Cher Bill

The ink was barely dry on young Scheer’s take-this-job-&-shove-it letter when news on what the T2 Libs have in store for this confused and snowy land emerged. Finance guy Bill Morneau’s ‘mandate letter’ was released Friday – essentially the instructions given to the main economic minister from the PMO. This is an outline of what we can expect in the coming budget.

So sit, clutch some furniture or hold your dog’s paw as you proceed. Under no circumstances should the following be read alone. The mandate:

Defang the Stress Test.
Remember the dumbest plank in the Tory election platform? Yes, to gut the mortgage stress test as the housing lobby had been begging for a year. The Cons promised to ‘modify’ it if elected, and were immediately hugged by the Canadian Real Estate Association. Realtors argued that by reducing the amount of money first-time buyers (who have no money) can borrow the test was depressing sales and prices. Properties were becoming slightly (…oh, the horror…) more affordable as a result. Commissions were down. Mortgage lenders were sleeping in their vans.

Well, it’s coming. Morneau’s been instructed to “review and consider recommendations from financial agencies related to making the borrower stress test more dynamic.” That does not mean making the test harder. Just the opposite. And so the political manipulation of the market continues. Combined with cheapo borrowing rates plus the shared-equity mortgage, it’s clear Ottawa is trying to recreate the Spring of 2017. Dog help us.

Slap on a National V&S Tax.
Soon the country will have its first pan-Canadian federal real estate tax – another order just given to Bill. The annual ‘vacancy and speculation’ tax will initially be set at 1% of a property’s value each year, to be paid by any investor not resident in Canada. It’s another example of what this pathetic blog has been yammering about recently as real estate turns into the new new thing for governments to Hoover. Of course this will do nothing to make houses and condos cost less, especially when the government is about to geld the stress test and increase demand.

But the basis of successful politics is “us vs. them” and that requires an enemy. One that doesn’t vote is even better. Meantime any national law of this nature involves tracking everybody’s activities. Like BC. With fangs.

Whack the Rich.
Trudeau’s first big moves in the last mandate were to gut the TFSA contribution limit and bring in a new tax bracket to vacuum $2 billion more a year from high-income earners. Not the super-rich in terms of assets, like Bill Morneau and his billionaire wife, but those nasty doctors, lawyers, vets, surgeons, dentists and small business guys making two hundred grand a year and employing people. Well, there’s more coming.

The new luxury tax, for example. If you buy a boat or a car or an RV worth more than a hundred grand a fat 10% tax will be applied to the price. That’s on top of HST, and you pay the bill in after-tax dollars. Just imagine what this is going to do for the recreation business.

Morneau has also been instructed to review “tax expenditures” for the purpose of “ensuring that wealthy Canadians do not benefit from unfair tax breaks.” So what are tax expenditures? Vehicles which reduce federal revenues, like TFSAs, RRSPs, RRIFs, LIRAs and RESPs. Also included are all the tax credits and breaks, from tuition to child care expenses, to principal residence capital gains exemption, age credit, basic personal exemption, interest deductibility etc. Oh yeah, plus the capital gains inclusion rate and dividend tax credit. Gulp. Oops, almost forgot – Morneau’s also been told to whack high-income people getting stock options form their established, ‘mature’ employers.

So there you go. Trudeaunomics in a nutshell. Pander to homebuyers by allowing over-borrowing and increased debt. Blame foreign dudes. Increase government spending and the river of red. Penalize successful people because it’s unfair they should have more than you. And rejoice that the guy who got the most votes was just nailed to a tree.

 

148 comments ↓

#1 Party on Garth on 12.13.19 at 3:21 pm

The borrowing and spending binge by Canadian households, businesses, and governments (all levels) continues unabated. Growing the debt in the economy significantly faster than the economy itself grows seems to have developed into a way of life in Canada.

At the end of September, 2019 the total debt outstanding in Canada (bottom line of the Statistics Canada credit market summary data table) was $8.565 trillion. At the end of September, 2018 the total debt outstanding was $8.174 trillion. In the 1 year period from the end of September, 2018 to the end of September, 2019 it increased by $391.3 billion. This is an increase of 4.8%.

https://owecanada.blogspot.com/2019/12/canadian-total-household-business-and.html

#2 Blog Dog Ford on 12.13.19 at 3:31 pm

“Dog help us.”

someone is having fun with anagram. LOL

#3 Ponzius Pilatus on 12.13.19 at 3:37 pm

The only thing missing is a tax on empty F-150 trunk beds.
Only owners using them in the course of their business should be excerpt.

#4 Flop... on 12.13.19 at 3:38 pm

I’m glad you posted early.

I feel better on this page away from all the religious nuts on the previous one.

Barricade the door…

M45BC
M45BC

#5 Stan Brooks on 12.13.19 at 3:42 pm

Yep, this guy will take care of the stupid, delusional voters.

Remember, it is not personal, but all in the name of fairness.

Absolutely fantastic times ahead, especially for the spectators outside of the mental institution.

Reducing my exposure to this guy and his idiotic policies to negative.

Cheers and enjoy folks,

#6 Ponzius Pilatus on 12.13.19 at 3:44 pm

148 YVR Expat on 12.13.19 at 2:23 pm
#142 Sail Away on 12.13.19 at 2:03 pm
#136 Tommy Cat on 12.13.19 at 12:53 pm

Clearly there is no god. We evolved from RNA arising primordial goo and electrical activity.

——————————–
Prove it.

Scientists have not been able to re-create life, and not for lack of effort.
—————————-
Maybe not all, but surely some people must have evolved from some sort of slime.
There could be no other explanation.

#7 HoweStreet.com on 12.13.19 at 3:44 pm

Ross Kay on HoweStreet.com Radio:
Taxpayers Spend Billions for Fake Housing News.
June 3, 2013 Remember that Day.

https://www.howestreet.com/2019/12/taxpayers-spend-billions-for-fake-housing-news/

#8 Captain Uppa on 12.13.19 at 3:46 pm

… uppa, Uppa, UPPAAAAAAA!!!

To the moon, Alice!

#9 Linda on 12.13.19 at 3:48 pm

If Mr. Scheer was indeed using Con Party dollars to pay for his children’s private tuition, I’d say no loss there.

As for the stress test et al, so much for OSFI being independent. Or any fiscal responsibility at any level. ‘I have seen the enemy & it is us’.

#10 Ponzius Pilatus on 12.13.19 at 3:49 pm

If you’re thinking taxes are high right now, wait until we get served the bill for cleaning up the environment.
Remember the commercial “pay me now, or pay me later”

#11 Pat on 12.13.19 at 3:51 pm

> And rejoice that the guy who got the most votes was just nailed to a tree.

He also got nailed for using party funds to pay personal bills. Don’t forget about that.

(a) The party offered to pay the difference in schooling costs for his kids from Regina to Ottawa. Not big bucks. Seems legit. Don’t Trudeau’s kids travel the world for free? (b) The news of that was engineered by Harper’s guys. If anything, Scheer is a victim. – Garth

#12 Flop... on 12.13.19 at 3:56 pm

Realtor with a conscience, Hutchyman states ” This is what the BCREA report actually says, “Year-to-date, BC residential sales dollar volume was down 6% … sales were 3.9% lower, while the average MLS®residential price was down 2.2% year-to date”

Yet the headline reads…

“B.C housing market ‘firming’ as home sales, prices rise.”

I’m pretty sure someone thought that quicksand was firm at some stage too…

M45BC

https://www.vancourier.com/real-estate/b-c-housing-market-firming-as-home-sales-prices-rise-1.24033690

#13 Camille on 12.13.19 at 4:01 pm

I might argue the government is pandering to homebuilders way before homeowners. They need to win the vote but the liberals represent the rich. That’s the irony. Very sad.

#14 Rishu on 12.13.19 at 4:10 pm

I wonder if the blue C would had won with Bernier at its helm.

Also, don’t feel bad about the 10% luxury tax on stuff over 100 grand. If you can afford that stuff, I’m sure you can pony up another 10k. Is that fair? Life aint fair.

#15 X on 12.13.19 at 4:11 pm

Press release: https://pm.gc.ca/en/mandate-letters/minister-finance-mandate-letter

It doesn’t really highlight anything about a National V&S Tax, is that normal to not highlight such a blatant money grab when it doesn’t affect Canadians.

I would argue it may affect several Canadians who are working in the US and own property here, same for a Canadian business or Corporation that holds the property in their name. (and I am referring to actual property that the business uses, not an investment condo or something like that)

As I understand the tax would apply to corporate ownership of property. Although I could be misinformed on that.

#16 Clayton604 on 12.13.19 at 4:13 pm

Don’t see anything regarding RV’s, talked to a friend in the business who seemed to think they would be exempt..

Great that the Fed’s are picking how retirees should spend their after tax retirement dollars (boat vs RV).

Didn’t the US try this a number of years ago? Pretty sure it failed miserably.

#17 X on 12.13.19 at 4:17 pm

While I am on the train of thought, when is this proposed budget to be announced? February?

#18 Blog Dog Ford on 12.13.19 at 4:33 pm

ok, so it looks like these are the “chosen ones”? only one of who will be the the chosen one.

https://www.thestar.com/politics/federal/2019/12/13/erin-otoole-and-peter-mackay-are-preparing-to-enter-the-race-to-replace-andrew-scheer.html

I knew he was planning it all along when he was publicly bashing Scheer after the election loss.

#19 YVR Expat on 12.13.19 at 4:36 pm

Welcome to Kanada…where the Komissar’s bleed the rich dry. Is this a sign that Canada is at its demographic and economic end? I’m thinking I may just go all in on the S&P 500, no Maple stocks. Why would capital want to come to Canada after this?

#20 Igor on 12.13.19 at 4:37 pm

Welcome to the Socialist Republic of Soviet Canuckiatan.

“Social­ism is a phi­los­o­phy of fail­ure, the creed of igno­rance, and the gospel of envy, its inher­ent virtue is the equal shar­ing of misery.” as Winston Churchill said… Very sad that a bunch of incompetents are turning my dream land into a waste land.

In the meantime… Learning to sing “Oh, say can you see…”

#21 Yukon Elvis on 12.13.19 at 4:38 pm

There are more poor people than there are rich people. The poor can outvote the rich. So take from the rich and give to the poor and borrow more cash to distribute to the poor. The rich will pay for that too. A winning strategy.They can win with 33% of the popular vote. And they will win again next time cuz they will offer more freebies than the Cons.

#22 FreeBird on 12.13.19 at 4:39 pm

“… bring in a new tax bracket to vacuum $2 billion more a year from high-income earners. Not the super-rich in terms of assets, like Bill Morneau and his billionaire wife…”
—————————
So those who want these new taxes support those controlling it (and all at that level) with far more taxable income and assets being exempt? Trudeaus, Morneaus etc often have resources and people to ensure they min taxes CAs to minimize tax but target a lower easier to hit bracket like MDs. There’s already a shortage in many areas and new family docs are reducing hours and issues they’ll cover. All of us will pay the price.

#23 Carlos on 12.13.19 at 4:42 pm

No biggie on taxing boats, cars, and RV’s worth more than 100K. Seriously? What’s another 10K on that purchase for those folks? Yawn.

#24 Madcat on 12.13.19 at 4:43 pm

Here’s to hoping Jeremy Rudin at the OSFI tells them to shove it.

#25 IHCTD9 on 12.13.19 at 4:44 pm

#3 Ponzius Pilatus on 12.13.19 at 3:37 pm
The only thing missing is a tax on empty F-150 trunk beds.
Only owners using them in the course of their business should be excerpt
——-

Phew, good thing I got a short box!

I know a guy in Sweden over the www, I think that is the way it is over there as far as full size trucks go, commercial uses only, unless you are prepared to pay a mint to daily drive one.

No Trucks!?

Like Sweden needs another reason to encourage folks live elsewhere….

#26 Tommy Cat on 12.13.19 at 4:44 pm

Didn’t something huge happen in England? Another nail in the coffin of the globalism seems like huge news to me. Last time it was Churchill, this time its Boris. Never have so many little guys owed so much to so few.

#27 Juan gretzky on 12.13.19 at 4:46 pm

By electing Scheer as leader, this party showed that it’s still Manning’s and Harper’s Reform party. Here’s a news flash, the next leader will be a westerner.

#28 IHCTD9 on 12.13.19 at 4:51 pm

#16 Clayton604 on 12.13.19 at 4:13 pm
Don’t see anything regarding RV’s, talked to a friend in the business who seemed to think they would be exempt
— –

IIRC, if the “house” has wheels under it, it is not considered a permanent structure, and is therefore not a taxable property on an annual basis.

This why all these “tiny houses” (US phenomenon) have wheels under them – same rules.

There is a dog here who posts now and then who lives in a big RV, he might be able to elaborate.

#29 n1tro on 12.13.19 at 4:55 pm

DELETED

#30 dakkie on 12.13.19 at 5:04 pm

MASS LAYOFFS In Canada! – Employment Is CRASHING Despite FAKE Numbers

https://www.investmentwatchblog.com/mass-layoffs-in-canada-employment-is-crashing-despite-fake-numbers/

#31 YouKnowWho on 12.13.19 at 5:30 pm

…add surveillance state, creepy Internet and “if you see something, say something” and we have arrived in USSR Era Communism V2.0…better, bigger, stronger.

#32 Bezengy on 12.13.19 at 5:30 pm

And you wanna bet that our deficit, (you know the one that will balance itself), will still be going uppa, uppa, uppa. 30 billion in interest every year, not that 97 percent of us care.

#33 Hawk on 12.13.19 at 5:32 pm

<<<>>>

This should be “God help us”!

#34 Smartalox on 12.13.19 at 5:33 pm

Fudging the Stress Test is a sop to those that have Real Estate to sell (current owners, developers, brokers, agents and money launderers – oops! I mean money LENDERS). All the house-horny get out of it are higher debt loads and higher monthly payments.

As for taxing non-resident property speculators, I wonder if this goes far enough. Sure, Lady Huawei will owe a bundle on her two Vancouver luxury properties, though I guess she’s still a ‘resident’ until the trial.

The last election was the first in which non-resident Canadian citizens could vote. If non-resident citizens can choose their representation, why shouldn’t they be facing taxation, too? Even those that don’t own property.

Instead of whacking small to mid-sized business owners, doctors, personal real estate corporations and the like earning at the $200k level, why not call up those nice Canadian move stars like Ryan Reynolds, and get a percentage of HIS box office gross?

Taxing non-resident ownership of property and Canadian citizenship are just ways of monetizing the global trade in peace, freedom, clean air and water, and – by foreign standards anyway – good government and rule of law that Canada exports globally.

If you ask them, I suspect that they’d tell you, that paying 1% for all that is a bargain, even at twice the price.

#35 joblo on 12.13.19 at 5:35 pm

Heard the “mandate” for Freeland, ( ya Kanada nothins free in this land) is to do all of Black/Two faces jobs.

T2 B2F can continue to do nothing, just PMO puppet. Freeby can fight Cons female leader once T2 gets sacked.

Circus yet?

#36 TheDood on 12.13.19 at 5:35 pm

#14 Rishu on 12.13.19 at 4:10 pm
……….
Also, don’t feel bad about the 10% luxury tax on stuff over 100 grand. If you can afford that stuff, I’m sure you can pony up another 10k. Is that fair? Life aint fair…….
__________________________________

It’s not fair at all. Most people who can afford that stuff are wealthy for a reason – because they’re smart, particularly with their money. How many smart, wealthy people are willing to live in a country that continually punishes their success?

#37 under the radar on 12.13.19 at 5:42 pm

just bought an S63 , I could have waited but stepped up to avoid the luxury tax.

#38 Flop... on 12.13.19 at 5:44 pm

#25 IHCTD9 on 12.13.19 at 4:44 pm
#3 Ponzius Pilatus on 12.13.19 at 3:37 pm
The only thing missing is a tax on empty F-150 trunk beds.
Only owners using them in the course of their business should be excerpt
——-

Phew, good thing I got a short box!

I know a guy in Sweden over the www, I think that is the way it is over there as far as full size trucks go, commercial uses only, unless you are prepared to pay a mint to daily drive one.

No Trucks!?

Like Sweden needs another reason to encourage folks live elsewhere….

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

I would be exempt in any case then, Trackie.

My work truck is stuffed like a fat lady’s sock.

It’s like a rolling storage locker, you never know what you are gonna need on any given day.

My wife asks when we go shopping, “how can you have this big of a vehicle and have nowhere to put three bags of groceries?”

If I figure we have bought enough bachelor meals for the week, I get cheeky.

You can put them on your lap…

M45BC

#39 Damifino on 12.13.19 at 5:48 pm

I’ve heard it said the current federal liberals won’t last more that two years, tops. But why not, I wonder?

The BC NDP has the slimmest possible grip on the legislature (thanks to three ineffectual Greens) yet it seems certain they’ll remain in control until May 2021. That would constitute a full term. And since, after two and a half years, the BC Liberals are still just ghosts of their former selves, there’s reason to believe the NDP might capture another win.

Trudeau is in a much better position than John Horgan. Why should he not last four years? He could guarantee it by continuing to talk mean game while doing essentially beyond piling on more debt and pestering the successful.

I believe he’s equal to the task.

#40 ts on 12.13.19 at 5:55 pm

No matter how low rates are or how much they dismantle the stress test, if there is a recession with significant job loss as in this past November, people will not be buying houses.

#41 I dont understand on 12.13.19 at 5:56 pm

I don’t understand the people applauding all of these taxes…

No biggie on taxing boats, cars, and RV’s worth more than 100K. Seriously? What’s another 10K on that purchase for those folks? Yawn.

Also, don’t feel bad about the 10% luxury tax on stuff over 100 grand. If you can afford that stuff, I’m sure you can pony up another 10k. Is that fair? Life aint fair.

Have you people given up? Are you jealous? Do you not strive for anything better? The beautiful thing about this country is the possibilities are endless. Unfortunately we’ve become angry with the rich instead of aspiring to be them. If you want more in life but don’t have it you are the only one to blame. There are alot of wealthy people who have worked hard for what they have and deserve it. Now they’re being taxed into oblivion. Everyone is going to wonder where their job went in the near future.

#42 Deplorable Dude on 12.13.19 at 6:02 pm

#26 Tommy Cat….”Didn’t something huge happen in England? Another nail in the coffin of the globalism seems like huge news to me. Last time it was Churchill, this time its Boris”

——

Yep the UK basically had its 2nd referendum on Brexit yesterday.

Some amazing results….Tony Blair’s old constituency flipping to Conservative, The Lib Dem leader losing her own constituency. Some labour constituencies flipping Conservative for the first time EVER.

#43 Work and Tumble on 12.13.19 at 6:06 pm

I’m that trades guy who has done all the right things, built a good business from nothing but long work days and good value and quality work . I treat customers and staff professionally and i keep my word.
I feel resentment for the Liberal Government.
I never did think it would get this out of hand , that I don’t want to invest in Canada anymore and might pack it in and move on.
Im 55 next year and thanks to Garth i have options and freedom. Thanks Garth.

This needs repeating.
The party offered to pay the difference in schooling costs for his kids from Regina to Ottawa. Not big bucks. Seems legit. Don’t Trudeau’s kids travel the world for free? (b) The news of that was engineered by Harper’s guys. If anything, Scheer is a victim. – Garth

#44 DON on 12.13.19 at 6:07 pm

Trudeau takes the Conservatives ‘defang the stress test’ to shore up votes in case of a snap election. With peak prices and the tax as a damper to speculators, who has the money to buy these cookie cutter houses at already inflated prices. Especially in our current economic environment.

No longer is a family paying $500K for a house, it is up to $750K – 1M+. We may not run out of houses but we are surely running out of people who can afford to buy or willing to buy at inflated prices (even the monthly payments are slowly becoming out of reach even at low interest rates. But then again, politics is perception. Trudeau wants to appear to be helpful, get some revenue and keep out speculation and maybe foreign buyers next.

The US/China trade deal (phase 1) is to hold back from further escalations (unless I am mistaken). The big deal with come before Trumps election or not (depending on China’s resolve). They have more control over their population and less need to rush (imo) – China plays the long game.

If it gets out that Harper was behind the orchestrated boot in Scheer’s backside there will be more turmoil in the Party and in the eye’s of the public, especially as Harper was voted out. Harper seems to be taking the party down with him. Getting a little creepy to say the least.

#45 Figmund Sreud on 12.13.19 at 6:08 pm

… rejoice that the guy who got the most votes was just nailed to a tree.
_________________________________

Well, … all I can think of is, … “It’s All Over Now, Baby Blue” – Bob Dylan. Yes, it’s c. 1965 ballad – another era – but still, … it’s the title!

F.S.

#46 SoggyShorts on 12.13.19 at 6:08 pm

#160 Tommy Cat on 12.13.19 at 3:47 pm
Sail Away. Believe what you want. In the 1960s Time asked in God was dead. They believed that it was only a matter of time until we found other life with SETI. As the decades past, and we have found nothing. Many of the folks that didn’t believe have revised their thinking as a result. Anyone who sees the beauty in higher level math, physics or chemistry quickly comes to the conclsion that life is not random.
******************
How does not finding other intelligent life yet prove a god?

There are only 2 possibilities:
1. There is no other life out there.
2. There is other life out there.

If there isn’t, and god is real, then how wasteful and stupid is his design? Billions and billions of stars in an ever-expanding universe with one random planet containing the only life?

Also, I refute your statements that “many” scientists believe in god, and that “anyone” looking at higher level math etc concludes a higher power with:
No, they don’t.

Equally well-sourced, equally valid.

#47 Sail away on 12.13.19 at 6:11 pm

#2 Blog Dog Ford on 12.13.19 at 3:31 pm

“Dog help us.”
someone is having fun with anagram. LOL

——————————–

Here’s what I find:

“She do plug”
“Pedo shlug”
“Shoed gulp”
“Sloped hug”
“Holed pugs”
“Dogs help u”

#48 Shawn Allen on 12.13.19 at 6:11 pm

An RV Buyers strike?

#23 Carlos on 12.13.19 at 4:42 pm

No biggie on taxing boats, cars, and RV’s worth more than 100K. Seriously? What’s another 10K on that purchase for those folks? Yawn.

*************************************
A lot or most people who buy RVs and boats over $100k are very smart with their money. That is often part of the reason they got relatively wealthy.

They are not fools. No one likes to be treated unfairly.

Why is their spending to be discouraged while middle class spending is to be encouraged? Maybe becasue cars are made in Canada (in part) but RVs and boats are imported? If so, USMCA challenge coming?

I predict a buyers strike on items that attract an extra 10% tax.

There are tons of giant RV dealers in Alberta (big dealers selling big rigs). Not sure if they or the manufacture’s finance their inventory but they have a ton of inventory. (In the car business, if I recall correctly, the dealers get financing to cover maybe 90 days or so and then are on their own)

There was probably already some of these dealers going under. What’s that sound? glug, glug, glug…

#49 Sail away on 12.13.19 at 6:17 pm

“The new luxury tax, for example. If you buy a boat or a car or an RV worth more than a hundred grand a fat 10% tax will be applied to the price.”

————————————–

This is great for negotiation as the eternal opportunist. Choose your toy that usually costs $110K and offer to buy it as soon as the seller drops the price below $100k, because… tax.

Leave your number and wait for the call.

#50 david on 12.13.19 at 6:23 pm

re stress test: what if Morneau reviews it and decides to do nothing. your quote simply says, “look at it”. it doesn’t say, reduce it (or else).

#51 Capitalist on 12.13.19 at 6:28 pm

$2,314 for a one-bedroom in Toronto? What the meow? Why haven’t I heard of civil unrest in Toronto? Those rental prices even for slumlord 500 Dawes Road and J&F Apartments go from $1,700 for a studio.

https://www.blogto.com/real-estate-toronto/2019/12/average-cost-one-bedroom-rental-toronto-climbs-2314/

#52 Alessio on 12.13.19 at 6:34 pm

I’m the impacted so-called rich dude. And I actually wouldn’t care about being soaked dry if it this country was at least habitable instead of frigid, icy, snowy, dark, dull and gloomy.

#53 brian1 on 12.13.19 at 6:36 pm

If Bernier was chosen they would have won.

He could not win his own seat. – Garth

#54 ImGonnaBeSick on 12.13.19 at 6:37 pm

DELETED

#55 Nothing Surprises on 12.13.19 at 6:37 pm

The new luxury tax, for example. If you buy a boat or a car or an RV worth more than a hundred grand a fat 10% tax will be applied to the price. That’s on top of HST, and you pay the bill in after-tax dollars. Just imagine what this is going to do for the recreation business – Garth
——————————————————————-
QUESTION:

If you leased a hundred grand vehicle would the 10% apply?

POSSIBLE ALTERNATIVE FOR PURCHASING:

If an individual can afford to pay for items as above, it may be financially advantageous to open an IBC (cost less then $10,000) and have the funds transferred in to the IBC and used to purchase the item which the individual leases from their own IBC. The purchase money is spent in Canada……..excepting the unfair 10%!

HST could also be claimed back.

#56 earthboundmisfit on 12.13.19 at 6:40 pm

“The news of that was engineered by Harper’s guys. If anything, Scheer is a victim”. – Garth

An inside hatchet job for sure. Kory’s and Jenni’s fingerprints all over it, much like the crucifiction of Patrick Brown.

#57 meslippery on 12.13.19 at 6:40 pm

The new luxury tax, for example. If you buy a boat or a car or an RV worth more than a hundred grand a fat 10% tax will be applied to the price.
—–
Sale RV is $99k if you first buy the wheels and tires for $40k. Ta-Da

#58 IHCTD9 on 12.13.19 at 6:51 pm

#38 Flop… on 12.13.19 at 5:44 pm

My wife asks when we go shopping, “how can you have this big of a vehicle and have nowhere to put three bags of groceries.

—— —

Heh, back when I worked in construction, we only had vans. They would not have taken 3 bags of groceries either :).

#59 Randy on 12.13.19 at 6:51 pm

…as always the Quebec Laurentian Globalist Elites win again….and Maurice Strong is laughing in his grave. Canadians are the dumbest.

#60 crowdedelevatorfartz on 12.13.19 at 6:54 pm

@#47 Sail away
“Dog help us”
======

Slug Depo

#61 crowdedelevatorfartz on 12.13.19 at 6:58 pm

@#42 Deplorable Dood
“Some amazing results….Tony Blair’s old constituency flipping to Conservative, The Lib Dem leader losing her own constituency. Some labour constituencies flipping Conservative for the first time EVER.”
+++++

I’m thinking it was more people voting “Anything but Corbyn the Commie Nutter” than a vote for Brexit….

#62 Flop... on 12.13.19 at 7:02 pm

Practicing my French on this blog is one of my hobbies.

I started with Cher Bill.

Then decided I didn’t order that.

Cher No Bill.

Then arrived at this.

Chernobyl.

How’d I do? I think my French is getting better with every lesson.

I’m not sure they are the same thing, but seem equally destructive…

M45BC

#63 crowdedelevatorfartz on 12.13.19 at 7:05 pm

@ Sailing Away.

Elevator riding.
Up, Down, people with frowns.
The doors open.

haiku over…….

#64 Bezengy on 12.13.19 at 7:10 pm

Who needs a truck? Driving my Sierra through Jordan last week and the OPP has the road blocked due to a fallen tree. I tell the lady officer I have my Husqvarna in the back (like most hillbillys), and I can open the road, and she says “go for it”. Would’ve had the job done by the time the city showed up if I didn’t run out of gas. Kept the wood too!

btw…those city workers really need to get a life….no sense of humour at all.

#65 IM in C on 12.13.19 at 7:11 pm

Andrew Scheer went into an election that was his to win. He lost. For that reason alone, he should have resigned election night. He thought he could brass it out. Surprise.

#66 Figmund Sreud on 12.13.19 at 7:14 pm

An inside hatchet job for sure. – #56 earthboundmisfit on 12.13.19 at 6:40 pm
____________

Maybe. Just maybe, … a culprit suggestion at:

https://thetyee.ca/Analysis/2019/12/12/Harper-Comeback/

And Now, the Harper Comeback. Just Read the Signs

All the ways he’s campaigned for leader almost as soon as Scheer won.

… you be the judge!

F.S.

#67 macduff on 12.13.19 at 7:17 pm

I’m more curious (and scared) about changes to RRSPs, TFSAs, LIRAs etc. Do you they not want people to retire? How will that appease the millenials who are urging us boomers to leave the workplace? So anyone with a have decent RRSP will be whacked? How does that mesh with the financial advisor who says you need at least $1m + to fund an adequate retirement? So many unanswered questions.

#68 Nonplused on 12.13.19 at 7:21 pm

Garth, how can you not have some small place in your heart for Scheer after that photo? I mean sure, he blew the election and now we have the horrors you listed coming down the pipe, but at least he likes dogs. As for the rest of the post….

Well, I guess it was all predictable. Without all that juicy oil money coming from Alberta the Federal Government is pooched financially. Desperate people do desperate things.

I am not too concerned if the stress test goes away entirely. The banks should be the ones responsible for who they lend money to and who they don’t. However CMHC should not be forced to cover risky loans so they should implement their own standards. They need to consider their own viability in the event SHTF.

The V&S tax will be a bureaucrats dream. What nightmare that will be to implement. How much data are they going to have to collect to find out which properties are vacant intentionally for speculative purposes? How many are there? 0.5%? 2%? 5%? Who leaves a property vacant unless they have no choice? But I suppose it will help with the job numbers. I for one, would rather push pencils into my eyes than work in that department but I suppose there are people out there who would rather do that than nothing.

But it makes no economic sense. Most everyone who invests in property does so to maximize economic gain, and that means finding a tenant if the property is not for personal use. Even people who own condos on the ski hill tend to turn them over to the hotel pool when they aren’t using them. Not much money to be made that way after fees but it is better than zero.

The way the typical real estate speculation works is that you buy a property on the light blue part of the monopoly board, put a house on it, and collect rent and hope it appreciates. If things go well you move around the board clockwise. Nobody buys property to just let it sit there unless it’s bare land and the city doesn’t go that far yet, in which case the idea is to develop it in the future.

So I say the V&S tax is but a job creation program. I would be surprised if the actual number of vacant properties is as high as 0.5% other than the usual vacancy rate due to other factors. And of course this tax will be subject to “creep” in the years ahead. Eventually it will cover all properties whether foreign or locally owned and whether rented, owner -occupied, or vacant.

The new luxury tax is also a nightmare. They already have a luxury tax, it’s called the HST. Why don’t they just introduce a sliding scale HST like they do with income taxes. Oh I know, not as many bureaucrats would be required. Why have just one tax when you can have 2? But what exactly is a luxury? Why is a $100,000 RV a luxury when one costing $99,999 is not? Expect tax creep here too. Eventually the luxury tax will apply to everything that isn’t a tent. Why aren’t skis and lift passes a luxury? Why isn’t a Laramie package on a farmer’s work truck a luxury? Why isn’t a $60,000 wake boat a luxury? What about granite counter tops and hot tubs? Trust me, they all soon will be.

And of course the nasty doctors, lawyers, vets, surgeons, dentists and small business guys making two hundred grand a year and employing people must be whacked because that is where the cash flow is. There aren’t enough truly rich people to get the money from them without causing them to move to the Caymans. So expect exit taxes soon too. But the nasty doctors, lawyers, vets, surgeons, dentists and small business guys making two hundred grand a year and employing people will have to get the cash from somewhere, so they will just increase their rates. Remember, we all pay the same effective tax rate, it is just buried in price. The only reason there is a graduated tax rate is because it just isn’t worth it to audit someone making $30,000 a year. So the system is designed to concentrate the cash flow in a smaller number of points so tax auditing doesn’t overwhelm the system. But not the billionaires because they fund elections and the Caymans is only a 5 hour flight away in their private jets. Plus they don’t have any money, they have assets. The money they do get is already taxed at the highest rates.

All these new taxes prove only one thing to the thinking skeptic. The government is desperate. They are broke and they know it. So they are trying to sneak in higher taxes everywhere without just doing the obvious and raising income taxes and the HST. That’s all they need to do. It doesn’t matter where a tax is applied in the economy, we all pay the same effective rate through the price mechanism. Any economist knows this. But a politician only has one instinct, and that is to not admit this to be true.

Remember folks, we all pay the same tax rate. It is hidden in price. When the government goes after the dentist, she just raises her rates until her take home is what it should be according to “the invisible hand”. You pay it if you want your cavity filled or a root canal. She does not. She doesn’t have any money, just an education and a drill. The invisible hand dictates that prices will adjust such that the take home pay of a dentist is always reflective of her in demand skills relative to a burger flipper or a guy riding a lawn mower. It just gets put in the price. Not even socialist regimes have been able to stop this phenomena without destroying productivity and causing shortages of everything, including dentists. There is no way around economics.

The first rule of economics is that there is no such thing as a free lunch. The first rule of politics is to ignore the first rule of economics. Or, “if you put the government in charge of the Sahara desert, there will soon be a shortage of sand.”

#69 crowdedelevatorfartz on 12.13.19 at 7:25 pm

@#52 Allessio the 1% ‘er
“I actually wouldn’t care about being soaked dry if it this country was at least habitable instead of frigid, icy, snowy, dark, dull and gloomy….”
++++

Move to Vancouver
It’s expensive,dark, dull and gloomy….
A step up from what you’re used to……

#70 AGuyInVancouver on 12.13.19 at 7:28 pm

#26 Tommy Cat on 12.13.19 at 4:44 pm
Didn’t something huge happen in England? Another nail in the coffin of the globalism seems like huge news to me. Last time it was Churchill, this time its Boris. Never have so many little guys owed so much to so few.
_ _ _
Yes something huge did happen. The continual downhill slide of an empire the sun never set on, to merely a united kingdom, to finally just a rump country named England. Like Poland but with better shopping.

#71 Just snootin' on 12.13.19 at 7:30 pm

Re the cover photo:
I spend a lot of time in the woods and if I came across a guy in suit and tie, i would think him rather daft and watch from a distance before approaching to see if he’s okay.

#72 Disappointed on 12.13.19 at 7:38 pm

If they start taxing more our TFSA, RRSP, RESP, etc to bring more tax revenue as well as increasing the capital tax from 50% to 75%… I am DONE! I work for an American company and will ask to be transferred to the states with my family… I make ok money but I feel with all of these taxes, I’m struggling.. Enough is enough…

#73 Both Sides Now on 12.13.19 at 7:44 pm

On the one hand, I do think our top political leaders are underappreciated by the crowd who thinks paying them anything above a school principal’s salary is needless extravagance. If the party wants to supplement the leader’s salary, I guess that’s OK.

OTOH, Rockcliffe PS is, predictably, rated really highly by the Fraser Institute. It isn’t like the resident at Stornaway needs to send his kids to Misery & Privation Jr. PS in Alta Vista.

If I was a struggling farmer, standing in Brandon, bombarded for years with requests to send cash to the Conservatives to defeat Justin — now more than ever — every little but helps, and I’d sent $100 (their median donation), I doubt I’d be best pleased to find out it went to private school tuition for dimples’ dumplings.

Easy political sniff test: Would the brass rather the grassroots didn’t know?

#74 ImGonnaBeSick on 12.13.19 at 7:46 pm

#68 Nonplused on 12.13.19 at 7:21 pm

So I say the V&S tax is but a job creation program

—-

Aren’t almost all government jobs just a bunch of “make work projects”?

Apologies to Mr. Garth for the need to delete my last comment.

#75 Armpit on 12.13.19 at 7:48 pm

Next will be taxing empty rooms in a house.

#76 Deplorable Dude on 12.13.19 at 7:50 pm

#61 crowdedelevatorfartz….” I’m thinking it was more people voting “Anything but Corbyn the Commie Nutter” than a vote for Brexit….“

If that was the case the Lib Dems would have picked up more seats. Instead their leader lost her job…lol…

Boris called an election to get a majority to enact Brexit.

The people have spoken (again)…and the globalists don’t like it.

#77 Igor on 12.13.19 at 8:00 pm

#72 Disappointed

Agree. Moving 200 km south and earning 1.5 times as much gross and dog knows how much more net sounds more and more interesting. I love Canada but patriotism has its limits.

#78 Sail away on 12.13.19 at 8:03 pm

#63 crowdedelevatorfartz on 12.13.19 at 7:05 pm
@ Sailing Away.

Elevator riding.
Up, Down, people with frowns.
The doors open.
haiku over…….

————————-

Hahaha- love it!

#79 MF on 12.13.19 at 8:03 pm

Our only hopes are:

-These changes don’t come into fruition, because any idiot would see they are dangerous, ill advised, and stupid.
-Any future government will just reverse these policies, if they are ever implemented in the first place.

We all remember how they tried the same simple minded attack on small business people a few years ago but faced intense backlash. They then were forced to embarassingly backtrack when everyone called them out.

Some transient, temporary, minority government who lost the popular vote should tread lightly, if they were smart.

MF

#80 MF on 12.13.19 at 8:04 pm

#74 ImGonnaBeSick on 12.13.19 at 7:46 pm

Do military, police, and nurses qualify as “make work projects” in your (delusional) book?

MF

#81 Steven Rowlandson on 12.13.19 at 8:09 pm

I am thinking Andrew Scheer made the right decision regardless of the reasons for resigning. When the super debtors of Canada and the rest of the world have their day of reckoning and punishment Andrew needs to be out of the limelight and forgotten about… It will be a very ugly period of time for those seen to be part of the problem.

#82 Long-Time Lurker on 12.13.19 at 8:09 pm

My outlook:

If no wild card is thrown in, the North American stock markets are going to have a bull run to the end of 2019. (Santa Claus rally.) There’s nothing to derail it. It looks like impeachment is a non-event to the markets thus far.

They were going to do that 1% tax in New York City but canned it because they didn’t want to crash their real estate market.

They tried the luxury tax in the U.S. in the 90’s and canned it because it scuttled their luxury industry.

Check on a search engine.

#83 Long-Time Lurker on 12.13.19 at 8:11 pm

#117 Shawn Allen on 12.13.19 at 10:52 am
Repo Market problems mean?

#92 neo on 12.13.19 at 7:30 am
So still no comment about the Repo markets Garth? I started talking about it in September and you said no big deal and now the Fed is going full fire hose with $500 billion in liquidity the next 30 days to try to calm things down and prevent a systemic crash. Fed balance sheet will not only wipe out the tapering they’ve done the past couple years but soar to GFC highs of $4.5 trillion.

***********************************
Someone posted a few days ago that the repo problem was becasue the banks refuse to lend to each other because Deutsche Bank is going to go bust and no knows which U.S. banks have exposure in money / derivatives owed to them by Deutsche Bank that could default.

That sounded very logical except wait, the repo market is secured lending. Secured by treasury bills. So that is not the problem?

I believe the problem has been said to be that the banks have no extra cash reserves to lend other banks because so much of what they have they have to keep due to various new regulations. In effect the cash reserve ratio of U.S. banks is way up?

In summary, I am not sure what this repo issue is all about or if it will morph into a bigger problem. I would not jump to any panic just yet.

>So, the U.S. banks are short $320 billion on their balance sheets?

“This chart shows the more than $320 billion of total repo market support from the Fed since Sept. 17, when for the central bank began pumping in daily liquidity after overnight lending rates jumped to almost 10% from nearly 2%….”

The repo market is ‘broken’ and Fed injections are not a lasting solution, market pros warn

Published: Dec 7, 2019 9:35 a.m. ET

Banks prefer to keep money at Fed instead of lending to other banks

The Federal Reserve’s ongoing efforts to shore up the short-term “repo” lending markets have begun to rattle some market experts.

The New York Federal Reserve has spent hundreds of billions of dollars to keep credit flowing through short term money markets since mid-September when a shortage of liquidity caused a spike in overnight borrowing rates.

But as the Fed’s interventions have entered a third month, concerns about the market’s dependence on its daily doses of liquidity have grown.

“The big picture answer is that the repo market is broken,” said James Bianco, founder of Bianco Research in Chicago, in an interview with MarketWatch. “They are essentially medicating the market into submission,” he said. “But this is not a long-term solution.”

This chart shows the more than $320 billion of total repo market support from the Fed since Sept. 17, when for the central bank began pumping in daily liquidity after overnight lending rates jumped to almost 10% from nearly 2%….

https://www.marketwatch.com/story/the-repo-market-is-broken-and-fed-injections-are-not-a-lasting-solution-market-pros-warn-2019-12-04

#84 Nonplused on 12.13.19 at 8:11 pm

#74 ImGonnaBeSick

Fair point. But if the government is going to engage in make work projects I’d rather they build bike paths. At least some of the taxpayers might use those. A bunch of spreadsheets aren’t any use to anybody.

#85 Nonplused on 12.13.19 at 8:13 pm

#74 ImGonnaBeSick

PS and campgrounds. The one thing we luxury RV owners could really use is more campgrounds.

#86 MF on 12.13.19 at 8:19 pm

#77 Igor on 12.13.19 at 8:00 pm

Take the good with the bad.

Gun violence has been spiraling out of control down south. But hey who cares about your safety when you’ll have another 10k in your pocket to live lavishly with.

MF

#87 akashic record on 12.13.19 at 8:23 pm

#75 Armpit on 12.13.19 at 7:48 pm

Next will be taxing empty rooms in a house.

When I grew up, we had tenants, selected by the government and assigned to share the “too big for your need” apartments, houses that we used to own before they were nationalized without compensation and rented out to us.

Don’t share this with Trudeau.

#88 Marcus Aurelius on 12.13.19 at 8:36 pm

80+ comments and folks are worried about TFSA rule changes, and those pervasive 100K+ RV prices, but not one comment on the two things that should matter to every Canadian with more assets than debt:

(1) possible removal of the CG exemption on your house (primary residence); and
(2) increase (back again?) on the CG inclusion rate.

The first is least likely: even for taciturn Canadians, that would lead to violence in the streets (or, at least, rancorous grumbling at helicopter parent orgies). How many Canadians have almost all of their ‘net’ worth in that overvalued pile of bricks?

For both, billionaires don’t ‘need’ to sell their real estate portfolios (in Canada) or clean out their stock gains to pay a private school fee or an unexpected bill.

They can hold till the next spin of the invertebrate Canadian Politics wheel, and a government that retrenches on these two ‘not so good’ ideas.

It’s the 200K/year working stiffs with a bit of untimely bad financial luck or planning who are headed to Calvary three nails short if those two changes happen.

Good job, voting Liberal forever, Glenfiddich swilling, Pusateri-shopping ‘professionals’: that means you, eunuchs in St. Paul’s, Lawrence Park, Don Valley East/West, York North…

Here’s a gun. Shoot me, I’m a smug Canadian who lives in forever Red Toronto (where the money is, Mr. Dillinger).

#89 Flop... on 12.13.19 at 8:36 pm

Before I moved to Canada I was living in equally barmy Scotland, I love punishment.

That was just after the turn of the century and a lot of people openly talked of separation way back then.

Some guys I talked to didn’t like the feeling of being treated like second class citizens.

The main discrimination I witnessed was when I took some money from Edinburgh down to London.

Most of the money had Bank of England printed on it, but some shopkeepers wouldn’t accept Bank of Scotland bills, some people saw it as inferior and didn’t want to get stuck with it, even though they were equally legal tender worth the same amount.

You could always count on the local pub to take it…

M45BC

#90 Ustabe on 12.13.19 at 8:47 pm

Everyone needs to relax a bit.

Rather than bury any moves inside an 80+ page omnibus bill like Stephen Harper used to like to do, these are what are known in the political world as “trial balloons”.

Float them out there and see what the reaction is, modify as needed.

Much better would be time spent encouraging your party, the CPC, to stop eating their own, stop the internal power struggle and develop both a platform that resonates and the people who can propel that into the Canadian voter’s consciousness.

Frankly, I’m surprised that Garth presents this info in the manner he has…adding fuel to a fire that does not need any while diverting you from the true problem at hand.

To be clear, the problem right now is not the Liberals or Trudeau, it is the movers and shakers within the so-called Conservative Party of Canada.

#91 Dutchy on 12.13.19 at 8:50 pm

I know many people that would love to pay more taxes.
But……

#92 Clayton604 on 12.13.19 at 8:54 pm

Don’t forget.. BC already has a 20% provincial sales tax on vehicles that cost in excess of $150K.

How Much Tax does this add up to in total.

$150,000 Car
30,000 20% PST
7,500 5% GST
15,000 10% Federal Luxury FU tax

$202,500 TOTAL (52,500 in taxes) but wait.. you pay for that with after tax dollars.. so

$403,386 Income
(200,886) Income tax @ 49.8%
$202,500 Net

So on our $150K car.. you pay $52,500 in sales taxes and 200,886 in income taxes for a grand total of $253,386 in total taxes.. which is 169% tax load on your $150K vehicle… but you know.. its just a little bit more more they say..

#93 Robert Ash on 12.13.19 at 8:57 pm

RE; # 59 Randy’s reference to Maurice Strong… It is in fact quite likely that Maurice Strong is laughing, at least from some where… In looking at the Climate Change, debate, and the whole Earth Change movement, it is interesting that Maurice Strong’s mandates, are still prevalent in Canada. Gerald Butts, is a Disciple, of MS, and it was after all Maurice Strong, a Manitoba native, who started the Climate Change debate, based to some degree, on his opinions, about the World Population crisis… Maurice Strong is the founder of World Wildlife,World Economic Think tanks and father of our lovely NGO’s.. He was CEO of Power Corp, then PetroCanda, and died in Bejing, after the Iraq Food for Oil, debacle which caused him to flee to Bejing, where is Sister was pals, with Mao… Canadian Oil and Gas folks don’t know the forces that are pushing thier containment.. Mostly based on Maurice Strong’s world view… But I wonder what he would say today, … He lived a Priveledged Life, to only deny the same to others it seems….. A man whose own excesses, led him to want to Globalize and Change the world… Certainly not in favor of Canada’s resource based economy. But why… Religion, not likely,… Ideology. Sure. I wonder how many Canadians, are aware of this connection, to Canada. See a pattern..

#94 Daveyboy on 12.13.19 at 8:57 pm

Moved to the U.S. three years ago. My wife has a great job., I no longer work. We were able to buy a great house.,have our first child , save money , go on vacation and have a great life.

Feel sorry for you Canadians. Its tough up there!

#95 Spectacle on 12.13.19 at 9:01 pm

“……..government spending and the river of red. Penalize successful people….”

Thanks Garth, just explained another reason why some of us lose sleep over our Country.

#96 gfd on 12.13.19 at 9:02 pm

Mordough is lying again, 71,000 job loss it ain’t so.

#97 yvr_lurker on 12.13.19 at 9:04 pm

Let’s all just wait and see and not get our knickers in a twist over nothing we can do about it anyway. One can rest assured that they will not do anything to tax those with inherited wealth who live off dividends and other perks.

I don’t think they are coming for me either, unless they will raise the top marginals, which are already very high. I have no mechanisms to hide income.

What I would really like to hear them say is that they will go after with gusto all those people earning big bucks overseas, away from the eye of the CRA, and then report a 20K annual income in Canada. All the while their family residents claim all sorts of benefits that my uber high taxes contribute to. Go after this lot, and make it a 3% per year fee on vacant homes by non permanent residents of Canada. Discourage big-time offshoring of cash parked on the residential monopoly board. I am all in on implementing these rules.

#98 Barb on 12.13.19 at 9:06 pm

OK, if that is Trudeau’s plan, we the people have a plan too…in the interest of stemming the effects of climate change (and his carbon tax):

Trudeau et al have just taken their last “taxpayer funded” flights. No more G-something junkets, no more flying to the provinces to conduct his embarrassing town halls, no more dropping in at the UN. And certainly no taxpayer funded Christmas trip to a buddy’s private island.

Use conference calling.
Hell, use Skype.

#99 NewNormal on 12.13.19 at 9:22 pm

Have the opportunity to take a bigger North American job and had lobbied to stay in Canada with a US work visa… North American role, so I convinced my employer that if I get it, I should be able to stay here and travel.

Now I’m not sure. Big salary and big tax bill … Still willing to remain but the direction that the Feds are going makes me think… Why not get paid in USD, with a lower cost of living and tax rate.

The person doing the job now is south of the boarder, so a net new high paying job to add to the Canadian economy. But if it’s only going to be more expensive to live here (increased tax) and the tone is turning against those who work hard and succeed, why not just take the easy route (corporately) and move South?

Not to mention the ancillary benefit of being at HQ and networking…

#100 westcoastjan on 12.13.19 at 9:24 pm

Garth… puhleeeez, I beg you
No more polyteeshin mugs on Friday nights! Ugh!
This blog devotee sits down wine in hand, dead to the world after another week at the slave factory, looking to be cheered up with an awesome dog pic!!!!
I hereby submit my petition for fun dog pics only on Fridays. The rest of the week you can do what you want, but puhleeeez leave us with something to look forward to on Fridays. Sorry but looking at Morneau, or any of the other polys we all love to hate seriously diminishes happy hour fun!
Thanks bud, and cheers!
Jan

#101 Jsto on 12.13.19 at 9:46 pm

What I don’t understand is people seeing no problem with the debt economy in Canada. It’s property changing hands in Vancouver… that’s about all there is… until when? If prices were anywhere close to what people could actually afford, wouldn’t they support the economy and allow people to spend on things other than a roof over their heads?

#102 Smoking Man on 12.13.19 at 9:48 pm

finaly good to see this.

#103 Sail away on 12.13.19 at 9:53 pm

#86 MF on 12.13.19 at 8:19 pm
#77 Igor on 12.13.19 at 8:00 pm

Take the good with the bad.

Gun violence has been spiraling out of control down south. But hey who cares about your safety when you’ll have another 10k in your pocket to live lavishly with.
MF

————————————

No it hasn’t:

6 gun deaths per 100,000 people, and of those, 34% are violence from others… yielding… .00002% chance of dying from a violent gun attack in the US.

That’s 1 violent gun death per 50,000 US Americans, with the majority being targeted gang members.

Most people would take those odds for an extra $10K.

Unless… are you a gangster, Igor?

#104 dutch4505 on 12.13.19 at 9:59 pm

We have hundreds of Canadians that own second homes on Lookout Mtn (Sudden Valley). We are just 25 miles south of USA border from lower mainland BC. Most sit empty for the majority of the year.

We should tax them.

#105 Millennial Realist on 12.13.19 at 10:00 pm

Garth, our inter-generational bickering aside, I do think you’d be a good candidate to replace Scheer, and make that party ‘progressive’ once again.

So, go for it!

But please promise that you will never use party donor funds to put Bandit in a luxury private doggie daycare.

#106 Shawn Allen on 12.13.19 at 10:11 pm

Robert Ash at 93 never met a block of text yet that would not fit in one paragraph.

#107 Interstellar Old Yeller on 12.13.19 at 10:13 pm

#51 Capitalist on 12.13.19 at 6:28 pm
$2,314 for a one-bedroom in Toronto? What the meow? Why haven’t I heard of civil unrest in Toronto?

Because dirty renters like me (old building, rent protected) are doing this (from the article you linked):

If you happen to be one of the lucky Toronto residents whose building is still somewhat affordable, hold on to that apartment and never let it go

That’s one way to make it work.

#108 CalgaryCarGuy on 12.13.19 at 10:15 pm

Re #28 by IHCTD9
“IIRC, if the “house” has wheels under it, it is not considered a permanent structure, and is therefore not a taxable property on an annual basis.

This why all these “tiny houses” (US phenomenon) have wheels under them – same rules.

There is a dog here who posts now and then who lives in a big RV, he might be able to elaborate.”
——————————————————————
This post ‘may’ be in reference to myself as I occasionally post and do live in a big RV. However, I have it parked on land that I rent. I have read the local bylaws and I skirt them somewhat but I do try to live under the radar. My landlord is a lawyer which would help in case of a dispute. My few neighbours accept me here. I am very quiet and private back in the trees.
My lifestyle here is cheap but is hard work due to a unique setup that includes heating with firewood. It is -15 here tonight and I have two fireplaces burning. I get a laugh out of the new ‘OK Boomer’ retort. I am 62 so I am a late boomer. A snowflake millenial wouldn’t last a month here. Too much work and not enough bandwidth, LOL.

#109 Kothar on 12.13.19 at 10:15 pm

Don’t forget we have “enhanced” CPP taxes coming on in next few years as well. Enacted by Trudeau . Before that it was Wynne and the ORRP fiasco that might have been. Liberal and ndp policy are ruinous to any savings people may want.

#110 Shawn Allen on 12.13.19 at 10:21 pm

Repo Market

83 long time lurker said / asked?

>So, the U.S. banks are short $320 billion on their balance sheets?

****************************************
No, their balance sheets assets and equity do not change at all when they borrow short term cash from the Fed or other banks using the rep market.

They exchange things like Treasury bills on their balance sheet for cash. They are short cash reserves. But they have to have assets like the treasury bills to use the rep market.

It’s an overnight loan that they tend to keep renewing each day. They sell the treasury bills to the Fed or another bank for cash while promising to buy them back the next day at a slightly higher price. In substance it is an overnight loan. In form it is a sale with an agreement to repurchase next day. repo means repurchase agreement.

Maybe the other banks prefer to keep cash at the Fed instead of lending it other banks. Or maybe, as I said above they don’t have excess cash. The regulations around cash reserves are way up. U.S. Banks need a lot of cash reserves now.

Or maybe they have higher interest rate borrowers and prefer not to lend to other banks at the rate the FED is trying to impose.

Whether the FED getting into the repo market is a big worry, I do not know.

#111 Bucket list on 12.13.19 at 10:23 pm

Been at my job for 30 years. Have managed to save
enough to make a list of “wannas” for retirement. Let’s see…new truck, nice cruise, new bike (or 2 or
5…..Total allocated is approaching $150k. Wont pay a
luxury tax on any of it as no one item over $100k.

But if my one and only “wanna’ was an RV to travel “marika” (and Canada too) or a boat to sail the world, for the same total price I’d pay a luxury tax??

Is this how it worx?? WTF??

#112 canuck on 12.13.19 at 10:24 pm

The party offered to pay the difference in schooling costs for his kids from Regina to Ottawa. Not big bucks. Seems legit. Don’t Trudeau’s kids travel the world for free? (b) The news of that was engineered by Harper’s guys. If anything, Scheer is a victim. – Garth
_______________________________________________

Victim? The smear job and his response shows that he doesn’t have the guts to fight. He isn’t a leader and shows he would have been a weak PM. When the going gets tough, Scheer bolts for the door.

He was doomed from the start. He was given the leadership once he agreed to support the dairy cartel. He was behind in every vote round…behind Bernier until the last vote where he hit 51% What a mandate!! LOL
He snatched defeat from the jaws of victory in this election, losing to someone who groped reporters, wore blackface more than once and blatantly threw 2 women ministers under the bus.

Don’t bother bringing up that he got more votes because you’ll sound like a bitter democrat from the states. Doesn’t matter.

#113 CalgaryCarGuy on 12.13.19 at 10:40 pm

So Garth, what’s up with not letting me post? I’m a straight shooter who let’s the cards fall where they may. I can think of a reason or two that you may have but I would like to hear it from you. I have a lot of respect for you and this site and I am scratching my head a bit tonight as my attempted posts are pretty tame. Go for it.

#114 CalgaryCarGuy on 12.13.19 at 10:44 pm

My posts had vanished but now look to be up for moderation again. Weird. Could be due to my very poor internet out here in the sticks. I guess I’m not patient enough..;)

#115 Ponzius Pilatus on 12.13.19 at 11:02 pm

We had our first rain storm during the last two days in the Lower Mainlland.
Result: Major drainage pipe failure in at least four stratas at different locations
Most pipes are over 50 years old.
Only the beginning.
Insurance will go through the roof.
Not a good time to be a landlord or owner of an older property.
And no, Horgan is not going to bail you out.

#116 My name is Caleb on 12.13.19 at 11:15 pm

Garth, a new low for your daily dog dig pic. Let’s keep it clean please!

#117 gC on 12.13.19 at 11:24 pm

#77 Igor on 12.13.19 at 8:00 pm

Take the good with the bad.

Gun violence has been spiraling out of control down south.

———————————

Please do not worry.
Gun violence is currently at its lowest level since the 1970s in America. You can search for the FBI stats yourself. Gun violence has gone down lock step with increasing gun ownership – which makes sense.
Guns have turned into a political issue and so certain media organizations have latched onto guns according to their own political bias. There have also been some very high profile mass shootings. However the stats are clear. There is only a small handful of zip codes that make up the lions share of gun violence.
America still is one of the safest countries on the planet. Far safer then say Mexico which I mention because I know many Canadians who happily travel to that actual war zone but refuse to travel to America because “it’s not safe”.
Mexico has some of the strictest gun control laws in the world and has the most gun violence by far.
Believing gun violence is out of control in America is a symptom of acute television overdose disorder.
I recommend turning the TV off.

#118 Dumb Wealth on 12.13.19 at 11:24 pm

Good tax planning will provide the largest ROI of any investment.

#119 Boondock Swagger on 12.14.19 at 12:17 am

DELETED

#120 Smoking Man on 12.14.19 at 12:30 am

When they take your guns away…

History says you are dommed. Welcome to communist manifesto.

Canada is doomed…Run…

#121 Yabba dabba doo on 12.14.19 at 12:49 am

China us the Crux of the problem.

I watched the talking heads saying Apple will be over 300 dollars soon because of this trade deal.

THE Reality…

Buying soya beans and pig heads will not solve a darn thing.

APPLE decided to build stuff in China because it was cheaper…

The chinese being entrepreneurs shared their ideas and knocked everything off…

Iphones…

Apple watches…

Poor Apple can’t make 300 dollars off an iphone or watch because they are being knocked off for $2….

Then comes Trump to the Rescue…

What a Quaigmare

#122 Smoking Man on 12.14.19 at 12:52 am

Ah , I escaped… Gartho not that lucky. He had Faith into the machine… Even after a ufo sighting…

https://youtu.be/LkU7oY5jksw

#123 Ed J on 12.14.19 at 12:56 am

DELETED

#124 Not So New guy on 12.14.19 at 2:08 am

My political spidey sense is telling me Scheer’s resignation due to the school fees is the excuse, not the reason.

My guess is that whoever runs the party behind the scenes (aka the money boys) wanted him gone or else it was going to get bloody, similar to Chrétien’s departure in another life

#125 jane24 on 12.14.19 at 3:54 am

Get Brixit Done sure worked for Alexander Boris Johnson and the British people. We lose the dead hand of the EU over our lives in 6 weeks. We will be able to make our own laws and decide for ourselves who comes into this country, just like a real independent country like Canada. The EU courts will no longer have control over British laws, that job will go to the actual British Supreme Court. We will finally have leaders that we have elected and can de-select ourselves. The pound and British stocks are soaring. Jan 31 will be celebrated as Independence Day.

Ordinary people don’t want to be global citizens, they want to be able to celebrate just being themselves with their own culture and history.

My hubby’s tiny hair salon will do longer have to advertise jobs to the whole of Europe and we don’t have to listen to the French propose EU wide income taxes pad for by the richer countries such as Britain and that the British armed forces need to be swallowed up into an EU wide force. We don’t have to offer NHS services and govt family benefits to kids living in Bulgaria.

Now I can die in peace but not right now! Just saying.
Rant over.

#126 brian1 on 12.14.19 at 7:35 am

I did not know that, but they still would have won with him rather than Scheer.

#127 Good for the goose, good for the gander on 12.14.19 at 7:48 am

Dear GT,
You are amazing and I love your work. Just one bit in language- if you call women ‘things’ please also call men ‘things’. For example “marry that young thing” vs young Andrew, vs that young Conservative thing. Either both are things, nor neither. Offend all or none, to be respectful.

Thank you for your consideration.

Separate note: yatch tax etc – those people like Bill Morneau have more than 1 yacht and they are registered overseas to avoid tax so it sucks that there hitting the people in the middle who can’t register overseas in their 2nd and 3rd homes.

I attached no gender to the ‘young thing’ reference. So it appears you are the sexist one. – Garth

#128 Remembrancer on 12.14.19 at 7:51 am

#121 Yabba dabba doo on 12.14.19 at 12:49 am
The chinese being entrepreneurs shared their ideas and knocked everything off…
—————————————–
If by “shared” you mean cut deals for joint ventures with silly tech companies offering lofty sales promises in exchange for controlling interest for PRC operations and who either voluntarily transferred or saw knowledge assets “acquired” locally then sure, then “shared” works…

Not a literal version of that old saw attributed to Lenin “When it comes time to hang the capitalists, they will vie with each other for the rope contract.” but a viable commercial strategy none-the-less…

From a strategic point-of-view though, being the supplier of soy beans or pig heads is not a bad position to be in when your trading partner doesn’t produce enough on its own, much like the strategic hand wringing in Europe regarding Russian natural gas pipelines… Bottom line is that the US needs China and China needs US for things each makes – IBM founder Thomas Watson’s “world peace through world trade” riff though that can have a darker side too…

#129 AGuyInPoland on 12.14.19 at 7:56 am

#70. Yes something huge did happen. The continual downhill slide of an empire the sun never set on, to merely a united kingdom, to finally just a rump country named England. Like Poland but with better shopping.
—–
You should travel more before making generic and inaccurate statements.

#130 crowdedelevatorfartz on 12.14.19 at 8:24 am

A weird blog day

Smoking Man made sense?

Millenial realist @ # 105 asked Garth, a Boomer, to be the next leader of the Conservative Party?

jane24 @ #125 ranted for approx 2 minutes without once mentioning her wealth?

Hades is -40 cel.

#131 crowdedelevatorfartz on 12.14.19 at 8:38 am

@#128 A guy in Poland
“just a rump country .

+++++

Speaking of human anatomy acronyms.

You gotta love the Polish political Party’s names

Law and Justice (PiS)
or
Civic Platform (PO)

https://www.reuters.com/article/us-poland-politics-opposition/polands-main-opposition-picks-moderate-veteran-for-presidential-vote-idUSKBN1YI0B3

Why cant Canadian Political Party’s be as forthcoming as the Polish ones?

#132 Mr Canada on 12.14.19 at 9:17 am

Garth, you forgot to insert the socialist “dogma” line used by T2 and Singh: ….for fairness – we are going to ‘ask’ the rich to pay more….. There – now don’t you feel so much better in polite Canada that Minister Moron just asked you ??

#133 Mr Canada on 12.14.19 at 9:27 am

Only in Canada’s political “dogma” can a leader who got more votes than T2, more seats in BC and the west a took a majority away from an incompetent leader gets nailed to a tree — yet, socialism for all Jagmeet loses 650,000 votes, gets whacked in PQ to #4 party status and everyone thinks he is just wonderful — what a country.

#134 BillyBob on 12.14.19 at 10:14 am

#125 jane24 on 12.14.19 at 3:54 am
Get Brixit Done sure worked for Alexander Boris Johnson and the British people. We lose the dead hand of the EU over our lives in 6 weeks. We will be able to make our own laws and decide for ourselves who comes into this country, just like a real independent country like Canada. The EU courts will no longer have control over British laws, that job will go to the actual British Supreme Court. We will finally have leaders that we have elected and can de-select ourselves. The pound and British stocks are soaring. Jan 31 will be celebrated as Independence Day.

Ordinary people don’t want to be global citizens, they want to be able to celebrate just being themselves with their own culture and history.

My hubby’s tiny hair salon will do longer have to advertise jobs to the whole of Europe and we don’t have to listen to the French propose EU wide income taxes pad for by the richer countries such as Britain and that the British armed forces need to be swallowed up into an EU wide force. We don’t have to offer NHS services and govt family benefits to kids living in Bulgaria.

Now I can die in peace but not right now! Just saying.
Rant over.

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

Yes, it will all be rainbows and ponies for everyone in less than 60 days. lol

Delusional.

The election was a triumph of fascism over communism. Um…yay?

You need to speak for yourself. Actually, I do enjoy being a global citizen. Your talk of celebrating “your own culture” betrays your bigoted tribalism in an incredibly multi-cultural country. Which came about largely as the result of past imperial ambitions. A country that I live in, incidentally – but don’t worry, I share your heritage, passport, and skin colour so I am “desirable”. I’m just thankful I’m mobile. :-)

Why you’d want to lock yourself into a miserable little island is certainly your right, but beyond understanding. A middling, well-past-its-prime nation of 60 million will not do better alone than part of a union of half a billion. Such arrogance. Or ignorance? Hard to tell. But I’m sure Westminster will do a bang-up job of governing free of the EU shackles, judging from the impressive displays over the last three years. LOL Don’t worry about offering NHS services to anyone, Boris will make sure the USA will run it at a handsome profit.

Ironically, the UK will shrink even more as Northern Ireland aligns closely with the Republic (elected more Nationalists than Unionists) and Scotland pushes hard to separate.

Your perspective belongs to 300 years ago but the sun set long ago on the Empire. Careful what you wish for.

But hey – in the short term my GBP gets me more USD for the portfolio, so that’s good even if temporary! Always a silver lining. :-)

#135 Felix on 12.14.19 at 10:25 am

I had a hunch there was something seriously wrong about Andrew Scheer. That dog picture confirms my suspicions.

Higher IQ Harper had cats.

Nuff said.

https://thetyee.ca/News/2015/10/30/Harper-Cat-Collection/

#136 Gregor Samsa on 12.14.19 at 10:26 am

Garth Turner said: So there you go. Trudeaunomics in a nutshell. Pander to homebuyers by allowing over-borrowing and increased debt. Blame foreign dudes. Increase government spending and the river of red.

And this differs from Stephen Harper’s conservative mandate how exactly? Remember 40 year mortgages? Harper ran the same playbook, though somewhere around the final year of his last term did he manage a balanced budget (mostly via one-time asset sales). All that managed to do was piss off enough Canadians to get T2 in power. Trudeau learned the lesson wisely and will no longer even try to balance a budget. Even Scheer was not running on a fiscally conservative platform in the last election. And the two guys in this country applying the barest minimum of fiscal conservatism (Kenny and Ford) are branded as Hitler #1 and Hitler #2 by the populace and media.

My conclusion is that Canada is pooched.

#137 oh bouy on 12.14.19 at 10:37 am

@#103 Sail away on 12.13.19 at 9:53 pm
#86 MF on 12.13.19 at 8:19 pm
#77 Igor on 12.13.19 at 8:00 pm

Take the good with the bad.

Gun violence has been spiraling out of control down south. But hey who cares about your safety when you’ll have another 10k in your pocket to live lavishly with.
MF

————————————

No it hasn’t:

6 gun deaths per 100,000 people, and of those, 34% are violence from others… yielding… .00002% chance of dying from a violent gun attack in the US.

That’s 1 violent gun death per 50,000 US Americans, with the majority being targeted gang members.

Most people would take those odds for an extra $10K.

Unless… are you a gangster, Igor?
____________________________________

meh, gun violence has always been out of control down there. Gun homicides 25x higher than any other high-income country. mass shooting incidents off the charts. you’d have to go to south america to witness more daily gun violence.

#138 Boomer Bucket Lists on 12.14.19 at 10:44 am

#111 Bucket list on 12.13.19 at 10:23 pm

Been at my job for 30 years. Have managed to save
enough to make a list of “wannas” for retirement. Let’s see…new truck, nice cruise, new bike (or 2 or
5…..Total allocated is approaching $150k. Wont pay a
luxury tax on any of it as no one item over $100k.

But if my one and only “wanna’ was an RV to travel “marika” (and Canada too) or a boat to sail the world, for the same total price I’d pay a luxury tax??

Is this how it worx?? WTF??
…………………
Greta is watchin……

https://i.ytimg.com/vi/ZLr39gFJGLQ/maxresdefault.jpg

#139 MF on 12.14.19 at 10:55 am

#117 gC on 12.13.19 at 11:24 pm

“I recommend turning the TV off.”

-This reponse is typical. I frequent a lot of forums with Americans. The second someone brings up gun violence all these morons do is complain about politics and who is banning guns vs who is not.

Just like your response.

The data, like you say, is pretty clear though. Problem is you got it wrong:

https://www.ncbi.nlm.nih.gov/pubmed/26551975

“CONCLUSIONS:
The United States has an enormous firearm problem compared with other high-income countries, with higher rates of homicide and firearm-related suicide. Compared with 2003 estimates, the US firearm death rate remains unchanged while firearm death rates in other countries decreased. Thus, the already high relative rates of firearm homicide, firearm suicide, and unintentional firearm death in the United States compared with other high-income countries increased between 2003 and 2010.”

MF

#140 Yuus bin Haad on 12.14.19 at 11:20 am

poor Andrew – just the latest politician to be run out of town and trying to make it look like a parade

#141 Doug in London on 12.14.19 at 11:24 am

The ink was barely dry on young Scheer’s take-this-job-&-shove-it letter when news on what the T2 Libs have in store for this confused and snowy land emerged.
—————————————————————-
That’s one of the many things I like about you guys. Even in the midst of a world that appears to be losing its mind, you guys still maintain a sense of humour. Who says anything about business, financial, and government matters should be about as exciting as watching paint dry? Obviously not you guys!

#142 Bucket list on 12.14.19 at 11:33 am

136 boomer

Hey it’s a sailboat! And bicycles!

#143 Lorne on 12.14.19 at 2:52 pm

He was doomed from the start. He was given the leadership once he agreed to support the dairy cartel. He was behind in every vote round…behind Bernier until the last vote where he hit 51% What a mandate!! LOL
………
Makes you wonder why they do not use FPTP in Leadership races as it is such a fine system!

#144 Boris Corbyn on 12.14.19 at 3:48 pm

I came to Canada 10 years ago, when Europe was going down the drain. It still was a land of opportunity.

Now I’m afraid it’s going the high tax route, like Quebec, or even worse France. As if socialism works in either places.

Add to that the rise of Bill 21 in QC, and that horrid Bernier and me thinks we shouldn’t gloat too much.

#145 Westcdn on 12.15.19 at 1:30 am

I will return in kind to the positive – I don’t what that looks like but I will try to make you smile. To succeed I have believed you need discipline. The world has not been kind to me but I don’t hold against and will learn. Follow my path at your peril. I have things to teach and fight over. I will not surrender. My granddaughter and sister, why life is being mean to them escapes me…

https://youtu.be/NT0Zri7jiKAc

#146 Mr Canada on 12.15.19 at 7:38 am

Garth, a key point everyone is missing is Minister Moron announced plans to raise the income tax exemption to $15k — 40% of Canadians already pay ZERO Federal Taxes – that is 2 out of every 5 households, and this is going to make it worse, and 1 household out of 5 now pays 70% of all taxes…time for a minimum tax for all……

#147 Good for the goose, good for the gander on 12.16.19 at 8:58 am

Hello GT,
Thank you for the clarity and my sincerest apology. Clearly working overtime as a SJW has me making a mistake. Merry Christmas!

#148 Fabio Titolo on 12.17.19 at 10:43 am

Another reason to buy used.