Compliance

By Wednesday afternoon – for the first time in a few years – US interest rates will be lower than those in Mapleville. Our central bank is universally expected to hold the line and make no cut. The Fed’s widely anticipated to trim once again by a quarter point. That’ll make three.

Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers “don’t have a clue.” He wants yuge cuts to the cost of money, claiming the Dow (now fluttering around record territory) could be 10,000 points higher if only people listened to him.

Ironically the Fed is cutting because of Trump’s trade war, which Scotiabank this week estimates is responsible for willowing out the US economy. Other than the spitting match with Beijing, things are kinda boffo in America lately. Unemployment at a 50-year low. Bidding wars in major cities. Acceptable corporate profits. Stock markets arcing to new heights. Girl astronauts getting their own suits. Tesla making big bucks. And US households (unlike us) are carrying far less debt than a decade ago, with a savings rate of 8.8%. Yes, peeps, that’s eight times higher than ours. Americans actually save more than $1 trillion every quarter, a lot of it flowing into 401k retirement plans and Roth IRAs (like our TFSA).

So yesterday’s dreary post detailed how everyone who does not read this blog is likely pooched. Debt is rampant. Cash flow is sucked off by servicing costs. Savings are minimal. Seven in ten families could not afford a new fridge if they had to pay cash for it. (You can charge one at The Brick and take 36 months to pay, but if you miss one payment, interest applies. It is currently “RBC prime + 33.29%. Yes, you read that correctly.)

Canada can’t lower its bank rate because citizens have no discipline. Just like their leaders. Cheap credit has inflated houses, lured millions into owing trillions and wiped out retirement savings. Given the election results we now face significantly increased public borrowing, more upward pressure on real estate values and, sadly, increased tax on the few (not the many).

If you think people with solid incomes and accumulated wealth should pay more, please enter the door on the left. Remove your pants, then wade through the vat of fire ants. Thank you.

For the rest of you, tax avoidance is critical. Yesterday’s blog made reference to those who have small businesses, professional corps, holding companies or other structures in which you earn cash flow. The Liberal plan was revealed last year when Bill Morneau stated clearly the tax advantage business owners enjoy should be (and will be) eliminated.

This led to the end of ‘income-sprinkling’ which means no dividends hived off to your spouse or kids. It also established a lid on the amount of invested retained capital a corp can have before taxes turn punitive. So now if your company kicks out more than $50,000 a year in passive income (earned through investments, not operations), there’s a target on your back. That equates to roughly a million in retained earnings. For every dollar above this amount earned passively, the corp loses $5 worth of income at the reduced small business rate. It sure adds up.

Since the precedent has been established, it’s now a minor move to amend the numbers. The next budget could chop that starting point to $35,000, or less, for example.

There’s a good chance the Libs (and their new friends) will target professionals and small businesses once again, since most people think they’re rich and screwing the system. So it’s probably a bad idea to be accumulating capital inside a corporate structure, where it’s a sitting duck. Also understand that paying yourself in dividends (rather than taxable salary) does not really save any tax. That’s because your corp pays tax at its rate, then the dividend is taxed in your hands, and the sum of the two equals the same tax you’d generate taking the income as salary.

But by collecting dividends (and not salary) you earn no RRSP room – which is a shame since that’s probably the safest place to keep money these days. Plus, when you take salary your corporation can write it off earned income, reducing or eliminating corporate tax. Given what’s likely to come, this is a worthy strategy. If your accountant doesn’t understand this and tells you to go for divvies, eschewing a fat RRSP for corporate savings, get a new one. It’s called compliance. By law your accountant works for the CRA.

Over the coming weeks, along with fetching canines and the gratuitous demeaning of moisters, wrinklies, people with GICs and anyone wearing a tattoo, this blog will focus more on tax avoidance. Until Peter MacKay saves us.

146 comments ↓

#1 mitzerboyakaQueencitykidd on 10.29.19 at 4:49 pm

My tattoos are jail tattoos is that okay

#2 Sask to AB on 10.29.19 at 4:56 pm

Thank you for this post, Garth. Looking forward to more on tax avoidance in the future.

F56AB

#3 Tater on 10.29.19 at 4:57 pm

“Tesla making big bucks.”

Garth, Tesla has lost about 6 billion dollars as a public company. This quarterly profit was 143mm on 6.3 billion in sales. This is a deeply broken business.

#4 The Wet One on 10.29.19 at 4:59 pm

Since I’m a slow learner, could someone please spell this out for me please:

“Cheap credit has …. wiped out retirement savings.”

Plus be sure to type slowly so I can follow your line of reasoning.

Thanks!

Sure. More credit means bigger credit payments, less savings and an erosion in retirement accounts. Meanwhile hundreds of billions in GICs and HISAs have suffered a collapse in interest earned. And don’t even ask what plunging bond yields have done to pension plans. – Garth

#5 Paddy on 10.29.19 at 5:06 pm

A vat of bullet ants would be a more suitable punishment for those left wing turd nuggets…, their sting is 30 times more painful than a wasp, and lasts an excruciating long time.

#6 SunShowers on 10.29.19 at 5:06 pm

People with solid incomes and accumulated wealth should pay more.

Hope this helps!

#7 not 1st on 10.29.19 at 5:07 pm

So basically a guy with no economic training turns the US into a financial monster.

And another guy with no training at all drives a G7 country off the cliff.

#8 yvr_lurker on 10.29.19 at 5:11 pm

I’ll take the door with the fire ants. They won’t bite me I am way too sour…

#9 Raging Ranter on 10.29.19 at 5:16 pm

Please let it be Rona Ambrose or Lisa Raitt and not Peter MacKay.

#10 Dave on 10.29.19 at 5:16 pm

Tax avoidance – provide services in cash. How do you think all those residential construction workers all drive fancy cars and have mega mansions!

Collect rent – half cash and half legit.

Marriage Advice – get married but dont sign anything legal. Have separate addresses on your license. Then when the kids come – wife will go on social support. Govt will pay free big $$$ to keep those kids fed and clothed. Huge savings.

Sadly the above is all true, if you dont do out the standard system, you won’t get ahead in life. Choice is yours – good luck with rrsp and tfsa

Tax avoidance is legal. Tax evasion means you fry. – Garth

#11 Irwin on 10.29.19 at 5:18 pm

More mindless Trump bashing.

Have you ever thought for two seconds where markets would be if HRC had won? No, didn’t think so.

My guess is that SPX would be around 1,600 now instead of 3,000. And if Trump loses next year, 1,600 is exactly where SPX is going. Mark it down fools.

#12 Smartalox on 10.29.19 at 5:32 pm

But isn’t Bill More’n’owe’s Small business tax law just intended to prevent those business owners from hoarding cash in their companies, to advantage?

It’s one thing if your small business is stockpiling cash to finance expansion. In that case, paying tax at the small business rate makes sense, but once you expand, you’ll (eventually) pay at a higher rate for larger corporations.

But if you’re using the structure to ‘game’ the system, to earn income with low tax rates, NOT adding employees, or expanding goods and services, while also writing off living expenses against ‘corporate’ income, sprinkling ‘dividends’ to non-productive family members to help them avoid paying taxes on money that they do little to earn, these are not the original, intended uses of this type of corporate structure.

Is this not considered to be ‘closing a loophole’?

A company that uses a portion of earnings to invest in buying raw materials, conduct R&D, pay for marketing, in addition to paying salary, puts that money back into the economy, employs more people, and makes more taxpayers.

A ‘company’ composed of one person, who provides service in the form of mostly intellectual property, and who retains cash for income purposes, does not buy raw materials, does not invest in R&D, marketing, or ’employ’ many other people, except possibly those relatives who receive ‘sprinkled dividends’ instead of earning income of their own.

#13 The Wet One on 10.29.19 at 5:36 pm

“Sure. More credit means bigger credit payments, less savings and an erosion in retirement accounts. Meanwhile hundreds of billions in GICs and HISAs have suffered a collapse in interest earned. And don’t even ask what plunging bond yields have done to pension plans. – Garth”

Thank you very kindly for typing slowly. It really helped me follow your line of reasoning and I now understand.

Yay me!

#14 marcus on 10.29.19 at 5:36 pm

In the end ……. they will come for your retirement accounts. You will say that is not possible and will never happen. Never doubt that this is an absolute eventuality. They believe that the productivity of a nation is theirs. You are just the useless eater that generated it.

#15 Paul on 10.29.19 at 5:38 pm

Sub prime payday loans 36% plus 2% bank rate in the States. A lot people hurting!

https://finance.yahoo.com/news/america-middle-class-getting-hooked-100001049.html

#16 Stan Brooks on 10.29.19 at 5:40 pm

But by collecting dividends (and not salary) you earn no RRSP room – which is a shame since that’s probably the safest place to keep money these days

Yep, that RRSP is safe for now. Give it 4-5 years folks, give it 4-5 years and we will talk again.

The french villa guy is clear in his intent to destroy small businesses and only leave the big corps around.

Think about that advice: To pay salary from the small business is now beneficial from tax perspective. Take all the risk, but no reward. Nice.

The elite is safe, the rest is plebs with no right to run businesses, that right is reserved for his friends at the Empire Club.

I am really happy that the homo ignorantus-es around will enjoy his horse face for 4 more years, at least.

If being stupid hurts there would be not many left alive around.

Cheers (on Irish today)

#17 Graeme on 10.29.19 at 5:42 pm

Bah it’s not the trade war. There’s too much debt now that can’t be sustained without ever lower rates. Peeps are making interest payments with borrowed money. The survey you mention bears this out. Everybody is flat broke now! This is a gift baby! I knew this two years ago when I went variable. Go ahead, lock-in and lose cash if you want but I’m telling you rule #1 of Ponzi finance is rates will always be lower. Always. haha carpe dism!!! :P

#18 PA on 10.29.19 at 5:43 pm

Agree generally with Garth, but there are atleast two cases where dividends over Salary may come in to play. First when you have reached max CPP (ie. 39 M’s) after which you no longer can move the CPP needle by salary (you can move the CCP needle with time). So salary is costing you at 5k in unrecoverable costs. Second, a Salary over the Max RRSP limit of 14.7K (SX18% =26,500) doesn’t gain you any more advantage. Oh and there you have it—the government limit for saving for retirement.

This artifically low RRSP limit really is distasteful for those who support themselves. The problem with the GoC solution (limit on the RRSP as well as the TFSA) assumes everything is jolly good in the employment market. Unfortunately it’s a huge penalty to pensionable workers when it goes wrong. Think of those Canadian who (no fault of their own) lost pensions because the sponsoring companies went under (say Sears, Nortel and a host of others). That nasty PA value (GoC contrived) applied RRSP for to private pensions proved to be a crock. Private pensions should never be equated that way to GoC DB plans that are backed by the tax payers. When these private pension disappeared so did any chance of making up pension dollars for retirement.

The other problem these limits wrt CCPCs is it assumes your CCPC has been equally successful year in and year out rather than the extreme ups and downs that occur between any given year. These limits makes it very unfair to create a pension similar to DB pension provided to GoC workers, since the capital a single individual must gain is significant….say 2M for a middle class pension equalvent.

#19 Loonie Doctor on 10.29.19 at 5:47 pm

With the passive income rules, even without the risk of further attacks on corps, an RRSP and TFSA in addition to the corp is usually the way to go when you look long-term. I made an online simulator that shows this. It has tax calculators running in the background and makes some neat charts. Only runs well on a real computer or tablet. Working on adding in some of the nuances (like ON and NB not following the federal lead on the passive income tax and PQ requiring 3+ employees to get any small business deduction).

https://www.looniedoctor.ca/corporation-vs-rrsp-vs-tfsa-calculator/

On a more personal note, we have decided to downsize and go part-time as our response to the continued focus on targeting those who earn high incomes or save/invest more than the sanctioned RRSP/TFSA amounts. Best to blend in rather than sacrifice yourself trying to over-achieve beyond a level that you simply find intrinsically rewarding.
-LD

#20 Stan Brooks on 10.29.19 at 5:50 pm

#12 Smartalox on 10.29.19 at 5:32 pm

Warren Buffet has over 122 Billion in cash in Berkshire Hathaway.

Google has 117 billions cash on hand.

Apple has 102 billions.

Microsoft has 137 billions.

Why? For investments and acquisitions.

Why should big businesses be allowed to hoard cash and investments and small business not allowed to invest and accumulate money for purchase of equipment/acquisitions?

Berkshire Hathaway is a holding/investment company.

Why should Joe Schmoe not be allowed to do it?

Simple, because some are connected and some are doomed.

Game the system? You must be the french villa guy himself, I rarely see people that stupid or ignorant.

Go away to France.

#21 Wait There on 10.29.19 at 5:52 pm

I was thinking that someone would come along and save us. Then I analyzed the situation.

With the added debt and increasing rates in the future years, the debt servicing burden will be horrendous.

Next in 4 years, you will like have at least 1 million more newly minted citizens. Hardly any newly minted citizens lean Blue. So….. Now and….

More than 2/3rds of all immigrants settle in the GTA or Greater Vancouver. What you see now, is what will remain. Except that places like Aurora Oakridges that narrowly remained blue will likely be overcome with the diffusion of the red who moved out from the GTA. The borders will increasingly turn pink then red.

The Bloc will remain as strong in Quebec because any legislation or building of pipelines will bias the vote to stay Bloc.

The Blue Party does not have a hope to recapture a majority in Canada EVER. The best we can hope for is freezing the spending.

In 5 years the demand for serving Health Care for the Boomers will be felt very strongly. More taxes again.

Prepare for Mini Venezuela not quite Venezuela 2.

As soon as the masses feel hurt from debt, too many are in pain and the government will have to step in. Confiscation time.

Toast, hooped, or whatever. This is the new Canada to come. Unless we come to our senses and we hit luck and oil spikes to $100 a barrel. Otherwise the productivity in Canada is sucking badly. Without productivity we cannot increase real wages. Than Benny guy at the bank is so full of it, he never mentions productivity. Don’t forget by then all corporations will be bad and they will have left and many CCPCs will close and the people gone.

Think about this. Alberta and Saskatchewan separates, the financial sane moves there. Who will the ROC tax?

It’s a crazy scenario but it could be possible. Best to move assets into Alberta and Saskatchewan now or else there could be an exit tax.

#22 Always Lurking on 10.29.19 at 5:54 pm

#10 Dave gets it.

I know way too many people who don’t claim all rent as income – brag about it. I know at least one “couple” that are essentially married but still manage to claim benefits for a “single mother.” I know a lady on AISH who lives in Egypt 6 months out of the year, presumably like royalty. I even know a lady that somehow convinced TPTB that her kids have autism so that their hockey equipment would be covered (basically starved the children ahead of meeting with service workers so they’d be more zonked-out). I know a guy that tipped me to a scam him and his friends pull whereas they all pool their money and take turns “owning” it to apply for credit products etc – apparently you can get a better deal than you’re average Joe if you have $250,000 sitting in your chequing account. Hell, I know rural gas-stations that will ring up any groceries as fuel – no problem.

I’m not sure how much is bragging, rumours, and bullshit. But financial tom-foolery seems rampant. I propose a snitch line & financial incentive for turning in cheats.

Those of us playing by the rules feel like suckers.

#23 Stan Brooks on 10.29.19 at 5:59 pm

#4 The Wet One on 10.29.19 at 4:59 pm
Since I’m a slow learner, could someone please spell this out for me please:

“Cheap credit has …. wiped out retirement savings.”

Plus be sure to type slowly so I can follow your line of reasoning.

Thanks!

It also means that this new credit drives prices and inflation/cost of living up and as a result you need more money to live on in retirement.

Plus your pension is generally indexed by a small fraction of the real inflation.

And of course close-to-zero-soon-to-be-negative return bonds are mandatory as a large portion in each pension plan/fund.

Capishe?

#24 akashic record on 10.29.19 at 6:00 pm

Tax avoidance is legal. Tax evasion means you fry. – Garth

I would like to learn tax avoidance from the tax avoidance experts who deal with T2 and “Bill More’n’owe’s” private wealth management.

I doubt they are cutting their own throat while bleeding others.

#25 not 1st on 10.29.19 at 6:07 pm

Peter McKay will just be Ford 2.0. Sent in to clean up a big mess then instantly hated and mess continues to grow because people don’t want to deal with it.

Canada was younger and more productive and resilient when the debt was slayed 25 yrs ago. It wont happen this time with the snowflake socialists we have.

#26 Graphics Girl on 10.29.19 at 6:07 pm

If the Libs want tax fairness, then they should remove income splitting and CPP survivor benefits which unfairly disadvantage single people. Couples are already saving money by living together and splitting expenses. Why should they get preferential treatment?

#27 BC Renovator on 10.29.19 at 6:09 pm

Great post, thanks

#28 Doug t on 10.29.19 at 6:12 pm

Socialism it’s the latest craze with the kids

#29 FreeBird on 10.29.19 at 6:13 pm

If 40% of Canadian families now pay no net income tax. And the top 20% of income-earners now foot 70% of the country’s bills (small number of 1%ers (272,600) pay 18% of all taxes) and I’m guessing this incl small business owners/self employed then how are the later screwing the system? Not logical. What about those in the bracket above 1%?

https://www.google.ca/amp/s/www.greaterfool.ca/2019/02/10/milk-the-rich/amp/

#30 Approaching Retirement on 10.29.19 at 6:14 pm

#6 Sunshowers:
People with solid incomes and accumulated wealth should pay more.

Hope this helps!

________________________

This worries me. If the is the predominant belief of the sheeple, will people like me who don’t buy Starbucks every day and don’t buy Audis, but instead save for retirement, in the end be punished.

This isn’t right.

#31 Oscar on 10.29.19 at 6:15 pm

“Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers “don’t have a clue.” He wants yuge cuts to the cost of money, claiming the Dow (now fluttering around record territory) could be 10,000 points higher if only people listened to him.”

I always love your writing but this is one of your best! If only it weren’t true!

#32 Cottingham a bargain on 10.29.19 at 6:16 pm

#6SunShowers on 10.29.19 at 5:06 pm
People with solid incomes and accumulated wealth should pay more.

Hope this helps!
—————

Why so losers like you who evidently
have nothing nor the capability of getting it for yourself by earning it can get more for free?

Socialist loser

#33 tccontrarian on 10.29.19 at 6:30 pm

#11 Irwin on 10.29.19 at 5:18 pm

More mindless Trump bashing.

Have you ever thought for two seconds where markets would be if HRC had won? No, didn’t think so.

My guess is that SPX would be around 1,600 now instead of 3,000. And if Trump loses next year, 1,600 is exactly where SPX is going. Mark it down fools.
———————————————-

You’re being optimistic with the 1,600 SPX. May dip below 1,000 – at least in a spike down, and I think it will happen with or without Trump. But we got some time yet … should give the ‘smart-money’ ample time to build strong short positions. Late 2021/early 2022 is my guess – and not all sectors will bottom simultaneously.

Now youz all bin warned (as in Elizabeth ‘Warned’ LOL)

tcc

#34 AGuyInVancouver on 10.29.19 at 6:39 pm

#7 not 1st on 10.29.19 at 5:07 pm
So basically a guy with no economic training turns the US into a financial monster.

And another guy with no training at all drives a G7 country off the cliff.
_ _ _
The only Financial Monster in the USA is their $1 Trillion a year debt. With his mindless blathering about the Fed, Trump has done more to harm sensible central bank policy than any other figure in recent memory. At least a big chunk of Canadian debt goes to infrastructure, in the USA it is squandered away on the military industrial complex.

#35 Shawn Allen on 10.29.19 at 6:39 pm

Truth versus made up facts

Clearly, truth has no special place in the chat rooms of the nation.

Anyone can post any lie they want.

#36 Reximus on 10.29.19 at 6:47 pm

#11 Irwin

why? was ending capitalism part of her platform

#37 akashic record on 10.29.19 at 6:49 pm

“Cheap credit has …. wiped out retirement savings.”

Plus be sure to type slowly so I can follow your line of reasoning.

Thanks!

Sure. More credit means bigger credit payments, less savings and an erosion in retirement accounts.

Low interest rate didn’t put gun at our head, forcing us to load up more credit. Cutting my original mortgage rate to half helped to accelerate my repayment. Low rate comes also handy to clear the kid’s debt to acquire post-grad education and start own practice. It didn’t ruin our investment, either.

Debt creator politicians will hit us with higher taxes to pay for their (re)election, insane real estate and housing cost will hit the kids.

The best overall wealth preserving family financial strategy might be to liquidate and transfer all our assets to the kids, and join the 40% untaxable, savingless, dipper class. Let the socialist millennial bailout shower us with free money, for the remaining years before climate change kills us all.

#38 Sam on 10.29.19 at 6:51 pm

US citizens don’t invest in the chronically underperforming TSX . Canadians can often have as high as 50% maple

Good luck

#39 Trumpocalypse2019 on 10.29.19 at 7:01 pm

Pure chaos coming at us at 1000 mph.

More than just zombies to worry about this week!

#40 MF on 10.29.19 at 7:02 pm

#21 Wait There on 10.29.19 at 5:52 pm

-Disagree strongly.

We don’t know if new Canadians automatically vote red…but we know their children most certainly do not. Case in point was Harper, who captured the GTA vote in 2011. A strong leader wins votes, and the blues this time around did not have one. Scheer lost. Trudeau did not win.

Your talk about Alberta and Saskachewan is pure fantasy that I hope never becomes reality. In all likelihood, capital and people would flow outward and not inward if there was a “wexit”. We saw that with Quebec in the 1970’s so we have a strong precedent.

MF

#41 Penny Henny on 10.29.19 at 7:03 pm

Projection: YVR real estate drops 40% in sales and 20% in price by the end of 2017. Toronto housing sales reduce 10% to 15%, prices decline 5-7%, then enter a long corrective phase. Smaller markets suffer disproportionately. Nationally prices reduce 15%.

This assumes the economy stays about where it is, oil doesn’t drop to thirty bucks, the US does not shred our essential free trade agreement, the loonie remains above 70 cents, governments stop diddling with housing regs and Adele plays no more concerts at the Air Canada Centre for at least fourteen months.-So so sad author, Nov 18, 2016

,,,,,,,,,,,,,,,,,,,

Only when one can admit to their mistakes can they learn.-penny henny

#42 Today on 10.29.19 at 7:03 pm

Hi Garth. I feel the same as Loonie Doctor #19.

What are your thoughts on the social impact of constant taxing of earners and small business owners?

Won’t it backfire to some at some point? Decentivize earners?

Today’s post rang true in my own life. I was recently offered a $250,000-300,000 sales job. This is the highest offer I have ever received so it was tempting. However, it wouldn’t be a walk in the park or stroll along the wharf (Lunenberg version :-))

For this salary, this job offer is very, very high stress, demanding, and no work-life balance so the salary is warranted.

For a moment I thought about it but the issue that became the deciding factor, quite quickly, was the tax rate at that salary level. For the amount of work I’ll have to do it wasn’t worth it to me to give at least half to the government. This is the first time I have felt this way. I’m not wealthy because of helping family but I’m comfortable and prefer to live simply, by choice.

Instead I will stay as a freelancer at approximately $80,000 yearly income. Less money but huge value in no stress, time with family & friends, and the ability to chose the clients I want to work with.

In fact, I have no incentive to even take on more clients that are referred to me because frankly I’m tired of paying such high tax year after year.

This was a profound shift and has me thinking about the loss of knowledge capital.

What happens when people with wealth of a posteriori knowledge disengage from the economy? How does a country capitalize on all this experience if people just stop engaging.

I’m looking forward to your posts about tax in the next weeks.

Thanks for educating the blog dogs!

#43 akashic record on 10.29.19 at 7:03 pm

Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers “don’t have a clue.”

The difference between Bush Jr. Obama, Hillary, Bernie, Biden, Warren, etc. is that they don’t dare to question the full, uncontrolled wisdom and authority of the bankers and the Fed, who delivered the great financial prosperity of 2008, which allowed the introduction of the super low interest rate, for everyone to prosper.

#44 Juan Gretzky on 10.29.19 at 7:09 pm

God help us all if Peter McKay is the saviour. That guy’s dummer than Trudeau.

#45 MF on 10.29.19 at 7:09 pm

#20 Stan Brooks on 10.29.19 at 5:50 pm

***SHIVERS***

**GULP**

*HOLDS NOSE**

I…agggree with….you.

There I said it. That hurt.

MF

#46 Dog Breath on 10.29.19 at 7:11 pm

Tax avoidance is for wussies Let’s have some advice on tax evasion!!

#47 SeaLevelGoing Up on 10.29.19 at 7:11 pm

Garth, do you think reports such as this one reporting raising sea levels and impact on coastal line on Nature Communications may have an impact on real state prices?

Paper:
https://www.nature.com/articles/s41467-019-12808-z

Interactive map:
https://coastal.climatecentral.org/map/11/-123.0358/49.1968/?theme=sea_level_rise&map_type=coastal_dem_comparison&elevation_model=coastal_dem&forecast_year=2050&pathway=rcp45&percentile=p50&return_level=return_level_1&slr_model=kopp_2014

#48 crowdedelevatorfartz on 10.29.19 at 7:16 pm

@#39 Trumpocalypse2019

I was beginning to wonder if the exit tunnel to the bunker had collapsed….

#49 Smartalox on 10.29.19 at 7:32 pm

Stan Brooks @ #20:

I don’t think that it is realistic to compare LARGE corporations like Berkshire Hathaway or Microsoft to anything claiming to be a ‘small business’ for tax purposes.

Up until Trump came along, those corporations were taxed at a flat rate of 35% – it’s why lots of large, multi-national corporations that originated in the US declared little profit in the US (but still claim big expenses) and hosted profits in jurisdictions with lower tax rates. Trump lowered the US corporate tax rate to 21% from 35% in an effort to 1) get those companies to repatriate profits, and 2) invest those profits in expansion inside the US.

In the US, a Sole proprietor (small business) faces a tax rate of 13.3%, not 21% and certainly not 35%.

By comparison, Service Corporations (a business founded on the skill or reputation of one or more of its employees) pay a tax rate closer to 26%, but the US IRS dictates what a ‘fair compensation’ should be, and charges income tax on 80% of that, too, on TOP of the tax paid by the corporation on its taxable income.

In Canada the CCPC has an 11% tax rate on its taxable income (net of deductions) and beneficiaries’ dividends are taxed at an amount that is 50% compared to the amount that would be taxable if that income had come from salary – but then the beneficiary would actually have to work, one would assume.

At $1M retained earnings, ($50k income from earnings) the tax leakage isn’t that bad, but at $2M ( or $5M or $50M, It’s a pretty sweetheart deal, this CCPC, one that does not offer much incentive for investing in the Canadian economy.

#50 Bonhomme Carnaval on 10.29.19 at 7:32 pm

Until Caroline Mulroney saves us.

#51 not 1st on 10.29.19 at 7:49 pm

AB and Sk will not foot the bill for Trudeaus spending spree and you can take that to the bank.

As for Trump, he proved that even a non finance guy has more savvy than all the eggheads. All you have to do is take the breaks off the economy and it does its thing. Trudeau is absolutely killing ours, substituting debt with revenue and productivity. Our productivity rates are already rock bottom.

#52 Flop.. on 10.29.19 at 7:59 pm

Donald Trump reminds me of asparagus.

Well, not the actual asparagus, more what it does to your pee after eating it.

Something doesn’t smell right.

Something doesn’t look right.

But you just ignore it and go about your daily business for a short while, and before you know it everything’s back to normal…

M45BC

#53 Dale Simpson on 10.29.19 at 8:03 pm

We need hyperinflation so the tax man and politicians plus everyone can get screwed too.

#54 Michael King on 10.29.19 at 8:03 pm

#42. Excellent post and you are not alone. This indicates a profound dysfunction in our society and economy. My wife is a sales representative, reports to a manager/boss and has been with the same company for twenty years. She has repeatedly turned down management positions and for the same reasons you state.
The link is for an insightful article about Scheer’s future.
https://thetyee.ca/Analysis/2019/10/29/Scheer-Should-Have-Listened-To-Preston-Manning/

#55 Yukon Elvis on 10.29.19 at 8:20 pm

#32 Cottingham a bargain on 10.29.19 at 6:16 pm
#6SunShowers on 10.29.19 at 5:06 pm
People with solid incomes and accumulated wealth should pay more.

Hope this helps!
—————

Why so losers like you who evidently
have nothing nor the capability of getting it for yourself by earning it can get more for free?

Socialist loser
……………………………

Maybe you have not noticed but they outnumber us at the ballot box. They will have their way.

#56 Flop... on 10.29.19 at 8:24 pm

Currently number two on this list.

When America invades us we’ll be number one ,with a bullet.

Except Alberta, no one will ever take some guys with guns riding around in 4x4s…

M45BC

A Snapshot of Worldwide Wheat Exports.

Agricultural production is one of the mainstays of the economy, accounting for 3% of the world’s GDP and almost 30% of global employment. One of the most widely grown crops in the world is wheat, which can be used to make products such as bread, alcohol, and baked goods. Our new visualization reveals which countries are responsible for the most wheat exports in 2018.

The total value of worldwide wheat exports was $41.1 billion in 2018.

The value of worldwide wheat exports decreased from $49.2 billion in 2013.

By continent, Europe has the greatest share of the world’s exports, at 34.4%.
Africa has the least, at 0.1%.

The top third exporting countries–Russia, Canada, and the U.S.–are responsible for almost half of wheat exports (47.65%).

Top 10 Wheat-Exporting Countries

1. Russian Federation: $8.4 billion, 20.51% of world exports
2. Canada: $5.7 billion, 13.87% of world exports
3. United States of America: $5.5 billion, 13.27% of world exports
4. France: $4.1 billion, 10.04% of world exports
5. Australia: $3.1 billion, 7.54% of world exports
6. Ukraine: $3.0 billion, 7.31% of world exports
7. Argentina: $2.4 billion, 5.88% of world exports
8. Romania: $1.2 billion, 2.98% of world exports
9. Germany: $1.2 billion, 2.84% of world exports
10. Kazakhstan: $965 million, 2.35% of world exports

#57 Steve on 10.29.19 at 8:33 pm

Your retirement accounts (RRSP) is tax deferment! You eventually need to pay income tax on withdrawals. The assumption is that tax bill will be lower in the future since your income is lower. However, the tax rate may change. I recently looked at tax rates between Ontario and Quebec and what is the tax bill from my retirement savings.

Peter McKay would have been better than Andrew. However the cons need new blood. None of the above will form a government.

#58 crowdedelevatorfartz on 10.29.19 at 8:34 pm

@#52 Flop

Try eating a jar of pickled beets when you’re drinking, out of food, and thats all there is in the fridge besides beer.

I woke up the next morning and almost fainted when i finished peeing… beet juice has staying power….shock and horror cures a hangover…..who knew.

#59 Treasure Island CEO - $27,045,983.88 Offshore on 10.29.19 at 8:45 pm

Only accountants in Canada report to the CRA by law.

Long live globalization of finances.

#60 IHCTD9 on 10.29.19 at 8:52 pm

#6 SunShowers on 10.29.19 at 5:06 pm

People with solid incomes and accumulated wealth should pay more.

Hope this helps!
———

Dude, do me a solid and don’t tell Trudeau about this.

I got both good income and assets plus over 20 years worth of savings (all tax free gains on that too). BUT, Trudeau is giving me even more!

I gotta admit, I’m lovin’ the minuscule income taxes I’m paying, not to mention all that juicy CCB cash he stuffs into my bank account! I never got any of these freebies when Harper ran the show!

I think he’s a dunce, did not vote for him either time, but I’ll happily take [your] cash and give it to the local YAMAHA dealership!

I am looking forward to even more over the next 4 years!!

Let’s just keep this between you and I buddy!

#61 David Eby for Prime Minister on 10.29.19 at 8:53 pm

The funny money commission live in Kelowna right now at the Best Western.

They are taking questions and ideas on how to combat dirty money in BC.

Questions #1: Why is Fred Pinnock being muzzled? This guy knows where the bodies are buried.

#62 Flop... on 10.29.19 at 8:57 pm

I saw someone in the last thread say that to get rich all you have to do is buy Vancouver real estate.

I see no signs of a recovery yet.

Two detached places out Richmond that were assessed for around 1.35 million just sold for 868k and 880k.

Yeah, absolutely on fire…

M45BC

#63 IHCTD9 on 10.29.19 at 9:05 pm

#55 Yukon Elvis on 10.29.19 at 8:20 pm
#32 Cottingham a bargain on 10.29.19 at 6:16 pm
#6SunShowers on 10.29.19 at 5:06 pm
People with solid incomes and accumulated wealth should pay more.

Hope this helps!
—————

Why so losers like you who evidently
have nothing nor the capability of getting it for yourself by earning it can get more for free?

Socialist loser
……………………………

Maybe you have not noticed but they outnumber us at the ballot box. They will have their way
——-

They can fill their boots. It’ll be their metropolitan @zz’s floating down the creek.

Get married, move to a smaller town, make between 100-150K combined, have a few kids (or not), and you’re set. All the freebies, more than enough to live well, and good RE prices too.

I expect there will be more folks passing on the big paycheques in the future once they do the math, just like “Today” did.

There is a sweet spot (for now).

#64 reynolds531 on 10.29.19 at 9:21 pm

Hey anybody know how I can buy etf units in Panama? Maybe I can check with Justin?

#65 cramar on 10.29.19 at 9:27 pm

Luv the dog picture today Garth! I get the meaning. The pooch is the average Canadian, and the bath water is a metaphor for insolvency—already has paws in the inescapable wetness. How long can the average person suspend themselves above the inevitable? So funny! But you cannot help feeling for the poor dog and for the average Canadian.

#66 Tony on 10.29.19 at 9:35 pm

Fire ants are difficult to vince. I exposed a few thousand of them to a 1 torr vacuum, heated the chamber to 120C and added fluorine gas and then nitrogen and oxygen. Left them for 40 minutes and then pulled another vacuum, pressurized to atmosphere and opened the chamber. More than 100 ants survived. Invincible.

#67 Keith on 10.29.19 at 9:43 pm

@ #42 Today

“At least half to the government in taxes.” Hardly.

https://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp#

#68 april on 10.29.19 at 9:49 pm

# 41 – I don’ t know if Garth always agrees with Ross Kay but today listening to Ross on Howestreet.com he comments on CMHC statements today or tomorrow, and realtors tricks into manipulating “innocent young families” into believing that there’s a lack of inventory by not showing all the listings, and listing properties below assessment so that they can get buyers to enter bidding wars. When will this corruption ever end. If governments wanted to they could put an end to to it.

#69 MF on 10.29.19 at 9:50 pm

2 Today on 10.29.19 at 7:03

I don’t know about Garth, but I’ll speak for myself.

If you don’t want to work longer hours for extra pay, someone else will for you. Not trying to be negative, but no one is special and unique. Especially when it comes to work. We are all replaceable and there is always someone hungrier than you.

This idea of the negative tax implications of huge salaries is not something the average person pays any attention to. Most people are actually under employed and would gladly be able to work more hours and make more money when they want to.

MF

#70 NotLegalAdvice on 10.29.19 at 10:00 pm

https://m.huffingtonpost.ca/entry/condo-investors-losing-money_ca_5db46899e4b006d4916f8837?guccounter=1

The collapse of real estate is sooner than you think.

#71 Jenny Wang on 10.29.19 at 10:00 pm

Good time to remind those with Trump Derangement Syndrome that Trump attended the highly competitive Wharton Business School. I was wondering what Garths formal monetary education is?

Instead of fighting Trump, which has manifested itself as TDS in many liberal socialist progressives, one should focused on the deadly downer Trudeau’s trajectory has locked in for Canada. Remember that Sex Pistols song, ” No Future” , that’s the next generations theme song. Trudeau’s massive run up in debt and deficit should have blown out the lazy socialism of your brain by now. Smart people are leaving Canada in drives. Companies are flooding out. Investors are in a controlled panic but exiting in an orderly fashion so as not to scare us retail punters into dumping. Foreign investment in C anada has already fallen 80%. Bad news is everywhere except in the notoriously flexible media. If you’re howling at Trump while Canada is in structural collapse, you’re nuts. The enemy is within. And remember, Trudeau has ZERO monetary education, nor does anyone in his cabinet. That should frightens you into not blaming Trump for Canada woes.

https://business.financialpost.com/opinion/jack-mintz-sorry-mr-trudeau-theres-nothing-progressive-about-reckless-deficits

#72 oh bouy on 10.29.19 at 10:52 pm

@#68 april on 10.29.19 at 9:49 pm
# 41 – I don’ t know if Garth always agrees with Ross Kay but today listening to Ross on Howestreet.com he comments on CMHC statements today or tomorrow, and realtors tricks into manipulating “innocent young families” into believing that there’s a lack of inventory by not showing all the listings, and listing properties below assessment so that they can get buyers to enter bidding wars. When will this corruption ever end. If governments wanted to they could put an end to to it.
_____________________________________

This is one of the problems with society these days, blame someone else for your own idiocy.
If you as a buyer don’t do your due diligence then thats on you not some realtor.

#73 Doug t on 10.29.19 at 11:32 pm

#60 = classic

#74 the ryguy on 10.29.19 at 11:55 pm

#22 Always Lurking on 10.29.19 at 5:54 pm
—————————————————

Everything you say is true and it drives me insane. Id be much more amenable to a raise in taxes IF they would crack down on all the scams. I frequent personalfinanceCanada on reddit…and its just amazing how many people are leaches. They have zero regard for breaking the rules..because honestly who’s going to catch them? Who’s going to enforce it? NOBODY.

Im all for the incentivized tattling too, like can this country take one god damn step in the right financial direction?

#75 Bob Dod on 10.29.19 at 11:58 pm

“Saudi Arabia is $3.4B behind on its payments for Canadian LAVs”

https://apple.news/AsQCMjht9T5WKUZIvw0FgCQ

The smart move is to stiff the corrupt incompetent clowns trying to run our government and send the money to foreign students attending UBC. Buy real estate and displace the halfwits that we’re born here.

No BC’er would dare complain for fear of sounding racist.

#76 Stan Brooks on 10.30.19 at 12:02 am

#49 Smartalox on 10.29.19 at 7:32 pm

In small corps here you pretty much can not distribute dividends to owners and enjoy the tax benefits for it.

You are both an employee and an employer, so you pay double contributions on CPP and EI.

You have no employee benefits like salaried employees and limited options to provide tax deductible such, i.e. health or drug plan or live insurance for example.

You pay double tax on retained earnings – first corporate profit tax and then on salary. And then they tax the income from investments in the corp that can be used for acquisitions and equipment.

You can not have long periods of passive operations, so the small corp has to active/have sales pretty much all the time.

With the way lieberals ‘think’ small businesses are pretty much employees with no benefits but all responsibilities and risks of a business.

And their stupid tax policies are geared towards that direction – pretty much to tax and kill small businesses while protecting the big one.

The overhead of running small businesses including accounting, taxes, etc becomes more and more an overkill. How much of that do you have as an employee?

With current laws and the direction this is going, no sane person would run a small business, instead will look for a mediocre job that comes with benefits.

The income ‘sprinkling’ stupidities come from the refusal of the rulers to recognize and properly tax family income vs. individual income, it/family income taxation/ exists everywhere in the world.
From that refusal to recognize family income also come all this stupidities with ‘gifting’, i.e formally establish tax consequences from transferring wealth between spouses while at the same time the law recognizes their equal and joint ownership of all family assets.

When a country wants to provided incentives for small businesses and the economy to thrive it simplifies the tax code, introduces flat rates on income from salaries above certain threshold.

We have it the opposite way simply because no one cares about small businesses, only about the elite and the big corporations and their interests, hence we end up with all these blood sucking oligopolies who control everything and are highly in-competitive on the international markets.

#77 Jon B on 10.30.19 at 12:12 am

Question: is the capital that earns passive income from inside the corp that was retained prior to January 1, 2018 exempt from the new $50k passive income threshold? In other words, does the attack on passive income affect only retained earnings that are reported on the corporate tax returns after January 1, 2018? I seem to recall that this date had some significance with respect to the new rules.

#78 Stan Brooks on 10.30.19 at 12:13 am

#69 MF on 10.29.19 at 9:50 pm

The masochism of working long extra hours in order to pay 54 % from the earned income as tax has its limits.

My doctor scaled back his practice long time ago at much better times stressing on long-longevity, i.e. working longer years but with less load and stress and paying less taxes.

Thinking about it, if we add all additional taxes etc. (sales taxes, etc.) on top of these 54 % in the top salary range this probably translates to 60-65 % total tax on these additional earnings. So you make 100 bucks for your services and buy stuff/services for 35 bucks net before taxes with that.

#79 JWD on 10.30.19 at 12:32 am

My sense is that more and more people will resort to taking the risks with the tax dodge. Rental income, non disclosure, cash deals, false reporting etc. They would rather take the risks than pay up. The CRA will be an expanding employer.

The tax on capital gains for primary residence will be yuge if it happens….

#80 The Totally Unbiased, Highly Intelligent, Rational Observer on 10.30.19 at 12:37 am

“Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers ‘don’t have a clue.’ He wants yuge cuts to the cost of money, claiming the Dow (now fluttering around record territory) could be 10,000 points higher if only people listened to him.”–Garth

Is your Mom a billionaire?

You need to remember, and never ever forget, that President Trump is a “very stable genius” who possesses “unmatched wisdom” and plenty of spending cash. These indisputable facts were proclaimed from the highest source in the land, and published on Twitter, which makes them true.

Nobody should ever think that they know better than The Donald regarding money matters.

If The Donald says that the US bankers “don’t have a clue,” it is obvious to the discerning observer that they should be told, “You’re fired!”

#81 Ponzius Pilatus on 10.30.19 at 12:58 am

How come booze in Private liquor stores in Alberta is about 20% more expensive than in Government liquor stores in BC?
Should it not be the other way around?

#82 Ponzius Pilatus on 10.30.19 at 1:04 am

ICBC pays out 1.9 billion in injury claims.
500 million to ambulance chasing shister lawyers.
The problem is not ICBC but the common law Tort.

#83 Smoking Man on 10.30.19 at 1:06 am

Compliance.

Such a nasty word to a free thinker..
It’s tied with the word submit.

The button I’m forced to hit anytime I comment on here.

God damn it Garth, change word submit to post it.

You communist if you don’t..

#84 Investx on 10.30.19 at 1:28 am

Garth: “Donald Trump, who has the same formal monetary training as your mom, ”

Really? I didn’t my mom had a B.S. in economics. I gotta ask her about that.

#85 Tony on 10.30.19 at 1:33 am

Tesla is the new king of creative accounting.

#86 BS on 10.30.19 at 1:45 am

“Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers “don’t have a clue.” He wants yuge cuts to the cost of money, claiming the Dow (now fluttering around record territory) could be 10,000 points higher if only people listened to him.”

Trump called Powell out last year when he was raising rates. We all know what happened after Powell raised too much too fast along with some dumb statements. The market tanked. Trump was right. Powell then did a 180 and reversed course just as Trump said he should. Trump was right again. The market is now hitting new highs along with “things are kinda boffo in America lately” as you stated. Is it not time to concede Trump is always right? Maybe my mother knows more than you think.

#87 Tony on 10.30.19 at 2:03 am

Re: #33 tccontrarian on 10.29.19 at 6:30 pm

My guess is the beginning of April 2021.

#88 BigAl (Original) on 10.30.19 at 2:45 am

RE:
#12 Smartalox on 10.29.19 at 5:32 pm

But isn’t Bill More’n’owe’s Small business tax law just intended to prevent those business owners from hoarding cash in their companies, to advantage?

It’s one thing if your small business is stockpiling cash to finance expansion. In that case, paying tax at the small business rate makes sense, but once you expand, you’ll (eventually) pay at a higher rate for larger corporations.

But if you’re using the structure to ‘game’ the system, to earn income with low tax rates, NOT adding employees, or expanding goods and services, while also writing off living expenses against ‘corporate’ income, sprinkling ‘dividends’ to non-productive family members to help them avoid paying taxes on money that they do little to earn, these are not the original, intended uses of this type of corporate structure.

Is this not considered to be ‘closing a loophole’?

A company that uses a portion of earnings to invest in buying raw materials, conduct R&D, pay for marketing, in addition to paying salary, puts that money back into the economy, employs more people, and makes more taxpayers.

A ‘company’ composed of one person, who provides service in the form of mostly intellectual property, and who retains cash for income purposes, does not buy raw materials, does not invest in R&D, marketing, or ’employ’ many other people, except possibly those relatives who receive ‘sprinkled dividends’ instead of earning income of their own.

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

Although this is an investment blog – I think many on here believe religiously in a two-tiered morality – there is no denying the truth in what you’ve said. You said it well. Tax policies in the post-war US of 90%+ for the 1 percent, unless you could actually demonstratre/prove you re-invested money into jobs, R&D, expansion, only then would you get significant tax breaks. Was one of the biggest growth eras in US history. So was Hamiltonian protectionism btw. Went backwards starting 1980. Now no proof of job creation/investment required, just believe with all your heart in the trickle down unicorn magic.

It’s the same fairy dust when they sell free trade with a distortion of the Ricardian model. When capital and goods flow freely across borders, but not labour, guess which one loses out? The distortion is amplified in the absence of a unified currency and capital owners arbitrage both the labour and the floating currencies.

But labour is learning and adapting slowly and creatively, especially the millenials. – gig economy, small businesses popping up, creativity boom. By the way I just read an article that boomers are far more involved in gig work than millenials at a rate of 5 to 1.

It’s just very painful to watch the ones who either won’t or can’t adapt like in the rust belt areas, the GM workers in Oshawa, the generational poor. The thing I instill in my kids the most is that they in no way ever aspire to work for a wage or salary. The ONLY ‘job’ that I tell them to go for if they want one is specialist physician, and if they can’t cut it academically for that, then they must have their own business.

#89 Dharma Bum on 10.30.19 at 7:47 am

Not sure how to protect against any of this stuff.

Maybe it really is time to build the bunker and amass firearms and ammo to prepare for the big revolution.

Maybe. Could be.

Who knows?

I don’t think it’s unreasonable.

Them against us.

It’s coming.

Prepare.

#90 Dharma Bum on 10.30.19 at 7:55 am

#88 BigAL (Original)

The thing I instil in my kids the most is that they in no way ever aspire to work for a wage or salary. The ONLY ‘job’ that I tell them to go for if they want one is specialist physician, and if they can’t cut it academically for that, then they must have their own business.
——————————————————————

Kudos!

Smart man.

I trained my kids exactly the same way.

Fortunately, so far so good. 1 small biz owner and 1 doc.

Good for them.

Families need to fight the government and its financially destructive policies by looking after themselves and educating their children on how to survive, first and foremost.

Protesting in the streets and shouting from the rooftops does nothing. The government will NEVER help you.

#91 TurnerNation on 10.30.19 at 7:55 am

The bankers and elite rulers (those psychos groomed from elite families, persons with 130-180 IQs, literally double the average persons’) have but one goal.
Bankrupt us and pick up our assets for pennies on the dollar. Cough, 2008 anyone?

Let us examine the facts:
– our countries are bankrupt, hopeless debtors
– Most people are on the financial brink
– Savers and capital gainers are to be punished with low rates and more taxation.

“They’ll stone you just like they said they would…everybody must get stoned.”

#92 Remembrancer on 10.30.19 at 7:59 am

#71 Jenny Wang on 10.29.19 at 10:00 pm

Jenny, Jenny, Jenny, you need to up your troll game, this Trump Derangement Syndrome meme is so 2015…

#93 crowdedelevatorfartz on 10.30.19 at 8:10 am

@#82 Ponzie’s Plithy Preamble

“The problem is not ICBC but the common law Tort.”
++++

While I dont have a problem with “killing all the Lawyers” as Shakespeare once suggested.
“get rid of Tort Law”
Your idea is ludicrous and juvenile.
A knee jerk reaction by a former ICBC pensioned employee perhaps?
Besides.
What would ICBC do with all ITS govt paid lawyers if we rid the system of them.
As for ICBC…..why do you think the lawyers circle like ravenous sharks to its bloated, financially bleeding carcass?
A big fat target.
No good news ever gets reported from ICBC.
No politician wants to stand beside ICBC and support it.
ICBC’s days are numbered with every rate increase, every story of it’s overpaid bloated workforce.
ICBC.
The govt agency BC taxpayers love to hate
Just pray you dont get in a car accident where you are injured and get tossed into the ICBC payment run around .
Karma and Lower mainland drivers just might have you dealing as a plaintiff in a Court room some day.

#94 crowdedelevatorfartz on 10.30.19 at 8:13 am

@#89 Dharma 2019
“Them against us.
It’s coming.
Prepare.
+++++

Trumpocalypse I presume……….

#95 akashic record on 10.30.19 at 8:14 am

#88 BigAl (Original)

Corporate tax avoidance, even for a smaller, couple owned business, with a few million dollars revenue, starts with having multiple corporations set up and cycle the business through these entities.

#96 Remembrancer on 10.30.19 at 8:15 am

#89 Dharma Bum on 10.30.19 at 7:47 am
Not sure how to protect against any of this stuff.

Maybe it really is time to build the bunker and amass firearms and ammo to prepare for the big revolution.
————————————————
Sieges throughout history tend to come down to a matter of attrition food and medicine just as important, and more frequently than you’d expect the defense fails due to an inside collaborator/turncoat so vet accordingly…

Oh, if the zombie hoards and/or Prius drivers leave behind a giant oil barrel as a tribute to you as they withdraw, spoiler alert, they’re actually hiding inside waiting for you to celebrate…

#97 crowdedelevatorfartz on 10.30.19 at 8:25 am

@#42 Today

“How does a country capitalize on all this experience if people just stop engaging.”
++++

Like doctors reducing their hours and cutting back on patients?
Like people who think about starting a business and dont?

Not to worry, we have a govt bureaucrat to help you with that….

#98 MF on 10.30.19 at 8:26 am

90 Dharma Bum on 10.30.19 at 7

You are aware that the government pays your doc child’s salary right?

#78 Stan Brooks on 10.30.19 at 12:13

There are thousands of qualified graduates that don’t get accepted by medical schools who artificially keep doctor numbers low (although Ontario just hired a record number). If the acceptance rate goes up even a teeny tiny bit you’ll see salaries come crashing down real quick. When that happens this idea of reducing hours to avoid taxes (more for older docs anyways) will be even more laughable than it is now.

Plus, aren’t they in the profession to help people? That’s what they told the admissions officer.

What I said earlier is still relevant though. There will always be someone hungrier and willing to put in hours to make more.

MF

#99 Loonie Doctor on 10.30.19 at 8:27 am

#69 MF
#78 Stan

Yes, there will be people looking for more work. However, those with in-demand high-level skills that take 10-15 years to develop are less easy to reproduce. Regardless, they are replaceable still. There will be some who have a spending problem or a masochistic streak that will fill in gaps left by those who scale back. However, you will run out of those people as they literally burn-out or die off. You can also replace some things with less skilled cheaper workers too.

It is only the top marginal rate that you earn that affects whether you take on extra work or trim work. Many of the self-employed have the option to flex up or down in workload as long as there is sufficient demand for their services. I agree that the average person does not think about the extra tax of working more. However, the average person does not pay 54% marginal rate. For those that do – it is a big psychological factor if they consider the return on investment of extra time and effort. Honestly, I happily worked away when the rate was under 50%, was fine with paying the taxes, and didn’t really think about it. When it rose to 54% and I was repeatedly told how lucky I was to pay that and should pay more, I paused to think about it. I also think that the upcoming generation of physicians is paying more attention to the balance of what they get back for the input of work. Older physicians may scoff at that. However, doctors are now being treated more like an easily replaced commodity (as MF’s comment espouses) than they used to be. On the receiving end, that sentiment drives the problem since it does not breed the self-sacrificing-sense-of-duty that medicine has valued and relied upon in the past.

I was a medical martyr for many years, but the above issues and shift in public attitudes have changed that outlook.
-LD

#100 the Jaguar on 10.30.19 at 8:27 am

Not Peter Mackay. Not Caroline Mulroney. Not Jason Kenney, and not Brad Wall. Someone new.
Get someone charismatic from Quebec.
Too bad the conservatives threw Nigel Wright under the bus. He had all the right stuff.

#101 Phylis on 10.30.19 at 8:35 am

#78 Stan Brooks on 10.30.19 at 12:13 am Yes, and when ‘bought days off’ are offered i was surprised at how many people take them. So MFs experience might be that of a lower paid crowd.

#102 John on 10.30.19 at 8:55 am

I feel like we can’t win with our politicians.

I don’t want to increase tax small businesses/doctors. But I don’t want to vote for a party with outdated ideals and against social progress. And then both parties being irresponsible when it comes to encouraging more mortgage debt. It’s depressing.

#103 BillyBob on 10.30.19 at 9:24 am

#34 AGuyInVancouver on 10.29.19 at 6:39 pm

At least a big chunk of Canadian debt goes to infrastructure…

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

But does it? I thought in the previous election the big lie was that the deficit would be a) smaller and b) stimulative infrastructure projects.

Where are they?

The money has been blown on ever-expanded social programs (child credits, etc) that will be difficult if not impossible to reduce or remove, ever. Once the infantile voters latch onto that teat they are only removed kicking and screaming.

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

#40 MF on 10.29.19 at 7:02 pm

Your talk about Alberta and Saskachewan is pure fantasy that I hope never becomes reality. In all likelihood, capital and people would flow outward and not inward if there was a “wexit”. We saw that with Quebec in the 1970’s so we have a strong precedent.

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

The difference is that Quebec is a net recipient of transfer payments and exists largely due to its perennial preferential treatment in all things federal from tax treatment to government contracts to cheap energy on the backs of other provinces and on and on. The second most populous province in the country, yet somehow a have-not. If it separated it would be so worse off it’s hard to understand why its perpetual extortion is tolerated. It’s not hard to understand why such a corrupt, unproductive system would be shunned by outside investment.

Alberta on the other hand has massive amounts of a resource that – Green denial notwithstanding – the rest of the world needs and wants. And an entirely different culture from Quebec that for better or worse, isn’t obsessed with getting as much for giving as little as possible. The only parallel to Quebec has been the epic mismanagement.

But I highly doubt that investors would view the two separation scenarios as remotely similar.

An example of ignorant comment that will not be tolerated on this blog. You cannot slag six million people then claim to be on moral high ground. You fell off that pedestal with your first bigoted sentence. Go away – Garth

#104 the ryguy on 10.30.19 at 9:25 am

#102 John on 10.30.19 at 8:55 am

But I don’t want to vote for a party with outdated ideals and against social progress.
————————————————————–
I often hear this idea that conservatives are against social progress..Can I ask what you mean? Like specific examples of what the Libs are just fine with but us stiff conservatives wont allow? Im not trying to be confrontational I just really don’t know any instances of this.

#105 Loonie Doctor on 10.30.19 at 9:33 am

#98 MF

Not sure what your experience with medical training is, but I have been intimately involved for 20+ years.

The number of medical school and residency spots is dictated by provincial governments. Not doctors. In fact, we would rather have more. The government shrinks the spaces to save money. They did so in the 90s with the rationale that docs do stuff that costs money. Less doctors, less cost. Schools expanded in the 2000s after a breaking point was hit. They, then started cutting back again under Wynne in Ontario because the brain-drain was finally stopped. To the point where significant medical school graduates can’t find a residency. It is dumb and not artificially kept low by doctors. Nice conspiracy theory though.

I guess you can decide for yourself whether you want the qualified or the best of the qualified looking after you. As someone who sees the range of ability up close, I know what I want.

If you think that it is just older docs who won’t grind their face off on the medical wheel, you clearly have not spent much time around the next generation of doctors. They are much more saavy and have trained in the era where doctors have been more commoditized (that is a fancy word for what you are describing as easily replaced and therefore not as individually valuable) in the urban centers that they train in. People do go into medicine to help people. However, everyone needs to feel their work is valued. Some of that is financial (very concrete) and some of it is how the people you serve treat you. Both have changed and doctors resolve can change with that.
-LD

#106 IHCTD9 on 10.30.19 at 9:47 am

#81 Ponzius Pilatus on 10.30.19 at 12:58 am
How come booze in Private liquor stores in Alberta is about 20% more expensive than in Government liquor stores in BC?
Should it not be the other way around?
____

How much is a 26’er of Bacardi White rum over there in BC?

#107 DM in C on 10.30.19 at 10:07 am

Peter MacKay? The same one who said he wouldn’t merge the PC with the Reform, then did exactly that? THAT Peter MacKay, who has allowed Reformers (and Wildrose) to take over the party?

HELL NO.

#108 Tony on 10.30.19 at 10:14 am

Tesla Discloses US Revenues Collapsed 39%. Americans Sour on its Cars, Pent-Up Demand Exhausted

Story here:
https://wolfstreet.com/2019/10/29/tesla-discloses-us-revenues-collapsed-39-americans-sour-on-its-cars-pent-up-demand-exhausted/

#109 IHCTD9 on 10.30.19 at 10:30 am

#102 John on 10.30.19 at 8:55 am
I feel like we can’t win with our politicians.

I don’t want to increase tax small businesses/doctors. But I don’t want to vote for a party with outdated ideals and against social progress. And then both parties being irresponsible when it comes to encouraging more mortgage debt. It’s depressing.
__

You’d probably best start working on choosing the lesser evil.

I thought about this idea too. If the Conservatives started promising to give a billion to Saudi Arabia to help Women, or let’s give a Billion to Sierra Leone to fight Climate Change, or if they wanted to add 2 or 5 non-cis gendered bathrooms to every Federal building in the country, would I vote for them?

Hell no, I would not. In fact I would protest vote for the worst possible candidate with a chance at winning. I’m close to doing that right now.

If the Cons do to their social Conservatism what the Liberals have done to theirs – that won’t make them win. Few lefty’s will change, and many righties will revolt. Many more guys like me than there are left wingers who would vote Conservative.

IMHO, the Cons can’t win. Trudeau was a rolling dumpster fire for a PM – dirty laundry galore, weird blackface photos appearing on the net, and creepy, grope allegations and stories of payoffs. Dumb as a stump, embarrassing to no end – there’s probably more bones in T2’s closet than there is in Trump’s. But he still won. Imagine if Scheer was PM and all this same dirt showed up – he’d be gone like a warm summer afternoon. T2 instead gets round 2. If the voting public will look past this mountain of transgressions in order to have sock-head as PM – then the Cons are toast.

I’m starting to get a bit concerned about the reality of major financial problems becoming more and more certain. Right now I am hoping Canada gets some kind of financial font-kick, and that many will suffer a reality check. If enough do – maybe the country’s finances will become more important to them.

#110 Ponzius Pilatus on 10.30.19 at 10:56 am

#106 IHCTD9 on 10.30.19 at 9:47 am
#81 Ponzius Pilatus on 10.30.19 at 12:58 am
How come booze in Private liquor stores in Alberta is about 20% more expensive than in Government liquor stores in BC?
Should it not be the other way around?
____

How much is a 26’er of Bacardi White rum over there in BC?
—————
I don’t do the hard stuff.
Beer is my poison.
We have private and government stores.
Government is always cheaper and has much more selection.

#111 Paul Henria on 10.30.19 at 11:02 am

I would rather have a conservative government and cut then a high debt, Venezuela outcome of the money becoming more worthless.

What do you think a 50 cent Canadian dollar to US is not going to cause alot of inflation and higher cost of living and rising deficits, debts will also cause future higher taxes. The Liberal, NDP, left wing crap is the worse outcome for Canada.

#112 IHCTD9 on 10.30.19 at 11:11 am

#89 Dharma Bum on 10.30.19 at 7:47 am

Maybe it really is time to build the bunker and amass firearms and ammo to prepare for the big revolution.

Maybe. Could be.

Who knows?

I don’t think it’s unreasonable.
___

It’s not unreasonable – but don’t prep for battle against your fellow Canadians just yet – the CAF will do that for free.

Better to prep for the near certain short term high taxation, targeted and unfair policies, and possibly some significant civil unrest.

Expect possible intermittent services for hydro, water, and sewage systems, if public worker strikes hit and have staying power as a result of government having nothing left to give.

If these strikes eventually get put down by force, and thousands start rioting in protest – now you can start worrying about how many shells of buck-shot you’ve got for the Mossberg 590.

Food eventually becomes a concern too – rioting and looting go hand in hand. Even just the suggestion of a serious supply disruption can cause folks to clear out the shelves in a matter of hours.

Lots of unrest in the world right now, getting a plan together never hurts.

Keep your ear to the rail. We’ve got lots of “prior art” available for reading when it comes to social upheaval and broke-ass governments. It’s not hard to identify.

I think about this too from time to time. Common sense preparations though, and really only for the basics and the near term.

Lao Tzu said it how I’m feeling it:

“If we are not careful, we may end up where we are heading”

#113 Midnights on 10.30.19 at 11:18 am

Trudeau is doing a hell of a job.
https://business.financialpost.com/opinion/gwyn-morgan-liberals-sending-debt-into-hyperdrive-and-generation-screwed-will-end-up-paying-for-it

#114 Ponzius Pilatus on 10.30.19 at 11:22 am

#111 Paul Henria on 10.30.19 at 11:02 am
I would rather have a conservative government and cut then a high debt, Venezuela outcome of the money becoming more worthless.

What do you think a 50 cent Canadian dollar to US is not going to cause alot of inflation and higher cost of living and rising deficits, debts will also cause future higher taxes. The Liberal, NDP, left wing crap is the worse outcome for Canada.
————-
Did you vote?
Are you actively involved in the political process?
Run for office?
If not, stop complaining.

#115 Eks dee Siple on 10.30.19 at 11:28 am

#110 PP…Government is always cheaper and has much more selection.

It must be due to buying power assuming there are more gov’t outlets than private ones. Damn communists. BTW, we often fail to recognize that capitalism fails every credit cycle, especially more so in relation to how unhinged it gets to socialism. The more unhinged, the more spectacular the failure. And banks are always the perps that get away with it.

#116 IHCTD9 on 10.30.19 at 11:29 am

#110 Ponzius Pilatus on 10.30.19 at 10:56 am
#106 IHCTD9 on 10.30.19 at 9:47 am
#81 Ponzius Pilatus on 10.30.19 at 12:58 am
How come booze in Private liquor stores in Alberta is about 20% more expensive than in Government liquor stores in BC?
Should it not be the other way around?
____

How much is a 26’er of Bacardi White rum over there in BC?
—————
I don’t do the hard stuff.
Beer is my poison.
We have private and government stores.
Government is always cheaper and has much more selection.
___

6 pack of 500ml cans DAB Original is 12.90
6 pack of 500ml Stella cans Artois is 16.95
26’er of white Rum is 28.50

I can buy all this stuff at the LCBO in town, or at the gas station just down the road from our house. Same rip-off price at either location.

#117 Eks dee Siple on 10.30.19 at 11:36 am

Looney Tooney: I guess you can decide for yourself whether you want the qualified or the best of the qualified looking after you. As someone who sees the range of ability up close, I know what I want.

This is a weak argument. What are you saying? Some docs are better at diagnosing and treating disease than others? Isn’t the purpose of the medical boards to standardize this very thing? Please elaborate…

#118 Sail Away on 10.30.19 at 11:57 am

#108 Tony on 10.30.19 at 10:14 am

Tesla Discloses US Revenues Collapsed 39%. Americans Sour on its Cars, Pent-Up Demand Exhausted

Story here:
https://wolfstreet.com/2019/10/29/tesla-discloses-us-revenues-collapsed-39-americans-sour-on-its-cars-pent-up-demand-exhausted/

——————————

Tony, you predicted US markets will crash in November 2019 and have lately been hammering Tesla. I think Tesla is the car of the future and is so far ahead of the competition that the game is essentially won.

Let’s see where this topsy-turvy world takes us…

#119 613 Moister on 10.30.19 at 12:04 pm

I’d vote for Rona Ambrose any day. I’m so disappointed that she left politics.

#120 Shawn Allen on 10.30.19 at 12:10 pm

Private versus Government Liquor Stores

#115 Eks dee Siple on 10.30.19 at 11:28 am
#110 PP…Government is always cheaper and has much more selection.

It must be due to buying power assuming there are more gov’t outlets than private ones.

******************************
I suspect that as in Alberta the privates must buy ONLY from the government wholesaler. And the privates are heavily regulated.

So, the government still basically controls much of the price.

#121 Sail Away on 10.30.19 at 12:16 pm

Re: Tesla

One reason I’m an Elon fan is because he’s done the impossible with Space-X by creating the only successful private rocket company in history, while improving the technology by leaps and bounds. Keeping SpaceX private was a genius move to avoid pressure from short-sighted shareholders- something that has caused many issues with Tesla.

As an engineer, I’m absolutely blown away by Musk’s ability to turn concept to reality. Us engineers love our Teslas.

Stay long, buy the dips, ignore the noise. It’s a 4-bagger so far from my 2013 entry with many dip purchases along the way.

#122 Shawn Allen on 10.30.19 at 12:19 pm

Actually, Bank Shareholders Paid a heavy price in 2008

#115 Eks dee Siple on 10.30.19 at 11:28 am said: BTW, we often fail to recognize that capitalism fails every credit cycle, especially more so in relation to how unhinged it gets to socialism. The more unhinged, the more spectacular the failure.

And banks are always the perps that get away with it.

***************************************
Maybe you meant Bank Executives are the perpetrators that get away with it?

The share holders of a number of banks were wiped out in 2008. (Either wiped out or got a very few pennies on the dollar)

This included Washington Mutual, Leman Brothers, and Wachovia.

The share prices of Bank of America and Citi Group have not recovered to this day. Citi is 15% of its peak price.

Partial myth that bank share owners did not pay.

Sure, more banks would have gone to zero without bail out. But there were still big losses.

Actually, it was bank executives and bank depositors who were bailed out. I’m not sure any depositor lost a dime on their deposit in a failed bank. And that is what bank regulation is primarily intended to do – protect depositors and instill confidence in depositors.

#123 Sail Away on 10.30.19 at 12:36 pm

#103 BillyBob on 10.30.19 at 9:24 am

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

The difference is that Quebec is a net recipient of transfer payments and exists largely due to its perennial preferential treatment in all things federal from tax treatment to government contracts to cheap energy on the backs of other provinces and on and on. The second most populous province in the country, yet somehow a have-not. If it separated it would be so worse off it’s hard to understand why its perpetual extortion is tolerated. It’s not hard to understand why such a corrupt, unproductive system would be shunned by outside investment.

Alberta on the other hand has massive amounts of a resource that – Green denial notwithstanding – the rest of the world needs and wants. And an entirely different culture from Quebec that for better or worse, isn’t obsessed with getting as much for giving as little as possible. The only parallel to Quebec has been the epic mismanagement.

———————————-

An example of ignorant comment that will not be tolerated on this blog. You cannot slag six million people then claim to be on moral high ground. You fell off that pedestal with your first bigoted sentence. Go away – Garth

———————————

You seem a little sensitive, Garth- calling out bigotry against a province? What’s next… prejudice against a continent or some other inanimate object?

Worse is said on this blog about political parties all the time without censure.

There are plenty of places online to go and hate. Feel free to follow him. – Garth

#124 whiplash on 10.30.19 at 12:41 pm

#113 Midnights

They forgot to mention that in 24 months Trudeau added $40 billion of new debt to the books of crown corporations which taxpayers a legally liable for in the event of a default.

I also suspect that one of the first pieces of business in house will be to amend the Borrowing Authority Act and raise the total market debt ceiling which is currently at $1.168 Trillion to say, based on out of control spending promises in the election and the fact that the NDP have a crack at the cheque book now, $1.4 trillion is not unreasonable and they can pass this with their majority. Today, total market that we pay interest on is now $1.066 trillion.

#125 Today on 10.30.19 at 12:48 pm

MF #69

Fair point!

The thing that I’m seeing is that my experience has value. People are willing to pay for this experience.

If you’ve saved, you can work or not on your terms. The tax system doesn’t help to encourage employing this knowledge.

This offer has been made to me multiple times over the past year so when experience matters it may be a little harder to just find someone who is “hungrier”.

Have a great day and thanks for the opportunity to share opinions.

#126 IHCTD9 on 10.30.19 at 12:49 pm

#115 Eks dee Siple on 10.30.19 at 11:28 am

BTW, we often fail to recognize that capitalism fails every credit cycle, especially more so in relation to how unhinged it gets to socialism. The more unhinged, the more spectacular the failure. And banks are always the perps that get away with it.
___

I was reading a “Tractor” forum last night. An old guy from Lithuania was showing off his 4×4 tractor that he built himself. Many were impressed that he would undertake such a project. Another dude remarked that you see so many cool home built machines coming from the Russians, Ukrainians, Eastern Europeans etc…

4×4 Tractor guy came back and said that when communism ruled, the means of production were illegal to own – and tractors were included as such. They were not even allowed to own horses back in the day, lest someone put them to work and earn.

So, if you wanted to get something done without hitching a trailer to your Pig, you had to build the means yourself. This is why, he said – you see so many of these awesome home built machines in the old communist bloc. I guess necessity is the mother of invention. Too bad the same invention work had long been done – over 100 years prior – but these folks were denied access to the benefits thereof.

These dudes were just a little unhinged to socialism/communism, and when they declared independence from the Soviet Union, they switched over to a market economy as fast as they could. Their economy has grown over 500% since then.

I got a feeling these folks would happily bear a periodic economic contraction rather than go back to hauling firewood home using a Pig powered wagon.

#127 IHCTD9 on 10.30.19 at 1:09 pm

#120 Shawn Allen on 10.30.19 at 12:10 pm
Private versus Government Liquor Stores

#115 Eks dee Siple on 10.30.19 at 11:28 am
#110 PP…Government is always cheaper and has much more selection.

It must be due to buying power assuming there are more gov’t outlets than private ones.

******************************
I suspect that as in Alberta the privates must buy ONLY from the government wholesaler. And the privates are heavily regulated.

So, the government still basically controls much of the price.
___

Yep, I Googled the structure, and it looks (via a casual glance) that the AB Government has itself firmly inserted between the booze manufacturers and the Alberta booze retailers.

Check out the government markups:

https://aglc.ca/liquor/about-liquor-alberta/liquor-markup-rate-schedule

I don’t know what a 26’er goes for in AB, but that $13.76 per litre markup on 40% ABV spirits would represent close to 100% in Ontario on the cheaper stuff.

I just had a look at the Johnstown Duty Free site, and see Bacardi White Rum is on sale for 26.00 CAD for 2 litres. That’s 9.75 CAD for a 26’er. Same bottle is sneaking up on 30.00 at the LCBO here in Ontario.

10.00-13.00 /26oz. is probably all the booze needs to cost once you remove government.

#128 not 1st on 10.30.19 at 1:17 pm

DELETED

#129 Shawn Allen on 10.30.19 at 1:24 pm

Cheap Refrigerators and Inflation and Profit

Garth said: Seven in ten families could not afford a new fridge if they had to pay cash for it. (You can charge one at The Brick and take 36 months to pay, but if you miss one payment, interest applies. It is currently “RBC prime + 33.29%. Yes, you read that correctly.)

******************************
I heard the Brick advertising an 18 cubic for refrigerator with top freezer for $599.

https://www.thebrick.com/products/brada-18-cu-ft-top-freezer-refrigerator-mrf-541ww

About 25 years ago I was happy to pay $699 or so for an Admiral Builders model from Beacon Electric in Halifax for a rental house I then owned. It may have been a bit less than 18 cubic feet.

I absolutely marvel at the fact that a refrigerator with all its parts and complexity and even its sheer weight and size can be manufactured and brought to a store and sold at retail for $599. That is just one week of wages at minimum wage.

A (far smaller) refrigerator in the 1950’s was about $250 and that was more than a month’s wages for most people, let alone those on minimum wage type jobs.

Is this the inflation that Stan sees?

Garth mentions the prime plus 33.29% interest rate if you miss a payment.

Who do you think is making much profit here? The manufacturer? The trucking company? The retailer? or oh yes, the lender. And who does not even need to break a sweat to make their profit?

I have said before, “It costs a lot of money to be poor”. The poor face massive interest rates.

#130 Tater on 10.30.19 at 1:26 pm

#121 Sail Away on 10.30.19 at 12:16 pm
Re: Tesla

One reason I’m an Elon fan is because he’s done the impossible with Space-X by creating the only successful private rocket company in history, while improving the technology by leaps and bounds. Keeping SpaceX private was a genius move to avoid pressure from short-sighted shareholders- something that has caused many issues with Tesla.

As an engineer, I’m absolutely blown away by Musk’s ability to turn concept to reality. Us engineers love our Teslas.

Stay long, buy the dips, ignore the noise. It’s a 4-bagger so far from my 2013 entry with many dip purchases along the way.
————————————————————
Tesla’s net income as a public co is -6 billion. Musk committed perhaps the most egregious example of securities fraud with his $420 tweet. He bailed out himself, and his cousins, investment in Solarcity with Tesla money, despite Solarcity being insolvent, by displaying a product that did not exist and could not exist as he showed it.

Not surprised you’re a fan, tbh.

#131 leebow on 10.30.19 at 1:31 pm

I don’t know why everybody is so worked up. We have to admit that we do have a problem with disenfranchisement, and extremes in politics. The Trump-Warren-NDP-Ford brothers axis are just different “solutions” to the same problem.

You can go to Venezuela and live a regal life style for 10K a month. But you will see a lot of poor people through your car window. I personally hate seeing people who live in poverty and lost all hope. For me it’s worth a lot to have physical and aesthetic security. As long as the tax money is not wasted on topless SJW party, but invested at a great rate of return.

People do continually make bad choices, and there is not much we can do about it. I speculate one of the main reasons is their upbringing and lack of mentoring at young age. Perhaps, having universal child care could solve that. Just removing some children for 8 hours a day from the situation of marginal child abuse could do a lot for them and their parents. May be the children will break out of substance abuse and desperation cycle. That would do a great deal for investors too.

Another consideration is that the people who want to tax “the rich” are often in a financial zugzwang. They don’t have any good options, and often only one strategy – float with the stream. They won’t be able to benefit from the situation. But such a stress will inevitably create opportunities for those who can choose their strategy.

May be, instead of stomping our feet we should think what’s the best way to bring people back into the productive and rational state of mind.

#132 MF on 10.30.19 at 1:41 pm

#105 Loonie Doctor on 10.30.19 at

Thank you for your response.

In a world where most people earn 50k after spending years, sometimes decades, in post secondary education only to be under employed it’s hard to feel bad for someone who gets paid ten times as much complain.

It’s also hard for people who work 7 days a week for 50k to make ends meet hear someone making ten times that with similar work hours complain about scaling back.

I should say I’m actually proud of our medical system and I believe our doctors are the best. The selection process I am very skeptical of though.

MF

People who earn $50k “after spending years, sometimes decades in post-secondary education” made bad choices. Don’t hate those who chose wisely. – Garth

#133 PastThePeak on 10.30.19 at 1:57 pm

#105 Loonie Doctor on 10.30.19 at 9:33 am
#98 MF

Not sure what your experience with medical training is, but I have been intimately involved for 20+ years.
++++++++++++++++++++++++++++++++

MF has learned everything about the world, right from his condo in downtown TO…

#134 PastThePeak on 10.30.19 at 2:03 pm

#119 613 Moister on 10.30.19 at 12:04 pm
I’d vote for Rona Ambrose any day. I’m so disappointed that she left politics.
+++++++++++++++++++++++++++++++++

It does prove she is smart…

#135 MF on 10.30.19 at 2:23 pm

People who earn $50k “after spending years, sometimes decades in post-secondary education” made bad choices. Don’t hate those who chose wisely. – Garth

-I agree. Still doesn’t justify someone earning 500k complaining about hours though.

MF

MF

#136 BoDiddley on 10.30.19 at 2:31 pm

I see two scenarios playing out in this country. The rise of income disparity will eventually lead to class warfare, which inevitably leads to social unrest (as we’re witnessing in many parts of the world now), and finally, tribalism.

Our geniuses at the top know this too, and it’s why I possibly see the introduction of a UBI looming over the horizon. As more and more jobs are rendered obsolete by automation over the coming decade or so, I expect things are going to get very interesting indeed. I’m seeing the effects already in my own town, where mini tent cities have popped up in the local park and others are living underneath an old railroad bridge… The drug and opioid epidemic is at crisis levels right across the country, and I know for a fact a few of these individuals were at one time earning good money and a decent living. Health is wealth, and once that is taken away from you – through illness or otherwise – then you’re really up SC. The amount provided to live on through the Ontario Disability Support Program is an absolute travesty. It’s by no means a dignified existence, and there’s no way in hell these people are affording market rent or housing costs. In fact, it was on the news just a a few weeks ago that housing now accounts for over 50% of a person’s total budget…

The point I’m driving at here is this: The path we’re currently on in this country is clearly unsustainable as the income gap grows wider and wider with more individuals finding themselves on the wrong side of the fence. People who think this wild bash is going to last forever are terribly deluded. Something at some point is going to give. It has to as you cannot escape the laws of simple mathematics. And those laws dictate that 2+2 MUST always equal 4 no matter how hard you try to fudge it.

I’m often reminded of this quote, one that is perhaps more relevant now than at any other time in human history:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises.

#137 Jesse on 10.30.19 at 2:33 pm

#132 MF on 10.30.19 at 1:41 pm
#105 Loonie Doctor on 10.30.19 at

Thank you for your response.

In a world where most people earn 50k after spending years, sometimes decades, in post secondary education only to be under employed it’s hard to feel bad for someone who gets paid ten times as much complain.

It’s also hard for people who work 7 days a week for 50k to make ends meet hear someone making ten times that with similar work hours complain about scaling back.

I should say I’m actually proud of our medical system and I believe our doctors are the best. The selection process I am very skeptical of though.

MF

People who earn $50k “after spending years, sometimes decades in post-secondary education” made bad choices. Don’t hate those who chose wisely. – Garth
***************************

Jealousy breeds contempt and misery loves company! That’s where we are right now as a country. That’s why millennial’s love socialism, and that’s why they will vote to take away your RRSP and TFSA. The writing is on the wall, get out of Canada while you can!

#138 maxx on 10.30.19 at 3:02 pm

#29 FreeBird on 10.29.19 at 6:13 pm

“If 40% of Canadian families now pay no net income tax. And the top 20% of income-earners now foot 70% of the country’s bills (small number of 1%ers (272,600) pay 18% of all taxes) and I’m guessing this incl small business owners/self employed then how are the later screwing the system?”

Agreed. They’re not.

The purveyors of this sinister claptrap remind me of what Stan @ #16 included in his post: “If being stupid hurts there would be not many left alive around.”

Instead of playing their own game and getting ahead, losers spend their lives looking over the fence with narrowed eyes, just waiting to point the finger and scream “unfair!” at those who have more simply because they WORKED for it.

Entitled, whining losers, one and all.

#139 James on 10.30.19 at 3:09 pm

#109 IHCTD9 on 10.30.19 at 10:30 am

#102 John on 10.30.19 at 8:55 am
I feel like we can’t win with our politicians.

I don’t want to increase tax small businesses/doctors. But I don’t want to vote for a party with outdated ideals and against social progress. And then both parties being irresponsible when it comes to encouraging more mortgage debt. It’s depressing.
__

You’d probably best start working on choosing the lesser evil.

I thought about this idea too. If the Conservatives started promising to give a billion to Saudi Arabia to help Women, or let’s give a Billion to Sierra Leone to fight Climate Change, or if they wanted to add 2 or 5 non-cis gendered bathrooms to every Federal building in the country, would I vote for them?

Hell no, I would not. In fact I would protest vote for the worst possible candidate with a chance at winning. I’m close to doing that right now.

If the Cons do to their social Conservatism what the Liberals have done to theirs – that won’t make them win. Few lefty’s will change, and many righties will revolt. Many more guys like me than there are left wingers who would vote Conservative.

IMHO, the Cons can’t win. Trudeau was a rolling dumpster fire for a PM – dirty laundry galore, weird blackface photos appearing on the net, and creepy, grope allegations and stories of payoffs. Dumb as a stump, embarrassing to no end – there’s probably more bones in T2’s closet than there is in Trump’s. But he still won. Imagine if Scheer was PM and all this same dirt showed up – he’d be gone like a warm summer afternoon. T2 instead gets round 2. If the voting public will look past this mountain of transgressions in order to have sock-head as PM – then the Cons are toast.

I’m starting to get a bit concerned about the reality of major financial problems becoming more and more certain. Right now I am hoping Canada gets some kind of financial font-kick, and that many will suffer a reality check. If enough do – maybe the country’s finances will become more important to them.
_______________________________________

Don’t blame me I voted for KODOS.

#140 Deplorable Dude on 10.30.19 at 3:10 pm

Donald Trump, who has the same formal monetary training as your mom, said Tuesday the US bankers “don’t have a clue.” …

————

Hey Garth…check out the US Bureau of Economic Analysis figures released today….

https://www.bea.gov/news/2019/gross-domestic-product-3rd-quarter-2019-advance-estimate

Q3 GDP up 1.9%…..but the big news is Main St consumer goods spending up a whopping 64%…and services spending up 36%.

80% of what the US produces is consumed within the US.

That’s middle class spending…disposable income grew 4.5%.

Main Street is booming..

Lowest unemployment ever. Highest black employment levels ever.

I guess that recession all the pundits desperately wanted has been cancelled.

But of course Multi Billionaire businessman Trump hasn’t got a frickking clue what he is doing…..

And the Fed has ignored him. Surely you are not that naive. Oh wait… – Garth

#141 jess on 10.30.19 at 3:40 pm

https://www.dailymail.co.uk/news/article-7618591/Bernie-Ecclestone-88-set-settle-record-1BILLION-tax-demand-HMRC.html
Ex-Formula One boss Bernie Ecclestone, 88, is set to settle his record £1BILLION tax demand with HMRC after a 20-year battle

Bernie Ecclestone, 88, has faced questioning over taxes from HMRC for 20 years
Trust set up by his wife is believed to have raised £3billion from selling F1 stakes
A source said: ‘Finally an arrangement seems to have been made’

By Isabella Nikolic For Mailonline

Published: 07:09 EDT, 27 October 2019 | Updated: 11:04 EDT, 27 October 2019
==========================
Mark Carney, Governor of the Bank of England, told a committee in the U.K. parliament in June that funds holding illiquid assets could pose a systemic risk. “These funds are built on a lie, which is that you can have daily liquidity for assets that fundamentally aren’t liquid.”
====================================
https://www.investopedia.com/terms/m/mezzaninefinancing.asp

Hedge Fund’s Liquidity Crisis Spurs Contagion Fears in Korea
https://ca.finance.yahoo.com › news › hedge-fund-liquidity-crisis-spurs-16…
Oct 16, 2019 – In an echo of the liquidity crunch that caused the stunning downfall of British investor Neil Woodford, Seoul-based Lime Asset Management Co.

https://www.bloomberg.com/news/articles/2019-10-14/korea-s-top-hedge-fund-freezes-more-redemptions-on-cash-crunch

illiquid bonds.
https://portfolio-adviser.com/bond-issuer-wined-and-dined-ousted-gam-manager-tim-haywood/

#142 IHCTD9 on 10.30.19 at 4:00 pm

#129 Shawn Allen on 10.30.19 at 1:24 pm

About 25 years ago I was happy to pay $699 or so for an Admiral Builders model from Beacon Electric in Halifax for a rental house I then owned. It may have been a bit less than 18 cubic feet.

I absolutely marvel at the fact that a refrigerator with all its parts and complexity and even its sheer weight and size can be manufactured and brought to a store and sold at retail for $599. That is just one week of wages at minimum wage.
____

Globalized manufacturing and automation has been a bonanza for consumers. You probably need to be 45+ to truly appreciate just how cheap consumer goods have become.

I don’t know how big my fridge is, but it cost 800.00, 18 years ago, Kenmore.

Our old TV, a 27″ Sony tube unit, was $800.00 in the mid 90’s. Today a 27″ HD flat screen can be bought in the bloody grocery store for under 100.00.

I do the same thing when I see a big ratchet set on sale for 45.00 or a new garden tractor for 999.99. How could all those people involved in getting this thing in front of me have made money at this price?

#143 Sail Away on 10.30.19 at 4:26 pm

#135 MF on 10.30.19 at 2:23 pm

People who earn $50k “after spending years, sometimes decades in post-secondary education” made bad choices. Don’t hate those who chose wisely. – Garth

-I agree. Still doesn’t justify someone earning 500k complaining about hours though.

——————————-

Looney D wasn’t complaining at all. He was explaining a logical decision to not work extra hours while taking home 46% of his rate.

This is what disincentivizing the most capable and educated among us, with the greatest power to make a difference, looks like.

#144 Sail Away on 10.30.19 at 4:35 pm

#130 Tater on 10.30.19 at 1:26 pm
#121 Sail Away on 10.30.19 at 12:16 pm

Re: Tesla

As an engineer, I’m absolutely blown away by Musk’s ability to turn concept to reality. Us engineers love our Teslas.

Stay long, buy the dips, ignore the noise.

————————————————————
Tesla’s net income as a public co is -6 billion. Musk committed perhaps the most egregious example of securities fraud with his $420 tweet. He bailed out himself, and his cousins, investment in Solarcity with Tesla money, despite Solarcity being insolvent, by displaying a product that did not exist and could not exist as he showed it.

—————————-
Effective people are not without their flaws, Tater.

The tweet is settled. We’ll see what happens with Solar City and the Thailand tweet lawsuit. Neither will affect his companies or his visions.

Don’t miss the forest for the trees. Henry Ford did a lot of crazy and totally socially unacceptable things as well.

#145 maxx on 10.30.19 at 5:22 pm

@ #42

You’re a very wise person.

Low interest rates have resulted in extremely difficult fiscal territory for central bank gurus. Their 30-odd year machinations have resulted in debt at all levels of society and government that has thrown much of the world into negative wealth.

They now need to stabilize the global economy (nowhere near that yet), deal with the debt and then rebuild wealth.

One word comes to mind: retards.

#146 Jane Dipapoulous on 10.30.19 at 7:27 pm

Liberals, NDP, Green party voters don’t complain when you have no money and live in misery depending on handouts and food banks.

This is the first stage and then when your socialist utopia crumbles keep complaining, protesting until you starve to death.