Andy Seliverstoff photo
My great-grandfather, Ebenezer Vining Bodwell, seems like a cool dude. He went to Ottawa as an MP in Canada’s first Parliament (1867). Later he ran Ontario’s Welland Canal and afterwards took over the books of the Canadian Pacific Railroad.
That eventually led him to Vancouver in 1887 (a year after the city was incorporated), where he also became president of the Vancouver Board of Trade. He died two years later in the far north. A bear? Wolves?
None of this I knew thirty years ago when I lost my mind, ran for the leadership of the federal Progressive Conservative Party, and hauled the Van BOT’s giant debt clock to Ottawa for the PC convention. Maybe it was fate.
At the time I was trying to embarrass my own political colleagues (the outgoing Mulroney government) over the disgraceful debt/deficit situation in Canada because a third of all taxes was being piddled away in interest. It didn’t work. Nobody cared. Kim Campbell was elected. But at least I didn’t come last.
Anyway, the debt clock project eventually was taken over by the rabid Canadian Taxpayers Federation. This brings us to today. Justin Trudeau just broke the clock.
The issue is that the thing only goes to $999,999,999,999, which is nine hundred and ninety-nine billion. But Mr. Socks, Chrystia the Impaler and Covid have pushed it past $1 trillion. So, we need a new clock. It will show the nation’s debt load now rises $1 billion a day.
As you know, the shortfall in Ottawa this year will be $383 billion or 7x greater than the worst-ever mess we previously had when Harper spent $56 billion to fight the credit crisis. Canada is spending more than any other developed country on earth, per capita, and we’re far from being finished. New lockdowns and economic devastation promise rising jobless rates, less government revenues and more expenditures. If it weren’t for rock-bottom emergency interest rates, we’d be permanently pooched. But this can change. Eventually it will. And the debt will need to be financed.
Okay, so the slimy little pathogen is behind all this, right? How can you blame poor Justin?
Says Taxpayer Federation director Aaron Wudrick:
“This government cannot blame the pandemic for the fact it broke its own promise to balance the budget and racked up more than $100 billion in additional debt during its first four years in office, nor can it justify $100 billion more in debt-financed spending in coming years, especially since it doesn’t even know what it’s spending it on.”
Okay, a trillion is bad news. But it’s a fair guess that now, like when I moaned over the issue years ago, nobody cares. Odds are there’ll be an election this year. The betting is the Libs will take it. The spending – CERB, enhanced EI, more child care pogey, wage subsidies, gender-based initiatives, climate change agenda and maybe a UBI – will increase.
So will taxes.
When Chrystia Freeland, who has no financial training or experience, became the first woman Minister of Finance, she was given a mandate letter. In it the prime minister instructed her to “identify additional ways to tax extreme wealth inequality.” This point was then reinforced in the Speech from the Throne, which was read by another Trudeau appointee, Julie Payette. (Snide comment withheld.)
The NDP, which currently props up the minority federal government, wants a wealth tax. However most countries have found this doesn’t work out. Thirty years ago a dozen western nations were trying to raise revenue based on overall wealth, but now only three or four continue. Seems rich people are elusive, slippery, mobile creatures. They also own stuff, like businesses, which can’t be taxed based on capital value.
So it’s lot easier and cheaper for governments to tax salaries and investment returns, or to raise sales taxes – which are more democratic, since they hit consumption rather than income. But there’s little doubt, given the $1 trillion in debt and escalating deficits, that Chrystia’s first full budget – expected in a couple of months – will be taxing. As T2 said, the target is “extreme wealth inequality.”
A new bracket for higher-income earners seems like a slam-dunk, so those 5.78% of blog readers who fessed up last week to making $400,000 a year or more will be feeling no love. And will the Libs revisit their war on doctors, lawyers, plumbers, anesthesiologists, drywallers and others elites earning incomes through professional corporations? It’s a good possibility, so stop hanging on to those retained earnings.
As for the capital gains inclusion rate, this is also believed to be a prime target. Right now half of cap gains are free and half added to annual income, then taxed at one’s marginal rate. The top tax grab is therefore 27% – seven points above the UK or the US. The NDP and other lefties want the inclusion rate jumped to 75%, which would constitute a massive tax increase on things like stocks, mutual funds, ETFs, rental real estate, PMs, art and businesses.
Most of the capital gains taxes in Canada are extracted from people making over $100,000 (that’s 10% of all Canadians, but 76% of this pathetic blog’s patrons), and they’re already paying 40% of all the taxes collected by government. So, guess what? You’re richer than you think. Pay more.
By the way, folks hit by these capital gains taxes are usually the ones who invested in financial or real assets that help sustain or build the economy and create jobs. Raising the tax encourages them to stop doing that and move their wealth elsewhere.
Good thing Ebenezer already got that damn railroad built.
201 comments ↓
I see the resemblance.
What’s with the man bun! But he wins the beard.
Had a friend who had a handicapped relative live in a condo which was bought through a trustee. I don’t have all the details but the family was astonished when it needed to be sold and the gain was considered a capital gain as it was owned by the trustee and did not qualify for the homeowner exemption. So great idea, let’s up the taxes of these elitist disabled piranhas.
Not a chance that railroad would go through now.
My long term chart on housing starts is up (1956 through 2020):
http://www.chpc.biz/housing-starts.html#Annual
There has been a long term downtrend (lower highs) since the mid 1970’s (OPEC oil embargo and soon after the 18+% 5yr fixed mortgage rate) vs the Census plot that has been in an uninterrupted and steady uptrend.
In the mid 1990’s when Consumer Confidence hit record lows leading up to the Quebec Separation failure of 1995, the nationwide housing starts plot began putting in higher lows on a similar uptrend arc to the steady climbing census plot.
Now, with the full 2020 data in place, it looks like a breakout of housing production above the long term downtrend since the mid 1970s may occur in 2021.
Garth, “You’re richer than you think.”
Justin, “They’re dumber than I thought.”
Here is the future. Massive control over our Movements/travel. That’s what all this is about, why on Day 1 of the New System rollout in March 2020 they told us #stayhome.
New US regime is wasting no time in limiting travel – driving. This also means living in the rural areas, with self-sufficiency and long drives will become penalized.
Farmers, farm staff will be affected. Hence control over our food supply.
Herding us into the UN Smart cities is the plan…watch it unfolding. Yep CV did that too:
“Incoming Transportation Secretary Pete Buttigieg has suggested taxing Americans for the number of miles they drive, a policy he endorsed as a Democratic presidential candidate.
The Biden Administration is actively searching for ways to fund its ambitious $1 trillion infrastructure plan.
…….
Speaking of food supply
Say, someone pointed out Lady Gaga’s recent outfit was a mirror of one from the Hunger Games movie. You don’t say. Here’s a link: https://tinyurl.com/y4how34g
…
– In Kanada we have no national bus line service any longer; airlines are but a shell; VIA cut back.
Electric cars have not the range for long road trips, and there are not enough charging stations to go around at all.
Yup but you are free to leave at any time…trapped in your tiny “Smart condo” in your UN Smart City.
As noted on some another weblog back in March 2020:
““We’re in an experiment. We’re now getting a glimpse of what a high tech, low carbon, limited mobility civilization looks like. The technocrats must be loving this – they’re going to have so much data to analyze after the experiment is over. Other major interest groups will use this experiment to further their agendas …””
…..
Ooohh he’s a conspiracy theorist!
https://toronto.ctvnews.ca/canadians-told-to-stay-in-their-home-province-and-cancel-all-travel-plans-1.5279068?
” Martin Firestone with Travel Secure believes if it becomes increasingly difficult to travel, people will just stay home.
“They are putting all these layers in place for only one reason and that is to deter you or de-incentivize you from traveling,” Firestone said.
As the vaccine rolls out against the virus, having the shot won’t change the rules when it comes to travelling.
“From an insurance perspective they don’t care if you have had the vaccine. From a government perspective they don’t care if you have had the vaccine. All the rules are the same whether you have had it or not,” Firestone said.”
Ebeneezer has Jean Cretien’s forehead…..are you sure there isn’t a Liberal in the closet Garth?
the vast majority of canadians have no money. and low incomes. A classic case of a poor nation is one with expensive real estate and low wages. Canada is classic. Go to third world countries, you will see expensive real estate, go to Venezuela a true basket case of raw poverty. there is expensive new condos being built in Caracus.
Go to Mumbai, new buildings next to the slums.
Everyone in Canada has there hand out to the government, and it gets worst every year, the old lady dies and had a few assets, and get distributed to her bum children who for whatever reason had trouble, broken families, lost jobs, bought too many toys when things were good. Poverty.
so you end up with fewer and fewer successfull people, who are taxed crazily and millions of poor people, seniors, single moms and bums. Every year that passes i can see 1% more of the needle towards less rich and more poor.
Trudeau will get elected again for the simple fact he keeps shoving money down people’s throats and they’re just fine with that.
Problem is that most of these people were not around during Mulroney to Chretien and the pain the deficit then wreaked on the economy. As you said many tax $ to service just the debt.
Let them vote for him, I will not though I am a Liberal (Mulroney once, NDP twice – since ’79, the rest Liberal).
Canadians will come to learn that what he has done to Gov Canada’s finances is unforgivable. They will not learn that until it is too late.
As usual, thinking they are smarter than prior generations and history is not a good teacher – though it seems to repeat far too many times.
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On the clock, buck up and buy a new one Taxpayer Federation or add another light box for the extra digit.
For drama, whitish duct tape on the left for the extra digit, write on that, if threadbare is the objective (and it ought to be).
This gentleman has always impressed me but he knows that his talents and efforts would go to waste as leader of what’s has sadly become a not so conservative party.
https://m.youtube.com/watch?v=Q0ypT_JZMSQ
#161 Dharma Bum on 01.24.21 at 10:14 am
I read a book a long time ago called “The Millionaire Next Door” (a 1996 book by Thomas J. Stanley and William D. Danko).
*****************************************
I have a picture of myself reading this book many years ago on Pigeon Point beach in Tobago. My wife read it first. It had a huge impact on our financial strategy going forward.
It was taken right around this beautiful spot. Thankfully no Hiltons were around there in those days.
https://s.iha.com/00122238486/Hilton-tobago-plantations-Pigeon-point-beach-in-hilton-tobago-plantations.jpeg
Re: Ebenezer Vining Bodwell
…died two years later in the far north. A bear? Wolves?
————-
The Honourable Mr. Bodwell appears to have been a fine, productive builder of early Canada.
Conan O’Brien look alike.
The Fraser institute says that when the cap gain is removed from income, the average income for those declaring the cap gain is not that high.
https://www.canindia.com/nearly-40-of-canadians-who-pay-capital-gains-taxes-earn-less-than-100000-a-year-fraser-institute-study/
The actual study was linked by another blogger a few days back.
Well at least we spent that much to contain this virus so we can live our lives without over the top restrictions… it was worth it.
Garth, It’s nice to see an example of how the rich stay rich. Did you REALLY struggle in your younger years or were you just slumming it to be cool. Oooooh, look at Garth, struggling as an up and coming FINANCIAL Journalist.
VAX Scorecard
32M Cdns 15 yrs or older.
To VAX them all by the dates below, how many per week:
End of Sept, Week 39 = 819,656 (Trudeau goal)
End of 2022, Week 52 = 614,742 (Armageddon scenario)
Week 3 complete as of Jan 23, people that received at least 1 jab (725,293 once, 75,330 twice):
762,958
Behind schedule (single jab):
End of Sept, Week 39 = 1.7M
End of 2022, Week 52 = 1.1M
Canada will need Novavax, hopefully high efficacy, to start delivering in May on their 52M promised doses to meet Trudeau’s “all vax’d by end of Sept” goal. J&J in April? 10M doses.
Otherwise end of Sept unattainable.
Canada will need other types of vaccines other than Moderna and Pfizer-BiNTech (mRNA type) since at 5% not efficacious these many vax’d Canadians will need a different type of vaccine (hopefully it [Novavax, AstraZeneca, J&J] will give them immunity):
1.6M
You all know vax deliveries are abysmal to date.
————————————
To date, Canada is getting farther and farther behind in its vax’ng end of Sept goal.
“Optimism the economy will quickly accelerate once the pace of vaccinations picks up.”
I feel sick when I see government recklessly spending public money on *buying votes*. Naturally, those that collect the most as a result of Liberal policies will never vote against them.
People like Freeland are not concerned with being good stewards of the public purse. She is an ideologue who schmoozed her way into power so that she can build her ideal world and stick us with the bill for the damages when it inevitably falls apart.
The best we can hope for is that people like this are not given enough authority to start shipping dissenters to labour camps because that is most definitely what the type of person who wants to change the world does.
Here in Kanada we are like mushrooms. Kept in the dark and fed s__t.
Guys we still gonna bang pots and pans outside, 7pm tonight sharp? 28 more days.
What do the Queen’s bankers have in mind for us? Record national debt? A new Bank of Canada e-currency announced?
With the dozens of elected reps and leaders fired in January, even the Queens rep – the GG, the path is wide open for this banking takeover
….
Meanwhile elsewhere in the world people are just living their lives as this short clip demonstrates.
A tounge-in-cheek tweet:
https://twitter.com/DrEliDavid/status/1353159294879981568
@DrEliDavid
Disturbing footage from Rio de Janeiro: The dreaded Brazil is rapidly spreading as bodies are piling up…
….
Anyone from Leslieville? Legendary Strats is no longer. Their very good British-Indian food brunch, wood fired oven. Even a few years ago condo developers were circling around this large building and plot of land.
Yes this purge of small business, the spoils of this WW3 is LAND: Seen elsewhere: http://www.stratengers.com Was open for 25 years, family owned.
…
If you recall tee-vee from 2019 the major news networks were selling us hard on “Ghost Kitchens” . Uber, Lyft with their tandem food delivery services IPO’d on the stock market. The genesis of the New System.
https://www.blogto.com/eat_drink/2021/01/coconut-ube-creme-brulee-toronto/
“Coconut creme brulee is the latest item you can order online from one of the many ghost kitchens popping up in Toronto”
…
Once again this News System is all about global control over our Feeding, Breeding and Travel/Movements.
All the big food and tech companies (Google venture capital arms, Tyson food, Beyond meat et al) already have invested tons into lab-grown synthasized “meat”. This is what they are selling. Food dependence. People just cannot fathom that this is all planned and is rolling our asap – Corporations rule the world. Day by day. New laws and restrictions bolster this.
Our breeding, population control yep CV did that too.
https://www.outlookindia.com/website/story/india-news-how-safe-is-it-to-have-sex-after-you-take-covid-vaccine-experts-advise-caution/371636
“[Dr Kothari] adds, “So I suggest that all the population which is in productive age group must be advised and be cautioned to use contraceptive for one year.
VAX Populi
———–
Prior Comment:
End of 2022*
*2021
———–
VAX threats or otherwise:
1. UK variant more deadly, 30-60% more so.
2. Brazil variant herd immunity > 76%.
3. Pfizer, Moderna 1st dose efficacy, 20-40%, 33% mode and NOT 52.4% (Pfizer).
Point 1:
https://www.welt.de/wissenschaft/article224907169/Coronavirus-Neue-Erkenntnisse-zur-britischen-Mutation.html
Point 2:
https://elpais.com/sociedad/2021-01-23/la-pesadilla-de-morir-asfixiado-en-los-hospitales-de-la-amazonia.html
Shades of Bergamo, IT last March (worse):
$73 to breathe 4 hours (Manaus – tragic, if susceptible don’t read the article):
https://elpais.com/sociedad/2021-01-23/la-pesadilla-de-morir-asfixiado-en-los-hospitales-de-la-amazonia.html
Point 3:
https://www.timesofisrael.com/how-well-does-the-vaccine-work-israels-real-world-stats-can-be-globes-guide/
————————
Forgot to mention Gov Canada all over Novavax for doses it will need to make good on its end of Sept all vax’d goal, 2 days ago, 52M dose contract:
https://www.globenewswire.com/news-release/2021/01/22/2163083/0/en/Novavax-and-Government-of-Canada-Finalize-Advance-Purchase-Agreement-for-COVID-19-Vaccine.html
And latest cost of vaccines per dose (AstraZeneca at cost until the Pandemic is over, the rest for profit):
https://i.imgur.com/7tIm2x6.png
Rewatched The Big Short on Netflix last night. Favourite part was the Baum team reactions to their realization that the RE growth was all based on debt and therefore unsustainable. Throw in job losses, high taxes, a pandemic, an aging population looking to cash out (my 71 Y.O. Dad just sold… his reaction was ‘I’m just so relieved to get my money out’) and we have the makings of a major correction. 1,2, 5 years who knows but it’s coming. GLTA.
P.S. Garth did you see these? https://twitter.com/dbcurren/status/1352625251096657921?s=19
https://twitter.com/CarmichaelTed/status/1351169007190216704?s=19
P.P.S. Go Bill’s!
Sorry Garth, but have to say this:
Canada getting shafted by Pfizer.
Just out from RAI today, Italia’s state funded broadcaster:
“Pfizer: supply returns to full capacity next week”
http://www.rainews.it/dl/rainews/articoli/vaccino-covid-pfizer-fornitura-torna-regime-settimana-prossima-3b5d8e9b-ab03-42a7-8abd-0c8de764b5f1.html
The excuse is something to do with 6 for 5 vials or some nonsense like that from Pfizer, our bad, next week Italia you get what you want.
Of course, the EU putting its foot down on Pfizer (and grinding its head on the concrete sidewalk) threatening legal action:
https://www.rainews.it/dl/rainews/articoli/Vaccini-Michel-faremo-rispettare-i-contratti-alle-case-farmaceutiche-5e5980fe-3d4a-4a1e-9cc9-21a0280f6608.html
Ya and Trudeau yesterday says:
“That said, Dr. Bourla assured me that hundreds of thousands of Pfizer doses will be delivered the week of February 15 and in the weeks to follow.”
Of course the guy actually getting the doses to Canada and whom I trust, Maj.-Gen. Dany Fortin said, in as many words:
“Pfizer’s deliveries will be reduced by up to 50 per cent over a four-week period, punting as many as 400,000 doses to a later date.”
Gov Canada on vaccine deliveries:
Left side of mouth.
Right side of mouth.
Maybe divide by 2 to get the true number of vax deliveries?
———————
Fine by me I live in Italia but as a Canadian (me), it’s TOUGH to take.
Basically, if you invested in Pfizer last year, you get vaccines, if not, c’est la vie…literally [expletive withheld].
“Optimism the economy will quickly accelerate once the pace of vaccinations picks up.”
The Federal Government is severely broken. Here is just one example (in the news link below).
How does society and taxpayers keep these leeches out of our pockets?
Do you believe the hiring committee could not find at least one person who is more qualified and reliable?
At least the City of Nanaimo had the sense to punt her.
https://nanaimonewsnow.com/2021/01/23/fired-nanaimo-cao-returns-in-senior-role-overseeing-trans-mountain-pipeline-expansion/
Easy fix, tax all Canadian real estate 1% a year on FMV until debt is paid off. Over 5 trillion in residential real estate so 1% times 5 trillion is I think $50 billion…a lot of zeros. Or even 2% would get debt paid off a lot sooner.
Raising the capital gains tax would soak more than just the rich, new analysis suggests
” the share of capital gains taxes paid by those earning more than $150,000 per year (in 2020) falls from 77.4 per cent when the capital gain is included in income to 48 per cent when it is excluded. In other words, those earning less than $150,000 a year pay a larger portion of capital gains taxes than many believe. In addition, the share of capital gains taxes increases from 12.8 per cent for those earning less than $100,000 when the capital gain is included in income to 38.4 per cent when it is excluded.”
https://financialpost.com/personal-finance/taxes/raising-the-capital-gains-tax-would-soak-more-than-just-the-rich-new-analysis-suggests
Where is the party of fiscally conservative, and socially liberal? I hate all of these political parties, and the conservatives aren’t going to win with an out of touch leader in Erin O’Toole. I didn’t know JT and O’Toole are the same age actually.
So Justin is spending more than any other country during this pandemic. Well let’s look at the number of dead in Canada compared to other countries. Canada has 18,000 deaths from the virus and the USA given it has nearly 10 times our population should have 180,000 deaths if they were doing as well as Canada.
But wait, they have more than double that number of deaths. They have over 410,000 people dead.
Question for you Garth: What is the cost of saving a quarter of a million Canadians?
Non sequitur. – Garth
Perhaps we can come up with an opposition party with a clear message and articulate leader who can explain what they would do differently. Until then…
#20 TurnerNation
In response to that Tweet by Dr. Philistine (biblical), peruse this chart vs. the all ablaze UK and their variant:
https://i.imgur.com/ApG6Vwc.png
And when was the video taken, in 2019?
If not I cannot believe these people are unaware of what is happening to their country.
THAT I cannot believe. No one is that stupid nor reckless. If you think that then you and Dr. Philistine are mistaken.
PS:
Next time, learn to expand Comments on that Tweet and read what the Brazilians themselves have to say as opposed to Dr. Philistine’s musings.
@#13 Sail Away
“…died two years later in the far north. A bear? Wolves?”
++++
Im thinking …taxes
Freedoms back please:
‘In a statement, Dr. Jean-Claude Tardif, director of the MHI Research Center, said the medication could have a “significant impact on public health and potentially prevent COVID-19 complications for millions of patients.”
The institute said prescribing colchicine to patients could also help lower the number of people hospitalized with COVID-19 and “reduce healthcare costs here and around the world.”
https://montrealgazette.com/news/local-news/covid-19-montreal-heart-institute-concludes-colchicine-is-effective
(Snide comment withheld)
We must show good form as the bow of the Titanic is now visibly under water.
I understand your distaste for those “trashy rednecks” on the other side of the country who are going to see 20 – 30% unemployment by April of this year. It’s bad. Without a market for our energy all of Canada is going to suffer for this. In European Canada you guys all laugh at us – now there are no “have provinces” left. I’m beginning to believe Trudeau wants this.
(Snide comment withheld)
Toronto is where dreams are broken, there’s nothing you can do. I’m having the party of my life in Colombia!
If you are adding zeroes to the debt clock, you are adding zeroes to the currency.
Hence the need for metals assuming you have a 30 year investment horizon.
10 trillion by 2050?
Or of course you could buy the 30 year government bond.
Past results may not be indicative of the future.
I expect Mr. Dollar = Dollar = Dollar to chime in soon.
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On the upcoming whenever election: I suppose I should be wishing Jagmeet the best of luck. If he siphoned enough votes from the Liberals they might be looking at a second minority which would be the best outcome IMHO, other than a Conservative majority… fat chance.
But alas, I fear the Liberals will take an even bigger bite of the NDP’s lunch than last time, pushing T2 back into a majority. Meanwhile, the Conservatives will probably get another useless majority of the popular vote. So it goes.
In my constituency there’s little reason to get excited about voting. It’s axiomatic that as long as Hedy Fry runs, she will be the liberal member from Vancouver Center. It’s one of the few things you can count on in this world.
Now I’m madder than a hornet.
Trudeau has to clean with the good Canadian people about Pfizer.
Moments ago, again from RAI Italia’s state broadcaster (Arcuri is Italia’s ‘VAX Czar’ and apparently a good Czar at that):
“Vaccines. Arcuri: 15 million doses by March, first AstraZeneca delivery on February 15”
That would be FIFTEEN MILLION DOSES FROM PFIZER by the end of March to Italia. FIFTEEN MILLION. Prorate by population and Canada should get:
9.5M
by end of March.
Notwithstanding, per my prior Comment, Italia at full delivery of Pfizer next week. Canada decidedly NOT.
https://www.rainews.it/dl/rainews/articoli/vaccini-arcuri-astrazeneca-milioni-dosi-marzo-consegna-4ab18ffc-e2e4-4371-b9de-21dc5e1e5e3d.html
Something is wrong and does not square with what Trudeau is promising, no, NOT AT ALL.
—————————-
Livid is how I feel right now esp. towards Pfizer. Canada being tossed aside by Pfizer to keep the EU happy.
And, where the HELL is our Cdn MSM about all this?
MIA as usual, save CTV as of late?
“Optimism the economy will quickly accelerate once the pace of vaccinations picks up.”
So… big inflation after WW1, WW2, 1970s. After a big crisis. Interests rates are low in recessionary/depression times.
Prices steadily rising in many categories….so inflation at the cash registered but not the official inflation rate.
No one seems to care because ‘we’ are asset rich and everybody is doing it. So it will continue forever. Two side swiping variables that seemingly interact with each other are consumer discretionary spending and the job rate – the cascading effect.
I am watching the divorce rate and consumer spending as well as helocs to finance the new toys…and COVID as the justification. Fake it till yah break it!
If the libs want their money back through taxes, why not tax real estate. They promoted the run up , why not harvest the result ?
Everybody is short-sighted these days; whether it is some house buyer getting a place in the sticks because they think they’ll be WFHing forever, or the government borrowing and spending their brains out, or CBs printing money like there is no tomorrow, no one is thinking long term consequences anymore.
Anyone else getting a strong Barney Stinson vibe off Ebenezer? Particularly when he dressed up as an “overpaid, plagiarizing ether addict with two thumbs”
https://i.ytimg.com/vi/hSnyQWiIUdI/maxresdefault.jpg
Or you could hold on to your investments until another government gets in and puts the capital gains back to 50%.
Apparently Janet Yellen wants to tax unrealized capital gains. There’s an idea for Chrystia.
A distinguished family background, Mr. T.
Bet the wolf/bear got a real s**t-kicking before it dined.
Taxes will be 7% higher than the UK?
Wow…Canadians will need to ask Paul McCartney and Sir Elton John where they bury their coins. Isle of Mann?
Been out of the country for over a decade now, and every time I visit the GTA I notice that the standard of living has dropped since I grew up there (awful congestion and traffic, pollution, bad roads, more complaints about long waits to see a doctor/for surgery, insane housing prices, friends complaining how expensive everything is…). I have two little kids and would love to move back to be near family but am seriously troubled about the country and province’s debt situation and likely further decline in quality of life.
I’d love to read a post or other articles shedding light on ways that Canada might fare better than other OECD countries in the coming decades (if true!), or how some measures of quality of life might improve. Or what we might collectively do to improve the situation for ourselves and the next generation.
I make close to minimum wage with no benefits at all, no dental, no health, I work in a hospital (at less wage than the hospital janitors by 33%), I have received no covid benefit even when I was cleaning a covid ward.
But have been investing as much as I possibly can, living like a monk for years now.
If capital gains rate goes up, I will finally be destroyed as all my careful sacrifice and investing will virtually be for naught.
Nothing really matters anymore.
Hey Garth,
for the upcoming taxes, I think you explained things that can be done to mitigate the upcoming taxes (eg. when advantageous to take your capital gains now (50% rate) if we think CF will announce this going up to 75% on budget day…
Perhaps you can remind us again of all the other things we can do to prepare for the onslaught of taxation coming… (eg. buy that Motorhome, or luxury item now…)
CDC now mandates negative COVID test results for all inbound international travellers. Being vaccinated doesn’t count:
http://www.wsj.com/articles/the-new-covid-19-testing-rules-for-travel-to-the-u-s-what-they-mean-for-you-11610566341?st=01cgi76eq9jbdju&twopenpaywall
United Airlines plans to mandate vaxing for employees, while Delta, AA and SW are only encouraging it, at this point:
http://www.airactu.info/protection-covid-united-airlines-envisage-de-rendre-obligatoire-la-vaccination-des-employes
BTW, the COVID risk onboard is much lower than in many public places. Our company’s ECS engineers confirmed that HEPA filters do capture the virus. They ask that we maximize filtering efficiency by recirculating cabin air and selecting conditioning pack airflow to High, as per EASA & ICAO guidelines.
Anecdotally, I’ve remained uninfected despite spending several hours with COVID-positive pilots (who became symptomatic). Likely helping was continual mask-wearing, vent airflow to my face, as well as trying to boost self-immunity with supplements and healthy choices. Still, I remain pessimistic about air travel for the next several months.
As long as Chrystia doesn’t tax my principle residence we are good. Let er rip!
Ppc peoples party. Max bernier . 15% flat tax . Zero capital gains. Deregulation . No supply management . All good stuff . Wish had true conservatism
Zero electibility. Do not throw your vote away. – Garth
I’m really hoping that Justin will “understand” my position on not paying taxes as well as he “understands” Biden’s killing of the Keystone XL.
Anyone want to bet?
#45 Anna
I agree on the Cdn. standard of living going down.
No coincidence that they are buying smaller homes etc. as Doug Rowat pointed out yesterday. It’s what they can afford. And he is correct, retire or keep spending recklessly?
THAT is the question.
Cdns will be worse off than the current cohort when they retire in 10, 20, 30 years time.
Cdns “snorfling” debt as My Liege likes to say and at an alarming rate.
Why?
“Appearances” as Rowat pointed out yesterday or as Billy Crystal as F. Lamas would say “Darling, it is better to look good than to feel good.”
And Cdns when the Pandemic is over, or end of Feb, will get a huge surprise when the bill comes from Gov Canada for all of its largesse:
Higher Taxes.
But you know, Trudeau will get re-elected by a financially illiterate populace that really does think the BoC printing press can print $∞ to fund their lifestyles that they believe they so richly deserve.
Cdn history, as Garth pointed out today, will show them that is misguided to say the least.
I agree with your singular observation and it is writ large in Cdn Household and Gov debt. LARGE.
————————
PS Garth:
Loved the “Vlad the Impaler” witticism vis-à-vis Freeland’s budget to come that will skewer many of this Blog’s readers (fleece, shake down, render threadbare, etc.)…and:
non sequitur
A personal favorite, good to read you like it as well in a pinch without having to go into detail and thanks to the laconic Romans.
Old money. Things making sense now. That minimum wage best stay at sustenance levels so the real producers can make more money. Got it. Thanks
We’ll see how the Cons poll leading up to the next election. I might have to vote strategically for the NDP if the Libs are running away with it.
I guess we’re close to rock bottom.
Ppc . No cap gain . Big time
Why do people like this continue to get hired ?
#24 Russ on 01.24.21 at 2:08 pm
The Federal Government is severely broken. Here is just one example (in the news link below).
How does society and taxpayers keep these leeches out of our pockets?
Do you believe the hiring committee could not find at least one person who is more qualified and reliable?
At least the City of Nanaimo had the sense to punt her.
https://nanaimonewsnow.com/2021/01/23/fired-nanaimo-cao-returns-in-senior-role-overseeing-trans-mountain-pipeline-expansion/
The comments today are very bleak and number 46 cheese I feel very sorry about your situation.
For what it’s worth, hat debt clock made an imprint on many minds, mine included. Problem now is this brand of fiscal conservatism has been married to the wrong brand of social conservatism and people don’t want to hear it.
It still shocks me how many a commenter on this fine blog are staunch self proclaimed capitalists but then complain that Pfizer prioritizes the countries that invested in it. Well …doh , that is what capitalism is;reward the shareholders/ investors.
We suffer because of the naivety of our leaders who sunk public money in every biotech company out there instead of the leaders , including a joint cooperation with a Chinese company who as soon as the light was seen picked up and retreated to China presumably with the “joint” IP because national security in China actually means that, prioritize your own citizens over the rest of the world.
Just ranting here, sometimes the naivety and correct ideology gets to me; wish that we would elect leaders who will put Canada and Canadians first.
Just imagine how quickly we could bring that debt down if we started taxing 50% of capital gains on housing or simply slap HST onto real estate purchases.
The easiest solution and the hardest for rich people to wiggle out of paying
It won’t happen in my lifetime, but no wonder we have a housing bubble when everyone expects a tax-free windfall upon selling.
#25 CJB on 01.24.21 at 2:16 pm
Easy fix, tax all Canadian real estate 1% a year on FMV until debt is paid off. Over 5 trillion in residential real estate so 1% times 5 trillion is I think $50 billion…a lot of zeros. Or even 2% would get debt paid off a lot sooner.
$$$$$$$$$$$$$$$$$$
Chrystia? Are you listening?
The Brits like tracing their ancestry.
Unless it traces them to Henry VIII.
CEF, though, would think it’s an honor.
I, personally, don’t care. Don’t even know my father.
Scared, I might find out that I’m related to a guy named Adolf Schickelgruber.
#46 Cheese on 01.24.21 at 3:47 pm
I make close to minimum wage with no benefits at all, no dental, no health, I work in a hospital (at less wage than the hospital janitors by 33%), I have received no covid benefit even when I was cleaning a covid ward.
But have been investing as much as I possibly can, living like a monk for years now.
If capital gains rate goes up, I will finally be destroyed as all my careful sacrifice and investing will virtually be for naught.
————–
Probably not worth worrying about too much, since as another poster wrote- future govts may very well change it back. Who knows?
There may also be windfalls in your future. Life is long and contains many unexpected events.
Not to worry, Garth. Mr. Justin Trudeau has this entire thing under control. He is a wizard when it comes to monetary issues. In fact, I heard that he invented the loonie (snide comment withheld :)).
You go get ’em Mr. Trudeau.
BB
Cheese .
Get into the trades , sheet metal , electrical , air con ,
plumbing .
Contact the union of each trade, see what you need to do .
All you need is a grade 12 diploma.
I think we’re screwed. Canada will lag far behind the States getting vaccinated. I really think as far as vaccines are concerned we have been sold a bill of goods. It is going to dig us further in the hole economically and with some provincial governments like Legault in Quebec spreading the two doses as far as 90 days apart basically rendering the first one useless will come back to haunt us. Our standard of living will drop immensely the next few years.
JT gives away your money, not his….and doesn’t see any problem with that. Nor do those who voted for him. He is, after all, a real stand-up guy.
Cheese,
Which hospital do you work in?
Does not sound right to me.
With Trump gone, I’m grateful for this blog to continue to provide me with good advice and entertainment for free.
Specially, on a snowy day like today.
Thank you all!
With a printing press working overtime, there is no need to worry about increased taxes, because the money for all expenses can come from the printing press. The people who control taxes can control the the printing press. Why would they raise taxes on themselves?
Most rich business people are and can pass on the costs/taxes down the line to their customers.
My great-grandfather, Ebenezer Vining Bodwell, seems like a cool dude.
_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Ebenezer cool-factor calculation (by the Millenial standard):
Man bun: check
Beard and sideburns : check + check
Tats: ????
How many and where were they ?
;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-) ;-)
#18 Dolce Vita – Canada will need other types of vaccines other than…
______________________________________
… on its way, soon? Perhaps not vaccines, but just maybe this reversal will help a bit? Note the emphasis on “By no longer recommending against ivermectin use,” and “Ivermectin is one of the world’s safest, cheapest and most widely available drugs,”
Miraculous’ ivermectin approved for use in the US for the treatment of COVID-19
BETHESDA, Maryland, January 19, 2021 (LifeSiteNews) —Following the diligent efforts of physicians associated with a group called Front Line Covid-19 Critical Care Alliance (FLCCC), the National Institutes of Health (NIH) has upgraded their recommendation for the “miraculous” drug ivermectin, making it an option for use in treating COVID-19 within the United States. […]
https://www.lifesitenews.com/news/miraculous-ivermectin-approved-for-use-in-the-us-for-the-treatment-of-covid-19
… stand by for a reversal on Hydroxychloroquine, next!
F.S. – Calgary, AB.
#43 S.Bby on 01.24.21 at 3:41 pm
Apparently Janet Yellen wants to tax unrealized capital gains. There’s an idea for Chrystia.
—————
It’s pretty much guaranteed that Canada and the USA will ride a Tandem Bike for the next 4 years.
A lot of damage caused by Trump needs to be repaired.
I now see where Garth got his photogenic smile from. =P
So the federal debt is over a trillion. Nobody cares because everyone realizes that it will never be paid back. Imagine having a credit card you never have to pay off. Party on Justin !!
DELETED If you play the race card again you will be history. – Garth
#54 IHCTD9 on 01.24.21 at 4:07 pm
We’ll see how the Cons poll leading up to the next election. I might have to vote strategically for the NDP if the Libs are running away with it.
I guess we’re close to rock bottom.
————-
Sorry, you feel that way.
My family and many of our aquaintances are doing just fine.
You should move to BC.
The Libs moto :Give me your poor and needy . ( And if you are not poor and needy , we will tax you in a way until you are )
#46 Cheese
Just hold do not sell, therefore no capital gains tax, fill up the TFSA first and then go non registered with leftovers. Blackberry nice to see some good gains, interesting to watch GameStop tomorrow.
Thanks Garth YES well put. I own Commercial RE. A close friend that’s VERY well off that I had a visit with yesterday were discussing this….Yup we provide a lot of taxes system and jobs. We are strategizing where to move/hide protect stuff. Fricken SAD..
We work mega hr’s managing cash flow debt ect…pretty much the opposite how the feds do things. These IDIOTs accountable for NOTHING don’t realize how hard we work to get we are. We are not paying for their mistakes. This is WAR. We have lost all respect for government. Glad your not one of them…
A)Tax every dollar earned from any source, above a basic personal exemption, exactly the same.
B)Implement a transaction tax on ALL transactions as well. (Refundable for those below the basic personal exemption level)
Be open to what we learn. Perhaps B) might be able to replace A), or some modified version of one or both could be adopted.
People who believe that “some” dollars earned should be treated more nicely than others are soon to be extinct historical artifacts, just like those who have believed that some groups should have higher social and economic ranking than others, some historically even thinking this is somehow God’s will, not a systemic human creation.
If you are one of the wealthier, privileged cohorts, are you really prepared to stand up and say that your earnings are more deserving of exemption than those of everyone else?
We don’t need more of our ridiculous system of Communism for the Wealthy.
A Dollar is a Dollar is a Dollar.
Simple, Clear, and Fair.
#68 Ponzius Pilatus on 01.24.21 at 4:54 pm
Cheese,
Which hospital do you work in?
Does not sound right to me.
The feeling I get is that while both Cheese and Sail Away are probably where they are, both write with significant indulgent amplification to satisfy their need for self-aggrandizement.
Actually Trudeau is a very smart, he discovered that DEBT is like air, water, when you breathe you get the air, when you turn on the tap, you will have the water. this is the most fabulous thing in the world. He should be awarded Nobel prize in economics.
rich and poor use the same amount of air/waterloo in their life. rich has more money, so what, they can get richer by buying more stocks which has unlimited supply without causing inflation. poor don’t have that kind of money, government can print the money to them so that they can live a happy life.
going forward, government continue printing the money, rich continue buying the stocks and having a balanced portfolio, poor continue getting the money from the government… so everyone is happy, what’s the problem? why pay off debt?
it’s a new world now, so living a happy life, nothing to loose
another thought, if the government can print the money, why they bother to raise the tax, tax should be zero in my mind.
#69 Ponzius Pilatus on 01.24.21 at 5:00 pm
With Trump gone, I’m grateful for this blog to continue to provide me with good advice and entertainment for free.
Specially, on a snowy day like today.
Thank you all!
++++++++++++++++++++++++++
BWAHAHAHAHAHAH!
Reminds me of a story…in Nottingham there was a heroic outlaw named Robin Hood who was known to rob the rich to give to the poor…except in this case, there wasn’t enough rich to be able to rob from…
A great-grandad named Ebenezer. How cool is that? I had a great aunt named Tinkerbell. She became a nun. Seriously.
#78 ‘R’ hit the nail on the head! I guess that is one way to stay ‘in power’ – keep the general population dependent instead of independent. Can’t have that!
Impressive.
The greatest era of economic expansion and improvement of middle class life happened in America, under a Republican president named Eisenhower.
He understood what was necessary for a just society. Including a 91% tax on the wealthiest.
https://www.theatlantic.com/notes/2019/01/tax-rates-davos/581257/
Eisenhower. A staunch Republican. A heroic leader of WWII. A Conservative at heart.
He recognized after the huge shared sacrifices of WWII that we are all in this together, and that people should not have to accept anything less.
The financial system is not “our society”, it is merely a highly imperfect product of our society, subject to enormous self-dealing and disproportionate influence by the powerful if not well-regulated.
Under Eishenhower’s 91% marginal tax rate on the wealthiest, America roared ahead, like never before. Canada followed. A boom we can all only dream about today.
Since the 1980s, it has all gone the other way, under modern Republicans and their allies in Canada who reject the idea of economic equality in a democracy.
A great way back to the right direction, the Eisenhower way, is to simply treat all dollars equally.
We will enjoy a wonderful boom again if we can only find the courage to embrace this as basic common sense.
Hey Garth, would progressive inclusion rates be feasible? Say 50% on the first $100k, 67% on the next $100k, 75% on gains above that?
Hey Big Guy when you say “Chrystia Freeland, who has no financial training or experience” that is not true.She has served at the Financial Times in London as a deputy editor, and then as an editor for its weekend edition, FT.com, and UK news. Freeland also served as Moscow bureau chief and Eastern Europe correspondent for the Financial Times.
From 1999 to 2001 Freeland served as the deputy editor of The Globe and Mail. Prior to that she was the global editor-at-large of Reuters news since March 1, 2010, having formerly been the United States managing editor at the Financial Times, based in New York City.
So by that metric she has way more experience than you had when you were Minister of National Revenue. I get that you don’t like her but let’s try to be accurate.
She has no financial training. Fact. Being a journalist is not being a business owner, operator or financial principal. Fact. Not that it matters, but I had owned, founded or operated seven businesses when I assumed office (and a lesser role than hers). – Garth
Zero electibility. Do not throw your vote away. – Garth
_____________________________________________
Staying at home on election day is throwing your vote away. There is nothing wrong with voting for a party that aligns to your political line of thinking. If people followed your line of logic, Tommy Douglas and the NDP would be nothing more than a footnote in history books.
If the PPC eventually chooses to not be the party of Bernier, they will pick up support because they have some very sound and solid policies. I don’t think he’s the problem but he can’t be the party.
Every vote for Bernier is a ballot for Trudeau since you are splitting the conservative base and supporting someone who will never gain office. Surely you can figure that out. – Garth
#9 crossbordershopper on 01.24.21 at 1:07 pm
A classic case of a poor nation is one with expensive real estate and low wages. Canada is classic
——————-
Average Canadians in steep decline, observed this for years, took off in the 1990’s.
• Competing against more labour supply, via Globalization & Immigration
• Less global demand for “workers” – via Technology
• The “Red Queen” problem of wages destroyed by Inflation
• Powerful entrenched elites control policy direction
Inflation Kills Middle Class
https://www.cbc.ca/news/business/current-inflation-is-killing-off-the-canadian-middle-class-don-pittis-1.2711415
https://www.fastcompany.com/90550015/we-were-shocked-rand-study-uncovers-massive-income-shift-to-the-top-1
It explains UBI push, it explains mental health problem increase. It likely explains the victim mentality of the WOKE\SJW movement.
I have been saying it for years the masses are getting creamed, if people’s work is low paid and not fulfilling and they have little hope of upward mobility they become existentially unhappy. It is why people go radically left or right, vote for the NDP, The Donald, the Nazis, and Hugo Chavez.
#77 Ponzius Pilatus on 01.24.21 at 5:20 pm
#54 IHCTD9 on 01.24.21 at 4:07 pm
We’ll see how the Cons poll leading up to the next election. I might have to vote strategically for the NDP if the Libs are running away with it.
I guess we’re close to rock bottom.
————-
Sorry, you feel that way.
My family and many of our aquaintances are doing just fine.
You should move to BC.
—— –
I’m doing fine too – in the present. It’s the future of Canadians’ prosperity that I worry about with Trudeau at the helm.
As for BC, no thanks. Insane ICBC insurance rates, all kinds of politicians being hauled off to jail, and million dollar dump shacks tell me all I need to know about how that place is run.
Garth, sales taxes are not more democratic, they disproportionately impact lower income folks, who spend everything they get just to live. A billionaire spends a lot of money, but far less by percentage of their “income” than the typical Canadian. Hence why billionaires don’t fuss too much about sales taxes.
The GST credit is there to take care of that issue. Taxing consumption is inherently more intelligent than sucking off income – which kills incentive and requires a huge infrastructure to collect. People should be encouraged, not punished, for success. – Garth
#89 A Dollar is a Dollar is a Dollar on 01.24.21 at 6:03 pm.
A great way back to the right direction, the Eisenhower way, is to simply treat all dollars equally.
We will enjoy a wonderful boom again if we can only find the courage to embrace this as basic common sense.
——— ——
The USA had suffered together, and there was a strong sense of national unity and patriotism after the war.
This sense is gone in the West today. Try that 91% tax now, and the rich would simply leave – just like they left France a few years back.
“None of this I knew thirty years ago when I lost my mind, ran for the leadership of the federal Progressive Conservative Party, and hauled the Van BOT’s giant debt clock to Ottawa for the PC convention. ”
Garth politicians do not like being reminded of their sins.
Wudrick is a Con hack.
CTF is funded by dark sources that they refuse to divulge because they are very likely backed by foreign causes that include the Koch Bros and their ilk.
As for investment income: pay your fair share. Income is income. Unfortunately senior voters wield a disproportionate clout in policy direction.
Wealth inequality has now reached levels not seen since the early 1900’s robber baron period.
Tax\Budget ignorance
If they raise capital gains rate to 75% in the upcoming budget does it apply for the 2021 tax year or is it for 2022.
Is it too late to do a few adjustments?
#28 Victoria resident on 01.24.21 at 2:28 pm
So Justin is spending more than any other country during this pandemic. Well let’s look at the number of dead in Canada compared to other countries. Canada has 18,000 deaths from the virus and the USA given it has nearly 10 times our population should have 180,000 deaths if they were doing as well as Canada.
But wait, they have more than double that number of deaths. They have over 410,000 people dead.
Question for you Garth: What is the cost of saving a quarter of a million Canadians?
Non sequitur. – Garth
—————————————————————–
I agree with Garth. That makes a simplistic political tagline. However, it is more complicated than that. What you’d really want to know is the cost per quality-life-years. The death of an 87 year old bed-bound person who doesn’t know what year it is or recognize their loved ones is not the same as the death of a 20 year old who becomes depressed and commits suicide. The 20 year old has had much more taken away. Further, much of it is really hard to quantify and delayed. For example, someone becomes unemployed or loses their business due to lockdowns, takes up drinking, and dies of that 20 years from now. Death from virus is pretty easy to understand – it is a close link both in cause and time-frame. It is simple math. Well exponential growth really. We will not really know the impacts of our lockdowns, fiscal supports and everything else until after the fact. Everyone can then be an arm-chair athlete and tell about how they would have done things differently. In the end, for those who lose someone – more should have been done. That could mean anything depending on the cause of death. I honestly feel a bit bad for our politicians trying to navigate a path of least harm from the virus balanced against least harm from social isolation and economic ruin. I think that they have been trying. I wouldn’t be smug on either side of the fence. Time will tell.
-LD
I think the capital gains inclusion rate rising is a slam dunk. However, I also think that realizing capital gains now to avoid the tax increase is more complicated. I examine this in detail in this post and also link to a capital gains strategy calculator. I think this is time sensitive as the next Federal budget looms big and Chrystia the Impaler is sharpening her stakes.
https://www.looniedoctor.ca/2021/01/17/capital-gains-tax-planning/
For those with a corporation, there may be a stronger case to harvest some gains now.
https://www.looniedoctor.ca/2020/09/19/capital-gains-harvest-corporation/
Hope it is helpful.
-LD
Lighten up here Big Guy. You are the guy who is giving great financial advice to thousands of Canadians. Based on your unique life experiences. It is disingenuous to criticize Freeland for doing the same thing. Stick to the facts. If you are right there should be lots of them.
Where did I criticize her? – Garth
She has no financial training. Fact. Being a journalist is not being a business owner, operator or financial principal. Fact.
…………………………….
It is like asking your auto mechanic to perform your root canal. Or allowing a trust fund baby to run your country. Fact.
Trudeau was an MP and legislator for most of a decade prior to winning the Liberal leadership contest. That’s called ‘experience’. – Garth
Later he ran Ontario’s Welland Canal and afterwards took over the books of the Canadian Pacific Railroad.
That eventually led him to Vancouver in 1887 (a year after the city was incorporated), where he also became president of the Vancouver Board of Trade. He died two years later in the far north. A bear? Wolves?
——————————-
Internet tells me: He was in poor health and died in his sleep while at Morley NWT – now Alberta while out on R&R trip with a CPR superintendent – Morley Alberta looks to be a First Nations settlement that the CPR ran thru.
——————————-
I’m going with the bear. Hand-to-snout combat. – Garth
Both flat taxes and sales taxes make the wealth divide greater. The GST credit does not take care of that issue.
Rich people hoard. Poor people spend. Consumption taxes are unfair.
It is truly Canadian to pay your fair share. If you are lucky enough to be in the top 10% of earners you should pay more than most other people.
If you want to not pay your fair share move to the US. They like having class warfare with a huge wealth gap.
The top 20% already foot 40% of the tax bill. Highest income-earners hand over 54% of their income. Not enough for you? – Garth
#82 Ustabe on 01.24.21 at 5:32 pm
#68 Ponzius Pilatus on 01.24.21 at 4:54 pm
Cheese,
Which hospital do you work in?
Does not sound right to me.
————–
The feeling I get is that while both Cheese and Sail Away are probably where they are, both write with significant indulgent amplification to satisfy their need for self-aggrandizement.
————–
Indeed. Don’t we all?
Others reminisce about past good deeds and work on their judgy internet psychology. Pick your poison.
I think this will play out in the same way we saw before with Morneau at the tiller. Nailing small business owners (those who survived the CV lockdowns) and incorporated professionals like Doctors, Lawyers, IT workers and anyone in the gig economy. Maybe another new tax for the 200k+ employees.
Real bad idea, but that is exactly why it will appeal to our current crop of turnips in Ottawa. Good ideas just can’t germinate up there right now.
I make much more money than I need and it’s too easy to artificially make money on stocks etc, so raise those taxes!
The GST credit is there to take care of that issue. Taxing consumption is inherently more intelligent than sucking off income – which kills incentive and requires a huge infrastructure to collect. People should be encouraged, not punished, for success. – Garth
____________________________________________________________
Some common ground here. Raise the GST to 25% (or whatever) and lower income taxes by an amount equvalent (I have no idea what the number would be). I’m sure they can figure out the balance between lower income taxes and higher GST.
Easier to collect. More fair. I didn’t like it when it first came in. But if you really think about it, Consumption tax is by far the better way to go, rather than taxing savings and investment.
Then I can decide what I want to do with my income. I want to save it, invest, or do I want to spend it. Put extra money down on my mortgage or buy more toys. Spend on a $5000 used car or $50,000 new SUV?
My money, more of it, my choice.
It should be worth mentioning that no socialist experiment to date has produced a worker’s paradise. It has been one nightmare after another.
(No, Norway is not a socialist government. But they do have a lot of money due to all the oil they sell to Quebec and Ontario, among others.)
Based on observation, the stated goal of socialism to lift everyone at the bottom up is never achieved. Instead all they manage to do is wipe out the middle class and increase the misery at the bottom. The oligarchs are never affected, but any potential competition from newcomers is eliminated.
I’m beginning to believe this is intentional. The middle class is harder to bribe with government handouts than that portion of the population that has food insecurity. So what should any smart dictator do? Eliminate the middle class and put everyone on UBI or food stamps.
For example, the proposed capital gains tax on primary residences. Who is this going to be hit the hardest? Grandma, because she was hoping to use that money to pay for her old age home. Will it impact billionaires? Not so much because even though their houses are quite lavish, the total percent of their assets held in said house (or houses) is actually quite trivial. Most of the money is going to be extracted from you and your friends and neighbors. The folks that own most of the housing stock. The vast suburbia surrounding our cities.
And all of this over a manufactured crisis. If you eliminate the 1% and those who for whatever reason have no upward mobility, and then adjust for age, the wealth gap is largely a false construction. Yes, there are large differences even among age cohorts, but people tend to accumulate wealth as they age and pay off their house and hopefully save for retirement. Comparing 65 year old’s to 25 year old’s and lamenting the “wealth gap” is extremely disingenuous. 65 year old’s should only be compared to other 65 year old’s. When it is done this way, there is still a large “wealth gap” but it is not nearly the crisis they are making it out to be. It reflects life long earnings more so than anything. A guy who made $100,000 a year is obviously going to finish ahead of a guy who made $50,000 a year, but if the idea is to transfer $25,000 from guy one to guy two why would anybody work hard? Or get an education? Or take personal risks?
The concept of a track and field meet where everyone gets a gold medal means nobody has to train or even run. Why break a sweat? Just walk.
———————————-
All that said, Garth is probably right again, taxes are going up. But will that bring in any extra revenue? I doubt it. We are at peak tax. There is no more change under the couch cushions. Every dollar extracted from one area will mean one less dollar in another. There is only so much money out there and wealth is not money, nor can it be easily converted to money without a buyer, who also likely has less money due to higher taxes.
——————————–
As for the capital gains inclusion rate, well, there can be much discussion about that too. One of the reasons it is not 100% is to encourage investment and savings. The other reason is that a large event, like the liquidation of your portfolio upon death, will likely cause a huge spike in your annual income pushing you into a much higher tax bracket for that one year as compared to what your tax bracket would be if the gain was averaged over the time you held the assets. This applies to the living too. Should you decide to sell your business and retire, that single year may not reflect at all on what your average income has been.
Things are the way they are for a reason. Tinkering with things is what politicians do and so tinker they will, but what Trudeau is proposing is a major edit of the genetic code. What monster will result, nobody knows. Nor can they know. But we can look at what’s come out of some of the other experiments. Misery lies ahead.
#73 Ponzius Pilatus on 01.24.21 at 5:11 pm
#43 S.Bby on 01.24.21 at 3:41 pm
Apparently Janet Yellen wants to tax unrealized capital gains. There’s an idea for Chrystia.
————
It’s pretty much guaranteed that Canada and the USA will ride a Tandem Bike for the next 4 years.
A lot of damage caused by Trump needs to be repaired.
————
What is this damage you speak of?
Best mutton chops ever !
#10 Dolce Vita on 01.24.21 at 1:09 pm
“On the clock, buck up and buy a new one Taxpayer Federation or add another light box for the extra digit.
For drama, whitish duct tape on the left for the extra digit, write on that, if threadbare is the objective (and it ought to be).”
——————————-
Probably more cost effective to add 3 digits. That way it will last a few more years. These things are exponential, not linear.
I’m going with the bear. Hand-to-snout combat. – Garth
Just like this I bet:
https://www.youtube.com/watch?v=GOlVRHsVzE4
. ..I have no business being on this site…came here to learn financial stuff from a guy who knows the biz…now I cannot believe the number of greedy self involved and if the recent survey by Mr.Turner suggests. ..very effing wealthy who want to be more wealthy cause? Why?
I admit I’m over 65 now and been fortunate but the greed of the super wealthy blows my mind …why would you want to be that?
She has no financial training. Fact. Being a journalist is not being a business owner, operator or financial principal. Fact.
…………………………….
It is like asking your auto mechanic to perform your root canal. Or allowing a trust fund baby to run your country. Fact.
Trudeau was an MP and legislator for most of a decade prior to winning the Liberal leadership contest. That’s called ‘experience’. – Garth
…………………………………
Wasn’t much of an experience. Look at the job he’s done.
Its so sad the financially responsible people are punished in Canada.
#25 CJB on 01.24.21 at 2:16 pm
Easy fix, tax all Canadian real estate 1% a year on FMV until debt is paid off. Over 5 trillion in residential real estate so 1% times 5 trillion is I think $50 billion…a lot of zeros. Or even 2% would get debt paid off a lot sooner.
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All real estate is already taxed at about 2%. (Municipal taxes, they need money too.) And for most people it is a major bill, they have to pay it in installments and cannot get the 10% deduction for paying it in whole before the deadline.
So now you want to add another 2%? Well, there goes the car dealerships. We’ll all be taking the bus. But of course there aren’t enough buses when you need them already. WFH will be the only way out.
Real Estate is not money. The value of a property is nothing more than an approximation of what you might sell it for given what your neighbor sold his for. It isn’t cash in your pocket. Any additional property taxes are, in effect, additional income taxes that do not depend on income.
@#176 Greta the Gem
“Some (many) retired folks these days…….. spend their golden years at the expense of the planet and its living things…carbon emissions thru travel, ever indulgent lifestyles and activities, gluttony that sees no end, looking the other way when there are drug addicts and homeless people all over V.Island. Baby boomer exploitation of the planet ad nauseam…”
++++
Spare me.
The retired person that spent 40-45 years getting up and going to work 5 days a week , year in and year out……. is supposed to what?
Spend the next 20 years( IF they’re lucky) of well earned retirement volunteering at a soup kitchen to feed homeless drug addicts to appease YOUR sense of “fair play”?
Nah.
Their taxes paid for the endless Narcan injections that expensive paramedics use to save the drug addicts from themselves….so they can go out next “Welfare Wednesday” and do it all over again…..
Find someone else to blame or just look in the mirror.
I have a small condo and instead of buying a large single family home I decided to stay where I was and buy a small cottage with my savings. I use it myself and do not rent it out. My condo neighbour bought a large home with his savings, put in a pool and hot tub. Why should I have to pay capital gains tax if I sell the cottage for more than I paid yet my old condo neighbour can sell his home and make a tax free gain. My cottage was not an investment property it was a life style decision. It is not like investing in the stock market or purchasing a property to rent out in order to earn income. Not right.
Hey blog God your uncle looks like the kind of guy that every time he opened his wallet moths would fly out.
Really really nice hair cut too.
The top 20% already foot 40% of the tax bill. Highest income-earners hand over 54% of their income. Not enough for you? – Garth
The top 20% also hold 67% of the wealth. The top 1% hold 26%, apparently.
https://nupge.ca/content/canada%E2%80%99s-top-20-own-over-67-wealth
Successful people are successful. Get over it. – Garth
#28 Victoria resident on 01.24.21 at 2:28 pm
Question for you Garth: What is the cost of saving a quarter of a million Canadians?
————-
Simple. Assume they are all retired and the ‘saving’ gives them another 5 years at an average CPP of $10k/yr.
$2.5B/yr * 5 = $10B
How long will it take us to reach the quadrillion $ threshold?
#31 crowdedelevatorfartz on 01.24.21 at 2:48 pm
@#13 Sail Away
“…died two years later in the far north. A bear? Wolves?”
++++
Im thinking …taxes
—————————-
Thumbs up.
#60 soyyo on 01.24.21 at 4:34 pm
Just imagine how quickly we could bring that debt down if we started taxing 50% of capital gains on housing or simply slap HST onto real estate purchases.
The easiest solution and the hardest for rich people to wiggle out of paying
——————————–
The rich people do not own the majority of primary residences. You’ve been fooled again. It is your grandma that has lived in her house for 30 years that they are going after, not Warren Buffet.
Oh and there is HST on new houses.
Careful, mention raising taxes hinders investment and all the lefties will start screaming nonsense about how trickle down economics doesn’t work
#105 Rico on 01.24.21 at 6:56 pm
It is truly Canadian to pay your fair share. If you are lucky enough to be in the top 10% of earners you should pay more than most other people.
— ———
When Trudeau and Morneau were gearing up to make the lives of entrepreneurs, professionals and contractors more difficult, this comment section was filled with feedback from these same folks.
Get this, most of the time it wasn’t so much the money they would have had to pay, but the sense of being attacked that mattered to them. The MSM, social media, and now the government all going along with the narrative that business owners, professionals, and contractors were all rich, were exploiting loopholes, and ripping everyone off while laughing all the way to the bank. They weren’t paying their fair share at all, just getting rich off everyone else’s back. Make them pay.
Think about this: A disproportionate qty of these high income folks live and work in our big urban areas. Our big urban areas are loaded with immigrants and first gens, in a couple metros they are the majority. These folks comprise a healthy chunk of who Trudeau and Freeland are lining up in their sights.
How many of these folks have dual citizenship? How many of them could give a rip what you think is truly Canadian if their perception is Canadians are coming after them with torches and pitchforks?
Think about how easy it would be for them to just go. They’ve all done it at least once before, and likely under far tougher circumstances. Feeling like you are hated by your fellow Canucks is a far stronger motivator to pack it in than a few extra thousand in taxes…
“Every vote for Bernier is a ballot for Trudeau since you are splitting the conservative base and supporting someone who will never gain office. Surely you can figure that out. – Garth”
Everyone who doubts the sage of GF should study what happened in Alberta with the Wild Rose party. Notley snuck in because the true nature of Alberta politics split.
Sometimes when you work in the pig barn you have to hold your nose.
The same thing might be happening in the US right now. If the speculation is correct, and Trump plans to launch his own party, the democrat landslide will be complete. But none of this speculation comes from Trump’s own words.
RE: #46 Cheese on 01.24.21 at 3:47 pm
I make close to minimum wage with no benefits at all, no dental, no health, I work in a hospital (at less wage than the hospital janitors by 33%), I have received no covid benefit even when I was cleaning a covid ward.
But have been investing as much as I possibly can, living like a monk for years now.
If capital gains rate goes up, I will finally be destroyed as all my careful sacrifice and investing will virtually be for naught.
=======================================
So what you are saying is that your TFSA and RRSPs are both maxed out and you’ll be “taxed to death” in your unsheltered trading account?
Doesn’t pass the smell test. (you claim to be a near minimum wage earner)
@#128 IHCTD9
” A disproportionate qty of these high income folks live and work in our big urban areas. Our big urban areas are loaded with immigrants and first gens, in a couple metros they are the majority. These folks comprise a healthy chunk of who Trudeau and Freeland are lining up in their sights.”
++++
Yep.
Think those lineups at the local clinic are long now?
There are a lot of pissed off doctors out there and if Trudeau and Freeland think they can just keep adding taxes on top of taxes to pay for their social warrior crap…..think again.
I worked a ridiculous amount of extra time last year. Busiest year our company has had in 15 years.
My performance bonus will be taxed at the 54% tax rate.
My employees will also receive performance bonuses that will be exorbitantly taxed….and the govt wnts to raise taxes even higher because ” the rich deserve to pay?”
Tell you what.
This year.
I’m sitting back and working regular hours because after the govt takes its unfair pound of flesh…..what’s….. the….. point.
Think about that the next time you spend 8 hours waiting to see a doctor…..unlike Trudeau and Freeland , who snap their fingers and get served immediately.
Ebenezer had a real pair of sideburns. Ebenezer illustrates how darned exciting Canada’s history is and hope it doesn’t get erased to be palatable to the new and whitewashed version of the correct and acceptable Canada now being played. It really hits you to see how interesting and outrageously adventurous folks had it back there in the 19th century. Canada was the kind of place where you had to rock and roll on your feet without the consultancy to replace your Governor General.
#104 Simon on 01.24.21 at 6:54 pm
Later he ran Ontario’s Welland Canal and afterwards took over the books of the Canadian Pacific Railroad.
That eventually led him to Vancouver in 1887 (a year after the city was incorporated), where he also became president of the Vancouver Board of Trade. He died two years later in the far north. A bear? Wolves?
——————————-
Internet tells me: He was in poor health and died in his sleep while at Morley NWT – now Alberta while out on R&R trip with a CPR superintendent – Morley Alberta looks to be a First Nations settlement that the CPR ran thru.
——————————-
I’m going with the bear. Hand-to-snout combat. – Garth
——————————————————–
Morely’s about 1/2 between Calgary and Banff in the foothills…there are worse places to draw your last breath.
#114 Dogman01 on 01.24.21 at 7:19 pm
I’m going with the bear. Hand-to-snout combat. – Garth
Just like this I bet:
https://www.youtube.com/watch?v=GOlVRHsVzE4
— ———-
Probably more like this:
https://www.youtube.com/watch?v=KwEi-gBCdF0
Biden’s buy America stance is worrying Canada as per Bloomberg news.
Virus hotspots in China.
Trudeau’s Spring election?
Bank of America warning of pull back.
UK variant could be more deadly per Boris…plus the bill for Brexit may be steeper than originally thought.
Global growth put on hold due to vaccine roll out. Who woulda guessed.
#128 IHCTD9 on 01.24.21 at 7:51 pm
How many of these folks have dual citizenship? How many of them could give a rip what you think is truly Canadian if their perception is Canadians are coming after them with torches and pitchforks?
—————-
Well stated. In our case, we came here 15 years ago from the US and have kept all doors open- Plan B is always there.
In the last year, we’ve put final touches on the parachute: sold Vancouver property (kept our residence), setup US corporation and banking, bought US property, transferred $ out…
At this point, we’re perfectly happy to stay here and keep our tax residence here. If the climate becomes punitive, then our tax residence will change but not much else.
So simple. Go where your wealth is treated best. Hopefully, Canada will look at gigantic companies abandoning California due to proposed punitive taxation as a cautionary tale. They also said it wouldn’t happen- even commissioned studies on it.
Of course we could afford to stay and pay more. As could the California moguls. But nobody with options will accept being disrespected.
One year after Covid hit the world and we are now at 100,000,000 infected and 2.1 million dead.
And it aint over yet by a long shot.
Vaccines delivered by horse and wagon couldnt be any slower than the bureaucratic paper pushing that we are currently experiencing.
Canada wont lose the next war, they will be too busy still planning it long after its over.
I think they create a progressive real estate tax. This is where the majority of the wealth imbalance in Canada is. It’s not in liquid investment assets or even incomes so much anymore. The majority of Canadians with wealth have real estate. The government will tax it either through transactions or an annual new tax on the asset value.
No point in fighting it.
If you read the books written by Chrystia Freeland you would come to accept that the goal is a balanced economy rather than a balanced budget.
The World loves Canada.
Tax that love…..
Garth,
Which is a bigger waste of a vote: PPC or Maverick Party?
#89 A Dollar is a Dollar is a Dollar on 01.24.21 at 6:03 pm
As has been explained to you several times, there is no tax rate that hurts the rich which also is affordable for the poor, and there is no tax rate that the poor can afford which puts a dent in the rich.
So let the bottom 40% keep paying zero taxes while the top pays most of them.
Recent correspondence with a venture capitalist friend in San Fran who lives in the financial district overlooking the Embarcadero:
SA: Yo bro- what’s with all the major corps fleeing California? Heck, we’re even hearing about it in Canada!
Mostly as a cautionary tale, since Canada’s idealistic leaders are leaning toward a wealth tax.
VC: I’ve been thinking of getting out of CA too. The socialist state of CA is in full bloom and the politics are chasing people out. I think the people who are running the state now are happy to see us go.
A wealth tax will certainly create more snowbirds! Always good to hear from you. Keep in touch. B
#139 Quintilian on 01.24.21 at 8:33 pm
No point in fighting it.
If you read the books written by Chrystia Freeland you would come to accept that the goal is a balanced economy rather than a balanced budget.
—————–
I have not read any of her books.
But, would a balanced economy and society not lead to a balanced budget?
Garth, in response to your response to my comment….what happened in the 50’s when income taxes were sky high? Did we fail to work? Fail to innovate? I don’t think so, your argument is off on this one. I’m going to respectfully disagree and the stats, I believe, are in favour of my argument.
He died two years later in the far north. A bear? Wolves?
——————————-
Internet tells me: He was in poor health and died in his sleep while at Morley NWT – now Alberta while out on R&R trip with a CPR superintendent – Morley Alberta looks to be a First Nations settlement that the CPR ran thru.
——————————-
I’m going with the bear. Hand-to-snout combat. – Garth
——————————-
Teddy bear.
Ebenezer Vining Bodwell. Reading his creds, seems like he was a pretty accomplished guy.
Guessing D.T. turned up this stuff on enhanced libary access to Ancestry. Lots of people tapping into that interesting diversion these days as we wait out our days on cellblocks in various states of lockdown.
Speaking of dead men walking, all kinds of flotsam jetsam on various media today about whether or not to ban international travel. I caught a snippet or two as I ran the Dyson Ball around my humble living quarters.
That led to ’round up the usual suspects’ conversation on interprovincial transgressions. Subtle and less subtle murmurs about those ‘ horrid, disease ridden Albertans invading every crevice of British Columbia” such as the Columbia Valley, Revelstoke, Vancouver Island, and the BC Interior where Albertans own so much real estate we should just declare our right to territorial expansion, even if we have to use the word ‘Lebensraum’. Relax, Ponzi, I’m just kidding. Shout out to Don! Back me up on who lives in Parksville and Qualicum Beach.
The most interesting thing about this whole Covid debacle that got dropped on civilization like a giant anvil, is what the new reality will be when we finally emerge back into post Covid reality, who will benefit going forward, who is still standing, and most importantly who has been left behind and need our help.
It’s a little bit like the climate debate. Mitigation or adaptation. While the former has merits, it’s the adaptation that will save us in the end.
“Faithless is he that says farewell when the road darkens.”
― J.R.R. Tolkien, The Fellowship of the Ring
Try and remember that you morally bankrupt, ungrateful types east of the Rockies…….
The D.T. reference was Dorothy, not Donald Trump. Maybe you knew that, but didn’t want to ignite any new fires……
“A tax on principal residence profits could be an option for the government to accomplish two goals: raising taxes and lowering the pace of real estate price growth.
In the United States, the IRS allows a taxpayer to exclude up to $250,000 from their income when selling their main home. There is a $500,000 exemption for married taxpayers. For context, some detached homes in Vancouver and Toronto can appreciate by $250,000 in a single year.
If I had to bet on the most likely tax increase to be tabled next spring, I think this would be the one, but likely with a high exemption like the U.S. ”
https://www.moneysense.ca/save/taxes/potential-tax-changes-due-to-covid-19/
My origins go back to the CPR of southern B.C. in the 1890’s. I remember my parents talking about their parents time & as themselves youngsters of the CPR in western Canada. CPR was God. As comptroller to the CPR, Ebenezer would have been the right hand of God. He went up into the mountains to die.
Easy solution to the clock problem: just round to the nearest 1000, then drop the 3 rightmost zeros, and get many more years to go.
Seriously, the future governments will be very tempted to eliminate the accumulated debt mountain by permitting a major inflation run. That would cause numerous problems on its own, but there might be no other way.
All the new taxation exercises won’t bring in much new revenue, while austerity is a hard sell these days. In fact, the demand for more government programs is overwhelming. The bond market sponge keeps the excess liquidity absorbed, for now.
But the interest payments keep increasing, and are eating more and more of the tax take, even at today’s low rates. Eventually, investors will refuse to buy government bonds at low rates, demanding a risk premium. And then the flood gates will open.
Bless your great grandpa, Garth!
I bet he was old enough to have experienced the Make Believes doing something besides pathetically losing, and hope he got to share with you what that felt like.
George Armstrong has just died, and pretty soon there won’t be anyone alive who played or remembers anything about the last time that team won anything.
Unfortunately, the Bills are getting crushed by KC tonight, so Toronturds won’t have the useful distraction of NFL regional fun after tonight. This could lead to a serious mental health crisis across the GTA and an uptick in murders and violence across Toronthole. Stay away from the 6 if you can this week, everybody.
To everyone, talk to your great, great, great, great grandparents before it is too late. Only they can share with you what it used to be like before the GTA became the Land of Losers that it is today.
Did I write east of the Rockies? Shouldn’t be keeping one eye on this NFL game. West of the Rockies.
So it’s lot easier and cheaper for governments to tax salaries and investment returns, or to raise sales taxes – which are more democratic, since they hit consumption rather than income. But there’s little doubt, given the $1 trillion in debt and escalating deficits, that Chrystia’s first full budget – expected in a couple of months – will be taxing. As T2 said, the target is “extreme wealth inequality.
His target is re-election.
My target is to preserve the country. Which has to reduce the deficit.
Comments
Pierre Poilievre: The government is printing money which inflates assets which benefit the rich who have them. But the cost of living goes up which falls heaviest on the shoulders on the poor. So wealth is transferred from those who earn wages to those who earn capital gains through their assets. This will lead to a greater concentration of wealth.
There’s lots of Albertans, Ontarians and retirees from the Lower Mainland on Vancouver Island – large percentaged in the mid Island area. Used to be a lot of fly in fly out Oil industry workers also.
Qualicum Beach: Average age is above 70. The downtown barely grew but the subdivisions in the surrounding areas are full of residents yet it is very quiet. Not many seem to be wearing masks out in public places. Patience is wearing thin.
#151 Michael in-north-york on 01.24.21 at 9:49 pm
…All the new taxation exercises won’t bring in much new revenue…
— – ————
This is the other thing. Maybe they’ll get 70-80% of what’s projected. The next time maybe 65-70%. The further up they go, the smaller the take. At some point they’ll trigger something that really puts a hole in revenues, and they won’t be able to undo it.
Even if they got 100% of all new taxes levied, it’s still just a drop in the ocean. Trudeau has put Canada in a position where rates CAN’T go up. He’s also increased the potential for damage to the currency we all hold. He can’t control the forces that could literally destroy the country, he can only make us resilient. He’s done the exact opposite of that.
Railroad wouldn’t get built with today’s regulations. Not would any of the CPR hotels.
Even if you are in good standing, property insurance premiums will soon be priced beyond astronomical. The insurance industry cannot afford to handle the coming claims, and we cannot afford to support the insurance industry ourselves anymore. So we will have to carry the risk ourselves now.
I hate taxes but this (increase)will indeed happen!
I say tax consumption, not earnings. Booze, smokes etc
Implement capital gains tax on real estate immediately. This will flood supply into the market. Of course, you can put in a sliding scale rate I.e. 50% tax for flip in year 1 vs no tax after 10 years as example. This will bring new revenue and help with supply problem.
#146 He died two years later in the far north. A bear? Wolves?
——————————-
Internet tells me: He was in poor health and died in his sleep while at Morley NWT – now Alberta while out on R&R trip with a CPR superintendent – Morley Alberta looks to be a First Nations settlement that the CPR ran thru.
——————————-
I’m going with the bear. Hand-to-snout combat. – Garth
——————————-
Teddy bear.
——————————-
I found him! He’s in the middle of Vancouver.
https://www.findagrave.com/memorial/26304181/ebenezer-vining-bodwell
I don’t know why I just read all these blog posts, I NEVER do that. I am getting depressed……Just what exactly should we be investing our meager wealth in these days? still 60/40 G-Man? Even with the depressing Government Debt going forward into (possible) higher interest times.
I got my property tax assessment. It is the same as last year. Groan as apparently most declined 10%. I expect an increase of a least 5% while most stay even. And you think postal codes don’t matter – bureaucrats tax people who can pay despite the commonalty of services.
I do like spirit(SM). Sometimes it is bad. I do what I can trying to help yet I listen. I learn more that way than talking. Then comes a time when things must be done and I hope to be forgiven.
Feeding the viscous debt monster will eventually devour us.
Far too many companies going bankrupt and skyrocketing unemployment won’t grow ourselves out of its clutches.
So the big talk is of inflating ourselves out of debt in going forward, but the plan for that is doomed to fail without growth to create a kind of inflation that would put the debt genie back in the bottle.
Raising interest rates slowly won’t do it either…but they will do this anyway (slowly) to floss things over.
The multitude of corporate zombies runaway debt creation has allowed into existence by kicking the can of debt restraint down the road as long as they have is staggering.
The lying powers that be sweat bullets knowing historical normalizing of interest rates (7%…8%…) will be the only solution in the next few years…and will be the only game left to keep on printing money to pay the int. on the debt and to keep the debt holders happy and involved (counter to dissolved) short of a debt holder revolt. (and any potential subsequent disastrous default on the debt)
Inching interest rates up slowly now will only be a short term stop gap measure to floss over the deception before the chit hits the fan.
The coming consequences to not jacking rates to historical norms some years from now will only lead to alternatives of unspeakable evil society will soon grow accustomed to choosing to avoid at all costs.
The day of reckoning is coming…kool-aid sipping, rose colored glasses wearing, head in the sand, band wagon riding mass opinion/s notwithstanding.
30 years ago I left the collapsing USSR. There were long lines to buy food, inflation was galloping, but commies propaganda lead by the newspaper ‘Pravda’, which means truth on Russian, forced desperate people to believe that the bright heights of Communism is close untill country finances collapsed and the state disintegrated. I escaped the USSR 18 months prior to collapse as I felt the disaster is coming. Now I am of opinion that Canada follow the Soviet steps and it is matter of time when both Canada and the USA disintegrate and 2 or more new states will be created. For those who like socialism, good luck, I have watched this sad movie.
How about reduce taxes even more for capital gains if it’s tied to stuff made in Canada by Canadians.
Wouldn’t that help to build/create more and better paying jobs for Canadians, thus increasing total income tax paid?
Jobs in sales at a Corporate big box store doesn’t generate as much income taxes as if the stuff is produce here in the first place.
Simple spending more than is coming in thinking you can just tax people more will stop working at some point. The few will lots of money to invest to help make jobs will start thinking of moving away taking jobs and taxes with them. And the ones with just a bit to invest will have less to live on and spend in retirement if they don’t run out. But if you work for the Government why would you worry, you get that guarantied indexed pension right. The government will just borrow more money to pay you. paying more interest using more of the taxes, leaving less for anything else.
Thinking about the two Canadian Michael the CCP Government locked up, I’d be thinking about taxing stuff from the CCP more to help cover some of the added costs from 2020. If it’s high enough maybe the Companies making the stuff will move back here?
That PMT ‘the budget will balance it’s self’, doesn’t seem to have been working very well even before the Virus added spending. I guess even peoples grand kids will be ‘slaving’ away to try and pay just the interest on the debt back. But We/I’m guessing the PMT kids and grand kids will be fine due to inheritance, lucky them.
#37 Dolce Vita on 01.24.21 at 3:15 pm
Now I’m madder than a hornet. – DV
Let me talk you down, ol’ buddy! When we look at per capita and demographics between Italia and Canada, Canada has 2% confirmed cases while Italia has 4%! Italia as a few might know, has 60.3 million compared to Canada’s 37.75 mil and Italy’s aging population pyramid compared to Canada’s, speaks for itself:
https://www.populationpyramid.net/italy/
https://www.populationpyramid.net/canada/
Crunch it all together and one can make a palpable argument for Italy needing vaccines more than Canada from a humanitarian point of view and that the right thing to do would be for Canadians to exercise some patience.
Another argument could be made with vaccines themselves. Vaccines administered this time of year may only last one flu season as efficacy wears off over time. Logistically, its better to vaccinate in October as efficacy will have more impact in the second or potentially even the third flu season. As the markets have found out but media hasn’t covered it much beyond a news cycle for obvious reasons, Moderna/Pfizer vaccines will last for about 2 years:
https://www.reuters.com/article/us-health-coronavirus-moderna-vaccine/moderna-ceo-says-vaccine-likely-to-protect-for-couple-of-years-idUSKBN29C0YK
Maybe efficacy can stretch to 30 months but efficacy will drop over time with surface mutations just like the flu shot, but more slowly. Efficacy will drop from, say, 75% efficacy to 38% over 30 months. I’m just throwing it out there, but that’s the best guess all things considered. Is it enough? It is.
Mrna vaccines (Moderna/Pfizer) have been over hyped with their efficacy numbers (94 and 95%) still being used from preliminary interim phase 3 trials. These sample sizes are small and if people think vaccine makers don’t target trials on coastal areas where sea food consumption is high (in Vitamin D & Zinc) upping the percentages of asymptomatic cases, think again. That’s exactly what they do with class 4 virus’s.
Moderna/Pfizer trial participants were also light on color. It’s well known that people of color are adversely effected (again, Vitamin D connection). We can bet our vaccine companies know it too. Both Moderna and Pfizer trials were light on color and not by just a little, but a lot (11.5% as opposed to 17% U.S. population base when I looked it up).
94, 95% efficacy claims, we need to be realistic about that. Nearly 2% of the population is immune compromised, at least 1% is pregnant and/or lactating and the percentage of allergies is around .65% ish? There’s at least 4% of the gen pop that won’t get a vaccine at all. Factor it all in and efficacy from these vaccines is in the 70’s, likely mid 70%’s? Governments want to hype efficacy to promote and encourage vaccination and so they should, but efficacy numbers are somewhat inflated.
The other hard truth about Mrna vaccines is that they are not superior to DNA virus’s. They are in a fster rollout, but that’s it. If anything, they are inferior in the sense that Mrna vaccines require 2 shots with storage issues compared to DNA vaccines that generally require one shot and store more easily. Moderna/Pfizer have been hyped more because they are first out of the gate and have deserved some of the attention due to that fact. There is value in calming the masses but aside from this, DNA vaccines are a superior vaccine when it comes to rollout and J&J will remind us of this fact.
So! For all the reasons I’ve outlined, Italy needs vaccines more than Canada… vaccine longevity (its better to get our shots just before flu season if we can) and vaccine roll out, for humanitarian and practical reasons, it’s better in some respects to wait.
Whatever I can do to help manage your seething discourse as livid confabulation from Italians is somewhat legendary. Any time, friend. :)
@#161 The other guy
” i found him….”
++++
Did you check out some of the names of Ebeneezer’s siblings?
Tryphena, Eliphalet….. wow!
Spellcheck is having a coniption…..
@#144 Political Pondering
“But, would a balanced economy and society not lead to a balanced budget?”
++++
Not if the social warriors in power plan on taxing “the rich” ie workers……. to pay for the “poor” ie Universal Basic Income……. voters.
That’s a “balanced economy”.
The lazy get paid to ….well….do nothing.
Eventually everyone stops working.
There.
Its balanced.
I’ve been talking about the our debt since the last Trudeau left office, the old man’s rants were hard to ignore and got my attention. Very few listen or at least want to listen. “Now is not the time to cut services” every year regardless of the economic conditions. Roosevelt this, Keynesian that, all bullshit. I understand good debt/bad debt but this vote buying has destroyed our country, and yes it depressing to know we’ve let some sharp dressed naive drama teacher and the like to convince us otherwise. Shame on us.
Hey Garth –
This is Canada. We do not use the American term ‘railroad’. The CPR was always known as the Canadian Pacific RailWAY, and that is the proper term.
Sigh. Another photo of a a dogawful mutt attacking an innocent child.
When will humans learn?
@#171 Q2
“This is Canada. We do not use the American term ‘railroad’. The CPR was always known as the Canadian Pacific RailWAY, and that is the proper term.”
+++
You must be the one at parties….sitting in the corner…..alone.
#143 Sail Away on 01.24.21 at 8:57 pm
Recent correspondence with a venture capitalist friend in San Fran who lives in the financial district overlooking the Embarcadero:
SA: Yo bro- what’s with all the major corps fleeing California? Heck, we’re even hearing about it in Canada!
Mostly as a cautionary tale, since Canada’s idealistic leaders are leaning toward a wealth tax.
VC: I’ve been thinking of getting out of CA too. The socialist state of CA is in full bloom and the politics are chasing people out. I think the people who are running the state now are happy to see us go.
A wealth tax will certainly create more snowbirds! Always good to hear from you. Keep in touch. B
___
There is not a lot of hoopla made of it, but I think pretty much every major Metro in the USA is shrinking. Been years, and they’re all headed South for a lower cost of living and affordable RE.
California used to have an awful lot going for it decades ago, but now looking like it’s done like dinner between the pollution, cost of living, and now an ideologue nimrod government just like we have. Maybe we will see entire states joining in on the metro shrinking party.
They got the same problems in California as they do in Canada when trying to tax the rich. It’s never going to work if people are allowed to just pick up and leave.
I’m not sure whats more frightening.
100,000,000 people infected worldwide or
$1,000,000,000,000 ( Trillion) in Canadian debt with “Cottage Boy” at the helm and the News media ignore the ramifications…
#161 I found him! He’s in the middle of Vancouver.
Well old Ebenezer shares my Birthday. April 30, I’m 62, and live in Vancouver.
Coincidence? I think Not!
https://finance.yahoo.com/quote/GME
what fresh hell is this……
Tax the rich is a perfect mantra to get elected. A smart politician will use the most effective tool. Note: We are talking about a smart politician. Nothing about ethical or good. I hope the real estate gains also fall into the cap gain tax. Mr. T can do it after getting elected.
If you have assets that should be protected, there are tools. We should discuss them.
Trudeau will win as a democratic state will eventually turn into a socialist utopia of politicians doling out free stuff.
#174
> It’s never going to work if people are allowed to just pick up and leave.
It is slowly becoming harder “to just pick up and leave”, many states are becoming more like California (i.e. IL).
@#173 crowdedelevatorfartz on 01.25.21 at 9:30 am
@#171 Q2
“This is Canada. We do not use the American term ‘railroad’. The CPR was always known as the Canadian Pacific RailWAY, and that is the proper term.”
+++
You must be the one at parties….sitting in the corner…..alone.
–
pendants gonna pedant.
this place is full of ’em.
I think back to 2006 when it seemed like EVERY company was becoming an income trust because of the tax breaks. Then, on Nov. 1 of that year Jim Flaherty put an end to it. A lot of people bitched and screamed about it. My thoughts were: what you didn’t see it coming? If an idiot like me, who failed a college financial course could see it coming, why did so many people not see it?
Now fast forward to the present. With the debt at over a trillion dollars, owing partly to a lot of money spent for COVID relief for individuals and businesses, I figure taxes WILL go up. It’s just inevitable. I’ve just factored it into my investment decisions, like how I put winter tires on my car in the fall, before there’s any snow on the ground.
#179 Network Admin on 01.25.21 at 10:49 am
It is slowly becoming harder “to just pick up and leave”, many states are becoming more like California (i.e. IL).
———-
???
Not at all. It’s like moving between provinces. Think about it one day, leave the next. Nobody cares.
“By the way, folks hit by these capital gains taxes are usually the ones who invested in financial or real assets that help sustain or build the economy and create jobs. Raising the tax encourages them to stop doing that and move their wealth elsewhere.”
Theoretically yes, but is there any evidence to support this?
After all, what you are suggesting is basically trickle-down economics, which has been heavily criticized, and multiple studies show it did not work.
https://en.wikipedia.org/wiki/Trickle-down_economics#Economics
We have had the the capital gains tax inclusion rate at 75% before in Canada prior to 2000. Back in the 1990’s, when we paid off an immense amount of federal debt.
I’m going with the bear. Hand-to-snout combat. – Garth”
Garth, Any chance a sasquatch got him? Maybe you could start an investigative reality show to go after the facts.
Last March stocks and equity ETFs went on an AWESOME BLOWOUT once in a decade sale. I scooped some of these equities up at those AMAZING sales. With the BG (benevolent government) spending all this money on relief, stocks have gone up again because of 1) dirt cheap interest rates so there’s no better place to put your money and 2) anticipation of a recovery when enough of us are vaccinated for herd immunity. So, even though many of us stock owners never got relief money directly, we made money indirectly from nice capital gains. So, as the saying goes, we have to pay the piper now. The BG giveth, and the BG taketh away. It reminds of me of that classic song by Robbie Nevil with the words: c’est la vie, c’est la vie, it’s just the way it goes….
#165 Soviet on 01.25.21 at 3:46 am
30 years ago I left the collapsing USSR. Now I am of opinion that Canada follow the Soviet steps and it is matter of time when both Canada and the USA disintegrate and 2 or more new states will be created. ”
Komrad, let me be the first to invite you to one of the new states, the People’s Republic of Newfoundland. Motto, rather kiss a cod than a commie.
GME off the hook! Garth – are you going to talk about what all the cool kids are doing with stock ticker gambling? I can’t see how this doesn’t end in tears…..
#162 statsfreak on 01.25.21 at 12:29 am
Yeah, no kidding. I checked in here a couple of times while enjoying a great weekend and was dismayed. Wrote a couple of things then promptly deleted them.
Inflation and money printing will continue to prop the 60 on top of the economic recovery that will see equities do nicely. This will more than offset a weaker period for bonds. Plus, Garth’s 40 contains preferreds, so you will see steady income. And, eventually, bond yields will climb as the prices drop so you will see a relatively decent income stream as you rebalance to offset the equity growth.
Finally, a correction of 5% to 10% will happen this year as they do almost every year. The flight to bonds that comes along with the correction will help you sleep at night.
https://letstalkbudget2021.ca/
Access denied. Thanks chystia. Get your site working.
I’ll try another url..
Ok, site is now open. Have at it dogs!
#182
Not at all. It’s like moving between provinces. Think about it one day, leave the next. Nobody cares.
Sorry, I didn’t mean that somebody will hold you agains your will :) What I meant is that the taxes are becoming higher and rules are becoming more restrictive everywhere. BTW, https://www.thestreet.com/mishtalk/economics/it-takes-3-weeks-to-escape-illinois
#184 Captain Uppa on 01.25.21 at 11:23 am
This sums it up pretty well, I think. But, I’m sure one poster here will be happy to fill you on on why BB’s growth is driven by fundamentals.
From Quoth The Raven Research on Twitter:
And, yes, rates are negative when adjusted for inflation.
Is everyone forgetting about the carbon taxes Trudeau and many provincial governments like BC have done for years now.
The last time I saw what Liberals Trudeau, Freeland want is a cost of $4,000 to $5,000 per family or household by 2030 maybe more before that.
The carbon taxes they keep adding year after year is really another sales tax or GST, HST increase. It is all about making people move slaves in their own country and nothing to do with the greater good of Canada or society.
The GST credit is there to take care of that issue. Taxing consumption is inherently more intelligent than sucking off income – which kills incentive and requires a huge infrastructure to collect. People should be encouraged, not punished, for success. – Garth
Words to live by, some will never comprehend these words or choose not to.
#193 Faron on 01.25.21 at 1:00 pm
#184 Captain Uppa on 01.25.21 at 11:23 am
This sums it up pretty well, I think. But, I’m sure one poster here will be happy to fill you on [the result of massive stock gains].
———-
A man goes to a funeral. He asks the widow if could say a word. He goes to the front and says “Plethora” and sits back down. The widow leans over and whispers, “Thanks, that means a lot.”
“ The top 20% already foot 40% of the tax bill. Highest income-earners hand over 54% of their income. Not enough for you? – Garth”
How much money do you and your friends have? How may millions do you need. Be grateful I’m not in politics.
You come to this free blog to gather advice and knowledge, gratis, to help you succeed. And you still want to steal wealth? Adios. – Garth
@Tina Simms, post #194:
As I said above, I’ve already anticipated higher taxes, and of course that includes carbon taxes. The new Biden Administration is more serious about the environment and cutting carbon emissions than any other previous administration. Being that the U.S. is our biggest trading partner, it’s a given that both countries will be working to reduce carbon emissions, so I figure more carbon taxes are inevitable. It’s coming, deal with it. It will be a surprise to many people who bought big glass guzzling trucks and SUVs. Myself, I’m glad I did some bicycle maintenance that was overdue.
#182 Sail Away on 01.25.21 at 11:16 am
#179 Network Admin on 01.25.21 at 10:49 am
It is slowly becoming harder “to just pick up and leave”, many states are becoming more like California (i.e. IL).
———-
???
Not at all. It’s like moving between provinces. Think about it one day, leave the next. Nobody cares.
/////////
I think what was meant is that more states are becoming like California so in that case it is harder to find a place that isn’t.
“https://letstalkbudget2021.ca/ #190 Phyllis”
Thanks for posting that Budget 2021 Questionnaire link, Phyllis.
I hope Garth will participate in it.
Probably the only sensible reply they will receive.
Had to hold my nose completing that Budget 2021 questionnaire.
My Dog!! Chrystia’s even further left than T2.
Maybe the bias of the bureaucrats she hired.
Either way, if results to these “lefty” Qs actually form a strong component to Budget 21, we’re all screwed.
Big time.
“Do not throw your vote away.” – Garth
Every election I write “the village idiot” on the ballot, and every election my pick wins.
It really works.