Rad

Three weeks out from the maiden Chrystia budget, the stats are toe-curling. The virus may be vanquished by the end of 2021 but the legacy will live on.

In other words, hide your money.

From April of 2019 until the end of that year Ottawa spent $10.6 billion more than it took in. That’s called the ‘deficit’, which is then added to the debt – so your children can grow up, find work and pay interest on it.

From April 2020 until three months ago – the same 10-month period – the feds spent $268.2 billion more than was collected. Yes, a 25-fold increase in the deficit. Never happened before. It pushed the debt to $1.09 trillion, a sum equal to half the economy. Also a record.

But here’s the thing: government spending nearly doubled (by two hundred billion) and taxes crashed (by forty billion). CERB payments alone topped $75 billion, with tens of billions more for enhanced child pogey to families, payroll subsidies and pandemic loans to businesses plus a bail-out for cities.

So we’re on track for a full-year deficit disaster in the $350-billion range. Will this hemorrhaging stop? Will spending be slashed as the virus recedes?

The prime minister has said otherwise. Covid is an opportunity to build back better. The budget will, he’s stated, among other things address wealth inequality, set aside up to $100 billion for new initiatives and be ‘feminist’. On the spendy side of the ledger there’ll be a whole lot of new money for health care (the provinces demand it) and the climate change/green agenda. A UBI is unlikely (too radical and expensive) and no government is going to start taxing house profits (yet).

Business taxes can’t really be increased, since the virus pretty much wiped out Main Street and crippled some economic mainstays like travel, hospitality and tourism. So the Libs will go after the WFH online giants, the financial sector and others that have done well because of Covid. Plus you.

Some moves which have been actively debated:

  • Ending OAS universality.
  • Implementing the 10% luxury tax on cars, boats, RVs and other consumer items selling for a hundred grand or more.
  • A wealth tax of 1% on family assets of twenty million plus, as the NDP demands.
  • An extra percentage point on the GST/HST to help pay for the CERB.
  • Scaling-back RRSP contribution limits, which most benefit high-income earners.
  • A super-tax bracket for those making over $400,000 a year.
  • A hike in the capital gains inclusion rate, from 50% to 66% (or more).
  • A speculation tax on vacant residential property.
  • Changes in stock option treatment to eliminate deferred tax.

But even if all of these things were to occur, they’d not reduce the deficit by half. It would take something drastic – like the entire elimination of new RRSP contributions or the elimination of OAS payments – to really move the needle.

Why?

Because we have an unsustainable system.

Four in ten households pay no net tax, since their government benefits exceed obligations. Meanwhile the ‘income inequality gap’ critics decry is probably smaller than it appears, once a growing tax load is deducted from the cash flow of those who foot the bill. It’s fashionable to say, as our prime minister did, that government “must find additional ways to tax extreme wealth inequality.” But is this realistic?

Well, figure it out.

There are but 764,000 people (of 38 million) who have taxable assets of a million to five million. To be in the top 1% of income-earners requires an income of $234,000, and the average is $477,000. The top marginal tax rate for them is 53%, and they number just 277,695. Already the top 10% of income-earners pay 55% of all taxes. So the other 90% finance the remaining 45%. Recall that four in ten pay nothing, net of benefits. By the way, Canada has only 41 billionaires. Most of their wealth is tied up in corporations which employ a few million people, and pay corporate levies.

So do we really have a tax problem, or a spending issue?

The past year of virus, pandemic, lockdowns, quarantines and upheaval brought new distortions to our nation. Public finances are a mess. Politicians are ricocheting between achieving equality and social justice and staving off a fiscal crisis. You can’t do both. Meanwhile there are too few rich people around to Hoover.

So perhaps the budget could be radical this time. It could tell the truth. What a moment in history that would be.

About the picture: Hansel, an arson-detecting dog, and his handler, firefighter Tyler Van Leer of the Millville, NJ Fire Department. The pit bull was rescued by the SPCA in 2015 from an alleged dog-fighting ring in southwestern Ontario, along with 20 other canines. They were all scheduled to die until animal activists won a court battle to spare them.

216 comments ↓

#1 Gen Z Investor on 03.28.21 at 11:38 am

As if 50% wasn’t enough for capital gains…

#2 KNOW IT ALL on 03.28.21 at 11:38 am

“Four in ten households pay no net tax”

Where do I sign-up?

All I really need in life is 3 square meals a day and a gym-memebership.

#3 GreaterFool on 03.28.21 at 11:39 am

Tax problem or spending problem? there is no sane politicians in Canada

#4 NSNG on 03.28.21 at 11:44 am

I saw tongues!

Why Is Everyone In Texas Not Dying?

https://www.zerohedge.com/covid-19/why-everyone-texas-not-dying

#5 -=withwings=- on 03.28.21 at 11:48 am

We have a spending problem because we keep voting for whoever promises to spend the most. Then we invent new ways to justify debt like the classic ‘if we grow the economy the debt will seem smaller by comparison.

That said, none of those things on the list worry me. Closing loopholes used mostly by those who can afford good tax lawyers is fine with me. If that gets us half way there, good!

Those 41 billionaires saw their wealth soar last year. And their effective tax rate went down. That’s the problem.

#6 Inequity on 03.28.21 at 11:50 am

enhanced child pogey? I know there was one additional 300 or something…

I believe the idea is it’s an incentive to having/raising children. And that is cheaper than immigration.
I know the dinks (dual income no kids) think it’s unfair…

It costs $24 billion a year. – Garth

#7 Doug t on 03.28.21 at 11:51 am

They will come for you – they have nothing else

This country gave up its economic backbone with NAFTA and its been downhill since

Foreign owned companies among Canada’s current largest companies Edit
Main article: Branch plant economy
Asia Pacific Marine Container Lines (Asia Pacific Group Canada), one of Canada’s largest cargo transport companies owned by Leung Maritime Group, Hong Kong
Kia Canada Inc., owned by South Korea’s Kia Motors
General Electric Canada Co. (Formerly Canadian General Electric), a wholly owned unit of General Electric Inc.
General Motors Canada, Canada’s largest automotive manufacturer, Canadian owned according to Ontario Superior Court Documents and the indirect Parent is the Detroit-based General Motors
Wal-Mart Canada, wholly owned by Wal-Mart of the US
Toyota Canada Inc. owned by Japan’s Toyota
Ford Motor Company of Canada, owned by the American Ford company
Imperial Oil, owned by American company ExxonMobil
Mercedes-Benz Canada Inc., owned by German giant Mercedes-Benz
Shell Canada, owned by Royal Dutch Shell.
BP Canada, owned by BP
Mitsui and Company, part of the Japanese Mitsui empire
Honda Canada Inc., owned by Honda of Japan
Ultramar fuels, owned by US company Valero
Costco, whose Canadian operations are the 7th largest private company in Canada as of 2006, is based in Seattle
Labatt Brewing Company, purchased by Belgian brewer Interbrew in 1995, eventually absorbed into Anheuser-Busch InBev
Tangerine Bank (previously known as ING Bank of Canada), the largest foreign bank in Canada, formed by the purchase of several small Canadian companies, formerly controlled by the Dutch ING Group, owned since 2012 by Scotiabank (formally the Bank of Nova Scotia)]]
Sears Canada, one of the largest retailers (created by buying old Simpson’s stores), controlled by the US Sears Holdings Corporation
IBM Canada, owned by IBM
Cargill Ltd. owned by Cargill of Minnesota
McDonald’s Canada, owned by McDonald’s
Pratt & Whitney Canada, owned by US United Technologies Corporation
Nissan Canada, owned by Nissan Motors of Japan
Parmalat Canada owned by Parmalat of Italy (owns the Black Diamond Cheese brand)
Waste Connections Canada, majority shares owned by American owned Waste Connections.
Former major Canadian Companies acquired by foreign owners Edit
See also: Category:Defunct companies of Canada
MacMillan Bloedel, B.C. forestry giant acquired by Weyerhaeuser for US$2.45 billion in 1999
JDS Fitel announces $8.9-billion merger with U-S.-based Uniphase to form JDS Uniphase, in 1999. Company headquarters move from Ottawa to San Jose.
Eaton’s, at one time Canada’s largest retailer, with a history going back to 1869, purchased by Sears in 1999, and closed in 2000
Seagram distillery and entertainment conglomerate, sold to Vivendi Universal and Pernod Ricard in 2000
Corel, a software and programming company, taken over by Vector Capital in August 2003.
PetroKazakhstan a Calgary-based company exploring in Central Asia, was purchased by the Chinese state-owned China National Petroleum Corporation in 2005
CP Ships Ltd., acquired by the parent company of Hapag-Lloyd Container Line, TUI AG, in an all-cash transaction worth $2.3 billion US in 2005
Terasen Inc., previously BC Gas (a public utility company), sold to American-owned energy giant Kinder Morgan for $6.9 billion. The deal was approved by the B.C. Utilities Commission despite 8,000 letters of protest, 2005. Terasen was subsequently sold to Newfoundland-based Fortis Inc. in 2007.
Canadian Pacific hotels the owner of many of Canada’s most historic hotel properties (operating under the name Fairmont Hotels and Resorts since 1999) is sold to Colony Capital, LLC of California and Kingdom Holding Company of Saudi Arabia for $3.9 billion, in January 2006.
Dofasco, Canada’s largest steel maker acquired by Luxembourg-based Arcelor, January 2006.
Noranda (mining company) & Falconbridge Ltd., purchased by Swiss mining company Xstrata in 2006. Noranda had earlier been a target of state-owned China Metals Corp., but had backed out in 2005 amid public concern in Canada of Chinese state control of such a major company.
ATI Technologies, Canada’s graphics chip maker, acquired by Advanced Micro Devices, July 2006.
Stelco, Canada’s last major independent steel producer, taken over by United States Steel in August 2007.
Alcan purchased by Rio Tinto in 2007.
Addax Petroleum, one of Canada’s 9 Fortune 2000 in 2009 oil and gas companies was acquired by sinopec of China for C$8.27 billion in June 2009 and approved by the Chinese government on August 12, 2009.
In 2012, the Harper government controversially approved the sale of two Canadian oil and gas companies to foreign state owned enterprises, Nexen Inc. to CNOOC Limited of China and Progress Energy Resources to Petronas of Malaysia, though it stated that future takeovers by SOEs would face new rules, especially in the energy sector.
Nexen, an oil and gas company based in Calgary, became a wholly owned subsidiary of Beijing-based CNOOC Limited on February 25, 2013.
Lorex, a distributor of security systems, was acquired by the Chinese company Dahua Technology in 2018.
Other examples include Fairmont Hotels, Four Seasons Hotels and Resorts, Cirque du Soleil.
Other examples Edit
Creo, a world leader in digital printing software acquired by Eastman Kodak
Zenon Environmental Inc., a successful and innovative technology company spawned in Hamilton—sold to General Electric Co.
Tim Hortons, sold to US Wendy’s International in 1995, later to be sold to the public as an IPO in 2005.
Gulf Canada Resources, which had formerly been part of US-based Gulf Oil, but had since become independent, was purchased by US-based Conoco in a deal worth $6.7 billion in 2002.
Moore Wallace sold to U.S. company R.R. Donnelley and Sons for $4.9 billion.
Masonite, bought out by Kohlberg Kravis Roberts & Co.
ID Biomedical, Canadian vaccine maker acquired by pharmaceutical giant GlaxoSmithKline for $1.8 billion.
Vincor International Ltd, Canada’s top wine maker and distributor, purchased for $1.4 billion by Constellation Brands Inc. of Fairport, NY, USA
Bauer, Cooper, and Hespeler, historic hockey-equipment manufacturers, collectively bought by Nike in 1994
CCM, acquired by Reebok in 2004.

#8 Inequity on 03.28.21 at 11:52 am

#2 KNOW IT ALL

Go to prison… the gov will take care of all of your needs.

#9 renter on 03.28.21 at 11:52 am

Hi Garth,

I just wanted to say thank you for your blog. We do not own a home but we do have our TFSA and RESP accounts filled thanks largely to your free advice.

Have a good week

#10 Dogman01 on 03.28.21 at 11:53 am

“You can’t always measure the eventual outcome of an action by what has happened thus far. If a man jumps off a 45 storey building, nothing has really changed during the first 40 floor freefall, it’s the last few that make it interesting and we all know what the final outcome is.” – Warren Buffet

Chrystia “the impaler” wrote the book on plutocrats….

#11 Steerage Sockboy on 03.28.21 at 11:54 am

BBB is a staggering pile of BS.. it’s amazing hearing leaders all over the world spew the same stuff…. hmmmm…..

Look at this silly drivel from sock boy…

https://twitter.com/JustinTrudeau/status/1375572976071024640

Just concentrate and fix the covid health crisis…. that’s it..there is nothing else to do….. they have spent a staggering amount of $$.. and yet we lag considerably in vaccination rates … and death rates are not great at all

and he’s gonna win again…..

#12 Comox Dave on 03.28.21 at 11:56 am

Garth…Isn’t the whole world the same financial situation? If you look at the TSX & our dollar, Canada is about to boom.

#13 WayOut on 03.28.21 at 11:59 am

As I will be coming to retirement in next 3 to 15
years, I am superconcerned with how clouds are accumulating for peoples like me. While I worked really hard in and hoped that I will not live in misery at the retirement if I save some moneys in RRSP and TFSA by limiting my spending to not eat outside, do not go to concerts and be moderate in everything, I see now that everything I did to save was useless. I will actively look to move outside Canada and if there are any expats happy I would need some suggestions.

#14 A Dollar is a Dollar is a Dollar on 03.28.21 at 12:00 pm

The greatest problem in Canada’s debt history has been the decades of special treatment of wealthy snowflakes who have been paying much lower rates or no tax at all on things like capital gains, stock options, inheritances and property flipping.

Thanks to all those selfish elites and their political enablers and sycophants, we are now in this mess.

And we are just moments away from a climate emergency which will disrupt everything so much more, like COVID-19 X 10.

All in the midst of automation/AI destroying more and more jobs each year.

#15 Drill Baby Drill on 03.28.21 at 12:04 pm

“Covid is an opportunity to build back better.” Hah that’s a laugh. How about “Tax Back Better”.

#16 Upenuff on 03.28.21 at 12:10 pm

#2 Know it All

Where do I sign up?

All I really need in life is 3 square meals a day and a gym-memebership.

That, I believe is jail, but no taxes……..

Wow Garth, quite the morning read today!

Upenuff

#17 DLT INC on 03.28.21 at 12:12 pm

Every time you bring up the fact that the rich pay most of the taxes I get really pissed off. Of course the rich pay most of the taxes because they make most of the money. Dare you compare the amount of income the rich make compared to how much the other 90% are making. That would tell a much clearer story. As far as always saying that the rich provide so many jobs. Of course their companies employ so many people But if the government, which by the way represents the rich and their interests more than they do the average people, didn’t allow oligopolies to exist because they won’t enforce their antitrust laws, there would be a lot more competition, a lot fewer super rich and a lot more equality and a lot less taxes being paid by the 1%. True capitalism does not permit the type of inequality we see today in the world. Quit being such a lap dog of monopolists who just love those who suck up to them wish dubious arguments which ignores the fact that our democracy is dominated not by the will of the majority but the power of money that purchases our politicians.

#18 Lottery Winner on 03.28.21 at 12:12 pm

In the 13 years since I won my jackpot, I am ever more convinced that lotto wins will be the only safe holding entity for Canadians. Simply because the gubmints are too desperate for the cash inputs to consider taxing lotto wins like in the US.

#19 AGuyinVancouver on 03.28.21 at 12:12 pm

I’ve got no problem with a tax on cars over $100k. Vancouver is full of Bentleys, Lamborghinis etc driven by those whose money is obviously made elsewhere. Unless we move to an American-style tax system on worldwide income, this is the only way for Canada to collect from such people.

However if we really wanted to assist with the effects of income inequality the Feds need to get back into the business of housing. Cuts started under the Chretien Liberals and continued under the Harper Tories. It’s shocking how much it effected affordable housing, as seen in this graph:
https://thetyee.ca/News/2020/05/11/The-Human-Cost-Of-Making-Social-Housing-Scarce/

#20 Joseph R. on 03.28.21 at 12:13 pm

“Four in ten households pay no net tax.”

Are you only talking about income tax. Pretty sure everyone pays consumption (negative) taxes.

And Canada is below OECD average (19%):

https://www.oecd.org/tax/consumption/consumption-tax-trends-canada.pdf

#21 I'm spending ... on 03.28.21 at 12:14 pm

my money on a bigger mattress.

#22 Concerned Citizen on 03.28.21 at 12:15 pm

The capital gains exemption on investments should be eliminated before there is any talk of lowering RRSP limits or getting rid of the TFSA. With all the excess financial capital around looking for a home, I’d eliminate the exemption entirely – it would hurt very few middle class or working class people, and have a very minimal impact on economic growth.

I’d also be in favour of raising the GST. We already have the GST credit in place to protect low income folks. Maybe you bring in a luxury tax on top of this, but raising the GST a percentage point or two would rake in a good chunk of coin on its own.

The OAS already gets clawed back above a certain income level. Maybe you can lower the level somewhat, but I wouldn’t touch it beyond that.

I’m not a big fan of wealth taxes except upon death. Very high estate taxes are needed if we want to promote work rather than reward generational wealth. That said the further the wealth disparity grows, we may need to look at something like an annual wealth tax eventually. I don’t think we’re there – yet.

The prime target of the budget IMO should be getting the housing market under control. That should include outlawing or limiting foreign ownership of residential property, new taxes on speculation and vacant properties, new/higher taxes on multiple property owners, etc. They’d better come down hard. Enough “watching carefully” – time for urgent and thorough action. And yes that means folks who bid $600K over asking may go under water on their mortgage – so be it. Time to throw the kids a bone for a change.

By the way, the idea that is budget will combat wealth inequality is laughable, and doesn’t pass even the most rudimentary smell test. How can the budget combat wealth inequality when the central bank is printing money that pumps asset prices for wealthy people ever higher? If reducing wealth inequality is a genuine goal, then monetary and fiscal policy are not rowing in the same direction. To fix monetary policy, the real discount needs to be positive – at a minimum – and the asset buying needs to end yesterday.

#23 Barkley on 03.28.21 at 12:16 pm

A simple idea. Increase the GST each year to eliminate the previous years budget. Or the opposite when we have a surplus. Enshrine it into law. Just see how decison making from politicians will change. As well as who we vote for.

#24 Peter McLean on 03.28.21 at 12:18 pm

Pitbulls are such sweethearts.

#25 Flop... on 03.28.21 at 12:18 pm

I’m sure the locals saw this story last night, so I will put it up for the Easterners on the blog.

Guy trying to sell his house for 12.25 Bitcoins.

I wouldn’t pay anything over 4.75 Dogecoins…

M46BC

“An Okanagan man is listing his home early next week, however, it will not be sold for cash. Instead, Jay Johnson will be trading his home for cryptocurrency. “I decided to put my house up for sale and I wanted to do it in a way that’s radical,” said Jay Johnson, a Kelowna resident.”

https://globalnews.ca/news/7724210/okanagan-bitcoin-home-sale/

#26 Quintilian on 03.28.21 at 12:20 pm

C’mon now, let’s be a magnanimous. What could have the politicians have done differently?

You can’t roll out an emergency response of this magnitude without some undesirable and unforeseen, consequences.

The real structural damage to the Canadian economy and the unthreading of the equality fibers has its origins in the Flaherty/Harper deceit.

#27 Flop... on 03.28.21 at 12:30 pm

SNL wasn’t that funny last night overall, but this Boomer skit about getting vaccinated was the funniest…

M46BC

——————————————————————————

“Baby boomers, greatest generation, got all the money, now we got the vaccination.”
“Crash the economy three whole times, but when it comes to the vax, we the first in line.”
“Voted for Trump but just for the taxes, don’t believe in Covid, still got the vaxes.”
“Pfizer, Moderna, I know you wanna get one, but you gotta wait your turn-a.”
“Job, retired. Climate denier. License expired. But we still on fire!”

https://www.mediaite.com/tv/snl-digital-short-raps-about-boomers-and-covid-vaccines-baby-boomers-greatest-generation-got-all-the-money-now-we-got-the-vaccination/

#28 T-Rev on 03.28.21 at 12:31 pm

So there’s talk of eliminating or reducing RRSP deductions , but not of TFSAs? It would seem to me that if if one is in the Lib’s sights, the other is soon to follow.

Here’s the point: If you attack all the financial assets of households, through extra taxes on savings vehicles like RRSPs, TFSAs, or OAS claw backs for anyone who bothered to save money for retirement rather than just relying on government cheese (or more likely by the time I retire, government cat food), or by reducing CG inclusion amounts for non sheltered gains, you will drive further investment towards any shelters that remain. And take a guess which asset class would benefit? That’s right, housing. Housing would become a more attractive investment as its gains remain sheltered, at least for now. Especially if all high income households have an extra $60k a year kicking around because it’s not worth topping up their RRSP or TFSA.

CG exemptions for capital gains are the holy cow of Canadian finances. Any government that touches them will commit political suicide, and gone are the days of leaders willing to do the right thing despite electoral backlash. If what you say comes to pass, housing will benefit and the one-asset strategy and the dangers it brings with it will become more pronounced.

#29 Rogerhomeinspector on 03.28.21 at 12:34 pm

Just my two cents- but we’ve become a bunch of hyper entitled little babies who think we deserve all the world has to offer, regardless of how much we’re willing to contribute.

My parents were decidedly middle class and blue collar. I was born in 80, had one sister and we lived modestly but my childhood was awesome. I had a ton of freedom and from the age of 7 I delivered the news paper daily to earn some jingle for my jeans. I can remember being 9 or 10 years old and having $100 a month because of that. I was like a god- you know what you looked like when you slid into the arcade with $20 in say 1989? It taught me early on to get something you have to work for it. And the way my parents framed it for me was this- you get the pleasure of helping out a bunch of people every day by getting them the information they need and the best part is, you get a sense of satisfaction for helping your fellow man AND you get money for doing it. That money can then be spent to make your life experience better in return. It was framed as a very symbiotic relationship and it’s how I view work to this day. It’s why I’ve always gravitated to tangible work that helps improve people’s lives. Dirty hands, clean money.

But so much of our society now seems to revolve around the sense of “I deserve”. I can’t tell you how often I see someone on social media saying they’re on vacation or bought a new luxury car or similar all because… they deserve it. I’ve known people personally that absolutely… and I mean absolutely… could not afford vacations specifically but they borrow to do just that because, well, they deserve it. I don’t believe we really deserve anything. You get what you earn and are able to pay for and that should be about it. And I feel far too much of our work force is unproductive and over paid (Realtors as an example). But our government now seems to have bought into this trend and they too are now saying- you deserve it. Even though you can’t afford it or aren’t willing to pay for it or haven’t provided services of significant enough value, we’ll simply borrow from future generations to ensure you get what you feel you deserve, regardless of what you contribute. Same with central bank policy. Artificially lowering interest rates so people gulp down debt easily because, well, that’s the only way they can afford what they “deserve”.

Something has to give here. At some point, people are going to have to decide what’s truly important. Do you want the big house in the burbs and the leased Audi or do you want good universal healthcare? You can’t have and don’t deserve both if you can’t afford it and aren’t productive enough to pay for both. Me personally, I’d absolutely chip more into the pot for good quality health care and say better long term care for seniors rather than drive a brand new car and have the newest quarts countertops. I’d say my fellow Canadians- other human beings- are more deserving of a shot at life after facing a poor prognosis and seniors are more deserving of dignified care in their old age than I’m deserving of vanity consumption.

My wife is an RN at Grand River hospital in Kitchener. She has a really unique perspective as she deals with people on their worst days. I hear (more frequently than I care to) about people who come in because of some abdominal or back pain thinking it’s maybe some bowel issues or a strained muscle, only to find they’re riddled with cancer and are going to die in short order. She reminds me often that none, and I mean none of those individuals ever lament about not spending enough time at work or wishing they’d have bought the 4 bedroom house instead of the 3 bed. Or that they should have leased the upgraded Audi. At that point, everyone regrets time not spent with family. Missed opportunities you can’t get back. The stuff money can’t buy.

I think we need to have a deep hard look at ourselves as a nation and rethink what we “deserve” and in fact, what’s actually important to us. Sacrifices will have to be made, no doubt. Maybe the day of 3000sf McMansions are replaced with more modest housing so we can make sure we can pay our fair share of taxes- and that means all of us- so that we have the funds and abilities to take care of what’s really important to us as a society. Maybe we get back to more modest and purposeful work- actually producing things of value we can sell to each other and the world, rather than just buying and selling each other crappily renovated plywood boxes. And maybe we should stop putting all of our capital into these plywood boxes and maybe start using some of that to start new businesses and innovate to make the world a better place.

We can’t have it all for nothing. I for one am not willing to sacrifice my daughters future so people can feel they’re wealthy today because of how much their plywood and styrofoam box is “worth”. This, while at the same time contributing nothing to society in the way of taxes but being more than willing to receive the benefits of say universal healthcare.

If you want it, work for it.

#30 Northshore guy on 03.28.21 at 12:36 pm

I don’t think they even want to pay out the debts, they will do what they do best

1. Something that looks like taxing high income earners, so they get vote from the rest
2. Increase incentives to buy homes, to you know, help people get in the market. Increase prices to get vote of 70% homeowners
3. Kick the cane down the road, let someone else take the fall. Keep majority of voting population happy, to win their votes

You see it’s all mathematics, win votes.

We can all hope for great things but the current crop of politicians and other public institutions like BoC simply don’t understand fiscal responsibility

#31 TurnerNation on 03.28.21 at 12:36 pm

Plot twist: the Fed & Bankers have done nothing but fuel this housing bubble. Why? For the coming home capital gains taxes. Would you rather have the tax spoils of a 500k or a 1.5millon home? I thought so.

(‘Cause that’s what happened to the prices of slanty semis in ten years. Now 1.5m
https://www.realtor.ca/real-estate/22961502/52-sandford-ave-toronto-south-riverdale

– Jesus 1.7 mill for a tres narrow attached box with cardboard baseboards. How those millionaires live it up.
https://www.realtor.ca/real-estate/22894272/501-50-curzon-st-toronto-south-riverdale

……………………
– Here it comes. Goodbye Kanada.

B.C. is first in Canada to set emissions targets for industries, communities (vancouverisland.ctvnews.ca)

……
– Prediction: more lockdowns into Easter. Our elite rulers want to stamp out any kind of traditional faith or culture gatherings. We must be kept divided. Why Hamilton, East Ontario and Sask locked down

https://leaderpost.com/news/local-news/regina-area-lockdown-to-further-kill-local-budgets
Regina-area lockdown to further cut into small-town budgets
New lockdown measures imposed by the provincial government for the Regina area kick in on Sunday, covering restaurants and community halls.

German doctors call for 2-week hard lockdown (dw.com)

————-
— Remember this ? Mumbo jumbo!! 5 months later where are we. (I’ll be posting this again for the June, September lockdowns too)

“#74 Alphonse Kehaulic on 11.25.20 at 7:40 pm
28 days lockdown. Symbolism. Two 8s = 88 = double infinity. In other words: Endless, in perpetuity, no timeouts for your lockdowns. Put it to you this way: From now on there will never be a time of no lockdowns.
28 Days Later was a movie about a pandemic. Just a coincidence I’m sure.”

— The world has been taken over:

https://news.yahoo.com/where-millions-mosquitoes-released-florida-110000205.html
By April, millions of genetically modified mosquitoes could begin to be released in dozens of areas up and down the Florida Keys in an unconventional and controversial experiment to reduce or eliminate an invasive species of bug responsible for the transmittal of deadly diseases like zika, dengue fever and chikungunya.
The trial is being conducted by British biotech company Oxitec

– Who funded them?

http://www.gatesfoundation.org › 2020/09 › INV-019029
Oxitec. Date: September 2020. Purpose: to prepare and engage partners for potential self-limited mosquito field trials. Amount: $1,377,280. Term: 12

#32 Paddy on 03.28.21 at 12:39 pm

Once they start diddling with the dividend tax credit, I’ll start to be concerned. Some people don’t have children for various reasons. If I have a considerable amount of doll hairs invested in this country, via a Canadian equity ETF, don’t I deserve a tax break as well? Both are contributing to the growth of the country yes? Seems to me if you’re not on the “Put all your net worth into a house and have 4 kids” train, then you are the enemy.

#33 Silent the people on 03.28.21 at 12:40 pm

Justin “the budget will balance itself “ Trudeau
has taken Canada to a place none of us want!
This will not end well!!!!

#34 VladTor on 03.28.21 at 12:51 pm

Garth—>Ending OAS universality.
——-

Can you, please, give us some details about. What they exactly discussing? Cancelling? New eligibility rules? What else? I tried to Google this idea in Canada…. and absolutely nothing. Zero information!

#35 Roial1 on 03.28.21 at 12:52 pm

After reading your post today, Garth.

What would YOU cut????

What sacred cow gets to be steak dinner?

#36 Stone on 03.28.21 at 12:52 pm

Canada has reciprocal tax treaties with various countries around the world. What’s to stop someone from becoming a tax resident in one of those countries where the tax treatment is more favourable?

Canada can tax what it wants. It’s not going to matter if your tax domicile is elsewhere even if your investments and investment income are in Canada, no?

#37 Dr V on 03.28.21 at 12:54 pm

•Ending OAS universality.
-they wont “end” it, it will just be clawed back at a lower threshold.

•Implementing the 10% luxury tax on cars, boats, RVs and other consumer items selling for a hundred grand or more.
-no-brainer. Of course the boat is used for business

•A wealth tax of 1% on family assets of twenty million plus, as the NDP demands.
– that will be tough to collect. Offshore here we come.

•An extra percentage point on the GST/HST to help pay for the CERB.
– maybe 2 points, as a “temporary measure” of course

•Scaling-back RRSP contribution limits, which most benefit high-income earners.
– I can see the tax benefit being limited to a rate of one of the tax brackets ending at about $100k income.

•A super-tax bracket for those making over $400,000 a year.
– no brainer

•A hike in the capital gains inclusion rate, from 50% to 66% (or more).
– I could see an annual limit on cap gains at 50%, then higher for anything above that so the impression is that it is taxing the rich. A double whammy as the marginal rate would be higher as well.

•A speculation tax on vacant residential property.
– no-brainer

•Changes in stock option treatment to eliminate deferred tax.
– no-brainer

Death by a thousand cuts (or increases in the case of taxes). All appearing as a tax on the rich except the GST which will sold as “we all must pull together”.

https://www.ey.com/en_ca/tax/tax-calculators

Supposed to blow up a storm on the island today. No
ride, no hiking in woods. March madness if the power, cable and internet stays on. Otherwise re-read of Kelton’s book on the role of government bonds in MMT.

#38 A commie is a commie is a commie on 03.28.21 at 12:55 pm

#14 A Dollar is a Dollar is a Dollar on 03.28.21 at 12:00 pm

The greatest problem in Canada’s debt history has been the decades of special treatment of wealthy snowflakes who have been paying much lower rates or no tax at all on things like capital gains, stock options, inheritances and property flipping.

Thanks to all those selfish elites and their political enablers and sycophants, we are now in this mess.

And we are just moments away from a climate emergency which will disrupt everything so much more, like COVID-19 X 10.

All in the midst of automation/AI destroying more and more jobs each year.

Start paying your share dudette….I’ve been carrying you too long with “progressive” tax rates….

#39 binky barnes on 03.28.21 at 12:56 pm

You just know that the PM PM will get it right. That is what he does: gets things right.

BB

#40 Pit bull bull on 03.28.21 at 12:57 pm

#24 Peter McLean on 03.28.21 at 12:18 pm

Pitbulls are such sweethearts.

________________________________

Until they are not …. and rip some kids face off!

#41 Dave on 03.28.21 at 1:06 pm

The question is what kind of new shoes will Chrystia The Impaler purchase for her debut presentation of the budget? She should be reminded that the languages of choice are English and French…not Russian…while Justin with his large strong manly hands will steer the ship.

#42 Barb on 03.28.21 at 1:07 pm

In praise of animal activists!
Live long, Hansel.

#43 Keith on 03.28.21 at 1:07 pm

Iceland Great Reset from the 2009 financial crisis:

Nationalized three banks
Jailed bankers
IMF and Scandinavia bailout 4 billion
Stiffed foreign creditors 40% of the debt
Currency fell 60%
Public service pay cut
Public services unchanged
Taxes increased on high income earners
Debt forgiveness for citizens

Tourism took off with the low currency, earning valuable foreign currency, currency and economy generally recovered after nine years. Tiny population, less than 400k but had 9x debt to GDP in those three banks by far the largest debt problem in the world at that time.

https://www.policyforum.net/10-year-recovery-lessons-iceland/

The next crisis that gives Canadian government license to do whatever is necessary will be a fiscal one. And it will make the nineties look like a picnic. Hang on to your assets.

#44 Penny Henny on 03.28.21 at 1:15 pm

What exactly is a taxable asset?

#45 ogdoad on 03.28.21 at 1:23 pm

Great..tax the money I make. Then I buy something with some of what’s left over and get taxed. Then I invest the rest (like a good ‘ol Capitalist) and get taxed on capital gains when I sell. Then I get taxed again when I want to do something in retirement. Well, couldn’t happen to a nicer country.

Og

#46 SimplyPut7 on 03.28.21 at 1:23 pm

All of these ideas seem like they will end the Liberal government. I think there are enough votes for a Conservative minority.

Let us vote to end this madness.

#47 Sail Away on 03.28.21 at 1:23 pm

Well, the prudent course is clearly to create contingencies to protect one’s assets from government overreach now. Very few will.

Anybody on this blog who cries poor me after these red flashing warnings come to pass? It might just possibly be sorta your own fault… but nobody needs to say it since pain is an excellent teacher on its own.

You should see my bird dog ease his way through barbed wire fences after losing 1/3 of an ear 5 years ago.

#48 Sunny Daze on 03.28.21 at 1:28 pm

Sounds like nothing for nobody to me. Trudeau seems uninterested. I know the ideas are just getting batted around but that kind of budget is horrific. Offends everyone. Makes it too easy for the other parties.

NDP takes the next election.

Singh is gonna taking Trudeau apart on that. PC will take enough to let him come up the middle.

#49 Bob in Hamilton on 03.28.21 at 1:33 pm

“So do we really have a tax problem, or a spending issue?”

I’m surprised the question even has to be asked….but there are still many in this country who still have no clue as to what the right answer must be.

#50 T-Rev on 03.28.21 at 1:35 pm

Edit to my comment #28 above. First sentence of last paragraph should read: CG exemptions for housing gains are the holy cow of Canadian finances.

#51 Andy on 03.28.21 at 1:35 pm

Where’s crowdedelevatorfartz!?

Dude, the world NEEDS YOU!

1. Call right now to book a flight to Cairo for tomorrow!

2. Start eating 1 can of beans per hour right now and DON’T STOP!

3. Stay naked. (We know you’re probably naked all the time because you’re posting so much here, one hand on the keyboard and the other hand on…well…you know…)

4. As soon as you arrive in Cairo grab a cab and head for the Suez Canal.

5. Ask the driver to stop off for a minute to buy some
take out with ful medames, falafel and anything made with fava beans. Eat at least two full meals. Don’t worry, they’re delicious!

https://en.wikipedia.org/wiki/Ful_medames

6. Once you’re at the Suez Canal, dive in naked and start swimming toward the Ever Given as fast as you can. (Consider renting a Sea Doo for part of the trip so you can eat some more beans on the way.)

7. Once you’re beside the Ever Given, dive deep beneath the stern and grab the rudder!

8. Keep your massive naked butt pointed towards the bow.

8. Then, LET ‘ER RIP BRO!!!!!!

Only you can unlock that ship and save $BILLIONS in international trade!

You might even get a medal! Or a Pyramid named after you!

#52 Grunt on 03.28.21 at 1:38 pm

DELETED

#53 Bob in Hamilton on 03.28.21 at 1:41 pm

#29 Rogerhomeinspector on 03.28.21 at 12:34 pm

“If you want it, work for it.”
————————————————————–

Correct sentiment but not in today’s Canada…wrong era, wrong people, wrong attitudes.

#54 mark on 03.28.21 at 1:44 pm

No political parties going to cancel OAS political suicide get real.

Ending universality is not canceling. – Garth

#55 Concerned Citizen on 03.28.21 at 1:51 pm

#32 Paddy, your tax break is substantial – in the form of tax-sheltered RRSPs and TFSAs.

Between the two of them, you can contribute roughly $33K per year (if you’re maxed out on income). Over 30 years, assuming returns that just keep pace with inflation, that’s a million bucks. With even modest returns, you’re looking to clear a couple million in current dollars. If you can save for 40-45 years instead, you’re that much better off.

If you need more room to save outside of those two plans, then you’re likely doing very well -congratulations – and don’t need the capital gains exemption. Again, why should money made from money get a tax break, but income doesn’t?

Because invested capital has already been taxed, and it’s a net benefit to society to have it reinvested in the economy. – Garth

#56 milmech on 03.28.21 at 1:51 pm

Income inequality will be addressed in this budget by making everyone poor, problem fixed.
Add this fix to balancing the budget and making housing more affordable promises.
Buy popcorn futures this is getting fun now.

#57 Damifino on 03.28.21 at 1:57 pm

#48 Sunny Daze

NDP takes the next election. Singh is gonna taking Trudeau apart on that. PC will take enough to let him come up the middle.
————————–

Ya think? I was hoping maybe the other way around. Singh takes enough to let the PC come up the middle. Or at least hold the Libs to a second minority. Or maybe even cause a Conservative minority? Wow!

Then Jagmeet would have no choice but to work with a party he detests rather than one that simply eats his lunch daily. It would be the true measure of the man since he’ll always be in third position trying to “make a difference for the little guy”.

On another note. I expect a point will be added to the GST. Maybe two. So simple, even Liberals can do it.

#58 VladTor on 03.28.21 at 1:58 pm

#37 Dr V on 03.28.21 at 12:54 pm
A speculation tax on vacant residential property.
– no-brainer

——–
Actually very brainy! But! – it is depends how tax organized. Should be sliding scale for tax to prevent speculation. For instance: first year 2%, second -3%, third – 5% and so on. Rule in addition – if you sell your empty property during second year and buy new one which is empty – tax for your new empty house which you buy in second year will start from 3%. If you sell/buy in third year – tax start from 5% etc. If somebody buy your property which was empty 3 years and had empty tax and keep it empty – he/she has start tax 5% for first year. Rules like this will kill empty property from owning forever.

Which does zero for deficit reduction or budget balancing. Revenge taxes are for jealous people. – Garth

#59 North snore on 03.28.21 at 2:00 pm

#13 WayOut on 03.28.21 at 11:59 am

I’m moving to Europe for retirement. Maybe 10 more years here and then another 10 there and then chill.

#60 Ponzius Pilatus on 03.28.21 at 2:01 pm

#10 Dogman01 on 03.28.21 at 11:53 am
“You can’t always measure the eventual outcome of an action by what has happened thus far. If a man jumps off a 45 storey building, nothing has really changed during the first 40 floor freefall, it’s the last few that make it interesting and we all know what the final outcome is.” – Warren Buffet

Chrystia “the impaler” wrote the book on plutocrats….
————-
I’m not sure if this even is a Buffett quote.
And if it is, I’m sure he’s not proud of that one.
The minute that guy leaps off the ledge, his furture is certain 100%.
Unless, Superman swoops him up, 1 second before he hits the ground.

#61 Old Man River on 03.28.21 at 2:01 pm

Garth,
I’m calling you out on this one as you’ve left a key measure off of your list: a financial transaction tax.

https://www.taxfairness.ca/en/news/strong-public-support-financial-transaction-taxes

Seeing as our pals at the big five are doing quite well, they won’t mind chipping in a buck or two so as to help us out of this hole.

https://globalnews.ca/news/7663464/coronavirus-canadian-banks-earnings-2021/

It’s high time that corporations pay their fair share.

The banks paid $14 billion in tax last year. Seems enough. – Garth

#62 joblo on 03.28.21 at 2:02 pm

DELETED

#63 Freedom First on 03.28.21 at 2:05 pm

Time to Gov’t to start printing 1K, 5K, & 10K Bills. Makes it easier to stash cash and deal off grid. You know, for some privacy. Not into crypto.

Freedom First

#64 Diebel Ryan on 03.28.21 at 2:06 pm

I think it’s about time time the wealthy ( thats pretty much all commentors on this blog) payed more tax. As working individuals it sure feels like we pay for everyone.
Fill up rrsp allowances – yeah right. We are very good with our money. Couple income of 130K. Managed to save about 30K over the last ten years with little debt but there is nothing left for saving. You guys call yourselves savers like you are doing something others can’t. Obviously you’ve been given a large advantage by one means or another but instead of helping others with that money, most of you spend your time trying to hide it for yourself. The taxes I pay take all my extra money, the dollar value may not be as high as “lord business “ pays but the percentage of my income is way higher. When is the last time lord business had to decide which bill to pay and which to hide from ? I am working poor. Work five days( usually 6) , rest for two ( usually one) which clearly is not the case for money who follow this blog.
We’ll keep our heads above water for now with little to no plan for the future but at least we are greedy goblins shim shamming our way to an elite lifestyle.
Shame on all of you. Pay your bloody taxes, enjoy the ammenities around you without the guilt of knowing that it’s the working poor who support you all.
Hide your money- shame

#65 Comrade on 03.28.21 at 2:07 pm

” Politicians are ricocheting between achieving equality and social justice and staving off a fiscal crisis. ”

And by trying to do both, the inequality is growing and we will have a financial crises in our hands.
I recall Garth saying at on of his blogs that Bill Morneau was the only adult in the room left. I guess now we see what happens when no adults are left. But after all this is get elected again math, so at the end it is on us voters.

#66 Dolce Vita on 03.28.21 at 2:07 pm

The long and the short of it is:

Canada seems to be love with debt, Gov and Personal. Probably 2nd worst in G7 after Japan.

——————

Look at Program Spending since WWII by Prime Minister and that’s to April 2020, assume $CDN:

https://i.imgur.com/BKW4krH.png

The $4K in Covid spending per person ballooned by Mar 2021:

Statista reports 18.5% of GDP on Covid stimulus spending by Canada, #2 after Japan, as of Mar 2021.

https://www.statista.com/statistics/1107572/covid-19-value-g20-stimulus-packages-share-gdp/

= 18.5% x $1,936,243M (Dec 2020 GDP per StatCan)

= $358.2M / 38M Beavers

= $9,426 / Beaver (more since I used Dec 2020 GDP, Mar 2021 GDP ought to be higher)

———————————-

Hard to get apples to apples numbers, closest I could find up to date…

Source IMF, %GDP:

Public Debt 2021 Household Debt 2019 Total %GDP
Japan 263.97 61.08 325.1
Canada* 114.97 101.23 216.2
USA 133.64 75.34 209.0
Italy 158.31 41.23 199.5
UK 111.52 83.99 195.5
France 118.57 61.74 180.3
Germany 72.21 54.39 126.6

*170.7% per StatCan 3rd Qtr 2020, revised Canada Total %GDP = 285.7

Long and the short of it is Canadians up to their eyeballs in debt, so is their Gov. Gov Canada will NOT be able to beat more cash out of an already dead horse (household).

Garth’s correct about that.

Expect Program Spending to be cut by a LOT.

————————–

Now I can’t make anymore THREADBARE Italia jokes…3 heavy weights ahead of Italia and she is darn near tied with the UK.

Recall Western MSM citing Italia as the “I” in PIGS.

Who’s the PIG now eh Canada?

Quid pro quo.

#67 Sail Away on 03.28.21 at 2:09 pm

#36 Stone on 03.28.21 at 12:52 pm

Canada has reciprocal tax treaties with various countries around the world. What’s to stop someone from becoming a tax resident in one of those countries where the tax treatment is more favourable?

Canada can tax what it wants. It’s not going to matter if your tax domicile is elsewhere even if your investments and investment income are in Canada, no?

————

Mostly incorrect except for registered accounts:

1. As a non-tax resident, you can maintain your registered accounts in Canada but will probably not be able to contribute or transact within them except through a registered Canadian broker.
2. All nonregistered assets will be assessed a ‘deemed disposition’ capital gains charge at exit, after which there’s no real point keeping the assets in Canada since it’ll be easier to work with a local account.
3. Canadian real estate obviously loses primary residence exemption.

The best time to exit with a lot of nonreg assets is during a recession when investments are depressed leading to lower deemed disposition.

Research and planning is important.

#68 Ponzius Pilatus on 03.28.21 at 2:12 pm

#21 I’m spending … on 03.28.21 at 12:14 pm
my money on a bigger mattress.
————-
Good news for you.
Sleep Country has a special on the “Cash Stasher” model.
Half of it is hollow. Very popular now.

#69 Sunny Daze on 03.28.21 at 2:15 pm

#57 Damifino on 03.28.21 at 1:57 pm
#48 Sunny Daze

NDP takes the next election. Singh is gonna taking Trudeau apart on that. PC will take enough to let him come up the middle.
————————–

Ya think? I was hoping maybe the other way around. Singh takes enough to let the PC come up the middle. Or at least hold the Libs to a second minority. Or maybe even cause a Conservative minority? Wow!

Then Jagmeet would have no choice but to work with a party he detests rather than one that simply eats his lunch daily. It would be the true measure of the man since he’ll always be in third position trying to “make a difference for the little guy”.

On another note. I expect a point will be added to the GST. Maybe two. So simple, even Liberals can do it.

———————————

Possible but they are out of touch with younger people. Weak leadership too. And Fords performance in Ontario hasn’t been good.

#70 Sail Away on 03.28.21 at 2:18 pm

Departure tax info:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html

#71 Ray Skunk on 03.28.21 at 2:24 pm

I notice once again that eliminating Trust Funds is not on the agenda.

Even though that would ensure that the truly wealthy are paying their “fair share”.

Can’t think for the life of me why silver-spoon Socialist Trudeau isn’t kicking that idea around.

Meanwhile yes, let’s go after RRSPs for those private sector workers facing an inflation frenzy without the luxury of an indexed DB pension. Can’t let those bastards have a retirement, can we?

#72 Lorne on 03.28.21 at 2:29 pm

#29 Rogerhomeinspector on 03.28.21 at 12:34 pm
Just my two cents- but we’ve become a bunch of hyper entitled little babies who think we deserve all the world has to offer, regardless of how much we’re willing to contribute.

My parents were decidedly middle class and blue collar. I was born in 80, had one sister and we lived modestly but my childhood was awesome. I had a ton of freedom and from the age of 7 I delivered the news paper daily to earn some jingle for my jeans. I can remember being 9 or 10 years old and having $100 a month because of that. I was like a god- you know what you looked like when you slid into the arcade with $20 in say 1989? It taught me early on to get something you have to work for it. And the way my parents framed it for me was this- you get the pleasure of helping out a bunch of people every day by getting them the information they need and the best part is, you get a sense of satisfaction for helping your fellow man AND you get money for doing it. That money can then be spent to make your life experience better in return. It was framed as a very symbiotic relationship and it’s how I view work to this day. It’s why I’ve always gravitated to tangible work that helps improve people’s lives. Dirty hands, clean money.

But so much of our society now seems to revolve around the sense of “I deserve”. I can’t tell you how often I see someone on social media saying they’re on vacation or bought a new luxury car or similar all because… they deserve it. I’ve known people personally that absolutely… and I mean absolutely… could not afford vacations specifically but they borrow to do just that because, well, they deserve it. I don’t believe we really deserve anything. You get what you earn and are able to pay for and that should be about it. And I feel far too much of our work force is unproductive and over paid (Realtors as an example). But our government now seems to have bought into this trend and they too are now saying- you deserve it. Even though you can’t afford it or aren’t willing to pay for it or haven’t provided services of significant enough value, we’ll simply borrow from future generations to ensure you get what you feel you deserve, regardless of what you contribute. Same with central bank policy. Artificially lowering interest rates so people gulp down debt easily because, well, that’s the only way they can afford what they “deserve”.

Something has to give here. At some point, people are going to have to decide what’s truly important. Do you want the big house in the burbs and the leased Audi or do you want good universal healthcare? You can’t have and don’t deserve both if you can’t afford it and aren’t productive enough to pay for both. Me personally, I’d absolutely chip more into the pot for good quality health care and say better long term care for seniors rather than drive a brand new car and have the newest quarts countertops. I’d say my fellow Canadians- other human beings- are more deserving of a shot at life after facing a poor prognosis and seniors are more deserving of dignified care in their old age than I’m deserving of vanity consumption.

My wife is an RN at Grand River hospital in Kitchener. She has a really unique perspective as she deals with people on their worst days. I hear (more frequently than I care to) about people who come in because of some abdominal or back pain thinking it’s maybe some bowel issues or a strained muscle, only to find they’re riddled with cancer and are going to die in short order. She reminds me often that none, and I mean none of those individuals ever lament about not spending enough time at work or wishing they’d have bought the 4 bedroom house instead of the 3 bed. Or that they should have leased the upgraded Audi. At that point, everyone regrets time not spent with family. Missed opportunities you can’t get back. The stuff money can’t buy.

I think we need to have a deep hard look at ourselves as a nation and rethink what we “deserve” and in fact, what’s actually important to us. Sacrifices will have to be made, no doubt. Maybe the day of 3000sf McMansions are replaced with more modest housing so we can make sure we can pay our fair share of taxes- and that means all of us- so that we have the funds and abilities to take care of what’s really important to us as a society. Maybe we get back to more modest and purposeful work- actually producing things of value we can sell to each other and the world, rather than just buying and selling each other crappily renovated plywood boxes. And maybe we should stop putting all of our capital into these plywood boxes and maybe start using some of that to start new businesses and innovate to make the world a better place.

We can’t have it all for nothing. I for one am not willing to sacrifice my daughters future so people can feel they’re wealthy today because of how much their plywood and styrofoam box is “worth”. This, while at the same time contributing nothing to society in the way of taxes but being more than willing to receive the benefits of say universal healthcare.

If you want it, work for it.
….

Well said!

#73 VladTor on 03.28.21 at 2:30 pm

Garth—> Which does zero for deficit reduction or budget balancing.
Revenge taxes are for jealous people.
—–

Not agree here.
This tax not about jealous people (of course those people exist among us) – just about macroeconomic.

This tax create more available properties on market and increase (b’s prices will drop) affordability for folk who now can’t buy. They buy house and….. will pay property tax…. and they need to fill house with furniture etc. – they buy what they need, increase economical activity and in different way create more jobs. Multiplicative money effect starting decreasing deficit. In empty house – money speculative ,frozen and has no effect on economy. Need to release them asap. When everything will be normal gov. can allow to have 2…3 whatever houses with no additional tax increase. But – after. Not now!

#74 I'm a Wizard Harry on 03.28.21 at 2:32 pm

Any thought process that actually makes it to “let’s take a look at the numbers” deserves respect in this day and age.

#75 Dr V on 03.28.21 at 2:34 pm

58 Vlad – by “no brainer” I meant it was almost a certainty whether one agreed with it or not.

The impression here being only the “rich” would own
a “vacant” residential property.

I do know people though, who have inherited residential properties which are more typically used
recreationally, and may be shared with their siblings. While they could be occupied as rentals, that can be more of a hassle than what it’s worth, especially with insurance and maintenance.

As non-principal dwellings, these would certainly be subject to cap gains upon sale, but the decades-long family ownership would indicate they were not originally purchased as quick-turnover speculative
investments.

#76 Cheese on 03.28.21 at 2:37 pm

Its not the F=ma that gets you, it’s the ∆v/∆t.

This will not end well.

#77 DMW on 03.28.21 at 2:39 pm

Justin spends our tax money like somebody with a bottomless trust fund. I doubt he’s going to change. Sadly the opposition parties seem to be too ineffective so far to defeat T2 on any of the important issues including this new budget. It will be future governments that will end up making the tough political/fiscal decisions to clean up the country’s financial mess.

#78 VladTor on 03.28.21 at 2:48 pm

#74 Dr V on 03.28.21 at 2:34 pm
….I do know people though, who have inherited residential properties which are more typically used
recreationally, and may be shared with their siblings. While they could be occupied as rentals, that can be more of a hassle than what it’s worth, especially with insurance and maintenance….
————
I agree with you – people like those should be free from this tax. That’s why need to have flexible rules which is prevent speculation only. For instance – if house empty for 6 month during 10 years and was inherited – for sure house like this not for speculation. If I bought only having goal to sell asap- I will not keep it 10 years empty. Right!

#79 crossbordershopper on 03.28.21 at 2:49 pm

net of benefits i would suspect closer to 50% of people pay no tax in Canada for2020 tax year.
the concept of balanced budgets has sailed away. everywhere.
where in a new time now, govt want to keep people happy and will be cheating everywhere to get a few bucks in, but the raw numbers will be awefull forever more.
basically, little people have more kids, and those kids dont go to school and have more kids. The native population is a good example, all the old stock canadians are dying and new immigrants replacing them with more kids and lower tax revenue and higher benefits to the goverment.
the old adage of self sufficient is gone. everyone, including a lot of old stock canadian bumbs that i know, have never worked, will never work ,and simply want a free lunch anywhere they can get one.
talking about opportunity etc in Canada is a joke, the whole system is that you work for the corporation and thats it. dont ever think you can go it alone. and if you want to, if this pandemic has taught us that the little guy always feels the hurt first.
my suggestion is simply be a bumb, and work for cash. never own anything, well in your name, and have a coffee. but lower your expectations, that what the sign should shay at pearson airport when the new immigrants arrive, lower your expectations your in Canada.
no one wants to be a high income earner in Canada, why, what is the incentive to work harder. to keep less that half of every new dollar. not a fair deal.
basically when your plate is full be happy , dont be greedy, someone doesnt have a plate thats basically Canada.

#80 Don Guillermo on 03.28.21 at 2:50 pm

#70 Ray Skunk on 03.28.21 at 2:24 pm
I notice once again that eliminating Trust Funds is not on the agenda.

Even though that would ensure that the truly wealthy are paying their “fair share”.

Can’t think for the life of me why silver-spoon Socialist Trudeau isn’t kicking that idea around
**************************************
Because then he would be taxing himself and his family. There’s no way he’s going to pay for this mess.

SA – thanks for the link.

#81 Ponzius Pilatus on 03.28.21 at 2:51 pm

Just got my BMO Annual Shareholders Report.
203rd. They’ve been around, that’s for sure.
220 pages. Fine print.
Enough numbers to make even the strictest accountant happy.
Gives you the feeling the Company is well run.
My days of checking numbers are over. So, I’d rather read WAR and PEACE instead.
Their customer service isn not great, though.
Could spend more on wages and training.
But that would cut into my dividends, would it not?
Service at the other banks isn’t that great either.
I tried.
WFH has made it worse.

#82 KNOW IT ALL on 03.28.21 at 2:51 pm

So then WHAT’S THE POINT in working if it just all goes to taxes?

#83 IHCTD9 on 03.28.21 at 2:59 pm

“A speculation tax on vacant residential property.”
——— –

So much for controlling house prices. If this is the plan, we’ll still see 10 specuvestors at every bidding war shooting prices to the moon, they’ll just have to rent it out now while waiting for appreciation – which they will undoubtedly receive. Won’t slow ‘em down a bit.

Maybe the Liberals will hand out pamphlets with other handy tips on how to dodge the tax too.

It’s just the kind of useless policy we’ve come to expect from the Trudeau Liberals. What a bloody train wreck of a government.

At least the realtors will be happy. This spring is going to be a wholesale slaughter.

#84 Ponzius Pilatus on 03.28.21 at 3:06 pm

DR. V,
Every time I hear the word “no brainer”, I cringe.
What is a “no brainer” to you is a “brainer” for some one else.
I remember when ATMs came unto the scene, and the higher ups gloated how much cheaper ATM transactions were than the one’s done by a human teller.
“no brainer” they said.
Until I proved that ATM transactions were actually twice as expensive as the ones done by a teller.
I call it the fallacy of linear thinking.

#85 DMW on 03.28.21 at 3:12 pm

Some moves which have been actively debated:

Ending OAS universality.
Agree with some of the above posts. the Fed’s will likely just lower the income level at which they start clawing back OAS. It will be explained as a ‘fairness adjustment’ , not any change in taxes

Implementing the 10% luxury tax on cars, boats, RVs and other consumer items selling for a hundred grand or more. Great idea. But why not 15-20% tax , and why not start at $50,000 or more ?

A wealth tax of 1% on family assets of twenty million plus, as the NDP demands.
This idea will play very well with the public, but anybody with this much money is assets will avoid the tax by either start moving it offshore to other Tax jurisdictions, dividing it amongst their family members , setting up new corporations and ‘investing’ their personal assets there, or keeping their accountants & tax lawyers busy.

An extra percentage point on the GST/HST to help pay for the CERB.
Good idea, but why not 2-3% increase while you’re at it ?

Scaling-back RRSP contribution limits, which most benefit high-income earners.
Sounds like a good idea

A super-tax bracket for those making over $400,000 a year.
People in this tax bracket will find ways to avoid the tax by having their salaries paid/split between personal payments and corporations, or paying their accountants & tax lawyers to be creative.

A hike in the capital gains inclusion rate, from 50% to 66% (or more).
Raising the capital gains inclusion rate is an unfortunate likelihood. Unfortunately there won’t be a lot of public sympathy for people that will be hurt by this change. But It’ll penalize anyone whose fortunate enough to have non-registered investments but not wealthy enough to afford to move their investments offshore, into trusts, or other tax-minimizing vehicles

A speculation tax on vacant residential property.
Good idea

Changes in stock option treatment to eliminate deferred tax.
Good idea

#86 Stealth on 03.28.21 at 3:13 pm

Garth,

What is defined as a taxable asset for an individual vs say family or household?

Rrsp? Margin investment account?
Not tfsa .
What about resp? Probably not if taxed in beneficiary hands at withdrawal.
Used Mercedes upon its sale?
Rental properly owned jointly with wife? So 1/2 of that perhaps?
Own house, not due to principal residence exemption.
Joint investment account? Probably 1/2 of that …

I think few other people asked the same question…comment #44 etc.

Thank you.

#87 Concerned Citizen on 03.28.21 at 3:23 pm

“Because invested capital has already been taxed, and it’s a net benefit to society to have it reinvested in the economy. – Garth”

Yes invested capital has already been taxed, and when you pay capital gains tax only your winnings are taxed – not the invested capital. There is no double-taxation.

Work is also of net benefit to society – arguably much more so. If we agree on that, then why should work be taxed more than trading in my margin account in my pjs?

At one point long ago, I can see the case for the capital gains exemption. But now we have essentially open borders for capital, central bank money printing, and an aging population – there is a clear excess of capital. Look no further than crypto-currencies, NFTs, asset valuations, etc.

#88 VladTor on 03.28.21 at 3:25 pm

#83 Ponzius Pilatus on 03.28.21 at 3:06 pm
—-

In former USSR (Russia, Ukraine etc.) we use the word “no brainer” too. But we have more funny equivalent : “even horse understand this”

#89 Sail Away on 03.28.21 at 3:30 pm

#63 Diebel Ryan on 03.28.21 at 2:06 pm

Re: woe is me

———–

DB, instead of bemoaning your raw deal in life, your time would probably be better spent learning from the successful posters on this site. Many, if not most, have been in your exact situation- which is actually pretty good from a global perspective, if you can change your mindset to one of gratitude and plenty instead of scarcity.

Most people work. Not everybody learns. You can choose to do both.

#90 Linda on 03.28.21 at 3:44 pm

We definitely have a spending problem. The entire CERB debacle. Yes, it was a life line to many, but if the stats published on this blog recently are in fact correct far too many received $ they actually didn’t qualify for. The irony here is that most folks receiving ‘full’ CPP & OAS to boot are getting less than the CERB payment. Yet those over age 65 received a ‘one time payment’ of $300 to offset Covid related expenses.

OAS unlike CPP is funded out of general government revenues. I’ve long thought that the net income level before clawback applies was overly generous. Clawback begins at just over $75K (2021 figures). So conceivably a 2 person retiree household could have $150K net income & still receive full OAS. Even reducing the minimum to $50K net per person would still see most Canadians receiving the full OAS benefit. Just saying.

#91 Adam on 03.28.21 at 3:47 pm

#83
“Until I proved that ATM transactions were actually twice as expensive as the ones done by a teller.”

———-

Sorry but what the hell are you talking about? Do tellers operate 24/7/365 and are they located in every single dingy 7-eleven and Mac’s across Canada? Then what point are you trying to make? Sounds like the ultimate “ok boomer” comment rant against ATM’s. I’ve seen some old school rants but it’s been a while since I’ve seen someone rant against ATM’s. I guess TV’s are also more expensive than good old fashioned radio.

#92 Tarot Card on 03.28.21 at 3:54 pm

Thanks for the blog Garth
Some good posts today as well

I was thinking if we only had 28 billion shortfall before covid how hard would it be to balance the budget.
Then I read your 100 billion in new initiatives

To be honest I have no problem with the above noted tax increases. While I am only 60 I am already planning for the OAS clawback that starts $79,000 to be reduced $50,000
I don’t like the idea but agree with it, if you make over 100,000 income you really do not need OAS.

I totally disagree with 100 billion in new spending until the budget is balanced.
Funny not to many posts talk about the spending.
What is so difficult increase taxes balance a budget then do a priorities list
A priorities list is you can spend the money on anything you want but you cannot run a deficit.
Let the private sector run with the ball and give them all the tax incentives.
Opps I guess that to radical in thinking
Have a great week, April fools is coming three weeks late this year ha ha

#93 IHCTD9 on 03.28.21 at 3:58 pm

#34 VladTor on 03.28.21 at 12:51 pm
Garth—>Ending OAS universality.
——-

Can you, please, give us some details about. What they exactly discussing? Cancelling? New eligibility rules? What else? I tried to Google this idea in Canada…. and absolutely nothing. Zero information!
——-

Right now everyone qualifies, provided your income is not over 70-some grand per year in retirement. I’d expect a shrinking of those eligible based on retirement income.

This kind of stuff is the point of the arrow where Canadians start losing some of their social safety net as a direct result of boneheaded governance.

As long as Trudeau is running the show, expect many more losses on this front.

OAS clawback starts at $79,000 and by $128,000 all the benefit has been taxed away. – Garth

#94 Bloff Witzer You're in the sitatation cloakroom on 03.28.21 at 4:04 pm

Either way there will be a very hard swing in the opposite direction at some point in the future that will be very painfull also.

#95 YVR Renter on 03.28.21 at 4:19 pm

A speculation tax on empty homes? All for it! Here in Van, in tony Dunbar, we walk past so many shamefully empty houses….many in such rundown disrepair, yards disgusting. But some decent ones too, clearly empty with all blinds drawn, never see any life there, or flowers, etc. There needs to be a snitch line to ensure these empty home owners declare it, I’m sure many don’t. These are bank accounts for speculators, and part of the reason we’ve got a have/have not society. This is why it’s so expensive to live in Van.

#96 Looking Up on 03.28.21 at 4:20 pm

#60 Ponzius Pilatus on 03.28.21 at 2:01 pm

I’m not sure if this even is a Buffett quote.
And if it is, I’m sure he’s not proud of that one.
The minute that guy leaps off the ledge, his furture is certain 100%.
Unless, Superman swoops him up, 1 second before he hits the ground.

————–

Sorry can’t resist.

Three guys are sitting in a bar. The first guy turns to the second guy and says: “I’ll bet I could jump off that 20 storey building across the street and nothing will happen to me. The second guys says “You’re full of crap. I’ll take your bet.” The three proceed to the top of the building, the first guy jumps, bounces off the ground and ends up back at the top of the building in perfect condition. The second guy says, “if he can do it I can do it” and jumps off. He dies on impact and his body is scattered all over the street.

The third guy looks at the first guy and says “Superman, you can be a real jerk sometimes”

#97 Mr Happy on 03.28.21 at 4:24 pm

#13 WayOut on 03.28.21 at 11:59 am
As I will be coming to retirement in next 3 to 15
years, I am super concerned…. hoped that I will not live in misery at the retirement …. I will actively look to move outside Canada and if there are any expats happy I would need some suggestions.

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

Mexico, Costa Rica… just to name two… 2 million Cdn’s living in Mexico…. about a third of that in Costa… Tons of info on the web…. I know people living south and living well on just their CCP/OAS…

#98 UCC on 03.28.21 at 4:24 pm

#8 Inequity on 03.28.21 at 11:52 am
#2 KNOW IT ALL

Go to prison… the gov will take care of all of your needs.
———

Unsurprisingly this is exactly what some elderly folks are doing in Japan.

https://www.bbc.com/news/stories-47033704

#99 Planetgoofy on 03.28.21 at 4:41 pm

#97 UCC on 03.28.21 at 4:24 pm
#8 Inequity on 03.28.21 at 11:52 am
#2 KNOW IT ALL

Go to prison… the gov will take care of all of your needs.
——————————–
Or just be a homeless thief in Courtenay and they provide you with housing food and drugs.
Last week one of these types stole my tenants FedEx pack off the front door step at 2:37am…. nothing better to do.
I have full camera footage…nothing you can do its Socks plan for these poor folks.
This country is trending into a shit pile…for a 1000 reasons. God help us.
Thx for the writeup Garth.

#100 Loonie Doctor on 03.28.21 at 4:42 pm

#29 Rogerhomeinspector on 03.28.21 at 12:34 pm

I agree with regarding work and reward. The work part is left out of the discussions about tax, debt, and entitlements.

More importantly, I think your wife is smart. You learn a lot about what is important when you see people at the end of their life.

https://www.looniedoctor.ca/2018/08/11/spending-wisely/

-LD

#101 VGRO and chill on 03.28.21 at 4:42 pm

An old coworker of mine said that the founding fathers of the USA had discussions about creating a democracy. That they knew it wouldn’t last.

“The problem with democracies,” they lamented, “was that over time, people vote for more and more services from the government, and eventually the nation goes bankrupt. Once an entitlement program is in place, it is almost impossible to remove it. So they grow and grow until the inevitable happens.”

#102 A Dollar is a Dollar is a Dollar on 03.28.21 at 4:43 pm

Canadian corporations and individuals are currently dodging something around $30 billion in taxes. Perhaps much more.

Every. Single. Year.

That’s pretty much the entire deficit pre-covid.

Here’s some reports on that.

https://globalnews.ca/news/5403203/canadian-corporations-tax-dodge-11-billion-canadian-revenue-agency/

https://www.cbc.ca/news/business/cra-tax-gap-foreign-holdings-1.4726983

What to do?

Life in prison (or the death penalty if Canada changes to that) and total confiscation of all wealth is necessary to address this. Nothing less.

We’ve got to stop playing games and ignoring the horrific privilege of the wealthy in Canada.

The times they are a-changing.

https://www.youtube.com/watch?v=e7qQ6_RV4VQ

#103 millmech on 03.28.21 at 4:55 pm

#63
They can not tax the wealthy because they will be voted out, homeowners are the new wealthy. Only 30% are not wealthy and we rent.

#104 Billy Buoy on 03.28.21 at 4:57 pm

If anyone was so silly to think all of the possible tax changes were not coming before covid, you were living in fantasy land or totally clueless.

Demographic numbers and debt numbers never lie…whaaaaaay before covid. Years before.

If you hadn’t been prepared before you are too late.

Read a few books, some non main stream media sites once in a while and you can actually learn something vs what the pablum shoved down your throats overwise.

#105 Flop... on 03.28.21 at 5:00 pm

Retirement overseas?

I recently ran this edited comment below, and when I first read the article I was surprised how low the barrier to entry was in some countries.

Then again, some of the countries wanted you to have serious retirement income before they will let you in.

You have to click on the link and then they give some good information on each of the top 25 countries as things stand at the moment.

Last time I checked I was eligible to live and retire in Canada, Australia, New Zealand and Fiji.

I think the best thing to do is to work myself to death in Canada for the sake of other people’s indulgences…

M46BC

The Best Countries To Retire In 2021.

——————————————————-

“Panama has previously topped the International Living index for a number of years and remains an outstanding retirement destination. In addition to the Central American country’s low cost of living, fabulous climate, beaches, amenities and healthcare, Panama provides seniors with unparalleled benefits and discounts such as 25% off utility bills and half-price movie and show tickets. Expats need only be in possession of a Pensionado visa, which is available to anyone with a monthly income of $1,000 (£735) or more, to reside there.”

“Falling down the rankings this year, Portugal is still the premier destination in Europe for expat retirees and tops the 2021 index for housing – accommodation in the country is affordable and of a high standard – and climate. Non-EU citizens can obtain residency on the proviso they show evidence of a regular income and valid health insurance.”

https://www.msn.com/en-us/money/news/top-countries-for-americans-to-retire-to-in-2021/ss-BB1d32ap?li=BBnbfcL

https://www.msn.com/en-ca/money/other/top-countries-to-retire-in-revealed/ss-BB1eu8Lj?li=AAgh0dA#image=25

#106 FreeBird on 03.28.21 at 5:06 pm

Cutting Indian news segment on JT. If only our media could be this honest:

https://youtu.be/tB9vacrJE2U

#107 joe on 03.28.21 at 5:10 pm

“Which does zero for deficit reduction or budget balancing. Revenge taxes are for jealous people. – Garth”

From your original post…these all look like “revenge”

Ending OAS universality.
Implementing the 10% luxury tax on cars, boats, RVs and other consumer items selling for a hundred grand or more.
A wealth tax of 1% on family assets of twenty million plus, as the NDP demands.
An extra percentage point on the GST/HST to help pay for the CERB.
Scaling-back RRSP contribution limits, which most benefit high-income earners.
A super-tax bracket for those making over $400,000 a year.
A hike in the capital gains inclusion rate, from 50% to 66% (or more).
A speculation tax on vacant residential property.
Changes in stock option treatment to eliminate deferred tax.

#108 WTF on 03.28.21 at 5:10 pm

Given The Hyperventilators proven inability to tell the truth or manage our $ prudently, instead, choosing to spend billions on pet projects to get reelected, a few rules need to be invoked. The Bolshevik lite party now backstopped by the formerly far left NDP have caused more then enough multi generational damage already. Ontario is the Canary in the coal mine (appropriate since the genius behind both Govts spending sprees is Gerald Butts son of a coal miner) who already guided McGuinty/Wynne/Trudeau down the path of fiscal insanity so we know already where this is going. Rinse repeat.

We cant continue to be profligate simply because of an agenda we didn’t vote for. Time to start living within our means for future generations.

1:Nuke the CBC: Saves 1 billion AND no more watching “reporters” prostrating themselves to Lord Fauntleroy and his latest breathless, mechanical, pedantic, AND usually fabricated, pronouncements dreamed up at the Woke factory whose sole purpose is to generate saccharine talking points to anesthetize the unwashed into considering Hari Kari.

2: Rewrite the tax code, take a specific percentage. Done. Reduce CRA staff. I know, probably unpopular with the average tax slave.

3: 25% Reduction of Fed Govt Employment by early retirement/ buyouts/attrition/Like the private sector has been doing for decades…..Of course, it will be tough as apparently ,according to some wise folks here in the peanut gallery, there is no deadwood in the bowels of the most efficiently run employer in Canada.

4: All government expenditures over a certain amount MUST be vetted by Auditor General for full disclosure of costs/benefits/methodology before implementation.

5: Until the ship is righted. Govt spending must have corresponding reductions to make it net neutral.

6: Vaccinations? Where are those effing vaccinations?

7:Money Laundering, Stop turning a blind eye. Deal with it.

8: CMHC, kill it. Not required, Banks can hold the risk.

9: Independent BOC Governor, no more toadies.

10: Immigration? Needed and welcomed BUT Wonderboy wants 400k this year. Seems excessive. unless you think they will vote for you.

11: Human Rights Tribunals, gas em, we have a court system based on LAW, Abolish these idiotic kangaroo “courts” with a vested interest in maintaining the status quo.

12: GG. we need one of those like a we need a elementary teacher as PM Oh wait….

13: Rampant housing increases. Screw the next generation is hardly a strategy.

Will be tough to find anyone who doesn’t do paid WE rallies for their families benefit, throw principled women under the bus. Dance like an idiot wearing a costume in a foreign country with a 5000 year history making them hate you. But try we must.

If only…..

https://greatcanadianspeeches.ca/2020/09/19/paul-martin-hell-or-high-water-budget-1995/

#109 IHCTD9 on 03.28.21 at 5:11 pm

#63 Diebel Ryan on 03.28.21 at 2:06 pm
I think it’s about time time the wealthy ( thats pretty much all commentors on this blog) payed more tax. As working individuals it sure feels like we pay for everyone.
Fill up rrsp allowances – yeah right. We are very good with our money. Couple income of 130K. Managed to save about 30K over the last ten years with little debt but there is nothing left for saving. You guys call yourselves savers like you are doing something others can’t. Obviously you’ve been given a large advantage by one means or another but instead of helping others with that money, most of you spend your time trying to hide it for yourself. The taxes I pay take all my extra money, the dollar value may not be as high as “lord business “ pays but the percentage of my income is way higher. When is the last time lord business had to decide which bill to pay and which to hide from ? I am working poor. Work five days( usually 6) , rest for two ( usually one) which clearly is not the case for money who follow this blog.
We’ll keep our heads above water for now with little to no plan for the future but at least we are greedy goblins shim shamming our way to an elite lifestyle.
Shame on all of you. Pay your bloody taxes, enjoy the ammenities around you without the guilt of knowing that it’s the working poor who support you all.
Hide your money- shame
——-

Interesting. Our hhi is similar to yours. You are correct, we are definitely bottom feeders on this particular blog. Nonetheless, 2 kids raised, private schooling for both, paid for sfd, zero debt, toys in the garage, portfolio should just sneak into 7 figures by retirement. Been comfy for about 10 years now (things were TIGHT up to about 38 years old).

Now, nothing is too fancy here at IH headquarters, but why the diff?

#110 FreeBird on 03.28.21 at 5:18 pm

#97 UCC on 03.28.21 at 4:24 pm
#8 Inequity on 03.28.21 at 11:52 am
#2 KNOW IT ALL

Go to prison… the gov will take care of all of your needs.
———

Unsurprisingly this is exactly what some elderly folks are doing in Japan.

https://www.bbc.com/news/stories-47033704
——————

I saw this on another doc video and it’s tragic. Thx for posting. BBC is actually doing some good stories incl on China incl Uighur detention camps esp for women. It’s very disturbing. Out of respect for the blog and readers I won’t give link but just let any interested look it up. Like the elderly in Japan once you know you can’t not.

#111 End Cap Gain Exemptions on Primary Residences on 03.28.21 at 5:18 pm

I think capital gains on primary residences should be taxed similar to all investment properties. Allow land transfer and property taxes to be deducted from the profit.
The preferential treatment for land owners should end; many of them ARE the new rich and don’t require government charity.

#112 VladTor on 03.28.21 at 5:19 pm

Garth and #92 IHCTD9 – Thank you very much.

Now I understand what they can discuss. Discussing starting from words “What if claw back”…. we decrees to 65K or (much better and cool!) to 50K and instead 128K we make 100K or (much better and cool!) change to 90K. Question is only one – how many people can be in touch and how much money will be profit. I’m thinking this discussing just waste of time. Not too much people will be involved. Need to find something else for balancing budget.

#113 Another Deckchair on 03.28.21 at 5:20 pm

@63 Diebel Ryan

Yeow. What do you spend your money on?

My partner and I have been tracking *every penny* spent over the last 6 or so years.

Before we started, and we made a list of where we *thought* money went, needless to say, it’s an eye opener to see where it actually goes.

We ended living on one income, and saving the other.

Your choice. Sail Away’s comment above is 100% spot on.

#114 AmbiVasu on 03.28.21 at 5:21 pm

“A hike in the capital gains inclusion rate, from 50% to 66% (or more)”

Can someone please tell me:
If the above capital gains become a law, can it be applied to the whole of 2021 or after the budget is announced

#115 DC on 03.28.21 at 5:22 pm

I like many of those initiatives.

#116 Mr Canada on 03.28.21 at 5:27 pm

T2’s Liberal Friends at BMO and RBC are already churning out the soviet propaganda article this week how the principle residence exemption “has” to be put on the table to stop the housing craze and narrow the wealth inequality…or as our Russian BA History Major Finance Minister “Free Money-Land” said, we need to have an inclusive budget….

#117 Ustabe on 03.28.21 at 5:28 pm

#88 Sail Away on 03.28.21 at 3:30 pm

#63 Diebel Ryan on 03.28.21 at 2:06 pm

Re: woe is me
———–
DB, instead of bemoaning your raw deal in life, your time would probably be better spent learning from the successful posters on this site. Many, if not most, have been in your exact situation- which is actually pretty good from a global perspective, if you can change your mindset to one of gratitude and plenty instead of scarcity.

Most people work. Not everybody learns. You can choose to do both.

As much as it is fun to stick a pin in you when you get too insulting, condescending or full of yourself I must say when you are right you are right. Good post, 5/7.

When I had employees I expected them to bring me solutions, not problems. Some understood that, some didn’t. The ones that get it are sure happier.

I’m happy and I sure don’t have to contemplate a move to a crap hole third world country to think then I will be finally happy.

#118 Paul B on 03.28.21 at 5:33 pm

I totally agree with Garth’s assessment that we have a spending problem, not a tax problem. If the spending problem is not addressed, then nothing will help. Shutting down the economy through unnecessary lockdowns based on flimsy statistical models was the worst decision possible.

#119 jenna on 03.28.21 at 5:39 pm

What…potentially end OAS universality ???

Insanity…let’s grow the tent cities with granny and grandpa.

Note to liberals…please give back all the taxes I paid over the years…in order to ensure OAS keeps on.

So funny…I never took one cent from CERB…thought being financially responsible was a civic responsibility. Suppose Trudeau never got the memo !

#120 UCC on 03.28.21 at 5:40 pm

#106 WTF on 03.28.21 at 5:10 pm

2: Rewrite the tax code, take a specific percentage. Done. Reduce CRA staff. I know, probably unpopular with the average tax slave.

———–

Easy fix. Eliminate income tax completely and raise the HST. It’s simple to manage, simple to collect and broad. Don’t punish productivity with income tax. That is a pure productivity engine…….

#121 Stoph on 03.28.21 at 5:47 pm

#88 Sail Away on 03.28.21 at 3:30 pm
#63 Diebel Ryan on 03.28.21 at 2:06 pm

Re: woe is me

———–

DB, instead of bemoaning your raw deal in life, your time would probably be better spent learning from the successful posters on this site. Many, if not most, have been in your exact situation- which is actually pretty good from a global perspective, if you can change your mindset to one of gratitude and plenty instead of scarcity.

Most people work. Not everybody learns. You can choose to do both.

—————————————————————-

DB, you do realize that with a household income of $130k you’re in the top 10% of Canadian household incomes don’t you?

https://www.thekickassentrepreneur.com/household-income-percentile-calculator-for-canada/

That means that you’re one of the ‘rich’ whose incomes politicians will be targeting.

If you feel overworked, underpaid and overtaxed now, just wait!

#122 Well travelled on 03.28.21 at 6:11 pm

Love your column Garth and want to thank you for providing it for more than a decade. As a long term reader, I am always amazed at the number of comments complaining about Trudeau and yet, my money is firmly on the Liberals getting a majority in the next election. You can only imagine how badly I want to be wrong!

#123 Penny Henny on 03.28.21 at 6:23 pm

I just bought a couple of options for a vacation to PVR for Jan 2022.
The deal was pretty good and all I have to put down as a deposit is $50 per person, the balance is due the first week of December.
Air Canada is offering protection for cancellation, name change and rebooking at no extra charge as well as price protection.
PVR mid Jan for $1588/ person, 4.5 Star hotel, all inclusive. Well you do the math.
If travel policies are still stupid come December I just cancel and lose $100.
Anyone looking to travel in fall or next winter should have a look at this.

#124 The West on 03.28.21 at 6:35 pm

Garth,

I suggest quarterly awards for the comments section on this blog.

They should include:

1) Most words submitted
2) Most controversial poster (Deleted don’t count)
3) Richest, according to their posts
4) The Tin Foil hat
5) Most likely to be the PM of Canada someday
6) Funniest
7) Biggest Doomer
8) Most Feminist
9) Most Generational Bias
10) Best Advice

#125 Dr V on 03.28.21 at 6:38 pm

83 Ponzie

maybe I clarified my meaning at 74, but in case I haven’t, do you recall income trusts and their original tax treatment?

I did not have any, but I think many seniors did, and they enjoyed the proceeds with no tax paid!

I think the ruling conservatives broke a promise (explicit or implied) that these would remain untaxed.

To me, that was too good of a deal. The change in tax treatment was a “no brainer” whether good/bad or right/wrong.

#126 Penny Henny on 03.28.21 at 6:39 pm

#92 IHCTD9 on 03.28.21 at 3:58 pm

Garth—>Ending OAS universality.
——-

Right now everyone qualifies, provided your income is not over 70-some grand per year in retirement. I’d expect a shrinking of those eligible based on retirement income.
////////////

Max OAS for those who have resided in Canada for 40 years past their 18th birthday.
It is prorated for those that have been here less.

#127 Stone on 03.28.21 at 6:40 pm

#63 Diebel Ryan on 03.28.21 at 2:06 pm
I think it’s about time time the wealthy ( thats pretty much all commentors on this blog) payed more tax. As working individuals it sure feels like we pay for everyone.
Fill up rrsp allowances – yeah right. We are very good with our money. Couple income of 130K. Managed to save about 30K over the last ten years with little debt but there is nothing left for saving. You guys call yourselves savers like you are doing something others can’t. Obviously you’ve been given a large advantage by one means or another but instead of helping others with that money, most of you spend your time trying to hide it for yourself. The taxes I pay take all my extra money, the dollar value may not be as high as “lord business “ pays but the percentage of my income is way higher. When is the last time lord business had to decide which bill to pay and which to hide from ? I am working poor. Work five days( usually 6) , rest for two ( usually one) which clearly is not the case for money who follow this blog.
We’ll keep our heads above water for now with little to no plan for the future but at least we are greedy goblins shim shamming our way to an elite lifestyle.
Shame on all of you. Pay your bloody taxes, enjoy the ammenities around you without the guilt of knowing that it’s the working poor who support you all.
Hide your money- shame

———

The only difference between you and me is that I delayed some of my gratification in favour of investing versus buying shit I didn’t need. That was with post tax money. Yeah, I’ve probably paid more tax than all the gross income you’ve made and probably will make in all your life.

If you had some impulse control, you’d be tooting a very different tune.

The elite. That’s funny. Self made with some impulse control. You’re actually jealous about the self made and those with impulse control. Unbelievable.

#128 Sail Away on 03.28.21 at 6:44 pm

#115 Ustabe on 03.28.21 at 5:28 pm

———-

Thanks Ustabe!

#129 Shirl Clarts on 03.28.21 at 6:47 pm

BC will start collecting PST on Netflix next month. Everyone’s bill just increased a minimum 56 cents.

#130 God on 03.28.21 at 6:49 pm

#63 Diebel Ryan on 03.28.21 at 2:06 pm

Obviously you’ve been given a large advantage by one means or another but instead of helping others with that money…

===

God helps those who help themselves.

Please don’t be a dumbass. I didn’t place you on this earth to have a loser mindset.

Why do so many of you not appreciate your free will?

#131 Paterfamilias on 03.28.21 at 6:51 pm

# 94. Interesting comments. I grew up in Dunbar. Can’t afford to live there now, so don’t. The Province of B.C. has in place a Speculation Tax, supposedly directed at such properties as you describe and the City of Vancouver has an Empty Home Tax, supposed to target exactly the same properties (btw, there is a ‘snitch line’ – just go to the City of Vancouver Empty Home Tax website). If the situation you describe is persisting, it would seem solid evidence of how much these taxes accomplish.

#132 Brian Ripley on 03.28.21 at 6:51 pm

TAX REFORM – Millenials please take over before Gen Z does… the sooner we do this the better.

Advantages of a Flat Rate FTT (Financial Transaction Tax) October 2010 by:
Simon J. Thorpe, CNRS Research Director (DRCE), CerCo (CNRS-UT3), TMBI (Univ. Toulouse), BrainChip Inc

A Flat Rate FTT is fair.
A Flat Rate FTT is cheap to implement.
A Flat Rate FTT would be virtually impossible to avoid.
Removing conventional taxes would make tax havens largely irrelevant.
A Flat Rate FTT would provide a level playing field.
A Flat Rate FTT taxes those actors in the economy who can pay.
The abolition of taxes on profits would be a major incentive to the economy.

“The global financial crime wave is no accident Financial crime is a feature of our global financial system not a bug.” said pioneering economist Susan Strange. ​November 28, 2018.

Canada ranks 21 out of 112 jurisdictions after Switzerland (1), the USA (2) and the Cayman Islands (3). Financial Secrecy Index 2018 Results

​“Canada and the U.S. are the two most lax jurisdictions in the world when it comes to the rules for preventing the incorporation of anonymous shell companies. What’s more, corporate service providers operating in those two countries are less compliant than those operating in Ghana, Lithuania, or Barbados, and follow laxer rules than those in Malaysia or the Cayman Islands.”

See my dog eared post from 2012 that highlights the foundations of the APT tax proposal—a small, uniform tax on all economic transactions—involve simplification, base broadening, reductions in marginal tax rates, the elimination of tax and information returns and the automatic collection of tax revenues at the payment source. The APT approach would extend the tax base from income, consumption and wealth to all transactions. (Wikipedia)

http://www.chpc.biz/history-readings/apt

Edgar L. Feige, Professor of Economics Emeritus at the University of Wisconsin-Madison and his post grad team developed an Automated Payment Transaction Tax model that would reduce the total tax required to less than 1% of each side of every financial transaction to create a neutral net government revenue stream based on late 90s early 2000s U.S. economic data.

Less than 1% !

Suppose we found out that in Canada we needed at this moment 3% to produce a revenue neutral government tax then:

If you earned $100,000/yr that’s $3,000/yr tax paid automatically (no filing needed).
And if you spent $70,000/yr that’s another $2,100/yr paid automatically (no filing needed). Hence your annual tax would be $5,100/yr or 5.1% of your income and you still have $30,000 in net revenue savings as well as any assets that you purchased in the $70,000 spent.

POSITIVES
Strong dollar due to economic stimulus attracting foreign investment where no income or excise taxes exist.
Very low interest rates due to extra savings by individuals and attraction of foreign investment capital allowing lower cost capital and infrastructure expansion.
Budget elasticity for government including the ability to respond to special demands such as war or national emergencies.
Eliminate budget deficits with minor adjustments in an already extremely low tax rate.
Eliminate accumulated national debt through same mechanism if desired; further strengthening the currency.
Multiplier effects of economic stimulus creating greater numbers and value of transactions in an upward spiral reducing rates or allowing more services.
Incentive to move toward a “cashless” system.

NEGATIVES
Public insensitivity to expansion of government budgets and commensurate regulation.
Very low interest rates for people relying on secure, fixed sources of income.
Loss of tax incentive for charitable contribution. People will have more wealth to give but must do so without economic advantage.

​Implementation of this elegant and simple idea in Canada would allow Canadians to create an original, authentic social organization that would eventually be copied by all other nations. Let’s apply the power of the internet to get this Automated Payments Transaction Tax idea into the mainstream and into application. Canadians, write your Member of Parliament.” BR

My apologies for continuing to beat this drum, but I have not read a reasonable argument against this Automated Payment Transaction Tax model, and I have sent links to Professor Feige’s work to media and other social influencers, but so far crickets.

#133 Flop... on 03.28.21 at 6:55 pm

Tonight on HLN network.

How it really happened.

Bernie Madoff: Most Hated Man, Part 1, 1hour show.

Bernie Madoff: Who Else Knew? Part 2, 1 hour show.

I think I know how it ends, but I might learn something new about the journey along the unpaved road to hell…

M46BC

#134 TurnerNation on 03.28.21 at 6:56 pm

Did this weblog think ever it would be presiding over the chronicling of the economic destruction of Kanada?
All of ON QC under severe and crippling Grey, Red economic warzones. No end in side.

The US Border is closed. Returning citizen travellers are assumed to be enemy combatants and locked down for days in wartime quarrantine camps. This is WW3. Supply chain is being attacked globally too. Classic techniques.

Remember, the Bank of Canada said it is awaiting the right ‘crisis’ to roll out its new E-Currency.
Buckle up.

-How are those economic lockdowns coming along?

.Chile imposes lockdowns to fight new Covid wave despite vaccination success (theguardian.com)
.Macron will announce full lockdowns in France, Wednesday, schools to be closed too.(ladepeche.fr)
.Canada budget deficit swells to C$268 billion over first 10 months of 2020/21Economics (reuters.com)

— Learn how the ‘news’ works. Predictive . The mandatory travel ‘health’ pass polled low in Global’s poll last week. Solution ?
‘Fakes tests’ means we need that digital travel pass right?? Look it’s a done deal . It always was. Planned YEARS in advance All we have left is a slow drip into a global techno-tyranny.

.Border officials have nabbed 30 people trying to enter Canada with fake COVID-19 test results (cbc.ca)

.The Biden administration is working to develop a “vaccine passport” that will allow Americans to travel and enter businesses that require proof of vaccination -WaPo

– Seen elsewhere:

“Toyota motor manufacturing told employees that April 5th if you refuse mandatory WEEKLY covid testing then you go home without pay. You will stay home until you comply. The people are mad and we don’t have any union or help”

………..
Hmm that crazy leaked document this weblog gave airtime to, supply chain break down by Q3? For now we have the Panama Canal. Other parts of the world might not be so lucky. This is War folks. Supply chains cut off.

“Syria’s Ministry of Petroleum and Mineral Resources said the blockage of the Suez Canal had “hindered the oil supplies to Syria and delayed arrival of a tanker carrying oil and oil derivations to Syria,” state-run SANA news reported.”

“The Suez Canal jam could cause shortages of toilet paper, coffee, furniture, and other imported goods.
Depending on how long it takes to move a hulking 224,000-ton freighter called the Ever Given – said to be bigger than the Empire State Building – that ran aground on Tuesday, shoppers could see a shortage of numerous items.
It will affect “basically anything you see in the stores,” Lars Jensen, an independent container-shipping expert based in Denmark, told NBC News. [link to http://www.yahoo.com]

#135 Planetgoofy on 03.28.21 at 7:01 pm

#58 VladTor on 03.28.21 at 1:58 pm
#37 Dr V on 03.28.21 at 12:54 pm
A speculation tax on vacant residential property.
– no-brainer
——–
Actually very brainy! But! – it is depends how tax organized. Should be sliding scale for tax to prevent speculation. For instance: first year 2%, second -3%, third – 5% and so on. Rule in addition – if you sell your empty property during second year and buy new one which is empty – tax for your new empty house which you buy in second year will start from 3%. If you sell/buy in third year – tax start from 5% etc. If somebody buy your property which was empty 3 years and had empty tax and keep it empty – he/she has start tax 5% for first year. Rules like this will kill empty property from owning forever.

Which does zero for deficit reduction or budget balancing. Revenge taxes are for jealous people. – Garth
————————–
EXACTLY Garth.
If people want to own a second home, have it empty pay the tax on it annually…That’s their prerogative. There’s speculation in many asset classes.
Just a clueless statement indeed.
We live in a society that has endless envy/jealously now. Its a free enterprise system, some are smarter and have a better work ethic..

#136 BC Renovator on 03.28.21 at 7:05 pm

Garth, how about one of your inspiring posts regarding the Market that silences current market conditions. She looking ugly and Volatile, and the narrative and noise is even worse

#137 Bob on 03.28.21 at 7:07 pm

The minute that guy leaps off the ledge, his furture is certain 100%.
Unless, Superman swoops him up, 1 second before he hits the ground.

Contrary to what movies and comic books would have you believe, Superman’s swooping in to “save” you at the last second would be fatal. It ain’t the fall that kills you. It’s the sudden stop at the end. I’m sure there’s a lesson about momentum and inevitability in there somewhere.

#138 A Ccountant on 03.28.21 at 7:33 pm

What they should do to raise major tax and slow down the real estate frenzy is simply make residential real estate subject to 5% GST, end the exemption. Then give first time buyers a limited credit for GST. I also think they should cap the principal residence exemption at $250,000 per individual for life. In Vancouver there are people who made multiple millions of tax free principal residence gains.

#139 Mattl on 03.28.21 at 7:36 pm

My family pays 6 figures in income tax and received a whopping $600 in pandemic payments. The amount of waste was incredible – 16 YO’s getting 2K a month, businesses that don’t need support getting 30K interest free loans and wage top ups.

I suspect this pandemic will cost my family a few hundred K in extra tax over the next 3 decades.

#140 Squirrel! on 03.28.21 at 7:42 pm

Dreams!

https://twitter.com/OdedRechavi/status/1376278767446994945?s=19

#141 Planetgoofy on 03.28.21 at 7:42 pm

Jesus I’m paying my fair share….Tax that is…paid millions.
Problem you are Correct…. and there’s a huge sucking sound from…..
Oversized gov.
Way to much waist money that just goes up in flames (because gov has no accountability but to promise and spend beyond their own understanding)
Way too many that contribute NOTHING.
Socks quotes are retarded just like him.
“The budget will balance itself”
“We have RECORD low interest rates” (for now) His way of justifying a massive black hole of debt.
Here we are…
I’m getting some wine while I design my bunker.

#142 Steerage superman on 03.28.21 at 7:53 pm

#137 Bob on 03.28.21 at 7:07 pm
The minute that guy leaps off the ledge, his furture is certain 100%.
Unless, Superman swoops him up, 1 second before he hits the ground.

Contrary to what movies and comic books would have you believe, Superman’s swooping in to “save” you at the last second would be fatal. It ain’t the fall that kills you. It’s the sudden stop at the end. I’m sure there’s a lesson about momentum and inevitability in there somewhere.
…..

T2 thinks he’s superman…he’s gonna save us all! Aren’t we lucky!

The dollerette dudette is in awe…

https://globalnews.ca/news/3835267/justin-trudeau-superman-halloween-2017/amp/

#143 Cici on 03.28.21 at 7:56 pm

Lower the RRSP contribution limit? Why can’t they just keep it as is but put a cap on the maximum qualifying income level? Well, there goes my working hard and saving for retirement strategy. Ahh screw it, I’ll just take out a mega mortgage… or two or three, then join the free lunch club.

I’m really surprised at your data on high-income earners though. You keep reminding us how many RE agents there are in some of the big markets, and with the 40% year-over-year price gains and another 26% gain priced in for this year, I would expect much higher numbers. Especially since they are getting 5% commission on each and every sale.

In a year of record house sales, something sounds terribly askew. If each agent in Toronto or Vancouver sells just two houses a year, they’re making over well over $300,000. And this year we have record sales flying off the shelves from the far edges of the West to East coasts. I’d be keen to see the stats in terms of number of sales to agents’ incomes.

#144 Colin on 03.28.21 at 7:57 pm

Hey Garth, I know you really love us deplorables in steerage here, but whazzup?

I just watched a Toronto tv newscast. Over barely one hour, there were four ads (yep, 4!) ordering me to move to Nova Scotia!

“If you can do your job from anywhere, do it from here”

I found this story on CBC about this.

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

So, I’ve thought it over, and am ready to move!

I can be in Lunenburg April 1 (no, not a joke).

I’ll be happy to rent your basement for $400 monthly. I won’t use your personal bathroom/shower (that would be gross!), but will be fine to share with Dorothy.

Just let me know what time of day is best for unpacking, ok. (I’ve got a lot of hydroponic gear and grow lights for my cannabis business that will need careful unloading.)

See you soon!

#145 Wrk.dover on 03.28.21 at 8:11 pm

I own a more than one piece of riverbank and more than one van, so I’ll be good.

But hey Garth, you know my shtick by now, would you like to ghost right my book ‘how to live on air” ?

It might outsell your other titles after this budget passes!

#146 yvr_lurker on 03.28.21 at 8:12 pm

There is no need to wring your hands with anxiety over what will or what will not come to pass with the upcoming budget. There is nothing that the average citizen can do, except find a way to use their own initiative and drive to increase their earnings (if need be) and knowledge, by becoming the top in their field (hopefully not in anthropology or feminis studies as this will not be conducive to bringing in $$).

T2 and his gang don’t have the same pragmatism as Chretien and Martin (both of whom I really liked). Of the long laundry list,

Ending OAS universality.
Implementing the 10% luxury tax on cars, boats, RVs and other consumer items selling for a hundred grand or more.
A wealth tax of 1% on family assets of twenty million plus, as the NDP demands.
An extra percentage point on the GST/HST to help pay for the CERB.
Scaling-back RRSP contribution limits, which most benefit high-income earners.
A super-tax bracket for those making over $400,000 a year.
A hike in the capital gains inclusion rate, from 50% to 66% (or more).
A speculation tax on vacant residential property.
Changes in stock option treatment to eliminate deferred tax.

I largely don’t care too much one way or the other. What I do care about is that the next generation of citizens (our local kids) have an equal opportunity to be able to achieve some measure of success and have the same playing field as I did (growing up in a family where having a couch and a washing machine on your porch was considered normal). To this end, in my view it is okay to

1. Nix completely the idea of Pharmacare (as this is unaffordable and largely benefits old people who have already had so many benefits from a lifetime of low housing affordability etc… If you have not saved enough $$ and are now 75, well frankly too bad…)

2. Yes, with the idea of keeping and enhancing child benefits for local families so that these kids are not living in poverty and have a decent chance at a good education. Why do we always think we need to increase immigration by large amounts every year?

3. If Taxes need to be raised, apply it to the trust fund and dividend set (ie T2 and his friends) and increase the capital gains tax to 75%. Decrease tax on income, but increase that on property owners (speculators and flippers) who have multiple properties. Ban foreign ownerhip of residential housing full stop, no exceptions. Increase the GST two basis points as Chretien’s time, so that everyone pays the covid bill if they can’t moderate their desire to over-consume (leaving basic items untaxed).

#147 Nonplused on 03.28.21 at 8:13 pm

#49 Bob in Hamilton on 03.28.21 at 1:33 pm
“So do we really have a tax problem, or a spending issue?”

I’m surprised the question even has to be asked….but there are still many in this country who still have no clue as to what the right answer must be.

———————————

I’m pretty sure the question was rhetorical.

#148 Ustabe on 03.28.21 at 8:21 pm

Tax the churches…its what God would have wanted.

Tax assets not income. Both corporate and personal.

Raise the GST…don’t want to pay the tax don’t buy stuff.

Any professional association members, doesn’t matter: fire, police, engineers, drywall folks, union member of any persuasion, teacher, etc. take any malfeasance awards out of the respective pension plans not via tax payer bailouts.

Direct the CRA to go where the money is, not where it is easiest to go.

#149 Fortvna on 03.28.21 at 8:22 pm

Every day that passes I think about leaving this country more and more…

#150 Gg on 03.28.21 at 8:29 pm

Garth—> Which does zero for deficit reduction or budget balancing.
Revenge taxes are for jealous people.
—–

Raising Capital gains inclusion is exactly that. It has been shown to raise very little revenue and potential large costs to the economy when corporations can’t raise the capital they need Good Luck But I suspect a “budget balance itself “ prime minister would understand that

#151 Cici on 03.28.21 at 8:31 pm

So, taxing inheritances seems to be a popular theme today. But, aren’t estates already taxed at death in Canada? Does that mean inheritances should be taxed twice?

I’m wondering what that would actually accomplish in real terms? Since all that most Canadians have left at death is the family home, doesn’t that usual tax-free capital gain already become taxable anyways? And aren’t those inheritance windfalls mostly used by the kids to get into real estate themselves or to pay off crippling mortgage debt? Would taxing those gains cause a real estate slowdown? Or would elderly parents just take out another heloc for those final years and “gift” the rest to the kids ahead of time before the taxman could touch it. I bet anything “gifting” would become a very popular strategy.

#152 Nonplused on 03.28.21 at 8:33 pm

#124 The West on 03.28.21 at 6:35 pm
Garth,

I suggest quarterly awards for the comments section on this blog.

They should include:

1) Most words submitted
2) Most controversial poster (Deleted don’t count)
3) Richest, according to their posts
4) The Tin Foil hat
5) Most likely to be the PM of Canada someday
6) Funniest
7) Biggest Doomer
8) Most Feminist
9) Most Generational Bias
10) Best Advice

——————————————

I can do that so Garth doesn’t have to:

1) Most words submitted – TurnerNation
2) Most controversial poster (Deleted don’t count) – TurnerNation
3) Richest, according to their posts – Sail Away
4) The Tin Foil hat – Dolce Vita
5) Most likely to be the PM of Canada someday – Millennial Realist
6) Funniest – COTTAGERS STAY THE HELL AWAY
7) Biggest Doomer – Nonplused
8) Most Feminist – Hmm, that one is hard, probably Brian Ripley because he still believes in the wag gap
9) Most Generational Bias – All the millennials
10) Best Advice – Nonplused

#153 Ballingsford on 03.28.21 at 8:34 pm

I’m too old to worry about this stuff anymore. Soon to be retired and the millenials can look after things afterwards. They were part of creating this mess.

#154 cuke and tomato picker on 03.28.21 at 8:37 pm

I read a quote today that said “we don’t need better leaders we need better citizens” I take this to mean first do the best for your family, your neighbourhood ,your community, your province ,and this wonderful country CANADA that we are fortunate to live in and enjoy. We will all have to do our part to reduce our debt whatever it takes.

#155 mike from mtl on 03.28.21 at 8:50 pm

Hate to point out to those ‘soak the rich’ you’ll never get them, they own deferred capital gains in shares of the corps they own/run, and have offshore Caribbean residences. My employer CEO is basically an alien who probably does not collect a local income.. and there’s no way to get a slice.

Earning a large domestic income is for idiots, you get taxed to the max and get vilified for being ‘rich’.

Personally this year I paid far more in taxes and fees than the ‘average’ Canadian household before tax. CRE loves to nail folks like us lower on the pole to not be able to shift our earnings to other means.

#156 NoName on 03.28.21 at 8:54 pm

#152 Nonplused on 03.28.21 at 8:33 pm

FUNNIESET — COTTAGERS STAY THE HELL AWAY

wrong
FUNNIESET — mayor of milton,

you can print this and put it on a fridge!

#157 DON on 03.28.21 at 8:58 pm

It appears obvious now that the bubbles will be left to burst on their own. Then no one party is responsible. It can all be blamed on COVID.

After the election…a majority can take bold measures, especially Trudeau in his last term.

#158 Ballingsford on 03.28.21 at 9:00 pm

So we are in debt for 1 Trillion dollars.

Every GST 1% increase brings in $5 billion. Increase it by 10% (so 15% GST). That’ll be an extra $50 billion a year in revenue.

Keep it there for 20 years and the $1 Trillion principal will be paid off. Our income taxes can be used to pay the interest part during that period.

Then after 20 years, Canada will have zero debt. We get a fresh start. Eezey peezey!

#159 Trudi Woods... on 03.28.21 at 9:01 pm

…stats on income of boomers vs. millials speaks volumes….people of boomer age diss on the kids all the time….what they forget is these same kids are sold them a bill of goods that just didn’t work and forgot to let them think…think what they really wanted…even old …well generally a young boomer like me know a life worth living is like the life you want…no?

#160 Faron on 03.28.21 at 9:04 pm

Anyone following fallout from Friday’s whoo-de-do? It’s fun when a massive bank has to remind everyone that it’s fully capitalized… In case anyone was wondering…

https://www.nomuraholdings.com/news/nr/holdings/20210329/20210329.pdf

Tomorrow could be interesting in the markets. Hang tight.

#161 Andy on 03.28.21 at 9:17 pm

The debt will never be paid back, it’s paid for by printing new money and devaluing the currency. What needs to be controlled from this point on is inflation, not the debt.

Even if you disagree with the theory strongly, I highly recommend reading “The Deficit Myth” by Stephanie Kelton if you haven’t already. It gives a good overview of Modern Monetary Theory, which is essentially what we’ve just been thrown in to.

#162 baloney Sandwitch on 03.28.21 at 9:39 pm

Great article today. Clarified a lot in my mind.

I am all for taxing the social media and tech companies – that is where the money is. HST needs to be raised as well as raise capital gains esp. on principal residence over a threshold.

#163 Cici on 03.28.21 at 9:41 pm

#67 Diebel Ryan

Umm, when my ex and I were together, we had that same annual income. And we both paid taxes while simultaneously maxing our RRSPs and TFSAs, or at least coming very close.

You and your wife need to do a budget and stick to it. You are spending too much in at least one category. Probably housing. Buy less house next time? Rent like we did?

What, you wouldn’t dare rent or forego the annual sun destination vacations? Yeah, that’s what I thought. Choices, choices, choices.

#164 Doug t on 03.28.21 at 9:43 pm

#154 cuke

Nooooo we actually do NEED better(much better) leaders – quotes from Readers Digest don’t count dear – and Noooooo “we all” don’t have to be picked apart by T2 and his lame a** team like road kill by vultures

#165 leebow on 03.28.21 at 10:09 pm

Come one people. You all are worked up like Carrie at the prom. At least they won’t touch your top hat deductions.

It’s gonna be alright, I promise.

#166 Reality is stark on 03.28.21 at 10:16 pm

Like I have said all along, OAS gets clawed back for anyone making over $70,000, and property taxes will be allowed to skyrocket.
You can cry all you want but governmental worker power over you will enhance. They are the new ruling class and you will overpay them until you die.
They’ll pull the wool over you focusing on the “rich”. Sad fact is that those lavish pensions that have been bolstered by a 25% overpayment of wages and benefits for the last 30 years are killing you.
Do the math on that. It should make you sick to your stomach.
No one in Canada is able to address the elephant in the room.
When there are outrageous waiting lists for people trying to get a public sector job, lower the pay until balance sets in. A basic economic tenet.
That would be rational but most Canadians are obsessed with “social justice” but bereft of common sense.

#167 Squire on 03.28.21 at 10:21 pm

#106 FreeBird on 03.28.21 at 5:06 pm
Cutting Indian news segment on JT. If only our media could be this honest:

https://youtu.be/tB9vacrJE2U
————————————-
Ha ! Best post of the night

It is obvious our media protects sock boy.

#168 45north on 03.28.21 at 11:41 pm

From April of 2019 until the end of that year Ottawa spent $10.6 billion more than it took in. That’s called the ‘deficit’, which is then added to the debt – so your children can grow up, find work and pay interest on it.
From April 2020 until three months ago – the same 10-month period – the feds spent $268.2 billion more than was collected. Yes, a 25-fold increase in the deficit. Never happened before. It pushed the debt to $1.09 trillion, a sum equal to half the economy. Also a record.

and as the deficit gets bigger, the value of assets goes up and so does the cost of living. People with assets get richer. People without them, get poorer because their cost of living goes up. Wealth inequality gets worse.

So do we really have a tax problem, or a spending issue?

answer: a spending issue

I’ve gone on about Shared Services. Shared Services is the government department that supplies IT services to the federal government. It was created to save money. Its budget is over a $1 billion a year. It was supposed to save money by providing a centralized e-mail service. The e-mail servers cost maybe $10,000 each. Obviously, Shared Services has not saved any money and it never will. It’s not easy to fix it. The hardest part is to instill a spirit of frugality in the civil service. Which runs counter to the spirit of reckless spending in pursuit of social justice.

#169 Zen Investor on 03.29.21 at 12:29 am

Trudeaus Covid response has collapsed into a free for all of gross incompetence.

https://torontosun.com/news/local-news/levy-fully-vaccinated-traveller-fined-3750-for-refusing-hotel-stay

People are dying and you’re after photo ops. I’m not a big UN guy, but if ever there was a need for a foreign force to occupy Canada and protect our citizens against the ravages of a vicious dictatorship, it’s now.

Cheerleaders, shame on you.

#170 V on 03.29.21 at 12:59 am

Time to tax the 4 in 10 , they said we are All in this together correct??

#171 Nonplused on 03.29.21 at 1:19 am

#156 NoName on 03.28.21 at 8:54 pm
#152 Nonplused on 03.28.21 at 8:33 pm

FUNNIESET — COTTAGERS STAY THE HELL AWAY

wrong
FUNNIESET — mayor of milton,

you can print this and put it on a fridge!

—————————————-

Well I am not going to call you “wrong”, but I will remind you that humor is in the mind of the beholder.

#172 Nonplused on 03.29.21 at 1:32 am

Ok, time for some conspiracy theories, so get out the tin foil.

Everybody got their heads wrapped? Good. Take a minute if you need…… …. ..

What if the “Ever Given” situation blocking the Suez Canal was not an accident? Maybe it was sabotage? “Wind”? Please. It has never been windy before?

I mean think about it: Why hasn’t this ever happened before? Why did it happen to a US ally? Potentially bankrupting the largest shipping company in the world? Why doesn’t it affect trade between Iran and China, but significantly cuts or reduces oil supply to Europe?

Hmmm. Asymmetric warfare anyone?

I am sure the CIA will figure it out but they won’t tell us.

In the meantime, whatever the reason, 2 is the new 1 at the grocery store because even Ikea is saying this is going to affect things. As if we didn’t have enough supply chain problems already.

#173 slick on 03.29.21 at 1:35 am

#29 roger home inspector
‘I’ve known people personally that absolutely… and I mean absolutely… could not afford vacations specifically but they borrow to do just that because, well, they deserve it.’

I believe sunwing had a financing program where you put a few bucks down, and financed an all-inclusive over the next 10 months. 2 months of payments for the next down payment then onto the hamster wheel again.
I can’t imagine a monthly budget with a constant line item for ‘vacation’.

As far as house sizes go; banks don’t make near enuff from a $100K mortgage as a $500K mortgage. Keeping up with the Joneses is expensive. Include all the fees, and bank charges. A buck fifty to swipe a card???visa skimming 3% to move money electronically??

#174 Gg on 03.29.21 at 1:37 am

Modern monetary theory
Is not modern. It’s as old as finance
It’s not monetary and it’s not a theory
What it leads to is the debasement of your currency
No one notices that because every other country is doing it and we measure the currencies relative to each other.
Why is that important? Because if you measure it relative to something that is not easily reproducible or deflated by technology then you can suddenly see the collapse of your currency. Real estate is a good example of such an asset. This isn’t a real estate bubble inflating it’s a currency collapsing

#175 Diamond Dog on 03.29.21 at 4:52 am

Why?

Because we have an unsustainable system. – Garth

In a system that is without change, this is correct. Our system does go through several evolving changes though, each one having the power to dilute debt and there are several.

One such change is inflation. With inflation comes the dilution however slowly or quickly, of debt. Of course, it also dilutes PPP or buying power so “inflate away” is not a working recipe for managing debt. Another systemic change that can dilute debt is demographics. Age… education… health… population and population all by itself can’t fix the old ball and chain of debt but! Coupled with decent systems of education and healthcare, high levels of immigration can jack GDP numbers diluting, readers guessed it, DEBT.

My own personal favorite is good old fashioned innovation! California, 5th largest GDP in the world. Not bad for a mere state. Cali is anything but miners, drillers and hewers of wood the way Canada firsters and Wexiters (Wexit, it all seems so long ago now. Same faces as anti maskers? Sounds right) talk themselves up to be and yet, with a Cali population similar to our own, boasts a 3.2 trillion GDP (U.S. dollars). That’s only a GDP a mere twice the size of Canada’s:

https://en.wikipedia.org/wiki/California

Cali is also the most taxed state in the U.S. and leads the U.S. with debt of course, what else ( but compare Ontario’s debt per capita with Cali, uh, um… you don’t want to know):

https://www.businessinsider.com/the-10-most-debt-ridden-states-in-america-2011-10

But I wander. Is there a way out of our Canuckian debt? Sure there is. Cut spending where we can, immigrate more people, invest in innovation (that means health and education not merely through budgets but with regulation) and with larger numbers try to earn our way out of this mess.

Does this mean a different federal government? Likely, yes. Oh, they are all for immigration but 2020 was a complete disaster for the books. Our current government was a problem to the solution on several levels. Liberals gave tens of billions to people who didn’t need it and overspent on those who did. Did I say 10’s? Maybe more than a hundred with a B. This is a government that monumentally begs to be replaced on so many levels and those in the know know it. What, with the WE scandals and disgruntled wagon burners and

Lets stop right there. I must formally apologize for such an off color remark. It’s 2021, not 1970. This is the age of the Washington football team of the NFL formerly known as… something else. Times have changed. There is ever fast growing awareness to equality and it’s twin, fairness as the rightful counter to discrimination in all of its ugly forms. It has been said in high minded circles that “equality is the indispensable virtue of democratic sovereignty”.

I could almost meditate right now, now where was I. Right, talking about that former minister bitch shit disturber

OMG! Once again, I must formally apologize this time for my misogyny! It’s 2021, the era of “me too” and women’s rights at the forefront of today’s misgivings. I will step up and do better with another plug for equality in general. It’s not a mere ideal, equality is a virtue for darn sakes! So please forgive (also a virtue I might add) and I will try at least somewhat, to be less critical with glory seeking centers of attention in the future. What’s the Niyama Santosha, “acceptance of others”, yes, yes, Whoever is unjust, let him be unjust still. Whoever is righteous, let him be righteous still. Whoever is filthy, let him be filthy still. Listen to the words long written down, When the man comes around.

https://www.youtube.com/watch?v=0aAeif20Vc0

Fortunately, Conservatives are the only realistic party that can form a government besides the now failed Libs. Unfortunately, this is a party that still won’t officially recognize man made climate change (52% said so last week or so, not impressed). On top of that, Conservatives don’t see the world as overpopulated. Consume away. Human population growth is endless apparently or to dial down the rhetoric innuendo a tad, “we just haven’t hit it yet”.

This means more babies and less abortions! Family planning, not that important, babies paper over debt, “consume away” so we can drill, dig and hew. A party exemplar for the world, so visionary and multi dimensional. It’s about as realistic as “Canada First” or any other mini me effort to follow what some orange hair riot leader would cook up for a donor buck (the riot plan was, wait for it, 4 year old). Yup, realistic like Wexit and mask protests and whatever else inspirational Russian trolls brew for the easily led :

https://en.wikipedia.org/wiki/Russian_web_brigades

I started out hopeful, I know I did. Canadian macroeconomics, grrr.

#176 under the radar on 03.29.21 at 5:02 am

Some confusion out here.

The principal residence does not become taxable on the death of the owner. A person is deemed to dispose of all property the day prior to death. The PR exemption still applies. Any taxes owed by the deceased are from the deemed disposition of capital property or from executors selling assets which may have a taxable capital gain. An inheritance is not taxable because its not income. Ontario imposes an Estate Administration tax which is a tax on the value of the deceased assets which are being included in Probate. Private wills, joint tenancies and other mechanisms are widely used to minimize or even avoid estate admin taxes and probate. There is no legal requirement in Ontario to probate a Will.

#177 Tom from Mississauga on 03.29.21 at 5:51 am

Went on YouTube to find a fix for a company software program, next time I went on YouTube I got an ad to immigrate to Germany. Germany in March 2020 apparently copied our Express Entry program (the goose that laid the golden egg). Global competition is heating up for those deplorable 1%ers that everyone hates but produce the bulk of the goods and services. Read more:

https://www.make-it-in-germany.com/en/visa/skilled-immigration-act

#178 Rosco on 03.29.21 at 6:37 am

Why should we think up more ways to tax our own selves to pay for Trudeau’s deficit spending.
Should we not think of way’s to stop this guy’s spending before it’s not too late already.
And don’t limit foreign ownership of houses here because we may want to buy a house somewhere else our own selves soon and need somebody to swap with.
And what’s wrong with halving a cabin at the lake for a 2nd home anyhow. Property taxes are too high already.

#179 BillyBob on 03.29.21 at 7:42 am

#67 Sail Away on 03.28.21 at 2:09 pm

The best time to exit with a lot of nonreg assets is during a recession when investments are depressed leading to lower deemed disposition.

Research and planning is important.

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

Your points are taken for those with assets trapped in-country. But it also underscores the “other” best time to exit is when you’re young enough to hold few or no assets and build your fortune elsewhere.

I’m certainly encouraging my younger Canadian relatives to at least consider possibilities outside the borders. If you’re going to exchange your time for money why give so much of it to a government that clearly places no value on it? It’s far beyond the usual grumbling about “government waste” now. It’s utter dereliction of duty and even the slightest concept of stewardship.

But, there are always opportunities for the adaptable. As the Jaguar would say, it’s a wonderful time to be alive!

#180 the Jaguar on 03.29.21 at 8:16 am

It costs $24 billion a year. – Garth

Absolutely criminal.

#181 Do we have all the facts on 03.29.21 at 8:17 am

If you view the Canadian population as a team with a vested interest in stimulating growth of the Canadian economy it seems counter productive for our Federal government to discourage citizens with surplus capital to invest from participating.

Rather than imposing additional taxes on citizens with capital to invest a more proactive approach would be to encourage their investment in expansion of the Canadian economy. All citizens benefit from economic expansion and economic expansion cannot happen without billions of dollars of additional investment. Our governments cannot invest in economic growth without incurring additional debt so a prudent solution would be to encourage the participation of Canadians citizens with capital to invest.

Viewing wealthy Canadians in a negative light is like criticizing a well paid quarterback from throwing too many touchdown passes. Our most pressing objectives coming out of the Covid 19 crisis are economic growth and the creation of employment opportunities. We need teamwork to meet these objectives and Canadians with capital to invest are essential members of our team.

Canada has no shortage of investment capital. What we lack are initiatives that will focus capital on expansion of the Canadian economy.

Wealthy Canadians must be encouraged to invest in the future of all Canadians and I am not confident that the imposition of additional taxes is conducive to future economic growth.

#182 Steven Rowlandson on 03.29.21 at 8:18 am

Did you all enjoy the party? Remember it well because the chances of it being over for good are excellent.

#183 Do we have all the facts on 03.29.21 at 8:20 am

If you view the Canadian population as a team with a vested interest in stimulating growth of the Canadian economy it seems counter productive for our Federal government to discourage citizens with surplus capital to invest from participating.

Rather than imposing additional taxes on citizens with capital to invest a more proactive approach would be to encourage their investment in expansion of the Canadian economy. All citizens benefit from economic expansion and economic expansion cannot happen without billions of dollars of additional investment. Our governments cannot invest in economic growth without incurring additional debt so a prudent solution would be to encourage the participation of Canadians citizens with capital to invest.

Viewing wealthy Canadians in a negative light is like criticizing a well paid quarterback from throwing too many touchdown passes. Our most pressing objectives coming out of the Covid 19 crisis are economic growth and the creation of employment opportunities. We need teamwork to meet these objectives and Canadians with capital to invest are essential members of our team.

Canada has no shortage of investment capital. What we lack are initiatives that will focus capital on expansion of the Canadian economy.

A quantum change in direction is overdue.

#184 millmech on 03.29.21 at 8:39 am

#160 Faron
Aechego Capital Management, had leverage 16 billion to 80 billion and got margin called. Already buying calls on a bunch of those companies affected ,puts were deep in the money on Friday. Price drops of 50% on some of the big players.
A 35 Billion dollar margin call, I have bought 20k in calls on the sudden sale of these holdings.
How much are you in for,just curious.

#185 Immigrant man on 03.29.21 at 9:01 am

There is a saying where I am from. It can be roughly translated like this: “if one cannot learn with their head, they will learn with their ass”. It means that your average Canadian will have to suffer before they learn to elect fiscally responsible gov. I don’t even think electing PCs for the next round would help (not that they would win). For meaningful changes to happen, there has to be a hard landing. So hard that it would transmit enough energy to the primary leaning organ!

#186 Phylis on 03.29.21 at 9:27 am

Our beloved mayor didn’t even need to show up to pump the latest round of sales. His affects are now ever present. He must be a genius.

#187 Sail Away on 03.29.21 at 9:29 am

#184 millmech on 03.29.21 at 8:39 am

A 35 Billion dollar margin call, I have bought 20k in calls on the sudden sale of these holdings.

———–

Hmmm… You think VIAC, TME, DISCA, etc. are in a flash crash? Maybe, but it will depend how far-reaching this is.

Credit Suisse, Nomura Warn of Financial Hit From Fund Selloff https://www.wsj.com/articles/japans-nomura-says-u-s-client-owes-it-2-billion-shares-fall-15-11616992085

#188 Guelph Guru on 03.29.21 at 9:36 am

Tax the rich please. This always sells before an election.

Mr. Trudeau and Miss. C F, pl don’t forget the $2000 economy boost package per tax payer like our neighbours. You want to get elected right?
Dont worry about the budget as a wise man once said “The budget will balance itself”.

#189 IHCTD9 on 03.29.21 at 9:41 am

#165 leebow on 03.28.21 at 10:09 pm
Come one people. You all are worked up like Carrie at the prom. At least they won’t touch your top hat deductions.

It’s gonna be alright, I promise.
___

For most on this blog you are correct. Trudeau is definitely on our side (ie, gainfully employed, asset owning, portfolio building, comfortably retired, fairly well off people).

But for the rest of Canada who work menial low wage jobs, you’re probably wrong. Trudeau is definitely not on their side. The assetless are 100% going to sink in this country if there is ever an attempt made to get spending, deficits, and the debt under control.

The median income in Canada among prime working Canadians (25-54 years old) is a modest 47,800.00.

If you zoom out to include all ages, it drops to only 36,900.00, Obviously, half the workforce makes even less than that. This bottom half has been stomped into the dirt like a tent peg by the Trudeau Liberals – and it’s effectively permanent. Their wages won’t climb, hard assets like houses are now way out of reach, and they have little left at the end of the month to invest, if any.

Canada normally just cracks 60% for labour participation (pre-Covid), and total debt is in the 2 Trillion range all in. If the budget is to be balanced – everyone will be hit with big increases – not just “rich folks”. If not, then our deficit spending is structural, the debt will grow until servicing costs exceed every other line item on the budget, and eventually, some future government will have to choose between huge new taxes on every worker in Canada – or watching the Loonie burn.

Trudeau is the turning point where the long term prosperity enjoyed by Boomers and Gen X ends. Post Trudeau Canada is now a place where wages stagnate, industry exits, budgets explode, and where you need to be a 1%’er to own a home. If you are an assetless low wage earner, from here on in you are done like dinner. The Liberals have managed to screw up enough policy that wages alone are now insufficient to cover life in Canada. Today, you need to be a wealthy hard/liquid asset owner.

Remember to thank Trudeau and his obsequious Liberal Cabinet for all their help, kids.

#190 George S on 03.29.21 at 9:46 am

Some countries use a high sales tax as a way of funding things. Norway has a 25% VAT (a hidden version of the GST) which helps explain why they have a huge “rainy day” fund from all of their oil revenues. Most countries have a surprisingly high sales tax.
If Canada changed the GST to a 20% VAT it would go long way towards balancing the budget. I can imagine there would be quite a bit of complaining.
Quite a few countries have a substantial “Inheritance Tax”
Capitol gains tax on primary residences would be a bit of an issue because they are bought with money that has already been taxed and there is no opportunity to deduct depreciation and financial and maintenance expenses from taxes on income.

Most “rich” people pay quite a bit of tax already and tend to employ a lot of people. When someone is deemed to be “rich” by society it doesn’t necessarily mean that they have an income of a billion dollars a year, it means that they own a billion dollars worth of assets that generate income for them. It would be like calling every person that has a pension that pays them $50k per year a millionaire.

#191 Dharma Bum on 03.29.21 at 10:06 am

Given the depths of financial despair that our beloved but clearly flawed PM has created for this country, all the tax reform ideas being bandied about WONT. MAKE. A. DENT.
We are so deep into it that multitudes of future generations will shoulder the burden and the pain for a century.
Boomers?
Meh.
We’re good.

#192 leebow on 03.29.21 at 10:26 am

#189 IHCTD9

I’m just trying to be a useful emotional support blog dog. Of course we have problems. But who cares.

Trudeau can’t create jobs for people but he can toss money at issues. And that’s what he does. And that’s what people want. Don’t let this concern you. You are not in control of what people do and how they vote.

My hope is that his policies will lead to an unexpected result and somehow kill this stupid Canadian risk aversion. If you can’t lose in this system, may be you should take more risk. What will it take for people to understand this simple truth?

#193 Ponzius Pilatus on 03.29.21 at 10:37 am

177 Tom from Mississauga on 03.29.21 at 5:51 am
Went on YouTube to find a fix for a company software program, next time I went on YouTube I got an ad to immigrate to Germany. Germany in March 2020 apparently copied our Express Entry program (the goose that laid the golden egg). Global competition is heating up for those deplorable 1%ers that everyone hates but produce the bulk of the goods and services. Read more:

https://www.make-it-in-germany.com/en/visa/skilled-immigration-act
———————
From filling out a form to getting the visa is a long way.
Syrians and Turks are getting priority.

#194 Another Deckchair on 03.29.21 at 10:39 am

@168 45North

“Obviously, Shared Services has not saved any money and it never will. It’s not easy to fix it. The hardest part is to instill a spirit of frugality in the civil service.”

Half of my working life was as a public servant, half other companies (including my own)

I concur. I figured that I was there to “serve the public”, while others were there for the salary and pension…

(Fartzie – sure the pension is ok, when I joined, though, my salary was close to 1/3 that I was making as a contractor; sometimes I still wonder why I joined… but it’s not all about the money, right??)

#195 Ponzius Pilatus on 03.29.21 at 10:45 am

BillyBob and his friends are like the Jehovah Witnesses.
Constantly trying to convert people.
Thank you. I gave at my church already.

#196 Ponzius Pilatus on 03.29.21 at 10:50 am

It’s a “no-brainer”.
Tax the F-150 owners.
And tax them hard.

#197 IHCTD9 on 03.29.21 at 11:07 am

Local angler just reeled in a big one. A house he finished up in late 2019 with about 350K all in just sold to a GTA couple 200km away as an investment property for 650K.

It is only these low interest rates that allow this craziness to happen. I’m sure our “leadership” in Ottawa realizes the bomb building that is going on right now. If rates ever get up, the drop in values, and the monthly payment increase; is going to have the banks and owners crapping bricks. Yet the Libs let the bomb continue to grow in size.

If the Liberals want to prevent a potential gigantic mushroom cloud in the next decade or two – now is the time to stop hand-sitting and start doing something for once. Folks are piling in on multiple properties like crazy – and every single one of them bought in 2021 will become cinder blocks around necks if rates ever go up, and/or values drop.

The longer Trudeau lets this go on – the bigger the seismograph reading will be down the road.

#198 NoName on 03.29.21 at 11:14 am

#172 Nonplused on 03.29.21 at 1:32 am

just finished watching video that explains difference between sheep and boat, at lest an american definition. So rule is if lean inside a turn its a boat, and if lean outside its a sheep.

just fyi in last 20 yrs sheeping sheeps grew 4x in size to the point where are now buy the looks of it to big to sale.

Oh, and you mention asimetrical warfaier… do tell me who is raging war on who here. From what i see with sheep predicament it actualy cuts deep both ways.

#199 Don Guillermo on 03.29.21 at 11:32 am

#196 Ponzius Pilatus on 03.29.21 at 10:50 am
It’s a “no-brainer”.
Tax the F-150 owners.
And tax them hard.
**************************************
Socks would never risk Quebec votes.

https://driving.ca/auto-news/news/the-10-best-selling-vehicles-in-quebec

#200 Faron on 03.29.21 at 11:42 am

#187 Sail Away on 03.29.21 at 9:29 am

#184 millmech on 03.29.21 at 8:39 am

A 35 Billion dollar margin call, I have bought 20k in calls on the sudden sale of these holdings.

We have to be careful talking anything day trading in the comments section of a blog dedicated to long term investing.

Might be a good deal on those stocks. But, they also appear to have been pumped over the past 8 months, so perhaps now they are back at a more correct valuation? The drops they experienced put them back to early 2021 levels, still a LOOOOONG way to go if they are overvalued.

I don’t trade options directly. I did buy a vix futures ETN at open and closed it out for 4% gain using my “fun money”. That’s about as “convex” as it gets in my neck of the woods.

What’s the expiration on your calls?

#201 Axehead on 03.29.21 at 12:04 pm

#196. PP. Do you practice at being this stupid or does it come naturally?

#202 Damifino on 03.29.21 at 12:13 pm

#189 IHCTD9

Post Trudeau Canada is now a place where wages stagnate, industry exits, budgets explode, and where you need to be a 1%’er to own a home.
———————————

Post Trudeau Canada will also be a place where our fabulous legacy of energy independence is tossed away by politicians of all stripes chasing the twin ghosts Solar and Wind.

#203 Stephen G on 03.29.21 at 12:18 pm

It looks like the Fed Libs are pushing for a wealth tax. My local MP, Nathanial Erskine-Smith wrote in today’s Toronto Star that he is advocating a “one-time” wealth tax on high net worth individuals (>$10MM in net assets). In addition, he is proposing looking at taxes on extreme wealth transfers (inheritance taxes) and also changing tax treatment of investment income.

#204 IHCTD9 on 03.29.21 at 12:29 pm

#196 Ponzius Pilatus on 03.29.21 at 10:50 am
It’s a “no-brainer”.
Tax the F-150 owners.
And tax them hard.
___

I don’t own an F150, but as a 2500HD owner – I must protest…

I pay my “fair share” through gas taxes!

#205 Dr V on 03.29.21 at 12:33 pm

196 Ponzie

“Tax the F-150 owners”

I guess you don’t own a full-size truck. You’ll still pay $20k for a 10 yr old one with close to 200km on it in my neck of the woods.

Ever filled one with fuel? Close to $200 at current local
prices.

So it seems to me the owners are taxed highly already. I used a full-sized truck for work for 25 years. The F150s/1500s are a happy medium between the smaller trucks (which don’t get all that much better mileage) and the 3/4 – 1 tons which are needed for heavier applications and loads.

I’ve managed a deal to retain my truck upon retirement.
I just keep aware of how much I am using it, and do multiple errands with it on a single outing for
efficiency. It sat all weekend, and I don’t know if it will go out today.

#206 Sail Away on 03.29.21 at 12:37 pm

#203 Stephen G on 03.29.21 at 12:18 pm

It looks like the Fed Libs are pushing for a wealth tax. My local MP, Nathanial Erskine-Smith wrote in today’s Toronto Star that he is advocating a “one-time” wealth tax on high net worth individuals (>$10MM in net assets). In addition, he is proposing looking at taxes on extreme wealth transfers (inheritance taxes) and also changing tax treatment of investment income.

————

Damn right it would be a one time tax, since nobody will be here to tax next time.

#207 Dr V on 03.29.21 at 12:42 pm

190 George S

“It would be like calling every person that has a
pension that pays them $50k per year a millionaire.”

That’s actually a pretty good approximation. average overall returns of a B & D portfolio historically are 7%, but once even modest inflation is taken into account, a 4% withdrawal rate is generally recognized as sustainable for 30 years.

The pension income is fully taxed however, while the investment income can be tax-advantaged under current rules. The investments can also be passed on to heirs.

Pension values are usually understated, as the funds are planned for the “average” pension holder, who lives to maybe their mid 80s? The private individual should plan for 5-10 years longer.

#208 Looking Up on 03.29.21 at 12:43 pm

#184 millmech on 03.29.21 at 8:39 am
#160 Faron
Aechego Capital Management, had leverage 16 billion to 80 billion and got margin called. Already buying calls on a bunch of those companies affected ,puts were deep in the money on Friday. Price drops of 50% on some of the big players.
A 35 Billion dollar margin call, I have bought 20k in calls on the sudden sale of these holdings.
How much are you in for,just curious.

———-

I would be very careful buying options. You need to realize that as a retail options trader your odds of making money over the long term are very slim. Market makers put alot of “fudge” in the options pricing that makes it very difficult to overcome in the long term. Also many other factors work against you ie. Theta decay, implied volatility crush etc.

Your odds are better if you are a net seller of options but again it costs quite a bit to hedge those short positions. You will probably make money for a while if you sell naked options 1 or 2 strikes out of the money, but the one day when the trade goes massively against you (and it while) you will probably get wiped out.

I traded options for years and the only guys I ever encountered that made money with options over the long term were arbitrage traders. They took advantage of missed priced options but now with sophisticated software that market makers have it’s almost impossible to find these opportunities.

There’s a reason Warren Buffet calls options and other derivatives “weapons of mass destruction”

#209 BillyBob on 03.29.21 at 12:47 pm

#195 Ponzius Pilatus on 03.29.21 at 10:45 am
BillyBob and his friends are like the Jehovah Witnesses.
Constantly trying to convert people.
Thank you. I gave at my church already.

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

Hmm something got lost in translation from Grumpy Austrian to English there. Converted from…to…?

I’m sorry you don’t agree that it’s a great time to be alive. I’m uncertain as to your motivation to constantly display that here?

Then again, who cares? Was 18C here today, supposed to hit 22C on Wednesday. My greatest challenge (beyond trying learn a language with 7 declensions) is trying to decide which bike paths to explore.

It’s nice to be able to cast a vote in Canada without actually having to care about the outcome.

#210 NEVER GIVE UP on 03.29.21 at 1:21 pm

#17 DLT INC on 03.28.21 at 12:12 pm
Every time you bring up the fact that the rich pay most of the taxes I get really pissed off. Of course the rich pay most of the taxes because they make most of the money. Dare you compare the amount of income the rich make compared to how much the other 90% are making. That would tell a much clearer story. As far as always saying that the rich provide so many jobs. Of course their companies employ so many people But if the government, which by the way represents the rich and their interests more than they do the average people, didn’t allow oligopolies to exist because they won’t enforce their antitrust laws, there would be a lot more competition, a lot fewer super rich and a lot more equality and a lot less taxes being paid by the 1%. True capitalism does not permit the type of inequality we see today in the world. Quit being such a lap dog of monopolists who just love those who suck up to them wish dubious arguments which ignores the fact that our democracy is dominated not by the will of the majority but the power of money that purchases our politicians.
==================================

Well said!
The legislated poverty of our poor is ingrained in every level of government right down to civic governments that impose anti business laws so invasive that a poor person cannot sell goods on their person!
My kids were budding entrepreneurs in their early teen years.
When the Vancouver Symphony of fire was on in 2006 they sold those little flashing light pins with Canadian flags, on their person before the show.
2 of them came back to me and one was crying because the police threatened to confiscate their goods. the oldest who was 16 at the time was stopped and photographed by Vancouver bylaw enforcement! He took off and tried selling in another place and finally was stopped again by the determined enforcement officers who threatened him with fines.
Well my kids were obviously involved with criminal activity!
No wonder we live in the most oppressive business environment whereby most people seek jobs rather than face regulations!
We have sanitized our society according to the agenda of NIMBY’s.
Only Singapore exceeds our level of boring society! There you cannot even chew gum!

#211 morrey on 03.29.21 at 1:32 pm

Smart Working: What is it? What are its advantages and disadvantages of it?

so WFH is not going to end.

#212 Craig Ians on 03.29.21 at 1:32 pm

I am talking to you Mr Prime Minister Justin Trudeau, Chrystia Freeland, Liberals, NDP, Green Party etc. to confiscate, tax 100% all of Canadians RRSP’s. There is over $800 billion in RRSP’s now so that will help you alot with your big deep debt hole you tax and spend, debt masters do all the time through history of Canada. Do it.

#213 Robert38 on 03.29.21 at 1:51 pm

Hey Garth, it would be nice if you place likes to the comments, it would give us the opportunity to know which comment people like the most.

That would only encourage them! – Garth

#214 Frank Dahoy on 03.29.21 at 2:03 pm

For those that like high taxes, confiscation of property, money, a real warning for you. Once they take all the RRSP’s away like the other poster dared the them to do, they are coming for your house, condo, cottage, vacation property, rental property.

As for UBI, or annual guaranteed annual income, basic income, whatever welfare, government handouts they want to call it. You will not be able to even pay your rent, $1,400 a month to start is what they are proposing. It is peanuts while they are living on $100,000 to $500,000 a year income from government positions, jobs from many different governments, agencies federal, provincial, municipal.

Don’t forget the high benefits, pensions too all funded on the back of taxpayers and savers, investors through inflation, taxes, fees, levies etc.

#215 Immigrant man on 03.29.21 at 2:47 pm

#214 Frank Dahoy on 03.29.21 at 2:03 pm
For those that like high taxes, confiscation of property, money, a real warning for you.
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Not liking it at all! Coming from an ex-soviet country all these “take from the rich and give to the poor” just sounds way too familiar. I know the young commies… ahem I’m sorry, progressive socialists think it’s a great idea because it’s all about being fair, fair, fair. But when the gov has too much power it still ends up being not fair.

#216 condo no can do? on 03.30.21 at 11:46 am

I’ve been looking at condos in Toronto for fun this month and the last couple I saw yesterday and day before had no offers yet, close to the offer date, in a high demand area.

Not in real estate or finance but my Joe Shmoe suspicion is the recent mortgage rates hikes, modest as they are, may already be starting to flatten the cheap $-fuelled real estate frenzy sooner than later. But I may be making a hasty assumption which as the saying goes, makes an a$$ out of u and umption.