Dr. Moneybags

Whadda nation.

Domestic terrorists shut down the railways, throwing thousands out of work, whacking the economy and the federal government calls for… negotiation. Houses, already unaffordable, escalate in price so the feds… lower mortgage requirements, goosing values. Iran shoots down a passenger plane full of Canadians, and Ottawa is…  silent.

Four in ten families pay no tax as government handouts increase, forcing just 10% of citizens to generate 54% of all revenues. And now yet another province – the one where it costs the most to live – will be taking over half of what successful people earn.

Let’s flip to Vancouver, and a comment from blog dogs calling themselves “Dr. and Mr. Moneybags”. Yes, two of the hated 1%ers that Comrade Horgan & The Dippers wish to turn into proletariat.

That was a nice little surprise that the BC Premier gave us the other day eh? Out of nowhere he decided to raise the top marginal rate from 16.8% to 20.5%. My wife is a doctor (apparently “ultra wealthy” according to the BC finance minister) and we were just getting ready to  put in offers on houses in the next couple of weeks and instantly our available cashflow is reduced by nearly $1,000 a month. This means we now have to adjust our expectations downward by a couple hundred grand. We rent in a nice area for $5k a month currently and are definitely not in the NDP demographic it seems.

Any tips for us “ultra wealthy” people who “need to pay a ‘little bit’ more? I was thinking of deferring my wife’s entire RRSP deduction to the next tax year, suggesting she incorporate and take a salary below $220k (or less), and seriously step back and see what kind of house we can afford in the part of Vancouver where the poor people do NOT live…..or buy in East Van instead where it is cheap but has that doobie smoking anarchist vibe. Also this is retroactive to Jan 1, but was announced today! Is this even legal?

What did BC do?

For the second time in three years tax rates on people at the top of the income scale were rammed higher. A lot. The trip has been from 13% to 20.5% (on top of federal taxes), for an increase of more than half. This means that a little over 40,000 people will be milked for more than $200 million in extra payments. It boosts the top marginal rate in BC to 53.5%, which is the same as Ontario – where it costs less to live and there are no silly second-property and vacant-house taxes in place.

As politicians drift left – pulled that way by voters looking for more government in their lives – the system becomes more and more unequal. The top 10% of Canadians includes everyone earning $96,000 or more. As stated, they pay 54% of all income tax. The other 90% foot the rest – 46%. We give money to people because they have children. We give them more because they get old. We excuse close to half of them from contributing into the system. And while we have a Minister of Middle Class Prosperity, we’re hammering those who make an upper-middle class income of less than a hundred grand.

Since 1982 the number of people in the top ten per cent has risen by 13%, but their tax load has increased by almost 25%. Despite this, governments wallow in red ink. The feds will run a deficit of $28 billion this fiscal year, and incur more debts annually. There is no target time for when taxes will meet expenditures. It’s a formula for even higher taxes in ten future – which should be terrifying a lot of Millennials.

And what of Dr. Moneybags?

Take enough salary from your professional corporation to max the RRSP contribution of $27,230 – and put that into a spousal plan. Dividend the rest. Doc gets to deduct it from her income but hubs gets the money to withdraw at a lower rate, now or later. Consider keeping money invested inside the PC to the allowable limit (before the Morneau tax hit happens) and also mull using it to buy that house.

Future appreciation would be taxed at the capital gains rate (very low for most corps), and you’d live there for free with the exception of a taxable benefit approximating rent. If you open an office in the basement to see patients, much of the financing would be deductible. Of course, Doc could just decide to work part-time, keeping her salary below the top rate threshold, and making the primary care crisis worse. That’s NDP math. Spend billions on doctors, then tax them so much they stop working. Genius.

Media coverage of the BC budget this week referred to people like our blog dogs as alternatively “wealthy” or “rich.” But people in Vancouver earning $250,000 a year are neither. It’s barely enough to qualify for financing a Vancouver Special unrenovated dump. Earning a lot of money doesn’t mean you have instant wealth, high net worth or investible assets. But it does make you a target. In the hands of zealots and power-mongering pols, envy is a lethal weapon.

By the way, have you heard any opposition politician, anywhere, stand up and argue that excessively taxing successful people – like those who spend a decade in school and residency to become doctors, or start companies which employ thousands – is insane? An incentive to leave?

Nope. You haven’t. They leave that for a pathetic blog.

Whadda country.

 

187 comments ↓

#1 Doug t on 02.19.20 at 4:02 pm

Blame the people of this pathetic nation – we are where we are because we are apathetic zombies – you think it’s bad now just wait it’s going to get worse

#2 Smartalox on 02.19.20 at 4:09 pm

I have to say: $260k per year family income, closing in on $900k net worth, renting a 2BR in Vancouver, but planning a move to Edmonton.

Why? The in-laws live there, and are aging. They’re going to need more assistance from their only child, and their only grandchild is going to need more grand-parent time and memories before it is too late.

Houses in Edmonton are 4x in value compared to Vancouver: you get 2x the house, for 1/2 the price. Taxes and fuel are lower too.

#3 Brian the Boomstick on 02.19.20 at 4:09 pm

“An incentive to leave?”

What you’re missing is that the only place in the world that isn’t leftist is America, and if it becomes that way as well you’ve got nowhere to go and they’ve gotcha.

#4 Wait There on 02.19.20 at 4:15 pm

Canada is leaning so far left, it is tilting the USA. We will help Bernie Sanders win!

#5 Nat on 02.19.20 at 4:21 pm

I predict.. taxes collected from that bracket will drop.

#6 The Wet One on 02.19.20 at 4:22 pm

Jeez Garth.
Inflammatory much?

“Domestic terrorists ”

You do know what terrorists are right? The things they do? Blockading railroads isn’t “domestic terrorism.”

You should live up to your own stated principles and not delve quite so deeply into the animosity.

Sheesh.

#7 G on 02.19.20 at 4:30 pm

Thank you Dr. Moneybags for becoming Dr. to help people when they are sick!

Mr. socks not so much.

#8 Piano_Man87 on 02.19.20 at 4:35 pm

Jeff Bezos is worth an estimated 130 billion dollars. He asked Bloomberg to run for President. Now Bloomberg is trying to buy the election. Over Bernie Sanders who has immense democratic grass roots support.

I think Garth is being disingenuous and tries to pretend that immense wealth inequality isn’t at odds with a healthy democratic system. It always has been. Socrates even wrote about it. It’s a tug of war that old. James Madison, one of the framers of the US Constitution said the primary function of government was to protect the minority of the opulent from the majority. He said the country should be set up to LIMIT democracy.

Dr. and Mr. Moneybags are collateral damage, which exist for every broad brush policy. Not exactly a shock that Garth didn’t pick people earning $10M/year as an example for how the tax will affect people.

#9 Jon on 02.19.20 at 4:37 pm

Rural Saskatchewan needs doctors. The pay is the same. The taxes are lower. The cost of living is lower. Flights to Mexico cost the same and summers are actually quite nice.

#10 G on 02.19.20 at 4:38 pm

re: have you heard any opposition politician

Didn’t that max guy from the PPC say something like that, or did I miss understand? Not that they got even close to enough votes to get in.

re: An incentive to leave?
Once they go they aren’t coming back any time soon. And they aren’t about to broadcast they are going ahead of time is my bet!

#11 just snootin' on 02.19.20 at 4:42 pm

Not enough info on the Dr&Mr, though the advice was helpful.
BC is big province, why live in run down parts? If you want to live in the middle of the hive, then I guess people will earn more, pay more, get taxed more, live faster, burnout faster.
Move to a pretty spot and do doctorin’ as well as read tea leaves, pottery, whatever. You get one life, spend it well.

Re taxes. They (gov) have the muscle. So unless you want to take them on, lower expectations and live below the wire. Line 256, Vow of Perpetual Poverty. Start a religion.

#12 Leftover on 02.19.20 at 4:43 pm

You identified exactly the strategy that several young (35 to 45 year-old) doctors that I know employ – they only work enough to make about $170k to $200k, often in a walk-in clinic, and invest heavily in leisure time.

They are clear about their reasons. It makes no sense to work more just to have more than half of their income confiscated, and it’s a hassle to move to the USA, though that may change if Bloomberg gets elected.

#13 salmonrearend arm on 02.19.20 at 4:44 pm

if were running a 28 billion deficit and the yanks are running a 1.3 trillion deficit hello

#14 G on 02.19.20 at 4:45 pm

re: Whadda country.
I thought it was pretty good for the most part growing up. But it looks to me like Mr. T wants us under the U.N. boot I mean flag instead.

#15 Lost...but not leased on 02.19.20 at 4:46 pm

Phyyyrrzzztt

#16 Bob Dog on 02.19.20 at 4:48 pm

Someone living in BC making $100,000 per year will pay $15,606 in federal income tax. 15.6%

Someone living in USA making $100,000 per year will pay $15,246 in federal income tax. 15.2%

What are you barking about exactly?

Canadian income tax = federal + provincial. Woof. – Garth

#17 Sovavia on 02.19.20 at 4:51 pm

Income tax does not generate all revenues; people pay payroll and consumption taxes (GST).

Of course. But the references here were all to income tax. – Garth

#18 Jimmy Zhao on 02.19.20 at 4:51 pm

and people are evading bus fare in Vancouver and also drifting past the gates at SkyTrain stations. Forcing others to subsidize these deadbeats.

#19 Deamer on 02.19.20 at 4:53 pm

Thanks for your blog Garth!

The real wealth the province/country loses is the knowledge and experience that the risk takers take with them.
Comendable comrade plan for a possible COVID19 ..

#20 European Settler Nation on 02.19.20 at 4:57 pm

Domestic terrorists shut down the railways
………………………………………………………….

Funny thing is that they felt the same when the European settlers came to Canada to spread smallpox.

Pretty sure nobody wanted to be diseased, or to communicate it. What a sad comment. – Garth

#21 Oh ... its so nice to be ... on 02.19.20 at 5:01 pm

asset rich and income poor. So far.

#22 Andrewski on 02.19.20 at 5:02 pm

Great pro bono advice Garth!

#23 Christopher Mewhort on 02.19.20 at 5:06 pm

Re #16

When I run a salary of $US100,000 through my tax software, single person, no dependents, I get $US18,731, Hawaii $US7,135, Social Security $US6,200, and Medicare tax $US1,450. Total $US33,516.

Christopher Mewhort, EA
808-261-5005

Now run $250,000. – Garth

#24 Mike on 02.19.20 at 5:08 pm

“Iran shoots down a passenger plane full of Canadians, and Ottawa is… silent.”

Silent you say? I doubt Trudeau was silent when meeting with the Iranians last week. All smiles and pleasantries during his UN Security Council Tour.

Me thinks his next move is to secure a post in the UN, after all, he’s been their lapdog for the last 6 years. You heard it here first folks!!

PS – Domestic terrorists is exactly what they are. Call a spade a spade.

#25 BlogDog123 on 02.19.20 at 5:11 pm

Thanks to a dithering power vacuum at the top, we’ve now given anyone with a grievance a roadmap how to shut the country down.

And best time to shut down is before all the Christmas toys arrive by train. The folks at Crappy Tire won’t be happy if their shelves are empty by October.

#26 Lee on 02.19.20 at 5:12 pm

Article in Canadian Lawyer Magazine that warns that its pretty simple for rich Canadians to move out of the country, so watch out if you tax them to death. I figure there are no more than 5,000 to 7,000 ultra wealthy people in Canada ($30M or more in wealth not including house) who probably pay a large portion of the tax here. Most are over 55. If they all move to Florida (or maybe Bermuda) and take their money with them we’re toast. Maybe we can just get rid of all the lawyers so the ultra wealthy won’t be able to move.

https://www.canadianlawyermag.com/news/features/tax-law-legal-report-killing-the-golden-goose/326397

#27 The Wet One on 02.19.20 at 5:21 pm

Apparently folks here don’t know what a domestic terrorist is.

Here are two relatively recent Canadian examples:

https://winnipeg.ctvnews.ca/fbi-arrest-former-canadian-reservist-suspected-neo-nazi-in-united-states-1.4770308

And the organization to which he belonged is detailed here: https://edmonton.citynews.ca/2019/08/21/inside-a-white-supremacist-terror-network-recruiting-in-canada/

And here’s another domestic terrorist: https://globalnews.ca/news/6467168/quebec-alexandre-bissonette-appeal-arguments/

Get your heads screwed on straight people. Words actually mean things, not whatever your prejudices dictate.

People deliberately sabotaging, disrupting or blocking national infrastructure, affecting thousands of others for their own narrow agenda or ideology are exercising terror. Hackers can even come within this definition. – Garth

#28 Troy McClure on 02.19.20 at 5:26 pm

#9 Jon on 02.19.20 at 4:37 pm

Rural Saskatchewan needs doctors. The pay is the same. The taxes are lower. The cost of living is lower. Flights to Mexico cost the same and summers are actually quite nice.

Yes, but what about the other 50 weeks of the year?

Now, having said that, I’ll be first in line to hand them a Rider jersey and watermelon helmet should they choose to move here.

#29 BC Taxpayer on 02.19.20 at 5:27 pm

At least the BC Budget was balanced. However, if you drink pop and watch Netflix, you’ll pay more.

#30 A Dollar is a Dollar is a Dollar on 02.19.20 at 5:33 pm

Tax all earnings and all transactions at the same rate.

No more privileging stock market “investments”, usually made with little actual risk and often shares given freely to 1%er executives who do nothing to “earn” it.

Tax everything equally. Democratically. Fairly.

Problem solved. Any leaders got the guts to implement it?

$$$$$$$$$$$$$$$$$$$$$$$$$$

OK, rich snowflakes, your turn to wail and moan about how “special” your money is compared to everyone else’s!

LOLOLO!!!

#31 eduardo de la conche on 02.19.20 at 5:35 pm

Bloomberg, deep in his program website states that Canada is an issue, taking away high tech jobs (due to Trump’s policies) and that he’d quite like to change this and get immigration visas for business owners and entrepreneurs started. In Trudeauland we can’t run trains, are piling taxes one on top of the other and have wonderful weather, and we don’t need doctors. oh well

#32 the Jaguar on 02.19.20 at 5:39 pm

“Pretty sure nobody wanted to be diseased, or to communicate it. What a sad comment. – Garth”
Thank you for that, Garth. Not the first time I have heard this remark. Victim mentality, one of the big reasons society is falling apart. Another variation of – ‘the blame game’.

And yesterday there was this from the arrogant mouth of our ‘dear’ leader, T2, “Mr. Scheer disqualified himself from constructive discussions with his unacceptable speech from earlier today,” the PM said.”.
Any attempt to question the behaviour or policy of the Liberal government is now apparently ‘unacceptable’.
We will need to exhaust all methods to dispose of this loser of a prime minister.” Set a course for the neutral zone, Mr. Sulu…warp factor 6″.

#33 Adam on 02.19.20 at 5:41 pm

On top of the BC NDP increase in provincial tax rate to top earners, there was the transfer of Medical Services Premiums to Employers from Employees. Employees no longer pay anything. Employers with payroll over $500,000 do.

If you have a small services business, like ours, where payroll is the bulk of your expense, this is especially painful. The tax is not based on our earnings – there are lots of companies with much higher revenue but lower payroll so they pay nothing.

Good point on keeping money in the corporation. For 2020 pay yourself $12,606.50 per month. This is $151,278 per year which allows for the max RRSP deduction of $27,230. Not only will you save the income tax, you will also save the Employer health tax if your payroll is over $500K.

#34 Yukon Elvis on 02.19.20 at 5:45 pm

It boosts the top marginal rate in BC to 53.5%, which is the same as Ontario – where it costs less to live and there are no silly second-property and vacant-house taxes in place.
…………………

You forgot to mention the 12% HST I pay on everything I buy with my “after tax dollars”. 53.5%+12%= 65.5% tax. Wtf ?

#35 swm on 02.19.20 at 5:48 pm

Do you think something will be done to offset the stress test change?

Maybe the housing capital gains tax. That scenario could fit the robin hood theme. It would harm the rich who can buy and flip multiple properties and help the poor with an easier to get mortgage (and the lower prices that the capital gains tax would cause)

#36 Herkunft on 02.19.20 at 5:51 pm

“max the RRSP contribution of $27,230 – and put that into a spousal plan. – Doc gets to deduct it from her income but hubs gets the money to withdraw at a lower rate, now or later. ” – Garth.
===========
Hay Garth, shouldn’t hub have to wait for 3 years before withdrawing from the Spousal RRSP, without triggering the attribution rule?

Always. – Garth

#37 Dave on 02.19.20 at 5:53 pm

DELETED

#38 crowdedelevatorfartz on 02.19.20 at 6:02 pm

@#18 Jay Zee
“and people are evading bus fare in Vancouver and also drifting past the gates at SkyTrain stations. Forcing others to subsidize these deadbeats.”

++++

Newsflash Jim.
ALL Skytrain riders are deadbeats.
Translink takes money from every liter of gas at the pumps, every home gas bill, every property tax…. to subsidize the blessed Skytrain…..

#39 An Albertan on 02.19.20 at 6:11 pm

Dear Garth, which politician said that famous phrase “Just watch me.” ??? The FLQ crisis is the best hint I can provide, I think that I know, but, the answer is politically incorrect and rather touchy right about now.

Thank you for educating those who need, and for a constant reminder to me and others to ignore the markets and enjoy the real meaning of financial security.

#40 Not 1st on 02.19.20 at 6:15 pm

Take the torches and pitchforks to comrade Horgans humble home. Anything goes in progressive Canada.

#41 AGuyInVancouver on 02.19.20 at 6:21 pm

#2 Smartalox on 02.19.20 at 4:09 pm
I have to say: $260k per year family income, closing in on $900k net worth, renting a 2BR in Vancouver, but planning a move to Edmonton.

Why? The in-laws live there, and are aging. They’re going to need more assistance from their only child, and their only grandchild is going to need more grand-parent time and memories before it is too late.

Houses in Edmonton are 4x in value compared to Vancouver: you get 2x the house, for 1/2 the price. Taxes and fuel are lower too.
_ _ _
On the downside, you have to live in Edmonton.

Take a look at the cherry blossoms coming out now, you won’t see those again in February.

#42 David Pylyp on 02.19.20 at 6:22 pm

Earning a lot of money doesn’t mean you have instant wealth, high net worth or investible assets. But it does make you a target. In the hands of zealots and power-mongering pols, envy is a lethal weapon.

AMEN

#43 WTF on 02.19.20 at 6:23 pm

#29

BC budget balanced? Errr NO. Apparently the NDP forgot about debt payments.

If it was “balanced” this wouldn’t be happening.

https://www.debtclock.ca/provincial-debtclocks/british-columbia/british-columbia-s-debt/

Balanced…….sure

#44 joblo on 02.19.20 at 6:30 pm

“I’ll call ’em as I see ’em …”

Domestic Terrorists, Domestic Terrorists, Domestic Terrorists!

#45 The Wet One on 02.19.20 at 6:32 pm

“People deliberately sabotaging, disrupting or blocking national infrastructure, affecting thousands of others for their own narrow agenda or ideology are exercising terror. Hackers can even come within this definition. – Garth”

Nope.

This is terrorism in Canada:

“terrorist activity means:

….

(b) an act or omission, in or outside Canada,

(i) that is committed

(A) in whole or in part for a political, religious or ideological purpose, objective or cause, and

(B) in whole or in part with the intention of intimidating the public, or a segment of the public, with regard to its security, including its economic security, or compelling a person, a government or a domestic or an international organization to do or to refrain from doing any act, whether the public or the person, government or organization is inside or outside Canada, and

(ii) that intentionally

(A) causes death or serious bodily harm to a person by the use of violence,

(B) endangers a person’s life,

(C) causes a serious risk to the health or safety of the public or any segment of the public,

(D) causes substantial property damage, whether to public or private property, if causing such damage is likely to result in the conduct or harm referred to in any of clauses (A) to (C), or

(E) causes serious interference with or serious disruption of an essential service, facility or system, whether public or private, other than as a result of advocacy, protest, dissent or stoppage of work that is not intended to result in the conduct or harm referred to in any of clauses (A) to (C),

…”

https://laws-lois.justice.gc.ca/eng/acts/c-46/page-13.html#docCont

While there’s a threat to economic security here, it’s a real stretch to say it’s done “… with the intention of intimidating the public,” which is a necessary part of the offence of terrorism.

Again, terrorism means something. You can bandy around any terms you like, but that doesn’t make you correct. Try something else.

Of course these folks are acting to disrupt economic activity and an essential service for a political and ideological purpose. You walked into that. – Garth

#46 Rural Rick on 02.19.20 at 6:38 pm

To be a terrorist you must strike terror or attempt to strike terror into a society or group. People are feeling lot of things but no one is terrified of Native Peoples blocking railway tracks and construction sites. You are wrong on this one great bearded one. They are protesters only.

Over 1,500 people have now lost their jobs. Go tell their families it’s all okay – just a little protest. – Garth

#47 Shawn Allen on 02.19.20 at 6:39 pm

$30 million not including the house you say?

#26 Lee on 02.19.20 at 5:12 pm

I figure there are no more than 5,000 to 7,000 ultra wealthy people in Canada ($30M or more in wealth not including house) who probably pay a large portion of the tax here.

********************************
Hilarious that you even have to mention excluding the house. I would think that when you have $30 million in wealth, your house should be normally only 3 to 6% of that.

But actually, having $30 million in wealth does not necessarily mean much is paid for income taxes. We tax salary income heavily, but remember, we don’t have an actual wealth tax (yet).

#48 Smartalox on 02.19.20 at 6:45 pm

I have to admit, I bristle at the use of the word Terrorist to define the protesters that are blockading the nation’s infrastructure. Terrorism implies calls to violence, in particular random killing, and as such feels unnecessarily provocative.

Extremists? Radicalized Extremists? somewhat closer in substance, particularly from the perspective of there being seemingly multiple ‘cells’ of these extremists around the country. I don’t support the protests, and I openly question whether or not the protests are genuine. I greatly favour the exploitation of Canada’s natural resources, for the good of the country.

But I don’t think it helps anyone to throw loaded terms like ‘terrorism’ into the debate. Yeah, there have been economic consequences, and yeah, it’s not been great. But nobody has been hurt or killed. In fact, the response has been remarkable.

Apart from the terrible optics of being caught ‘out of town / out of touch’ when the protests started, I get the impression that the Trudeau government is trying NOT to repeat the mistakes of past governments – at least trying a new approach to an old problem. It’s hard to picture any other Canadian PM doing the same – including Trudeau’s father.

Progressive Canadians like to think that they’ve ‘come a long way’ from the days in which indigenous people were regularly and routinely devastated by Canadian government policy – by design (in reality, it hasn’t even been 60 years, since those policies were ended). We’ve seen that goodwill evaporate pretty quickly as soon as there is much in the way of push back.

We’ve done a lot worse by indigenous people in this country, than they have done to us.

#49 Figmund Sreud on 02.19.20 at 6:47 pm

Domestic terrorists shut down the railways, throwing thousands out of work, whacking the economy and the federal government calls for… negotiation.
__________________________

Whadda you know, … a timely, recent, essay, “The End of the Dream”!

Second part of it nicely expounds on the source of assemblage of your so called “domestic terrorists”.

Germane – introductory – snip, first:

“The native population [ … ] knows that the point of the power-sharing arrangement is to enable the former colonial functionaries to cling to privileged positions and to retain control over which needs of the masses get met and which still get ignored. It knows that when a nation wins its freedom, and has to staff its institutions with people who don’t necessarily have the training for the task, there will be a longer or shorter period of relative confusion, followed by stabilization—and that only by putting up with that period, and building an administrative class from below, does freedom become more than a word. So they tell the former colonial administrators to pack their bags and leave the key on the mantel, because they recognize that the former colonial administrators are, in effect, suing for terms—and they know that the best response to that act is to demand unconditional surrender.”

The essay at: https://www.ecosophia.net/the-end-of-the-dream/

… and the supporting article, too, referenced in the text:

The New Class War
https://americanaffairsjournal.org/2017/05/new-class-war/

“The Times They Are A-Changin'”
https://youtu.be/90WD_ats6eE

Enjoy the essay, … and a jingle, too!

F.S. – Calgary, Alberta.

#50 Adam on 02.19.20 at 6:48 pm

Vancouver is the second least affordable housing market in the world after Hong Kong.

https://vancouversun.com/news/local-news/vancouver-housing-second-least-affordable-in-world-report

Top marginal tax rate Vancouver = 53.5%
Top marginal tax rate Hong Kong = 17.0%

Vancouver’s is more than 3 times as much.

#51 Settlers Unite! on 02.19.20 at 6:52 pm

We stole this country fair and square!

Besides, all those treaties were written on “paper”, decades and centuries ago. That means nothing today – what the hell is “paper”? Everyone uses an iPad now – jeez!

All these protests are yesterday’s news.

#52 Smartalox on 02.19.20 at 6:56 pm

A Guy in Vancouver @41:

I’ve had 20 years of cherry blossoms, it’ll be one of my favorite memories of Vancouver when I leave.

But I’d still rather have crisp, clear, sunny days in winter, instead of 70 straight days of damp and gloom.

Garth’s advice to prospective parents and wannabe home buyers not to succumb to the ‘nesting’ urge and “take on a lifetime of debt” for a “big empty house” is accurate – up to a point.

Babies may not care if they don’t have a lot of space, or a yard to play in, but after they’re 5 or 6 years old, the parents get tired of stepping on Lego bricks and action figures all the time!

#53 saskatoon on 02.19.20 at 7:03 pm

irrational to complain about tax increases, when that same stolen money pays your salary.

more well-educated canadian hypocrites.

those who get paid from taxes do not contribute to the cost of operating government.

#54 Samuel on 02.19.20 at 7:04 pm

Half the revenue is supposed to come from those making over $1 million a year. Sounds like another future tax bracket is coming.

#55 jess on 02.19.20 at 7:10 pm

Wealthy Millennials Call for Canada to Implement a Wealth Tax and Inheritance Tax

https://www.resourcemovement.org/post/2020/02/10/press-release-wealthy-millennials-call-for-canada-to-implement-a-wealth-tax-and-inheritan

https://thewalrus.ca/im-part-of-the-0-1-percent-and-i-want-a-wealth-tax/

—————————-
LONDON—A lawyer for Julian Assange has claimed in court that President Donald Trump offered to pardon Assange if the WikiLeaks founder agreed to help cover up Russia’s involvement in hacking emails from the Democratic National Committee. (daily beast)

#56 Wait There on 02.19.20 at 7:10 pm

Pet Tax….the proceeds go towards charity helping other poor countries in need of assistance because of droughts, famine etc….

#57 Wait There on 02.19.20 at 7:15 pm

Fed gov workers lose their Federal Voting rights.
Provincial workers also lose their Provincial voting rights.

Once you reach a critical mass of voters working for a government,that treats them well, they will always vote to continue or sustain the system. Status Quo is maintained even if the non governmental workers want change.

It’s like you choosing your boss. That does not work well.

#58 Mr Canada on 02.19.20 at 7:20 pm

By the way, have you heard any opposition politician, anywhere, stand up and argue that excessively taxing successful people is insane ?
++++++++++++++++++++++++++++++++++++
They will when they run out of the top 10 percentile to pay for everything. Chretien and T2 “asked” the top 1% to pay more, and revenues declined. Someone needs to tell Comrade Horgan in BC it’s doomed to fail.

#59 Treasure Island CEO - 178,434,353.88 Offshore on 02.19.20 at 7:20 pm

Diversify.

Why become a doctor? Have your, mom, dad, grandma, grandpa all under the same roof collecting on everything as poverty income earners. That nets a nice 80k.

Keep the income below 78k for the career earners in teh same household (50kish net), bringing the net income after taxes (NIAT) at 160k.

Finally, anyone trying to make it in Vancouver post 2017, expecting to own a SFD. without an inheritance / family already rooted to be able to live with and add to the pot is going to be disappointed. And weather you admit it or not, reality will serve you.

And let’s be real. Who aspires to live in a strata their entire life when there are other options in Canada. A lot of doctors headed for Kelowna where they can live the Vancouver lifestyle in a custom built SFD in an exclusive newish neighborhood for 800k. The place is being built up like crazy, has UBC, International Airport and a lake that is actually clean and swimable unlike the polluted ocean around Vancouver. And Victoria can’t compete with Kelowna anymore. It takes 3.5 hours to drive to Vancouver from Kelowna. You could be waiting 3.5 hours just for the ferry with a nice ferry ticket price of $177 if bringing your vehicle. I am not a fan of REIN but there is a reason why the money if flowing hot to Kelowna. Multiple offers hitting everything.

And as for a market crash – The FED will decide when that happens. The Canadian housing market bottomed in most places by Aug. 2019. It is going up in price coast to coast. It is the economy now. FOMO is justified given our current rigged system times.

And bring my above diversification plan to anywhere in Canada – the pay from the government is the same wherever you move and you can even get a bonus monthly pay from the gov if having kids (which the grandparents who are kicking around home can watch while collecting).

#60 cowtown cowboy on 02.19.20 at 7:21 pm

Again, thank you ontario for voting in these useless liberals and their socialist agendas you useful idiots

#61 Dave on 02.19.20 at 7:21 pm

We all pity the poor doctor who’s education we subsidized and who males more than 90% of the population. Maybe they can move to the US?

#62 Drew on 02.19.20 at 7:22 pm

A lot of city people seem to think earning $80,000 or having more than $1000 saved = rich, and love the thought of all that money getting sucked up by the Government.

#63 crowdedelevatorfartz on 02.19.20 at 7:22 pm

@ Wet behind the ears
“….in whole or in part with the intention of intimidating the public, or a segment of the public, with regard to its security, including its economic security….”
+++++

My God, do you even read what you post or do you “cut and paste” skills exceed your reading comprehension skills?

All the “blockaders” should receive a good old fashioned Singapore caning….

https://en.wikipedia.org/wiki/Michael_P._Fay

#64 crowdedelevatorfartz on 02.19.20 at 7:26 pm

@#46 Rhubarb Rick
“They are protesters only.”
+++++
No. They are bullies.
Big mean bullies.
Where are the anti bully protesters in pink shirts ?
Social justice warriors wanna know why Mohawk warriors are such bullies.

#65 Doodles on 02.19.20 at 7:34 pm

Hi Garth. Thanks for your blog. I’ve learned a tremendous amount from you since I was introduced to it a year ago. Same boat as Dr. and Mr. Moneybags, except non Dr. spouse will have a healthy federal govt pension upon retirement. Is spousal RRSP still recommended or should all RRSP contributions be made to own (Dr’s) RRSP. Thanks in advance

#66 Deplorable Dude on 02.19.20 at 7:34 pm

#55 Jess…” LONDON—A lawyer for Julian Assange has claimed in court that President Donald Trump offered to pardon Assange if the WikiLeaks founder agreed to help cover up Russia’s involvement in hacking emails from the Democratic National Committee. (daily beast)”

—————-

Nope…that’s not what the Lawyer allegedly said….

From an NBC article….” President Donald Trump offered a pardon through an intermediary to Julian Assange if the WikiLeaks chief agreed to say that Russia was not involved in hacking emails from Democrats during the 2016 presidential election, a lawyer for Assange reportedly told a court in London on Wednesday.”

Assange has already publicly stated he didn’t get them from the Russians or any state source.

This is the BIG Lie the DC media/dems are desperate to maintain. It’s the foundation for the false Russia election interference narrative.

#67 Drinking on 02.19.20 at 7:45 pm

Hey Wet One; certainly did not take Edmontonion’s to counter act against the illegal rail blockade West of Edmonton. This is the way it should be done, down with the terrorists. Thanks boys!
https://nationalpost.com/news/blockade-supporting-wetsuweten-hereditary-chiefs-set-up-on-rail-line-in-edmonton?video_autoplay=true

#68 Cr on 02.19.20 at 7:45 pm

IM A FAMILY PHYSICIAN AND IM CONSIDERING GOING TO THE US.
THIS COUNTRY SHOULD LEARN SOME ADAM SMITH.
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
Thats how they built their EMPIRE DOWN SOUTH

#69 Astronaft on 02.19.20 at 7:46 pm

What if democracy and capitalism is no longer serving our society well? They are the best we had so far, buy maybe it’s time for a new social structure. Egg shell is a very important stage of bird’s life, without it a bird wouldn’t form property. Yet when the time comes a shell needs to be gently and lovingly dismantled.

I encourage all to listen to Gary Zukav interview to Oprah timestamp 43:40
https://youtu.be/OJ6okNOxRqo

#70 TurnerNation on 02.19.20 at 7:49 pm

Does anyone remember that time it came out that this country’s national police and security forces were recording, watching, tracking vocal environmentalists and eco-radicals?
With this weeks action the question is, where they doing this to thwart them, or to HIRE them? For stunts like we see now. There’s a lot of them with ahem, military-like precision in terms of hitting target, sabotauging rail lines.

Who’s running the show? Not the cops, CN police, elected government that’s for sure.
We got Sorrows.

#71 the ryguy - In cabo on 02.19.20 at 7:56 pm

#61 Dave on 02.19.20 at 7:21 pm
Maybe they can move to the US?
————————————–
That’s exactly what is going to happen. Like it or not the USA is on a vastly better trajectory than Canada. How much more do you think taxes could go up before an exodus took place? The US is 10 times the population of Canada..they could pretty easily absorb ALL of Canadas doctors. Careful what you wish for dude.

#72 Shawn Allen on 02.19.20 at 8:00 pm

#53 saskatoon on 02.19.20 at 7:03 pm said:

those who get paid from taxes do not contribute to the cost of operating government.

************************************
That is not even true in form since government workers get paid a gross amount reflecting approximately the full value of their labour and are taxed like anyone else such that they receive only a lower net after-tax amount – less than the full value of their labour.

In substance it is completely false. Money is just a score keeping system.

In substance government workers provide (mostly) needed and vital services and in return get “paid” in electronic dollar tokens called money which they can use to buy products and services created by the private sector.

Private sector workers also get paid in electronic dollar tokens that are money but also don’t get the full value of their labour, some instead being withheld as taxes to cover he cost of government services.

A society that tried to run without government services and taxes would be anarchy and we’d mostly all be dead in that society.

#73 akashic record on 02.19.20 at 8:09 pm

#64 crowdedelevatorfartz on 02.19.20 at 7:26 pm
Social justice warriors wanna know why Mohawk warriors are such bullies.

You can go and ask them. Don’t forget to take your cane.

#74 Doug t on 02.19.20 at 8:16 pm

#64 crowdedelevatorfartz

THIS – man your killing it buddy – speaking truths left right and center – keep rolling

#75 crowdedelevatorfartz on 02.19.20 at 8:19 pm

@#62 Drew
“A lot of city people seem to think earning $80,000 or having more than $1000 saved = rich”
++++

Yep , pretty sad when someone making $80k is considered “rich” in Vancouver.
Considering we pay;
the highest car insurance rates in Canada
the highest gas prices in North America
the highest rents in Canada.
the highest daycare rates in Canada
almost the highest food prices in Canada……

Yep,
80k is lower middle class with no money left over for much except a pittance for RRSP’s and TFSA’s if you live like Ebeneezer……..just glad I make much more than that.

#76 Nonplused on 02.19.20 at 8:19 pm

I’ve said this before, but apparently it bears repeating. Perhaps the people who draft tax policy do not read this comments section. Anyway here it is:

We all pay the same effective tax rate. Read it again if you didn’t understand it the first time.

All taxes are embedded in price. The HST perhaps being a little more obvious but you still pay it despite it being a separate line item.

Taxing doctors another 6% will mean that their fees just go up. Taxing the guy who owns a 7-11 just means a Slurpee and hot dog costs more. Taxint the tow-truck guy more means it is that much more expensive to get your car out of the ditch and to the repair shop, who also has higher rates because of higher taxes.

Folks, you cannot avoid tax increases on the rich because the invisible hand just passes them along to you. Even if you pay no federal tax, you buy products and services from people who do. And they have to get the money from somewhere. Where do they get it? From you. They bake it into the price. They have to, because they don’t actually have any money.

All taxes, be it on the low income Costco workers, the Costco managers, the HST at Costco, or the rich people who own Costco shares, are paid by the people who shop at Costco. There is no other way it can be done. The taxes, all of them, must go into the price Costco charges. And if you think Costco is for the wealthy (and it is, but lots of not so rich people shop there too), Walmart is no different. When you buy a product, not only do you pay for the product, but you pay all taxes at all levels by anyone involved in manufacturing and delivering that product. That is the only way it can be done.

#77 S.Bby on 02.19.20 at 8:22 pm

We are experiencing the slippery slope of socialism.

#78 Loonie Doctor on 02.19.20 at 8:22 pm

A couple of interesting comments here:

#53 saskatoon on 02.19.20 at 7:03 pm
irrational to complain about tax increases, when that same stolen money pays your salary.
more well-educated canadian hypocrites.
those who get paid from taxes do not contribute to the cost of operating government.
—————————————————————–
I can see the logic of that. I guess the question is whether the services that they provide are being paid enough (net income) to incentivize people to do the work and if that net income is considered good value for net dollars spent. It is natural that if you pay less per unit of effort/time after a certain income, that people may work less once they hit that point – if they have some control over their spending and hours. Many doctors do. I will be cutting my spending by about 40% come June and going to half-time. For me, that is the sweet spot where I am working enough to feel like I am contributing, pay my bills, save for my future – but not continue to sacrifice myself or my family needlessly. I think there is a psychological component to tax >50% that modifies behavior.

——————————————————————
#61 Dave on 02.19.20 at 7:21 pm
We all pity the poor doctor who’s education we subsidized and who males more than 90% of the population. Maybe they can move to the US?
—————————————————————–
It is an interesting argument. Of course, all Canadians who went to post-secondary education in Canada had their education subsidized. How much do they all owe in return of service? It would also be pretty stupid to complain about subsidizing someone’s education and then suggest they can move elsewhere.

The idea of the medical education being subsidized looks true on the surface. However, what really happens in many universities is that the money brought in by a well-paying programme like medicine subsidizes the money-loser programmes. When I was a med student we were told it took about $30K/yr to educate us – we were asking because tuition was rising. We questioned that since all we saw were a couple of admins, photocopied booklets, and all of our physician faculty were either volunteers or paying (yes paying) to be faculty. The response was that they couldn’t trace dollars or where the money actually goes.

Oh, and I am more than 90% male than most of the population. That’s what my wife says anyway ;)
-LD

#79 Rural Rick on 02.19.20 at 8:23 pm

To be a terrorist you must strike terror or attempt to strike terror into a society or group. People are feeling lot of things but no one is terrified of Native Peoples blocking railway tracks and construction sites. You are wrong on this one great bearded one. They are protesters only.

Over 1,500 people have now lost their jobs. Go tell their families it’s all okay – just a little protest. – Garth

I was commenting on your use of the words “domestic terrorists” it is an inaccurate and inflammatory choice of words. All of us are affected to one degree or another but that does not make the protesters terrorists. – Rick

#80 Armpit on 02.19.20 at 8:26 pm

Sounds ripe for a new National and Provincial party to be created – TPP- (Ten Percent Party) and strategically move to the Ridings where your vote will win 25% of the seats outside of Quebec.

This most likely will make the Ruling Government a Minority with the TPP having a strong voice. Ha!

#81 Doug t on 02.19.20 at 8:29 pm

#46 Rural Rick

Here is some insight for you – my cousin is an anthropologist working across this country for the last 23 years with dozens of bands in all parts of the North – he has worked with numerous bands and represents indigenous groups in Canada in legalities to land claims and rights – today he calls me up and I quote “ this whole issue with the Wetsuweten is a complete sh*tshow – the Wetsuweten have not picked up the phone in ten years to discuss issues and NOW they claim they were not consulted – BS”

#82 Les on 02.19.20 at 8:34 pm

Let Mr. Trudeau know his FATHER would have invoked the War Measures Act to deal with people protesting and shutting down the country. He had far more kajunga’s than his son.

#83 Eddie Offshore on 02.19.20 at 8:43 pm

Garth

The solution is simple. Take your talent and legally move offshore to a jurisdiction where it makes more economic sense. Lots of places much nice and warmer than Canada looking for Doctors and other professionals. Maybe you could write an article on how to move offshore or would that be unpatriotic?

#84 Barb on 02.19.20 at 8:45 pm

“That’s NDP math.”

—————————————

B.C. = Bring Cash
The NDP has yet to realize people are leaving B.C.

#85 Shawn Allen on 02.19.20 at 8:47 pm

Who pays corporate income taxes? Companies or consumers?

#76 Nonplused on 02.19.20 at 8:19 pm said:

Taxing doctors another 6% will mean that their fees just go up. Taxing the guy who owns a 7-11 just means a Slurpee and hot dog costs more.

All taxes, be it on the low income Costco workers, the Costco managers, the HST at Costco, or the rich people who own Costco shares, are paid by the people who shop at Costco.

****************************
That sounds very logical. And that’s why when Trump reduced corporate taxes in the U.S. massively from 35% to 20%, I fully expected a lot of the tax savings would be passed along in lower prices.

Not because companies would want to but because of competition. Under intense competition, Walmart could use the lower tax to lower prices and still make exactly the same after-tax profit. Costco would be more or less forced to follow suit. And it probably did happen to some extent in a competitive industry like groceries.

But it did not happen to any great extent overall. I follow the S&P 500 earnings closely. They jumped overall 20.5% in 2018 a large part of that due to the tax decrease.

My conclusion was that at least for the S&P 500 companies they do not much compete on price. Apple, for example, felt no pressure to lower prices to pass along the tax decrease.

Again, your scenario is very logical and SHOULD happen in a competitive market. Why do you suppose it did not happen, the tax decrease was not passed along to lower prices?

If governments set doctor wages then those wages are unlikely to increase to make up for an income tax increase. Not unless there truly is a big exodus of doctors.

#86 dgb on 02.19.20 at 8:49 pm

might I suggest that instead of blocking the railways which is now putting people out of work and many many more in the near future that the first nations go to every parlimentary building in canada and keep those people from getting in to their jobs and you will actually see something being done about your concerns…you can see that our pm trudeau has NO concern for any of us little people being kept from our livlihoods as we should have a year of savings from our high paid positions to live comfortably without work paychecks for days, weeks months years…they will not help you until we are all broke…keep them from their jobs and you will get results for your time…why do you want the rest of us to hurt…we are past sympathizing with you …we need our jobs NOW….go sit and walk the steps of every parliament and mp office in the country instead and see the meetings that you wish for happen….please

#87 not 1st on 02.19.20 at 8:53 pm

The government is not going to grant indigenous peoples sovereignty over any stich of land because that would set a precedent that would have to apply to regular Canadians as well.

As you might know, Canadians have no property rights. Everything you sit on or own is property of the crown and can be taken from you in eminent domain, even your family home.

That’s the difference between a confederation and a republic. We never asserted our sovereignty over Britain as the americans did, so we are still subordinate to them. The constitution may have been repatriated but we never became free citizens like the americans did. That charter of rights is basically not worth the paper its printed on without individual property rights.

#88 TurnerNation on 02.19.20 at 8:54 pm

Great now I’m on a(nother) list. :-/

#89 akashic record on 02.19.20 at 8:57 pm

Let’s see what Mr. Bloomberg has got to say

#90 Barb on 02.19.20 at 9:02 pm

#61 Dave on 02.19.20 at 7:21 pm

We all pity the poor doctor who’s education we subsidized and who males more than 90% of the population. Maybe they can move to the US?
————————————-

How much did you give him?
I apologize that I didn’t pay a penny toward his education.

#91 BS on 02.19.20 at 9:33 pm

It boosts the top marginal rate in BC to 53.5%

Why would anyone bother working putting earnings into the highest marginal rate? Out of $1000 you get $465 to spend on other things that are taxed. Buy a bottle of wine, a pair of shoes and fill your tank with gas with that $465. Out of that $465 the government will take close to half again. You actually get about $300 out of $1000. I would rather walk bare foot and not drink than give 70% to the government. I see a net tax revenue decrease coming. The lefties never learn.

#92 BS on 02.19.20 at 9:38 pm

#79 Rural Rick on 02.19.20 at 8:23 pm

To be a terrorist you must strike terror or attempt to strike terror into a society or group. People are feeling lot of things but no one is terrified of Native Peoples blocking railway tracks and construction sites.

Tell that to the people who lose their jobs and ability to feed their family or pay their mortgage. Tell that to businesses that will never recover and go bankrupt. Protests don’t shutdown a country.

#93 Chimingin on 02.19.20 at 9:42 pm

#6-The blockade is absolutely terrorism. Here is the definition as found in the Criminal Code of Canada:

b) an act or omission, in or outside Canada,

(i) that is committed

(A) in whole or in part for a political, religious or ideological purpose, objective or cause, and

B) in whole or in part with the intention of intimidating the public, or a segment of the public, with regard to its security, including its economic security, or compelling a person, a government or a domestic or an international organization to do or to refrain from doing any act, whether the public or the person, government or organization is inside or outside Canada, and

(ii) that intentionally

(A) causes death or serious bodily harm to a person by the use of violence,

(B) endangers a person’s life,

(C) causes a serious risk to the health or safety of the public or any segment of the public,

(D) causes substantial property damage, whether to public or private property, if causing such damage is likely to result in the conduct or harm referred to in any of clauses (A) to (C), or

(E) causes serious interference with or serious disruption of an essential service, facility or system, whether public or private, other than as a result of advocacy, protest, dissent or stoppage of work that is not intended to result in the conduct or harm referred to in any of clauses (A) to (C), etc.

Get into the real world, snowflake. These people are criminals and should be treated as such. The fact that you argue against that illustrates what is wrong with this once fine country.

#94 The dude on 02.19.20 at 9:50 pm

What does your net worth need to be to be considered high net worth?
If I remember some old posts of yours a high net worth investor is $1 million of investable assets but not sure about the total high net worth amount.

HNW people have $1 million minimum in investable wealth (not including real estate). You can easily be a 1%er in terms of income and not be wealthy. – Garth

#95 Oakville Sucks on 02.19.20 at 9:52 pm

I don’t understand…move the heck OUT of Canada! Canada is o it’s way to collapse!

#96 Doug t on 02.19.20 at 9:56 pm

#93 Chimingin

Speaking truth once again here tonight

#97 Doug t on 02.19.20 at 10:04 pm

#89 akashic record

What country do you live in? What decade are you trapped in? Are you trapped in some parallel universe? Seriously where do you get these “thoughts” in your head ?

#98 Sydneysider on 02.19.20 at 10:05 pm

“forcing just 10% of citizens to generate 54% of all revenues”

One often reads that the top 10% control half of the country’s assets, so all they need to do to maintain this status is to invest their capital as productively as everybody else.

Why does everyone confuse income with wealth? Not the same. – Garth

#99 DON on 02.19.20 at 10:13 pm

#35 swm on 02.19.20 at 5:48 pm

Do you think something will be done to offset the stress test change?

Maybe the housing capital gains tax. That scenario could fit the robin hood theme. It would harm the rich who can buy and flip multiple properties and help the poor with an easier to get mortgage (and the lower prices that the capital gains tax would cause)
***************

Definitely a scenario that could play out…give a little and take a lot.

Garth’s been warning people for some time now and the CRA isa hungry hungry hippo.

Upon reflection: When I was younger and I called the CRA they knew everything and now that I am slightly older they seem to have forgotten what they knew.

But back to taxes, you could tax the water and air in Vancouver and people will still want to STAY…it is all about that West Coast Scene, ‘The Show’. Especially intoxicating if you are young or single and roll with your crew. But the stress that comes with the prices and the competition to advance to get a pay raise to free up some cash must wear on your soul.

#100 DON on 02.19.20 at 10:20 pm

#43 WTF on 02.19.20 at 6:23 pm

#29

BC budget balanced? Errr NO. Apparently the NDP forgot about debt payments.

If it was “balanced” this wouldn’t be happening.

https://www.debtclock.ca/provincial-debtclocks/british-columbia/british-columbia-s-debt/

Balanced…….sure
***************
Fiscal (yearly) Budget is balanced.

And who cares about debt, it’s different now! Everyone is doing it.

#101 akashic record on 02.19.20 at 11:27 pm

#97 Doug t on 02.19.20 at 10:04 p\
#89 akashic record

What country do you live in? What decade are you trapped in? Are you trapped in some parallel universe? Seriously where do you get these “thoughts” in your head ?

My mentioning of Mr. Bloomberg?

I understand your obsession with the Indians of the Great Global Crownland, but you really did miss the first debate appearance of the billionaire democratic presidential hopeful?

You are absolutely right though… a multi-billionaire competing for the democratic party nomination for presidency does feel like some kind of a parallel universe.

#102 Hookshott on 02.19.20 at 11:28 pm

#84 Barb on 02.19.20 at 8:45 pm
“That’s NDP math.”
—————————————

B.C. = Bring Cash
The NDP has yet to realize people are leaving B.C.
……….
Geez I hope so….maybe this will bring down the cost of housing!

#103 SoggyShorts on 02.19.20 at 11:30 pm

#30 A Dollar is a Dollar is a Dollar on 02.19.20 at 5:33 pm
Tax all earnings and all transactions at the same rate.
*********************
Ok, what rate?
Anything that poor folk could afford means nothing to the rich.
Or do you think that the poor can pay 53% and survive?

It’s been explained to you dozens of times on this blog: if everyone paid the same % in taxes, that would mean “rich”people would pay less than they do now!

You always focus on capital gains being half-taxed, but what about the basic personal amount (soon to be $15,000 per person) that is currently taxed ZERO?

As is, a minimum wage worker takes home 25k out of 30k, but you want to jack up their taxes? So they only take home half?

Your plan is to bankrupt the bottom 20% in order to make the top 20% slightly less comfortable?

Think harder.

#104 James on 02.19.20 at 11:40 pm

The phrase ‘domestic terrorists’ I felt was harsh. If you have a national voice, be careful with words.

#105 crowdedelevatorfartz on 02.19.20 at 11:40 pm

It was kinda fun watching Trudeau get roasted in Parliament today.
“Um, er, ahhh, Canada, umm, er, will negotiate respectfully with, ah er, umm… the ahh, er, protesters….”

Politically correct, paralysed, Minority Govt, embarrassment, that has painted itself into a corner with all their socialist pandering to every wingnut anarchist loon out there…. while the police stand by and wait for someone in govt to have the guts to give the “go” order….
Mr Pink Tshirt gets to wear it proudly as he turns into “the bully” that went back on his contradictory promises to be everything to everyone.
Koom-buy-Yahhh my Lord, Koom -Buy-Yahhhh

Little potato…posing as a leader…kinda cute until it became really annoying.

The PC’s better hurry up and get someone in charge, The Liberals are melting faster than the snow in Vancouver and before the crocuses are even up in Ottawa.
Ironically enough.
The NDP doesnt want to back this burning run away train wreck heading off the rails…..

Non confidence vote by May.
Election by Summer.
Trudeau turfed by his own party by Dec.
The pink Tshirt crowd will have spoken.
Karma

#106 GRG on 02.19.20 at 11:42 pm

Seems pretty obvious to me.
Government wants us to smoke less, they raise the tobacco tax.
Government wants us to drink less, they raise the alcohol tax.
Government wants us to work less,…

Grew up in Vancouver. Left after university graduation in the 1970s. Never had a desire to move back. Writing was already on the wall back then.

#107 Shmoo13 on 02.19.20 at 11:45 pm

Can you clarify: were you suggesting they buy the house within the corp? Is that allowed wouldnt they have to create a separate holdco? And how would they live for free with the exception of a taxable benefit. Can you elaborate? TIA

#108 Ian on 02.19.20 at 11:50 pm

“instantly our available cashflow is reduced by nearly $1,000 a month.” …ok, so let’s do the math: The marginal rate has gone up from 13% to 20.5%. So that’s a difference of 7.5%. A difference of $1,000 a month means that the monthly revenue in this bracket is $1,000 / .075 = 13,333.33, which translates to $160,000 annually in that bracket, which means that Dr. Moneybags is making nearly $380,000 annually. Must be nice to have that kind of problem.

#109 John in Mtl on 02.19.20 at 11:55 pm

Here’s one easy and benign way to clear the blockade on the rails: just send the army with about a half dozen helicopters and have them hover over the area for an hour where the blockade is located. That’ll clear everybody and everything out of the way in no time – rotor wash is a very powerful artificial form of wind.

No violence, just “friendly intimidation” to show who’s the boss! You intimidate us, we intimidate you.

#110 crowdedelevatorfartz on 02.20.20 at 12:06 am

Gee whiz.
Tiny little Victoria fined an unlicensed Pot shop $1.5 MILLION dollars for operating illegally….

https://www.citynews1130.com/2020/02/19/victoria-pot-shop-1-5-million-dollar-fine/

I wonder what the federal govt could do to fine illegal protesters that stop the trains from running?
A hunnered bucks? 5 hunnerd ? Maybe $1000 ?
Per day?
30 days in Jail?

Just a thought if the Liberals cant come up with any ideas.

Time to grow a pair and take the pink gloves off Mr Little Potato.
Before your own Party nukes you.
Not that there’s anything wrong with that idea.

#111 Michael in-north-york on 02.20.20 at 12:15 am

#8 Piano_Man87 on 02.19.20 at 4:35 pm

Dr. and Mr. Moneybags are collateral damage, which exist for every broad brush policy. Not exactly a shock that Garth didn’t pick people earning $10M/year as an example for how the tax will affect people.
*****

Collateral damage is going to be the main outcome. When you attempt a war on the rich, you get a reduction in productivity without any reduction in inequality. People who work an earn, either switch to working less or depart altogether.

People earning $10M/year, on the other hand, will always find a way to keep their dough. Whether you like it or not.

#112 Dr V on 02.20.20 at 12:44 am

Great topic tonight.

Top 10% starts at $96k? My and Lily’s household total
makes about double that in a better year. But the total realized? Maybe 60%. And a nice chunk of that
goes to investments.

My advisor tells me we can have $78k after taxes
in retirement. A single person needs an income of
$103k to generate that. Definitely a 10%er. But the
taxes we owe will be easily covered just by our OAP.

I’m going to be a 40%er and a 10%er at the same time!

so what’s the lesson? First, minimize realized income.
Second, avoid big debt, as that means you realize more income and pay more tax.

Big debt = big taxes

Also use all the tricks. Cdn dividends (0% marginal rate to $49k), RRSP (not too much though), TFSA,
business incorporation (if possible).

#113 Damifino on 02.20.20 at 1:56 am

#82 Les

Let Mr. Trudeau know his FATHER would have invoked the War Measures Act to deal with people protesting and shutting down the country.
—————————-

Maybe not yet. In 1970 the FLQ kidnapped a Quebec minister who turned up dead the trunk of a car. They also kidnapped a British diplomat with intent to do the same but eventually released him after negotiations.

It’s not quite time for the war measures act. But it might come to that if cooler heads can’t prevail. I really hope not, but the stakes grow higher by the day.

Tonight a few hundred misguided folks are blocking some Vancouver intersections (again) while the police stand by. Worrisome.

#114 Glorious Socialism on 02.20.20 at 3:14 am

No, Ottawa is not silent on the subject of Iran murdering 67 Canadians and many more in a terrorist shoot down of a civilian airliner. Trudeau sought out the Iranians in a separate meeting room as Trudeau was passing and quite purposefully and shock the crap out of the obviously shocked and overjoyed Iranian Foreign Ministers hand. The shake was a full pump, recorded and timed at 20 seconds. Dangerously long.

Re: Rich doctors treated like ungrateful ghouls to be taxed with a firm whip-hand. I believe the wording in the budget used by Carole James is “ they don’t mind paying more” , as if doctors were polled and wholeheartedly agreed to step up.

Indeed , NDP math at work. I know many professionals across the spectrum, docs included, and even some hard core socialist actors and artists who have stepped back from the grind to work less than half the week. “What’s the point” of working when you’ll receive zero dollars for the effort.

The reality is , this tax the rich scheme is class warfare left over from 19th century grievances and later Marxist university exposure. No doubt the extreme left “Sunshine List” of million dollar civil servants is exploding bile in close quarters over the continued rake.

Does anyone think the alligator really waits to eat the collaborators last. Re-read that folk tale , ‘The Tit Mouse and the Crocodile’. The mouse never makes it to the other side, ever. “Why did you eat me” , cries the mouse as he disappears down the crocs gullet. “ Because that’s my nature”, replies the croc.

Re-read ‘The Communist Manifesto” friend. No one survives that story either, ask the Ukrainians what happened when Stalin came to town.

#115 Rob Hepburn on 02.20.20 at 3:21 am

This about sums up Canada right now:

‘Hey, best and the brightest, we don’t want you.’
https://www.canadianlawyermag.com/news/features/tax-law-legal-report-killing-the-golden-goose/326397

It is still a highly desirable destination for foreign nationals willing to work hard from third world countries. They can invest sweat equity in the multicultural dream until the reality of 50+% tax rates sink in.

As long as there are willing participants to come and maintain the tax base we can keep the Ponzi scheme rolling.

Government just has to put in the bare minimum work to give the impression of law, order and fairness (whether or not that is the reality).

The domestic best and brightest will manage just fine through tax avoidance and emigration.

#116 Piet on 02.20.20 at 4:00 am

@ #69 Astronaft on 02.19.20 at 7:46 pm

What if democracy and capitalism is no longer serving our society well? They are the best we had so far, buy maybe it’s time for a new social structure. Egg shell is a very important stage of bird’s life, without it a bird wouldn’t form property. Yet when the time comes a shell needs to be gently and lovingly dismantled.

I encourage all to listen to Gary Zukav interview to Oprah timestamp 43:40
https://youtu.be/OJ6okNOxRqo

———————–

Thanks for the link to an interesting interview. Zukav talks about how our societal institutions, conventions, and laws have evolved in response to our fears. Zukav says things will improve when more people become motivated by love instead of fear. Are we entering of a period of spiritual awakening where more widespread recognition that we are each individual facets of the same universal consciousness becomes a significant factor in bringing about positve change?

#117 Sail Away on 02.20.20 at 6:19 am

Trudeau is the human equivalent of a Cocker Spaniel desperately eager to please the criminals carting away his owners’ belongings.

#118 Sail Away on 02.20.20 at 6:27 am

Paul St. Pierre coined the term ‘amiable idiot’. Now we have Justin, the amiable idiot.

#119 mitzerboyakaQueencitykidd on 02.20.20 at 7:03 am

It looks like that blocking the railroad thingy
don’t work so good out here in the prairies where most people drive big old trucks with a 8 foot bed …
that never has to be made

#120 Damifino on 02.20.20 at 8:07 am

#105 crowdedelevatorfartz

Non confidence vote by May.
Election by Summer.
Trudeau turfed by his own party by Dec.
The pink Tshirt crowd will have spoken.
Karma

—————————

At least we can dream…

#121 David Hawke on 02.20.20 at 8:10 am

#82 Les on 02.19.20 at 8:34 pm
Let Mr. Trudeau know his FATHER would have invoked the War Measures Act to deal with people protesting and shutting down the country. He had far more kajunga’s than his son.

It`s a sad state of affairs in Canuckistan these days, sure glad I retired to the tropics a decade ago.

#122 crowdedelevatorfartz on 02.20.20 at 8:14 am

Alberta anti protesters dismantle railway blockade…..in about 10 minutes….

https://edmontonjournal.com/news/local-news/protesters-block-cn-rail-line-in-west-edmonton

Do your job PM Pink Shirt or things will get real ugly real fast.

Protesters are putting law abiding people out of work for no reason other than the spineless policies of an ineffective government.

Nonconfidence vote now.
PC’s get ready for an election asap.
Campaign on a Law and Order ticket.
Joe Average is fed up with socialist doublespeak and “negotiations”.

#123 crowdedelevatorfartz on 02.20.20 at 8:22 am

I hope all the people living on the land where these blockades are set up have been enjoying a good nights sleep over the past few days.
Because when the Trains start running again …..and they will start running again……. the train horns will be blasting day and night as they roll through.

Loud and long.
Take that….

#124 Captain Uppa on 02.20.20 at 8:24 am

The GTA real estate market is once again a complete inferno. FOMO as far as the eye can see. High income earners plopping everything into RE with high monthly mortgages. Low income earners stretching to just get in.

Without getting into any of the surrounding arguments of bad or good, rent or own; the reality is that RE in GTA trumps ALL for the 6 or so million souls here.

Chooooo CHOOOOOOOOOO!

#125 Patty Swan on 02.20.20 at 8:33 am

The Corona Virus Rally is intact and ripping it.

https://www.bnnbloomberg.ca/tsx-sets-new-record-high-on-rally-led-by-energy-and-materials-1.1392465

A simple flight to safety is putting big bucks in my bank account. Stocks that pay divvies are king.

The prospect of more low rate juice as long as we can imagine is just more gasoline. The Fed is cranking it out. China double that.

Further out we imagine a knee jerk recover will pop out when it’s over. That’s what the market is, a forward looking mechanism. Markets always rip when headlines are horrible. Remember the 80’s?

I wanna put on some Roy Orbison and touch touch touch myself. The market opens in a few minutes. Gotta run. Oh Yeah Baby.

#126 Q2 Class No. 6131 on 02.20.20 at 8:40 am

‘Iran shoots down a passenger plane full of Canadians, and Ottawa is… silent.’

Not exactly. T2 shook hands, embraced and ‘warmly’ greeted Iranian leaders last week while overseas. The story was supposed to be kept secret and, when released, was promptly buried by the Canadian MSM. So much for real news.

#127 Classical Liberal Millennial on 02.20.20 at 8:50 am

If you don’t want to call them domestic terrorists, don’t call them protesters either.
They are disruptive radical criminals.

#128 Did B.C. really balance the budget? on 02.20.20 at 9:10 am

If the BC government is going to borrow 22 billion over three years did they really balance the budget?
I think it’s fancy accounting.

#129 Doctors work less on 02.20.20 at 9:13 am

I agree with the above advice
Suggest to the wife to work 3 or 4 days a week
Enjoy life
Move to a cheaper city like Nanaimo. Housing is 1/3 of Vancouver prices.
But buy before everyone Vancouver figures this out!

#130 Big Bucks on 02.20.20 at 9:17 am

Trudeau is afraid to break up the blockades for fear of violence.Violence or the fear of it is TERRORISM period.

#131 IHCTD9 on 02.20.20 at 9:20 am

“Any tips for us “ultra wealthy” people who “need to pay a ‘little bit’ more?”
___

Oh yeah here’s a tip – gtfo of there unless you like what is happening to you right now. All your fellow BC’ers are voting to get your rich Doctor behinds taxed into the ground. You’ll be asking this same question for the rest of your lives living in BC.

If you stay, don’t come back here complaining about getting it up the wazoo all over again next year.

#132 Sail away on 02.20.20 at 9:30 am

It’s ok to be benevolent and patient when you’ve already proven capability for tough action. Trudeau the manchild hasn’t proven any capacity for toughness.

He is good at being capricious, selfish and sanctimonious, though, much like a 5 year old.

#133 crowdedelevatorfartz on 02.20.20 at 9:50 am

BC NDP budget “shell game” continues…… BC Transit budget quietly cut…..

https://vancouversun.com/news/local-news/budget-cuts-b-c-transit-funding-government-cites-agencys-surplus

Cut budget in one place to give to another place….then pat yourself on the back for “balancing” the budget….

Business out here is booming, HUGE shortage of tradesmen everywhere and the NDP say, and I quote,

” …….discretionary cuts of up to $300 million annually are key to keeping the budget balanced during tight economic times for the province……”

Tight economic times….WTF?

Just wait until we get an Alberta style recession……then they will wistfully gaze back at 2020 as the “good times”….. apologies to Jimmy Walker

#134 Quintilian on 02.20.20 at 10:11 am

I felt so much the urge to write in support of the poor doctor’s husband, but my eyes welled up and the keyboard become increasingly difficult to see.

I guess I will have to somehow pull myself together and make an effort to muster up the energy to help fight the great injustice foisted upon these people whose only crime is being greedy, and have no sense of social justice.

#135 IHCTD9 on 02.20.20 at 10:22 am

Recipe for middle class prosperity in Canada.

1. Don’t live in YVR/GTA
2. Get married/shacked to gainfully employed spouse.
3. Don’t earn too much via paycheque/salary.
4. Consider 3-4 kids to cash in on 5 figures/yr free handouts.
5. Exploit every option and shelter for 5 figure tax returns
6. Vote for more Politicians like Trudeau.

^There you go kids. You can sweeten the deal even more by having the W/H (or both) work a govy job and get that sweet DB pension on top of paying no taxes. More icing is troweled on by cost cutting via learning skills, and shopping the local FNR (yes that’s illegal if you’re a gringo, but don’t worry – no one is enforcing any laws out there).

#136 Franklin Camden on 02.20.20 at 10:28 am

“Schizophrenic” is right. While on his Ridiculous Africa Tour , Trudeau has been touting Canada’s assistance in developing African resource and oil plays. HUH?

He’ll beggar Canada to set an example for Greta but Oil Wells and pipe in Africa running across tribal land is Super OK with Trudeau. This guy is either crazy or the reason that Soros wants Canada shut down is to prove his power in Europe.

https://business.financialpost.com/news/economy/schizophrenic-in-ironic-twist-canada-offers-to-help-african-states-build-their-energy-projects?video_autoplay=true

What happened to saving the planet Justin? It’s all a lie, right?

#137 Sold Out on 02.20.20 at 10:30 am

My goodness! I think researchers are using this blog as a petri dish.

Just because you’ve got the scaredy feels, it doesn’t mean there’s an actual threat. You’d swear there’s actual terrorists in your front yard, armed with 2 x 4s and molotov cocktails.

Take a deep breath, walk the dog, and expect this all to blow over soon. Cortisol is bad for you; give your adrenals a break. It concerns me that people who are so easily manipulated into a state of blubbering fear and rage also possess driver’s licenses.

https://www.psychologytoday.com/ca/blog/mind-in-the-machine/201612/fear-and-anxiety-drive-conservatives-political-attitudes

#138 Shawn Allen on 02.20.20 at 10:31 am

Why negotiate when you can simply make demands which a weak government will agree to?

“RCMP in British Columbia have offered to move away from a barricaded area and withdraw from Wet’suwet’en territory, Public Safety Minister Bill Blair said Thursday.”

The message is very clear. Illegal protests get results. Come one, come all, to protest in Canada.

#139 IHCTD9 on 02.20.20 at 10:38 am

#113 Damifino on 02.20.20 at 1:56 am

…It’s not quite time for the war measures act. But it might come to that if cooler heads can’t prevail. I really hope not, but the stakes grow higher by the day.

Tonight a few hundred misguided folks are blocking some Vancouver intersections (again) while the police stand by. Worrisome.
_____

IMHO, it’s only a mater of time before some loose cannon within the Citizenry will decide “****-this” and take matters into their own hands.

What then?

Trudeau is rolling the dice big time by letting these kinds of situations fester.

#140 Sold Out on 02.20.20 at 10:56 am

Further on the subject of fear:

If your provincial government decides to sink your pension into risky energy companies, then it’s time to panic. Doubling down on a dying industry when big institutional investors are divesting.

https://www.cbc.ca/news/canada/edmonton/carbon-risk-alberta-public-pension-1.5469552

#141 Greg Franklin on 02.20.20 at 11:09 am

Most taxes collected by governments is personal income taxes. The last time I checked it was 60% of all tax revenues collected. People paying most of all these personal income taxes which is most of the taxes government depends on is from maybe 15% to 20% of all the Canadian population.

The problem is all income from benefits and social welfare payments are not taxed from welfare to WSIB, workers compensation, child tax benefits, some government pensions, G.S.T/H.S.T. credit etc. etc.

They should be taxed just like other income and I don’t know why getting paid from governments should be tax free. It is free money and should to taxed.

Payroll and consumption taxes are a much smaller percentage of all taxes collected, 15% to 20% at most.

#142 G on 02.20.20 at 11:38 am

For the persons that might be interested?
No links included here today as I did in past posts.

Dr. John Campbell Feb 20 9min
video talk today is on the difference between droplet V…

Dr Paul Cottrell Feb 19 11min his call/talk with a women from Texas.

#143 Dups on 02.20.20 at 11:44 am

I have heard that, the Gov slaps people’s hands with feathers now if you do something wrong…and they will bring you Maple syrup to become friends afterwards…OH Canada!

#144 Eks dee Siple on 02.20.20 at 11:48 am

Someone at the CBC is paying attention to my GF posts: there is no democracy or equality in corporate capitalism, how can there be any in the economy at large?

https://www.cbc.ca/news/canada/saskatchewan/sask-ceo-one-of-few-women-leading-tsx-listed-companies-1.5467911

#145 CanadianGrizzly on 02.20.20 at 11:50 am

As a globalist, T2 is acting according to the wishes of his UN master by not addressing this FN protest.

He wants Canada to further split off into regions, interest groups, sub-cultures of belief and values to bring chaos to Canada until it nears collapse then offer the Globalist agenda as the solution. Divide and conquer. Fracture and bankrupt Canada so it won’t or can’t put up a united stand against the UN/IMF/BIS as they implement their globalist agenda.

T2 is not interested nor does he cares for a unified Canada. From the Toronto Sun “Justin Trudeau told the New York Times in 2015 that Canada is becoming a new kind of country, not defined by our history or European national origins, but by a “pan-cultural heritage”. “There is no core identity, no mainstream in Canada,” Trudeau said, concluding that he sees Canada as “the first post-national state.””

Globalists have tried to implemented their agenda in others nations like Venezuela , Greece, Italy etc… but have not succeeded (yet) because those nations each have a strong national identify and have fought and resisted as a nation. They are even trying to fracture the US with their capture of the MSM, education system and the Democratic party but Trump and his MAGA campaign is slowing them down.

T2 truly wants Canada to be the FIRST post-national state – a UN puppet controlled by the one world government / globalist crowd. He is not accountable to Canada and its citizens. He only answers to his Laurentian elite political support based and the UN.

Canada as a nation is so conically spiraled on the external surface of a cone.

#146 Eks dee Siple on 02.20.20 at 11:53 am

#68 Cr … thank you for confirming what we already knew: medical profession in Canada is rife with nepotism. Where are the actual good people who want to be doctors to help others rather than just themselves? Let me know when you find one.

#147 Eks dee Siple on 02.20.20 at 11:56 am

#138 Shawn Allen… it was illegal to protest slavery, to claim the earth was not flat, to allow women the vote.
Just because it’s illegal does not make it wrong. And especially vice versa.

#148 G on 02.20.20 at 12:01 pm

re:+-, if the trains aren’t running wheat isn’t being shipped out of the country. I’m not smart enough to know if this is a good thing or not in the midterm??

UPDATE 1-Australia says 2019/20 wheat harvest drops to lowest in 12 years. Feb 18,2020
https://www.reuters.com/article/australia-wheat/update-1-australia-says-2019-20-wheat-harvest-drops-to-lowest-in-12-years-idUSL4N2AI1RS

#149 Eks dee Siple on 02.20.20 at 12:10 pm

Itchy, please comment: Doug Ford is MIA, why is that?

#150 G on 02.20.20 at 12:12 pm

#145 CanadianGrizzly. I think I remember in the last election leaders debate May pointed out her UN pin she had on. And I don’t recall there being a Canadian flag in the room in the TV shots, Maybe I just mist seeing it? They’re were a couple upside down triangles on the wall, for just some artistic flare is My guess.

#151 oh bouy on 02.20.20 at 12:18 pm

@#62 Drew on 02.19.20 at 7:22 pm
A lot of city people seem to think earning $80,000 or having more than $1000 saved = rich, and love the thought of all that money getting sucked up by the Government.

_____________________________________
hey drew, i fixed your comment.

A lot of people seem to think earning $80,000 or having more than $1000 saved = rich, and love the thought of all that money getting sucked up by the Government.

#152 G on 02.20.20 at 12:32 pm

Why can’t we all just get along???

‘Asking for trouble?’ VIDEO shows American APC pushing Russian army jeep off road in Syria Feb 20
https://www.rt.com/news/481277-syria-russia-us-collide/

#153 Eks dee Siple on 02.20.20 at 12:43 pm

I need help. No, not that kind. Can someone elaborate on the below strategy?

“If your family doesn’t own shares directly, the same can be accomplished by paying dividends to them through a family trust of which they are beneficiaries.”

#154 Sold Out on 02.20.20 at 12:48 pm

There must be a Rebel media site that has a ‘word salad’ comment creator; choose from “UN, elite, Soros, globalist, commie, socialist, new world order, Laurentian, Papineau, potato, fake news, nothingburger, LGBTQ agenda, rainbow flag, and protest”, combine with a couple of angry verbs, then copy and paste.

#155 IHCTD9 on 02.20.20 at 12:54 pm

#149 Eks dee Siple on 02.20.20 at 12:10 pm
Itchy, please comment: Doug Ford is MIA, why is that?
___

DF does not need to say a word on this topic as Trudeau is busy kicking his own @ss here. Keeping silent and not dressing up is a great plan – maybe T2 should try it sometime when it stands to benefit him.

Also, I think the Native treaties are Federal jurisdiction.

#156 IHCTD9 on 02.20.20 at 1:19 pm

#147 Eks dee Siple on 02.20.20 at 11:56 am

Just because it’s illegal does not make it wrong. And especially vice versa.
___

So, I think paying income tax is wrong (never mind the reasons). Can I just stop paying them because I think so?

Obviously not.

These protesters in many cases are going against the decisions and agreements made by their own councils. They are pretty much just $h!t disturbers that make up their own rules, and answer to no one.

Negotiating with these types is a total_waste_of_time.

I WISH Trudeau would grab a brain and get these guys off the damn tracks before something worthy of international headlines happens.

#157 Shawn Allen on 02.20.20 at 1:20 pm

Pension Investment Worry?

#140 Sold Out on 02.20.20 at 10:56 am
Further on the subject of fear:

If your provincial government decides to sink your pension into risky energy companies, then it’s time to panic. Doubling down on a dying industry when big institutional investors are divesting.

https://www.cbc.ca/news/canada/edmonton/carbon-risk-alberta-public-pension-1.5469552

************************************
The Alberta government pension funds are professionally managed by an arms length entity, AIMCO.

They are well diversified.

This is the public sector union complaining. The employees are represented on the pension management boards. This complaint is one load of crap and of zero concern.

Imagine how dumb it is for the employees of a province dependent on the energy sector to suggest that the pension plan should not invest in that sector even as part of a diversified portfolio. Do they think prosperity will be delivered by the tooth fairy?

#158 G on 02.20.20 at 1:25 pm

#146 Eks,
I dated a couple Dr. when I was younger. And had a heart issue when born, so I’ve meet many Dr’s, and have a couple Dr. friends in a recreations group I’m in.
I do not agree with your characterization of Dr’s.!

First you need to have an upper IQ rang as a start. (I’m not even close.) (and you don’t want your Dr. to not be smart. Do you really?)
You pay lots of money and many years of your life in training and education so you can help others.

Why would a smart person that wants to help others not want to help themselves and there own families too?
If you think otherwise you need to pull your head out of your ass.

If the stupid Government/tax man just jacks the tax rate on them or smart people that start a business and employ other people for that matter. You need to be clueless to thing they aren’t going to be looking around for other options to not be taken advantage of.

The government need to stop spending tax dollars and accepting money loans as if it’s not there’s, on behave of the tax payer. the bank always wants the interests paid. If you don’t pay back the principle they are more than happy about that, since they keep making more money off the tax payers backs.

When Dr. and other smart people see they’re getting screwed over by the Tax man they are going to be looking for a way out. Then just wait and see what sort of tax base is left to plunder. Think your person taxes are high know just wait, your next in line. Get ready to bend over. It isn’t going to be the people you elect that are next in line, it’s going to be you!

#159 Sail away on 02.20.20 at 1:29 pm

#155 IHCTD9 on 02.20.20 at 12:54 pm
#149 Eks dee Siple on 02.20.20 at 12:10 pm
Itchy, please comment: Doug Ford is MIA, why is that?

——————————-

DF does not need to say a word on this topic as Trudeau is busy kicking his own @ss here. Keeping silent and not dressing up is a great plan – maybe T2 should try it sometime when it stands to benefit him.

——————————-

Yes- never interrupt the enemy when he’s making a mistake.

#160 Tina Simms on 02.20.20 at 1:32 pm

Eks dee Siple, just face it, your a socialist and can’t see people succeed. You are envious and just like taking people’s stuff because you can’t achieve anything worth of value in society.

Your goal and many others is to destroy things just like a parasite that once done with the host dies with it if it can’t feed off of others. Who is paying you to be a troll.

#161 NoName on 02.20.20 at 1:53 pm

@#152 G

Oh Gee, sotp reading rt, little bit of road rage and you all apoplectic… You shoud sit thru hole video it gets more and more interesting towards the end, and ill guaranti that you that youll be even bore scared.

https://www.youtube.com/watch?v=XaeDMOWkCwU

#162 G on 02.20.20 at 1:58 pm

#146Eks dee Siple,
One more thing, two things.

you think it’s hard to find a Dr and nurse now when you need one, just wait! Even if the taxes stay the same. many medical people are coming up to retirement age.
And there are the skill trades people coming up to retirement age too.

I’m not sure who the elected people thing are going to be around in the near future to make and fix stuff that keeps everything rolling along. it take more than just having people that can serve coffee to keep thing going.

What’s that you say, we can just order it online from China if need be. Think again!

#163 Eks dee Siple on 02.20.20 at 1:59 pm

#158 G… so you feel your anecdotal evidence is better than mine. K. Look at the overall picture. Health has not improved in 100 years or more. Autism 1 in 10, 1 in 3 with diabetes, 1 in 2 with heart and stroke, close to 50% cancer rates, highest MS/ALS in the world, most die from WRONG prescriptions/dosing, cardiac stints most lucrative to these high IQ people most often when unnecessary, and often lead to death, health care costs exploding FUBAR. Exploitation everywhere. Yet, 250K+ take home is not enough. These people are Garth’s #1 client base, so it’s only natural that he continually broaches this topic on their behalf. Garth hates me for pointing this out. Compare physician compensation around the world, not just with the US.

#164 Eks dee Siple on 02.20.20 at 2:01 pm

Hey Tina Simms. Face what? My income is 7 digits. My net worth is 8. Probably my IQ too, though I think that is a stupid test of intelligence. You were saying? Do you even know what anarchy means? I know that Shawn Allen doesn’t, based on his comment yesterday.

#165 G on 02.20.20 at 2:04 pm

‘Journalism is not a crime’: Australian MP Says Charges Against Assange Must Be Dropped After Visiting Him in UK Prison

#166 Eks dee Siple on 02.20.20 at 2:04 pm

BTW, I am a socialist for sure. You use that term in derogatory fashion, because you are brainwashed and misinformed, Tina Simms. It’s not all your fault.

#167 Entrepreneur on 02.20.20 at 2:17 pm

Obviously Canada is lacking leadership for the people within our borders (stressing this), this tangle mess is the result.

A globalist leader like T2 is not helping us figure this out. We need a leader that thinks for the people in this land for a solution. With a lack of leadership for so long only deepens/worsens problems coming from different groups.

So no more globalist leaders in politics which seems to me should be in Election Canada Rule Book or any group with the work Canada in it.

And this should be the start of correcting, called honesty.

#168 Stone on 02.20.20 at 2:23 pm

#94 The dude on 02.19.20 at 9:50 pm
What does your net worth need to be to be considered high net worth?
If I remember some old posts of yours a high net worth investor is $1 million of investable assets but not sure about the total high net worth amount.

HNW people have $1 million minimum in investable wealth (not including real estate). You can easily be a 1%er in terms of income and not be wealthy. – Garth

———

So what’s the difference between high net worth and ultra high net worth? I keep on hearing the two terms but it seems to be the same. Is there really a difference?

#169 G on 02.20.20 at 2:24 pm

#166 Eks,
What you said to Tina I will say the same back to you.
No need to respond.

#170 YVR Expat on 02.20.20 at 2:33 pm

#79 Rural Rick on 02.19.20 at 8:23 pm

I was commenting on your use of the words “domestic terrorists” it is an inaccurate and inflammatory choice of words. All of us are affected to one degree or another but that does not make the protesters terrorists. – Rick

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

The moment you start damaging the economy or threaten people’s livelihoods you’ve become a criminal. These protesters, backed by foreign interests, with the support of Gerald Butts, are 100% “domestic terrorists”.

And these “domestic terrorists” should be dealt with as such.

#171 G on 02.20.20 at 2:49 pm

#163 Eks,
yes my expectance is just a small sample
size.
I don’t believe the vast majority of Dr. are not trying to help people, period.
100 years is a long time, I’d beat it has improved since then just a bit.
The warning president Eisenhower gave about the military industrial complex, and he almost included the congress I believe, could also be applied to the Medical/dental/drug industry’s. Corporations are about making money, period,or should I say bottom line..
as you say about % of new modern ailments… periodic table, An F word and H2O comes to mind and an M(Hg)word, but I’m trying to refrain from mentioning them here.
They are still many problems in this world that need to be made better. Easy answers are sometimes hard to find, to the detriment of others unfortunately. I wish it wasn’t so.

#172 G on 02.20.20 at 3:04 pm

#161 NoName, Thanks for the link.

Fog of war. CNN? One side invited in by sitting government, one not. truth somewhere under the fog, or maybe oil.

No easy answers. Sometimes informative or just interesting to see what is being said on the other side of the curtain, when on the yellow brick road.
I like looking around why’ll inside Plato’s cave, must just be me?

#173 Sold Out on 02.20.20 at 3:24 pm

Garth loves to trot out the damage to doctors with every tax increase. Canadians love their socialized medicine, and presumably get all dewy eyed at the thought these paragons of virtue may suffer.

I worked with plenty of docs over the years, and like the gen pop, there’s a diverse range of personalities and motivations. You can indulge in a little generalization about their motivations based on the area of practice:

GP = hopeless idealist, should be paid alot more
Orthopedic surg = may be a sociopath
Ophthalmologist = can’t see anything but money
Plastic surg = unhealthy fascination with breasts and money
Emerg med = adrenalin junkie who in incidentally makes lots of money
Radiologist = doesn’t actually like people, substance abuse is easier to hide

You get the idea. Lauding and lionizing them all, as though they’re all Albert Schweitzer clones, is simplistic and wrong.

Like Eks pointed out, not all medical procedures result in improved morbidity and mortality. Then there’s this per Wikipedia:

According to Dutton, the ten careers with the highest proportion of psychopaths are:[17]

CEO
Lawyer
Media (TV/radio)
Salesperson
Surgeon
Journalist
Police officer
Clergy
Chef
Civil servant

And remember, mortality drops during doctor strikes:

https://www.ncbi.nlm.nih.gov/pubmed/18849101

#174 Ubul on 02.20.20 at 3:28 pm

#165 G on 02.20.20 at 2:04 pm

‘Journalism is not a crime’: Australian MP Says Charges Against Assange Must Be Dropped After Visiting Him in UK Prison

Assange’s saga to “hide from law” started by pressing charges against him by Swedish prosecutors, based on accusation of some women. After years of trying to extradite him the charges were quietly dropped, but by then he was trapped at the embassy in UK.

#175 Justin on 02.20.20 at 3:33 pm

Hello Garth, it has been awhile since you recommended ETF weightings. Can you please post what you you currently recommend? Thanks!

#176 How much do you have? on 02.20.20 at 3:52 pm

168 Stone $1M is hardly “ultra”. Maybe $10M. Big difference.

#177 Greg on 02.20.20 at 4:34 pm

Hi Mr Garth Turner,
Not sure how to word this, but wanted to check.
If you are the one that chose to not post some of my comments on your blog, that is quit all right. As opposed to someone else’s AI software filter. I’ll try and do less on that issue, or none if I can. And hope that the issue just quietly goes away. Fingers crossed. Sorry about over due it again lately.
I’ll just assume it has been you, Message received.
Thank you for being you!

#178 skye on 02.20.20 at 6:12 pm

domestic terrorism. good to hear someone calling it, for what it is.

#179 Grandmaster on 02.20.20 at 6:58 pm

People earning $220k or less see no tax change. People earning more than $220k will see end up pay more taxes, but only on the amount more than $220k.

If what this guy who wrote in said is true, in order for sometime to have to pay almost $1000 extra per month in taxes from this tax hike, they would need to be earning an annual salary of $545,000.

I’m sorry if my heart doesn’t bleed for those affected by this tax hike.

#180 Reasonfirst on 02.20.20 at 7:02 pm

I am pissed off but “terrorized”?? come on…

Did you lose your job? – Garth

#181 crazyfox on 02.20.20 at 7:17 pm

#16 Bob Dog on 02.19.20 at 4:48 pm

Someone living in BC making $100,000 per year will pay $15,606 in federal income tax. 15.6%

Someone living in USA making $100,000 per year will pay $15,246 in federal income tax. 15.2%

What are you barking about exactly? – Bob Dog

This really doesn’t do the subject enough justice, does it. It’s not a question.

https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5010-r/5010-r-19e.pdf

If readers go down to page 7 of the IT return, they will see on part B a schedule of the federal tax rate:

$ 47,630 or less is 15% taxed
$ 47,630 to $ 95,269 is 20.5% taxed
$ 95,369 to $ 147,667 is 26% taxed
$ 147,667 to $ 210,371 is 29% taxed
$ 210,371 or more is 33% taxed

This is the tax rate for net income. All individual income is exempt from the first $15,000 in earnings meaning the first $47,630 earned is $32,630 fed taxed at 15.2% = $ 4,959.76 on the first $ 47,630 earned. 20.5% taxed on the next 48 K takes a bite, another 10 G’s. The next 50K is taxed at 26% for 13K more. The next 52 K is taxed at 29% for close to 15K. The rest is taxed at a full third straight up. If I make $ 210,000 a year gross income as an individual, I pay about $ 48 K in federal taxes.

So, Bob is right in his context that an individual $100K earner pays around $16 K in federal taxes which Garth quickly points out, does not include provincial but lets say I’m a sole proprietorship. I have to pay 10% in pension contributions on 96K out of 100K in net earnings. Add another $9.6 K… ouch! Now, we are at $26K in federal taxes and pension contributions before provincial. Where’s the break there? The rich complain… geez…. add provincial taxes and personal incomes with sole proprietors are getting creamed somewhere in the low 40’s well before making gazillions.

So, what does one do? Incorporate. Hope for a year where earnings justify and make the leap. Accounting will be 3K higher or more, about $1500 a year in lawyers fees every second or third year minimum but it’s worth it.

Btw, when the rich bemoan too high a tax rate, do they bemoan paying themselves 50% gains on dividend earnings meaning that 33% fed tax rate for those earning millions is fed taxed at 16.5%? Well… do they? Is that what they complain about? Because lets be clear, not everyone pays the same tax rate.

Lets examine this for a moment because once you incorporate, you can pay yourself out in one of two ways, either as an employee which pays out income that is taxed with the same rates as the CRA link above, or you can pay yourself out through shares of the company that are taxed as dividends at a 50% tax rate.

Sure, company shares will need to be established at a par value that will take a lawyer and an accountant and billing but at the end of the day, the 100% owner/shareholder of the corp pays half of the individual tax rate as they are taxed as a dividend (capital gain). Shares will deplete but corporations can issue more shares at an updated par value depending on equity meaning the owner of corps can pay themselves most, if not at some point all of their income through 50% taxed cap gains!

In some cases, say close to retirement, it may not be worth it to incorporate as a rollover of business assets make it too undesirable. In most cases though, incorporating pays. Are the rich too stupid to incorporate their earnings instead preferring to get hosed at full tax rates where they can? Lets cut to the chase, who reading this earning 7 figures a year actually pays 33% fed tax rates and full prov tax rates over 200 K in earnings straight up? Could I count them on one hand… even one finger? (dumb earners, dumb accountants, ok, probably can but I would think they are rare)

If I make 7 figures a year in income from a corporation of which I’m the only shareholder and pay myself in dividends that are only 50% taxed and wave the obligation to pay into pensions which I can because I’m a dividend earner and sole shareholder of corp dividends, I’m only paying 50% of 33%. Same applies with provincial tax rates, 50% of whatever that is (50% of BC taxed 20.5%, big whoop). So, if I’m earning millions and paying myself dividend earnings from my own company (through shares) I’m only 50% taxed on my top tax bracket! And who says I can’t, again, bears repeating, I update the par value of shares every 1 to 3 years through a lawyer and accountant and 50% of 54% Ontario (or BC) tax is 27% taxed ballpark if I’m not mistaken meaning @%$%^& are we talking about, the rich are getting hosed!! It’s a ludicrous claim that works only on those who don’t know tax codes (or chartered accountants).

What we really should mean to say if we are educated in taxation is the salary earner is getting hosed, sort of if they make more than 200 K a year (but their pensions are paid for them), or the sole proprietor earner who has to by law kick in 10% for pensions ’til they are 65 (they are getting royally screwed here, paying the most in taxes by far out of all earners) or the big earner who’s too dumb to incorporate earnings… right? Isn’t that what we really mean? I mean, if we really want to get to the nuts and bolts of the tax code? ‘Cause last time I checked, the smart cap gains earner is paying a touch more than 50% of 54% full tax rate, likely marginally a smaller tax rate than most earning 100K. Sure, higher lawyer and accounting bill but they can afford it. That being said, once again, this claim the rich are getting screwed (some 10 percenters, yeah… 1%’ers, no) is absolute rubbish unless one believes the rich are woefully ignorant with tax codes and hire woefully dumb accountants. Apologies if I sound offensive but when it comes to loot in a financial blog such as this, we should speak plain.

This view on NDP math against rich doctors forcing them out of work is also hyperbolic but when the partisan mindset comes into play, always is. I can’t see why it would be so difficult for any doctor in Canada to bill themselves out as a consultant employed by a corporation they 100% owned, for what it’s worth unless the federal government passed a law against it that I’m unaware of (which there isn’t). They are under contract pay after all and incorporating gives them more legal protection, so why wouldn’t they.

If doctors like to live the high life and pay themselves out their full annual income through wages, they’ll hose themselves. Early on, the first year plus of earnings they roll over as assets they can pay themselves out in dividends over the following 2 or 3 years as equity builds up. It’s either that, or perpetually roll over new corporations annually or use a lawyer to establish a new par value and issue new shares every year (which is likely not that big a deal… but far more costly through a lawyer and accountant. One will find its easier with 2 to 3 years or more of income equity built up).

If the doctor is smart, one can live cheap for a couple years, build equity and have the par value of shares re-established through a lawyer to later pay themselves through dividends with less hassle. When shares get exhausted, one can reissue more shares with a new par value or reincorporate or go to holdings for another run and eventually, take a one time cap gains exemption in the end but most of it is taxed as gains if it’s done right meaning once again, @%##^^## are we talking about, rich people are getting hosed?

With U.S. vs Canadian tax codes, the argument holds water. Otherwise, (feel to apologize again here for some reason) proposing the rich pay too much is an argument proposed by hyperbolic partisans banking on those unknowing of the the tax code who would argue, whether they were aware or not, for the same hyperbolic partisan reasons but it doesn’t make it true.

Whatever the motive, its to everyone’s advantage to simply know our tax codes, know the advantages and disadvantages of all levels of taxation, hire a good chartered accountant, ask the right questions (they still need some direction in places) and all will be well.

#182 Miles Lunn on 02.20.20 at 9:36 pm

Left Ontario in 2017 to get away from such rates as well as family and business and was quite happy to see it be 47.7% which is high but still competitive. Now it seems only Alberta and Saskatchewan + Territories (if you are willing to stand super cold) have top rates under 50%. Even in Europe which left loves to point to, majority have top rates under 50% and of those over its usually just barely while none exceed 57% (not much higher than us).

Unfortunately the whole soak the rich thing seems to sell well in Canada and it will probably take a large brain drain like in 90s before any politician attempts to reverse it. I am all for rich paying fair share, but the hatred towards success is just going too far. Anyways I am doing my part to see BC NDP and Trudeau get defeated, but at end of the day I suspect much like Ford and Kenney in their respective provinces not optimistic future government will reverse these so important to stop before as tough to reverse.

#183 Miles Lunn on 02.20.20 at 9:54 pm

“By the way, have you heard any opposition politician, anywhere, stand up and argue that excessively taxing successful people – like those who spend a decade in school and residency to become doctors, or start companies which employ thousands – is insane? An incentive to leave?
Nope. You haven’t. They leave that for a pathetic blog.
Whadda country.”

Not many at least not in Canada or recently, but about 20 years ago, many did but different times. Now in Conservative leadership race in 2017, three did. Erin O’Toole promised to reduce top rate to 31% so would still leave 5 provinces including 3 most populated over 50%, but better than now. Michael Chong would have returned to 29% so that would push them under 50% while Maxime Bernier proposed going down to 25% which would leave top rates at around 45% for combined levels. Rick Peterson proposing a 15% flat tax but true none in a general election campaign have in recent memory. You had Mike Harris, Gordon Campbell, and Ralph Klein who did but that was years ago.

#184 Tudval on 02.20.20 at 10:22 pm

The term ‘economic terrorism’ or sabotage is quite appropriate. What do you think #ShutDownCanada means? I actually find it a bit scary because we also have a government that is reluctant to enforce the law for fear of escalating violence. SO the protest IS violent. It is so, because they should have a reasonable expectation that the police will try to enforce the law and they can only do so with physical violence. The protesters are ready to resist and engage, they made that clear… they did not have to use violence to block the rail because there wasn’t anybody there guarding it, it still is an act of violence.

#185 I like cookies on 02.21.20 at 12:00 am

I just got paid today, and it was $300 lighter — an extra chunk went to income tax to make up for the retroactive tax increase. And I am a normal salaried employee with no personal corp to hide money in, so my options for minimizing the hit are minimal.

#186 David on 02.21.20 at 12:09 pm

I have stopped reinvesting my six figure annual dividend income. Too much of it is going to tax. And I’m increasing my charitable donations to reduce the taxes I already have to pay. It’s the perfect way to unload shares with big capital gains. I’m also looking at taking ma lot ore five star luxury cruises over the next few years to burn off some of that excess income. Better to pay myself rather than pay the taxman.

#187 Sail away on 02.21.20 at 12:39 pm

#186 David on 02.21.20 at 12:09 pm

I have stopped reinvesting my six figure annual dividend income. Too much of it is going to tax. And I’m increasing my charitable donations to reduce the taxes I already have to pay. It’s the perfect way to unload shares with big capital gains. I’m also looking at taking ma lot ore five star luxury cruises over the next few years to burn off some of that excess income. Better to pay myself rather than pay the taxman.

—————————

Well, that’s bunk. Nothing you write makes any sense whatsoever.

Just trolling, right? You can’t actually have money with that little understanding of it.