The reckoning

An election this year? Mais oui. Get ready.

First, Chrystia the Impaler’s historic budget on April 19. Then the writ is dropped amid a vaccine lift. So, five months from now, badda-boom. We vote.

These are unprecedented times. A global pandemic. Stimulus spending galore. A deficit eight times bigger than any previous. National debt passing a trillion. Interest rates collapsed. Real estate gone nuts. Wealth disparity growing. Incomes stagnant. Puppies at four grand. States of emergency all over the place. It’s completely weird. But here’s the biggest thing: nobody seems to care. About any of it. Except the houses-and-dogs part.

Citizens have become detached from the big stuff.

Are you old enough to recall the 1988 federal election? Yeah, it was all abut the FTA – free trade with the States. The Libs ran TV ads with a big hairy hand rubbing out the international border on a map. The leader said it was the ‘fight of my life’ and claimed it would mean all Canada possessed – including water – would be for sale.  The Tories said this was classic scare tactics by a bunch of candyass wusses. ‘What do you have to be afraid of?’ the prime minister thundered.

The point? The vote was about a macroeconomic policy change. Shaping the future of the land. Visioning. Big stuff.

Today, wow, the PM’s beard and frothy locks get more attention. The government has not presented a budget in two years. It just spent more money than any other on earth and we’re still at the bottom of the vax-rollout list. The $400 billion deficit would have been unfathomable two years ago. It constitutes a fiscal threat of unlimited size as interest rates rise after Covid. How can the country possibly add more than $550 billion to its credit card under a single administration without throwing the bums out?

Because, meh, nobody cares.

The fiction has arisen that (a) the budget will balance itself, so chill, (b) interest rates can never rise now because nobody could survive, including the government, (c) all the money comes from the Bank of Canada and it can just print more and (d) for the past two years there’s been no accounting, no new taxes, lots of emergency spending and Trudeau looks relaxed. So what’s the fuss?

In olden times elections were fought on issues like fiscal management. The Chretien Liberals  made a career out of turning a deficit into a surplus. In Ontario Mike Harris did the same with big spending hacks. Even NDPers like BC’s Mike Harcourt cracked down on social expenditures, calling welfare recipients, “cheats, deadbeats and varmints.”

But that was then. In this world a billion is merely a thing the prime minister announces. Like love handles, it just appears.

The righties at the CD Howe Institute this week warned the party will end. “Someone will have to pick up the tab for the cost of the lockdown,” it says, “and rolling over the debt indefinitely leaves future generations on the hook, which hardly seems fair given that the benefits are limited to Canadians alive now.” Fairness, it adds, means Covid costs must be reduced before the next gen of workers is taxed – in about 20 years.

How do we possibly pay off $500 billion in two decades while still having a life?

Simple. Spend less. A lot less, it says. Cut business subsides. Reduce social spending. Give retired people less. Just issuing more debt – as we’re doing now – is to throw a ticking time bomb into the future. Or, we could just tax more. Everyone but you, of course.

Well, this blog refuses to let you dodge the issue. Answer these questions. Mr. Socks gets a report in the morrow.


The survey has closed. Results will be published on March 24th.

240 comments ↓

#1 The Other Doug on 03.23.21 at 2:09 pm

A pox on them all as absolutely nothing will be done.

#2 Dragon on 03.23.21 at 2:21 pm

Garth,

Question 8 should really be 2 different questions.

High income earners (e.g. lying government and crown corporation CEOs who got their job via nepotism) should be taxed more. All income tax brackets should be shifted up (no one should pay any tax on the first 40K of income – provincial or federal).

People who save their money and invest it to sustain themselves in the future, or those who own property that has over-appreciated should not be hit with high taxes on personal wealth, its plain wrong. Maybe implement a wealth tax when these people die but don’t tax them while they’re living.

Just my $0.02

#3 BlogDog123 on 03.23.21 at 2:24 pm

Fed tax rates in that 2nd, 3rd bracket can be raised and that’ll generate lots of income… Those lower-middle-class folks can pay their ‘fair share’ for voting for these spendthrift pols.

The minister of middle class prosperity will have a fit, but she’s not doing much now other than nod her head when T2 is in front of a microphone…

#4 Eric Edors on 03.23.21 at 2:24 pm

I don’t suspect many people here know enough to form a thoughtful opinion about #3, UBI. I have spent 40+ hours reading and listening to different economists thoughts on the subject and still feel like I can’t form an opinion yet. Economist seem to be split 50/50 on UBI. It’s extremely complex and likely will be very detail dependant, which means we’d probably F’ it up of course. Also, MMT is something that will also need to run in parallel to it. Which we basically already are in Canada anyways. So much for Keynesian, we’re nowhere near that although everyone thinks we are whether they understand the model and theory or not.

#5 Shane Gallant on 03.23.21 at 2:25 pm

Garth, we need to cut specific public sector salaries by a Minimum of 30% or more and we would save a lot. But we know that would never happen just like the the Budget will balance itself..

#6 Peter Courtney on 03.23.21 at 2:25 pm

You forgot to ask, “should you move”.

#7 Bob the Cat on 03.23.21 at 2:26 pm

There was a podcast on FT a couple of months ago, with Stephen Poloz. He explained it very simply that the rates should be lower than the growth of the economy so the debt can be serviced. We know what’s BoC plan (to keep them low) and considering that it also keeps an eye of the indebtedness of the population, then I can say for sure that interest rates can never rise now because nobody could survive, including the government is not a fiction anymore…
As stupid as it may sound but it seems we, the population, should follow what the govt does. If they get fully in debt, maybe we should get too? I just can’t imagine the BoC saying tomorrow “the rates will get to 2%” and not caring about the huge debt hole we are in right now and a slow economic growth.

#8 YVR Renter on 03.23.21 at 2:27 pm

Why would we ever cut pensions? We have paid into the CPP for 40 years and we deserve our due. Just as our elders got. Now if you’re talking reduce ridiculous government job attached pensions, yes, absolutely. We need to tax ridiculous real estate wealth. That’s where the money is.
We need a strong, new Conservative leader so we can get rid of Spender Socks. Saw a great bumper sticker in the hood – “Let’s make Trudeau a Drama Teacher again”.

#9 Handsome Ned on 03.23.21 at 2:29 pm

Out of the mouth of babes: My mom used to delight about the time my 4 year old self asked my grandmother for her hand in marriage. My grandmother asked, “what will we do for money?” I apparently replied, “gramma you can go to the bank and get some.” Genius! Who new that in 1957 a 4 year old in Alberta discovered MMT.

#10 Sean on 03.23.21 at 2:30 pm

> (b) interest rates can never rise now because nobody could survive, including the government

I’m one of those who said that. I could say I’d put my money on that but I have already done that (by investing in doomer stuff).

The other day I looked at the recent (Q420) public debt situation in Europe – public finances in 70% of EU countries are hopeless. Even without paying much interest they can’t cut public debt or grow, and they’ve spent a decade trying and public debt is growing every year.

I wonder how many responses to that poll will be contradictory (control spending, but tax the wealthy and increase subsidies for job creation).

#11 TurnerNation on 03.23.21 at 2:32 pm

Watch your FOOD Supply. The (former) First World countries are being dismantled.
“Germany. “All shops are to be closed between April 1st and April 6th. Really all of them: including supermarkets and other food outlets. And all businesses and production facilities. (twitter.com)”

– That ‘crazy leaked memo’ did suggest supply chain issues later this year.

—-Posting this from a Grey lockdown Warzone: From the Killing Us Softly Department. Don’t tell me our global rulers didn’t know this when they banned exercise, pools, trails, parks and gyms. Combined with the health care rationing and you get…the slow kill.

– 42% of Americans have gained weight over the past year. The average weight gain was 29 pounds. Millennials gained the most at 41 pounds
https://www.apa.org/news/press/releases/2021/03/march-weight-change

– During the lockdowns “40% of people didn’t get chemotherapy, up to 78% of cancers didn’t get diagnosed. aier.org

— Uhh yeah they knew, from early 2020:
09 Apr 2020
https://www.weforum.org/agenda/2020/04/this-is-the-psychological-side-of-the-covid-19-pandemic-that-were-ignoring/
“With some 2.6 billion people around the world in some kind of lockdown, we are conducting arguably the largest psychological experiment ever;
This will result in a secondary epidemic of burnouts and stress-related absenteeism in the latter half of 2020;”

————-
— To be clear they’ve Infantized many of us. Rolly-polly adults at home wearing fleece, sucking on vape pens, watching brightly coloured mobiles on the telescreens. Feeding time, pass the bottle – of eggnog. Starting to wail? No matter Alexa or Siri will hear your cries for food and order Uber Eats to the door. Seriously.

— Hard to believe it how fast we fell. Not two generations ago our Grandparents, some lying about their age to get in, signed up and shipped out to real war. With a minimum of training, operating dangerous war machines in hellish conditions. So many couageously went Over the Top to face certain death conditions.
Today people leap off the sidewalk as their neighbours walk by. Sorry but our elite rulers won this one fair and square. Our society fell in one week, in March 2020.

#12 Doug t on 03.23.21 at 2:37 pm

APATHY is this countries reality

#13 S.Bby on 03.23.21 at 2:44 pm

Bike repair wait times stretch for months amid parts shortage due to COVID

https://www.citynews1130.com/2021/03/23/bike-repair-wait-times-stretch-for-months-amid-parts-shortage-due-to-covid/

Supply chain issues.

#14 Mother Nature on 03.23.21 at 2:45 pm

Garth, I think it’s time for you to change gears….

Why not update your pathetic blog to a modern version. You know…. One where we can like/dislike (mostly) everything written by TurnerNation.

One that would allow the ongoing off-topic bromances to continue on their own time without obfuscating your posts and wasting the time of those without any interest in what they have to say to one another….which is practically everyone. They know who they are.

BTW, I suggest also that you cut back to 3 posts per week instead of the usual half dozen. Monday, Wednesday and Friday. Your guest bloggers can continue with the weekend version at their own peril.

Certainly this blog consumes more time than you had ever imagined. Besides, there are other sources you could tap to help satiate your never-ending ego appetite.

#15 ScrollTurnerNation on 03.23.21 at 2:45 pm

Happy Anniversary! One year since the market Covid low in my portfolio after a high on February 19. Whiteknuckle month. Up ever since where will it stop this time.

#16 ElGatoNerodeYVR on 03.23.21 at 2:46 pm

Instead of the same tired old ideas of cutting spending and increasing taxes how about we bring it forward:
Over the next 20 years forced retirement at 60 with a minimum guaranteed income of say 30k /year / person ,.
That will clear out the workforce and let them jobs be available for the younger generations ,ofcourse taxed a bit more. No exceptions.
Invest in retirement communities, maybe bring in some overseas experience as China can build whole cities in a couple years.
Bring back all of those entry level support jobs -call centres ,IT type help desks, we can even bring back some of the highly qualified people in them under an expedited resident visa.
Watch the investment money flooding in and the retirees flowing into the Vancouver Island and the Okanagan.
We already spent some 100 bil , let’s double down on it and see it all soar ,if you build it they will come.
Sounds crazy ? Well given the Libs spending all they can think of ,the Cons stuck in lthe last century ( the McKay wing pretty much shut out and all but purged) and NDP posturing for more socialism ..what else is left but to try something new and crazy .

#17 Leftover on 03.23.21 at 2:48 pm

#6 Peter Courtney

You forgot to ask, “should you move”.

_____________________________________

Good point. Sell your Danforth crack shack and go here:

https://www.barbadosdreamproperties.com/sales/barbados/carlton-view-23

Barbados, Baby!

#18 MoleMan on 03.23.21 at 2:48 pm

Don’t forget the discussion about making the capital gains on real estate taxable.

#19 Faron on 03.23.21 at 2:50 pm

1) N — small worry. Affordable now, but need to eye
2) A — But, there are budget neutral steps that cld be taken now
3) Y — Or change std deduction. UBI ~ tax
4) Y — Sure, there’s fat.
5) N — CC is needed to keep an active workforce. OAS has been paid into, can’t be touched.
6) Y — But only business of large size. Small (ca. <100 emp) needs all the help it can get now.
7) N — Same as 5.
8) Y — Could set an even lower bar. I paid 13% eff tax rate this year without even trying. NInc GST/PST. Too low.
9) N — Sales tax isn't progressive.
10) N/G — Did anyone expect anything else?

#20 Soviet Capitalist on 03.23.21 at 2:51 pm

Expecting the authorities to do exactly the opposite of my choices. The term responsibility has left this land 6 years ago.

#21 Steveston on 03.23.21 at 2:53 pm

Would like Trudeau out but when all the other choices are a 2 when he is a 3 out of 10, what can you do.

#22 I figure ... on 03.23.21 at 2:54 pm

the boomers know very well what is at stake here and just hope the shyte don’t hit the fan before we pass. The debt will run over the rest … you know … the mills on down …

#23 move on 03.23.21 at 2:55 pm

#6 Where will you move? Other countries including US have also added trillions to their deficits and have near zero interest rates. The only place to move is to die and move out of this world.

#24 Larry App on 03.23.21 at 2:56 pm

Hi Garth,
here is an idea or two.
Cut public sector salaries to align them to the private sector , after all people working in Public sector are net takers and not net givers , and I am talking about teachers , firefighters, cops , white collar and so on. Savings will be massive and most of the population happy
Abolish any type of income tax and replace it with a broad value added tax / service tax . Tax food as well !
That is , in my opinion , a very fair tax . If you are rich you are most likely to spend , hence you pay more tax , making the today social justice warriors very giddy with joy.
Cut down employment in the public sector too would not be a bad idea , lean and mean is the way to go .
I got more ideas , but you will have to cut me a check if you want to know more …
Just joking, you rock Garth !!!!

#25 Dolce Vita on 03.23.21 at 2:57 pm

I voted for a higher Sales Tax as I want you all to know how it feels paying a VAT of 22% (IVA in Italiano) – Italian lonesome misery looking for similar in Canada.

I liked POX the best. THAT was good.

-Mercutio Turner

—————————–

VAX Canada Mar 22, 2021

Doses administered = 143,649*

To single dose vax** 32M Cdns ≥ 15 yrs old will take:

194 days
October 2, 2021 [completion date]

To double dose vax 32M Cdns ≥ 15 yrs old will take:

417 days
May 13, 2022 [completion date]

Theoretical HERD IMMUNITY Calcs & Completion Date Estimates**:

70% August 5, 2021
75% August 15, 2021
80% August 24, 2021
85% September 3, 2021

—————

*Mar 21 single, double doses administered = 3,954,285, Mar 22 = 4,097,934.

**Based on latest doses/day administered. Assumes all future jabs allocated to single dose jabs ONLY. Includes 4,097,934 jabs (single & double) administered to date. Raw Data Source: CTV Vax Tracker.

———————–

Yukon DV

Yukon West may well have already achieved Herd Immunity…

https://i.imgur.com/BLXqTPv.png

Go Yukon Go!

Above 2 dose all finish date abysmal BUT Canada ONLY single dose vax’s from today onwards, Herd Immunity:

Early August to Early September???

Wouldn’t that be something for the economy, return to “normalcy”, wealth generation and the well being of Canadians!

#26 mike from mtl on 03.23.21 at 2:59 pm

While appreciated for entertainment purposes, even if the poll results really end up in T2’s “Deleted Items” inbox, will result in nothing. Just like voting in real life.

Unless we dial back the debt spending or seriously increase taxes (yeah right), T2 and free stuff party have most likely full support of the voters.

#27 Prince Polo on 03.23.21 at 3:00 pm

The federal govt dodo birds don’t care and will do nothing but buy more votes. Then it’ll be somebody else’s problem to figure out as Teflon Trudeau skates into an useless UN photo-op position.
Meanwhile, conservatives offer no viable alternate so probably another decade of piss-poor Liberals fiscal management, or should I say deliberate and corrupt mismanagement?

#28 Jake on 03.23.21 at 3:04 pm

In the private sector during good times salaries go up, in bad they go down or worse we lose our job… except if you work for government… jobs are protected and wages always go up. How about some trimming on the inside too.

#29 Dogman01 on 03.23.21 at 3:07 pm

“Because, meh, nobody cares.”

Our “democracy” could use a lot of improvement, many are realizing it is Black Cat \ White Cat system, which in the end does not serve their interest. https://www.youtube.com/watch?v=R8EhbOLiv0Q

Canadians no longer see themselves as citizens , like our elite, Canada is simply a vehicle to extract as much as they can for themselves.

The young easily distracted by Identity Politics and Climate Change social justice, do not have serious agency as they chase their phantoms.

The debt will be inflated away.

#30 Joe Rosser on 03.23.21 at 3:12 pm

To all those who say the “BOC will never raise rates.”

The market will raise rates, check out the 10yr US treasury yield, you think the Fed raised that rate to nearly 2%? Nope. The market determines rates.

#31 Dolce Vita on 03.23.21 at 3:16 pm

Forgot to mention on the Herd Immunity Theoretical calcs in my prior comment I am assuming the Vax providers are not lying…

e.g., Moderna = 92% efficacy 1 jab.

At current vaxing Fall looking good for Herd Immunity whatever that number is.

If Canada can STEP UP its vaxing game here are some Herd Immunity, doses/day and completion dates, single dosing ONLY from today onwards (assumes vax deliveries in concert):

75% @2X todays rate (287,298) = June 3, 2021
75% @3X todays rate (430,947) = May 10, 2021

80% @2X todays rate (287,298) = June 8, 2021
80% @3X todays rate (430,947) = May 14, 2021

85% @2X todays rate (287,298) = June 12, 2021
85% @3X todays rate (430,947) = May 16, 2021

———————-

There is reason for optimism Canada.

My take, Gov Canada and the Provinces, Territories need to ABANDON double doses for now until Herd Immunity reached, THEN resume double doses.

-FWIW

#32 Keith on 03.23.21 at 3:19 pm

Re government spending, business subsidies, tax policy.

Far too much government spending is over politicized. I am in favor of a policy change and spending increase – the role and scope of the Auditor General.

Government programs/spending should be accountable. Business subsidies can judged objectively with economic return on the taxpayer dollar. Much more difficult with social programs of course. The government waste we hear about so much should be a non partisan issue – a stronger role for the auditor general and more resources to track spending should yield results.

More taxes are inevitable, I prefer progressive income taxes to wealth taxation, which has the problem of unrealized assets and people with limited cash flow. In lieu of higher rates, which are a political non started a sharp pencil on deductions would be a good start.

The HST is not a bad target, with low income credits in place it seems to be palatable to many economists. You can moderate spending on wants, so there is a bit of personal control.

Chretien got a lot of financial mileage out of cutting transfer payments and suspending indexing of the basic personal exemption, which translated into a substantial tax increase on working Canadians. The task this time is more difficult.

The best thing about solving the situation is that a crisis gives a government license to do things that are ordinarily impossible – fiscal crisis, hello tax increases. That said, the Trudeau Liberals bear little resemblance to the Chretien Liberals, and I don’t expect strong fiscal leadership until there is no alternative.

#33 YVRmillenial on 03.23.21 at 3:19 pm

A sales tax makes a fair bit of sense but what I object to with the tax is mostly that it requires too much regular math and you are confronted with it on every purchase. In Europe the sales tax is 19% in most places but prices on the shelf include tax so no sticker shock no special math. If you want to budget for expenses it requires regularly counting your purchase price and adding regional tax on purchases in Canada.

#34 SunShowers on 03.23.21 at 3:19 pm

#4 Eric Edors
UBI is very complicated, but something that I think is a bit simpler but achieves similar ends is UBS (universal basic services).

For example, although we don’t have a food stamp program with EBT cards in Canada, lots of other nations do, it’s a known entity so we know how it would work and how to implement it.

So, we could simply give every Canadian regardless of income or employment status an EBT card usable at places that sell food that gets pre-loaded with ~$300 per month (no rollover). Soup kitchens/etc would still need to remain open, but they would see a significant drop in demand for their services.

#35 Christopher Moltisanti on 03.23.21 at 3:20 pm

So this Bank of Canada QE bond buying thing is basically like…

…Tony Soprano carrying a degenerate gambler’s debt indefinitely with little to no vig, yes?

#36 Richard L on 03.23.21 at 3:20 pm

Borrowing money and forcing children who are not able to vote (or not yet born) to pay it off is the most selfish thing we can do. Unfortunately, that is exactly what we will do.

#37 Linda on 03.23.21 at 3:22 pm

Regarding UBI, who pays? How would this be funded? Canada already has both debt & deficit. One of the concerns as more Canadians turn 65 is that the cost of providing OAS benefits to Canadians will take up an ever increasing slice of the budget. OAS is already means tested, but the level of income before any clawback begins exceeds the ‘average’ household income by a considerable amount.

UBI is only ‘universal’ if everyone receives it. So right off there would be issues with who gets what, when & whether there would be means testing applied. Are we going to provide UBI to the hundreds of thousands of immigrants that arrive in Canada every year? Should children living at home receive UBI, or will it only apply once one turns 18? Will there be any conditions to receiving UBI, such as graduating from high school? Do we discontinue all other programs like child benefits, OAS, EI etc. since ‘everyone’ will now get UBI? Is ‘the plan’ to grab the billions in CPP to fund this largesse, since anyone currently receiving CPP may well end up getting ‘more’ if UBI replaces all of the varied subsidies etc.? Would employers be expected to pay UBI premiums the way they pay other payroll related premiums? What incentive would there be to pay UBI premiums & work for a living, particularly if UBI is means tested so that those who earn above a certain income level effectively are punished for their success?

Besides all of the above, I highly doubt that anyone currently receiving benefits of various types are going to cheer those benefits being replaced by UBI. Nope, they are going to want all of the previous benefits AND UBI too. Let the lobbying begin…..

#38 DON on 03.23.21 at 3:26 pm

#123 R on 03.23.21 at 11:55 am
#118 DON
China needs Taiwan because they have the best semiconductor manufacturers. With these, China can fulfill it’s goal of world dominance in electronics and at the same time, harm the Western world military capabilities ( Think how many semiconductors are in military weapons , where everything is electronic). Combine a semiconductor dominance with their already rare earth dominance, things could get awkward quickly for the “West”. The US dominated the oil century era, and China wants to dominate the electronics era.

***********
Agreed…thank you for the info on semiconductors and Taiwan. I heard rumors the US was getting back into mining rare earth materials.

#39 Stoph on 03.23.21 at 3:26 pm

#4 Eric Edors on 03.23.21 at 2:24 pm
I don’t suspect many people here know enough to form a thoughtful opinion about #3, UBI. I have spent 40+ hours reading and listening to different economists thoughts on the subject and still feel like I can’t form an opinion yet. Economist seem to be split 50/50 on UBI. It’s extremely complex and likely will be very detail dependant, which means we’d probably F’ it up of course. Also, MMT is something that will also need to run in parallel to it. Which we basically already are in Canada anyways. So much for Keynesian, we’re nowhere near that although everyone thinks we are whether they understand the model and theory or not.

—————————————————————

UBI is a loaded term and will mean different things to different people. A big difference in possible implementations is whether or not it replaces existing social programs or is added on top of existing programs.

Although at first glance, I like the idea of empowering people by letting them decide on to spend social assistance money (ie. UBI replacing benefits), it’s possible for people to end up being worse-off than before where benefits are directly given. I also think that the approach of UBI replacing most existing benefits is a political non-starter.

#40 Axehead on 03.23.21 at 3:28 pm

Question 2 UBI: A failed concept. Failed in every country and every Canadian province where it was attempted – each reversing the experiment less disastrous economic bankruptcy occur.

#41 WEXIT on 03.23.21 at 3:29 pm

My thoughts of Canada were made when I worked in Alberta during the NEP. When you have one part of the country (where I grew up), could care less about the oil and gas industry. And the Easterners have done it again in the past 5 years in canceling pipelines.

Canada is a second rate count without a work ethic. And that will never changed as their are to many government works, and people collecting government funds.

You got what you voted for, live with it.

#42 Axehead on 03.23.21 at 3:29 pm

Sorry, question 3.

#43 Sail Away on 03.23.21 at 3:31 pm

Debt is a fiction. Consider for a moment that all worldwide debt was eliminated overnight- what would happen?

The sun would still rise, the earth would still turn, and your dog wouldn’t care.

Don’t worry too much about irrelevancies.

#44 AM in MN on 03.23.21 at 3:31 pm

I’ve had a hard time agreeing with Garth on a lot of insights lately, but this time I think he mentioned the ticking time bomb, which is debt roll over.

The BoC can print and the interest rates stay low…for now. It takes time, like in the 70’s, to get to the point where the bonds need to be re-financed and the market wants a much higher rate to cover the devaluation of the money printing.

When the interest is paid by printing more money, the devaluation accelerates.

Most of the empires that collapsed over history were due to economic collapse brought on by monetary devaluation. It isn’t different this time, but my guess is it takes another 5 years or so to rear its head.

I would argue though that there is a serious economic issue on the table in the next election, which is global warming and other radical environmental issues related to de-industrialization.

It seems from news coverage of the Conservative convention over the weekend that the people want de-industrialization, and the wealth destruction that goes with it. The pendulum might swing back when said debt roll-overs start to become a problem an inflation has wiped out a good chuck of the living standards for those whom expect to be looked after by the government.

Most people who want this don’t seem to realize that the ability to harness hydrocarbon based energy over the last couple centuries is what has given us our standard of living.

A world with steel and hydrocarbon based fuel is a stone age existence.

The worse part is that these things will still be produced and consumed, but largely by people and in countries that no Canadian would want to live in, and who will not be kind to the SJW agenda once they come to dominate the global affairs of the world.

One defensive play for now is Bitcoin. No CB can print it, and the technology being developed around it for global payments and other banking services is truly breathtaking.

#45 Amok on 03.23.21 at 3:31 pm

A capital gains tax, a tax on primary residence sales, and a speculation tax; like, yesterday.

#46 PC Load Letter on 03.23.21 at 3:32 pm

Thanks for the poll Garth. After last weekend’s messy Conservative convention, I feel like I’ve entered into the “pox on them all” camp for now. Some serious miscalculations there.

Mr. O’Toole’s strategy worked out for him in the leadership election but appears to have left him compromised. A quick leadership change pre-election did seem to work out for the Ontario PCs…

#47 Broke Student on 03.23.21 at 3:32 pm

Those in my age group rarely know much about politics. The vast majority think on a smaller and selfish scale while not bothering to do some reading. On top of that many have stopped listening to the media because of the propaganda that wishes to scare you to stay home. These days my peers complain that they wish they could go outside and day dream about buying a house because “renting is a waste of money. It doesn’t work towards anything.” There’s so much wrong with today but it started with the education system that teaches ignorance is bliss and trust the government. That won’t change anytime soon so I’m looking forward to being taxed to oblivion in 20 years

#48 Anna on 03.23.21 at 3:32 pm

Tax capital gains on personal residences tied to the increase in the value of the land.

Increase taxes on second, third (or more) homes.

Introduce an inheritance tax.

#49 AM in MN on 03.23.21 at 3:34 pm

A world WITHOUT steel and hydrocarbon based fuel is a stone age existence.

#50 Anonymous on 03.23.21 at 3:36 pm

Call me a radical, but there is almost no reason for the government to give money to anyone as it always just comes from someone else’s pocket.

Want something? Go get a job.

#51 alexinvestor on 03.23.21 at 3:36 pm

Inflation and immigration will work like magic to make 500 billion go away really quickly. 5% inflation for 15 years, double the GDP, and suddenly 500b “shrinks” to 100b. Of course, everyone’s savings and entitlements will shrink too in real terms.

#52 Carla on 03.23.21 at 3:37 pm

Just to clarify a few points on my vote:

Taxes on high net worth individuals should be on realized wealth and not income (as it is already highly taxed). Also, trimming the budget of government, and using the savings to build rental homes for low income families would be a great help.

I chose Conservative reluctantly, because to me they are the least objectionable of the lot. Even if “a pox on them all” is also a valid sentiment for me, I also believe in trying to make my vote count every time.

Thank you for your blog, Garth. I also enjoy most of the comments from the blog dogs. Wit and wisdom, every day.

#53 Bob Dog on 03.23.21 at 3:39 pm

The solution is to offer more SR&ED tax breaks to Amazon for creating jobs for migrants .

#54 Basil Exposition on 03.23.21 at 3:43 pm

Rolling back OAS payments to high net worth Canadians while raising taxes on their income would be unfair indeed. I would support clawing back the OAS payments to seniors earning an above average income. UBI may be inevitable with the future automation of work such as driverless trucks and delivery.
As for cutbacks to government spending, I believe the national ship building strategy might be a good place to start. Bring back Vice Admiral Norman to run military procurement.
Thanks for this daily blog Garth. Appreciate your insights and the chance to share thoughts.

#55 alexinvestor on 03.23.21 at 3:51 pm

Oh, our children will never pay for it. Once taxes go beyond a certain amount (50% ?), the government will find that people will either relocate to a friendlier tax jurisdiction (especially in a world 20 years from now), under declare income through legitimate or illegitimate means, or not choose to work at all.

#56 Kevin on 03.23.21 at 3:54 pm

Who do the moderates/fiscally conservatives/socially liberal and climate change believers vote for in this day in age? I’m politically homeless. :(

#57 Doug in London on 03.23.21 at 3:54 pm

The reality is dealing with this kind of debt will require both cutting expenses and increasing taxes. The problem is doing either is political suicide these days. I would like to vote Conservative, but this new Conservative party can’t get its act together. Offer me old school conservatives like Brian Mulroney, Bill Davis, or Joe Clark (Joe who?) and not only would they would get my vote, but they would win with a majority easily.

#58 Don Guillermo on 03.23.21 at 3:55 pm

#23 move on 03.23.21 at 2:55 pm
#6 Where will you move? Other countries including US have also added trillions to their deficits and have near zero interest rates. The only place to move is to die and move out of this world.
*************************************
Use your imagination.

#59 JCHappy on 03.23.21 at 3:58 pm

Hi,

Why can’t I vote for the Bloc Québécois in the poll ? Some mean separatists are fans of your blog you know :)

#60 Dolce Vita on 03.23.21 at 4:00 pm

#43 Sail Away

In spirit I agree.

Accounting hat on, disagree.

The higher the debt, recall sold as a bonds requiring repayment & interest, the less of the Cdn budget goes to Gov spending on the good people of Canada.

Rather than Gov Canada programs that increase GDP, interest payments will be a drag on GDP – money not going into the economy, given to bond holders.

Fine if that debt is held by Cdns, used to be like that once. Not anymore.

Canada Total Gross External Debt = CDN $3,147,435 Million

https://tradingeconomics.com/canada/external-debt

Into the pockets of foreigners and not into the pockets of Canada and Cdns.

As rates rise, the drag on the Cdn economy will be greater.

#61 Faron on 03.23.21 at 4:08 pm

#44 AM in MN on 03.23.21 at 3:31 pm

One defensive play for now is Bitcoin. No CB can print it, and the technology being developed around it for global payments and other banking services is truly breathtaking.

Puuump it. Pump it up!

https://www.youtube.com/watch?v=Pdd0jUnPz-M

#62 Dave on 03.23.21 at 4:11 pm

Give retired people less? For a single senior, an average CPP payment combined with the OAS wouldn’t even cover half of their expenses. If anything, we should be making it more difficult for the rich to shift their money around so they can avoid pension clawbacks. Some lowlifes even try to structure their money so they can get the Guaranteed Income Supplement. Don’t these people have any conscience?

#63 Yukon Elvis on 03.23.21 at 4:11 pm

The upcoming budget in April will be about vote buying and giving away free stuff. Sunshine and lollipops.The Libs will be reelected with a majority. The 2022 budget will be the budget to fear taxation wise. Scorched earth.

#64 Do we have all the facts on 03.23.21 at 4:12 pm

In 1998/99 the accumulated debt the Government of Canada, excluding deduction of tangible assets, was $606.6 billion and annual debt servicing costs were $41.4 billion

This level of debt became a serious concern of the Liberal government under Prime Minister Jean Chrétien and by the end of 2003/04 the total debt, excluding assets, had been reduced to $556.3 billion.

The Liberal government under Prime Minister Paul Martin continued the austerity initiatives and by 2005/06 the total debt was reduced to $536.9 and debt servicing costs had been reduced to $33.8 billion.

A Conservative government under Prime Minister Stephen Harper continued to control expenditures and by 2007/08 the debt had been reduced to $516.3 billion and debt servicing costs remained at $33.2 billion.

Unfortunately the financial crisis of 2008 and the decision to lower interest rates to 0.25% extinguished all plans for future austerity.

Clearly the Government of Canada had the ability and conviction to reduce the level of total debt by $90 billion over 10 years once they decided it was a priority.

Unfortunately of current Liberal government has indicated that if they were to be re-elected they intend to increase the total debt of our Federal government to $1.38 trillion by 2025/26. When Provincial and Municipal debt is considered total government debt could exceed 100% of Canadian GDP by 2025/26. Who will line up to loan our governments money then.

At what point does the current penchant for debt illustrated by Justin Trudeau and his crew start ringing alarm bells. Does the fact that current interest rates are extremely low justify saddling future generations with a level of debt that will definitely constrain future economic growth.

If future generations could vote in the upcoming election I doubt whether the Liberal Party would be their first choice.

The current generation however is exhibiting a level of rapacity that may never be exceeded. What happened to common sense?

#65 Dan in Nanaimo on 03.23.21 at 4:13 pm

Real wages will need to increase if .gov mandates more tax revenues.

Otherwise, someone will need to step in to control the front end of the yield curve indefinitely.

This is where is will get interesting.

Invest and plan accordingly.

#66 Gord on 03.23.21 at 4:15 pm

If printing money to infinity could create or maintain permanent prosperity, every poor country would be rich and the world would have been free from poverty and starvation for eons.

The same can be said about zero interest rates, yield curve control or any other such measure. History shows that when these things are brought in the end result (and it doesn’t take long) is always economic destruction.

The same goes for Canada – zero rates, printing to infinity, yield curve control (if that happens), etc. will prove to be a temporary sugar rush for the economy before the reckoning comes.

And these policies won’t prevent Canada’s housing bubble (first identified by Garth in 2008) from the inevitable bust part of the housing boom-bust cycle.

#67 Stone on 03.23.21 at 4:15 pm

If elected, I’ll push through legislation to ensure housing is affordable. Same for the puppies. At the same time, I’ll also legislate personal finance training on all comrade citizens so they too have the opportunity to get nice returns on their balanced and diversified portfolios which should be at 8.01% YTD.

Beyond that, is there anything else that all you comrade citizens want? I think I’ve covered all the bases, right?

#68 Don Guillermo on 03.23.21 at 4:20 pm

#48 Anna on 03.23.21 at 3:32 pm
Tax capital gains on personal residences tied to the increase in the value of the land.

Increase taxes on second, third (or more) homes.

Introduce an inheritance tax.
***********************************

The Beatles had you figured out in 1966. More taxes to save this great country. TAXMAN

https://www.youtube.com/watch?v=l0zaebtU-CA&list=RDl0zaebtU-CA&start_radio=1&t=0&t=0

#69 LoveRepetition on 03.23.21 at 4:21 pm

You’ve been harping on deficits and proclaiming inflation & rising interest rates for over a decade. It simply won’t happen.

#70 ogdoad on 03.23.21 at 4:23 pm

And Capitalism rears it’s ugly head. We have to hope on progress to help pay down the new debt. New companies, more people, more inventions – attract these people with low rates so they can buy a house.

Get your kids into science and engineering – then tell them the REAL reason why it’s a good idea ;)

Og

#71 To the point. on 03.23.21 at 4:23 pm

Comrade Horgan? Mr. Socks? How about Useless O’Toole?

#72 Fake Name on 03.23.21 at 4:30 pm

in case you didn’t pick up on it, Dolce Vita lives in Italy. Thanks for sharing this detail for the 10000th time, Dolce!

#73 Neo on 03.23.21 at 4:37 pm

Why doesn’t the government borrow money from the Bank of Canada at no interest like we did when the Granville Street bridge was built and when the George Massey tunnel was laid at the bottom of the Frazier river.

The government hasn’t been corrupted by foreign central bankers has it?

Canada was once a wonderful country.

#74 NOSTRADAMUS on 03.23.21 at 4:43 pm

” WHAT HAVE I DONE”?
I was recently watching a rerun of the old movie” The Bridge Over The River Kwai”. The line that caught my attention like a diamond tipped bullet right between the eyes. ” What have I done”? spoken by Sir Alec Guinness as he finally comes to the realization the harm he has created by his delusional thinking. I am wondering if Captain Justin, Sugar Daddy, will ever utter “what have I done”? as he also comes to the realization of his own delusional thinking with regards to his Covid Bridge to no where, That is all I have to say on that, for now.

#75 Faron on 03.23.21 at 4:47 pm

#136 BillyBob on 03.23.21 at 2:18 pm

The main reason I took leave of the comments for an extended period of time was I was letting myself get dragged into stupid exchanges

So you came back and, in your first comment, started hucking stones at the very persona you “didn’t” want to get dragged into exchanges with??? You may want to get your corpus callosum checked out pal.

You may as well stick around. Your choices are to leave and be remembered as a clown or stay and redeem your self as someone with more spine and less colourful hair.

Sorry Garth.

#76 FreeBird on 03.23.21 at 4:48 pm

Assuring safety is hopefully goal by all:

https://www.nytimes.com/2021/03/23/business/astrazeneca-vaccine-questions.html#click=https://t.co/poP4kxcRP2

Good mult peer reviewed study on C19 treatment

https://rcm.imrpress.com/EN/10.31083/j.rcm.2020.04.264

——————————-

Meanwhile Trudeau won’t let his top advisor testify? And Mr Ford caught on live mic saying only reason Ont in lockdown is fear disagreeing w/CMOH political suicide?

China stops crypto mining (~60% world’s BTC using coal.) Not good for digital Yuan or carbon neutrality by 2060. Some are taking out HELOC or what little they have to buy BTC. Buy a house in Cda or BTC?

#77 King of the Hill on 03.23.21 at 4:48 pm

“The $400 billion deficit would have been unfathomable two years ago.”

Remember when Lisa MacLeod told welfare recipients that the best welfare is a job when asked to increase welfare rates to inflation?

Many of the essential workers are not Lisa MacLeod, yet they have seen their purchasing power erode for shelter, meat and food.

Hypocrisy of the social justice liberals to create real estate bubbles for the rich.

#78 T-Rev on 03.23.21 at 4:50 pm

A pox on all their houses.

#79 FreeBird on 03.23.21 at 4:58 pm

Single dose?

https://medicalxpress.com/news/2021-03-shot-covid-vaccine-previously-infected.html

#80 danthemechanic on 03.23.21 at 4:59 pm

Universal Basic Income is neither a human right nor does it necessarily kill incentive. It’s an experimental question and a bit of an academic exercise. It could be that even though it’s not a right, it might be net-beneficial to society as a whole. Or not. Both the research and theory isn’t substantive enough to make an absolute claim either way yet.

#81 leebow on 03.23.21 at 5:00 pm

You guys still don’t get it, do you? @ 6% a month appreciation just one house will be a trillion in 20 years. We’ll sell a cul-de-sac and pay off all debts, domestic and foreign.

#82 Tudval on 03.23.21 at 5:01 pm

“rolling over the debt indefinitely leaves future generations on the hook, which hardly seems fair…”

Let’s pause for a moment and think about it, not just repeat a mantra from times past that may no longer apply. Just 2 points:

#1: This government spent on young Canadians like no one before, all to ensure a reliable supply of votes and they DID vote for deficit spending (albeit an order of magnitude smaller).

#2: Most of the population growth, if Canada will achieve the goal of 100 million people by 2100, will come from immigration, and most will understand they are inheriting part of this debt to “keep our land great” and they will willingly pay to servivce it and perhaps paying it down. When I came to Canada I did in fact calculate what my share of the debt will be and roughly how much I will pay extra in taxes vs where I was living before. It worked out fine.

#83 Grasshopper on 03.23.21 at 5:02 pm

How about sell off crown land to pay deficit?

How much is the 407 ETR worth? How much property tax do the owners of the 407 highway contribute? Zero? Seriously?

Increase GST/HST.

I didn’t authorize the excessive spending. So I would prefer not to pay more … even though I know we all will

The politicians who made this mess should be at least partially responsible to pay off this debt. How about reducing their platinum pension plans and benefits (based on net worth, income etc.)

#84 Zed on 03.23.21 at 5:05 pm

Spending has to come down, first thing first.

Reduce federal ministries to 12-15 from more than 25.

Reduce the OAS clawback to maybe $60’000 and completly gone at $90’000.

Modify federal civil servants’ pension to defined contribution (most people have this one).

Increase GST/HST by 2 points, minimum.

A special Covid tax on RE transactions, maybe 1% of the value (taken care by notaries/lawyers).

End income spliting of seniors, only fair since younger workers don’t have this previledge.

Remove 3/4 of the deductions from the income tax, that would simplify the returns.

#85 leebow on 03.23.21 at 5:06 pm

By the way, your pension fund just invested all its assets in 888 Wealthy Beaver Cres, Oshawa, ON, trendy 3-story corner lot, 4 bdrm, 4 bathrooms, granite, breakfast bar, master bdroom w/impressive walk-in closet, prime location, easy access to public transportation.

#86 Sail Away on 03.23.21 at 5:06 pm

Understand that when your country and everybody you know decides pickle themselves in debt, you are under no obligation to participate.

It’s perfectly ok to sit it out. Relax, listen to some music, visit Mexico, sail around the world…

#87 Don Guillermo on 03.23.21 at 5:10 pm

#17 Leftover on 03.23.21 at 2:48 pm
#6 Peter Courtney

You forgot to ask, “should you move”.

_____________________________________

Good point. Sell your Danforth crack shack and go here:

https://www.barbadosdreamproperties.com/sales/barbados/carlton-view-23

Barbados, Baby!
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Love the Caribbean Islands. My wife and I lived and worked in Trinidad (TnT) and later Jamaica and enjoyed them immensely. They are both beautiful island nations with some interesting differences, We also spent time exploring many other islands throughout the region. Problem is once work is over (as in retired) these islands can get very small. When you live in these areas you don’t go to the beach every day. You just don’t. It’s not the same as being on a 2 week vaca. Having said that we still go back to the islands for short visits once in awhile. My recent favorite is the French side of St. Martin.

#88 Tyberius on 03.23.21 at 5:11 pm

#11 TurnerNation on 03.23.21 at 2:32 pm

….

— Hard to believe it how fast we fell. Not two generations ago our Grandparents, some lying about their age to get in, signed up and shipped out to real war. With a minimum of training, operating dangerous war machines in hellish conditions. So many couageously went Over the Top to face certain death conditions.
Today people leap off the sidewalk as their neighbours walk by. Sorry but our elite rulers won this one fair and square. Our society fell in one week, in March 2020.
——————————————————-

Sad, but true. A few (but not enough), are waking up to the ‘New Normal’ – but are paralyzed and unable to take action. That takes sacrifice.

I appreciate your posts.

#89 crowdedelevatorfartz on 03.23.21 at 5:15 pm

@#123 R
“China needs Taiwan because they have the best semiconductor manufacturers…”

++++

One can assume the first plants that will be destroyed if China invades will be the semi conductor plants and their very high tech printers.
Oddly enough.

Taiwan’s newest semi conductor factory built for $11 billion requires High tech printers from Europe custom made, shipped and then set up by Europeans, ….to manufacture the chips…..

Taiwan is also suffering through a drought ( the monsoon rains didnt come this year) and the semiconductor industry requires lots of water.

Taiwan is also investing billions in a semiconductor industry in Arizona.

Taiwan makes 51 % of the worlds chips while the US , etc make the rest.
Interesting times.

#90 Bill on 03.23.21 at 5:16 pm

Like it or not, we are locked into QE-MMT for the foreseeable future. While UBI may be enticing, it would also be inflationary once the economy returns to near normal – with inflation and currency devaluation being the true risks of MMT. https://www.lynalden.com/quantitative-easing-mmt-inflation/

#91 FreeBird on 03.23.21 at 5:18 pm

@#37 Linda
Agree. Dr Pippa Malmgren (Bush advisor) in recent video speculated US will do thru new CB digital currency and maybe tie to ‘behavior’ but democratic freedoms would have to be protected. Sounds too close to another country’s system. CERB/US stim maybe early or test stages? We’ll see. Still best to avoid debt, keep investing. Learn to grow a few veg too..kidding…maybe.

#92 cuke and tomato picker on 03.23.21 at 5:19 pm

At the present rate our government is spending it will take every CANADIAN to give a little for us as a country to
resolve our debt. To turn this wonderful country around
will require all of us to do MORE. It can be done if we work together and make it a national goal to get CANADA
debt free by yes a covid 19 tax.

#93 Billy Buoy on 03.23.21 at 5:20 pm

# 43 Sail Away

That’s funny….saying Debt doesn’t matter. It DOES matter to those that have a LOT of it…luckily I have none.

It’s like the extremely wealthy neighbour chiming in whenever he has a chance “Why does every one worry so much about money?”

It’s kinda ignorant to say either if you ask me.

Better to enjoy your hard earned worth quietly than make an ass of yourself with arrogant comments.

#94 Islandgirl on 03.23.21 at 5:22 pm

I have to say I had trouble answering the questions as I didn’t like the choices. I think a much higher tax on wealthy, but the definition of wealthy would have to change. Because honestly at a certain point you literally can have too much money but $250 might not be that point. Additionally a universal basic income is pointless if you just hand money to everyone as it will just cause everything to get more expensive. It would make more sense to provide a basic living standards, shelter, food, services. To ensure those that need it get it.

#95 Flop... on 03.23.21 at 5:23 pm

Been watching Undercover Billionaire spasmodically, one of the cities that the 3 entrepreneurs are trying to recreate their prior success anonymously in is Fresno.

I think the lady ( Elaine Culotti) picked up a room for $25 a night in Fresno, and then started hustling immediately to try and achieve the show’s target of 1 million dollar evaluation of a business in 90 days, starting with $100, old car/ truck and a tank of gas and no contacts.

She likes to use the word tranche…

M46BC

————————————————————————————

“Top 25 Most (and Least) Expensive American Cities to Rent an Apartment.

Paying the rent is usually one of the most expensive bills due each month. But some people are spending a lot more than others on rent, as our latest map of the most expensive and cheapest cities to rent an apartment in the U.S. demonstrates.

* New York City is the most expensive city in the country to rent a typical 2-bedroom apartment, costing $4,927 USD per month.

* Wichita, KS is the cheapest American city where it runs just $763, or about 15% as much as New York City.

* Some of the most expensive and cheapest markets aren’t actually very far from each other. Fresno and San Francisco are only a few hours’ drive, but the cost to rent an apartment is wildly different ($942 vs. $4,084, respectively).

* The price difference in rents between the most expensive and cheapest cities is enormous. Many remote workers will likely end up with more money at the end of the month even if companies pay less based on local costs of living.”

https://howmuch.net/articles/the-cheapest-and-most-expensive-cities-to-rent-an-apartment-us-2021

#96 Jay on 03.23.21 at 5:29 pm

i haven’t gotten a single dollar from the government during this whole pandemic, yet ill be asked to pay high taxes the rest of my life to deal with it. My kids have no asked to be “saved” from this Pandemic yet will have no future to speak of because they were asked to sacrifice themselves for the greater good to save their grandparents.

We didn’t even get a chance to vote on how much money we needed to throw at this and what level of support we all needed. As said before, all this money just ended up in bank accounts and was not necessary. No one in government even has a rational thought anymore or tries to operate within a level of reason. Everything has to be extreme.

How do we stop this nonsense? The politicians who made the decisions and doctors and nurses who forced the shutdown so they didn’t have to be stressed should be taxed at a higher rate until its all paid back in full.

#97 Faron on 03.23.21 at 5:33 pm

#93 Billy Buoy on 03.23.21 at 5:20 pm

# 43 Sail Away

I’m sure you know this, and perhaps the notion was a philosophical one. But in case not:

Were you to put a loonie in your hand and stare at it while the debt fairy annulled all debt in some grand singularity meeting of matter and antimatter, that loonie would simultaneously grow in value and fade like Michael J Fox in BttF. Aside from currency, it’s very likely you own one end or another of debt unless you only hold hard assets. Careful what you wish for.

#98 wallflower on 03.23.21 at 5:35 pm

oy
#14 Mother Nature on 03.23.21 at 2:45 pm

You are such a d**k.
Garth is one of the rare ones: an adult.
He do what he do.

And we love what he do.
And the doogies.
We love those too.

#99 joblo on 03.23.21 at 5:42 pm

Lieberals been selling out Kanada to China since the 90’s.
There’s the bailout.

https://www.mondaq.com/canada/inward-foreign-investment/775610/chinese-investment-into-canada-balancing-openness-and-security

#100 Planetgoofy on 03.23.21 at 5:44 pm

“nobody seems to care.”
No kidding. Its the new normal.
Dont tax me cause I’m pretty well off. I’ve paid plenty already. I’ve been fiscally responsible my whole life. I don’t care to pay for Socks stupid polices. This is what happens when all that matter is getting re-elected. He used the fire hose effect. (Veteran’s need help…Socks “we can’t help you dudes right now” ya to busy hooking up SNC WE Bombardier)
There were other ways to deal with this pandemic. For one allow people the option to BORROW at dirt cheap rates we already have. Then you would have people only take the money they needed. Rather then free moola for everyone.
Yup you would have to take on more debt but your problems don’t become mine. Now I’m getting my fair share of this debt black hole.
I usually keep $500k around for emergency’s. I’ve had them with my business’s. Like law suts against bone heads. I sure don’t make my problems anyone else’s.
Maybe that makes too much sense…no?
There are many other things that could have been done but I’m out of time
Good one Garth.

#101 Guelph Guru on 03.23.21 at 5:53 pm

Your enthusiasm Garth is highly appreciated.
I think this is what will happen when you present the survey to MR. T.
Over beloved leader will momentarily halt the printing press where he spends all his time these days.
Glance over the sheet that you would send him with all our opinions.
Will be amazed why people would not want the free money he plans to send everyone.
Will utter a frown and toss the paper.
Restart the press.

#102 crowdedelevatorfartz on 03.23.21 at 5:54 pm

@#74 Nostradamos
“I am wondering if Captain Justin, Sugar Daddy, will ever utter “what have I done”? …

+++

Nah,
Too busy surfing the Net looking at the latest shoes in vogue.

#103 Trevor on 03.23.21 at 5:54 pm

Five months? If my math is correct, we’re headed for a May 31st election!

#104 IHCTD9 on 03.23.21 at 5:57 pm

#92 cuke and tomato picker on 03.23.21 at 5:19 pm
At the present rate our government is spending it will take every CANADIAN to give a little for us as a country to
resolve our debt. To turn this wonderful country around
will require all of us to do MORE. It can be done if we work together and make it a national goal to get CANADA
debt free by yes a covid 19 tax.
— —

What are you smoking? You can’t fix this. A Trillion in debt to be eradicated by a measly 15 million workers who are some of the most indebted people on Earth?

Get real, Trudeau has ****** Canada. The sooner you admit it, the sooner you can start making some good decisions.

#105 complicated on 03.23.21 at 6:00 pm

Well it seems that nobody cares about the debt. The average Joe thinks governments have unlimited money. But it will end really badly at some point..I am completely stunned at how much debt we added in 1 year and how little anyone is talking about it. We added 30 years or more of debt in 1 year and spending foolishly for the most part..giving money to many people who didnt need it. The central bankers low interest rate policy has pumped asset markets all over the world giving people the illusion of wealth..most people think they are geniuses but all they have done is stolen economig growth from the future much like governments. It will take us decades to dig ourselves out from this mess but the party will continue a bit longer..maybe another year or two or three…but the other side of the tidal wave is coming..

#106 AM in MN on 03.23.21 at 6:04 pm

#61 Faron on 03.23.21 at 4:08 pm
————————
#44 AM in MN on 03.23.21 at 3:31 pm

One defensive play for now is Bitcoin. No CB can print it, and the technology being developed around it for global payments and other banking services is truly breathtaking.
—————————

Puuump it. Pump it up!

——————————-

No need to, the money printers are doing that. I’m just offering advice.

Some big investment firm just took 10,000BTC off the Coinbase exchange today. That’s a hell of a buy.
Let’s see where things are in a year!

#92 cuke and tomato picker on 03.23.21 at 5:19 pm
At the present rate our government is spending it will take every CANADIAN to give a little for us as a country to
resolve our debt. To turn this wonderful country around
will require all of us to do MORE. It can be done if we work together and make it a national goal to get CANADA
debt free by yes a covid 19 tax.

———————————————-

That’s one option. The other is not to take the route of de-industrialization.

Most of what Canada exports is at high prices right now, some in record territory. The C$ could easily be on par with the US$ if it weren’t for the money printing, lockdowns, paying people not to work.

The country, through it’s voters, have the option to grow the economy in areas where there are global markets.

At the core of this is a need for hydrocarbon energy. Move up the foodchain through technology and there is very real wealth to be generated. You can choose a life of austerity, no children etc. in order to “save” the earth, but be honest about it…and tell the govt. unions to get on board with the austerity part!

#107 Penny Henny on 03.23.21 at 6:10 pm

Who do I have to vote for to get a free pony?

#108 Sail Away on 03.23.21 at 6:10 pm

#93 Billy Buoy on 03.23.21 at 5:20 pm
# 43 Sail Away

That’s funny….saying Debt doesn’t matter. It DOES matter to those that have a LOT of it…luckily I have none.

It’s like the extremely wealthy neighbour chiming in whenever he has a chance “Why does every one worry so much about money?”

It’s kinda ignorant to say either if you ask me.

Better to enjoy your hard earned worth quietly than make an ass of yourself with arrogant comments.

———-

That’s like saying religion matters.

It does if you choose to believe it matters. For others, it doesn’t matter. Is that also arrogant?

Play the game or don’t play the game. It’s a choice. Sometimes I choose to play the game, but usually I lean toward simplicity.

#109 Don Guillermo on 03.23.21 at 6:11 pm

#96 Jay on 03.23.21 at 5:29 pm
i haven’t gotten a single dollar from the government during this whole pandemic, yet ill be asked to pay high taxes the rest of my life to deal with it. My kids have no asked to be “saved” from this Pandemic yet will have no future to speak of because they were asked to sacrifice themselves for the greater good to save their grandparents.

We didn’t even get a chance to vote on how much money we needed to throw at this and what level of support we all needed. As said before, all this money just ended up in bank accounts and was not necessary. No one in government even has a rational thought anymore or tries to operate within a level of reason. Everything has to be extreme.

How do we stop this nonsense? The politicians who made the decisions and doctors and nurses who forced the shutdown so they didn’t have to be stressed should be taxed at a higher rate until its all paid back in full.
**************************************

As long as we have more “cuke and tomato pickers” than “Jays” in Canada, which we sadly do, things will never improve.

#110 Tarot Card on 03.23.21 at 6:13 pm

Thanks for the blog Garth
You did not make one comment today?

To all the people on here who think they have all the answers and complain endlessly.
I am just wondering have any of you contacted your MP and said stop the spending?
How many of you have started a petition to fight the government.
How many of you have started a political party?

In the end there is absolutely nothing you can do.
Think about…. if Garth does not run in politics anymore you have to ask why?
In the end you cannot change a dam thing so live with it.
And thats the way it is Tuesday March 23, 2022

#111 Penny Henny on 03.23.21 at 6:17 pm

#84 Zed on 03.23.21 at 5:05 pm
Spending has to come down, first thing first.

Reduce federal ministries to 12-15 from more than 25.

Reduce the OAS clawback to maybe $60’000 and completly gone at $90’000.

Modify federal civil servants’ pension to defined contribution (most people have this one).

Increase GST/HST by 2 points, minimum.

A special Covid tax on RE transactions, maybe 1% of the value (taken care by notaries/lawyers).

End income spliting of seniors, only fair since younger workers don’t have this previledge.

Remove 3/4 of the deductions from the income tax, that would simplify the returns.
///////////

Who are you to speak rationally on the interwebb?
I’m taking back your pass.

#112 Armpit on 03.23.21 at 6:20 pm

Three things I say today….

1.
“In olden times elections were fought on issues like fiscal management.”
– in Older times, the nation would revolt, and physically remove those in power.
————————————
2.
Even new home builders are joining the Realtor’s Scuzzy System of Blind bids

https://ottawa.ctvnews.ca/homebuilder-launches-online-auctions-for-new-builds-1.5340423

————————————————-
3.

Italy does not reciprocate Canadian Family Court Spousal/Child Support Orders.

SO…if you are getting done for Support and can relocate there – do it and you will have a “Sweet Life”

https://www.justice.gc.ca/eng/fl-df/enforce-execution/europe.html

#113 Tyberius on 03.23.21 at 6:32 pm

About the questions…

Why don’t we just take all the wealth from the wealthy and redistribute it much as they did in Russia circa 1918-20.
It worked out so well for them – well, a few of them (the ones in the Party).

Why don’t people learn a thing or two from history?

#114 Habitt on 03.23.21 at 6:36 pm

Best post ever. Thanks for your decency.

#115 Linda on 03.23.21 at 6:40 pm

#54 ‘Basil’ – hate to break it to you, but OAS has been subject to clawback for those with high enough incomes for literal decades. So the scenario where you lose OAS plus pay higher taxes is a reality. Clawback begins if your net income before deductions is $79,845 (2021 figures). Full clawback occurs if your net income before deductions is $129,075 (2021 figures).

#19 ‘Faron’ – I think you mean CPP. CPP is paid into – it is a defined benefit pension plan. OAS is not the same as CPP & is funded from ‘general government revenues’, plus is subject to clawback.

#116 Steven Rowlandson on 03.23.21 at 6:48 pm

“How do we possibly pay off $500 billion in two decades while still having a life?”

Sign over your yuppie palace to the government who will sell it to foreign investors to pay down debt and former yuppie palace occupants can live in their Honda Hiltons just like me and eat at the Sally Anne.
Am I close Garth?

#117 The West on 03.23.21 at 6:52 pm

Fantastic entry sir!

This one did not disappoint.

A pox on them all!

#118 Steven Rowlandson on 03.23.21 at 6:54 pm

Thanks for the poll Garth. Someone has to tell the truth to the government even if it hurts.

#119 A Dollar is a Dollar is a Dollar on 03.23.21 at 6:55 pm

Tax dollars from all sources at the same rate, after a standard personal deduction limit and deductions for children etc… No privileging of stock market, real estate or inheritance gains. All dollars are equal.

Tax income above certain amounts at an extra high level, just the way conservative Republican President Dwight Eisenhower did. Nobody “needs” to earn $250,000 after taxes. Maybe 90% rate makes sense, just like Dwight had it. That built the great American middle class of the 1950s. Remember those days? A distant memory now, sadly.

Tax all financial transactions a very small but consistent amount. Huge, very simple income source for all government and societal needs.

People who want to offshore their money have to go and live there as well.

Simple. Fair. Transparent.

(Now I’ll just wait to hear the roars of some people here saying, “NO, some dollars are more equal, just like white men are more equal than black women, etc.., etc…”. LOL.)

#120 Neo on 03.23.21 at 6:56 pm

Oh look at that. April 19th, 2021. The same day the Third “Harsher” Lockdown is going to start. What a coincidence….

#121 Dave on 03.23.21 at 6:58 pm

All the vote options listed equal the same thing, more government and more spending.

#122 Brock on 03.23.21 at 6:59 pm

Relax people: This too shall pass.
Remember, we all live a pitiful 80 or 90 years max on this earth.
Inflation, deflation, – it’s all the same.
Enjoy the time you have and don’t sweat the future, or the past.

#123 Bezengy on 03.23.21 at 7:02 pm

I suspect unity issues are next. No one wants to go down with a sinking ship.

#124 Blacksheep on 03.23.21 at 7:06 pm

Every body can relax.

Debts that cannot be paid back, will not be paid back.

Period.

#125 Gramps on 03.23.21 at 7:12 pm

So, in 1988, the conservatives wanted free trade…and 4 years ago, the liberals fought to keep it.
Personally, I have never liked it. Now we will have higher taxes, making foreign assembly lines more attractive yet.
This won’t end well.
Btw, how is the UK doing?

#126 Drill Baby Drill on 03.23.21 at 7:13 pm

So we will end up with a federal vote during a pandemic?

#127 Another Deckchair on 03.23.21 at 7:27 pm

Garth;

First poll I’m not going to bother to complete.

I think I’ve given up. I’m letting my current business die; we’ve got (in theory, at least) 50% more invested than required; a nice little house that we don’t need the money from.

Why work? We’ve gone from science/engineering basis for society, to based on playing make-believe. I’d love to work; but for some reason, I don’t care anymore. I’m beginning to believe that, rather than putting your efforts in and creating, those who milk society are the ones who are right.

Meh.

#128 Ponzius Pilatus on 03.23.21 at 7:32 pm

#96 Jay
How do we stop this nonsense? The politicians who made the decisions and doctors and nurses who forced the shutdown so they didn’t have to be stressed should be taxed at a higher rate until its all paid back in full.
—————–
Me thinks there should be special tax on stupid comments like this one on this blog.
Budget would be balanced in no time.

#129 Sic Transit Gloria on 03.23.21 at 7:34 pm

I miss the days of the Progressive Conservative party and feel like this blog is the last vestige of those days. We need social liberalism and fiscal conservatism.

#130 TurnerNation on 03.23.21 at 7:34 pm

See how the game is played? The “Conservative Party” announced they’d sold out to Globalists’ climate hijinx. Support at once evaporated What comes out next? This. (I swear the A.I. is pumping this out for effect.)

-“Conservatives demand national plan to end COVID-19 restrictions | CBC News (cbc.ca)”

—Economic Lockdowns: Over 4.3 million people in Alberta. 280 of them in hospital the the province remains locked down.
Probably, gathering fodder for UBI cases. What happens if a sliver more people are in hospital? Yup never ending rolling economic lockdowns.

https://edmontonsun.com/news/local-news/covid-alberta-hinshaw-restrictions/wcm/05428347-f1f6-46de-81d7-5e1637509cf8
But moving forward can only happen if COVID-19 hospitalizations are below 300 and dropping, Health Minister Shandro said at a news conference. There were 280 people in hospital as of Monday.

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

Learn how the game is played lads. I’d said I expect that all spending at the level of cities will be on the Poverty Industry Complex. How about all those empty HOTELS?
– At Toronto airport strip they were turned into self-pay Quarrantine Punishment Kamps for returning citizens.
– In Downtown TO at least two were converted into permanent Homeless kamps.
– In the USA? Big dollars for Friends of the Party I am sure. Playing The Long Game. Very profitable.

“The Biden administration has awarded ICE an $86.9 million contract for hotel rooms near the border to provide temporary shelter and processing services for families who have not been expelled from the United States but have been placed in immigration proceedings for their removal.”
…………………………………………….

– Life in a Former First World Country, one divided by virtual Berlin Walls.

Globe says Air Canada’s flight cutbacks hard on regions
The Globe and Mail reports in its Tuesday edition that Canada’s airlines have suspended routes to several cities, cancelled thousands of flights and, in some cases, stopped flying altogether in response to the COVID-19 pandemic and government travel restrictions. The Globe’s Eric Atkins writes that people who rely on air travel to get to work face a tough truth: You cannot get there from here. Before COVID-19, Derek Barrett flew to Fort McMurray via Toronto and St. John’s. These days, the same trip includes switching planes and waiting for connecting flights at airports in between Halifax, Montreal and Calgary, sometimes overnight. He has fewer flights to choose from, more connections and much longer waits between legs. Air Canada has suspended all flights to 25 of its 60 domestic airports, including Prince Rupert, Fredericton and Yellowknife. Many cities and towns, including Sydney, N.S., are left with no commercial airline service. WestJet Airlines has suspended flights to Moncton, Quebec City and other places, leaving Halifax as its lone destination in Atlantic Canada. © 2021 Canjex Publishing Ltd. All rights reserved.

#131 Billy Buoy on 03.23.21 at 7:38 pm

#108 Sail away

I love simplicity too but you missed the point.

I’d assume most with a high debt do care just in case this Fed uped world is allowed to head south financially.

Us without debt can be flippant about it. Easy statement when you got the means to be flippant.

Btw, the religion comment was a lovely diversion from the point of my initial post. Are you a politician?

Keep deflecting like that and they will appoint you PM.

Clap clap.

#132 Billy Buoy on 03.23.21 at 7:40 pm

#108 Sail away

I love simplicity too but you missed the point.

I’d assume most with a high debt do care just in case this Fed uped world is allowed to head south financially.

Us without debt can be flippant about it. Easy statement when you got the means to be flippant.

Btw, the religion comment was a lovely diversion from the point of my initial post. Are you a politician?

Selfishly take out of the post what concerns your ego, divert the question and tell us all your personal tastes. Well done.

Keep deflecting like that and they will appoint you PM.

Clap clap.

#133 Beetman on 03.23.21 at 7:44 pm

More taxes is not the solution. Start cutting spending starting at the P M’s salary. We cut and cut and cut even it means cutting into the bone. Than we learn to live within our means.

#134 Shirl Clarts on 03.23.21 at 7:54 pm

I’m pissed at how useless the Conservative party is right now. They botched the last election, and they are blowing it now, big time. O’toole, if you are reading this blog, these are your talking points. I mean, it’s practically gift wrapped for you! Your only job between now and the election is to get Canadians pissed off at Trudeau. And with all the ammo he’s handed the Cons in the last 6 years, that shouldn’t be too difficult.

#135 Ponzius Pilatus on 03.23.21 at 7:55 pm

#123 Bezengy on 03.23.21 at 7:02 pm
I suspect unity issues are next. No one wants to go down with a sinking ship.
————-
All the rats have left already.
Living in Mexico now.
“when the going gets tough, the rats leave”

#136 Jake Albion on 03.23.21 at 7:57 pm

I would support a 10% surtax on all government, foreign government pensions paid in Canada above $40,000 a year net income. Many government workers got subsidized by paying for their pension contributions by taxpayers all through their working lives.

Also, an annual $200 a year federal pension registration fee and an annual #200 federal pension healthcare pension tax. An annual 10% tax on public workers union dues.

Also, RRSP contributions above a $8,000 a year should be capped to receive a maximum 25% tax rate back not the 31%+ from higher income thresholds. Also, an 10% extra tax on RRSP, RRIF, RESP, TFSA, all registered accounts transfer fees and annual RRSP administration fees.

An 18% GST/HST in phased in 3 years I would also support and a 1%-2% federal real estate transaction tax. An extra 10% tax on real estate commissions above $20,000.

#137 the Jaguar on 03.23.21 at 8:02 pm

Most of the those questions were a slam dunk for me, Garth. The one about a Covid tax or increase in HST I found a little more complicated. It’s a hell of a mess we have got ourselves in, and the way out is complicated.
Our friend here ( #123 Bezengy on 03.23.21 at 7:02 pm) makes a good point. When the current crisis is over another may well emerge.

I always liked the idea of a consumption tax in a ‘user pay’ kind of way. The idea that people should try to consume less, reduce their footprint, its impact on the natural world, etc. It just seems so damn sensible.
Unfortunately it wouldn’t represent the majority of people who consume with abandon and fail to understand that sometimes ‘less is more’.
Seems a foregone conclusion that anybody who took a hand out without truly needing a hand up won’t be stepping up to a repayment schedule. Or am I just cynical?
How about a new lottery to repay it? We could call it ‘Lotto Covid’.
Vice has such irresistible appeal to the masses. Always a winner. Maybe throw in a case of ‘Wild Turkey 81 Proof Kentucky Straight Bourbon’ in a bonus draw each month.
We’ll be on the right side of the ledger in no time.

Thanks for the greeting, BillyBob. I’m thinking about St Petersburg.

#138 Leftover on 03.23.21 at 8:03 pm

#87 Don Guillermo

“Love the Caribbean Islands…”
_____________________________

Heaven on Earth and I agree – kind of small for year-round life. The point is for the price of a beater in Toronto, or Vancouver or, for that matter, Kitchener, you can buy a tropical paradise and still have money Leftover (get it) for a modest life somewhere in Canada during the summer.

Some of us had to work pretty hard to get there, but now it’s such easy pickens that you’d have to be daft to turn down the opportunity.

#139 Just do it on 03.23.21 at 8:04 pm

Keep it simple:
-15% Hst. Happy to pay…
– inheritance tax. Why not? Makes the most sense.
– Tax residential properties but increase the RRSP contribution room to encourage more people to save for retirement.

#140 Sail Away on 03.23.21 at 8:12 pm

#132 Billy Buoy on 03.23.21 at 7:40 pm
#108 Sail away

…you missed the point… flippant…lovely diversion…politician…Selfishly…ego…divert the question…Keep deflecting like that…

Clap clap.

————

My goodness.

#141 Dr V on 03.23.21 at 8:19 pm

1) yes
2) Now
3) neither
4) yes
5) yes
6) hmmmm
7)already are
8) no
9) yes
10) pox

#142 crowdedelevatorfartz on 03.23.21 at 8:30 pm

@#119 A $ is a $ is a $

“Now I’ll just wait to hear the roars of some people here saying, “NO, some dollars are more equal, just like white men ….”

++++

Nah.
You’re the only person stupid enough to say that….

#143 Nonplused on 03.23.21 at 8:31 pm

“(8) Should we hike taxes on the wealthy (over $250,000 income; over $1 million net worth)?”

We already have wealth taxes. They are called property and capital gains taxes. Also any income generated by the “wealth” is already taxed too. So there are 3 levels of taxes on “wealth” already.

Wealth is not money and is very difficult to tax. Let’s look at Jeff Bezos, richest man in the world sometimes. Almost all of his wealth is in Amazon stock. But Amazon has never paid a dividend, instead it reinvests all of its’ earnings into growth. (Whether Amazon net-net creates jobs can be debated, but the company sure has grown.)

So let’s say the US government imposes a 2% wealth tax on Mr. Bezos. Where is he going to get the money? Well, I can only think of 2 ways, either Amazon has to start paying a 3% dividend or Bezos has to sell 3% of his holding every year. (Why 3% and not 2%? Because the dividends and capital gains are already taxed so he has to raise enough money to pay those taxes too.) Wealth is not money.

Taxing the wealthy (those earning over $250,000/year) won’t be enough. If higher income taxes are the end game they will have to raise taxes in all brackets, not just those earning over $250,000/year. This will have predictable economic consequences, as less disposable income across the board will mean lower economic activity, as well as lower standards of living.

There is, unfortunately, only one way out of unpayable debt, and that is to not pay it. Governments have 2 options available to them, default like the rest of us, or inflate it away. It’s going to be number 2 in my opinion.

Central banks may say they are omnipotent and can set rates under any circumstances without a repeat of the ’80’s style inflation, but they are wrong. Volker didn’t raise rates to 15% because he felt like it. He had no choice if he wanted to put the inflation genie back in the bottle. But I don’t think there is any stomach for that today.

So here is my economic formula theory of the week:

Fi = D/GDP

where,

Fi = future inflation
D = deficit, all levels of government
GDP = GDP

The theory being that any government deficit must be met with more money. When the deficit is tolerable, inflation is therefore tolerable. But what we just did? Whew, I tremble to think about it.

#144 crowdedelevatorfartz on 03.23.21 at 8:36 pm

@#110 Tarot Card.
“In the end you cannot change a dam thing so live with it.
And thats the way it is Tuesday March 23, 2022”

+++

Did I miss a year or are you making a tarot Card prediction?

#145 Faron on 03.23.21 at 8:36 pm

#115 Linda on 03.23.21 at 6:40 pm

#19 ‘Faron’ – I think you mean CPP. CPP is paid into – it is a defined benefit pension plan. OAS is not the same as CPP & is funded from ‘general government revenues’, plus is subject to clawback.

Ah, thanks for pointing that out.

#146 leebow on 03.23.21 at 8:37 pm

#113 Tyberius

Now that’s selective memory. You inadvertently omitted the part where rich Russian people were ripping off poor Russian people and resisted change.

Look, if you are fortunate, you have to pay back to the society that made you the fortune. You can pay back in good governance, taxes, charity, job creation, skill transfer, whatever. If you don’t give back – you get pitchforked. That’s what history teaches us.

Over the last so many years we were maximizing wealth. Poor people are wealthier today than rich people were 150 years ago. They have better food, better health care, better entertainment, etc. But happiness is missing. Now, dont’ get me wrong. Top countries in the happiness index are not poor. But Finland is #1 with roughly the same GDP per capita as Canada in #14. They drink more, though. That helps.

I think instead of pogy, people need structure and belonging. People need jobs or some psychological bypass. May be the Matrix. In the movie it almost worked, so there is that.

#147 Barb on 03.23.21 at 8:41 pm

The more I see T2s name, the more I wish the ghost of Ralph Klein would be PM.

#148 Nonplused on 03.23.21 at 8:43 pm

#36 Richard L on 03.23.21 at 3:20 pm
“Borrowing money and forcing children who are not able to vote (or not yet born) to pay it off is the most selfish thing we can do. Unfortunately, that is exactly what we will do.”

Nope, we won’t. They won’t be able to pay it so they will not pay it, plain and simple. It is either default or inflation.

#149 Adam on 03.23.21 at 8:44 pm

Summary: Garth wishes he could go back to 1988 when things made sense.

#150 Ken on 03.23.21 at 8:46 pm

(1) Do you worry about the growing federal deficit and debt?

No

(2) When should Ottawa make deficit control a priority?

Never
(3) Should Canada have a Universal Basic Income (UBI)?
Yes, it’s a human right

(4) Should federal spending be cut to reduce the deficit?

No
(5) Would you support cuts to transfer payments like child care or Old Age Security (OAS)?
Yes

(6) Should business subsidies be cut, even if it endangers jobs?
Yes

(7) Should retirement benefits be reduced based on income, to reduce the deficit?

No
(8) Should we hike taxes on the wealthy (over $250,000 income; over $1 million net worth)?

No
(9) Would you support a Covid sales tax or more HST to fight the deficit?
Yes

(10) What is your federal voting intention?

Liberal

Trudeau has done a great job overall with COVID response. I loved the CERB benefits.

#151 Nonplused on 03.23.21 at 8:47 pm

#43 Sail Away on 03.23.21 at 3:31 pm
Debt is a fiction. Consider for a moment that all worldwide debt was eliminated overnight- what would happen?

The sun would still rise, the earth would still turn, and your dog wouldn’t care.

Don’t worry too much about irrelevancies.

———————————–

Money is also a fiction. But when I lend my money to someone else I sure as heck expect it back or I would just buy stuff instead of lending it out.

#152 Alphonse Kehaulic on 03.23.21 at 8:51 pm

All a sideshow to distract from the fact that your way of life, like the way of life in other First Whirled Countries, is being dismantled in baby steps.

Do you really believe T.O. will be out of the Grey Zone™ come end of June? I’ll come back here July 1st and you can tell me how your barbecue parties are going.

Just 28 more days folks!

#153 Sunny Daze on 03.23.21 at 8:59 pm

Completed the survey and I don’t think anything that I voted for will happen.

There is just no way anything can change. It’s just plain impossible without bankrupting the masses.

This blog just doesn’t capture the true nature of the indebtedness of households.

#154 Nonplused on 03.23.21 at 9:03 pm

#81 leebow on 03.23.21 at 5:00 pm

“You guys still don’t get it, do you? @ 6% a month appreciation just one house will be a trillion in 20 years. We’ll sell a cul-de-sac and pay off all debts, domestic and foreign.”

——————————–

Well, that is exactly what happened in Zimbabwe, except for the foreign part. And the flip side was that you needed a trillion to buy a house.

Government debt always ends the same way. It can’t be paid back, so it isn’t.

And taxation isn’t the answer. If the government could raise taxes to the extent required, there should never be a structural deficit.

#155 meslippery on 03.23.21 at 9:07 pm

Wealth disparity growing. Incomes stagnant.

———————–
Thank you Free Trade and offshoring.
How’s that working for you?
If we had a strong middle class to tax we would
be in a better place. What we have is 40% of Canadians don’t pay income taxes, which means someone else is picking up the bill or not.

#156 Nonplused on 03.23.21 at 9:15 pm

#107 Penny Henny on 03.23.21 at 6:10 pm

“Who do I have to vote for to get a free pony?”

Me! Ponies can be had for $500 so I could swap ponies for CERB and save a bunch right there.

#157 Nonplused on 03.23.21 at 9:18 pm

#110 Tarot Card on 03.23.21 at 6:13 pm

“if Garth does not run in politics anymore you have to ask why?”

Jeez, hasn’t he done enough?

#158 Ponizius Pilatus on 03.23.21 at 9:18 pm

#147 Barb on 03.23.21 at 8:41 pm
The more I see T2s name, the more I wish the ghost of Ralph Klein would be PM.
————–
Yeah, I remember him getting drunk and then throwing coins at panhandlers.
My favorite was Rene Levesque.
The comb over and the ever present cigarette.
Classic.

#159 Mick McClean on 03.23.21 at 9:19 pm

The Canada Pension Plan and OAS are an absolute disgrace. How many seniors are we willing to add to those already living in poverty? BIL’s CPP went up to $1,145 per month (a $10 raise) and that’s on the high end, generally CPP averages out to about $700 as Garth has pointed out before. OAS is $615. Most seniors receive less than CERB. Oh and if you do manage to set yourself up with a RRIF and pay yourself a measly pension you won’t get any of that GIS or any other benefits such as Doug Ford’s pathetic Dental Plan for Seniors because somehow the Powers that Bleed think you’re a rich couple of your make over $35,000 as a couple.

#160 Bert on 03.23.21 at 9:19 pm

Bonds are rising again. Yields are falling. US 10-year back to 1-1.5%? Growth could outperform yet again.

The re opening trade is wildly extended. Could consolidate for years…

#161 Nonplused on 03.23.21 at 9:25 pm

#136 Jake Albion on 03.23.21 at 7:57 pm
I would support a 10% surtax on all government, foreign government pensions paid in Canada above $40,000 a year net income. Many government workers got subsidized by paying for their pension contributions by taxpayers all through their working lives.

————————————-

Government workers got the deal they negotiated, and they pay tax. Jeez, things are really starting to look like an experiment where you put too many mice in the cage and not enough food. We are all lashing out against everyone with the line “tax them more (but not me)!”

#162 Doug t on 03.23.21 at 9:25 pm

104 IHCTD9 on 03.23.21 at 5:57 pm
#92 cuke and tomato picker on 03.23.21 at 5:19 pm
At the present rate our government is spending it will take every CANADIAN to give a little for us as a country to
resolve our debt. To turn this wonderful country around
will require all of us to do MORE. It can be done if we work together and make it a national goal to get CANADA
debt free by yes a covid 19 tax.
— —

What are you smoking? You can’t fix this. A Trillion in debt to be eradicated by a measly 15 million workers who are some of the most indebted people on Earth?

Get real, Trudeau has ****** Canada. The sooner you admit it, the sooner you can start making some good decisions.

Ignore the Cuke/tomato picker – they live in Mr. Rogers
Neighbourhood with full on rainbows and unicorns

#163 Wrk.dover on 03.23.21 at 9:38 pm

I’ve been too busy to follow up on billy bob and the drama, but just want to interject on the survey, while I have a moment.

Two days ago the WEF link said $769,000 USD assets puts an individual in the top 1% of the worlds wealthy.

Should there be a hefty tax on making that amount in four years? HELL YES!

It’s the old Elizabeth Warren thing about the masses float the world, whilst the top 1% make serious coin…..

#164 theoryAndPractice on 03.23.21 at 9:43 pm

#48 Anna on 03.23.21 at 3:32 pm

May I ask how much tax do you pay annually?

#165 Scott Cordiar on 03.23.21 at 9:45 pm

Why don’t we tax debt, mortgage debt, car loan, personal loan debt, HELOC debt, reverse mortgage debt etc.

A 1% to 2% annual tax on debt could easily raise $25 to $50 billion a year plus GST/HST hike each 1% point adds another $10 billion a year so $75 to $100 billion a year total new revenue, taxes raised each year. These are taxes will keep growing.

#166 Ustabe on 03.23.21 at 9:46 pm

#140 Sail Away on 03.23.21 at 8:12 pm

#132 Billy Buoy on 03.23.21 at 7:40 pm
#108 Sail away

…you missed the point… flippant…lovely diversion…politician…Selfishly…ego…divert the question…Keep deflecting like that…

Clap clap.

————

My goodness.

Yes, my goodness indeed.

Folks are under a lot of stress, each one copes as best they can. The rest I don’t know. Angry, angry man tho…

At least most everyone is now seeing the Conservative Party of Canada as I have been preaching on here for years…and getting grief for it.

#167 Gary C on 03.23.21 at 9:46 pm

Looks like the MAVERICK party will be picking up a lot of
Alienated Conservatives in Western Canada. Several people I know who have never joined a political party are
now signing up, especially after the Conservative Convention last week.
The Bloc Quebec Croix will now have a Western Bloc to keep them company, “Eat your heart out Mad Max”

#168 willworkforpickles on 03.23.21 at 9:49 pm

The best any North American can hope to do within this last decade of sovereignty is live as best you can until your life is taken from you.
None will escape…not the richest…not the poorest.
There is no solution in the poll…long term or short.

#169 Km on 03.23.21 at 10:11 pm

@mother nature
I just ate a very large chocolate bar to help relieve my pms. I suggest you try it or perhaps a large glass of wine or both … I am personally going for both. Or perhaps do not read the blog, plenty of places you could be spending your time, whatever works for you.

#170 Ponzius Pilatus on 03.23.21 at 10:15 pm

My guess is that about 81.5% will vote for conservative.
If I win a weekend guest blog for closest guess, I’ll donate it to CEF.
He’s my working class heroe.

#171 windjammer on 03.23.21 at 10:20 pm

It wont be an economic crash that destroys the country it will be an environmental one. Canadians must become eco activists to preserve what is left. With a sagging economy the little interest in the environment will wane.
An economic mess handed off to the population of the future will be nothing in comparisson to handing off a depleted ecology. We cant even get the government here on the west coast to put a halt to herring fisheries as they teeter back and forth on the brink of collapse. Peace be with you

#172 willworkforpickles on 03.23.21 at 10:24 pm

Debt Kills !
Unending escalating Inflation via endless stimulus – (Endless stimulus? you best believe it and right to the end) will turn stagflationary when it ceases to help support the common man and is only able to service a compounding interest on the spiralling debt.
Unheard of Inflation…slow starvation…and a fallen behind technologically inferior US unable to defend itself or even left able to print enough money to pay even the interest on the interest of the national debt…. and…well… the rest you don’t want to hear…not here on this blog.

Smooth talk/feel good talk is all anyone listens to anymore.

#173 Ponzius Pilatus on 03.23.21 at 10:30 pm

#162 Doug t on 03.23.21 at 9:25 pm
104 IHCTD9 on 03.23.21 at 5:57 pm
#92 cuke and tomato picker on 03.23.21 at 5:19 pm
At the present rate our government is spending it will take every CANADIAN to give a little for us as a country to
resolve our debt. To turn this wonderful country around
will require all of us to do MORE. It can be done if we work together and make it a national goal to get CANADA
debt free by yes a covid 19 tax.
— —

What are you smoking? You can’t fix this. A Trillion in debt to be eradicated by a measly 15 million workers who are some of the most indebted people on Earth?

Get real, Trudeau has ****** Canada. The sooner you admit it, the sooner you can start making some good decisions.

Ignore the Cuke/tomato picker – they live in Mr. Rogers
Neighbourhood with full on rainbows and unicorns
————–
Lay off cuke and tomato picker!
Like me, he/she will soon be putting out cuke and tomato plants, and in a few months we will munch on fresh, delish organic veggies, while you guys will be eating crow.

#174 Don Guillermo on 03.23.21 at 10:32 pm

#135 Ponzius Pilatus on 03.23.21 at 7:55 pm
#123 Bezengy on 03.23.21 at 7:02 pm
I suspect unity issues are next. No one wants to go down with a sinking ship.
————-
All the rats have left already.
Living in Mexico now.
“when the going gets tough, the rats leave”
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

When idiots like you punch holes in the ship why would you expect someone else to stick around and patch it up for you?
_________________________________________
#158 Ponizius Pilatus on 03.23.21 at 9:18 pm
#147 Barb on 03.23.21 at 8:41 pm
The more I see T2s name, the more I wish the ghost of Ralph Klein would be PM.
————–
Yeah, I remember him getting drunk and then throwing coins at panhandlers.
My favorite was Rene Levesque.
The comb over and the ever present cigarette.
Classic
**********************************
Ralph had an alcohol problem. You might want to read about his background and compare it to your shiny obnoxious crown prince. What’s Mr. Privileged, Blackface, Gropy PM’s excuse? Every advantage in the book. Ran in the big circles, unlimited access to education everything in life handed on a silver platter. Total complete fail!!!

#175 Wrk.dover on 03.23.21 at 10:33 pm

Sales tax increase? Hell yeah, gets me and my ilk to pitch in.

Why did Harper give me a discount anyhow?

#176 Ken on 03.23.21 at 11:00 pm

“‎We must make our choice between economy and liberty or confusion and servitude…If we run into such debts, we must be taxed in our meat and drink, in our necessities and comforts, in our labor and in our amusements…if we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy.”
― Thomas Jefferson

#177 leebow on 03.23.21 at 11:03 pm

#154 Nonplused

Don’t be a party pooper. At least I have a plan.

#178 Bob The Cat on 03.23.21 at 11:14 pm

5 years ago my friend told me “man, I’m gonna take all your money and buy a house for you. It seems you don’t understand that the earlier you get in the more money you’ll make”
I laughed at him :)
How stupid of me. He bought his house in Mississauga for 765K. With few small renos (that cost him about 50k), his house almost doubled in price. In 5 years….
On the other hand, my savings and B&D portfolio grew 400% (mostly because of the savings). But I am noooowhere near where my friend is in equity. And yes, I paid all this time rent, which is about 96000. So, who’s the smart guy now?
Honestly I don’t think the houses will go down. Not to the pre-pandemic levels. I made some calculations… To be able to buy a house where my friend is (same condition as he did), I should be taking a mortgage that is equal to what he took when he bought his!
The lesson has been learned: if you can buy real estate, then buy! It’s not gonna be a short-time investment, and you have to be ready to sell it longer than expected in times like a year ago. But, the leverage makes all the difference! Be smart – buy early! Ignore the rest of the noise!
P.S. I wonder if this comment will get posted…

#179 Chuck V on 03.23.21 at 11:47 pm

So disenchanted. There are no options. All I want is a government built on 2 principles. 1. Transparency – show us where the money goes. If you want more $ for kids brain surgeries or to help people in need then I’m happy to pay, but if it’s to give cash to a couple of wiennie brothers for some useless charity, or to install $4000 toilets in the PM’s cottage, then count me out. 2. Accountability – if someone in government does something wrong by all moral standards it should be known and they’re out. I think Garth you were kicked out because of #1. Such a sad state of affairs. The wealth tax is disturbing (we already pay a little in the form of property tax based on the ever increasing MPAC values). If this were the case the government would have incentive to let property values go even higher to then collect more taxes.

#180 Fortune500 on 03.23.21 at 11:53 pm

A tax on profits from the sale of your primary residence. Starting at 10% at one year of holding and reducing to 1% at five years of ownership and beyond. This would reduce the flipping and change the psychology of it being a ‘tax free investment’. At the same time it won’t punish or irritate the giant homeowner and baby boomer voting blocks too much. We have to go there. I wish we had principled and brave leadership.

Help us Trudeau! You need to get woke about this. Check your homeowner privilege. Don’t be so fragile. Insert postmodern meme here …

#181 JWD on 03.24.21 at 12:09 am

Shame we can’t vote for a party and have a separate voting ballet for a new PM.

#182 willworkforpickles on 03.24.21 at 12:11 am

#66 Gord

I tend to ignore those who come on here to say debt creation from money printing (QE) served to keep int. rates low and then lower over the past decade or more (true) and since it has, can go on forever without any worry (false)…its the way to go and keep on going (false)…

Now if i said it once i said it a thousand times (here) (its been a lot) When money printing (QE) was added to the national debt and still amounted to less than the annual GDP intake overall… it served in getting interest rates to trickle down, but wouldn’t to infinity as many here erroneously believed it would and still do.
Years ago i said QE would eventually increase the national debt to where the debt owed becomes much higher than annual GDP intake and interest rates would then begin to trickle up.
As for the reverse effect that many don’t get or want to…we have arrived and it still isn’t sinking in on a grand scale.
Some who are starting to get it a very little are saying Oh…but its too late, higher interest rates will bankrupt many and the country. So they can never raise rates now. So they say. So they say.

but….what’s really too late is for money printing to end.

And money printing that is tipping an unbalanced debt to GDP ratio into a debt death spiral that can only be answered with ever rising rates from the inflation it is and will bring. And the demand of debt holders losing confidence in continuing to purchase more debt without big rate increases.
Eventually none of it (new debt creation) will go to support or anything else but to pay interest on interest payments on the national debt only.
Canada is not immune of US int. rate policy. It will keep pace with US rates life and death in lock step for its own economic survival.

#183 Don Guillermo on 03.24.21 at 2:09 am

#162 Doug t on 03.23.21 at 9:25 pm
Ignore the Cuke/tomato picker – they live in Mr. Rogers
Neighbourhood with full on rainbows and unicorns
****************************
Priceless

#184 Phylis on 03.24.21 at 5:17 am

Sometimes I think Garth’s pole is actually for measuring whether or not the lessons are sinking in. Based on some comments, I would have to conclude more work is needed. (Self included)
Anyways, extra question, how much of the debt is actually rolled over as mention by some? So we tax and spend at a deficit and carry a debt. I’m told we will never pay off the debt, since the trick is to only service it. I take that as the rolling part. Right now the rolling is cheap, tomorrow, not so much. Maybe I’m asking, what is the duration of our debt?
(These things get me up early in the morning, haha.)

#185 David W2 on 03.24.21 at 5:45 am

Interesting ideas but the government cut the public sector a few years back under the Harper regime and has been under staffed ever since. All the new money going out is going to the pockets of regular citizens and business subsidies which is leading to the $400B deficit. Ending Covid and these handouts will eliminate the gaping hole in finances.

To pay for the deficit, introduce a 2% Covid tax on purchases and tax inheritance as the older population, those 75 or older, benefit the most from lockdown as they were most at risk from Covid.

#186 Immigrant man on 03.24.21 at 7:14 am

Or you can just scale back ridiculously complicated regulations for the resource sector, build some goddam pipelines (east, west and south) and pay off the debt without any NEW taxes. Plus, you’ll even have some spare cast leftover for the 14$ 2x4s.

But I am just dreaming, right? The Canadian public would much rather see kids mining gold in Africa with their hands or some nice environmentally friendly strip mining in the rainforest (your “green” Nickel for your “green” EVs) than a new mining project IN Canada with a footprint of an average farm.

#187 Armpit on 03.24.21 at 7:20 am

Covid Tax, should have been implemented mid last year on all employment income, so everyone should feel the impact and get involved in the massive overspending.

It’s too late now. Any “Covid Tax” will be morphed in Forever as a regular tax.

#188 Luc Troiani on 03.24.21 at 7:36 am

A wealth tax is the only way to stop growing inequality when the return on capital is higher than economic growth. At this point I’m surprised that’s still up for debate.

The real debate should be around how to implement it.

#189 BillyBob on 03.24.21 at 7:37 am

#75 Faron on 03.23.21 at 4:47 pm
#136 BillyBob on 03.23.21 at 2:18 pm

The main reason I took leave of the comments for an extended period of time was I was letting myself get dragged into stupid exchanges

So you came back and, in your first comment, started hucking stones at the very persona you “didn’t” want to get dragged into exchanges with??? You may want to get your corpus callosum checked out pal.

You may as well stick around. Your choices are to leave and be remembered as a clown or stay and redeem your self as someone with more spine and less colourful hair.

Sorry Garth.

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

*sigh*

Chatting with an acquaintance of 40+ years, who happens to head up the department you have repeatedly and publicly claimed to work in, is neither hucking stones, nefarious, or threatening. It IS a remarkable statement on the smallness and interconnectedness of the world.

Your disproportionate lash-out only confirms your discomfort with the thought of being associated with some of your own words. That’s your problem, not mine. But let me reiterate, I have absolutely no interest in linking poster to person publicly. I have never, and would never, post private details about someone online that they had not already freely volunteered.

I enjoy a well-crafted burn like the drunken tirade from Wrkdover. It doesn’t offend, it makes me smile and do a slow-clap in appreciation of the originality. In other words I don’t take it seriously.

But this is a social skill you seem to lack entirely. Forget about BillyBob, I mean the way you interact with anyone you disagree with. I’ve belatedly realized from your comments you’re actually quite serious in your venomousness. That’s just boring, albeit pathological.

And it obviously just bores everyone else here. Outrageous fake conflicts can be amusing, but real grudges are just pathetic. So…drama off.

Time to move on mate.

https://www.amazon.com/Subtle-Art-Not-Giving-Counterintuitive-ebook/dp/B019MMUA8S

#190 Immigrant man on 03.24.21 at 7:39 am

Absolutely in favour of trimming the public service sector. A good 60% trim should be a good start. I happen to know some people working or shall I say “working” on the inside. The waste that goes on in the gov’t run agencies is epic! The acceptable level of laziness is insane. And yes, solid bulletproof job security and guaranteed raises.

But of course I am dreaming again. It’s hard to go after the public sector lazies cuz there are sooo many of them that they are a sizeable portion of the voter base! If it was up to me, only those who are net contributors to the gov budget would have the voting rights, but I am dreaming of course.

#191 Damifino on 03.24.21 at 8:24 am

#181 JWD

Shame we can’t vote for a party and have a separate voting ballet for a new PM.
—————————

The Americans are able to do something similar. It has often not worked out so well. But at least they have three separate, functioning branches of government. You could argue that we in Canada also have three:

The crown (utterly irrelevant)
The senate (largely a joke)
The commons (whose majority leader is de facto king)

Yep, a shame. But that will be reality for as long as I’m around and probably much longer. Roll with it.

#192 willworkforpickles on 03.24.21 at 8:27 am

Correction: I left something out in that last post.
“Now if i said it once i said it a thousand times (here) (its been a lot) When money printing (QE) was added to the national debt and still amounted to less than the annual GDP intake overall”
It should have said: …When money printing (QE) was added to the national debt and the interest paid annually on that debt to service that debt still amounted to less than the annual GDP intake overall…”it served in getting interest rates to trickle down, but wouldn’t to infinity as many here erroneously believed it would and still do.
Years ago i said QE would eventually increase the national debt to where the debt owed becomes much higher than annual GDP intake and interest rates would then begin to trickle up.”

#193 willworkforpickles on 03.24.21 at 9:01 am

#189 BillyBob
Wow – artfully worded compositions are just… a must read. Mentally stimulating. Garth should hold a contest .
The one voted with the best and most colourfully worded composition on any subject is awarded a guest blog on any subject relevant to greater fool site content.
Then we could see what some here are really capable of posting.

#194 Claire on 03.24.21 at 9:14 am

Those questions assume not much systemic change. We need to be more creative than that. How about solutions outside the box?

#195 Dharma Bum on 03.24.21 at 9:35 am

Everyone is wondering what is going to happen.

Well, I meditated on the future, and the truth appeared.

Here’s the deal:

The rich will get richer. Way richer.

The poor will get poorer. Way poorer.

The middle class will disappear altogether.

The government will become even more corrupt.

The rich will intensify their concentration of corporate holdings and power.

The poor will become virtually assetless as they trade their labour for borderline subsistence.

The government will be a total facade, merely carrying out the agenda of the ruling class – the rich.

Billions of people will finally realize that the last century of prosperity due to the trickle down effects of economic growth and technological innovation was merely a blip on the screen of time, creating a temporary illusion of hope.

#196 millmech on 03.24.21 at 9:38 am

The Conservative Party is playing it smart, make yourself unelectable so that the crap show that is coming down the pipe can not be blamed on you.
With interest rates on the rise everyone will be in a world of pain, you can try to tax more but people are tapped out. Most people live cheque to cheque with over half their pay going to housing now with interest rates at historic low levels.
The pain starts when the housing ATM runs dry, with no more money to pull out every year and payments rising then the hurt begins.
Most people believe that 20%-30% gains in real estate are totally sustainable and this is the new normal.
Math is hard!

#197 AM in MN on 03.24.21 at 10:06 am

#129 Sic Transit Gloria on 03.23.21 at 7:34 pm

I miss the days of the Progressive Conservative party and feel like this blog is the last vestige of those days. We need social liberalism and fiscal conservatism.
———————————————————–

There’s no such thing.

You can’t have fiscal conservatism with the Govt. as your daddy because of all the family breakdown.

Do you think the big debt pile comes from building too many roads? Big Military?

If you want the social mess that social liberalism brings, you’re going to pay for it. The idea that you can avoid this bill is a pipe dream of wealthy liberals, who are few in number.

Those being looked after by the govt. with free everything will be the ones most hurt when the big inflation comes, so encouraging more of it will ultimately lead to worse off lives for many.

#198 Faron on 03.24.21 at 10:10 am

#189 BillyBob on 03.24.21 at 7:37 am

That was a brief leave and a longwinded response for “not caring”.

“repeatedly and publicly claimed to work in”

Ha, nope. I don’t lie and I’m telling you that you are wrong. C’mon man.

#199 Louis on 03.24.21 at 10:26 am

I think UBI make sense only if it replace all other programs. Scrap wellfare, retirement benefit, unemployement insurance,… Everyone gets the same no matter your situation, even if you are working so it’s not killing incentive to work.

#200 Marc Perreault on 03.24.21 at 10:33 am

Why is it that nobody cares? Why is this country set to vote Trudeau in again? Is it lack of credible opposition? Out west here it appears that most do not like Trudeau. But I know he will for sure get voted in again as it seems the east just love him. I don’t get it.

#201 Dr V on 03.24.21 at 10:35 am

184 Phyllis – Garth’s what???

#202 Immigrant man on 03.24.21 at 10:37 am

#197
If you want the social mess that social liberalism brings, you’re going to pay for it.

——-
Golden words! Sure there was a lot of bad in the olden days. But one thing that was for sure good – is the nuclear family. Now there is a ton more fatherless children – and they basically grow up big babies. And babies in general want everything free and when they need money they “just go to the bank”.

#203 Sail Away on 03.24.21 at 10:40 am

#166 Ustabe on 03.23.21 at 9:46 pm

Yes, my goodness indeed.

Folks are under a lot of stress, each one copes as best they can. The rest I don’t know. Angry, angry man tho…

————

Yes, I don’t know why BB is upset. Maybe only one ‘angry’, though, not two.

Viewing some expensive tourist whale art in my home’s cultured surroundings would probably bring tranquility.

#204 Phylis on 03.24.21 at 10:50 am

#201 Dr V on 03.24.21 at 10:35 am
184 Phyllis – Garth’s what???
Xxxxxx
Darn it again. Maybe “pole’s” would have been clearer.

#205 Phylis on 03.24.21 at 10:54 am

Double darn.

#206 Sail Away on 03.24.21 at 10:55 am

#163 Wrk.dover on 03.23.21 at 9:38 pm

Two days ago the WEF link said $769,000 USD assets puts an individual in the top 1% of the worlds wealthy.

Should there be a hefty tax on making that amount in four years? HELL YES!

————

Why should there be a hefty tax in that case? How about a reasonable tax?

Nothing wrong with making money, bro. And in the case of last year, mine came from a combo of engineering corp compensation, US cap gains and corp-owned Vancouver real estate sale, on which I then paid huge tax in Canada. See that? Not only creating many high paying jobs for Canadians, but also bringing $ in from other countries!

Do you think I should pay more than 50%? If so, why, when if the same was spread over 5 wage earners, they’d be paying 30% tax and contributing less to the economy?

Purely objectively based on the facts without a social justice imperative, there is no reason for me to pay more tax.

Rebuttal?

#207 Linda on 03.24.21 at 10:59 am

#161 ‘Non’ – agreed! Would also note that ‘Jake’ may not intend for his proposal to be universal, but would point out that CPP & OAS are ‘government pensions’. In the case of OAS it is ‘fully funded’ by ‘the taxpayer’ or ‘the government using taxpayer revenues’, take your pick. So anyone with a $40K or higher income in retirement would potentially see those benefits taxed at a higher rate, not ‘just’ the ‘government workers’ Jake wants to target.

#208 KLNR on 03.24.21 at 11:10 am

Epic bellyaching in here today.
Beautiful day – maybe go outside and try to get out of this negativity loop you’re in.

Lots of good news out there, unfortunately the MSM makes you dig for it. if it bleeds it leads as they say.

#209 Faron on 03.24.21 at 11:11 am

#206 Sail Away on 03.24.21 at 10:55 am

Speaking of whale art. How was your homecoming quarantine or are you still on the Big Island?

#210 Doug Peters on 03.24.21 at 11:15 am

Luc Troiani, if you think giving taking away money from some and giving it to others, why don’t you ask your government to tell the bank of Canada to print, create more money and give each Canadian $10 million dollars.

This way, most Canadians are way more equal and you will be happy and all you and your friends, family members that have no clue about money, society, economics and how inflation, cost of living, taxes really works and their impact on jobs, crime, population in general. Your progressive, liberal, marxist, communist policies do not work, never will work. They are always a grand failure and we will all starve and live in poverty much more than now.

#211 Jane Goodale on 03.24.21 at 11:36 am

There should be an annual registration fee on all stocks, mutual funds, ETF’s, and all equity marketable, tradable securities. These investments pay much lower income taxes in the form of dividends and capital gains so it is doable.

It should be on a rising scale, $10 fee per $10,000 up to $250,000, then $15 fee per $10,000 up to $500,000, $20 fee per $10,000 up to $500,000 and finally a $25 fee per $10,000 anything above $500,000.

#212 Ponzius Pilatus on 03.24.21 at 11:37 am

#193 willworkforpickles on 03.24.21 at 9:01 am
#189 BillyBob
Wow – artfully worded compositions are just… a must read. Mentally stimulating. Garth should hold a contest .
The one voted with the best and most colourfully worded composition on any subject is awarded a guest blog on any subject relevant to greater fool site content.
Then we could see what some here are really capable of posting.
————-
Substance over form, always.
Not everything that shines is gold.

#213 LP on 03.24.21 at 11:37 am

I’m not educated or informed enough to have an opinion worth expressing today. So I’ll just go with my burning question that hasn’t been answered so far: What breed is that gorgeous dog? S/he has the most amazing eyes!

Japanese Akita. – Garth

#214 SoggyShorts on 03.24.21 at 11:39 am

#119 A Dollar is a Dollar is a Dollar on 03.23.21 at 6:55 pm
Tax dollars from all sources at the same rate, after a standard personal deduction limit and deductions for children etc… No privileging of stock market, real estate or inheritance gains. All dollars are equal.

Tax income above certain amounts at an extra high level, just the way conservative Republican President Dwight Eisenhower did. Nobody “needs” to earn $250,000 after taxes. Maybe 90% rate makes sense, just like Dwight had it. That built the great American middle class of the 1950s. Remember those days? A distant memory now, sadly.

Tax all financial transactions a very small but consistent amount.
*******************
So, tax every dollar equally except
1. The first ~20,000 earned
2. Money spent on kids
3. Incomes over “a certain amount”
4. All financial transaction

So… Not every dollar is a dollar, eh? You still want some dollars taxed differently, in a way that benefits you.

You should change your name from
A Dollar is a Dollar is a Dollar
to
The best tax is one that someone else pays!

#215 Damifino on 03.24.21 at 11:55 am

#200 Marc Perreault

Out west here it appears that most do not like Trudeau. But I know he will for sure get voted in again as it seems the east just love him. I don’t get it.
—————————–

I get it. Climate thumpers will always prevail.

Unless The State of Michigan is able to close Enbridge’s Line 5. Then there will be a serious Liberal thumping.

Ryan L. believes it will never come to that. I tend to agree. But it’s kind of refreshing to watch Ontario and Quebec sweat a bit rather that always Alberta.

#216 morrey on 03.24.21 at 12:03 pm

WFH .. .sounds like it’s sooo done.

“Goldman Sachs junior banker speaks out over ’18-hour shifts and low pay’
Younger staff in London follow revolt in US offices over remote-working conditions”

#217 Dr V on 03.24.21 at 12:11 pm

198 faron – I recall you stating you worked in climate science at UVic. Logically this would put you in the Earth and ocean sciences dept.

Is this not correct?

I would say that is more info than I would volunteer on
a ‘public’ blog’s comment section.

#218 Stone on 03.24.21 at 12:16 pm

#204 Phylis on 03.24.21 at 10:50 am
#201 Dr V on 03.24.21 at 10:35 am
184 Phyllis – Garth’s what???
Xxxxxx
Darn it again. Maybe “pole’s” would have been clearer.

———

Yup. Sometimes spelling and grammar are important. Wowzers.

Neither Pole or Pole’s are helping you here Phyllis. Just curious, what’s on your mind. Lol.

Thanks for the good laugh.

#219 Damifino on 03.24.21 at 12:17 pm

#213 SoggyShorts

Don’t let Mister Three-Dollar-Bill get under your skin. He occasionally trots in on the same tired horse yet tends to modify his stance on the tax-ability of specific dollars in spite of a moniker that shouts otherwise.

#220 SoggyShorts on 03.24.21 at 12:27 pm

#211 Jane Goodale on 03.24.21 at 11:36 am
There should be an annual registration fee on all stocks, mutual funds, ETF’s, and all equity marketable, tradable securities.

*******************
How? Just like a house, the value of a stock isn’t known until it is sold.

So when registration time comes, what is the value of a single share of VOO?

How would this work with losses?
If I buy $11,000 of a stock and the stock goes down to $10,000 I owe a fee on top of that? Thanks.

#221 Faron on 03.24.21 at 12:37 pm

#213 LP on 03.24.21 at 11:37 am

Japanese Akita. – Garth

Very cool and capable dogs. I did a ski trip into Lizzie Creek hut a few years ago (East of Lilooet Lake). It’s a long, hard 15 km day to get in there with the reward being a rudimentary cabin but unbelievably good skiing. A group with an Akita showed up after us and I was amazed the little pup slogged it that far in. Spent the days curled by the fire. Greeted everyone at the day’s end. Wonderful to have a dog pal in the wilds.

#222 SoggyShorts on 03.24.21 at 12:40 pm

With regards to the poll: I guarantee I won’t be wasting my time voting.
Now before anyone gets in a huff, or says I forfeit my right to complain if I don’t vote, the guy in my riding gets 70%+ of the votes every election and has no chance of losing so it really is a waste of my time.

This is all thanks to the last time I did vote where I trusted Trudeau on his platform of election reform and he promised to remove the first past the post system. Naturally, he ditched that plan the moment the system got him elected.

I don’t really regret my vote that time though since I then lived in a different riding and that guy won in a landslide too.

So between my vote not even counting let alone making a difference and it being just a total lottery because there is no accountability for campaign promises I don’t see the point.

#223 SoggyShorts on 03.24.21 at 12:41 pm

#219 Damifino on 03.24.21 at 12:17 pm
#213 SoggyShorts

Don’t let Mister Three-Dollar-Bill get under your skin. He occasionally trots in on the same tired horse yet tends to modify his stance on the tax-ability of specific dollars in spite of a moniker that shouts otherwise.

**********************
My favorite part is his sign off where he finishes with
“If you don’t agree with me you’re a Nazi”
What a tool.

#224 Faron on 03.24.21 at 12:44 pm

#217 Dr V on 03.24.21 at 12:11 pm

198 faron – I recall you stating you worked in climate science at UVic. Logically this would put you in the Earth and ocean sciences dept.

Is this not correct?

I see how that could follow, but it is not correct. I think I know who BB has me confused with though.

I agree that it’s easy to get complacent about potential negative effects of posting identifiably here. This has been a good reminder. But, posting identifiably puts some accountability on me which I accept.

#225 Jane Goodale on 03.24.21 at 12:46 pm

SoggyShorts, yes, we already pay registration fee annually for cars, boats, trucks etc. Losses are part of risk taking and capital losses tax laws still apply.

I agree, there should be one too for houses, condos, vacation properties etc. I think an annual registration fee would be a good idea for most property.

#226 SoggyShorts on 03.24.21 at 1:04 pm

#225 Jane Goodale on 03.24.21 at 12:46 pm
Ok, that covers the reason for registration of which I think there should be less, not more but that’s debatable.

What about the how? How is a stock that hasn’t been sold to be valued? I can post a share of GME at $1,000, but unless someone buys it that doesn’t mean it’s worth $1,000.

I’m also willing to bet that the cost of managing this tax and trying to enforce it would actually be higher than the revenues from the majority of people.

#227 Chris on 03.24.21 at 1:08 pm

I would say limit income tax rates to 22% flat tax on all incomes small to large and 25% HST/GST sales tax rate. Also, a 5% Canadian healthcare residents tax, CHRT on everything excluding food, clothes, transportation, fuel, gas, electricity. This way everyone pays something for using our healthcare system.

I would also put a 10% luxury sales tax on anything bought costing over $50,000. Anyone not living in Canada and owns real estate, should pay an annual $5,000 federal tax on each of their properties.

Also, an annual levy on mortgage insurance premiums of 10% per year and a 0.35% tax on mortgage renewal balances and mortgage insurance coverage.

For the lower income Canadians, the first $18,000 income should be taxed at 0% and a higher HST/GST credit of $1,500 per person, $750 per child.

#228 Sail Away on 03.24.21 at 1:14 pm

#209 Faron on 03.24.21 at 11:11 am

Speaking of whale art. How was your homecoming quarantine or are you still on the Big Island?

———–

I was actually only there for 3 days before being called home for a job that is a gold mine for us. Haha. Literally- a gold mine work camp. When funding is in hand for a mine project, everything needs to be done yesterday.

My wife and inlaws are still there, return flight to Van April 1 and hoping no hotel quar. They got the Pfizer vax 1st shot a couple weeks ago and the second shot scheduled for next Tues.

#229 Sail Away on 03.24.21 at 1:25 pm

#214 SoggyShorts on 03.24.21 at 11:39 am

You should change your name from
A Dollar is a Dollar is a Dollar
to

The best tax is one that someone else pays!

———–

Haha. Exactly.

And exactly the reason I never trust anyone’s cause on its face because 999 times out of 1000, they are the beneficiaries somewhere below the surface.

#230 A Dollar is a Dollar is a Dollar on 03.24.21 at 1:25 pm

Keep it simple and fair.

Dollars from all sources should have the same level of taxation.

Plus a flat transaction tax on all money exchanges will simplify things and undermine the black and grey markets that let some avoid taxes entirely.

So much simpler than what we have now.

#231 Sail Away on 03.24.21 at 1:30 pm

I am always absolutely gobsmacked by the multitudes who advocate for government to take more in taxes.

You DO know how government treats $, right? Who created the current fiscal mess?

Let me just say that I love government contracts because they (the gov) are not spending their own money.

The contract dinghy and change order yacht are no myth.

#232 Stoph on 03.24.21 at 1:46 pm

#228 Sail Away on 03.24.21 at 1:14 pm
#209 Faron on 03.24.21 at 11:11 am

Speaking of whale art. How was your homecoming quarantine or are you still on the Big Island?

———–

I was actually only there for 3 days before being called home for a job that is a gold mine for us. Haha. Literally- a gold mine work camp. When funding is in hand for a mine project, everything needs to be done yesterday.

My wife and inlaws are still there, return flight to Van April 1 and hoping no hotel quar. They got the Pfizer vax 1st shot a couple weeks ago and the second shot scheduled for next Tues.

————————————————————–

Can’t you just fly into Bellingham and drive across the border? No hotel quarantine. Still have to isolate at home for two weeks though.

#233 Tina Simms on 03.24.21 at 1:47 pm

Every 1% point increase GST,HST would generate about $10 to $11 billion per year. Knowing this, we can increase it to 15% right away and 2% points per year for 3 more years. This would bring in probably maximum $70 billion a year in future taxes.

A 20% tax on the monthly CTB, child tax benefits and GIS would be also a way to raise billions a year in future taxes. These are currently income tax free.

We pay income taxes on CPP, OAS pensions so why should they not be paying income taxes on CTB, GIS.

#234 Phylis on 03.24.21 at 3:09 pm

#218 Stone on 03.24.21 at 12:16 pm
#204 Phylis on 03.24.21 at 10:50 am
#201 Dr V on 03.24.21 at 10:35 am
184 Phyllis – Garth’s what???
Xxxxxx
Darn it again. Maybe “pole’s” would have been clearer.

———

Yup. Sometimes spelling and grammar are important. Wowzers.

Neither Pole or Pole’s are helping you here Phyllis. Just curious, what’s on your mind. Lol.

Thanks for the good laugh.
Xxxxxxx
Yep, I clued in and then issued the double darn.
I suspect it won’t be my last fumble.

#235 Dean Simpson on 03.24.21 at 3:10 pm

WSIB, workers compensation benefits, social assistance benefits, lottery winnings, gambling winnings are all not taxable and no income taxes are paid on them.

They should be subject to income taxes too like all other regular taxable income from wages, employment income, CPP, OAS, most pensions, RRIF, RRSP, LIRA, LRIF withdrawals, income to interest income. We all pay income taxes on all our income sources.

#236 LT on 03.24.21 at 4:03 pm

#210 Doug Peters on 03.24.21 at 11:15 am

LT, if you think giving taking away money from some and giving it to others, why don’t you ask your government to tell the bank of Canada to print, create more money and give each Canadian $10 million dollars.

This way, most Canadians are way more equal and you will be happy and all you and your friends, family members that have no clue about money, society, economics and how inflation, cost of living, taxes really works and their impact on jobs, crime, population in general. Your progressive, liberal, marxist, communist policies do not work, never will work. They are always a grand failure and we will all starve and live in poverty much more than now.

________________________

I have bad news for you about what the CRA is if you believe taxes are communist, and if paying 1% of your $100M in assets is enough to make you starve I think you need to dial back on the caviar.

#237 Overheardyou on 03.24.21 at 4:09 pm

Sadly it seems the can will be kicked indefinitely. There is no accountability anymore, not even with our ‘leaders

#238 Christine Saunders on 03.24.21 at 7:47 pm

LT, so why did I pay and many Canadians for 40 years in Canada income taxes on all my employment, interest, dividends, RRSP/RRIF income, CPP, EI premiums which are payroll taxes, HST/GST/PST, sales taxes, gasoline taxes, excise taxes, capital gains taxes, property taxes, alcohol taxes, tobacco taxes, annual car registration, license fees, land transfer taxes etc.

Now, what is remaining my savings, investments Canadians savings, investments which are still being taxed with all the above taxes every year, I, we have to pay 1% tax on all our remaining savings, investments which is and has been already taxed many times over and over for 40 years. This is not an overreach, confiscation of property, money from government then what is.

There are 3 levels of government taxing us to death and there is only one taxpayer. Also, don’t forget the annual tax on everyone’s savings, investments called inflation which I heard many times is called the hidden tax which I see it is much more than the Bank of Canada’s 1.1% a year. Inflation is already a wealth tax we all pay every year.

You don’t want to call it communist then we are getting closer and closer when all or most the money, property is taken from Canadians and the government squanders it like the last 40 years. Garth, I don’t know about you but why would anyone want to go to work, save, invest and do much if anything when you know they want to steal everything and leave everyone in poverty with high taxes, high inflation, high cost of living.

#239 Rick Sinclair on 03.24.21 at 8:22 pm

I don’t know about you guys but I am tired being taken for a fool and being told by government and others taxing us more is needed. It does not solve anything for the better.

They can take everything tomorrow and they still will never have enough. The marxist, communist, liberal, progressive, left thinking policies are designed only to make things much worse.

#240 Dino Donovan on 03.24.21 at 9:55 pm

Garth, is Canada, US, Europe, western world going to survive a financial, economic bankruptcy of everyone, everything from governments to corporations, businesses to consumers? it looks very scary and I think Canada is finished as a country in 5 years.