, which requires taxes to be basically held in the same place. He will also cut things that don’t fit with the classic small “c” conservative mould, such as international aid projects, and “green” initiatives.

The rest of them, yeah, if they ever got in, it would be a disaster. The biggest fear anyone with money has (and this includes Trudeau, Morneau and the rest of them) is that a grass roots socialist gets into power. One of the salt of the earth types, no traceable family history, grew up on the mean streets, learned socialism at the barrel of a gun.

These people are truly dangerous to the wealthy. Think Fidel Castro. Che Guevera. When they take power, it is all about confiscation.

We don’t have anyone like that in Canada, who has even the remotest chance of ever becoming Prime Minister.

#105 Tannhäuser Gatekeeper on 10.01.19 at 10:58 pm

“The problem today is not that a few people don’t pay enough. It’s that most people spend too much, save too little and expect a lot. And they all get a vote.”

Bring it on, I say. Those people are paying my dividends. There’s a technical term for when the population as a whole saves more and spends less. It’s called a recession. Which is also what we’d get if the government spent less and saved more (i.e. balanced its budget).

I’ve got faith that when the incoming government gives out cash and tax breaks, most of the recipients will just turn right around and spent the money on something, which will keep the economy humming. Are a lot of Gen X and old people with pricey houses and little other savings eventually going to have to sell, or get a reverse mortgage? Probably, and that’s fine by me.

Think about the numbers in the BDO survey. 53% of people have no savings and live paycheque to paycheque? But we’ve a homeownership rate of about 67% — meaning some of those supposedly broke-ass people either own a paid off house or are paying down their mortgage every month, likely by $1,000 or more.

My family’s done just great under Trudeau’s first term, and will do just fine under a second, or under Scheer’s first — and those are the only possibilities I need to consider. I expect Garth and many blog readers can say the same. Honestly, who cares what policies, serious or foolish, are in the platforms of the fringe parties? To riff on something Garth often says, if you’re worried about who’s going to win the election, you’ve failed financially.

#106 Tony on 10.01.19 at 11:15 pm

Re: #45 Jaxville on 10.01.19 at 6:27 pm

I’m not exactly sure of the tax implications but even if you put it all in the next calendar year if you don’t wait until it shows up online as eligible money to put back in your TFSA you run the risk of a huge penalty from Revenue Canada. I always wait but have never put the money back in at the start of January next year to find out if you get hit with a huge penalty or not. Anyone put money back in at the start of January only to get hit with a large penalty from Revenue Canada?

#107 Tony on 10.01.19 at 11:21 pm

Re: #93 Popeye The Sailor Man on 10.01.19 at 9:47 pm

I think it means single or single after a divorce.

#108 The dude on 10.01.19 at 11:35 pm

The 300,000 people with net worth between 1 and 5 million, does that also exclude homes?

#109 The dude on 10.01.19 at 11:36 pm

The 300,000 people with net worth between 1 and 5 million, does that also exclude homes?

#110 slick on 10.01.19 at 11:39 pm

“income should be taxed like the schmucks on the factory floor – even when they own the factory”

Shouldn’t they be taxed even more than the factory worker? Afterall, they aren’t even really working for it.

Never run a business, have you? – Garth
————————
when i first took over the family farm, I went to the junkyard with my father to sell some scrap steel.
The fella working there was filthy, and i commented to my Dad that i was glad I didn’t work there. He retorted; At 5 o’clock he picks up his lunchbox and goes home. you still have 50 cows to milk, and a gutter cleaner to fix.

#111 Bottoms_Up on 10.01.19 at 11:45 pm

Corporations shouldn’t be in bed with the government.

Canadians are broke because we’ve allowed corporations to set the price. And wages.

Only in the past few years are we starting to see a push-back against this. New cell phone regulations and airline regulations. Made to protect us. Reducing the price of tv and internet. Opening up competition.

#112 Al on 10.01.19 at 11:47 pm

“Fourth, they’re usually employers, not employees – creating income for others.”

It obviously goes both ways, but not so obvious to the you know who’s…

The reason they became a 0.01% in the first place is the same reason a bigger haircut won’t disuade their benevolent drive and ambition to get more of whatever it is theyre seeking.. Also, if a CEO quits or cuts back there will be a line of equally effective people more than happy to take their place and the tax…

#113 Nonplused on 10.01.19 at 11:52 pm

#83 A Dollar is a Dollar is a Dollar

Except there is a flaw in your thinking. A dollar is not a dollar is a dollar.

Income is current and reflects your actual earnings today. Capital gains for the most part reflects inflation of things that you already paid for years ago with dollars you already paid taxes on years ago. That is why they are treated differently. If you want your handle right, change it to “a house is a house is a house”. Nobody actually makes money on the house they live in. All they maybe do is see an inflation adjustment, and get the inflation adjusted dollars they paid for it in the first place back out.

#89 Linda

I think your point is correct, but I would add to it. Much of the wealth we all enjoy at least in a capitalist system requires that someone can come up with enough money to build the factories or sow and harvest the seeds. Sure, the wealthy tend to own those assets. But they do not gain any real advantage from owning those assets other than the revenue they produce, which is already taxed.

Taxing wealth is much like eating your seed. Every year there will be less to plant, until one year will arrive in which there is nothing left to plant at all.

Now, we can have a grand conversation about why wealth tends to get so concentrated. I am not sure I understand why. But then we should also observe it is often on the back of grand innovation. Bill Gates is one of (or the) richest men in the world. But he also changed all of our lives. For the better, I assume you think if you use Microsoft products. But lost in the optics of the far-left is how many other people got wealthy by being a shareholder or employee of Microsoft, or by selling or maintaining their products. I am going to hazard a guess that Microsoft had a total economic impact at least 1000 times what Bill Gates got to keep, and he paid taxes on all of it. And now he gives a bunch of it to charity and is trying to solve global warming by investing in technological startups. Not something you can do if you don’t have any money. And when he dies, what he hasn’t given to charity will be taxed yet again.

The rich are only our enemies if they got rich through corruption. So, most gang member and politicians.

#114 Ray on 10.02.19 at 12:13 am

My wife & I went to see the play “Come from Away” in Toronto this weekend. It is based on the true story on how a small village of Gander NL, population of around 7,000, absorbed around 7,000 passengers and crews from the 40 (ish) airliners that were emergency landed at Gander during the 9/11 tragedy. The people of Gander never missed a beat, they just organized the whole town for the lodgings, meals, and the compassion required to comfort the frightened visitors. I was proud to be a Canadian, and grateful the genuine souls of the Atlantic Provinces, and in particular NL, were there to step-up. ( I doubt Ontarians would have responded as well in a similar situation.) But I sense as more Canadians are stressing about their finances, they are losing their capacity for heartful generosity because they are being squeezed financially. Perhaps this loss is the real cost of this debt crisis.

#115 Al on 10.02.19 at 12:13 am

“Yeah I can just see Bill Morneau instituting a wealth tax. He’s one of the richest men in Canada. He’s married to Nancy McCain for cripes sake.

And Trudeau with his 30 million dollar trust fund..

Yeah right.

Not happening Garth. Sorry”

He’s got a point Garth, they have the wealthies back, the wealthy are almost always in power and theyre not gonna shoot themselves, their family and friends in the foot.. They look out for their own, just like the proletariat voters..

#116 Teknohippie on 10.02.19 at 12:16 am

I suppose I could just stop reading the comments, but old habits die hard. Alas the hateful and ignorant right wing comments and diatribes are getting worse, and insightful comments and links are much more of a rarity. Perhaps it’s just the election. Perhaps it’s simply a reflection of society. Either is unfortunate, but I fear it is the latter.

Maybe it’s time to shut down the comments section, just to help me kick the habit.

#117 Silver on 10.02.19 at 12:19 am

how about we add a box to the election forms…

NONE OF THE ABOVE

go back and give people someone worth voting for.

the option of being able to reject a slate of shitty options might bring back a sense of honesty.

bet the 40%+ of people who don’t vote might show up if they felt they had a voice that counted.
voting for versions of the same is not an option.

one town in Russia that did this had to run slates 28 times before they found a set of candidates that anyone would vote for.

banks are going to make off like “Legal Bandit’s” on this one.
“Interest Profits” will be great on money being created in this way.

Corporate heads will move off shore
Low value distribution left here

public administration salaries and size will reach epic pay and employment levels….
paid for by the remaining none pubic jobs…

and the trough will become more bare and thin till the country eats itself…

it will be epic no matter who gets in…

Silver

#118 Silver on 10.02.19 at 12:24 am

meant to say non public…
not non pubic…

he laughs at himself…

Silver

#119 Treasure Island CEO - $27,093,452.00 offshore on 10.02.19 at 12:26 am

250,000 people in Canada are homeless for at least some time of the year.

The average cost of a home has increased from 5 times the average income to over 10 times the average income (debt needed to bridge this gap – genx in line with this unfortunate timing).

In 23 of 36 major cities in Canada a person earning minimum wage cannot afford to rent a one-bedroom apartment.

#120 Smoking Man on 10.02.19 at 12:50 am

One day your dog dies.

Next time it’s you.

Then everyone that has known you dies.

You are nothing.. all your beliefs fears and challenges are not there.

Drink, smoke, risk take and have fun while you still can.

In the end you will be ash or bones that no one gives a shit about.

Write a book. You might get a few more years after you’re gone to have a fan or two..

Dr Smoking Man
PhD Herdonomics..

#121 fishman on 10.02.19 at 12:51 am

I figured Preston Manning the second coming ever since he first came to Van in the mid 80’s. Liberals the anti-christ: Had to break with the Dippers over waterfront union stuff: Cons let our guy John Fraser get knifed in the back. Voila, a western populist is born. Preston taught me one thing: He’s too nice a guy.

#122 SoggyShorts on 10.02.19 at 1:21 am

#92 Canuck on 10.01.19 at 9:43 pm
Not my opinion. Fact. Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth
_____________________________________________

You’ve just described the Green Party but you have no problem talking about her crazy ideas. 2 seats in 20 years?? At least the PPC, what you call a fringe party has candidates in almost every riding in the country. The NDP and Greens can’t say the same yet they have credibility? Please…

Maybe, just maybe people are starting to learn and are fed up with the same old crap time and time again which by the way, is why Trump got elected.

Not a chance. – Garth
******************************
Funny you should be talking about fringe parties and Trump’s win in the same post. You realize that it’s the Americans who voted for the 3rd party candidate who elected Trump, right?

Trump won 180 electoral votes from states where the 3rd party had enough votes to change the outcome.
E.G. Florida
47% Clinton
48% Trump
2% Gary
So everyone who voted for Gary actually elected Trump.
Where else did this happen?
Texas, Ohio, Alaska, Iowa, Georgia
NC, FLorida, Arizona, Penn, Michigan, Wisconsin,
and Utah

It doesn’t matter if you like Max best, since he can’t win voting for him will elect T2

#123 PKS on 10.02.19 at 1:35 am

Oh, geez, Garth. A 50% marginal tax rate. The horror. Imagine if we went back to pre Mulroney times when it was north of 70. And whay a dystopian nightmare it was in those days, when there were 1/10 as many homeless people, the feds built subsidized housing, and people graduated university without racking up a couple years’ salary in student debt.

Conservatives like Garth would have you believe that it has to be this way, but just in the lifetime of most readers, it’s been different.

#124 Islander on 10.02.19 at 1:53 am

In terms of assets, at least $1 million (houses don’t count) is required to be in the club.

Really? with a mill (barely!) invested I’m a 1 percenter?? Do I have to divide by two since I share it with my better half??

#125 unbalanced on 10.02.19 at 5:24 am

You have always stated that we do not pay directly into OAS; yet you say we over contribute and are means tested for receiving it.

OAS comes from general government revenues, to which high income-earners contribute far beyond their numbers. And receive no benefit. Seems clear. – Garth

#126 Not so happy Canadian on 10.02.19 at 6:34 am

64% of Americans will retire with less than $10,000 in savings.

The Motley Fool: 64% of Americans Are at Risk of Retiring Broke.
https://www.fool.com/retirement/2019/09/30/64-of-americans-are-at-risk-of-retiring-broke.aspx

With the tax tax tax political reapers like Trudeau, May and Jag looking at your personal finances as their piggy bank things look grim for Canada.

#127 akashic record on 10.02.19 at 7:29 am

Irrelevant? – Garth

Then enjoy what you think and legitimize as “relevant”.

Not my opinion. Fact. Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth

Every big change starts as fringe, “irrelevant”. Greta comes to mind, but someone at one point dreamed up the fringe idea of T2, the drama teacher as Canada’s prime minister.

Conservative votes could have shifted entirely to Max as soon as it becomes obvious that the Conservative Party is just Liberal Light. Don’t split the vote, drop Andrew. “Every vote to Andrew is a vote to Trudeau.” Except that Max was vilified, marginalized from the very beginning and ever increasing since he attracts support, to the extent of attempting to silence him by an organized group like antifa.

M. Bernier is a sore loser who, when democratically defeated for the Conservative leadership, started his own party where he appointed himself. These are not the highest leadership traits. – Garth

#128 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 10.02.19 at 7:30 am

162 DAYS WITHOUT A REGULAR SEASON LOSS!!!!!

The Make Believes are UNSTOPPABLE!!

1000 DAYS IS NEXT, FOR SURE!!!

TORONTO IS THE BEST!!

There hasn’t even been a double homicide shooting in Toronto for ALMOST 12 HOURS!!

That’s SOOO YESTERDAY’S NEWS!!

Buy ALL the condos and slanty semis in that city while you can – it is SPECIAL there!

Things ONLY GET BETTER IN THE GTA!!!!

#129 Stan Brooks on 10.02.19 at 7:39 am

https://ca.finance.yahoo.com/news/canada-home-to-two-of-the-worlds-most-overvalued-real-estate-markets-134301773.html

https://www.visualcapitalist.com/canada-has-the-most-overvalued-housing-market-in-world-chart/

On one side of the ring, we have The Economist, that came out last week saying Canada has the most overvalued housing market in the world. After crunching the data in housing markets in 26 nations, The Economist has determined that Canada’s property market is the most overvalued in terms of rent prices (+89%), and the third most overvalued in terms of incomes (+35%). They have mentioned in the past that the market has looked bubbly for some time, but finally Canada is officially at the top of their list.

On the opposing side of the ring, who will contend that the Canadian housing market is just different this time? Hint: look to the banks and government.

Of course BoC is openly lying about it, hey, this is how things work here, if you want transparency go somewhere else/and not let the door hit you on your way out.

Governments of course work for the banks.

At the end you get what you wished for: The highest private debt/GDP in the world, unbearable cost of living and roaring inflation combined with the highest taxes to benefits ratio anywhere in the world, globalization on another hand ensures the indebted sheeple’s income is constantly declining.

Combined with a ‘fantastic’ weather and non-existing or crumbling infrastructure and ruled by endless oligopolies it becomes really interesting place not to live in.

Cheers,

#130 the ryguy on 10.02.19 at 7:47 am

#91 conan on 10.01.19 at 9:37 pm
—————————————
You must not get out much dude. The airports in Vancouver & Edmonton have huge poster of their smiling trans Staff..”see we aren’t that different”. Every month (week?) there is a pride event somewhere. Wasn’t there just a big walk out from school in montreal?

A friend of mine is in nursing school told me she is barely hanging on as she is bombarded with propoganda. A different friend of mine, his mother is one of the regional leaders of the nurses union..she said they have to do monthly meetings to deal with pronouns. It’s everywhere bud.

Thank god I went out on my own and have built my own businesses..I couldn’t fathom trying to be an employee in this environment.

#131 one big joke on 10.02.19 at 7:59 am

i wonder if canadian banks will cut fees to $0 per trade like in the US now..

probably not since the Competition Bureau and securities regulators in canada are in bed with the banks…

another job well done in canada

#132 Tater on 10.02.19 at 8:04 am

For all the debate about capital gains inclusion, it makes up a very small part of personal income tax collections. I saw some numbers that put it at about 2% of all personal income taxes collected. Fiddling with it will make no real difference to taxes collected nor generate enough revenue to offset a meaningful cut in income tax rates.

The only way to boost revenue, is to increase the rates on the lower tax brackets and broaden the tax base. But no-one is getting elected off that.

#133 Sam on 10.02.19 at 8:15 am

DELETED

#134 maxx on 10.02.19 at 8:17 am

@ #4 Dumbwealth on 10.01.19 at 4:45 pm

“…….If we value a society with a robust middle class, we must work hard to preserve it.”

Yes indeed. This was completely lost on TPTB. Instead, a culture of FIRE was implemented, tapping into some of the greatest of human weaknesses, greed and keeping up with the mythical Joneses. This was a slam-dunk with CBs who diddled with rates for this express purpose for over two decades.

Savers were and still are ostracized. Low rates are a way to force THEIR money to whatever vehicles TPTB would like.

Play your own game.

“People need to look inward and start with their own ability to create wealth. Big brother can set the legal and tax framework, but we all need to be accountable.”

Big Brother has failed miserably at this because it has decimated the TFSA and pathetically stepped into a fiscal cowpat by backstopping the huge (and growing) created by dropping rates.

Dropping. Rates. Doesn’t. Work.

Now there’s talk of a minimum wage for all? If ever there was an admission of stupidity, this is it. People need to work and feel what it is to build wealth, otherwise, they’re simply on track to being even more helpless and lazy.

Motivation is at the core of any successful society and that is disappearing fast. I too often see people at work who really should have their butts handed to them – lousy employees who would leave a business in better shape if they hit the road.

This species of Canucklehead believes that success was undoubtedly obtained unfairly and that they deserve a slice of the pie they didn’t contribute to. Enabling that delusion will send this country over the cliff.

#135 crowdedelevatorfartz on 10.02.19 at 8:24 am

@#117 TechNoir
“Maybe it’s time to shut down the comments section, just to help me kick the habit.”
++++

Censorship.
And from a Hippie no less.
Here’s a thought.
Break your “habit”, stop reading the comments.

#136 crowdedelevatorfartz on 10.02.19 at 8:33 am

@#128 the ryguy
“Thank god I went out on my own and have built my own businesses..I couldn’t fathom trying to be an employee in this environment.”
++++

Yep.
I listen to my friends or their spouses and EVERYONE is ready to scream.
They hate going to work because the Inhumane Resources Depts have highjacked large companies.
It isnt about profits anymore.
Hour upon politically correct hour is spent in meetings discussing “empowerment”, “synergies”, “safe spaces”, “rights”, “harrassment”, on and on and on.

Funny thing is, the HR people are usually the first to book off for “stress” or “bully” staff.

“Empowerment”
Possibly the most overused word of the decade.

Unfortunately, the HR bottom feeders are here to stay.

#137 Dharma Bum on 10.02.19 at 8:38 am

A lot of panic ensuing amidst the current horrible indebtedness and financial irresponsibility, illiteracy, and ignorance of average individuals (i.e. – “consumers”).

Here’s my prediction:

Despite what any incompetent Canadian government decides to do, the rich will get richer and the poor will get poorer.

Look back on this remarkable prediction in 10 years from now, and you’ll say, by gosh, that bloke was BRILLIANT!

#138 crowdedelevatorfartz on 10.02.19 at 8:39 am

@Silver
“meant to say non public…
not non pubic…”
+++++

Damn spell check or a Freudian mistake….
Either description for the productive private sector is appropriate once they are taxed ( shaved?) 50 % of their annual income in the various taxes and user fees taken.

#139 IHCTD9 on 10.02.19 at 8:39 am

#110 Bottoms_Up on 10.01.19 at 11:45 pm

Canadians are broke because we’ve allowed corporations to set the price.
____

Yeah it’s a shame those nice 12 hp lawn tractors cost 999.99 these days. Damn Corporations! They should have kept charging 3000.00 (inflation adjusted) dollars like they did in the 70’s and 80’s!

We need to let the Government set the prices so it’ll cost 6 grand for an 8 hp mower!

#140 Stan Brooks on 10.02.19 at 8:44 am

#132 maxx on 10.02.19 at 8:17 am

This species of Canucklehead believes that success was undoubtedly obtained unfairly and that they deserve a slice of the pie they didn’t contribute to. Enabling that delusion will send this country over the cliff.

It went over the cliff long time ago.

Now we are bracing for impact. We have not hit the ground yet, so the sheeple concludes that there is no ground and all is well… Life goes on…The banks and the government say so, so it must be truth.

The owners of this place are still looking for ‘quality’ idiots to keep the debt train going with their slave labour.. and are surprised that there aren’t many./if any.

There will never ever be a truly wealth tax here, they will find a way to further tax the doctors and small businesses, while the uber rich will keep getting free pass on their offshore tax avoidance schemes.

2 rules – one for the plutocracy/kleptocracy/’aristocracy’ and completely different one/hard enforced for the debt slaves.

#141 Dharma Bum on 10.02.19 at 8:46 am

#115 Teknohippie

Maybe it’s time to shut down the comments section, just to help me kick the habit.
——————————————————————–

Or, maybe you can just get a sense of humour.

#142 Remembrancer on 10.02.19 at 8:53 am

#113 Ray on 10.02.19 at 12:13 am
But I sense as more Canadians are stressing about their finances, they are losing their capacity for heartful generosity because they are being squeezed financially. Perhaps this loss is the real cost of this debt crisis.
——————————————————
Ray, IMHO you’ve missed the point of the play unfortunately, reflect on it a bit more maybe?

BTW, the dig at Ontario is a tad ignorant. When NA airspace was shutdown, NAV Canada purposely routed trans-Pacific flights to the west coast, mostly Vancouver (34) and trans-Atlantic flights to the east coast, mostly Halifax (47) and Gander (37). Other major international flight destinations including Toronto, Ottawa and Montreal were avoided purposely when practical, though not because of a possible lack of hospitality…

None of this takes away from the generosity of the great people of Gander, where there is an unusually large airport facility due to its historic role as a last stop refueling point before heading over the Atlantic and in-flight emergency diversion site, who have seen more than their share of tragedies…

#143 Leo Trollstoy on 10.02.19 at 8:57 am

#115 Teknohippie on 10.02.19 at 12:16 am

You need a safe space

#144 Leo Trollstoy on 10.02.19 at 9:05 am

#105 Tannhäuser Gatekeeper on 10.01.19 at 10:58 pm

Spot on

#145 IHCTD9 on 10.02.19 at 9:07 am

#95 PastThePeak on 10.01.19 at 9:55 pm

#25 Loonie Doctor on 10.01.19 at 5:40 pm

One good thing about being a high-income professional is that we can adapt. Watching how this train is moving, my wife and I are planning to adapt by downsizing and I will go down to part-time work.

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

I am 100% with your thinkin’ Doc!
____

Just lost our family Doc, it’s an interesting situation. From our pretty reliable sources he’s “had it”, and is giving up being a Doc entirely. Apparently he has had a business on the side for years, and the expectation is that this will be his new “job”. Guy is probably right at 40 or so.

Too much BS, and even a guy who invested a decade+ into a profession will throw in the towel. He probably has everything paid for and a few different options too.

Think of what things will be like if we have even just 2-3 more rounds of T2 style government. EVERYONE that had to invest huge in a big education or a business venture will be cutting back or leaving. If Docs are cutting and quitting in 2019, how much worse will it be in 2031? (**shiver**)

#146 PastThePeak on 10.02.19 at 9:10 am

#115 Teknohippie on 10.02.19 at 12:16 am
I suppose I could just stop reading the comments, but old habits die hard. Alas the hateful and ignorant right wing comments and diatribes are getting worse, and insightful comments and links are much more of a rarity. Perhaps it’s just the election. Perhaps it’s simply a reflection of society. Either is unfortunate, but I fear it is the latter.

Maybe it’s time to shut down the comments section, just to help me kick the habit.
+++++++++++++++++++++++++++++++++++++++++++++++++

Typical leftard socialist. *I* don’t see value in this now, so please shut it down. Not reading is just too hard, so must take it away from everyone.

And you wonder why your ideas get pushback…

#147 PastThePeak on 10.02.19 at 9:17 am

One of the main reasons for an increase in wealth disparity over the last 2 decades has been the low interest rate environment. Low rates lead to asset inflation (real estate, equities, bonds, art,…). The wealthy tend to own these things, and hence their wealth increases much more than persons who do not.

Yet one more “consequence” of the easy money policy central bankers have pursued. And of course the current path by most CBs is even lower rates, which is for sure to fix things (eye-roll-emoji)…

Low rates have also inflated real estate, and with 70% homeownership rate in Canada you must admit the wealth effect has been widespread. Too bad most people over-consumed, over-bporrowed and squandered the opportunity. – Garth

#148 Sammy Goodfellow on 10.02.19 at 9:19 am

#123 Islander. Yup. Dude the stats are based on individual net worth excluding real estate. And it’s not a single million with some fibbing about the used Buick or the wife’s jewellery collection , a maybe inheritance or non fungible pension from your life insurance friends. Correct me if I’m wrong someone but I think the one percent is actually the .085% of Canadians with 1.5 million liquid to invest. One million doesn’t cut it anymore.

Reality comes when you apply for a margin account from a brokerage. They’ll strip the bullshit out of your net worth statement and tell you what you’re really worth.

#149 PastThePeak on 10.02.19 at 9:35 am

#33 Dog Breath on 10.01.19 at 6:06 pm
Here’s my final post on the man made global warming hysteria. (I promise) —
Watch this brief video by Tony Heller on Zero Hedge He does an amazing job of showing how the fraud takes place in his video entitled My Gift To Climate Alarmists.

https://www.zerohedge.com/geopolitical/global-warming-fraud-exposed-pictures
++++++++++++++++++++++++++++++++++++++++++++++++++

Great video, very informative. I frequently watch and enjoy Tony’s stuff. Just to note that he is not from Zero Hedge – they just linked to it. Some on here will reflexively not go anywhere near information that comes from that site.

Here is the YT channel link:
https://www.youtube.com/user/TonyHeller1

Anyways, Tony absolutely demolishes the climate alarmist propaganda by showing how they use high school level statistical tricks by omitting data *from their own data sets*.

It is absolutely fraudulent propaganda. And not a single climate alarmist on this site will watch it, and even if they did, they would just attack the person saying “what have they published lately”…

Gotta go – I had to bring in my 13 year old daughter to give a lecture to the engineering team about how they are doing it wrong…

#150 Ronaldo on 10.02.19 at 9:46 am

#123 Islander on 10.02.19 at 1:53 am
In terms of assets, at least $1 million (houses don’t count) is required to be in the club.

Really? with a mill (barely!) invested I’m a 1 percenter?? Do I have to divide by two since I share it with my better half??
—————————————————————
Yes, after the divorce. Better be nice to your better half otherwise you may end up with half.

#151 IHCTD9 on 10.02.19 at 9:48 am

#100 BlogDog on 10.01.19 at 10:06 pm

#86 Shawn Allen

Your assumptions are wrong. I’m a dually.
_____

DC is going to come in pretty handy in the years to come IMHO. We know that immigrants already find it plenty tough getting by in Canada, and that 35-40% currently leave within 10 years of arrival. DC makes it easy to just pack it in.

If Canadians vote in a couple more rounds of T2 style government, our economy is going to be gasping for breath. At some point the employment situation, expected wages, and taxes thereof – will not make enough sense. Factor in the irritation and embarrassment involved with having a creepy SJW faker PM like T2 as leader – and the decision becomes even easier.

I hope to make it to retirement before losing all my employment options, but I actually do have the option to possibly gain DC, and one of my bro’s already has. My parents C.o.O. was a global empire 100’s of years ago – so there are several places on the planet where I could land – some being very sunny warm :)

I keep thinking about it…

#152 n1tro on 10.02.19 at 9:59 am

#118 Treasure Island CEO – $27,093,452.00 offshore on 10.02.19 at 12:26 am
250,000 people in Canada are homeless for at least some time of the year.

In 23 of 36 major cities in Canada a person earning minimum wage cannot afford to rent a one-bedroom apartment.
———-
Why should minimum wage be able to rent a one-bedroom apartment?

Minimum wage jobs are for kids or unskilled workers as a stepping stone to something else. As they earn/learn, they should have a (non government) support system in place ie. parents or family

Did these people just spawn out of the ground?

#153 Sail Away on 10.02.19 at 10:03 am

#87 PastThePeak on 10.01.19 at 9:19 pm

I said it two years ago when I first started reading the blog, and I will say it again. Those that think what happened in Venezuela can never happen here are delusional.

Based on the MSM and the bilge section here, it would be done to mostly thunderous applause.

Economy would crater faster than you could blink, more nationalization, and hyper inflation would take hold. Takes less than a decade, as everyone has learned from Venezuela and know how to wreck it faster…

————————————

Venezuela is is good cautionary tale. Similar natural resources and horrendous management. Can you imagine how fast every large Canadian company would relocate their official operation to the US if nationalization started?

Most of the larger corporations have already pre-planned by interlisting their stock.

I’m wondering what the corps will say if Canada follows through with the election pledge to tax them. Either ok and raise prices or goodbye. We’ve already seen what happened with foreign oil companies when doing business here became difficult.

#154 Sail Away on 10.02.19 at 10:13 am

#115 Teknohippie

Maybe it’s time to shut down the comments section, just to help me kick the habit.

——————————–

Yes, it’s all about you.

#155 Ray on 10.02.19 at 10:14 am

#140 Remembrancer :
Please read my whole comment. The play was inspirational.

#156 Eks dee Siple on 10.02.19 at 10:26 am

Dividend drunks. Capitalist junkies. The reason we are in this mess is because we’ve allowed the central bank and the commercial banks to ruin everything. The capitalist school of thought from the 1800s works well for a while, until it doesn’t. The wealth gap is too wide to allow proper flow and allocation of capital. Wise men and women MUST take the reins from the corrupt old boys network in order to save the republic.

If the invisible hand of the market was real, why are we even having this conversation? The simple truth is that capitalism doesn’t work without socialist modification. Naked risk-taking more often than not does not result in greater employment of the masses. It simply results in money flowing offshore even in times of Conservative rule.

#157 Penny Henny on 10.02.19 at 10:34 am

Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth
///////////////////

The Reform party might have killed off Kim Campbell’s conservatives put it was short term pain for long term gain. It was needed.

The majority of Canadians voted for either PCs or Reform, wishing to have a conservative government. They were then ruled by Liberals for 13 years as a result of vote-splitting. – Garth

#158 Sail Away on 10.02.19 at 10:45 am

#130 Tater on 10.02.19 at 8:04 am

The only way to boost revenue, is to increase the rates on the lower tax brackets and broaden the tax base. But no-one is getting elected off that.

——————————–

Yes. And current spending could also be cut to free up cash. Also not popular.

Slightly off-topic, but I always find it funny (in a sad way) when money taken from others by decree is called revenue.

#159 Eks dee Siple on 10.02.19 at 10:46 am

Too bad most people over-consumed, over-bporrowed and squandered the opportunity. – Garth

The banks are to blame for this. Zero risk-taking with CMHC. Not very capitalistic. Do we better solve the drug crisis by arresting the users, or the dealers?

Maybe we should expect people to be self-regulating instead of subsidized. That would be pleasant. – Garth

#160 MF on 10.02.19 at 10:51 am

143 IHCTD9 on 10.02.19 at 9:07 am

Time in school hasn’t meant a thing since 1985.

There are a ton of people who want to become doctors (to actually help people) who get denied every year. That’s how the wages are kept artificially elevated.

The “shortage” is therefore artificial, and easily fixable. Automation is also going to be a problem going forward.

So a fixable problem.

MF

#161 MF on 10.02.19 at 10:53 am

151 Sail Away on 10.02.19 at 10:03

The Venezuela comparison is a joke.

I’m pretty pro business, and conservative..but this comparison is hilarious.

MF

#162 SunShowers on 10.02.19 at 11:00 am

#150 n1tro on 10.02.19 at 9:59 am
Minimum wage jobs are for kids or unskilled workers as a stepping stone to something else. As they earn/learn, they should have a (non government) support system in place ie. parents or family

“In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By “business” I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living.” -FDR: June 16, 1933, after introducing the federal minimum wage in the USA.

#163 IHCTD9 on 10.02.19 at 11:01 am

#54 Re-Cowtown on 10.01.19 at 6:51 pm

The “Khmer Verts” candidates miss one key point: Cheap energy enriches lives.
___

I think talking about conventional energy in terms of labour would really help those who are demanding that the Oil remains in the ground understand what they are asking for.

One Man who is in decent shape labouring for about an hour will produce ~.6 KWh. That’s about what you’d need to make 5-6 slices of toast. If you were to be paid for working by the energy you actually outputted – even at Ontario’s insane pre-subsidy rates – you’d only get $1.20 at the end of the day.

It is obvious to anyone that if you have to sweat for half an hour just to make a few slices of toast – no one would do it. Toast ain’t worth it.

Toast becomes a luxury when dirt cheap conventional energy goes away. Pretty much everything does.

#164 ArcticOutback on 10.02.19 at 11:16 am

RE: #61 Ace Goodheart on 10.01.19 at 7:15 pm
Yeah I can just see Bill Morneau instituting a wealth tax. He’s one of the richest men in Canada. He’s married to Nancy McCain for cripes sake.

And Trudeau with his 30 million dollar trust fund..

Yeah right.

Not happening Garth. Sorry

—-
That’s the trick with this Liberal Governemnt. All of their programs are based on INCOME, not WEALTH.

Canada is a great place to live under Trudeau if your family has alot of wealth and you make an average income with pension/benefits/lots of vacation (think Public sector). You have your ‘free’ use of your families existing cottage and lots of paid vacation time off to use it. Your lower income gets you all of the family CCB benefits as well. These are the folks that will do their best to keep Trudeau’s ‘Sunny Way’s’ liberals in power.

If you come from a modest/lower class background and are now trying to build wealth working in the private sector or as an entrepreneur you will be taking the brunt of these Liberal ‘INCOME-based’ polices.

#165 Stan Brooks on 10.02.19 at 11:19 am

People are so stretched and life is so expensive, so now they can’t afford rent….


https://ca.finance.yahoo.com/news/how-canadians-with-bad-credit-can-get-a-foot-into-the-rental-housing-market-121823393.html

A one room condo in Toronto or Vancouver is leasing for $1800+.A basic cookie cutter condo of 600sqft.Consider the medium income of a Canadian in Vancouver is $38,000 a year and in Toronto $45000 a year you can figure out after taxes 60% of your take home income is going towards rent

Of course there is no inflation the authorities say.

And the solution is to lease/take loan for the deposit on that condo! rent.
I am not kidding, the time when you will take a diaper loan when a baby is born is quickly approaching. Guaranteed by the government/for the better of all Canadians.

Born in debt, die in dept. A wealthy/G7 country.

Cheers,

#166 n1tro on 10.02.19 at 11:26 am

#160 SunShowers on 10.02.19 at 11:00 am
#150 n1tro on 10.02.19 at 9:59 am
Minimum wage jobs are for kids or unskilled workers as a stepping stone to something else. As they earn/learn, they should have a (non government) support system in place ie. parents or family

“In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By “business” I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living.” -FDR: June 16, 1933, after introducing the federal minimum wage in the USA.
———–
Thanks for the quote but is it meant to mean anything? Seems the introduction of a minimum wage didn’t achieve either of FDR’s objectives which was to apply 1. all workers and 2. wages that provide a decent living.

A person who doesn’t feel like they are being paid what they are worth….is it the minimum wage laws that gets them that decent life or is it business along with the individual that goes out and gets the higher paying job?

#167 Sail away on 10.02.19 at 11:31 am

#40 SunShowers on 10.01.19 at 6:18 pm

2) either the 1% aren’t paying enough, or the 99% aren’t being paid enough.

4) It’s actually consumers who create income for workers. Employers are middlemen who extract rent from workers by virtue of them already being wealthy enough to own the means of production.

7) Making our benchmark for success how much surplus value could be extracted from workers…

————————————-

I see you’re using the Communist Manifesto as your playbook, SunShowers.

Interesting theories, but communism hasn’t exactly proven to be the greatest in practice. You think it’s time for another try?

#168 Eks dee Siple on 10.02.19 at 11:38 am

Maybe we should expect people to be self-regulating instead of subsidized. That would be pleasant. – Garth

Maybe idealism isn’t the answer right now. Employment used to be the medium through which wealth “trickled” down, but I don’t think that is the case anymore. Do we need a more radical solution? A better solution? Of course. But don’t bet the farm on the Conservatives in this country to come up with it.

#169 Don Guillermo on 10.02.19 at 11:42 am

#159 MF on 10.02.19 at 10:53 am
151 Sail Away on 10.02.19 at 10:03
The Venezuela comparison is a joke.
I’m pretty pro business, and conservative..but this comparison is hilarious.
MF
**********************************************

I lived and worked in Venezuela for 2 years at the very beginning of the Chavez days.

That’s what the Venes thought at the time as well.

#170 Mattl on 10.02.19 at 11:50 am

#145 PastThePeak on 10.02.19 at 9:17 am
One of the main reasons for an increase in wealth disparity over the last 2 decades has been the low interest rate environment. Low rates lead to asset inflation (real estate, equities, bonds, art,…). The wealthy tend to own these things, and hence their wealth increases much more than persons who do not.

————————————————————–

The Wealthy may have benefited most from the RE boom but the middle class killed it as well. A majority of Canadians own RE and literally everyone I know has made a few hundred K minimum on RE. The folks that did best have cashed 7 figures tax free. I don’t run with trust fund kids or bank execs – one guy is a framer, another specialty retail manager, mill worker, small scale builders, sales reps etc.

I fail to see how low rates have only benefited the wealthy. I think the opposite – low rates have allowed the middle class to take some risks that never would have been available to them – start a business, build a RE portfolio, borrow to invest. All opportunities that are available to the wealthy any time.

#171 jess on 10.02.19 at 11:51 am

reframing

Why it Matters How We Frame the Environment
George Lakoff
Pages 70-81 | Published online: 17 Mar 2010

Download citation https://doi.org/10.1080/17524030903529749

https://www.tandfonline.com/doi/full/10.1080/17524030903529749

….” Third, conservatives tend to think more in terms of direct rather than systemic causation (Lakoff, 2006 Lakoff, G.P. 2006. Whose freedom?, New York: Farrar, Straus, and Giroux. [Google Scholar], especially Chapter 7). But phenomena like global warming work by systemic, not direct causation.

Fourth, present-day market fundamentalism assumes that greed is good. It supports the view that market principles should govern our conflicts between environmentalism and economics.

One such principle is cost–benefit analysis (CBA). The basic math of CBA uses subtraction: the benefits minus the costs summed over time indefinitely. Now those “benefits” and “costs” are seen in monetary terms, as if all values involving the future of the earth were monetary. CBA is just the wrong paradigm for thinking about global warming, however. For example, as any economist knows, future money is worth less than present money. How much less? The equation has a factor that tells you how much: e (2.781828 …) to the power minus-d times t, where t is time and d is the discount rate. Now e to a negative power gets very small very fast. Just how fast depends on the exact discount rate (that is, interest rate), but any reasonable one is a disaster. The equation says that, in a fairly short time, any monetary benefits compared to costs will tend to zero. That says there are no long-term benefits to saving the earth!

Fifth, aligned with CBA is the Equivalent Value Metaphor. To find out the monetary value of the environment in a particular case, think in terms of the “services” that the environment in this case provides to human beings. Then compute what it would cost private enterprise to provide the equivalent services. That is the value of the “environmental service.” If a developer is willing to pay that amount or more, development should proceed. In cases of development versus conservation, compute the profits from development that would be “lost” to the developer under conservation, and consider that the value of the conservation. That is the money to be paid to the developer if conservation is chosen. In both, the natural environment, which lasts indefinitely, is destroyed and sacrificed to short-term profit.

#172 IHCTD9 on 10.02.19 at 11:52 am

#158 MF on 10.02.19 at 10:51 am
143 IHCTD9 on 10.02.19 at 9:07 am

Time in school hasn’t meant a thing since 1985.

There are a ton of people who want to become doctors (to actually help people) who get denied every year. That’s how the wages are kept artificially elevated.

The “shortage” is therefore artificial, and easily fixable. Automation is also going to be a problem going forward.

So a fixable problem.

MF
_____

The comment was more around what does it take to provoke an MD making 300+K/yr to bail on the considerable effort invested, and compensation thereof.

In this case it appears the BS involved has overcome whatever the young Doc thought was good about the job.

Now add new future potentials like abusive taxation and new CRA persecutions on small businesses, and you might get a steady stream of bright-eyed/bushy tailed new Doc’s exiting the meat grinder of reality on route to some other job, or country.

Big bucks only go so far as compensation, and they’re worth less and less as you get older/wiser.

#173 Penny Henny on 10.02.19 at 11:54 am

#155 Penny Henny on 10.02.19 at 10:34 am
Fringe parties bleed off support and render unintended consequences. Math defeats principles every time. People never learn. – Garth
///////////////////

The Reform party might have killed off Kim Campbell’s conservatives put it was short term pain for long term gain. It was needed.

The majority of Canadians voted for either PCs or Reform, wishing to have a conservative government. They were then ruled by Liberals for 13 years as a result of vote-splitting. – Garth
////////////////////

IMO the PC’s had lost their way

Irrelevant to the point. Vote-splitting gave the Libs a win the voters did not intend. Fortunately we don’t care what your opinion is. – Garth

#174 jess on 10.02.19 at 11:59 am

So do the people who voted for this guy feel duped?

https://www.washingtonpost.com/election-results/new-york-27th-congressional-district/
=============================

New York (CNN)Chris Collins, a New York Republican congressman until his resignation on Monday, pleaded guilty Tuesday in an insider trading case in federal court after having spent more than a year saying the allegations against him were “meritless” and winning reelection while under indictment.
Collins, the first sitting congressman to back President

Donald Trump’s bid for the White House, pleaded guilty to conspiracy to commit securities fraud and making false statements. Each charge carries a maximum sentence of five years in prison.
“I regret my actions beyond anything that I could explain here today,” Collins, 69, said in court.

Collins and his co-defendants — his son and another man — had pleaded not guilty twice in the case, once after the original set of charges in August 2018 and a second time in September 2019 to the revised charges contained in what’s known as a superseding indictment.
By pleading guilty, Collins avoided a broader set of charges from the superseding indictment, including securities fraud, conspiracy to commit wire fraud and wire fraud.
Collins admitted to having given his son nonpublic information about the failed results of a drug trial, which Collins had obtained by virtue of his position as a board member of the pharmaceutical company Innate Immunotherapeutics Limited. (cnn)

#175 Mattl on 10.02.19 at 12:06 pm

#160 SunShowers on 10.02.19 at 11:00 am
#150 n1tro on 10.02.19 at 9:59 am
Minimum wage jobs are for kids or unskilled workers as a stepping stone to something else. As they earn/learn, they should have a (non government) support system in place ie. parents or family

“In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By “business” I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living.” -FDR: June 16, 1933, after introducing the federal minimum wage in the USA.

————————————————————–

Min wage IS a living wage in all Canadian provinces.

Min wage in BC will get you a bus pass, a basement suite or shared accommodations in a B city and enough food to get fat. If you are really frugal, you may be able to squeeze in a cheap car with basic insurance, and enough beer to get drunk every weekend. That is not subsistence living (rooming house / lack of food / ragged clothes).

Living wage doesn’t mean having a 2bdr in Kits, a new car, money to go out with your buds every weekend. For that, you may need to shoot a little higher, work some side jobs.

It is incredibly easy to make 30-40K in Canada right now. People are dying for good reliable people that they can pay $20+ per hour. Mowing lawns summer and doing snow removal in the winter, where I live, pays $22 an hour to start. But good luck finding anyone to do it. Things have become so easy no one understands what hardship truly looks like.

#176 Stan Brooks on 10.02.19 at 12:16 pm

#168 Mattl on 10.02.19 at 11:50 am
#145 PastThePeak on 10.02.19 at 9:17 am

The Wealthy may have benefited most from the RE boom but the middle class killed it as well. A majority of Canadians own RE and literally everyone I know has made a few hundred K minimum on RE. The folks that did best have cashed 7 figures tax free.

This is how it looks as valuations are variable but the debt is constantly growing.

Your house value means nothing as it is measured in increasingly worthless currency but more importantly, depends on future generations and buyers mortgaging and committing their future and that of their descendants for that house in an enthronement of peak debt, baby boomers retiring, declining real incomes and ever weakening economy.
Which is highly unlikely.

i.e it seems the real top in real value of the houses was probably 3-4 years ago, from there on and into the future the real house values as measured in real goods and services that can be purchased for that price will only decline.
As for the nominal value, nobody really cares how many worthless BoC notes you can demand for it.

You can’t make an economy through debt. The only one killing it are the banks.

You and other feeling rich owners are scammed into paying higher property taxes for the house that you already live in. And here is the paradox: you gain nothing more by living in the same house while paying higher taxes and you feel good about it as the value of the house has increased?

Excuse me, but if you don’t see the scam here, you are a hopeless case/like many others.

#177 Jeff on 10.02.19 at 12:34 pm

Another blog post, another intentional lack of acknowledgement of Bernier’s PPC. Scared someone will call you racist, Garth? Would be very interested to know what the cognitive dissonance looks like up in that noggin.

Actually Max isn’t worth wasting time on. You will see why on October 22nd. – Garth

#178 Loonie Doctor on 10.02.19 at 12:36 pm

#143 IHCTD9
Sorry to hear about loss of your doc. My hope is that more will cutback before getting fed up. Then have longer, lower intensity careers. We’ll see, the situation of getting caught between unrealistic demands and resources and the increasing lack of respect by those who figure anyone can be a doctor if they just put the time in (or google it if not) is soul-sucking.

#158 MF

Time in school hasn’t meant a thing since 1985.

There are a ton of people who want to become doctors (to actually help people) who get denied every year.

—————————————————————-
Becoming a doctor isn’t just about time in school. It also the intensity. By intensity, I mean hours per week and the fact you need to achieve a top standing (lots of effort) during those hours. The difference between the “putting time in to get another degree” crowd and the medicine wannabes is no comparison. Yes, there are plenty of people who meet the minimum requirements that don’t get into medicine. I teach medical students and residents daily – I can tell you that I wouldn’t want the “B Team” looking after me, thanks.
-LD

#179 Tater on 10.02.19 at 12:37 pm

173 Mattl on 10.02.19 at 12:06 pm
#160 SunShowers on 10.02.19 at 11:00 am
#150 n1tro on 10.02.19 at 9:59 am
Minimum wage jobs are for kids or unskilled workers as a stepping stone to something else. As they earn/learn, they should have a (non government) support system in place ie. parents or family

“In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By “business” I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living.” -FDR: June 16, 1933, after introducing the federal minimum wage in the USA.

————————————————————–

Min wage IS a living wage in all Canadian provinces.

Min wage in BC will get you a bus pass, a basement suite or shared accommodations in a B city and enough food to get fat. If you are really frugal, you may be able to squeeze in a cheap car with basic insurance, and enough beer to get drunk every weekend. That is not subsistence living (rooming house / lack of food / ragged clothes).

Living wage doesn’t mean having a 2bdr in Kits, a new car, money to go out with your buds every weekend. For that, you may need to shoot a little higher, work some side jobs.

It is incredibly easy to make 30-40K in Canada right now. People are dying for good reliable people that they can pay $20+ per hour. Mowing lawns summer and doing snow removal in the winter, where I live, pays $22 an hour to start. But good luck finding anyone to do it. Things have become so easy no one understands what hardship truly looks like.
—————————-

If you can’t find people for a job at a certain wage, it means the wage is too low.

#180 Part Time Earnings on 10.02.19 at 12:37 pm

#173 Mattl:- One must always think out of the box. In some cases one only needs a boat. In any week during the warmer months, one could work a few hours each day or on the weekends to pocket $600 in cash.

#181 crowdedelevatorfartz on 10.02.19 at 12:46 pm

@#173 Mattl
” People are dying for good reliable people that they can pay $20+ per hour”
++++

Yep.
I heard an ad on the radio the other day Amazon is starting a new sorting depot in Tsawwassen and is offering $20/hr , full medical, dental vacation benefits ( no waiting period).

I see “We’re Hiring ” decals on just about ecvery trades truck driving around town.
The Carpenters, electrical, plumbing unions are running constant ads begging for new recruits with garanteed jobs. Safeway, WalMart, Cost co Starbucks.
Endless requests for people.
Every time some well dressed 20 something kid sitting on a sidewalk with a well fed puppy asks me for spare change I want to kick them in the teeth.

We need a brutal, prolonged recession to weed out the lazy assed bullshit.

#182 Flop... on 10.02.19 at 12:59 pm

#179 crowdedelevatorfartz on 10.02.19 at 12:46 pm

Every time some well dressed 20 something kid sitting on a sidewalk with a well fed puppy asks me for spare change I want to kick them in the teeth.

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

Hey, whoa, hey!

To much caffeine this morning Crowdie?

At least wait until everyone has free dental…

M45BC

#183 Shawn Allen on 10.02.19 at 1:00 pm

FDR and Minimum Wage and the United States of Hyprocicy

Sunshowers at 160 gave us the quote from FDR

FDR: June 16, 1933, after introducing the federal minimum wage in the USA.

****************************
In 2019 the U.S. Federal minimum wage is $7.25 per hour! Even in U.S. dollars, not exactly a living wage.

Meanwhile the U.S. federal representatives insisted in the recent pending new NAFTA that Mexico pay at least some of its auto assembly workers $15 U.S. per hour at minimum. I am not making this up.

United States of Hypocrisy.

#184 Bdwy on 10.02.19 at 1:29 pm

In any week during the warmer months, one could work a few hours each day or on the weekends to pocket $600 in cash.
————-
???
Sounds like smuggling. Whats in your boat???

#185 Eks dee Siple on 10.02.19 at 1:35 pm

#177 Tater: If you can’t find people for a job at a certain wage, it means the wage is too low.

I can’t believe I agree with Tater? But exactly correct. Mattl suffers from an incurable condition endemic to most conservative “thinkers”: economic myopia. The rest of Canada is exactly like where he lives, apparently. And everyone’s situation is exactly like his.

#186 Sail away on 10.02.19 at 1:36 pm

#179 crowdedelevatorfartz on 10.02.19 at 12:46 pm

Every time some well dressed 20 something kid sitting on a sidewalk with a well fed puppy asks me for spare change I want to kick them in the teeth.

———————————————-

Wow. What’s in the air these days? No guns for you.

#187 ddave on 10.02.19 at 1:56 pm

#159 MF on 10.02.19 at 10:53 am
151 Sail Away on 10.02.19 at 10:03

The Venezuela comparison is a joke.

I’m pretty pro business, and conservative..but this comparison is hilarious.

MF

No Joke, my dad and a lot of people from my town worked there in the 50’s and 60’s, life was good and they did quite well. Argentina was good too around that time I believe.

#188 Answer Nothing Illegal on 10.02.19 at 2:09 pm

#182 Bdwy – At the end of working on the job at hand, its was a lot of fun carrying home a briefcase full of cash earned to pay some bills.

#189 SoggyShorts on 10.02.19 at 2:35 pm

#183 Eks dee Siple on 10.02.19 at 1:35 pm
#177 Tater: If you can’t find people for a job at a certain wage, it means the wage is too low.

I can’t believe I agree with Tater? But exactly correct. Mattl suffers from an incurable condition endemic to most conservative “thinkers”: economic myopia. The rest of Canada is exactly like where he lives, apparently. And everyone’s situation is exactly like his.

**************************
There is a limit though, and once you reach it the job simply disappears or becomes automated.
E.G. Someone taking your order at Mcdonalds was worth $10/h since the restaurant could pass that cost onto the customer and they would still buy burgers.
Once raised to $15/h the needed increase in cost would have put off the customers so 80% of Mcdonalds cashier positions went automated.
(note: 10,15, and 80 above may not be accurate depending on your province but you get the point)

Same for Mattl’s lawn mowing/snow removal example: if the prices&wages get too high people will just do it themselves and jobs in the maintenance industry either simply disappear or only companies that can replace workers with more efficient machines continue.

As for the charge of “economic Myopia” does it really matter where minimum wage will get you a decent living? As long as it’s a decent city I say it’s a valid point- if you can get housing clothing transportation and food with some money left over on min wage then it is working. A “living minimum wage” in the most expensive cities in the country isn’t a very reasonable goal IMO.
Admittedly I’m biased as I’ve moved a LOT for better work&living conditions so I find complaints like Stan Brooks’ about how hard it is in the GTA to be ridiculous.

#190 Blacksheep on 10.02.19 at 2:44 pm

Dog breath #33, Past the peak # 147,

Watched the Vids from Zero Hedge too, then took Tony’s info and searched independently for graphs/proof, in attempt to discredit his findings. It doesn’t take long to find graphs with an alternate (usually longer) timeline than those used by pro climate change camp, which 100% support his argument. The sources for the documentation found comes from organizations that are internationally considered reliable: USDA, NASA, NOAA, IPCC.

This whole exercise in independent self education, took about 45 minutes.

Climate change is being used as a tool to keep third world countries from developing (the West doesn’t need more competition) while controlling/taxing the crap out of the West.

Greta’s handlers and their ilk, should be ashamed.

Using children as pawns from all over the world, watching them freak out over what has now become religion, not science, is disgusting. This just confirms, Carlin was right, “half of them are stupider” ect….

#191 Mattl on 10.02.19 at 3:01 pm

Stan – you’ve lost your mind. If my home and money is worthless, I’d hate to be in your position (no money no home).

#192 crowdedelevatorfartz on 10.02.19 at 3:06 pm

@Flop and Sailing Away !
Sorry fellas.
Just makes my teeth grind when I see young, healthy, clean, well dressed kids begging with what is probably a stolen dog for “spare change” with all the work out there.
OR they’re sitting there bored and TEXTING………

There are enough social agencies to fall back on and the amount of “Help Wanted” sign EVERYWHERE in Vancouver.

The gall of some lazy turd asking me to GIVE them money……
f that.

#193 jess on 10.02.19 at 3:07 pm

Samuel Shaw was a Revolutionary War naval officer who, along with Richard Marven, were the first whistleblowers of the infant United States.[1] As a whistleblower, Shaw was instrumental in the Continental Congress’ passage of the first whistleblower protection law in the United States.[2] Shaw, a midshipman, and Marven, a third lieutenant in the Continental Navy, were moved to act after witnessing the torture of British prisoners of war by Commodore Esek Hopkins, then Commander-in-Chief of the Continental Navy.[3] Shaw and Marven were both from Rhode Island, as was Hopkins, whose brother was Stephen Hopkins, Governor of the new state, and a signatory to the Declaration of Independence. For reporting the misconduct of the Navy’s highest officer, Shaw and Marven were both dismissed from the Navy.[4] Worse still, Hopkins then filed a criminal libel suit against Shaw and Marven in the Rhode Island Courts.[4]wiki

https://www.theatlantic.com/ideas/archive/2019/09/what-first-whistle-blowers-taught-america/598738/

The commemoration of July 30th as National Whistleblower Day recognizes the passage of the first ever whistleblower law that date in 1778, as well as the crucial role whistleblowers play today in defending our nation from waste, fraud and abuse.

Sen. Chuck Grassley tells the audience of whistleblowers and their supporters that the Senate Whistleblower Protection Caucus thinks they are important and retaliation will not be tolerated at at first Congressional celebration of National Whistleblower Day. Photo credit: Tom Wolfe.Senator Chuck Grassley of Iowa, one of two keynote speakers for the event told the audience “Experience shows us that silencing patriotic people that we call whistleblowers, just allows wrongdoing to fester and spread. By pointing out problems, whistleblowers foster transparency and make it possible for their organizations to do better. Transparency brings accountability.”

Grassley went on to say, “With their words and actions, leaders have to make clear that whistleblowers are important and retaliation is not tolerated. For many years I’ve asked the President of the United States to have a Rose Garden ceremony honoring whistleblowers. Because we need to have it from the top of bureaucracy to the lowest levels of bureaucracy.”

https://www.whistleblowersblog.org/2015/08/articles/national-whistleblower-day/senators-honor-whistleblowers-at-first-congressional-celebration-of-national-whistleblower-day/

#194 SmallTownSteve on 10.02.19 at 3:11 pm

After this mess of an election one can’t help but think Alberta may have had enough and just separate from this socialist shithole called Canada. Can’t seem to build a pipeline east or west, might as well keep their 50billion/ year instead of handing it over to leeches hellbent on destroying us anyway.

#195 MF on 10.02.19 at 3:12 pm

67 Don Guillermo on 10.02.19 at 11:42 am

Okay but that still doesn’t mean Canada can equal Venezuela any time soon. Totally different economies, culture, climate, demographics, and yes government. Never say never but it’s unlikely.

MF

#196 Incubus on 10.02.19 at 3:45 pm

Garth, you should speak about exit strategies for people with assets that will be eventually taxed to finance all these promises.

I know the Bahamas, Grand Cayman.
I guess there are more.
Actually you could set up a business for canadians who wants to relocate in a tax paradise.

It is getting absurd and I dont want my saving confiscated.

#197 Dups on 10.02.19 at 3:46 pm

This is a good post. Garth thanks for showing us all the nuts and bolts of what is at stake on this election.
Much appreciated!

There are way too many government workers, retires, stay home moms, and students in our country. One day we will all tax each other and pretend to have an economy based on tax pyramids we are bloating daily.

I agree 100% with your quote: “The problem today is not that a few people don’t pay enough. It’s that most people spend too much, save too little and expect a lot.”

Basically most feel entitled and stretch themselves beyond their means just to look better than their neighbours, siblings, friends, cousins, or parents. Do they really need a 5 bedroom home or that 45k car…? Have you seen the new homes being built lately…huge mcmansions that takes 3 days to clean…why!

#198 Mattl on 10.02.19 at 3:56 pm

#183 Eks dee Siple on 10.02.19 at 1:35 pm
#177 Tater: If you can’t find people for a job at a certain wage, it means the wage is too low.

I can’t believe I agree with Tater? But exactly correct. Mattl suffers from an incurable condition endemic to most conservative “thinkers”: economic myopia. The rest of Canada is exactly like where he lives, apparently. And everyone’s situation is exactly like his.

————————————————————

Hardly. And I agree those jobs are obviously outside of market – doesn’t negate my point.

My opinion – it is very easy for most able bodied Canadians to earn enough to live comfortably in most parts of Canada. These are relatively good times for job seekers. Feel free to prove me wrong.

I think what most people consider living wages is a new car, a nice apartment, dinner out, vacations. I have empathy for folks that are struggling – and lots are, for reasons outside of their control – but we’ve lost sight of what struggle really is.

It is not having to work for 13 bucks an hour at Dollarama, a bus pass, all the food you can eat, and living with a roomate in a basement suite in Surrey.

There are 100’s of millions of people around the world that would kill for that quality of life. Want more? Earn it.

#199 crazyfox on 10.02.19 at 4:18 pm

“Trudeau will finance that with debt. Scheer will cut foreign aid by 25% to find the dough.” – Garth

And Scheer will also finance that with debt. Garth, you make it sound as though the Cons will not run deficits. They will. I doubt that there will be more than 3 or 4 billion between Libs/Cons at the end of the day. Lets not forget that small fact and Scheer has notable problems rolling out the truth as evidenced by this story:

https://www.msn.com/en-ca/news/elections/baloney-meter-andrew-scheer-says-canada-sends-foreign-aid-to-rich-countries/ar-AAI9QYP?ocid=ACERDHP17

He just can’t help himself so why should we? Right, the rich will get the $$$. Scheer will find a way or so, we are led to believe.

Listen, the rich can bemoan new taxes on the rich like is somewhat implied here:

“The lefties who huddle for warmth in the corners of this blog, burning old posts, will think that’s just fine. They reflect the common political wisdom today of justified income redistribution. We’ve all read the dollar-is-a-dollar arguments claiming people collecting investment income should be taxed like the schmucks on the factory floor – even when they own the factory. But the danger in that is immense.” – Garth

It’s almost as if you are saying there is no wealth inequality in this country and implying that the status quo Liberals) will increase taxes that will be levied on an individual’s ability to earn (and therefore shrink tax revenue). Of course, neither of these arguments are true for the general public (at least for now). Oh and I like how you try generating hype over taxes that “could go up” if the status quo remains. Taxed cap gains, dividends, they could go up! And the status quo precedent for that with T2 is?

And this argument: Half of people (more than half – 53%) have no savings, no disposable income and live paycheque-to-paycheque. Almost 60% carry credit card debt. A third can’t pay what they owe. Most indebted is the GenXer cohort. Close to 40% have no retirement savings and half say they can’t put aside anything – and these are people in their 40s and 50s. Yikes. The number who say they’ll run out of savings before they croak is 69%. Women are a mess. Almost 60% have no disposable income and 43% no retirement savings. And, yes, females live longer and need more.”

So the Libs promise federal income tax doesn’t start til 15$ G’s instead of $14,500. When’s the last time the lowest income base had a bump. Anyone? It’s got to be a decade or more. But we should complain that it’s too much when its rolled out during an election? When’s the last time OAS had a bump. I mean, cat food’s not getting any cheaper. How is a government supposed to tackle income inequality, by taxing the poor? “They don’t have it!”

The argument that the rich don’t have enough…. it seems to work doesn’t it so we’ll bitch about debt as it comes because $ has to come from somewhere right, and if a govy comes up with designer taxes that hit the frivolous spending of the rich, by all means complain and vote for the party who doesn’t care about widening wealth income inequality gaps. Oh, we’ll mention gaps when the election is past as though we get it but when us rich folk have to suck it up, vote for the party who look after the rich and basically borrow the same to do it. What, we get to watch a housing bubble inflate again? We can’t have that but it will help me so…

It’s just classic isn’t it? At the end of the day we don’t vote for the party or leader or rep that’s best for Canada or its people or the systems or the planet, we vote for what is best for me. I, me, mine, its never changed and that’s what is so wrong with democracy. People just can’t get past themselves. Is there a better system? Hitler never polled past 37% when elections mattered in pre WWII Germany so you tell me. Trump is polling that now… you tell me. The general public sure can pick ’em. If Democracy is a better political system, there’s large room for improvement.

And this thing, government subsidizing failure. That’s what social programs do. Public education and universal healthcare literally save us from ourselves. Close to 70% of our tax dollars are spent there…. and what, the govy shouldn’t subsidize failure anymore, society shouldn’t have it? Imagine for a moment, just one moment if the government didn’t have our backs with the bare bones basics.

If we want a truly productive nation firing on all cylinders economically, we have to spend money on health care, education and infrastructure. We don’t do this and the nation ends up with a bunch of stupid, sick people who can’t get around. This, dear readers, is how nations crumble (engineered by the rich becoming so cheap, they forget what gives their money value). Call it the nanny state, call it human failure, call it whatever we like, its an election year in a nation that has that free right to speak our minds however empty they may be but above all, we had best call subsidizing human failure necessary or we revert back to the age of aristocracy and serf’s where the entitled has no meaning of the word “steward”. After all, we all find out what we truly “own” when we die. Or do us rich think we’ll live forever or just longer (there’s some truth to the last part). At some point reality has to hit home even if its as late as the afterlife and we discover however easy or hard that it was all just on loan and we were “born into it”. “I did it all myself!” It’s not all that hard to fathom how the privileged few can fancy themselves as Gods of men. It’s easy, just make stuff up.

Elections. Western democracies (every nation is doing it, not just us) borrowing their brains out with no end in sight full of well known groups all claiming the “superior” high ground, the electorate in mass not giving a wit for anyone but themselves… another classic example of the weakness of humanity laid out at everyone’s feet, a spectacle in itself. The blind leading the blind, the deaf speaking to the hard of hearing and the dumb leading the way. It’s not hard to want the reflections of a different mirror.

The reference was to funding the tax cut only. There, that saved you 800 words. – Garth

#200 Jesse on 10.04.19 at 9:58 am

What’s causing the rise of socialism in Canada? I have never seen it this popular. If you tax the wealthy, or the poor risk takers (the entrepreneur class) they will leave the country, and take their ideas and businesses with them leaving a poor, Soviet-like wasteland behind. Be careful what you wish for Canada.