Enough with inflation, taxes, the climate and running your F150 on beets. Let’s talk taxes.
Parliament resumes in a few days with a Throne Speech, then we get a killer budget. Don’t kid yourself. The current government is all about two things: (a) spending and (b) taxes. So what can we do to mitigate being Hoovered by Chrystia?
Here are some actions to get busy with…
$$$ Stuff your TFSA, of course. The current limit is $75,500, and you get six grand more in January. But don’t stop there. Fill the tax-free account of your spouse, and also of your adult children.
This is a great way to do some family income-splitting. The highest income-earner can contribute to family members’ plans with no attribution back to him/her and all income earned is tax-free. Just make sure the kids understand you want it all back
$$$ Speaking of TFSAs, if you need cash to buy a golden retriever for Christmas or want to rebalance your portfolio by moving around securities in kind, do so before the end of the year. Not in 2022. This means every dollar you take out now can be replaced next year, plus the new contribution room. If you’re rebalancing things, never move an asset that’s lost money into your TFSA, since the loss cannot be claimed.
By the way, if you’ve over-contributed to your tax-free account, get the excess out now. Every month you carry an extra amount in there the penalties will accrue.
$$$ Give a big fat loan to your squeeze for investment purposes, if he/she earns less than you. The rules allow this without any of the investment gains being attributed back to you, if the loan carries interest at the prescribed CRA rate. Here’s the good part – that rate is 1%. Even better, that rate can be locked in indefinitely for the life of the loan. It’s easy to see that a year from now this deal will no longer exist. Oh, and you can loan to the kids, too. And the cheap loan rate also applies to a family trust.
$$$ Speaking of kids, ensure you have an RESP open. The feds will give you free money for every contribution you make, and each 12 months you can go back one year and catch up on any grants missed. This is the easiest 20% you’ll ever make, and in some provinces there are extra goodies to collect. Recall that all money in an RESP grows tax free and can be removed usually with no liability. Also if your child picks social media instead of uni, much of the gain can be flipped into an RRSP.
$$$ Work for a company that gives stock options? Well, Chrystia already whacked them a bit, limiting the deduction for large company stock options granted from last July forward. Plus there is a $200,000 annual vesting limit. Odds are this is just the start, and ultimately these options will be fully taxed. Exercise options this year, if you can. The top tax bracket is heading higher.
$$$ WFH? Talk to your boss about deducting home office expenses, and not just the flimsy little bit everyone got last year. Ask for a Form T2200 allowing you to deduct many more legitimate expenses, and form part of your employment agreement. The CRA needs it to verify that your employer expected and required you to pay a bunch of personal work-related costs. If you can’t get a 2200 claim the $400 deduction everyone will once again be offered.
$$$ Okay, so it’s definitely important to buy the new Porsche or S-class by the end of the year in order to avoid the coming luxury tax. High-end rides and personal aircraft priced at over a hundred grand, plus boats worth $250,000 or more will be clobbered. The tax is the lesser of 10% of the value, or 20% of the amount above the threshold. Plus HST.
$$$ And, as we’ve mentioned a few times, expect the capital gains inclusion rate to be raised, and a new uber-tax bracket to be imposed on evil people making over $400,000 (or so). As a result – and if you believe such things will happen (most accountants seem to) – crystallizing some capital gains this year would make sense, if you were planning to cash in anyway. And for you high-income folks you can (a) work less, (b) retire and live on less-taxed investment income, (c) move to North Dakota, (d) suck it up and support the glorious T2 agenda, or (e) arrange to take income in other forms. Like anger management therapy.
About the picture: “It’s taken seven months for me to be able to share this photo,” writes Cameron. “We lost Weezie a week shy of her 10th birthday. If you know boxers, you know you can read them like a book if you pay close enough attention, and they can read you even easier. You are welcome to use this photo in the daily blog, because I believe that 10 years also represents the amount of time since we have taken advantage of the B&D portfolio, and no longer worry about funding our retirement, thanks to you.”
134 comments ↓
Everything is more expensive, inflation is rising, wages are stagnant, standard of living is dropping, jobs are being offshored at a record pace… and somehow the stock market keeps going up…
Canada has the second highest debt/GDP in the world, taxes are going up, interest rates are going up, carbon taxes are going up, expect to see “calorie/energy” taxes or rations ties to carbon in the near future, Canada is almost a third world country.
Who do you think is more in bed with the corporations?
Left or Right?
– Life in Kanada. Residents are smug and happy, they complied and now get some priviliges returned – via QR code.
They are happy getting global government permission, for literally every step of their lives.
But Kanadians are not known to be futurists. No they have not considered, if their compliance ends then what of their QR code. Will it still work?
@DOLCE – three shots in one year? I’m old enough to remember when these things actually worked as advertised. What did the salesmen say.
.Ontario expanding 3rd COVID-19 dose eligibility to everyone 70 and up (cp24.com)
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In other news:
.Pfizer expects to make nearly as much revenue just from COVID-19 vaccines in 2021 as it earned in all of 2020 (www.businessinsider.com.au)
…
— SO close to Back to Normal around the world!! But you knew already, this is set to run into 2025.
.Russia enters 4-month lockdown (edition.cnn.com)
.Face masks are back, more working at home, as Dutch bring back anti-Covid rules (dutchnews.nl)
.Covid: Hard months to come in pandemic for UK, says Van-Tam (bbc.co.uk)
.Covid in Germany: Workers separated in canteens by vaccination status (thetimes.co.uk)
.NZ Covid Minister Chris Hipkins: the government is considering the option that Aucklanders have an allocated time slot to leave the region over the summer holidays. (rnz.co.nz)
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
I have an even better tax savings scheme! Pack up, get a TN status visa, and move to America so Trudope and Chrystia “Borrows Trudeau’s Skirts” Frydia doesn’t see a single one of your hard earned dollars.
Just for fun, can we call them ‘transitory’ taxes.
Or, do none of the above and just buy a home in lower Brainland with 5% down and pass the risk (if any) to mortgage insurance (taxpayer) who will gladly take it.
Triple money every year. RE has beaten any return in Lower Brainland considering investment need of 5% only. Where else will you make $200k by throwing in $20k…except Bitcoin of course.
Thank you, Garth! Excellent summary!
Always liked the brindle Boxers. In-laws have a pure white one which also looks nice.
Great list of tax smashing ideas today. Unfortunately I can’t benefit from most of them. We’re tapped out for now, so current investment levels will have to do. Too tapped out to do the RESP’s as well back in the day – but it’s a great thing to fill – free cash. Outside that, we don’t make enough to really get pounded on these luxury/wealth taxes.
My tax avoidance is a little more downtown and blue collar, but it still works and is a great hobby!
Tax Question
So capitalizing on Capital Gains now (50% taxable) may be a better idea than next year (if they raise taxable portion higher.
If you have prior years Capital Losses, would it be good to decide in March whether to apply them against the Capital Gain or in the event they raised Capital Gains inclusion rate in 2022, apply the Prior Loss there after to 2022 Gain?.
Wait, so if my two ankle biters decide to move to Trinity, Newfoundland and paint, I take out all their RESP gains and put into RRSP with minimal penalty?
Sounds too good to be true.
A DROP of water in an ocean Taper and no mention of a rate hike by the FED…
I guess the eCONomy isn’t BOOMING enough yet to slow it down.
Aloha Middle class, the 1% want IT ALLLLLLLLLL.
What a complete farce….THEY CANNOT RAISE RATES AND NOW WE ALLLLLLLLLLLLL KNOW IT. 100000000%.
Really, first ?
So if move a winner into the tfsa, it’s a deemed a taxable disposition, but if i move a loser, it’s not an allowable capital loss? Did I get the gist of this?
I wonder if they will increase taxes on dividends as well. After all income trusts were whacked a lifetime ago (for likely good reasons). All these tax increases might have the unfortunate effect of having people double down on RE.
I don’t understand this:
” If you’re rebalancing things, never move an asset that’s lost money into your TFSA, since the loss cannot be claimed.”
I thought when you moved something from a non-reg account to a TFSA you were effectively selling it when you transfer it over. ie – you trigger the capital gain or loss.
Why would moving it to a TFSA at a loss matter?
Seriously, a boat gets a new tax bracket at $250K, but a plane does at $100K?
If hadn’t been dead for more than forty years, I’d be outraged!
“Just make sure the kids understand you want it all back.”
Nah, it’s like the Parable of the Talents” for those of you of a biblical persuasion.
If they take it and spend it stupidly, then you have done a bad job as a parent. Leave your money to a worthwhile cause.
If they leave it in cash or equivalents, they are dolts. Leave them your money as income only from a trust, during their lives. Then the money goes to a more worthwhile cause.
If they invest it usefully, then rejoice.
A loan to a minor child so that “they can invest” makes sense *only* if your own TFSA is maxed and their RESP is maxed. Right?
Of course you cannot loan to minors. They must be majors. – Garth
I’m pretty well tapped out now. I did have extra cash not too long ago, but buying a newly built home and the expenses that come with it, land transfer tax, lawyer (not too bad there), furniture that wasn’t financed, movers, window dressings, 75 ” screen TV, etc. Not in debt for any, but it drained me. Still have a bit in RRSP’s, TFSA, and a lot in RESP, but that’s it.
If people are buying a new home, they should also factor these things in.
It’s not just the downpayment that you need to have.
I was just planning to realise the gains on my non-reg account. Around 100k, but better paying taxes this year than the next, especially that this is a joint account and my wife doesn’t have a high income this year. Pay now less or later more.
And remember, a dollar is a dollar is a dollar.
Expect no privilege going forward. Our society needs an epic rebalancing going forward, for public well-being and the environment.
Get ready for 80%+ taxes on the wealthiest. They deserve it.
#3 TurnerNation on 11.03.21 at 2:27 pm
– Life in Kanada. Residents are smug and happy, they complied and now get some priviliges returned – via QR code.
.-.-.-.-.-.-.-.-.-.-.-.
What is a QR code?
It is a matrix barcode with fast readability and greater storage capacity compared to standard barcodes.
What are QR codes used for?
Applications include product tracking, item identification, time tracking, document management, and general marketing.
What are the benefits of QR codes compared to RFID or NFC chips?
QR codes are fast and effective. All you need to scan one is a smartphone and some software. They’re cheap and easy to both use and generate
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
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Time is money, but as of yet money in the form of time is not taxed.
At a 50% tax rate, the wise man only works if he needs the money. Otherwise he goes golfing. Or fishing. Or reads a blog. It’s foolish to work, at least for money you don’t get to keep.
If the inclusion rate goes to 75% from 50%…
…in Ontario at the top bracket, the rate on Cap Gains moves from 27% to 40.5%!!!
Garth, one more tax that will probably be raised is small business passive income, no?
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
____
By all means put the coal to it – at .46 on the dollar for your effort. Don’t you have something better you’d rather do? At the point where government is taking 54%+, that’s a long list of things for me.
#4 Bob on 11.03.21 at 2:28 pm
It’s a choice. Nobody said it’s a good or a bad one, but the high incomers have it. Maybe a doctor doesn’t see the point of working an additional 10 hours per week when 6 hours from that go in taxes.
So I’m wondering whether TFSA’s are also in the crosshairs? After all, JT & crew quickly reduced the $10K limit post election, to the cheers of the financially illiterate who would have had the most to gain from keeping said limit in place. Say it s-l-o-w-l-y: Tax Free. The exact same contribution room available to everyone regardless of income – no ‘extra’ granted to those earning more than someone else. In a world where any type of workplace pension plan is going the way of the dodo, funding this is the gold plated lifesaver for the masses. Especially if one actually invests the $ within using the B&D portfolio advice freely offered on this blog. Investing is scary? So is trying to ‘live’ on CPP/OAS & most likely GIS. Which is the other reason why the TFSA is a gold plated lifesaver – withdrawals will not impact your government pension benefits like OAS/GIS. Waiter! Bring me my Tender Vittles, sil vous plait!
#176 Faron on 11.03.21 at 2:22 pm
…Sail Away taking CEWS and then prattling on here all day was pretty annoying.
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Covid Emergency Wage Subsidy wasn’t a business benefit. Without it, we and others would have laid off a number of employees as work ran out and the employees would have gone on EI.
CEWS made the employer the distributor of relief funding. When all that $ is paid to an idle employee directly, it’s purely a pass-through. Not a benefit. Actually an administrative headache.
Then outsider a-holes like yourself who have never created a job for anyone claim the companies were benefitting. That’s like saying the government benefits by putting unemployed people on EI.
Jackass.
#11 Inflate Me on 11.03.21 at 2:47 pm
Wait, so if my two ankle biters decide to move to Trinity, Newfoundland and paint, I take out all their RESP gains and put into RRSP with minimal penalty?
Sounds too good to be true.
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And it is. You have to fit in in your RRSP contribution room. then you effectively pay the tax on any RESP gains but get the RRSP deduction. So yes you can move the money over to your RRSP but not in some sort of magical unlimited fashion.
And grant money must be returned. Sheesh. We covered this stuff already! Never miss a day of GreaterFool.- Garth
From the CRA website:
“In kind” contributions:
You can also make “in kind” contributions (for example, securities you hold in a non-registered account) to your TFSA, as long as the property is a qualified investment.
You will be considered to have disposed of the property at its fair market value (FMV) at the time of the contribution. If the FMV is more than the cost of the property, you will have to report the capital gain on your Income Tax and Benefit Return. However, if the cost of the property is more than its FMV, you cannot claim the resulting capital loss. The amount of the contribution to your TFSA will be equal to the FMV of the property.
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if you want to claim a capital loss, then don’t transfer in-kind to a TFSA. Just sell in your non-reg account, then transfer the cash to your TFSA and then re-purchase.
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RE:#14 Phylis on 11.03.21 at 2:58 pm
So if move a winner into the tfsa, it’s a deemed a taxable disposition, but if i move a loser, it’s not an allowable capital loss? Did I get the gist of this?
=======================================
Well, in your taxable account, if you sell a loser and buy it again in under 30 days, you can’t claim a capital loss… That would be called a “superficial loss”. Oh, and your spouse can’t buy it either and escape this rule.
But if it was a winner you’d be paying capital gains regardless. There is no such thing as a “superficial gain”.
Good advice, got the S63 last year.
We know from esteemed sources (AOC, who has a doctorate in climate science and applied bartesian sciences) that the world is going to end in 10 years. Oh wait that was 2 years ago so 8 years left.
We know China and India plan to do nothing about it. All signs are they plan to make it worse.
Therefore, the solution is obvious. Party hard boys and girls. That is the rational response. Maybe it explains all those people “not in the workforce”? After all they are all dead shortly anyway, and there is not a damn thing that can be done about it short of nuking China.
The stock market has been on fire the last couple of weeks. Expect it to end suddenly. CB’s have woken up and realized their call for transitory inflation is now seen as BS. To save their credibility they will be ratcheting up rates. Trump is riding again in America. Xi and Putin thumb their noses at COP. Burn baby Burn they, say. Unless a tidal wave sweeps away mars a lago we are headed for a Mad Max 2100 world.
@DOLCE – three shots in one year?
3 shots, where?
Checked a couple of days ago in Italia and they are giving over 60 yr old boosters to the frail (medically) 6 months after their 2nd jab and with only Pfizer or later than 28 d for immunocompromised with Pfizer or Moderna and of course 1st dose for unvaxd.
Per the above my booster will be in 2022 some time.
If you’re talking about J&J or Janssen, what a mess. US study (620K participants) shows efficacy goes from 92% six months later to:
3%
That I can see 3 shots or more a year.
Still looking like (here in Italia) 1 yearly shot.
So hey…
Any hope for 6500$ new TFSA space in January?
And in other news: NDP says it’s time for House of Commons to scrap formal dress code.
Great, now we can have the bums in parliament looking like bums in parliament.
To your list of tax hikes for the upcoming killer budget, please add “removal of tax deductibility for mortgage interest for investor-owned residential real estate” (just like in New Zealand). It’s unfair that investors can deduct their mortgage interest (and other expenses) but home owners cannot.
Of course it is fair. Homeowners pay no tax on real estate capital gains. Investors do. – Garth
Good advice today Garth protecting the assets of your Flock of Threadbare (gaggle?)
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I like it when StatCan makes pretty pictures for the tables & charts challenged:
https://www150.statcan.gc.ca/n1/daily-quotidien/211102/g-a001-eng.htm
Sept building permit values +4.3% vs. August.
Hopefully the Greenies won’t berate them for their Industrial building permits image containing a smokestack spewing anon black smoke.
I guess they’ll get around to changing that in 2050.
Having lived in North Dakota as a teenager in the 90s, I actually have fond memories of the place and thought that as long as one could find a job there, it would be a great place to live.
Take our neighbours at the time: Four bedroom split level on a 60 ft lot with a two-car garage, he managing the local big box store, she being a SAHM, three kids, a Crown Vic and a Tahoe in the driveway and a hot tub in the yard. Really a pretty sweet lifestyle, and one I was very much hoping to be able to emulate as an adult. All in a city of about 50,000, which was big enough to have a Target and a Wal-Mart but small enough to get around easily and boring enough not to always feel compelled to do something.
While as an immigrant from another continent, I am grateful to Canada for having given me great opportunities that the U.S. ultimately was not prepared to extend, I can’t help but observe that it took my spouse and me until our mid-40s to achieve a similar lifestyle here in Canada. But to get there, it took five university degrees between the two of us, both of us now working, only two children and only one much more modest car, with me taking the bus or riding my bike to work.
It surprised me just how hard it is to achieve the type of lifestyle here that Americans considered “middle class” and really took for granted. Three kids, two cars and a decent house on one income is really not doable in Canada, and I live in one of the “cheap” provinces.
I remember thinking, back in the 90s, how everything is smaller in Canada – the building lots, the houses, the cars, the parking spots, the streets, and yes, thankfully also the people. North Dakota really seemed like a wealthy place in comparison. I still notice that difference every time I go back to that state. It just looks well put together.
That dog! My sister had a very growly, large intimidating dog. But he would never spit out the ball long enough to take a bite. I don’t know how food went in.
DELETED (Anti-vax)
#30 active on 11.03.21 at 3:56 pm
if you want to claim a capital loss, then don’t transfer in-kind to a TFSA. Just sell in your non-reg account, then transfer the cash to your TFSA and then re-purchase.
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But don’t buy right away if you’re claiming a loss.
The 30-day wash sale rules apply to any account you control.
The health fascists blinked.
They were just threatening, trying to bully and scare nurses & doctors to get the jab.
They knew they couldn’t actually fire 20,000 workers.
It was a psy-op. You can never trust them.
Ever. They lie as a policy, as a trick, as a strategy.
CTV News
Vaccines won’t be mandatory for existing Quebec health-care workers, only new hires
https://montreal.ctvnews.ca/vaccines-won-t-be-mandatory-for-existing-quebec-health-care-workers-only-new-hires-1.5650001
Breaking: Quebec drops vac mandate for healthcare workers after pushing deadline multiple times
QC Health Ministry said loss of unvac staff would have had “devastating effect on the system”
But QC still forcing mass asymptomatic testing of HCWs with undisclosed or unvac status
My friend works in the TD mortgage center and said there is alot of talk about TD 5 year fixed mortgage rates being 3.44% by year end. I saw yesterday’s blog at 2.84% for the 5 year, 3rd move up since 2.00% what a month ago.
So I believe a 3.44% 5 year fixed mortgage rate is easily coming in the next 2 months. It will be probably 15 to 20 basis points moves at minimum. One co-worker’s mortgage comes due on Feb-25-2022. He is looking at a $475 a month increase in his mortgage payments at current 2.84% rate, $725 a month extra for their mortgage if the 3.44% 5 year fixed mortgage rate is there in 2022, February.
Cameron, that Weezie looked like a fun loving furry friend. Condolences on your loss.
Is there a period of time after which contributions to your spouse’s TFSA become “theirs” for the purposes of attribution?
I’ve been taking advantage of a high income year to fill my spouse’s TFSA, what happens if they withdraw funds from their TFSA sometime in the future to make an RRSP contribution?
#17 Howard Hughes on 11.03.21 at 3:11 pm
Seriously, a boat gets a new tax bracket at $250K, but a plane does at $100K?
If hadn’t been dead for more than forty years, I’d be outraged!
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Yup, this makes no sense to me, either. $250k gets you a pretty nifty little luxury cruiser, especially if not buying new. In planes, $100k gets you a 40 year-old, 165 hp 4 seater with cabin accommodations that would make a 1997 Tercel seem plush. If you want a new certified plane, the conversation pretty much starts at $300k.
#24 Nonplused
and
#26 IHCTD9
You two are really missing the point. It simply makes no rational sense to respond to a government-mandated reduction in your income by voluntarily reducing your income even more.
121 Ponzius Pilatus on 11.02.21 at 7:37 pm
#108 Annek on 11.02.21 at 6:49 pm
#40 OriginalAlex on 11.02.21 at 2:58 pm
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Sure.
First we outsource most of our heavy polluting industries to China and then they send us their crap via heavy polluting boats.
And then we blame them for polluting.
Try to connect the dots.
Not that hard, if you try.
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If it is not that hard, then why does our clever Prime Minister not address this rather than forever increasing carbon taxes locally ? Perhaps we should do what the First Trudeau encouraged and “Shop Canadian.” Or the Americans with their philosophy of “America “ first.
#28 Sail Away on 11.03.21 at 3:43 pm
#176 Faron on 11.03.21 at 2:22 pm
…Sail Away taking CEWS and then prattling on here all day was pretty annoying.
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Exactly…
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
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You are missing the fact that we exchange time/effort/comfort to make money. If we get 60% return for our time spent, we may decide working makes sense for what we can spend it on to buy time/effort/comfort. If it becomes 46% return for our time spent, then we may decide there are things we’d rather do instead.
I starting scaling back when the top marginal rate passed 50%. I planned to be half-time by now, but I was needed during the pandemic so worked more. Now that it is settling, I am definitely going part-time. If taxes become more punitive, then very part-time. It is part of the cost-benefit analysis for working. Not just for me, but my family who also sacrifices when I work “high-income professional” hours.
-LD
Off topic by NetZero Watch:
“Coal keeps lights on at COP26 as low wind strikes again”
https://www.netzerowatch.com/coal-keeps-lights-on-at-cop26-as-low-wind-strikes-again/
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#44 Laughing my ass off.
I wouldn’t be LMAO if I were you. I’d be sad instead.
How many in health care have been infected with Covid:
https://www.cihi.ca/en/covid-19-cases-and-deaths-in-health-care-workers-in-canada
or more…
https://www.ctvnews.ca/health/coronavirus/nearly-100-000-canadian-health-care-workers-have-contracted-covid-19-this-year-alone-report-finds-1.5553834
It shows how FRAGILE the health care system is in Canada. UNDERSTAFFED.
In Italia that was made LAW last year that ALL health workers must be vaxd. Grace period of every 72 hr tests in lieu, month later suspension 1 year, no pay if still not vaxd.
To date, 820 No Vax of which 176 got vaxd rest suspended in ALL of Italia as of Sept 22 (“Sanitari” in Italian mean health workers and NOT Doctors as Google mis-Translates):
https://www.fanpage.it/politica/quanti-sono-i-medici-no-vax-in-italia-finora-sospesi-644-sanitari/
603,375 health workers in Italia. Compliance:
99.89%
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Face it Canada, you have TOO MANY LOOSE CANNONS ON DECK in health care. As Dr. Bonnie from BC rightly said Nov. 1:
“Health care is “probably not the right profession” for workers who don’t recognize the importance of vaccines”
Time to get rid of them, unfortunately Canada your health care system is understaffed and you can’t.
Go here, search for “health” and see what you come up with:
https://liberal.ca/wp-content/uploads/sites/292/2021/09/Forward-For-Everyone-Financial-and-Costing-Plan.pdf
LIBERAL.
FORWARD FOR JUST A FEW IN HEALTHCARE. NOT EVERYONE.
Don’t fight the Fed. Or the Real Estate Market.
Last salvo on taxes.
You are SO correct on that Garth. I don’t think Cdns understand or have a clue about what’s coming.
From “Forward. For Everyone. Fiscal and Costing Plan ($M)”:
Additional revenue from CRA reducing tax gap (net cost)
2021-22 = 0
2022-23 = 1,168
2023-24 = 2,462
2024-25 = 3,620
2025-26 = 4,675
Compare the above #’s to “Total New Revenues”.
In the SATAN’S own words:
“Tax Gap: A brief overview” [CRA]
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/corporate-reports-information/tax-gap-overview.html
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1 year reprieve unless Chrysta gets desperate for cash next year. After that:
The Tax Man Cometh Canada.
What Justin giveth in CERB et. al. CRA taketh away.
Liberal.
Forward. For Everyone.
[and this time, they mean EVERYONE]
Contributing to a family Member’s TFSA
#46 B on 11.03.21 at 5:01 pm
Is there a period of time after which contributions to your spouse’s TFSA become “theirs” for the purposes of attribution?
I’ve been taking advantage of a high income year to fill my spouse’s TFSA, what happens if they withdraw funds from their TFSA sometime in the future to make an RRSP contribution?
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Well, I think Garth said there is no attribution.
When you contribute to your spouses TFSA, it is then their money to with as they will.
Even more so for adult kids.
You can ask for it to be used in certain ways or given back to you. But you have no legal standing, do you? Having a written agreement to get it back might be tax evasion?
Even if you have a bit of legal standing it’s best to treat it as gifted.
#51 Loonie Doctor on 11.03.21 at 5:25 pm
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
—————————————————————–
You are missing the fact that we exchange time/effort/comfort to make money. If we get 60% return for our time spent, we may decide working makes sense for what we can spend it on to buy time/effort/comfort. If it becomes 46% return for our time spent, then we may decide there are things we’d rather do instead.
I starting scaling back when the top marginal rate passed 50%. I planned to be half-time by now, but I was needed during the pandemic so worked more. Now that it is settling, I am definitely going part-time. If taxes become more punitive, then very part-time. It is part of the cost-benefit analysis for working. Not just for me, but my family who also sacrifices when I work “high-income professional” hours.
-LD
—— – —
LD explains it nicely. If I was in that part of the food chain where I could go to work and make .46 on the dollar, or go fishing – I’d go fishing.
MSM seems to be turning a bit.
Questions I just saw asked of leaders are the type of stuff Garth would flag anti-vax and not allow on here.
And no mandate for Ontario Health Care Workers at all after earlier poster noted PQ pulled backed.
Unfortunately there seems to be an increasingly long list of reasons that Health Care isn’t the right Profession.
From what my wife tells me many of the current candidates for positions she is trying to fill are very weak with regards to being able to get the job done.
My wife retires at the end of the month. Already the job proposals are coming in to try to get her back on the job ,at the very least part time.
If the younger generation in general had what it takes to do this job I doubt the higher up’s would be so desperate to coax the retirees back.
Something is lacking with a number of younger Canadian Health Care career candidates. And its not just vaccine hesitancy.
#52 Dolce Vita
Health Care workers, who braved apparently the worse, were going to be fired and told no UI! You support this?
Clearly this was highly illegal, highly immoral and carried high liability.
I don’t care how you slice it, you don’t turn a relationship from love to hate like this. But hey, the vaccine is a lovely vehicle for such division among us, as if we don’t have enough already.
https://www.reuters.com/business/healthcare-pharmaceuticals/meet-grace-healthcare-robot-covid-19-created-2021-06-09/
#31 kommykim on 11.03.21 at 4:00 pm
RE:#14 Phylis on 11.03.21 at 2:58 pm
So if move a winner into the tfsa, it’s a deemed a taxable disposition, but if i move a loser, it’s not an allowable capital loss? Did I get the gist of this?
=======================================
Well, in your taxable account, if you sell a loser and buy it again in under 30 days, you can’t claim a capital loss… That would be called a “superficial loss”. Oh, and your spouse can’t buy it either and escape this rule.
But if it was a winner you’d be paying capital gains regardless. There is no such thing as a “superficial gain”.
Xxxxxx
Thx. So sell, and wait >30 days before repurchasing within any other account as per our Sailor above to claim a loss.
Only one post today, but I think this one is important.
I posted this one yesterday, just in case you scrolled by, DG.
————-
#100 Ponzius Pilatus on 11.02.21 at 6:26 pm
I’m watching the Governor election in Virginia.
(not on Netflix, DG)
The outcome could give a glimpse on the 22 midterm elections, and possible the Presidential Election in 24.
I got the feeling that Biden’s pro Climate Chance stance is winning him more foes than friends, and could cause a shift back to the right.
It’s becoming more and more evident that the USA needs a viable third party to bridge the ever growing gap between left and right.
————
Move over Nostrodamus.
Ponzi is the new champ of Prophets.
———-
Yesterday’s state and regional elections clearly confirmed what I said above.
The political pendulum is swinging back to its natural position, conservative.
The party of Abe Lincoln.
I hate to say it, but I think Biden is toast.
Kamala Harris is in no shape to take over.
Trump is salivating
Sailo, is celebrating.
God save America, and the World.
whoa is me… Our TFSAs and RESPs are all stuffed…
now what? :-)
#28
Are we calling each other a__holes on this blog now?
What is this, “murica”?….
#28 Sail Away on 11.03.21 at 3:43 pm
#176 Faron on 11.03.21 at 2:22 pm
…Sail Away taking CEWS and then prattling on here all day was pretty annoying.
——-
Covid Emergency Wage Subsidy wasn’t a business benefit. Without it, we and others would have laid off a number of employees as work ran out and the employees would have gone on EI.
CEWS made the employer the distributor of relief funding. When all that $ is paid to an idle employee directly, it’s purely a pass-through. Not a benefit. Actually an administrative headache.
Then outsider a-holes like yourself who have never created a job for anyone claim the companies were benefitting. That’s like saying the government benefits by putting unemployed people on EI.
Jackass.
///////
Jackass is getting off light.
Dolce,
“Face it Canada, you have TOO MANY LOOSE CANNONS ON DECK in health care. As Dr. Bonnie from BC rightly said Nov. 1:”
Would you accept that some healthcare workers want to wait for some long-term data before taking the vaccine?
#40 A Borrower Bee on 11.03.21 at 4:40 pm
While as an immigrant from another continent, I am grateful to Canada for having given me great opportunities that the U.S. ultimately was not prepared to extend, I can’t help but observe that it took my spouse and me until our mid-40s to achieve a similar lifestyle here in Canada. But to get there, it took five university degrees between the two of us, both of us now working, only two children and only one much more modest car, with me taking the bus or riding my bike to work.
It surprised me just how hard it is to achieve the type of lifestyle here that Americans considered “middle class” and really took for granted. Three kids, two cars and a decent house on one income is really not doable in Canada, and I live in one of the “cheap” provinces.
————- –
Be glad you made it. In Ontario circa 2000 that life was not tough to achieve so long as you did not live in a place like the gta. You lived and died by the size of your mortgage and COL compared to local incomes then too. We bought for 1.37x income, 4 acre lot, barn, shop, pond, 12 minutes out of town. Had the house at 28, and 2 kids by 32. Two degrees and a College diploma. Today at 49, the kids are heading out to University, the mortgage is long gone, and the portfolio looks good to hit the mark. Lots of dudes my age achieved the same. The math for doing this today has deteriorated significantly.
It’s pretty much housing costs alone that have wrecked what was once a pretty good deal, at least in southern Ontario. That, and the late start everyone seems to be up against due to education.
Re: #10 Armpit on 11.03.21 at 2:47 pm
Take capital gains at least 5 business days before the end of 2021. Carry forward ALL capital loses to 2022 after budget day. The increase in the capital gains tax might be retroactive to January 1st 2022. The increase in the capital gains tax could resemble that in America in 2022 meaning only high income earners get hit with a higher capital gains tax. Chances of the tax being retroactive to January the 1st 2022 are high.
#40 A Borrower Bee
Reminder: Canada is 2nd largest country on the planet!
You could fit 3 Germanys in province of Ontario alone!
And there is nearly 6x the population of Ontario in Germany.
Germany is 232 people per km2.
Ontario 14.65 people per km2!
Nearly 16 times the density per km2 in Germany.
Yet such great roads. So much greenery. Such efficiency. Such industry! So much to do!
And apparently, somehow we don’t have enough space for homes in Ontario? Not enough space in Canada?
IT IS A GIANT SCAM! Pulled by the leaders, politicians on behalf of corporations and banks. Top down!
Why do you think that is?
When is the budget?
When she feels like it. – Garth
“Give and take”
Dogs mostly take.
But sometimes they give poop leftovers on your neighbour’s lawn thanks to their incompetent and disrespectful owners.
That also gives bylaw officers and lawyers an income.
$$$ I’m with Doug w.r.t. savings on subscriptions. The Globe and Mail decided to auto-renew at roughly triple the monthly rate, from $9 to $32. They certainly do some fine work but increasingly rely on corporate shills and free (for them) opinion pieces and worse, advertorials and sketchy sponsored content. Still, journalism is essential work so part of the savings will be going to support online publications/foundations/journalists that continue to do stellar work.
$$$ Stuff your TFSA, of course. The current limit is $75,500, and you get six grand more in January.
Can do. Plus the dividends earned will be reinvested tax free so that the number of shares in the mutual fund in the TFSA will increase. Would shares of the same mutual fund if held outside of the TFSA be allowed to be transferred to the TFSA and be sheltered from tax?
#179 Dr V on 11.03.21 at 3:04 pm
Hmmm…solar power
Bloggers Gravy and wrk.dover seem to have great systems and benefit from net metering.
Blogger sicko notes there is just 2.4% of electricity generated from solar.
Someone else mentioned Scotia power makes a profit.
Lets just accept all those as facts.
So why doesn’t everyone just get a solar array – make it as big as you like.
Anyone see a problem with this?
—
I can’t tell if you are trying to make a subtle point or are being straightforward, so I’ll address both possibilities.
Straightforwardly there are several reasons:
1) The Nonpluseds of the world who are immune to facts and thus don’t think the numbers pan out even if they have, easily, for thousands of people and all of that success is well documented.
2) Huge upfront costs. Very few people are forward-looking enough or well-capitalized enough to front the $30k – $50k for an array and then wait for a decade for it to finally pay itself off.
3) Location. At a certain point north and under a certain level of climatological cloudiness, solar won’t break-even. Still might be a viable alternative if a person is willing to pay higher power prices for a greener supply, but few will.
4) If “everyone” purchased an array, there might be supply constraints and thus price spikes in panels/inverters/batteries and the like making the breakeven point fall outside the typical lifespan of a system. Eventually the greater demand will drive prices down making the breakeven point even earlier.
Addressing your implied point regarding the case of a grid with a large percentage of solar on it (everyone builds an array for their homes) yes that will require changes to how all of this works and it will happen over time with shifting policy. That certainly isn’t a reason not to invest in solar now.
There is far too much absolutism in this discussion of renewables with all-or-nothing, now-or-never thinking that does nothing to solve the problem except promote the continuation of CO2 production.
#174 IHCTD9 on 11.03.21 at 12:01 pm
#162 Gravy Train on 11.03.21 at 10:19 am
But, I am doing this mainly for lowering costs and avoiding taxes – not so much because I want to lower my carbon footprint.
—
Do you realize that you just stated the exact reasons why economic incentives/disincentives are the only way to force meaningful change here? You essentially just validated the carbon tax and any future increases in said tax. Thanks!
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
Bob meet laffer curve
https://en.wikipedia.org/wiki/Laffer_curve
Smart people who make good coin don’t like being taken advantage of. Nonplus, IDHT, and LD have it right. T2 and all his socialist sycophants are going to quickly find out there is a limit to what people will pay. I watch a number of brilliant entrepreneurs leave the country when the last finance minister attacked small businesses to Canada’s loss. I expect even more over the next year.
#64 Penny Henny on 11.03.21 at 6:40 pm
Jackass, debatable, but there are plenty of reasons the answer there is no.
You, who contributes almost nothing to any discussion here and who yaps at me whenever I argue with one of your pals like a chihuahua standing behind its owner, are irrelevant. I’d rather stick my neck out and get called a Jackass then relegate myself to forgettable subservience.
Hmmm. So many opportunities it’s hard to know where to go. The pace of hiring is accelerating. My furloughed Air Canada colleague weren’t projected to get recalled until 2023 earliest – they’ve just all been told they’re going back.
So short of pilots in the US a couple companies now looking to hire non-American pilots on EB-2 visas under the NIW (National Interest Waiver). Way better than a TN visa which is non-immigration. As a sign it’s telling, the US is super-protectionist about their aviation industry with pretty militant pilot unions at the majors and strong lobbyists against any and all Johnny Foreigners.
Not really my cup o’ tea, ‘Murrica is pretty firmly on my “nice place to visit wouldn’t wanna live there” list but interesting just the same. The future’s so bright I gotta wear shades…these ones, actually.
https://bigatmo.com/sunglasses-collection/strato/
Oh and the story behind the QR code is pretty nerdy-cool. The Japanese really do lead the way in so many areas. Been in Tokyo a lot recently and it just never ceases to amaze me how clean the place is. Makes North American cities seem like open toilets in comparison.
https://www.qrcode.com/en/history/
“Chances of the tax being retroactive to January the 1st 2022 are high.”
—————————-
Hmmm……..I think that typically changes to income taxes on discretionary transactions are not retroactive and become effective at midnight of budget day or at some future date as stated in the budget? So we may have a couple months on 2022 to realize capital gains at the 50% inclusion rate. As well I think I recall that tax changes to earned income are usually effective for the next tax year.
@#142 sara
“I’m happy I no longer have the urge to participate in the ‘debates’ at this pathetic blog.”
+++
Amazingly.
We’re happy too!
#167 Philco on 11.03.21 at 11:13 am
Did that 30 years ago.
I avoid Chinas crap like the plague.
Unfortunatly to much crap is made there now and hard to avoid. We have given them our power.
Eviromental regs and wages did that.
Now you can afford your low quality coffee maker going to the landfill in 5yrs
———-
I run a hybrid strategy. Wrench set? Hammer? China is fine. Get it from ctc and they replace a lot of it if it ever breaks.
But if it costs a lot, and is a complicated thing, then China is out, don’t care how cheap it is. If I’m spending thousands, I want quality even if I have to pay 2-3-4X more. I’ve paid 10x more without a single regret. I’ll get 10x more when (if) I sell too.
I got a Chinese ratchet set (Stanley), no name 3lb mallet, Mastercraft screwdrivers – they’re fine. Everything expensive I own came from the USA, Germany, and Japan. They cost a lot, but you’re getting what you pay for – or more. Good quality and engineering is a joy to own, cheap junk makes you keep on paying one way or another.
Old is good too. Like my ancient indestructible nodular iron Record Vise from England, or 69 year old dozer that has a 30 hp motor that weighs 500 lbs from the USA. Before engineering got really good, everything made in the West was way bigger and stronger than it needed to be.
When will Central banks finally give up on the idea that quantitative easing is the best way to stimulate economic growth and create employment. Clearly a big chunk of the trillions of dollars injected into the North American economy ended up in pockets of the wealthy and was used to purchase assets.
Trickle down economic theory suggests that economic growth is generated by the wealthy. However the International Monetary Fund has confirmed that the transfer of benefits to the lower and middle classes is the most efficient way to stimulate economic growth since it results in the purchase of goods and services not the purchase of investment based assets.
Study after study has confirmed that the use of quantitative easing in North America after 2008 has substantially increased the gap between the very wealthy and the balance of society.
In Canada the quantitative easing resulted in ‘trickle up’ economics where the net worth of the most wealthy citizens increased by as much as 30% in one year.
Keeping the overnight interest rate at 0.25% only helps individuals and corporations with the ability to purchase assets with inexpensive borrowed capital.
Employment levels and Canadian GDP may have recovered to pre Covid levels but in reality we have 600,000 fewer jobs than would have existed in 2021 under normal conditions.
According to the World bank per capita GDP in Canada peaked at $52,670 in 2012. In 2020 per capital GDP in Canada declined to $43,260. Per capita GDP will definitely increase in 2021 but it will not come close to per capita GDP realized in 2012.
My point is that per capital GDP should be increasing each year in a healthy economy and to me the lack of growth indicates that ‘trickle down’ economics and quantitative easing has not achieved their initial objectives.
Surely the time has come for a change in direction.
On the topic of electric vehicles and the future, there’s a ton of promise in driverless cars from the standpoint of safety and productively using time that’s being lost to commutes. Some companies are making good progress. Here’s a video of an actual driverless taxi:
https://youtu.be/dmvZBiWYkFQ
vs the company that promised to have driverless cars more than a year ago, calls their tech Full Self Driving, charges $10k for it and has unleashed it on the general public the current state is this:
https://twitter.com/i/status/1455688697777688581
https://twitter.com/i/status/1455959121421901833
https://twitter.com/i/status/1456016080821006336
NTM https://ca.news.yahoo.com/its-time-to-notice-teslas-autopilot-death-toll-195849408.html
Anyhow, we were talking about jackassery so this seemed, somehow, relevant…
75 Faron
“There is far too much absolutism in this discussion of renewables with all-or-nothing, now-or-never thinking that does nothing to solve the problem except promote the continuation of CO2 production.”
Hi Faron. Nobody seems to argue that there isnt a benefit to converting to renewables. It really becomes
a question of scale and economy. I liked blogger Sicks’
comment saying these systems basically just sell
electricity to the grid.
You have listed many issues which could arise. At some point however, the ability to sell electricity back to the grid will disappear, as more users convert to solar, and the need for grid power at times will be zero. Call it “peak solar”?
It then becomes a problem of energy storage. I have read examples of what would be needed to store the
excess for later. Didnt sound remotely doable at a regional scale with current tech.
Did some checking on coal. Apparently the culprit for 46% of GHG emissions. NG has only about half the emissions per unit of energy. Found this site which has an interactive map where you can check on existing and retired coal plants. Conversion to NG of plants seems
quite common at least here is Canada. Perhaps this is a
workable transitional solution on a global scale.
https://globalenergymonitor.org/projects/global-coal-plant-tracker/
I will put El Capitan on my list, if even only a “drive by”
in the F150 :(
‘I’d rather be here, a free man among brothers, facing a long march and a hard fight, than the richest citizen in Rome: fat with food he didn’t work for, and surrounded by slaves.’ – Spartacus
81 fartz
Love it! You and Sara are soooo good together! I think a new CBC show for sure!
Garth, every time you talk about RESP’s, you always miss the part about front loading them. If you have an extra $14,000 laying around, you can contribute to your RESP with it on top of the $2,500 you put in every year.
If you front load early, it will have many years to grow the extra tax free.
The $14,000 is the difference between maxing out the matching grants ($36,000 over the life of RESP) and the max you can contribute to the RESP ($50,000).
Hopefully you kid becomes a doctor, because there is going to be a ton of money in that account (as much as $175,000) when they goto school.
#76 Faron on 11.03.21 at 7:21 pm
#174 IHCTD9 on 11.03.21 at 12:01 pm
#162 Gravy Train on 11.03.21 at 10:19 am
But, I am doing this mainly for lowering costs and avoiding taxes – not so much because I want to lower my carbon footprint.
—
Do you realize that you just stated the exact reasons why economic incentives/disincentives are the only way to force meaningful change here? You essentially just validated the carbon tax and any future increases in said tax. Thanks!
—— +
Yep I do. It’s purely incidental as I’m not reacting to climate policy. I can pay many times what I am right now for energy no problemo. I like avoiding taxes of all kinds as a hobby, and if I happen to lower my carbon footprint in the process, that’s just another good reason to do it – no?
I’m not one for increasing pollution and Co2, and don’t deny something is going on with the global Climate. I’m also not a carbon zealot who’s down for stupid ideas that can’t produce measurable improvements. Just for the record.
Besides, I get the feeling there aren’t many like me out there. I’ve actually downgraded my transportation to save on fuel costs. I’m setting up to heat my house via a bunch of labour because it has the potential to be zero cost. I like this stuff, I like independence, I like simplicity. It gets the dopamine flowing.
You can bet most will just pay the extra costs and carry on per usual. And we’ll all gripe about it. That’s the way of the West.
Garth…”Give a big fat loan to your squeeze for investment purposes, if he/she earns less than you.”
What if they earn same or more but own less?
What if they aren’t family?
#75 Faron on 11.03.21 at 7:14 pm
#179 Dr V on 11.03.21 at 3:04 pm
Hmmm…solar power
Bloggers Gravy and wrk.dover seem to have great systems and benefit from net metering.
Blogger sicko notes there is just 2.4% of electricity generated from solar.
Someone else mentioned Scotia power makes a profit.
Lets just accept all those as facts.
So why doesn’t everyone just get a solar array – make it as big as you like.
Anyone see a problem with this?
—
I can’t tell if you are trying to make a subtle point or are being straightforward, so I’ll address both possibilities.
Straightforwardly there are several reasons:
1) The Nonpluseds of the world who are immune to facts and thus don’t think the numbers pan out even if they have, easily, for thousands of people and all of that success is well documented.
2) Huge upfront costs. Very few people are forward-looking enough or well-capitalized enough to front the $30k – $50k for an array and then wait for a decade for it to finally pay itself off
___________________________________
___________________________________
They give the grant to get the message out there.
Amen.
The 85 cent per watt grant I got, covered labour and sales tax. Period.
Amen
It costs 13 times your yearly power consumption if you pay 16 cents per kwhr and live fog free, no matter how much power you use. Repeat; invest 13X present annual bill.
Amen.
Therefore, the payback is after 13 years, unless they double rates and it becomes 6.5 years. Or they triple rates and it becomes a four or five year joke on you for missing out.
Read the above and focus. Or buy stock in Enphase too late, now that that horse is long out of the barn.
Over and out.
Thanks for the platform Garth!
our power bill was one grand/year.
we cut a cheque for 13 grand.
Wooo.
#70 Do Cat Live on 11.03.21 at 6:52 pm
Germany is 232 people per km2.
Ontario 14.65 people per km2!
////////////////////////////////////////////////////////////
Dear oh dear. I get what you’re saying but honestly this is not comparable. Nearly all of Germany is easily habitable, <10% of Ontario is. Want to live in frozen Tundra or blackfly country? be my guest.
Yes Canada has numerous incredibly stupid 19th century and 20th century car centric housing laws and norms but we're more comparable to Russia and Australia . Which as you can guess are not too dissimilar.
Just stop it Garth.
40% of Canadians do not pay income taxes.
60% carry the burden, but not equally. The high earners have more money to find ways or reducing their share, which in turn places a heavier burden on the lower end earners.
Given that at the lower end of the scale, there is a higher propensity to spend; which in turn stimulates the economy, it would actually be fairer and more equitable to reduce, or remove altogether the tax strategies that ultimately unfairly places the tax burden to those who can least afford it.
As for the rest of the greedy curmudgeons, be patriotic and pay your taxes.
You grew up in one of the best countries in the world.
Education, health care, freedom, second to none and still we breed ingrates.
1%ers (income $260,000+) earn 9% of all income and pay 21% of all income tax. So much for your puerile argument. – Garth
@#87 Dr V
“Love it! You and Sara are soooo good together! I think a new CBC show for sure!”
+++
Crazy right?
We could base the show on a Land and Sea type format with shows across Canada and discuss politically correct Urban Life vs reality …
Perhaps we’ll call it….Oil and Water?
#50 Bob on 11.03.21 at 5:21 pm
#24 Nonplused
and
#26 IHCTD9
You two are really missing the point. It simply makes no rational sense to respond to a government-mandated reduction in your income by voluntarily reducing your income even more.
—————————————-
We can test your reasoning in the extremes.
How many hours should I work at a marginal tax rate of 80% as the dollar guy thinks I should pay?
Ok, assuming there is anybody working for 20% take home, how many hours should I work at 90% tax? What about 100%?
I can tell you the right amount of hours at 100% tax, I don’t think there will be any argument from anybody that the correct number is zero. Thus, there is some sort of formula whereby the higher the tax rate, the less incentive to work. And I doubt it has a step function in it.
Time is the most valuable thing you’ve got. Don’t’ waste it working if you don’t get anything in return.
prepare for a battle folks…
https://www.ctvnews.ca/canada/feds-stay-committed-to-one-china-policy-but-very-concerned-about-taiwan-1.5650327
#94 Quintilian
Dude you need to do more research before you just hit the keyboard with made up facts lol
#26 IHCTD9
#4 Bob on 11.03.21 at 2:28 pm
And for you high-income folks you can (a) work less…
I see. If your income tax rate goes up, avoid the hit by working less and take an even bigger hit due to your lower income. What on Earth is the point? Just to spite the government?
____
By all means put the coal to it – at .46 on the dollar for your effort. Don’t you have something better you’d rather do? At the point where government is taking 54%+, that’s a long list of things for me.
———
But the company pays time and a half after 44 hours.
So you should still be taking home strait time wages.
I always took my gross pay divided by hours worked and after taxes working longer I’m still at regular pay take home thanks to time and half.
DELETED
No moaning now, you voted for it. Note, it only gets worse from here.
The only pool of taxable wealth the govt. can get at is residential real estate. It will come as a big “one-time” wealth tax at some point in the future, to deal with some unforeseen “emergency”. The lockdowns and freedom restrictions have gauged people’s willingness to accept hardship during and “emergency”.
A rebalancing of the global debt pile requires this.
Garth still not advising a small, unregistered stake in BTC. One day he will…
Does the luxury tax apply to used vehicles with selling prices above the limit as well?
#16 None on 11.03.21 at 3:10 pm
I don’t understand this:
” If you’re rebalancing things, never move an asset that’s lost money into your TFSA, since the loss cannot be claimed.”
I thought when you moved something from a non-reg account to a TFSA you were effectively selling it when you transfer it over. ie – you trigger the capital gain or loss.
Why would moving it to a TFSA at a loss matter?
===
That’s called a Superficial Loss rule. You cannot claim a capital loss if you sell the security at a loss, and then buy the same or similar security within 30 days.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions/what-a-superficial-loss.html
Can I borrow say $200K from my company and pay 1% interest for say 5 yrs.
A group of us guys who are working our last years started talking about retirement, and it looks like no one in the group is going to stay in Canada.
We happen to be in the top 15% or so earned by long hard years in our professions. That didn’t come until later in life. After raising families, making mortgage payments, and providing for others we finally can really start to sock away all those extra dollars we are making now to take care of ourselves in old age.
No Canadian government now or in the future will have the funds to sustain us even though every year we have paid the same amount of income tax as others make in a year. We don’t complain because it is not our way and pay our taxes to provide for those less fortunate and for the good of the country.
The Canada we knew and forged our own prosperity in is gone. Its been replaced by something else, a shadow of what it once was and a country vulnerable to collapse through over indebtedness and incompetent government. Our thought is its only a matter of time that this collapse will occur.
Its clear to us that to preserve whatever wealth we have we will have to leave this great country and go elsewhere.
Here’s hoping Turner Investments opens a foreign office. There would be some justice in that.
Well Covid is still a global threat. We were promised by now that it would be history by everyone. But no, now we are locked in our houses by personal fear rather than legislation. Here in England everyone over 50 will get a third covid shot and we are getting ours next week. Maybe then I’ll have the guts to visit our holiday home in Italy. 2022 has to be a better year.
#88 Steve-0 on 11.03.21 at 8:16 pm
Get your kids a second or even third passport. Give them options where they can go to school. Cost of an education is a lot cheaper in other countries. Get an EU passport. Opens a ton of doors.
http://www.bnnbloomberg.ca/oil-tumbles-as-u-s-piles-pressure-onto-opec-for-more-barrels-1.1676182
Takeaway:
1) Trudeau kills Canadian energy in favor of building a nuclear armed Iran. Saudi ships face no embargo on our East Coast. Only Canadian jobs are lost. Trudeau wins again.
2) Our ‘good buddy’ Biden , who’s never once crossed the border and snubs Trudeau at every opportunity, has OK’d the State of Maine to block Quebec power from entering the US. He’s blocked Canadian oil, so why not? But, now who pays for the James Bay Boondoggle and a Muskrat in retreat? Alberta sure isn’t going to the pity party when Quebec goes deep red.
3) Killing Energy and Resources have gutted the treasury. Much higher individual taxes are only the beginning of our pain.
4) A pitchfork sharpening and torch business might be a solid idea right now.
5) Trudeau will raise and lower the flag for a day. Excuse me….but is this man-child serious or is this script being written outside our borders.
@#94 1 Quintillian reasons to complain
“You grew up in one of the best countries in the world.
Education, health care, freedom, second to none and still we breed ingrates.”
+++
Well I won’t argue that ingrates breed.
You seem to be living proof.
#104 Barry Ross on 11.03.21 at 11:29 pm
Can I borrow say $200K from my company and pay 1% interest for say 5 yrs.
———
Best not. It would be messy and CRA doesn’t negotiate.
https://www.dmcl.ca/why-borrowing-money-from-your-company-is-a-risky-proposition/
Of course you cannot loan to minors. They must be majors. – Garth
——-
My terminology might be wrong.
I meant “Funding a trust with minor children or grandchildren beneficiaries, who usually have a significantly lower marginal income tax rate than the person lending the funds, by means of a loan to the trust may be advantageous. The trust income can be flowed out to these minor beneficiaries, and used for such expenses as school tuition, education expenses, and camp fees. Each minor beneficiary will be taxed on the income used for their benefit at their lower marginal tax rate, effectively allowing many expenses to be paid using before-tax dollars instead of after-tax dollars.” (https://www.fundlibrary.com/Articles/Detail/prescribed-rate-loan-strategy-for-family-trusts/753).
#95 crowdedelevatorfartz on 11.03.21 at 9:22 pm
@#87 Dr V
“Love it! You and Sara are soooo good together! I think a new CBC show for sure!”
+++
Crazy right?
We could base the show on a Land and Sea type format with shows across Canada and discuss politically correct Urban Life vs reality …
Perhaps we’ll call it….Oil and Water?
__________________________________
I’d rather watch the series based on The Odd Couple, where Fartz and Ponzie share a house. It would be really cool if Jane was the landlord and dropped in from time to time, so we could see the resulting Fartz cringe that he usually types in here for us to read.
By the way Fartz, NS is about to drop the toll on the 104, except for out of province plates. When you finally come home, you will really feel welcomed at the booth!
“Ask for a Form T2200 allowing you to deduct many more legitimate expenses…” – Garth
———————————————————————————————
Since it is my job to be a bum, can I deduct my sofa, bed, smokes, doobs, booze, firepit, TV, Spotify subscription, internet fees and cell phone?
Bums wanna save on their tax bill too.
Bums Lives Matter.
@#97 9 to 11
” prepare for a battle folks…
https://www.ctvnews.ca/canada/feds-stay-committed-to-one-china-policy-but-very-concerned-about-taiwan-1.5650327
++++++
Yep.
Should be interesting if Trudeau’s Speech Therapist will be called out of retirement to deal with his incessant stuttering after WWIII starts in the next few years.
I think “our commitment to Taiwan” consists of sending a 30 year old frigate through the Taiwan Straights to show the colors.
There’s going to be a lot of ships sunk and lives lost in a very short period of time when this ratchets up.
The Americans haven’t lost an Aircraft Carrier since WWII.
We’ll see how quickly Western public opinion turns over Taiwan as the losses mount.
Covid will seem as an afterthought in comparison.
@#114 Wrk.dvr
“By the way Fartz, NS is about to drop the toll on the 104, except for out of province plates. When you finally come home, you will really feel welcomed at the booth!”
+++
Wow!
The toll barely covered the booth Staff wages to man it.
I see they still have the tolls on the two Bridges over Hfx harbor in HRM.
Nothing like a cash cow for a little city pretending it’s big.
I think the Bridge to PEI will be paid off faster than the Angus L MacDonald and the MacKay Bridges.
@#112 Wrk.dvr
“It would be really cool if Jane was the landlord and dropped in from time to time,”
+++
Only if she calls it a “palazzo” and regales us grubby Colonialists with stories of her vast land holdings on the Continent….. as she jacks the rent.
#100 Felix on 11.03.21 at 10:15 pm
DELETED
___
Ha! Felix finally went too far with the dog slaging.
https://www.reuters.com/business/cop/bank-canada-plans-new-tools-assess-climate-impact-economy-2021-11-03/
Just when you thought the girlie men at the BOC could not do more damage:
“Asset values across the financial system could be subject to sharp declines in valuation, which might generate credit and market losses, and it might increase the stress on the financial system,” he told a climate panel in Toronto”
The BOC has been careless with matches, and now they want a blow torch.
@#105 BCWally
“The Canada we knew and forged our own prosperity in is gone. Its been replaced by something else, a shadow of what it once was …”
+++
Yep.
I know of several people who have already left ( Mexico, US, etc) rather than pay taxes for the “Woke” whiners bleating about the unfairness of it all.
Get rid of 75% of upper management and or Govt. bureaucrats and this country would be a far more productive, happier place.
Sadly it will take a brutal economic downturn to kick people in the teeth and make them realize….
There are no “free” rides and no one “owes” you anything.
Everyone ready for tummy rubs from the ofsi?
#107 always be prepared on 11.04.21 at 12:06 am
#88 Steve-0 on 11.03.21 at 8:16 pm
Get your kids a second or even third passport. Give them options where they can go to school. Cost of an education is a lot cheaper in other countries. Get an EU passport. Opens a ton of doors.
———————
Oh sure.
Just get an EU Passport.
At the Flea Market?
Or from Sailo’s basement?
#114 crowdedelevatorfartz on 11.04.21 at 8:23 am
Let’s hope not, but realistically, I think you’re right. Several years back, I sent some of our guys to work there on a processing system. They raved about Taiwan and its people. Unfortunately I didn’t go myself, and it looks like I will miss out. It will be an absolute shame if it changes.
#114 FARTZ
YUP – and taxes will be the least of our concerns
Economically capital gain taxes increase would be the final nail in our coffin.
Very dangerous and therefore not happening. (and yes accountants have been talking about it since T2 first got elected, still won’t happen)
What will happen is what the liberal said during their campaign,
https://liberal.ca/our-platform/making-sure-everyone-pays-their-fair-share/
…principally the new tax on banks and insurances companies, which is a non event because the banks and insurance co. form a protected Canadian cartel that is not going anywhere.
Anyway no amount of taxes increase could make up for the mess we’re in.
#114 crowdedelevatorfartz on 11.04.21 at 8:23 am
@#97 9 to 11
” prepare for a battle folks…
https://www.ctvnews.ca/canada/feds-stay-committed-to-one-china-policy-but-very-concerned-about-taiwan-1.5650327
++++++
Yep.
Should be interesting if Trudeau’s Speech Therapist will be called out of retirement to deal with his incessant stuttering after WWIII starts in the next few years.
________________________________________
Apocalypse, bro, is that you!? Are you back?
Let’s go for a drink!
#121 Ponzius Pilatus on 11.04.21 at 10:50 am
#107 always be prepared on 11.04.21 at 12:06 am
#88 Steve-0 on 11.03.21 at 8:16 pm
Get your kids a second or even third passport. Give them options where they can go to school. Cost of an education is a lot cheaper in other countries. Get an EU passport. Opens a ton of doors.
———————
Oh sure.
Just get an EU Passport.
At the Flea Market?
Or from Sailo’s basement?
______
I bet a bunch of Canucks could get one, all they need is parents that were born there. One of my bro’s already did it. It’s a PITA, but really just paper work and time, and a bit of $$.
But really, depending of what course you’re taking – education isn’t super abusively expensive. My eldest’s Tuition is about 8K – it’s living in residence that gets spendy – 17K for 1 year. He’s already shopping for an apartment off campus.
@#125 Drunken BIL
Nothing like a dirty little war to get peoples minds off the economy.
https://www.reuters.com/business/chinese-developer-kaisa-plunges-poor-oct-sales-add-liquidity-worries-2021-11-04/
Another week, another Chinese Property developer missing a bond payment.
The only thing Chinese Communist Leadership fear more than democracy is…. 100’s of millions of their citizens losing their shirts……
#82 IHCTD9 on 11.03.21 at 7:49 pm
————————-
Just a quick read scan and off to the lot.
Soooo true. Tools and equipment built 50-60 years ago were designed not to fail. Thats what they figured out to do minimalist engineering.
Yes now Crappy Tires Chinese stuff has gotten better. Tools have lifetime…They had to.
Eons ago when the wifes coffee maker blew up, im a T toddler most the time. I took it apart to fix it, it was junk and she was ingesting aluminum. I bought her a BUNN made if the USA, was near tripple Falmarts price. It has solid stainless guts are still making black goo.
Gotta run have a good one…Fridays burn index is good Im flashing up a super size wennie roasting stump pile bigger than 2 houses.
#108 El Rayo X on 11.04.21 at 12:28 am
http://www.bnnbloomberg.ca/oil-tumbles-as-u-s-piles-pressure-onto-opec-for-more-barrels-1.1676182
Takeaway:
1) Trudeau kills Canadian energy in favor of building a nuclear armed Iran. Saudi ships face no embargo on our East Coast. Only Canadian jobs are lost. Trudeau wins again.
2) Our ‘good buddy’ Biden , who’s never once crossed the border and snubs Trudeau at every opportunity, has OK’d the State of Maine to block Quebec power from entering the US. He’s blocked Canadian oil, so why not? But, now who pays for the James Bay Boondoggle and a Muskrat in retreat? Alberta sure isn’t going to the pity party when Quebec goes deep red.
3) Killing Energy and Resources have gutted the treasury. Much higher individual taxes are only the beginning of our pain.
4) A pitchfork sharpening and torch business might be a solid idea right now.
5) Trudeau will raise and lower the flag for a day. Excuse me….but is this man-child serious or is this script being written outside our borders.
___________________________________________
Trudeau will go down in infamy as the protagonist that killed the Dominion of Canada in a future novel.
#125 Apocalypse Dude’s Drunken BIL on 11.04.21 at 11:50 am
#114 crowdedelevatorfartz on 11.04.21 at 8:23 am
@#97 9 to 11
” prepare for a battle folks…
https://www.ctvnews.ca/canada/feds-stay-committed-to-one-china-policy-but-very-concerned-about-taiwan-1.5650327
++++++
Yep.
Should be interesting if Trudeau’s Speech Therapist will be called out of retirement to deal with his incessant stuttering after WWIII starts in the next few years.
________________________________________
Apocalypse, bro, is that you!? Are you back?
Let’s go for a drink!
__________________________________________
Get them to fix his lisp as well. He whistles when he talks, drives me nuts.
I have lately fantasised about returning back to my family’s roots , the UK. I could sell my house in the Lower Mainland and buy a small acrege with a house in Wales for less than 1/2 of what my very so- so house is worth.
A dream come true even if it requires a trans Atlantic move. But my family has been in Canada too long. Most recent transplant was a great grandmother , you have to have at least a grandparent born in the U.K. to be eligible to move there.
Once you retire your options become very limited, if you come from a long time Canadian familly.
Costa Rica or other South American destinations have no interest at all for me. And although I have a great grandfather that was born in the U.S. the medical insurance situation make moving there a impossibility.
I never thought I might want to leave Canada when I was young, but I never thought I would be completely cut off from a property move up { residential to small acrage }by a property bubble / money laundering / tusami either.
Wife won’t consider moving to bunnypatch / tomorrows forest fire disaster zone. When you are in the Lower Mainland you have limited options. Vancouver Island is barely any cheaper, plus the added expense / hassle of the Ferry’s
#85 Dr V on 11.03.21 at 8:06 pm
75 Faron
I will put El Capitan on my list, if even only a “drive by”
in the F150 :(
—
Lomas Lake in the cirque below El Capitan and Mt. Landale is a worthy goal in its own right.
Head west out of Youbou to the Cottonwood creek Main. Gate is almost always locked. Head up the road staying right to the first wash out. Cross it and continue up past the second wash out. At top of following steep incline, take a right up the branch and follow a few more km to an obvious trailhead (old mining trail). About 12 km to there. Trail for a few km climbs steeply to Lomas Lake. Take the flagged path east toward the col between Landale and El Capitan. At the mining tailings pile and the entrance to the old mine, hang a left for El Capitan or continue up then right for Landale.
Anyhow, snowed in for the season after these last storms (most likely).
You almost certainly will see elk in Youbou.
Cottonwood Creek Main: https://goo.gl/maps/3HfViofX7EwBSYoP6
Trailhead: https://goo.gl/maps/J9w2TcrYLnEKzAa28
Lomas Lake: https://goo.gl/maps/gsrmjRH5YqCm3Dz78
Landale: https://goo.gl/maps/AqofucXAa4aXWui88
El capitan: https://goo.gl/maps/AujJsjsrqPqEaemb7
132 Faron – thanks!
I think the part to Lomas lake is as outlined on Gaia.
Yes, could get snowed in anytime now. The elk have
made a big comeback. I have inadvertently ridden into a
herd. I’ll check with a couple of acquaitances who I bet
have done this route.
Mosaic Forestry does have an interactive map to check gate access.
https://www.mosaicforests.com/access
#133 Dr V on 11.04.21 at 3:13 pm
132 Faron – thanks!
Thanks for the link. It’s frustrating that the vandalizing yahoos have ruined access for the rest of us. We are lucky that Queesto keeps North Main open.
Anyhow, if you do have an open gate you will hit an impassable wash out maybe 5km in. We took mountain bikes in.