The assault

After the election comes a Throne Speech. Late in October, maybe. They’re always packed with vagueness, fluff and unicorns. Normally we’d get an economic statement of some kind, but this year the pre-Christmas session of Parliament will be too short.

So the real news will be in the budget, earlier than usual. March. Maybe even February, from Chrystia our non-financial Finance Minister. Gulp. Remember the Libs’ campaign slogan? “Forward. For Everyone.” Except if you have wealth.

The Street’s anticipating changes coming for the capital gains inclusion rate. That means profits selling rental properties, gold wafers, a cottage, stocks, ETFs and a mess of other stuff will be hit. Currently you get a deal. Half the gain on a sale is tax-free. The other half is included in annual income.

On an income of $90,000 the average tax rate is 26% and marginal rate of 31% (each dollar above 90k taxed at that level), so small capital gains would still leave you with 85% of the proceeds. Not bad.

Larger gains push annual incomes and tax rates higher. Those in the top tier (incomes over $230,000) have a marginal rate in provinces like Ontario of 53.3%. That means 73% of the capital gain are retained, while the rest is sucked off by the deities on Parliament Hill. Compared with the Hoovering earned incomes received, this is not such a bad deal.

Ironically, it was Liberals who dropped the inclusion rate to 50%. Paul Martin did that, erasing the previous 75% level as part of a $58 billion tax cut in his 2000 budget. Yes, tax cut. From Liberals. The same guys who trashed the deficit. But the Libs of two decades ago were radically different dudes from the tax-and-speed gang currently in control of the nation. Now we have red ink washing over the gunwales with a government hooked on spending and starved for more revenue while it has zero plans to ever balance the books.

Now, before we go further, let’s address this question: why are capital gains taxed less than income from employment, rent from your tenants or interest on a GIC?

A few reasons. First, by offering a lower tax rate on capital gains from investing corporate shares (or funds holding them), for example, the tax code acknowledges risk-taking. You might gain. You might lose. But the activity of putting money into jobs-creating and goods-producing enterprises is beneficial for everyone, since this grows the economy. Collecting interest from a GIC or getting paid to show up at work do not constitute the same risk.

Second, a lower cap gains rate recognizes investors are being whacked by inflation on the assets being sold. The tax applies to their inflated nominal value, so not only do investors pay a levy on the real return, but also on the inflation which has been created by central banks. Not the case for employment interest or collected rents, which is paid and taxed in current dollars.

Third, capital gains taxes are paid on money which has already been taxed. The same dollar was hit by income tax, sales taxes and payroll taxes. If invested in equities or funds, the money was taxed again in the hands of corporations, then taxed once more when shares or units were sold, generating a capital gain. Enough already. And not the case with your salary, which is taxed just once.

Fourth, capital gains tax future consumption because savings are reduced, while present consumption is untaxed. The net effect is to discourage investing and saving, and to favour spending. Not good for society as this reduces future available capital and has a negative impact on long-term economic growth. Buying a house with 20x leverage, in other words, borrows against the future. Investing in corporate assets, in contrast, puts money away for future use. Liberals used to understand that.

Okay, so now what? If the Street’s right and Chrystia drops the hammer, what avenues are available to thwart her?

Well, gains can be triggered now, of course, at the 50% inclusion rate. You can also sell off losers to claim against profits. But only sell if you planned on dumping these assets within the next few months anyway, since long-term investment goals should not be irrevocably altered by potential tax changes.

Make non-registered assets into registered ones. Contributions in kind can shift things into a TFSA or RRSP (if you have the room) from a non-reg account. Of course capital gains tax will be triggered, but you can escape transaction charges.

Obviously making full use of tax-free and retirement savings accounts becomes even more of a no-brainer if the inclusion rate jumps. Remember that the TFSA limit is $75,500 (rising to almost $82,000 next year, or over $150,000 for a couple. RRSPs are unlimited but based on earned income – up to over $28,000 this year. Nine in 10 Canadians have not maxed either, and the amount of unused room grows dramatically every year (because the masses are blowing their brains on real estate). Add in other shelters like RESPs for your kids or maybe the new FHSA for the thing in your basement, and there’s much opportunity to grow money and pay no tax. Among these the TFSA stands uniquely. Max it.

The election’s over. The people have spoken. Take cover.

About the picture: “I’ve read your blog since it started,” writes Dean. “I even went to one of your “Live Performances “ in Edmonton about years ago! This is Fitz our 6 year old Doberman-Boxer-Bulldog cross. He is a very happy and sleepy boy. He has his own instagram page too! My wife loves him more than me! Dog_with_the_lips_of_a_man. Thanks for all your good advice!”

Note to Viewers: A mysterious glitch eliminated all comments to the post which were published on September 26th. The webmaster team has attempted recovery, but thus far without success. If you stole these comments and now repent, you may leave them in a plain box at the east gate, by the moat. – Garth

71 comments ↓

#1 Philco on 09.26.21 at 9:38 pm

#74 Ustabe on 09.26.21 at 8:26 pm
#63 covid is over on 09.26.21 at 7:00 pm

If you did not bullion from a reputable dealer with documented proof of purity then you might be in for several surprises. – Garth
________________________________________

you mean “the guy” who’s selling coins and bars for $200 under spot isn’t selling real gold? who would have known.
I’ve got some gold I’d be willing to sell. Its in Heinz baby food jars on a shelf out in the shed. There is 6 or 7 of them filled to various levels with stuff we panned over the years while camping with my children.
————————————————
The man will want his fair share of that. LOL
I guess ya can flog your jewelry for cash to the local prawn shop so? Hmmmmmm
Have a good night its movie time here in BC.

#2 jimmy zhao on 09.26.21 at 9:52 pm

It was a Full Moon on election night, hence the outcome.
All the Lunatics came out to vote.

#3 CSD.TO on 09.26.21 at 9:54 pm

CSD.TO is a cool short term corporate bond etf I just found out about while researching these types of funds after reading Ryan’s post the other day.

Check it out.

#4 Garth Turner on 09.26.21 at 9:56 pm

NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.

#5 Campaign Slogans on 09.26.21 at 9:59 pm

Remember the Libs’ campaign slogan? “Forward. For Everyone.”

I was just thinking about campaign slogans the other day.

No one ever runs on this campaign slogan: TRUTH

Why not? Seems like an obvious one.

Maybe fluff it up a little bit?

TRUTH, 100% TRUE, or we’ll resign.

#6 New taxes on 09.26.21 at 10:00 pm

The comment section got taxed.

#7 Russ on 09.26.21 at 10:00 pm

Hey Philco at #1.

I agree with you on that.

Movie night is a good option for this dark & dreary evening on the Wet Coast.

This afternoon I was putterin’ in the boat shed, listening to the rain and musing… in the summer we had a week of hot weather, with temperatures 5 degrees above normal and the main stream media was hyping “heat dome”, fires forever and a climate emergency.

The first week of Autumn is 5 degrees below normal and in the news there is nothing remarkable about it. Doesn’t one enthalpy condition effectively cancel the other?

I thought about becoming a weather forecaster. No one expects them to be correct and they still get full pay for something you can’t really qualify as “work”.

Cheers, R

#8 meslippery on 09.26.21 at 10:24 pm

Right after my comment …
So damming the blog had to be blown up.

#9 The joy of steerage on 09.26.21 at 10:28 pm

As a bonus… maybe the technical glitch could nuke the past 13+ years of commentary… unless you have plans for it to find a home in the Library and Archives of Canuckastan …..which is tasked with acquiring, preserving, and providing accessibility to the documentary heritage of Canuckastan.

#10 Philco on 09.26.21 at 10:30 pm

#7 Russ on 09.26.21 at 10:00 pm
Hey Philco at #1.

I agree with you on that.

Movie night is a good option for this dark & dreary evening on the Wet Coast.
This afternoon I was putterin’ in the boat shed, listening to the rain and musing… in the summer we had a week of hot weather, with temperatures 5 degrees above normal and the main stream media was hyping “heat dome”, fires forever and a climate emergency.
The first week of Autumn is 5 degrees below normal and in the news there is nothing remarkable about it. Doesn’t one enthalpy condition effectively cancel the other?
I thought about becoming a weather forecaster. No one expects them to be correct and they still get full pay for something you can’t really qualify as “work”.
Cheers, R
————————————————
Just checked back Im #1 LOL Was in the 70s?
Hey Russ..Yes I don’t get worked up about it. Everyone seems to be pushing an agenda about EVERYTHING.
I’m hitting long beach next week with the truck and camper. I love boats too. Grew up on the water.
Yes a weather person or a broker…Not all of them are wrong all of the time ;-)

#11 e90 on 09.26.21 at 10:33 pm

Excellent post today. It’s a shame we’ve ended up with a government that is so short-sighted. If the real estate ponzi ever stalls out, it feels like we’ve got little left economically to float us (and by extension the CRA’s accounts).

Here’s hoping next time we vote for a party that understands lower taxes now makes for bigger pie later.

#12 the jaguar on 09.26.21 at 10:38 pm

It’s all my fault! I crossed over into crowded elevator fartz territory and he hit the panic button!! Oy vey!!!

#13 Nonplused on 09.26.21 at 10:57 pm

#4 Garth Turner on 09.26.21 at 9:56 pm
NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.

——————————

It’s probably them Russian hackers or maybe the Facebook fact checking team.

Side note: Of course nobody who comments on this blog is dumb enough to fall for it, but my wife recently noticed a “personality test” circulating on Facebook. The questions you have to answer to get your personality analyzed by the bot are strangely the very same security questions the bank uses. Mother’s maiden name, street you grew up on, etc. If you did happen to fill out that questionnaire well I don’t know what you should do but you are probably screwed.

Stay safe out there folks.

#14 S.Bby on 09.26.21 at 10:58 pm

Palantir bought $50 million in gold bars in August as cash pile grows

https://www.cnbc.com/2021/08/17/palantir-bought-50-million-in-gold-bars-in-august-as-cash-accumulates.html

#15 I can't take anymore on 09.26.21 at 11:10 pm

Facebook vaccine fact checker, funded by vaccine manufacturers?

https://www.youtube.com/watch?v=44B-OJcOXxc

No money in truth.

#16 Shawn allen on 09.26.21 at 11:28 pm

The notion that there should be a lower tax simply for taking a risk seems particularly dumb to me.

But not as dumb as the argument that investments are made with after tax dollars. Other than RSP what other kind of dollars do people have?

These arguments are simply self serving and no different than all the other please tax someone else arguments.

Sorry but I’m in the dollar is a dollar camp.

#17 Don Guillermo on 09.26.21 at 11:36 pm

#4 Garth Turner on 09.26.21 at 9:56 pm
NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.
***********************************
Pinche Cabrónes!! Sabotaged by either Ponzies Chinese or Taliban buddies!

#18 Jaba the What on 09.27.21 at 12:02 am

“The people have spoken”, nonsense, 52 tightly packed seats in the GTA were manipulated by Gerald Butts and his “ Super Geniuses” in far left policy advisories from China to K Street. If we recognize lies as fact we get a clearer picture as to the true political landscape of Canada. Hurry to hide this from your delicate readers, but Gerry tweeted out his involvement in the strategy, so who’s hiding what. As afraid of the truth behind the manipulation, Liberals are proud of the scam says Gerry. assume Junior same.

And, are you still going to argue against the real estate China Shock? Bigger shops are crushing the lie. Come clean, earn some respect.

https://vancouversun.com/opinion/columnists/douglas-todd-why-has-ottawa-downplayed-china-shock-on-housing

#19 Don Guillermo on 09.27.21 at 12:15 am

#7 Russ on 09.26.21 at 10:00 pm

I thought about becoming a weather forecaster. No one expects them to be correct and they still get full pay for something you can’t really qualify as “work”
***************************************

You’d do way better as a Liberal politician $ chaching!!

#20 Sail Away on 09.27.21 at 12:50 am

#7 Russ on 09.26.21 at 10:00 pm

This afternoon I was putterin’ in the boat shed, listening to the rain and musing… in the summer we had a week of hot weather, with temperatures 5 degrees above normal and the main stream media was hyping “heat dome”, fires forever and a climate emergency.

The first week of Autumn is 5 degrees below normal and in the news there is nothing remarkable about it. Doesn’t one enthalpy condition effectively cancel the other?

———

This September’s Chilcotin hunt was the wettest we’ve seen in 25 years. Full ponds, high rivers, green grass, bounteous snowberries and rose hips as far as the eye could see. Fat and abundant birds. The dogs were pointing ducks in depressions in the desert.

Nobody panicked. Nobody lit their hair on fire.

#21 Steve French on 09.27.21 at 2:14 am

What I want to know is why are Canadians not selling their $2 million dollar back alleyway micro-homes in Toronto and enjoying a luxurious retirement in ….

… Detroit Michigan.

Check it out– you can live in an absolute castle for well under a mill USD.

Which is minor pocket change for most Canadians who rode the massive real estate boom.

US $750,000 in Grosse Point, Detroit Michigan, just across the river from Canada….

https://www.trulia.com/p/mi/detroit/1920-lincolnshire-dr-detroit-mi-48203–2050526715?mid=0#lil-mediaTab

This his yours for only US $900,000

https://www.trulia.com/p/mi/grosse-pointe-park/1040-harvard-rd-grosse-pointe-park-mi-48230–2050830146?mid=0#lil-mediaTab

And Detroit has grit and character… Anthony Bourdain loved his visits there.

#22 Blobby on 09.27.21 at 2:21 am

Empty comments section? Can I play my song now?

#23 Figus Makum on 09.27.21 at 6:16 am

Today’s offering reminds me of one of Aesop’s fables, The North Wind and the Sun. The North Wind has transformed into the possible tax changes and the weary Traveller is the Canadian tax payer desperately holding on to his/her assets/income.
The harder they try to separate the two, the harder we will try to hold on.

#24 Wrk.dover on 09.27.21 at 6:29 am

Those trees (saplings?) make it look like Paul Bunyan’s dog.

#25 crowdedelevatorfartz on 09.27.21 at 8:19 am

“approximately 80 comments to this post being abducted.”

+++

Not to worry folks you didn’t miss anything.
40 of them were from Ponzie.
the other 40 were my rebuttals….

#26 Woke up this morning... on 09.27.21 at 8:58 am

#4 Garth Turner

NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.

>>>
Did a secret Chinese hacking organization, hired by Russians on behalf of Trump (but really Clinton) crack the 4096bit encryption algorithm of this site to steal all our information, IP data, location data, full name, address, blood type and of course bank account numbers and vaccine preferences?

Consider if that fictional scenario were to happen, there would be no consequences at all. Remember Equifax?

You don’t even want to news search “data breach” because you won’t believe all the millions of data breaches that go unreported by MSM, even after the results show you how bad the problem is.

Why are there no real consequences to these data breaches where companies entrusted with your personal information let it get out?

Oh, also…AlphaBay is back.

https://arstechnica.com/tech-policy/2021/09/he-escaped-the-dark-webs-biggest-bust-now-hes-back/

#27 Re:Butt Al's on 09.27.21 at 9:01 am

#25 crowdedelevatorfartz

Not to worry folks you didn’t miss anything.
40 of them were from Ponzie.
the other 40 were my rebuttals….

——–
Who were the rebuttals from crowdedelevatorfartz?

Elevator goes up empty.
Elevators comes down full with a mysterious smell? :-)

#28 TurnerNation on 09.27.21 at 9:06 am

— Economic Lockdowns. So close to normalcy guys!! So. Close.

.After 1 new case P.E.I. Health officials advise Islanders to avoid non-essential travel (cbc.ca)


— Global WW3. What have I been saying for over a year. This WW3 is for our MINDS.

https://ottawacitizen.com/news/national/defence-watch/military-leaders-saw-pandemic-as-unique-opportunity-to-test-propaganda-techniques-on-canadians-forces-report-says
“Military leaders saw pandemic as unique opportunity to test propaganda techniques on Canadians, Forces report says
A plan devised by the Canadian Joint Operations Command relied on propaganda techniques similar to those employed during the Afghanistan war.”

—-
— Even Doctors see the New System is targeting the children.

Royal College of Paediatrics and Child Health, the membership body for paediatricians in the UK and around the world
https://www.rcpch.ac.uk/news-events/news/rcpch-statement-response-cmos-advice-regarding-offering-covid-19-vaccination-all
Evidence from the UK and around the world has repeatedly shown us that children are highly unlikely to become seriously ill because of infection with COVID-19. However, since even before the first lockdown, the College has been extremely concerned about the indirect effects of the virus on children and young people, primarily because of many of the infection control measures in place.

#29 Woke up this morning... on 09.27.21 at 9:12 am

By the way…

The irony of the blog aimed “The Assault” being assaulted isn’t lost. Seems like assault with a weapon too.

You have to be careful about the name choices Garth.

May I suggest testing out the theory?

Name today’s blog post “NO COMMENT”, let’s see what happens.

#30 IHCTD9 on 09.27.21 at 9:22 am

I think I’ll be retiring as a house millionaire, or in the smoking ruins of a housing blow-out. No middle ground.

Our area has got the pedal to the floor with GTA folks piling in and setting up shop. It’s amazing to see how fast it is happening, especially given the 4 hour round trip on a good day, 6 hours on a not good one. Insane!

I guess we’ll be looking at 700K average SFD prices too eventually – same as the “bedroom” communities for the GTA West of us, and 150K+ for a building lot.

If everything holds together, and if a few things pan out – we’re going sell the bunker complex for an absolutely disgusting amount of money somewhere down the road.

#31 facts on 09.27.21 at 9:35 am

In Berlin owners of large apartment buildings have to sell their property to the government, to make rent artificially subsidized.

How is that for assault on Capitalism, free market economy?

Hail the new overlords of old collectivism.

#32 crowdedelevatorfartz on 09.27.21 at 9:42 am

Power shortages in China?

Could the boycott of Australian coal be starting to hit?

https://www.reuters.com/world/china/chinas-power-crunch-begins-weigh-economic-outlook-2021-09-27/

First Evergrande wobbles and now power cuts?

The Chinese leadership might want to learn how to walk after “100 years of humiliation” before to sprints to the finish line of world domination.

Me thinks the Chinese population might be getting a tad nervous…..

#33 facts on 09.27.21 at 9:43 am

15 I can’t take anymore on 09.26.21 at 11:10 pm
Facebook vaccine fact checker, funded by vaccine manufacturers?

https://www.youtube.com/watch?v=44B-OJcOXxc

No money in truth.

There is money somewhere…

The FDA grants use of vaccine based on manufacturer’s own studies.

#34 Faron on 09.27.21 at 9:51 am

#7 Russ on 09.26.21 at 10:00 pm

I know this is a troll, but… When did anyone say that climate change meant record crushing heat and then temp just keeps cranking up? Incredibly ignorant! Like, unfathomably so for a sailor and English language perfectionist. I’m not surprised, but wow. Happy to engage as to why, but doubtful you want to.

#20 Sail Away on 09.27.21 at 12:50 am

1000 people didn’t die either. Also, a few days ago you were just bopping into town. Now you seem to be settled back into your internet trolling gamer chair. Sounds like your chicken hunt was a rainout. Might be looking at the bright side, but seems more like you are polishing a turd.

#35 Calgary Rip Off on 09.27.21 at 10:01 am

Chrystia is an arrogant person who has no concept of self regulation. This was shown by her behaviour not long ago when she told a Saudi ruler how to do things in his kingdom. This seems all too typical of womens mentality in north america which is unfortunate.

I dont like Chrystia. All too often in Canadian politics it seems that some women try to act what they think represents men. This was definitely apparent for the person representing Calgary Nosehill in the federal election, Michelle Rempel. Its funny that behaviour deemed acceptable in women if done by men would not be accepted.

Most post I enjoy by Garth. Dont want to hear or see Chrystia.

Thanks for the investment advice.

#36 Dharma Bum on 09.27.21 at 10:06 am

#30 IHCTD9

I guess we’ll be looking at 700K average SFD prices too eventually – same as the “bedroom” communities for the GTA West of us, and 150K+ for a building lot.
———————————————————————————-

Hang on for another 5 years.

Those prices will be DOUBLE.

The GTA will be totally untouchable.

You heard it here first.

#37 I can't take anymore on 09.27.21 at 10:24 am

#33 facts on 09.27.21 at 9:43 am
15 I can’t take anymore on 09.26.21 at 11:10 pm
Facebook vaccine fact checker, funded by vaccine manufacturers?

https://www.youtube.com/watch?v=44B-OJcOXxc

No money in truth.

There is money somewhere…

The FDA grants use of vaccine based on manufacturer’s own studies.

+-+-+-+-+-+-+-+-+-+-+

Who funds the FDA?

What industry do the FDA leaders come from?

Where do FDA leaders go to after they make their “contribution” to the FDA?

No money in truth.

No integrity in our leaders or organizations at all.

Perhaps by now you also saw that the Russia/Trump thing was intact a Clinton/Democrats thing?

https://www.youtube.com/watch?v=0k6X03XvxWw

No money in truth.

#38 Felix on 09.27.21 at 10:29 am

NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.

………………………………

Cats are in control of everything. Perhaps a little more respect shown to our superior species will liberate this dogawful website.

No promises.

#39 IHCTD9 on 09.27.21 at 10:29 am

#36 Dharma Bum on 09.27.21 at 10:06 am
#30 IHCTD9

I guess we’ll be looking at 700K average SFD prices too eventually – same as the “bedroom” communities for the GTA West of us, and 150K+ for a building lot.
———————————————————————————-

Hang on for another 5 years.

Those prices will be DOUBLE.

The GTA will be totally untouchable.

You heard it here first.
___

Under normal circumstances I’d be scoffing – but our Government and Citizenry are both insane. I got 10-15 more to go, if this gasbag hasn’t been popped by then, even low-end millionaires will have trouble getting a Canadian SFD Mortgage. Nothing is impossible with RE in Canada, because no one seems to have a functioning brain.

I won’t live among crazy folks like this, so if by some miracle this bubble is still aloft in the 2031-6 range (it’d be the new normal by then), I’ll be selling and bouncing.

#40 Quintilian on 09.27.21 at 10:30 am

#31 facts on 09.27.21 at 9:35 am
“How is that for assault on Capitalism, free market economy?”

But the manufacturing of demand, CMHC, artificial suppression of interest rates, conveniently turning a blind eye to money laundering, buying mortgage-backed securities to load the risk to tax payers, subsidizing and promoting homeownership by governments is fostering a free market economy?

#41 TurnerNation on 09.27.21 at 10:39 am

Stats Can Agrees. My thesis for over a year is that this ‘reset’ going on is over control over our Travel/Movements, Breeding and Feeding. It will not be “over” any time soon.

.Pandemic may deal another blow to Canada’s population — fewer kids
Canadians are delaying and reducing their plans for children, StatsCan finds (investmentexecutive.com)

—————

(Well now we got domestic and provincial passports, armed checkpoints, still the virtual Berlin Walls. Papers please. Kanadians by and large love this New System. It Keep Us Safe.
Take a good look behind you. See that closed gate? It’s locked. A done deal. A QR code might – might – open it – for a few lucky ones. )

#42 Ponzius Pilatus on 09.27.21 at 10:45 am

#25 crowdedelevatorfartz on 09.27.21 at 8:19 am
“approximately 80 comments to this post being abducted.”

+++

Not to worry folks you didn’t miss anything.
40 of them were from Ponzie.
the other 40 were my rebuttals….
————-
Jealous?
Rebuttals?
How can you argue with the truth?

#43 Ponzius Pilatus on 09.27.21 at 10:53 am

#40 Quintilian on 09.27.21 at 10:30 am
#31 facts on 09.27.21 at 9:35 am
“How is that for assault on Capitalism, free market economy?”

But the manufacturing of demand, CMHC, artificial suppression of interest rates, conveniently turning a blind eye to money laundering, buying mortgage-backed securities to load the risk to tax payers, subsidizing and promoting homeownership by governments is fostering a free market economy?
—————————
Bravo!

#44 Planetgoofy on 09.27.21 at 11:04 am

#41 TurnerNation on 09.27.21 at 10:39 am
———-
It looks like their going to drag it out….
Kanuck snow birds concerned they cant bird south?
It would appear that even if 98% get vaxxed the same controlls may apply? Then a new varriant appears and we start all over?….the new normal?
Maybe you need to be rich or illegal to cross a boarded now…

#45 Ben Sherman on 09.27.21 at 11:04 am

Didn’t get in on Ryan’s piece on “What to do with cash” yesterday. I have a question if it’s applicable today. If all the can be done is being done, except ‘rebalancing’, because I hate generating income for Justin, what happens if you have an overflow of cash flow from dividends every month, quarterly, semi and annually that I just keep buying more of everything, and that just exacerbates the problem – ‘ too much cash ‘ that never gets smaller. Cash reappears in huge amounts . Last month , $49,000 !!

Q- when you have too much cash, what then? My passports full. I’ve already sailed around the world several times. I gave houses to all my kids. The money won’t stop flooding in. What to do?

#46 jack on 09.27.21 at 11:07 am

It’s funny that the liberals are so concerned about the future (global warming /impact of carbon), but not concerned at all about the future impact of borrowing, massive deficits, and excessive taxes. Perhaps the Liberals are actually members of the green party – when the economy collapses nobody will have any money to spend on anything so our carbon emissions will be nil.

#47 Chameleon on 09.27.21 at 11:08 am

#38 Felix on 09.27.21 at 10:29 am
NOTE TO VIEWERS: A technical glitch has resulted in approximately 80 comments to this post being abducted. The GreaterFool Recovery Team is working on the issue. Please remain calm.

………………………………

Cats are in control of everything. Perhaps a little more respect shown to our superior species will liberate this dogawful website.

No promises.

………………………………

Change the picture to one of a cat, then I’ll believe you’ve gained control.

#48 Humble Pie on 09.27.21 at 11:11 am

#36 Dharma Bum on 09.27.21 at 10:06 am
#30 IHCTD9

I guess we’ll be looking at 700K average SFD prices too eventually – same as the “bedroom” communities for the GTA West of us, and 150K+ for a building lot.
———————————————————————————-

Hang on for another 5 years.

Those prices will be DOUBLE.

The GTA will be totally untouchable.

You heard it here first.

————————-

“Dude, looks at this dump for $900K – no way this house will cost $2M in the future!” …was something I said not at all that long ago to a friend.

Guess I have to eat my humble pie.

#49 Shawn allen on 09.27.21 at 11:14 am

If there were no income tax on gains from after tax dollars then we could compound money tax free forever. Rich people would rejoice. Money could grow and be passed down to next generations. The new nobility. It’s an extremely unfair idea.

#50 Immigrant Song on 09.27.21 at 11:18 am

#41 TurnerNation on 09.27.21 at 10:39 am
Stats Can Agrees. My thesis for over a year is that this ‘reset’ going on is over control over our Travel/Movements, Breeding and Feeding. It will not be “over” any time soon.

.Pandemic may deal another blow to Canada’s population — fewer kids
Canadians are delaying and reducing their plans for children, StatsCan finds (investmentexecutive.com)

—————

(Well now we got domestic and provincial passports, armed checkpoints, still the virtual Berlin Walls. Papers please. Kanadians by and large love this New System. It Keep Us Safe.
Take a good look behind you. See that closed gate? It’s locked. A done deal. A QR code might – might – open it – for a few lucky ones. )

—————

More immigrants will be the solution.

And in this day and age one has to note that I am an immigrant. Arrived here through a process, applied, integrated, learned the language, etc.

I came at a time of fewer problems and much smaller scale of those problems. Seems like it isn’t unreasonable to address them first.

And it seems like the main problem is highlighted right in your post – that of opportunity for young people today being eroded. Seems like those already here having a shot and being able to start families and contribute to Canadian population stability or growth should be perhaps ahead of those yet to arrive – is that unreasonable to expect?

I wouldn’t have been offended as an immigrant if that metric being satisfied to a high degree ahead of my arrival. “So your house is in reasonable order and everyne has a place to sleep and a meal to eat before I arrive?”

#51 Russ on 09.27.21 at 11:28 am

Faron on 09.27.21 at 9:51 am

When did anyone say that climate change meant record crushing heat and then temp just keeps cranking up? …

——————————

Good morning Faron,

In answer to your question:
I believe Al Gore (the inconvenient truth) and Dr. David Suzuki are two gentlemen who have become very wealthy marketing their opinions on global warming.
(note the title in link below)
https://www.ctvnews.ca/sci-tech/david-suzuki-welcome-to-an-extreme-warming-world-1.2459328

Quid Pro Quo.
Will you attempt an answer to my question?

Nice troll on S.A., just remember there is a difference between fishing and catching.
When did he exaggerate on the 1000s of deaths. Did I miss that while out cruising earlier in the month?

Cheers, R

#52 meslippery on 09.27.21 at 11:29 am

Lets walk that cat backwards 90k Div. by 52 = $1730.76 per week or $43.27 per hour that’s average?
Looks like there are lots of rich people to tax.

#53 Planetgoofy on 09.27.21 at 11:35 am

#40 Quintilian on 09.27.21 at 10:30 am
————-
The more they intervein in business and markets the bigger the mess. And its huge now.
Its a competition of free give aways to get elected.
The Big snow balls rolling down the hill.

#54 Dr V on 09.27.21 at 11:44 am

Back to today’s topic, I see that Shawn (is it really him?) has also thrown in his hat along with Faron and YVR lurker as far as increasing the cap gains inclusion rate or eliminating the exclusion.

The underlying premise appears to be based on logic
(income is income) and not based on emotion (fairness
or social justice).

Extending this logic, I present the following for consideration:

1) Having one income tax rate regardless of income. This increases the incentive to work and could eliminate the need for RRSPs, as one advantage of them is the
lower tax rate that most people have in retirement.

2) The ability to write cap losses off against income from other sources.

#55 facts on 09.27.21 at 11:54 am

#41 TurnerNation
Well now we got domestic and provincial passports, armed checkpoints, still the virtual Berlin Walls. Papers please. Kanadians by and large love this New System. It Keep Us Safe.

Israel is starting to wake up. It took them the fourth shot to recognize the future.

#56 facts on 09.27.21 at 12:03 pm

This blog is quite silent about the insanity that goes down in the US under the new political leadership.

#57 Sinner on 09.27.21 at 12:08 pm

#53 Planetgoofy

#40 Quintilian on 09.27.21 at 10:30 am
————-
The more they intervein in business and markets the bigger the mess. And its huge now.
Its a competition of free give aways to get elected.
The Big snow balls rolling down the hill.
————-

Change the rules of the game? Any game? Any rules? Any time?

Is capitalism now finally morally bankrupt?

Recently I wanted to verify the 7 Deadly Sins – just to validate that Facebook bases their entire business model squarely upon them.

However, I quickly realized my thinking was too narrow. It soon occurred to me that the entire capitalist structure is based upon the 7 Deadly Sins.

#58 S.Bby on 09.27.21 at 12:14 pm

I’m liking this new self-cleaning comment section.

#59 facts on 09.27.21 at 12:15 pm

#53 Planetgoofy on 09.27.21 at 11:35 am
#40 Quintilian on 09.27.21 at 10:30 am
————-
The more they intervein in business and markets the bigger the mess. And its huge now.
Its a competition of free give aways to get elected.
The Big snow balls rolling down the hill.

The entire system is held together with patchworks.
Daily dose of mandated, weirder and weirder ideology and lies keeps these politicians fully protected from the infection of uprising.

#60 facts on 09.27.21 at 12:21 pm

#58 S.Bby on 09.27.21 at 12:14 pm
I’m liking this new self-cleaning comment section.

Looks like not only the posts, but also the DELETED function got lost in the new software dominion.

#61 Faron on 09.27.21 at 12:26 pm

#51 Russ on 09.27.21 at 11:28 am
Faron on 09.27.21 at 9:51 am

So, your rebuttal in an argument about whether climate change looks like record shattering heat, day in and day out and after making an obscure reference to enthalpy again is to post about how much money a couple of people have made promoting materials that educate about climate change? (100% of profits from Inconvenient Truth were donated BTW)

Anyhow, to reply to your distraction: perhaps you should consider the relative scales between the two guys you cite and the literal hundreds of billions that the O+G industry has saved itself by delaying action on CO2 reduction. For fun, just now, I googled the net worth of Al Gore — $300Milly. Suzuki? 25 milly. The Koch brothers? $43 B and $2 B. There are orders of mgnitude more monetary incentives for O+G dudes to promote misinformation than there is for the environmental side. Of all things, money isn’t the key driver from the climate science side or at least the scales are massively skewed toward O+G protecting its profits and using those profits to promote their misinformation. None of this is to say that the economic impacts of climate change or adapting to it are lost on policy makers and climate scientists. These are very tough issues, but ignoring the problem is never going to help solve them.

You failed to grasp my point about Sail Away’s comparison between the record wet and record hot. He’s essentially saying that the heat was comparable to the rain while, as is typical for him, overlooking the massive human health impact of the heat wave that killed over 1000 people in BC, Washington and Oregon over the course of a week. Not to mention the massive economic impacts that people like you and he should actually care about even if you are utterly callous to human suffering.

#62 IHCTD9 on 09.27.21 at 12:35 pm

#48 Humble Pie on 09.27.21 at 11:11 am
#36 Dharma Bum on 09.27.21 at 10:06 am
#30 IHCTD9

I guess we’ll be looking at 700K average SFD prices too eventually – same as the “bedroom” communities for the GTA West of us, and 150K+ for a building lot.
———————————————————————————-

Hang on for another 5 years.

Those prices will be DOUBLE.

The GTA will be totally untouchable.

You heard it here first.

————————-

“Dude, looks at this dump for $900K – no way this house will cost $2M in the future!” …was something I said not at all that long ago to a friend.

Guess I have to eat my humble pie.
____

Yeah, I quit talking like that in 2020. That’s when we crossed the line that I won’t likely live to ever see in front of me again. Monstrous debt, outrageous house prices 100’s of km from the nearest decent job market.

Then 2021 came and a sea of red in the GTA asking for more of same? We’ve lost it, and the damage done over the last two years will take decades to fix – and that’s at the point where we decide it needs to be fixed, which hasn’t happened yet. Not even close.

Scary stuff. I hope everything holds long enough for me to cash out and move a safe distance away.

#63 Faron on 09.27.21 at 12:36 pm

#54 Dr V on 09.27.21 at 11:44 am

1) Having one income tax rate regardless of income.

You are right, income is income.

A flat tax is a separate issue and is incredibly inappropriate from both logical and touchy feely points of view. Here’s one of many reasons not to do this. I choose it because it will probably resonate with you because it hits you in the pocket book. Flattening the tax curve would imply an increase in paid tax from lower earners which would mean consumption of non-essentials would drop which would crater the consumer economy that we all rely on. Fail. If nothing else, ensuring that low and middle class people retain spending power is a reason to keep tax rates on them low. It’s also another reason why increasing GST should be a non-starter. The wealthiest nations out there (barring the Saudis) ensure a prosperous bottom end of the income brackets and thus enjoy very good living conditions.

As an aside, why do all of the righty solutions somehow wind up making the rich richer? Have you ever stopped to think that that might be evidence enough that those policies are designed to strip wealth from the poorer classes?

#64 Stoph on 09.27.21 at 12:52 pm

The argument that there should be a lower tax rate on capital gains due to the risk taking nature of investment would hold water if capital losses weren’t deductible (as is the case registered accounts where you don’t have capital gain taxes nor can you deduct losses). Using the risk argument for a reduced capital gains inclusion rate is double dipping on this argument.

#65 facts on 09.27.21 at 1:31 pm

#63 Faron

What’s “prosperous bottom end” than 40% not paying income tax?

#66 Satori on 09.27.21 at 1:33 pm

Steve Fench – cause you can only live in Detroit Michigan for 6 months a year and with the board shut down, that will likely continues with every pandemic. The real question: why buy there?

#67 facts on 09.27.21 at 1:39 pm

#63 Faron on 09.27.21 at 12:36 pm

As an aside, why do all of the righty solutions somehow wind up making the rich richer?

If you watched Shitz Creek, you would know, they would end up richer even if they (re)start from broke.

#68 facts on 09.27.21 at 1:41 pm

#65 facts

Correction:
What’s more “prosperous bottom end” than 40% not paying income tax?

#69 Dr V on 09.27.21 at 3:17 pm

63 Faron – I’m not sure this is a “righty” solution, as it is just an extension of what many consider a “lefty”
solution to treat all income equally. And the richest arent rich from earned income, they are rich from cap gains, right?

You could certainly help the lower income earners by increasing the basic exemption, the disability credit, oldster credit (clawed back as income rises as blogger GTA has noted). So lets say basic exemption is $20k and
tax rate is 25%. If I make minimum wage ($15/hr?)full-time that’s about $30k/yr. Taxed $2500. If I make $60k, taxed $10k. I suppose you could still have a
slightly higher bracket (maybe 30-35%) starting at a very high income, but the trick is to keep those high earners productive with continued incentive.

Remember, we could eliminate the RRSP (more beneficial to high earners), and the TFSA for that matter, or place a lifetime limit on it, and keep
most of that wealth in a taxable account.

#70 Zak on 09.27.21 at 4:24 pm

Maxed out my wife + my TFSA to go all in on TSLA a few years ago.. Currently worth ~$340K – expect this to grow to at least $10M before I retire. Used your learnings Garth, so I appreciate that (pulled the HELOC register).

#71 pay your share of taxes on 09.27.21 at 6:50 pm

I have a suggestion for the 40% that pay no income taxes. Is it because your income is so low or is it because the policies of NDP, Liberal governments that made WSIB, welfare, GST/HST credit, GIS, Ontario certain tax credits and many other certain social programs, social income support income in Canada are income tax free. It is time for all Canadians regardless of their income sources to all pay income taxes like most other Canadians.

The governments, taxpayers of Canada have and still support you for years, decades now, the least you can do is pay income taxes at the lowest tax rates on incomes from $13,000 to $45,000 at 20.05% in Ontario, it varies somewhat from province to province.