Nibble the rich

And so it begins.

MPs dribble back to their Commons seats today. Tomorrow the Throne Speech. Then the holidays. And after that the main event. Chrystia’s budget – which will look nothing like the last one (which nobody remembers).

The Speech from the Throne is ceremonial, usually irrelevant and a good occasion to wear a new hat. But it is laden with clues of what’s to come.

Here’s another clue. When Liberal MP Mark Holland, now the Lib House Leader, was asked if the T2 minority would forge a formal deal with the NDP to stay in power, he sayeth:

“When I look at the platforms, there’s a lot of common ground and there are a lot of places where there can be unanimity.”

Yikes. That sure sounds like some kind of coalition thing happening. At the least it suggests Liberal policies sprinkled with Dipper faery dust in order to prevent the government from losing a confidence vote. So what is the ‘common ground’ between the Libs and the socialists?

More spending and a je-ne-sais-quoi ‘tude about deficits and debt? Natch.

Additional government in our lives? More TikTok, less Fraser Institute? Absolutely.

Higher taxes? Eat the rich? Now you’re talkin’.

The entire NDP campaign, if you can recall it, was about whacking the wealthy. In this country, that means people earning more than $250,000 a year. In terms of net worth, if yours is $840,000 or more that qualifies you as a member of the top 5%. To be a 2%er requres a NW of $2.5 million. And those with net worth of $9.7 million possess more than the other 99%. And note this is total net worth – including bloated real estate – not just investible assets.

What did Jag want? First, a wealth tax on those one percenters (by net worth) and, second, a boost in the capital gains inclusion rate. Meanwhile in the US the Biden administration is noodling a capital gains tax on billionaires embracing business wealth – in other words, a tax on the fluctuating value of stock that has not actually been realized. And the crowd in the street applauds.

It’s unlikely that’s coming here. Even a wealth tax is a long shot (but not so one on inheritance and large estates). However the odds seem to be rising that the capital gains inclusion rate will inflated from 50% to (maybe) 75%. The Trudeau gang, if they do it, will point to history. It was Mulroney (a Tory) who bumped the inclusion rate from 50% to 66.67% back in 1988. Then two years later, it hit 75%. Once the Cons were punted, the Libs dropped it back to 50% as an economic stimulator.

What does this mean?

Let’s assume you sell your rental condo after several years of ownership and clear a hundred grand. Half of that is free of tax, while the other $50,000 is added to your annual income. That’s taxed at your marginal rate. Thus the top tax on capital gains in Canada would be one-half of the highest marginal rate, or 26%. Even 1%ers retain the other 74%.

An inclusion rate of 75% (as the NDP demands) would hike the effective tax rate to just under 40%. Big move. The Dippers claim this would Hoover another $45 billion out of the hides of taxpayers. Given that the T2 government plans to increase spending next year by $78 billion (on top of the $140 billion in Chrystia’s first budget) – and the fact that 95% of the population would not be directly affected – it’s irresistible.

What to do? When would such a tax hike take effect?

Traditionally these changes come the moment the finance minister utters them. Legislation is passed later, but the CRA considers it a done deal on budget day. Backdating this to the beginning of 2022 would be grossly unfair and punitive. People make decisions based on the tax code, so it cannot be changed capriciously. And a Jag/Socks alliance would never do that, right?

Well, you can always trigger cap gains now and pay according to current rules. You can also sell off the dogs and trigger losses to offset those gains. An easy way to do the former is to transfer profitable assets into your RRSP or TFSA as a contribution in kind. This is a taxable event, but you don’t actually need to sell anything to accomplish it.

This tax creep on non-registered assets also underscores the wisdom of ensuring all registered accounts are stuffed. The 2022 accumulated room for TFSAs will pass $81,000 in January, plus the top RRSP contribution limit rises to $29,210 (a max of 18% of earned income). And remember you can contribute into the spousal plan of a partner who earns less (to split retirement income and allow low-taxed withdrawals), as well as fully fund the TFSA of your squeeze or adult kids. Nothing will be attributed back for tax purposes.

It’s astonishing, but over 90% of Canadians do not max out the tax shelter vehicles they’re given. And we know that 80% of the dough inside TFSAs is sitting in low-interest cash or near-cash assets like GICs. Many people risk running out of money, with only their financial illiteracy to blame.

Meanwhile those already paying a tax rate of more than 50%, and about to see a big jump in capital gain taxation, would like you to know this: the top 1% earn 9.9% of the income in Canada yet pay 21.1% of all income taxes.

Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.

We don’t have too few taxes. We have too few rich people.

About the picture: “Our dog Hector would love to see his face on the blog, if you’d have him,” writes Ben. “We happily rent our family home on Vancouver Island, and while we skim the MLS from time to time, it feels like people have lost their mind when a 60s bung is listed at $1.4 and sells over asking. Thanks for writing.”

152 comments ↓

#1 Tim on 11.22.21 at 3:23 pm

If we have too few rich people then why is housing unaffordable? Why is it not possible to buy a decent house for under 2 million in Vancouver or TO?

#2 crowdedelevatorfartz on 11.22.21 at 3:26 pm

“Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.”

+++

How many of those 311,850 , 1%’er’s are doctors?

Think it’s hard to find a doctor now?
Just wait.

#3 Household or Individual on 11.22.21 at 3:27 pm

Garth,

Are the 5%, 2%, 1% net worth numbers you cite household values or individual values?

Just curious.

#4 jimmy zhao on 11.22.21 at 3:36 pm

The Fifth Estate has put out an interesting report on the WE Charity, specifically donor deception in Kenya.

I suppose that the PMO office has had enough time to shred documents and wipe their email servers.

#5 Soviet Capitalist on 11.22.21 at 3:42 pm

Thank you, Garth!

#6 BlogDog123 on 11.22.21 at 3:46 pm

The wide swath of ‘voters’ or ‘taxpayers’ in the 60-150k income range is where the big pile of tax money is.

but that’s not who the Libs want to ‘appear’ to piss off… It’ll be death by a 1000 little bites.

#7 millmech on 11.22.21 at 3:47 pm

The smart money buys Enbridge in your margin account, yielding 8.1%, pay margin interest of 2.5% which is tax deductible, drop 30k and get 600 shares and hold another 1400 shares in your margin account. No capital gains tax just sweet divvies(of which the first 40k is tax free in BC if you have no other income).

#8 Habitt on 11.22.21 at 3:48 pm

Too few rich people love it. Thanks again Garth

#9 Polecat on 11.22.21 at 3:50 pm

And David Suzuki calling for blowing up pipelines…

#10 Mark on 11.22.21 at 3:52 pm

“$250,000 a year. In terms of net worth, if yours is $840,000 or more that qualifies you as a member of the top 5%.”

Garth I think you need to update your stat-o-meter. Anyone who bought a house more than 5 years ago and has managed to refrain from suckling their HELOC probably has $500k of equity now, easy. Combine that with a couple hundred grand of savings, GICs, or [email protected] investments and poof there is your $840k. We’re saying only 1 in 20 have managed this? hah…..we Canadians are indeed a sad bunch but not that sad I hope.

#11 Armpit on 11.22.21 at 3:53 pm

How would an increase of Capital Gains Inclusion(75% for example) be applied in 2022 to Capital Loss?

Is it better to apply prior years losses on 2021 Capital Gains? Or pay the tax on the 2021 Capital Gain (50%) and defer past Capital Loss for 2022 Gains.

I suppose it all depends how the Budget is worded and since it’s likely in February, there will be time to decide before filing your 2021 Return.

(in 10 or less lines)

#12 I'mshort_corpdebt on 11.22.21 at 3:55 pm

Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more – GT

Ya, and with examples you like to post about, they all seem to read your blog. hehe

#13 B on 11.22.21 at 3:56 pm

How did you guys protect your money from inflation in the 70s?

#14 Sail Away on 11.22.21 at 3:57 pm

“We don’t have too few taxes. We have too few rich people.”

——–

So why don’t more people just get rich?

Oh, that’s right: they don’t want to work harder just to give it all away and aren’t all lucky enough to have dual citizenship.

It is indeed a sad state of affairs.

#15 Alberta Ed on 11.22.21 at 3:59 pm

I love it when an over-privileged (yet empty) suit who wears a Rolex Submariner talks about whacking the wealthy.

#16 Nonplused on 11.22.21 at 4:02 pm

I have a feeling the capital gains inclusion rate is going to 75%, perhaps in stages, but I also think they will change the RRSP credit from an income deduction to a tax credit capped at 17% or whatever the lowest marginal rate is. The thinking will be “Why should people who pay more taxes get larger tax deductions? Even if we are taxing them on withdrawal?”

The capital gains inclusion rate could also very well go to 100% because this crew cannot tell the difference between income and inflation. Same as they can’t tell the difference between wealth and money.

But perhaps if they keep trying they will eventually find a way to have your cake and eat it too. That would solve everything.

It would be nice if we could get a crew that understood a little about budgeting as well. Taxing the rich, no matter how numerous or scarce they be, does not increase the total wealth in society. That can only be done via production.

#17 A Dollar is a Dollar is a Dollar on 11.22.21 at 4:03 pm

“…..over 90% of Canadians do not max out the tax shelter vehicles they’re given”

Maybe because they just don’t have the money….

“Many people risk running out of money, with only their financial illiteracy to blame.”

Not the vast wealth gap, stagnation of wages, and enrichment of the elites?

Hahahahaha! Good one!

No, what is to blame is the horrific shift of everything to the wealthy since about 1971.

https://wtfhappenedin1971.com/

#18 TurnerNation on 11.22.21 at 4:04 pm

Supply Chain again – yep CV Can do that! The science just changed! Well on Jan 15.
Almost back to normal right?? Get ready for life in a Former First World Country Comrades:

https://www.freightwaves.com/news/canada-to-require-covid-vaccines-for-us-truckers
“U.S. truck drivers will only be able to enter Canada if they are fully vaccinated starting Jan. 15, under new requirements announced Friday.
The Canadian Trucking Alliance pushed back against the Canadian requirement, arguing that it is being implemented too soon and will result in larger numbers of truckers dropping out of cross-border operations. The CTA had also been advocating for a delay on the U.S. mandate.
“We are extremely concerned there is a perfect storm brewing,” CTA President Steve Laskowski said in a statement. “In light of worldwide supply chain disruptions and delays, it’s unclear how the supply chain and the trucking industry, in particular, can withstand further turmoil and maintain the service levels required to deliver critical products Canadians and Americans need.” ”



— From the “You will own nothing and be happy” (2030) Dept. The soft sell continues.
Everyone is to be herded into the crowded and controlled UN Smart Cities. Micro condos/cells.

1. “Lower rent, fewer chores: why grown-up dorm life might be the answer for Toronto’s housing-hungry millennials” (thestar.com)

2.”Expert: Limit living space to shrink building carbon footprint
Energy efficient building renovation is not enough to lessen the climate impact of residential buildings, according to one sustainability expert who is calling for a limit on the living space allocated per person in residential homes. EURACTIV France reports.
Individuals should be allocated living space of between 14-20 square metres for a single person and 40-80 square metres for a four-person household, according to Pia Mamut, a research fellow at the Chair of International Relations and Sustainable Development at Germany’s Münster University who intervened on behalf of her superior, Doris Fuchs.”


— Just another day in a Former First World Country being dismantled.

.Toronto Star -TDSB delays unpaid leave for 290 unvaccinated staffers, citing shortages.

#19 the Jaguar on 11.22.21 at 4:08 pm

“Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.”-GT

No sweat Garth. See below. I’m sure most of these peeps are either currently earning 250,000 clams or soon will be. Otherwise, how will they afford those pricey homes in the GTA? The term ‘report’ versus ‘earned’ duly noted.

“Under the Immigration Levels Plan 2021-2023, Canada aims to welcome at least 401,000 new immigrants annually beginning this year. Between January and August, Canada has landed about 222,000 immigrants.Oct. 5, 2021” +++

Note to CEF- You’re right about the trucks and cold dead hands, lol

@#106 Sail Away on 11.22.21 at 3:27 pm – Gracias.

#20 Bob Dog on 11.22.21 at 4:10 pm

Canada now has over 1.3 million vacant homes:

https://dailyhive.com/vancouver/canada-over-1-3-million-vacant-homes?fbclid=IwAR07GrxR9j8eZpRe1lJjDBwAUNtEo2zgz2DUlmI3QI66U6H8S5hIFNOOJSo

Can we start building guillotines now? Ottawa could certainly use a few.

#21 wallflower on 11.22.21 at 4:15 pm

#13 B on 11.22.21 at 3:56 pm
How did you guys protect your money from inflation in the 70s?

My grandparents sold their home and buyer bought with 100% mortgage from grandparents. Rate was around 16% (maybe 18, I forget). 10 year mortgage term. It was a party that totally floated their boat! But this was early 80s.

#22 Wrk.dover on 11.22.21 at 4:17 pm

Geez Garth, the other day I dipped back into my 5mg blood pressure medicine bottle after months of going commando, what’s your measure right about now?

#23 Wrk.dover on 11.22.21 at 4:24 pm

@#95 The Jaguar
“build a high speed rail system between these two cities to carry freight and passengers?”
_____________________________

Some neighbouring municipalities along with ours, sponsor a bus to run up and down hwy 1 hourly here. The swollen truck nut locals call it the Loser Cruiser, what will the Alberta Trumpets call the inter city rail line? Useless? (I can think of some regional racism they might label it with)

#24 Joe on 11.22.21 at 4:24 pm

As a 2%er, I’ve come to realize how unjust our system is where I have all of this wealth that I don’t need but pay a lot less taxes than most people earning an income in order to get by. I definitely don’t like handouts to people but my wealth needs to be taxed in some reasonable manner. I’m against just taxing against wealth itself (such as unrealized gains) but higher capital taxes on property especially and higher consumption taxes on luxury purchases are good options.

#25 Sail Away on 11.22.21 at 4:30 pm

#11 Armpit on 11.22.21 at 3:53 pm

How would an increase of Capital Gains Inclusion(75% for example) be applied in 2022 to Capital Loss?

Is it better to apply prior years losses on 2021 Capital Gains? Or pay the tax on the 2021 Capital Gain (50%) and defer past Capital Loss for 2022 Gains.

——–

That’s a good question. I believe (but haven’t done extensive research) that the inclusion rate has always before applied equally to gains or losses, so there may indeed be significant benefit in waiting until the inclusion rate increases before realizing losses.

I will research this in more detail but at the moment am quite nose-to-the-grindstone designing emergency stormwater structures. Something about flooding as I understand. Pays well.

#26 Wrk.dover on 11.22.21 at 4:31 pm

#13 B on 11.22.21 at 3:56 pm
How did you guys protect your money from inflation in the 70s?
____________________________

Those people are all dead by now. The rest of us had a party going on. Mega!

#27 Ponzius Pilatus on 11.22.21 at 4:32 pm

Nibble the rich.
Haha.
Look at the picture of the dog.
He looks like he’s ready to take a big bite out of them.
Don’t mess with the underdogs.

#28 Anonymous on 11.22.21 at 4:34 pm

Garth, this statement doesn’t reflect reality, the optics:

Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.

Many more have incomes greater than this, virtually ALL doctors (and many other professionals) are incorporated and pay themselves $150k or so and keep the rest in retained earnings in their corps. I bet the real number of folks who earn $250 or more is more like 1 million. Your asset management firm likely deals with this kind of folk.

Can you get some statistics on that by chance?

How is that different from someone with a corporate pension plan? – Garth

#29 Richard L on 11.22.21 at 4:39 pm

None of the higher income earners vote for the NDP or Libs. That is why it is so easy for them to throw them under the bus. Socialism – equal misery for all. Ayn Rand was right.

#30 Do we have all the facts on 11.22.21 at 4:40 pm

It is worth pointing out that in 2019 the Parliamentary Budget Officer determined that over 3,125 Canadian families had a net worth of more than $1,000,000, including 160,000 families (top 1.0%) that had an average net worth of $18,790,000.

The wealth held by 3,190 families (top 20%) represented close to 75% of the $11.7 trillion in total net worth held by all 16,000,000 Canadian families in 2019.

At the other end of the net worth scale 6,375,000 Canadian households (bottom 40%) held only 1.2 % of the total net worth of all families. This represents average net worth of only $20,200 per family in 2019.

Suggesting that expressing concern over the gigantic gap in average net worth that exists in Canada today makes one a Dipper, or worse yet a Socialist, is just a touch condescending.

The Covid 19 crisis has made the top 1.0% considerably richer and a government elected to represent the interests of all Canadian families has a moral, if not legal, obligation to try and reduce this gap.

I would prefer our Federal government tried to reduce this gap through growth of the Canadian economy but this ship seems to be in dry dock for some reason.

Somebody has to pay the piper and the cupboards of the bottom 40% on the net worth scale are empty. It only seems logical that our Federal government has decided to peek in the cupboards of the top 1%.

Did you not read that those who earn 10% of income pay 21% of income tax? Or that 40% of Canadian households pay no net tax? The top tax rate is 54%. Would you like it to be 70%? Guess how many rich people would stay to enjoy that, and subsidize their neighbours? Destroying capital to feed social program spending is not a viable long-term strategy. – Garth

#31 westcdn on 11.22.21 at 4:44 pm

So apparently I am a 5%ter. Who knew? I am not going tell the government – they will have to find me. It will not be easy as I tend to fly low rather than varying my speed at high levels. Maybe I could have moved up if divorce had not happened.

I certainly don’t feel like a 5%ter especially since I have to run a tight budget already and buy most of my groceries at No-Frills. I continually whine about the amount of taxes I pay. Don’t get me going on “public” employees.

Bring it on Chrystia. I am getting ready for you – unless you are willing to shower me with “free” money.

#32 Do we have all the facts on 11.22.21 at 4:44 pm

Note the first paragraph above should read 3,125,000 families not 3,125 families. Sorry

#33 crowdedelevatorfartz on 11.22.21 at 4:47 pm

@#Lucky 13 B

“How did you guys protect your money from inflation in the 70s?”

+++

We didn’t have any money in the 70’s .
There was a brutal recession going on and gas rationing.
You know.
The “good old days” that I keep hearing the Millennials whine about.

#34 Yukon Elvis on 11.22.21 at 4:51 pm

Higher taxes? Eat the rich? Now you’re talkin’.
+++++++++++++++++++

The Libdip coalition campaigned on that. They promised. And were re elected with a five seat gain in parliament by 65ish percent of the voters. Clear mandate. Democracy at work. Stop yer whinin’.

#35 Felix on 11.22.21 at 4:58 pm

What will help greatly is a substantial tax on dogawful mutts.

The amount of taxes wasted on cleaning up after them, hospitalizing people they bite, and the stupidity they cause to proliferate in humans is easily in the hundreds of billions worldwide.

Dog taxes of at least $15,000 per year per pooch would be a good start.

Credits of at least $2000 per year for each cat would also be a responsible way to encourage intelligent pet partnerships.

#36 Dolce Vita on 11.22.21 at 4:59 pm

DOES NOT COMPUTE

2019 Assets, Debt, Net Worth data *

Financial assets, non pension LESS Deposits in financial institutions LESS Other financial assets:

$649,675,000,000

At 75% taxable, 40% MTR how much of $650 billion has to be sold off to garner $45 billion in taxes?

$150,000,000,000 or 23.1% of the TOTAL. **

* https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001601

Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security

**
$649,675,000,000 Total

150,000,000,000 Sold off per year
112,500,000,000 75% inclusion
45,000,000,000 40% MTR or 23.1% of Total

———————–

Ya, people are going to sell off 23.1% of their Stocks, Bonds, Mutual funds, investment funds and income trusts EVERY YEAR so that the NDP can have their $45 Billion in tax revenue per year.

FANTASY LAND, FAERIE DUST, LSD, MAGIC MUSHROOMS, COVID DISAPPEARS, 2ND COMING.

PS:

If Cdns truly have lost their minds, the it will take 4.33 years for the larder to empty ($650 billion) so the NDP can have their $45 billion in taxes per year.

#37 Neo on 11.22.21 at 5:00 pm

Canadian Forces top-heavy with generals as rank and file shrinks

https://ottawacitizen.com/news/national/defence-watch/canadian-forces-top-heavy-with-generals-as-rank-and-file-significantly-shrinks

Turns out young Canadians are not interested in putting their lives on the line to protect the assets of foreign investors.

How much of a chump do you need to be to join the Canadian military?

#38 SunShowers on 11.22.21 at 5:03 pm

“It’s astonishing, but over 90% of Canadians do not max out the tax shelter vehicles they’re given.”

You’re astonished that 90% of Canadians (assuming the individual median of $37,800) are unable to save ~34% of their after tax income to fill out their RRSP and TFSA?

There are places where 25 grand per year won’t even cover rent.

#39 Felix on 11.22.21 at 5:06 pm

As we saw in yesterday’s monstrous pic, the environmental impact alone of useless canines is easily in the hundreds of billions annually.

Tax the hell out of pooch owners. Save the planet for you and your cats.

#40 Ponzius Pilatus on 11.22.21 at 5:06 pm

#102 crowdedelevatorfartz on 11.22.21 at 2:22 pm
@#95 The Jaguar
“build a high speed rail system between these two cities to carry freight and passengers?”
+++
High speed between Calgary and Edmonton?
Wont happen unless fuel reaches $5:00/liter ( and if fuel cars go the way of the Dodo where will all the govt revenue come from? A Provincial Sales tax?)
The cost in time and manpower to load and unload a freight train at either destination ( outside of downtown?) vs large trucks hauling from supplier dock to customer dock would negate the savings.
High speed Passenger trains from downtown to downtown would be appreciated by the legions of govt bureaucrats in either city….but most other Albertans I know would rather you pry their truck keys from their cold dead hands…..
———————-
We know that you have never been outside of Canada.
So try to listen to people who have.
High speed trains are not build to transport cargo (that’s BB’s job).
They are build to speed people at 300km an hour from A to B.
From downtown to downtown, making short distance flights obsolete.
Furthermore, building a bullet speed train system involves building a complete new railroad with space technology locomotives and cars.
But you’re right, the F-150 cowboys in Alberta will never yield to the iron horse.
They’ve been taking about a bullet train between Vancouver and Seattle for ages.
Never gonna happen.
Nobody is gonna foot the estimated 8B bill.
BTW, they are just building a high speed train between Berlin and Vienna.
Cutting the time to halve.
Time is money, folks.
Billy BOB, is it gonna stop in Praha, and if so, will the cheques pay their share or just leech off the EU as usual.

#41 IHCTD9 on 11.22.21 at 5:06 pm

#103 Quintilian on 11.22.21

They say history does not repeat itself, but it does rhyme.

I think that rates are not going down, down, and down.
But prices will go crash, crash and crash.
———-

Here’s hoping. So far it’s looking good, better than it has in a long while. We’ll see if Trudeau and the BOC can keep their fingers off…

#42 TurnerNation on 11.22.21 at 5:07 pm

Almost back to normal eh? The CV rules are permanent. .

[email protected]_Baber – Ontario’s gov’t is moving to extend Emergency Orders to March 28, 2022. With a simple motion, @fordnation will extend his power to impose lockdowns/measures without debate or vote in Parliament. Emergency Orders without a State of Emergency is an assault on democracy. #onpoli
https://twitter.com/Roman_Baber/status/1462767997769105412


— Florida. Dismanteling the First World.

https://www.newsday.com/news/health/coronavirus/mount-sinai-long-beach-emergency-room-closed-1.50430622
“Mount Sinai South Nassau will close the Long Beach Emergency Department for up to a month and possibly longer starting at 3 p.m. Monday due to a shortage of vaccinated nurses, a hospital release said.”

—-
—- Control over Travel? Yep Big Tech/A.I./Global State will control that. Energy independence is over.

.App outage locks hundreds of Tesla drivers out of cars – The …https://www.theguardian.com › technology ›
2 days ago — App outage locks hundreds of Tesla drivers out of cars. Dozen of motorists report error as company’s CEO, Elon Musk, apologises on Twitter.



— Blockchain: Build for us. Children never again must know normalcy. Tag this #ManufacturingConsent :

https://calgaryherald.com/news/politics/poll-finds-strong-support-for-vaccine-passports-for-children/wcm/6f7eec3c-0358-4e50-b199-ee1c406017b1
“Poll finds strong support for vaccine passports for children”

#43 Dolce Vita on 11.22.21 at 5:11 pm

Re: DOES NOT COMPUTE

Selling off $150,000,000,000 per year or 23.1% of the TOTAL $649,675,000,000 to garner:

45,000,000,000 in tax revenue per year

IS NOT NIBBLING.

Try CHOMP, Rape of the Sabine Women and Men (and Others per Bill C-16).

TRULY, Cdns that voted NDP can’t do basic Math AND their Liberal Partners-in-Law.

Intellectual, Mathematical prowess akin to Monty Python’s “She’s a Witch” rabble.

https://youtu.be/zrzMhU_4m-g?t=34

#44 IHCTD9 on 11.22.21 at 5:13 pm

#104 Sail Away on 11.22.21 at 2:38 pm
#98 IHCTD9 on 11.22.21 at 1:19 pm

Gen X got it all.

——

Absolutely. It’s been wonderful. We bought one house in 2007 and another in 2009, then sold one for good profit in 2020 and continue to live in the other.

There is a pervasive belief floating around that Boomers somehow won a huge RE prize. It’s true in some cases that their RE appreciated very well. However, it’s also true that life is long and you never know what will happen.
———

Gen X got perfect timing – moreso than boomers. But as you say it could end very quickly, well before the finish line.

One thing we X’ers also got that I forgot to mention was immunity. We are a small generation, and our good luck has been overlooked by the Mils who are too busy bashing their parents over the head!

#45 Anonymous on 11.22.21 at 5:18 pm


Garth, this statement doesn’t reflect reality, the optics:

Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.

Many more have incomes greater than this, virtually ALL doctors (and many other professionals) are incorporated and pay themselves $150k or so and keep the rest in retained earnings in their corps. I bet the real number of folks who earn $250 or more is more like 1 million. Your asset management firm likely deals with this kind of folk.

Can you get some statistics on that by chance?

How is that different from someone with a corporate pension plan? – Garth

Its very different, most folks with a govt pension do NOT earn $250k/year if their pension amount was paid to them yearly.

There are a lot more “HIDDEN 1%ers” out there. there are what 300k or more doctors in this country alone, then the top lawyers, dentists, others, and the 311k people only to contribute to this top tax is an illusion.

There are probably more like 1M people who can contribute to more taxes who actually earn $250k+ income a year. Optics, optics. A surgeon shouldnt be able to hide 500k only paying like 10% corp taxes on it away in retained earnings forever.

Not fair to the actual reflected salaried employees who can’t get these same advantages and can only stash $29k in RRSP / year. Not fair.

#46 Faron on 11.22.21 at 5:20 pm

#106 Sail Away on 11.22.21 at 3:27 pm

w/re BillyBob being a “poor dead horse.”

BillyBob doesn’t claim to be fiscally poor. BillyBob is also, by his own words, not poor in having sadistic views on what BCers “deserve”. He also isn’t poor in Czech nationalist zeal. But I’ll give you that he is poor in moral and ethical behavior. Dead horse? Who knows, I’ve never laid eyes nor nose on the guy. But, I hear that Jaguars will eat carrion when times are tough, so it kinda follows. Anyhow, I give your description 6 out of 10. Good enough. Happy to leave this sack of meat alone.

#47 Dolce Vita on 11.22.21 at 5:24 pm

Of course the NDP and Liberal Partners in Law will sell the ridiculous $45 billion in revenue tax from capital gains since they believe this again Monty Python wisdom:

https://youtu.be/t2c-X8HiBng?t=78

Of course, they’ll end slinging mud forever with those beliefs.

Though, I did like the Watery Tart part.

#48 Leftover on 11.22.21 at 5:24 pm

“Tax the rich, feed the poor
‘Til there are no rich no more…”

1971 – Ten Years After – I’d Love to Change the World

It ain’t a new concept, but, then what?

#49 Pylot Project on 11.22.21 at 5:27 pm

Ahhh the 1970’s. As a young GenX-er, I seem to recall having it shoved down our throat that if we didn’t change our environmental ways, we were headed for another Ice Age (no kiddies, not the animated movie). David Suzuki being one of those with his set hair on fire…. wait a sec…

#50 crowdedelevatorfartz on 11.22.21 at 5:28 pm

@#40 Ponzie’s preamble
“We know that you have never been outside of Canada.”

+++
I guess Mexico and the US don’t count?

Reading and comprehension becoming a struggle Ponz?

I was merely responding to a comment regarding “high speed rail between Edmonton and Calgary for people and freight”
And I gave my reasons why it will …
Never happen.

Or did you miss that part in your Faronic typing frenzy?

Time for one of your famous “100km walks in 100 minutes” around the neighborhood.

#51 T-Man on 11.22.21 at 5:29 pm

It could be worse, Crystia Freeland could be prime minister. With Stephen Guilbeault as deputy p.m. I vote Hector for p.m. A milk biscuit in every bowl.

#52 IHCTD9 on 11.22.21 at 5:36 pm

I hate taxes, as anyone who reads my tripe already knows.

But there is a sinister voice emanating from the vicinity of my left shoulder telling me how great it would be to see a crapload of amateur landlords and specuvestors get spiked into the dirt…

Timing is great too, with inflation and rates on the rise.

I’ll try not to listen :)

#53 You know Val on 11.22.21 at 5:37 pm

Socks can print lots more to help BC.
Lots more!

#54 the jaguar on 11.22.21 at 5:42 pm

@Felix #39
Felix. Be sure to check out the gorgeous creature the CEO of Save On Foods is holding in their recent xmas commercial. What a specimen. Maine Coon, I think.

#55 crowdedelevatorfartz on 11.22.21 at 5:43 pm

Maggie is getting a STAMP?
WTH?

https://www.cbc.ca/books/margaret-atwood-to-be-celebrated-on-stamp-by-canada-post-1.6258417

Don’t you usually have to be dead first?
What is the infatuation in Ontario with Atwood?

#56 Ivan the Moderate on 11.22.21 at 5:44 pm

Sleek move by T2 gov by banning potato exports today to punish PEI for electing a PC premier.

#57 IHCTD9 on 11.22.21 at 5:54 pm

#38 SunShowers on 11.22.21 at 5:03 pm

There are places where 25 grand per year won’t even cover rent
——-

Like in post-Trudeau Canada?

Yep, like in post-Trudeau Canada.

Canadians are going to have a hell of a time maxing out the shelters from here on in, because of Trudeau. That’s about as succinct as it gets.

#58 cuke and tomato picker on 11.22.21 at 6:03 pm

Closer to two per cent than five per cent being the best and then there are the rest and the best do not rest. How
you spend your time determines your success. NO DAYS OFF WHEN YOU ARE YOUNG LEADS TO EARLY RETIREMENT AT A YOUNG AGE.

#59 WDL on 11.22.21 at 6:07 pm

I’m an American. Moved here 36 years ago when I was 24. I’m retiring in May 2022. I’m selling my farm ($10,000,000) and heading back to the USA. I can’t stand it here any longer! Besides, in Virginia, I can buy a farm for $1,000,000…..Nuff said!

#60 kommykim on 11.22.21 at 6:22 pm

RE: #44 IHCTD9 on 11.22.21 at 5:13 pm
Gen X got perfect timing – moreso than boomers. But as you say it could end very quickly, well before the finish line.
One thing we X’ers also got that I forgot to mention was immunity.

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

Not really. Most millennials confuse GenXers with boomers. When I called one out on this, they replied, “You’re still a boomer. Boomer is a state of mind!”
ie: A boomer is now anyone that a millennial is jealous of or disagrees with.

#61 pPrasseur on 11.22.21 at 6:22 pm

An inclusion rate of 75% (as the NDP demands)

Not going to happen (just like all previous times you tried your luck at scaremongering about this…). To begin with it’s not in the Liberals program, we just had an election and such a fundamental change would have had to be in the program.

Native Canadians spending budget exploded under T2, that’s how the NDP gets paid… That will likely continue, plus taxing the banks and very high incomes (in the program).

Despite appearances there are still important people in the Liberal party that understand just how hurtful to private investment and to the Canadian economy such a policy would be (not to mention hurtful to a bunch of wealthy Liberal themselves…)

Not as connected as you used to be I guess!

#62 Anne in NVan on 11.22.21 at 6:22 pm

RE: How did we protect our wealth in the 70’s?
(NO we are NOT all dead!)

In the 70’s we were young and naive, and lived in northern BC. We had NO wealth, had bought a $32,000 house in 1973, with 25% down. I don’t remember the interest rate. I hadn’t even heard the word mortgage before. We had two union jobs with good salaries and two children. Daycare was almost impossible to find, then interest rates climbed. We read about it, heard it mentioned on the radio. didn’t really know what it meant. Then more babies and some life difficulties. I discovered nine years later, we could almost pay off our mortgage if we penny-pinched and saved like crazy, for a year. We did not have quite enough money, but I was determined to find it somehow. Then I realized our groceries were the main family expense and decided if we could charge our groceries to Woodwards credit card for a few months, we just might be able to pay off the mortgage. That worked. We did it, to the astonishment of the [email protected]

We had no finesse, we just walked in with a BIG check and proudly plunked it down on the counter, late on the due date, a Friday afternoon. This caused a BIG flap among several [email protected] We had no idea paperwork was needed nor that it would take some time to complete. This resulted in our getting a parking ticket in the bank’s own time limited parking lot!!!! Needless to say we couldn’t afford a parking ticket, so we complained bitterly.
We then paid off the Woodward’s grocery bill over several months, including interest, and thereafter we bought annual season’s ski tickets for the family to celebrate NOT having a mortgage. THAT was the best fun for us all.

Eventually Garth came to town and shocked us all by saying, “If you hold GICs you’re stupid!” And that was the beginning of our relationship with investing, and keeping an eye out for Garth’s comments and books.

THANK YOU Garth! Your travels across Canada to small towns saved us financially!

#63 Michael ion-north-york on 11.22.21 at 6:24 pm

#1 Tim on 11.22.21 at 3:23 pm

If we have too few rich people then why is housing unaffordable? Why is it not possible to buy a decent house for under 2 million in Vancouver or TO?
===

That has nothing to do with the number of rich people. Jobs are concentrated in TO and Vancouver, plus the zoning bylaws distort the land market and make the dwellings scarce.

#64 Michael in-north-york on 11.22.21 at 6:29 pm

I can live with the 75% capital gains inclusion rate, if the collected funds are used to eliminate the budget deficit, rather than to enable more spending.

The greatest problem with the nibble-the-reach mentality is that it gives a false sense of fiscal security. Like we can always tax our way out of deficits and the public debt. Until we can’t.

#65 Quintilian on 11.22.21 at 6:43 pm

Yukon:

The Libdip coalition campaigned on that. They promised. And were re elected with a five seat gain in parliament by 65ish percent of the voters. Clear mandate. Democracy at work. Stop yer whinin’.

It’s really that simple.

That many of us can’t be wrong.
I don’t mind paying more taxes.
We live in one of the best countries in the world.

CEF, and the greedy doctors are welcome to go to USA if they feel taxes are too high in Canada.
But they won’t.

#66 pPrasseur on 11.22.21 at 6:46 pm

If we have too few rich people then why is housing unaffordable? Why is it not possible to buy a decent house for under 2 million in Vancouver or TO?

Nor much to do with wealth, mostly to do with debt and credit.

More precisely, the key factor is that access to credit for first time homebuyers is socialized (CMHC) in this country. This allows the RE pipeline to function and the bubble to grow.

Won’t last forever though…

#67 Another Deckchair on 11.22.21 at 6:47 pm

EVs – if you can afford one, you are passing the pain to the poor.

https://www.wired.com/story/norway-electric-vehicle-tax/

Interesting bit:

“estimated that the popularity of EVs was creating a 19.2 billion Norwegian krone ($2.32 billion) hole in the country’s annual revenue. While EVs might be great news for the environment, their rapid success in Norway is now forcing some serious fiscal consternation. ”

Tax the users of a service (in this case, the roads here in Canada) equally and fairly. Don’t give silly rebates for EV purchasers; a car is a car, and EVs are heavier and put more wear on the roads, and need lots of new infrastructure.

Put that rebate into funding public transportation that benefits all.

#68 willworkforpickles on 11.22.21 at 7:04 pm

What will prove to have been transitory in the few short years ahead will not be inflation but real estate price gains.
The peak time for RE gains has come and mostly for the ones who’ve already cashed out.
There will still be a diminishing number of sales with real gains made but the ebbing of that kind of profit taking has begun.
Real estate as a wealth builder to look forward to anywhere on the North American continent beyond this decade is pure folly.
Dreaming of wealth via RE enrichment here is the fave pastime of the greatly deceived who have no concept of the changes in-conducive with the betterment of North America taking shape from a global perspective.

#69 Linda on 11.22.21 at 7:11 pm

Here’s the thing. The idea that a tax could be imposed on net worth may make those whose net worth is zip jump for joy. However, keep in mind that what is sauce for the goose eventually becomes sauce for the gander. In other words, just because you might not think you will ever have a net worth ‘worth’ taxing, your ever hungry for revenue government may have other ideas. So eventually even those whose net worth is small may see the tax man knocking on the door. I’d add that those who do have $ of a sizable amount also have the ability to take themselves & those $ to countries who do not punish success but instead reward it.

#70 Sail Away on 11.22.21 at 7:11 pm

#50 crowdedelevatorfartz on 11.22.21 at 5:28 pm

Time for one of your famous “100km walks in 100 minutes” around the neighborhood.

——

Ah, walking. Our high-octane hunting pack requires around 1.5 hours of offleash hiking, running or biking daily or we all pay the price. These walks are done on Nanaimo’s endless trails, but now until February is a bit blah since, with work, most weekday walks are after dark with headlamps (oh, quick xmas tip, amazing headlamp: rechargeable LEDLenser MH10. It runs for at least 13 verified hours on a charge and exceptionally bright. Single rechargeable 18650 battery).

I thru-hiked the Appalachian Trail in 1996 starting the day after leaving the army. 15 miles over a full day could be done in pretty much any weather, over any terrain with the gear of the day. Now it’s all super ultralight gear, and in my opinion, there is nothing better than a 20lb pack with a week’s gear. Tech rocks!

The tiny ultralight sleeping pad comes as carryon for all plane trips. That dude comfortably snoring in the corner at the departure gate? Yep, guilty. Can’t sleep on the plane since that’s time to catch up on movies.

#71 Ponzius Pilatus on 11.22.21 at 7:21 pm

#50 crowdedelevatorfartz on 11.22.21 at 5:28 pm
@#40 Ponzie’s preamble
“We know that you have never been outside of Canada.”

+++
I guess Mexico and the US don’t count?
—-_________
Well, you’re the anecdote man on this blog.
Tell us more about your adventures in Mechiko.
You’re the fourth Amigo.
I’m all ears.
I’m sure DG can elaborate.
Two peas in a pod.

#72 George S on 11.22.21 at 7:21 pm

I always thought that taxing the rich was just another way of taxing the non-rich people.
An example would be a dentist making $500k per year, paying $265k per year tax charging 10% more for his services if he is required to pay $300k in tax.
The mostly non-rich people and their insurance plans pay it, the cost of their insurance goes up.
Maybe it turns out to be the best way to tax the bottom 40%. They don’t even notice the $2 extra for two Happy meals.

#73 crowdedelevatorfartz on 11.22.21 at 7:23 pm

@#59 WDL
“I’m selling my farm ($10,000,000) and heading back to the USA. I can’t stand it here any longer!”

++++

I wonder if you should speed that up a bit.
Sell before this year end to avoid any nasty surprises with our beloved Finance minister’s new 2022 budget that may be retro active to Jan 1 2022.

Make your “Condition of Sale” you move out July 1st. 2022

#74 Steven Rowlandson on 11.22.21 at 7:25 pm

One law fits all and no class wars is better. Governments cut your spending!

#75 Wrk.dover on 11.22.21 at 7:41 pm

#62 Anne in NVan on 11.22.21 at 6:22 pm
RE: How did we protect our wealth in the 70’s?
(NO we are NOT all dead!)
________________________________

Paying debt down isn’t the wealth he meant.

Buddy’s question was, “how did you protect your money in the 70’s”. As in debt free balance sheets, I assume.

My crass suggestion was that those kind of folks were older then, and are now departed.

#76 Reality is stark on 11.22.21 at 7:50 pm

You have 2 choices.
You can complain about the rich (Canadian choice).
You can try to become rich (American choice).
That is why Elon Musk moved from Canada to the USA.
The socialist choice is easier but it doesn’t help anyone.
It’s like the boyfriend who kills you with kindness.
Guarantees that you don’t go anywhere, doesn’t hurt you but doesn’t help you either.
This is considered a capitalist blog but it is astonishing to see how many people have already resigned to complaining about “the rich”.
So Canadian.

#77 Ben on 11.22.21 at 7:52 pm

I just laid off 20 people from my business that were making $24 to $29 an hour+ 6% vacation pay, $150,000 life insurance policies per employee, dental, medical benefits. These were full time jobs. Now with Trudeau Liberals for 7 years and John Tory for 6 years and McGuinty, Wynne the last 15 years in Ontario, I can’t do business anymore in Canada.

I retired this week and done with this socialist shit hole.

#78 crowdedelevatorfartz on 11.22.21 at 8:11 pm

@#65 A quintillian symptoms and nary a doctor in sight.

“CEF, and the greedy doctors are welcome to go to USA if they feel taxes are too high in Canada.
But they won’t.”

++++

No.
They will reduce their hours, retire early or leave.

The low tax, low housing price, high salary US beckons…..

But dont worry.
Trudeau and his 1% elitist friends will never wait in line for any medical ailment….like the smelly riff raff in the economy section of the bus.

#79 Ponzius Pilatus on 11.22.21 at 8:20 pm

Even the Queen sends her best wishes to the victims of the floods in the Fraser valley.
300 volunteers fixed the dike.
Helicopters lifted out horses and cows.
Many people helped out.
Military from Alberta is helping out.
That’s what Canada is about.
Shame on CEF, Sailo and Billy Bob, for indulging in other people’s misery.

#80 crowdedelevatorfartz on 11.22.21 at 8:35 pm

@#79 Ponzies Pharmalogical Patter

Your version of current events reminds me of this guy testifying AND defending himself in a Calgary Court.

https://calgaryherald.com/news/crime/calgary-shopper-convicted-of-assaulting-costco-employees-officer-over-mask-enforcement

#81 Why I won't get elected on 11.22.21 at 8:43 pm

The Top 1% in Canada pay 38% of all taxes, the top 20% pay 66% but only earn 49% of all income. The Bottom 50% earn 20% of all income, but pay just 9%. So, when the “rich” leave, and many will, who down the line pays the tax next? The answer: the bottom 50% need to pay more !!!

#82 VicPaul on 11.22.21 at 8:48 pm

62 Anne in NVan on 11.22.21 at 6:22 pm
RE: How did we protect our wealth in the 70’s?
(NO we are NOT all dead!)

In the 70’s we were young and naive, and lived in northern BC. We had NO wealth, had bought a $32,000 house in 1973, with 25% down. I don’t remember the interest rate. I hadn’t even heard the word mortgage before. We had two union jobs with good salaries and two children. Daycare was almost impossible to find, then interest rates climbed. We read about it, heard it mentioned on the radio. didn’t really know what it meant. Then more babies and some life difficulties. I discovered nine years later, we could almost pay off our mortgage if we penny-pinched and saved like crazy, for a year. We did not have quite enough money, but I was determined to find it somehow. Then I realized our groceries were the main family expense and decided if we could charge our groceries to Woodwards credit card for a few months, we just might be able to pay off the mortgage. That worked. We did it, to the astonishment of the [email protected]

*********

Sounds like a wonderful life Anne – full of family adventures and stoic resolve.
Thanks for sharing )

M57BC

#83 Duffy on 11.22.21 at 8:50 pm

Simple question, would you hire the current PM to be your financial advisor . . . . . I didn’t think so, but indirectly that is what some of you voted for.
The media in this country needs their asses kicked for not reporting the ongoing liberal incompetence in Ottawa, investigative accurate reporting at one in Canada was second to none.
It will be a great day when this divisive man in power has moved to Mosambique where he will be liked for a few weeks.

#84 Quintilian on 11.22.21 at 8:55 pm

#78 crowdedelevatorfartz on 11.22.21 at 8:11 pm
@#65 A quintillian symptoms and nary a doctor in sight.

The shortage is created by the “closed shop” they have created with barriers to entry into the profession.

The two doctors, in my own family are the greediest creeps I know.

#85 Barb on 11.22.21 at 8:57 pm

Bet Hector keeps the landlord away, Ben.
Good boy!

“only 311,850 report income of $250,000 or more.”
I expect far fewer people to report next year.
They’ll be busy reducing their income.

There’s always more than one way to skin a … sock.

#86 EAT THE RICH on 11.22.21 at 8:59 pm

We must destroy the wealth gap before it destroys our environment, and us.

#87 crossbordershopper on 11.22.21 at 9:25 pm

I dont want to say anything, but isnt Canada one big undergrond economy. I honestly cant remember when i bought something like with a receipt. I go to walmart buy food , but otherwise its tax free stuff on kijiji, for almost everything. Gas has some tax in it, utilites have a little tax on it, there is property tax, but the whole income and sales tax thing are purely for the latte people and the guys in the drive through at Tim’s. Millions just do there own thing, (grow weed, groceries, swap everything with people. ) My wife needed some drapes, and a few phone call latter, and on the weekend drapes show up. so IDK, Canada taxes are way too high for a reason, most people dont pay them. on purpose yes, but its just the way it is. My 85 year old dad buys cheese from some guy who makes the cheese in his basement in Hamilton. IDK how many violations there is health, tax, zoneing, etc. been doing it for 40 to 50 years. some people work and pay tax, and some people just eat some cheese, for my dad sausage.
If the government wants to get tax income, they need to shake the underground economy. an army of tax collectors, like an army to shake everyone down, thats what I would do.

#88 fishman on 11.22.21 at 9:28 pm

# 37 Neo: We picked up a couple buds for deckhands 3 years ago. Both had 5 years in the Canadian Army, from a combat brigade, 26 & 27 years old.. Trained & whatever in Arab shitholes with the Yanks. I tried to get out of them why they quit. They’d mutter & mumble but nothing specific. Good men. Our gain, Canada’s loss. Still, its disconcerting, with so much expense & time in training. Why couldn’t they keep them? These are our future NCO’s. I’m hearing the RCMP morale is falling apart like a cheap suit too. Big troubles coming my bloggies, big troubles.

#89 Kato on 11.22.21 at 9:29 pm

#37 Neo on 11.22.21 at 5:00 pm
Canadian Forces top-heavy with generals as rank and file shrinks

https://ottawacitizen.com/news/national/defence-watch/canadian-forces-top-heavy-with-generals-as-rank-and-file-significantly-shrinks

Turns out young Canadians are not interested in putting their lives on the line to protect the assets of foreign investors.

How much of a chump do you need to be to join the Canadian military?
_______________________

Confirmed chump here, though things were different in the early 2000’s. In my case as a wee 19 year old it was a chance to develop useful habits and skills (I was a trades guy, not Combat Arms), and see bits of the world I wouldn’t have otherwise. Without it, I wouldn’t be in the career I am now.

I wouldn’t change a thing, though some had a very different experience. It’s still a good way to get an education without punishing student debt, and ends up being a rewarding career for some.

#90 Robert Ash on 11.22.21 at 9:32 pm

Brush cuts for everyone, coming in 2022.

#91 crowdedelevatorfartz on 11.22.21 at 9:37 pm

@#84 A quintillian reasons to avoid reality
“The two doctors, in my own family are the greediest creeps I know.”

++++
Will you visit them in Arizona?

#92 crowdedelevatorfartz on 11.22.21 at 9:40 pm

eat the Rich
“We must destroy the wealth gap before it destroys our environment, and us.”

+++

After you have “cleanly” destroyed everything in an environmentally way and have eaten all the rich……

Where will your next welfare cheque come from?

#93 SoggyShorts on 11.22.21 at 9:47 pm

#38 SunShowers on 11.22.21 at 5:03 pm
“It’s astonishing, but over 90% of Canadians do not max out the tax shelter vehicles they’re given.”

You’re astonished that 90% of Canadians (assuming the individual median of $37,800) are unable to save ~34% of their after tax income to fill out their RRSP and TFSA?

There are places where 25 grand per year won’t even cover rent
*********
But surely there can’t be that many people who are so stupid that they to chose to live in the most expensive area codes while making a wage that they could just as easily earn in another half-price location?
I mean yeah, there are places where 25k doesn’t cover rent, but there are also places where 10k does, so why wouldn’t someone making 37k move? 30k is minimum wage in a lot of places so worst case scenario they lose 7k per year to save 15k

#94 Gregory on 11.22.21 at 9:53 pm

I hear you Ben, just like Ross Perot said, a big sucking sound of jobs in millions leaving the US, it will be Canada’s time to lose millions of jobs, high inflation , high cost of living from gas to food, you have seen nothing yet and poorer Canada as a whole, more crime and a bloated government job sector that become s more bureaucratic by the day. Good luck Oh Canada.

#95 Ballingsford on 11.22.21 at 9:54 pm

35 Felix on 11.22.21 at 4:58 pm
What will help greatly is a substantial tax on dogawful mutts.

The amount of taxes wasted on cleaning up after them, hospitalizing people they bite, and the stupidity they cause to proliferate in humans is easily in the hundreds of billions worldwide.

Dog taxes of at least $15,000 per year per pooch would be a good start.

Credits of at least $2000 per year for each cat would also be a responsible way to encourage intelligent pet partnerships.
******
Felix, where would we be without your humor on this blog. So, I have a cat and dog. $15k tax for dog, $2k credit for cat. BTW, cat needs some dental work, price $2k. So, still $15k out.

Best for the cat to have kittens, about 10 per litter, twice a year, then I’d be ahead by about $25 thousand. (2000 x 10) x 2 – 15000.

Look around without being insulting. Best to have as many children as possible and reap the benefits.

#96 crowdedelevatorfartz on 11.22.21 at 9:55 pm

@#88 fishman
“They’d mutter & mumble but nothing specific. Good men. Our gain, Canada’s loss. Still, its disconcerting, with so much expense & time in training. Why couldn’t they keep them? These are our future NCO’s. I’m hearing the RCMP morale is falling apart like a cheap suit too. Big troubles coming my bloggies, big troubles.”

+++

Yep.
I talked to a couple of Canadian sailors on the way over on a Ferry a few months back.
Both had been in 4 years in and were being pressured to re-enlist.
Neither was going to sign up again.
Too many excellent options and they were sick of the politically correct horsesh!t they were required to read, listen and regurgitate day in and day out.

A friend that is a manager at a City in the lower brainland has people quitting almost daily.
2 years, 5 years senority and walking.
Bleeding good staff to other municipalities or the private sector. Less pc bullshit to deal with.
They are so short staffed its ridiculous and the upper management and HR refuse to see or deal with it.
Cant admit their policies are sh!t.

I’d say anyone in any govt position ( police, fire, garbage, sewers, waterworks, etc., etc., etc. ) is having second thoughts about the job if they have 10 years or less in the public sector game. Take their pension contributions and walking.

Canada’s youth are walking from the bullsh!t that their parents had to put up with.
Loyalty goes both ways and when organizations will gas someone on a pc HR whim…… see ya.

#97 Frank on 11.22.21 at 10:03 pm

The prior post of possible 5% GIC’s means 6.5% to 7% mortgage rates. This will wipe out alot of capital gains in the future on real estate, bonds and some stocks, equities. This will be what we need for lower tax revenues to Ottawa.

#98 Doug t on 11.22.21 at 10:04 pm

eat The rich – history is rife with this and never solves anything ( and I’m not rich) – the world has a population/consumption problem and THAT will lead us to the next World War – tick tick people – tick tock

#99 Michael in-north-york on 11.22.21 at 10:14 pm

#93 SoggyShorts on 11.22.21 at 9:47 pm

I mean yeah, there are places where 25k doesn’t cover rent, but there are also places where 10k does, so why wouldn’t someone making 37k move? 30k is minimum wage in a lot of places so worst case scenario they lose 7k per year to save 15k
===

That’s simple; they won’t get any job in those places. In many industries, all or nearly all jobs are in big cities.

#100 mike from mtl on 11.22.21 at 10:28 pm

#72 George S on 11.22.21 at 7:21 pm
I always thought that taxing the rich was just another way of taxing the non-rich people.
////////////////////////////////////////////////////////////////

Exactly right. If you’re so stupid to be a salaried employed donkey, you’ve got everything coming to you. The CRA would rather spend all their efforts chasing easy cents over difficult hundreds.

Only the working stiffs pay all the taxes in income while the real rich are aliens with many tools to pay negitive local taxes.

#101 the Jaguar on 11.22.21 at 10:35 pm

More on supply chains and the centralization of processes away from the source :

“Some dairy farmers in the B.C. Interior are being forced to dump their milk because of the floods and landslides. With the indefinite closure of the Coquihalla Highway and flooding in Abbotsford, raw milk from the Interior that would typically be processed in the Lower Mainland can no longer be delivered. Those farmers have been told all of their milk would have to be dumped until further notice.

“It does actually show that the whole infrastructure of the province needs to be looked at,” said John Schut with Beatrix Farms.

“Ideally, we would like to see processing in the Interior of B.C. because the majority of the milk has to go to the Lower Mainland for processing.”

Schut has managed to re-route the milk from his farm that was originally destined for the Lower Mainland to Alberta.

Karlee Conway with Alberta Milk ““We can certainly potentially ship milk produced here in Alberta to fill that gap in B.C.,” said Conway. “But right now we just need to be cognizant of safety and that needs to be our number one priority.”

Alberta Milk has set up an emergency recovery fund to support BC dairy farms impacted by the catastrophic flooding has been created. All funds raised will be used to provide urgently needed services and supplies for dairy farms and their families.

And there is this:

Today, Alberta is sending emergency management experts to support BC during this difficult time. Once determined what’s needed, more resources will be sent in the coming days. BC and Alberta support each other during times of need and we are happy to lend a helping hand. ( Alberta Municipal Affairs Minister, Ric McIver)
3:00 PM · Nov 22, 2021

We’ve had a few emergencies of our own these past few years………….

#102 Nonplused on 11.22.21 at 10:41 pm

#67 Another Deckchair on 11.22.21 at 6:47 pm

“While EVs might be great news for the environment, their rapid success in Norway is now forcing some serious fiscal consternation. ”

EV’s are not currently great news for the environment; they use the same grid as everything else to get their electricity, which means around 85% fossil fuels. Plus there is the lithium mining and disposal problem. (No, it is not all recycled as of yet. More plans.)

Are we really getting anywhere by reducing fossil fuel consumption by at best 15% with EV’s while we dig huge holes in the ground to get lithium and then stack the toxic stuff up when the batteries die?

And then given that EV’s tend to be focusing on markets like SUV’s and the Tesla race cars maybe we are actually encouraging more consumption than would occur if everyone bought a Corolla? And charging batteries is not 100% efficient. Keeping the batteries warm in the winter is not 100% efficient. The inverters the cars use are not 100% efficient.

EV’s are a great solution for someday. Not today though. First we need some clean, reliable electricity. Well, a whole lot of clean, reliable electricity. In other words a whole lot of nuclear power plants, and all the infrastructure that will go with it. Real infrastructure like 300 amp mains to every home and a charging station in every garage. Not $10 day care.

This whole green thing can be summed up by one of those Jackery power stations. Sure, it’ll run your fridge. For about 2 hours. If it’s fully charged, which takes 6 hours. And after 5 to 8 years the batteries are junk. The whole thing is a scam to sell useless Chinese power inverters and solar panels that nobody needs or can really figure out how to use. It’s just more e-waste. Throw it in the pile with your old iPhone 3.

#103 Garth's Son Drake on 11.22.21 at 10:52 pm

We need to start with baby steps, like getting food coming into stores.

2 highways are open, connecting Vancouver with the rest of Canada now. The railway is supposed to open sometime this week.

Highways East of the Okanagan have been open the entire time.

Yet, there is still no eggs, milk, bread or meat anywhere.

In person, the shelves are empty. Online, they have cancelled my home delivery orders for another week.

I guess another week of eating chocolate filled donuts, which is the only thing I have been able to secure as food. I guess it is better than no food.

#104 Ponzius Pilatus on 11.22.21 at 11:18 pm

COVID is almost over in BC.
Thanks to the strong leadership of Bonny and Comrade Horgan and he’s merry band of Sozis.
Best wishes for your recovery, Mr. Premier Horgan.
————————————————
OVID-19 recoveries in B.C. have been outpacing new infections, causing the number of active infections across the province to fall to a 15-week low of 3,137.

New infections have been below 400 in each of the past three days, including 390 new cases on November 20, 332 infections on November 21 and 330 cases in the past 24 hours.

#105 Ballingsford on 11.22.21 at 11:20 pm

#95 Ballingsford on 11.22.21 at 9:54 pm
35 Felix on 11.22.21 at 4:58 pm

Best for the cat to have kittens, about 10 per litter, twice a year, then I’d be ahead by about $25 thousand. (2000 x 10) x 2 – 15000
*****
Felix, analogy here is to have a balanced portfolio (dogs and cats if you will). Having a luxury item and taxes on a faithful companion dog can be offset with the returns on cats, and you get to have both dogs and cats and still be in the money.

Portfolio balance.

Someone told me not long ago that there are 2 situations that will get you into emergency quicker. Heart attack or a cat bite.

#106 Cash is king on 11.22.21 at 11:52 pm

Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.

__________________________________________

That doesn’t mean they don’t make it … but rather that they don’t REPORT it!

Of the remaining 28+ million taxpayers, imagine if:

-> 1 in 6 didn’t fully report their income, intentionally or otherwise
-> and that, on average, their undeclared taxes payable was $20K each

then I just found you $67B dollars … plus easily another $15B in fines. Most importantly, this is a recurring find since most offenders won’t try their luck again once CRA comes a knocking!

*** these are conservative numbers based on what I have seen in my own city. Has anyone offered you to pay CASH in the past year for goods or services?

#107 DON on 11.22.21 at 11:59 pm

#101 the Jaguar on 11.22.21 at 10:35 pm
More on supply chains and the centralization of processes away from the source.

**********

Yup. Also need to revisit just in time inventory which is all the craze but obviously not weather proof.

Certain things should be produced locally.

The farmers should open up their farms and sell to the locals in need. But they could be fined for selling unpasteurized milk. Then again it is a state of emergency so latitude should be given. Nothing like fresh fresh milk.

#108 DON on 11.23.21 at 12:07 am

#96 crowdedelevatorfartz on 11.22.21 at 9:55 pm
@#88 fishman
“They’d mutter & mumble but nothing specific. Good men. Our gain, Canada’s loss. Still, its disconcerting, with so much expense & time in training. Why couldn’t they keep them? These are our future NCO’s. I’m hearing the RCMP morale is falling apart like a cheap suit too. Big troubles coming my bloggies, big troubles.”

+++

Yep.
I talked to a couple of Canadian sailors on the way over on a Ferry a few months back.
Both had been in 4 years in and were being pressured to re-enlist.
Neither was going to sign up again.
Too many excellent options and they were sick of the politically correct horsesh!t they were required to read, listen and regurgitate day in and day out.

A friend that is a manager at a City in the lower brainland has people quitting almost daily.
2 years, 5 years senority and walking.
Bleeding good staff to other municipalities or the private sector. Less pc bullshit to deal with.
They are so short staffed its ridiculous and the upper management and HR refuse to see or deal with it.
Cant admit their policies are sh!t.

I’d say anyone in any govt position ( police, fire, garbage, sewers, waterworks, etc., etc., etc. ) is having second thoughts about the job if they have 10 years or less in the public sector game. Take their pension contributions and walking.

Canada’s youth are walking from the bullsh!t that their parents had to put up with.
Loyalty goes both ways and when organizations will gas someone on a pc HR whim…… see ya.

*********

I am observing the same…in my circles. Lots of turnover.

Another reason is dealing with incompetence.

#109 Sail Away on 11.23.21 at 12:08 am

#79 Ponzius Pilatus on 11.22.21 at 8:20 pm

Shame on CEF, Sailo and Billy Bob, for indulging in other people’s misery.

———

I don’t know who you are. I don’t know what you want. If you are looking for validation I can tell you I don’t have empathy, but what I do have are a very particular set of skills. Skills I have acquired over a very long career. Skills that make me a nightmare for people like you. If you let your arrogance go now that’ll be the end of it. I will not look for you, I will not pursue you, but if you don’t, I will look for you, I will find you and I will verbally eviscerate you with devastating derision.

#110 Dr V on 11.23.21 at 12:44 am

6 Blogdog123

“but that’s not who the Libs want to ‘appear’ to piss off… It’ll be death by a 1000 little bites.”

Agreed

16 Nonplused

“but I also think they will change the RRSP credit from an income deduction to a tax credit capped at 17% or whatever the lowest marginal rate is.”

They might go with a higher marginal rate, but not THE highest. It might still be a good deal, just not AS good.

#111 SoggyShorts on 11.23.21 at 1:21 am

#99 Michael in-north-york on 11.22.21 at 10:14 pm
#93 SoggyShorts on 11.22.21 at 9:47 pm

I mean yeah, there are places where 25k doesn’t cover rent, but there are also places where 10k does, so why wouldn’t someone making 37k move? 30k is minimum wage in a lot of places so worst case scenario they lose 7k per year to save 15k
===

That’s simple; they won’t get any job in those places. In many industries, all or nearly all jobs are in big cities.
********
Total BS. Were talking about literally ANY job. There are loads of jobs outside of the GTA and GVA. In fact, MOST jobs are outside.

#112 millmech on 11.23.21 at 2:05 am

#38 Sunshowers
Why are so many Canadians choosing such low paying careers? I seriously do not understand how one looks at a low paying poverty level career and says “yup that is the life for me”

#113 millmech on 11.23.21 at 2:13 am

#99
So why choose a career that hobbles you financially and restricts your mobility to only a few big expensive cities. Does no one even do critical thinking anymore when it comes to career choice?

#114 Under the radar on 11.23.21 at 4:54 am

Some of my residential tenants are struggling to keep up. I hear the fear in their voice and see the anxiety on their faces. I was once where they are. Without them having to ask, I lower their rent. Be nice on the way up as you never know who you meet on the way down.

#115 Wrk.dover on 11.23.21 at 5:50 am

#102 Nonplused on 11.22.21 at 10:41 pm
This whole green thing can be summed up by one of those Jackery power stations. Sure, it’ll run your fridge. For about 2 hours. If it’s fully charged, which takes 6 hours. And after 5 to 8 years the batteries are junk.
________________________________________

NS Power sent me literature on their idea of a ‘power station’, with the idea of storing my excess solar output in what they coin as ‘back up batteries’, still on grid tie with them though.

In the fine print, they talked about the grid drawing power from the batteries at periods of peak demand, even though they tub thump them as a back up for me.

So, what happens if there is an outage right after they draw down the power on my $7000 ‘back up’ battery?

With me as the investor, I would expect the juice in the battery gets consumed here at home after dark. Nope, not on their offer.

Every comment on the Nibble the Rich thread portrays what is going on quite successfully, the 1st world status of Canada is being dragged down to 2nd world levels to nip consumption. Winning!

The slide further into the 3rd world is inevitable.

#116 Do we have all the facts on 11.23.21 at 6:07 am

Garth I get your concern about income taxes and no I would never suggest using income tax legislation as the means to narrow the widening gaps in net worth.

As indicated I would prefer to rely on economic growth and the growth of work related income in the Canadian economy as a whole but for some reason that option has not caught Justin’s eye.

Many fortunes being made today involve removing middlemen and women in North America from the equation. Amazon, Airbnb. Shopify, Walmart, Costco, etc.
Everyday more goods are being purchased on line and more checkouts and money related transactions are being automated. A plan to retrain employees that are losing their jobs to technology may exist but it does not have a very high profile.

Canadians with money to invest can earn income by investing in the stock of successful companies but for over 40% of Canadian households day to day living and inflation is eating every dollar of their limited income.

I understand that your blog is based on the provision of advice to families with surplus income to invest. My concern was that the Covid 19 crisis where $700 billion debt based dollars was injected into the Canadian economy widened, not narrowed, the large gap in the net worth of the most fortunate and the least fortunate.

In my mind our Government could have devised a more equitable way of investing or distributing $700 billion borrowed from future generations of Canadians.

By looking in the cupboards of the rich I was suggesting a review of how net worth was increased and devising ways to increase the net worth of the less fortunate and to slow the rate of growth of the net worth of the more fortunate. I view an increase in marginal tax rates as low hanging fruit that actually discourages investment in the Canadian economy.

The first thing I would do is to modify the Charters issued to all banks so that a minimum percentage of their assets must be invested in loans that actually contribute to the Canadian economy. The second thing I would do is place limits on the buy backs of corporate shares and find ways to encourage corporate investment in economic expansion. Far too much cash sitting on the corporate books these days it is time to put this cash to work.

History has shown that when the gap between the net worth of the very rich and the net worth of the balance of the population gets too large civil disobedience is usually the result. Our current government does not seem to have attended their history lessons.

#117 OK, Doomer? on 11.23.21 at 7:51 am

With all the supply chain issues and shortages, why is it that we seem to have an over supply of politicians and activists claiming to know how to stop climate change?

Not really what we’re needing now. Toilet paper would be more useful.

#118 Dharma Bum on 11.23.21 at 8:56 am

#87 Crossbordershopper

My 85 year old dad buys cheese from some guy who makes the cheese in his basement in Hamilton.
———————————————————————————————–

Now THAT brings some really disgusting images to mind. Hint: It involves toes.

Anyhoooo…the whole tax thing. It’s all a ruse. The only peeps that will be significantly affected by higher taxes are the proverbial middle class.

The bottom don’t pay. The rich won’t really feel any pinch. It’s the middlers in that sweet spot that will be cut off at the knees, as usual.

They can than the dippers, libs, tree huggers and the wokesters.

They love to cut of their own noses to spite their faces.

#119 SunShowers on 11.23.21 at 9:12 am

#93 SoggyShorts on 11.22.21 at 9:47 pm
“30k is minimum wage in a lot of places so worst case scenario they lose 7k per year to save 15k”

These StatCan figures are all in after-tax income, so the Canadian median of $37,800 after tax works out to (very) approximately $45k per year before tax, which is quite a bit higher than minimum wage.

#112 millmech on 11.23.21 at 2:05 am
“Why are so many Canadians choosing such low paying careers? ”

Likely has something to do with the fact real hourly wages have barely budged in the last 40 years.

#120 Philco on 11.23.21 at 9:13 am

In the top .5% has its advantages.
Didn’t want to be poor.
Didn’t want to be middle class.
Not cause I’m an ass.
Because I KNOW HOW IGNORRANT the government IS.
Its The ONLY way to protect yourself.
Lots to say here but I’m to busy CYA ing from this stupidity.
So pushing for $20mil because I like steak and lobster and the wife likes it more.

#121 Common Sense on 11.23.21 at 9:32 am

Taxing the rich means we all pay. Taxing rich folks who control prices – think business owners – means prices go up to cover the taxes. So we pay. Taxing the rich salaried folks results in salary inflation as corps compete for talent. Said corps raise prices to cover the increased salaries and taxes. So we pay.

Think higher prices for goods, higher banking fees, higher utility costs, higher everything.

I’m not saying don’t tax the rich, or saying do tax the rich, I’m saying don’t be naive about how things are paid for. We all pay one way or another. Thinking only the rich will pay and the “regular” folks can get a free ride is simplistic and childish.

Some complain 40% of Canadians don’t pay tax. Others complain those same 40% of Canadians can’t save. Well they can’t save because all their money is used paying high prices to cover other peoples taxes. It a downward spiral because of high taxes.

Here’s a thought experiment… you can take $1 from a million people – taxation, higher prices, whatever – and they might grumble and complain but eventually they pay. Or you can take $1,000,000 from the rich person that “can pay more of their fair share”. It’s now in that rich person’s interest to fight it: lawyers, accountants, alternatives, or just plain moving. So now that $1,000,000 becomes a lot harder to realize if at all.

Taxes are inflationary. Taxes make things cost more. But they also improve the lives of the vast majority of the population. It’s just finding the right balance and I’m afraid this government is taking us past the tipping point.

#122 Observer on 11.23.21 at 9:56 am

#109 Sail Away on 11.23.21 at 12:08 am
#79 Ponzius Pilatus on 11.22.21 at 8:20 pm

Shame on CEF, Sailo and Billy Bob, for indulging in other people’s misery.

———

I don’t know who you are. I don’t know what you want. If you are looking for validation I can tell you I don’t have empathy, but what I do have are a very particular set of skills. Skills I have acquired over a very long career. Skills that make me a nightmare for people like you. If you let your arrogance go now that’ll be the end of it. I will not look for you, I will not pursue you, but if you don’t, I will look for you, I will find you and I will verbally eviscerate you with devastating derision.

^^^^^^^^^^^^^^^^
Admission of a psychopath.

#123 Philco on 11.23.21 at 10:06 am

#117 OK, Doomer? on 11.23.21 at 7:51 am
With all the supply chain issues and shortages, why is it that we seem to have an over supply of politicians and activists claiming to know how to stop climate change?

Not really what we’re needing now. Toilet paper would be more useful.
———————————
Planets been warming since day one. What we think is about 1deg per yr. the last few 1000..Now they say 1.5deg? So planet earth is now pissed at us so its burning up or washing away?
When there was nobody (dumbass humans) here there was no complaining.
This just in….. shit has been happening for FOREVER!
You weren’t here!!
Its an agenda with leverage?
maybe they fired up HAARP? lol
Ya i drive an EV 90% of the time..Helping? Nope
Takes 50% more metals to build a EV. No grid to support the retarded theory’s.
I don’t have all the answers but know when their pitching shit.

#124 Philco on 11.23.21 at 10:17 am

#121 Common Sense on 11.23.21 at 9:32 am
————————–
Firstly the market controls prices not the rich.
We all stop buying the market collapses.
When the gov turn loonies into ass wipe through printing…..Peeps want to use their ass wipe ASAP.
Thats inflation my friend.

You can tax the rich 100% it wont fill the hole. Its waaaay to big.
You’ll just run them off to a friendlier jurisdiction.
Politicians are dumb and dumber.
The real problems is T2 and friends they all have the same blueprint.

#125 Ben @ Smart Borrowing on 11.23.21 at 10:18 am

We don’t have too few taxes. We have too few rich people.

———————————–

Couldn’t agree more! This country needs many things but more and/or higher taxes is not one of them.

#126 Sail Away on 11.23.21 at 10:19 am

#119 SunShowers on 11.23.21 at 9:12 am

“Why are so many Canadians choosing such low paying careers? ”

Likely has something to do with the fact real hourly wages have barely budged in the last 40 years.

——–

‘Don’t believe everything you read on the internet, even if it includes a picture and a quote.’

-Abraham Lincoln

#127 Big dog on 11.23.21 at 10:45 am

The rich get richer and have done very well these past few years. The rich are eating well, always do. Let some crumbs trickle down to those less fortunate, otherwise the pitch forks are comin

#128 millmech on 11.23.21 at 10:46 am

#119
That makes no sense, a lot of people in their careers who now just started who are complaining on here, some have been at it for twenty years. So I guess apathy is how you get through life, just drudging through the daily grind never trying to improve ones lot.
There are so many people who have great opportunities but never sacrifice their time or effort to learn or earn more because it takes less effort to bitch about how “privileged” someone else is. That privilege is actually
” a strong work ethic”.
I have a quick read on this site every morning with my first coffee, quite informative little bits of information, twenty bucks says you will eviscerate this site as being full of “privilege”.
https://richhabits.net/

#129 millmech on 11.23.21 at 10:53 am

#119
A must read for everyone is this article, you will see where money goes and on what days it goes there instead of the bank or investments. If that money was kept in bank accounts instead of these businesses people would be way better off, but the numbers do not lie.
https://www.msn.com/en-ca/money/topstories/poor-is-more-pot-shop-chain-says-low-income-areas-good-for-sales/ar-AAR0EbB?ocid=msedgntp

#130 MLW on 11.23.21 at 10:55 am

#77 Ben on 11.22.21 at 7:52 pm
I just laid off 20 people from my business that were making $24 to $29 an hour+ 6% vacation pay, $150,000 life insurance policies per employee, dental, medical benefits. These were full time jobs. Now with Trudeau Liberals for 7 years and John Tory for 6 years and McGuinty, Wynne the last 15 years in Ontario, I can’t do business anymore in Canada.

I retired this week and done with this socialist shit hole.

————————————————————-

Well if you couldn’t sell the company then I question what you built other then a job for yourself.

FWIW your clients will be absorbed by local competitors and your laid off employees will be employed by end of week, likely with raises.

#131 SunShowers on 11.23.21 at 11:27 am

#126 Sail Away on 11.23.21 at 10:19 am

There are multiple sources for this data, if one bothers to look.

Diet version:
https://globalnews.ca/news/3531614/average-hourly-wage-canada-stagnant/

Full-fat version:
http://www.csls.ca/reports/csls2016-15.pdf

#132 Quintilian on 11.23.21 at 11:31 am

“Where will your next welfare cheque come from?”
CEF:
Why, why, why ,do you post such imbecility?

The welfare cheques don’t amount to much.

If the taxation system was fairer, there would be a special wealth tax surcharge on the rich for the purpose of a direct transfer to the poor, given that poverty is basically created by an equitable and broken redistribution of society’s wealth.

#133 Quintilian on 11.23.21 at 11:33 am

*equitable
should read:
inequitable

#134 ImGonnaBeSick on 11.23.21 at 12:05 pm

#122 Observer on 11.23.21 at 9:56 am

It’s a modified quote from Taken … A joke. Take a deep breath, now go out and try to find a sense of humour…

#135 Henry Lytvynov on 11.23.21 at 12:10 pm

#77 Ben, have you dissolved the corp and filed? If you are still in the process I am interested to talk, maybe some of your legacy could be saved and live on… We can get in contact via our Host I assume?
In any case, cudos to your success and enjoy your retirement.

#136 Russ on 11.23.21 at 12:25 pm

In the world of financial advice…
would you trust the opinion of someone or organization who regards this cartoon as realistic?

https://www.wsj.com/articles/trimming-your-stocks-without-triggering-the-irs-11637336867

Trimming stocks the way they trim a sail? The article has already lost credibility. IMHO

Cheers, R

You need help. It’s an illustration. – Garth

#137 Shawn Allen on 11.23.21 at 12:28 pm

Taxes are for the Middle People

#118 Dharma Bum on 11.23.21 at 8:56 am
#87 Crossbordershopper

Anyhoooo…the whole tax thing. It’s all a ruse. The only peeps that will be significantly affected by higher taxes are the proverbial middle class.

The bottom don’t pay. The rich won’t really feel any pinch. It’s the middlers in that sweet spot that will be cut off at the knees, as usual.

*************************
Agreed. Taxes are mostly for the middle people.

High income people mostly can earn through corporations and have various ways to reduce taxes.

Taxes on the REPORTED income of the wealthy are indeed high. But there are many legal ways to grow wealth without generating reportable income. 50% of capital gains being tax free is one. That missing 50% never even shows up in income?

“Of the 28,519,410 taxpayers in this country, only 311,850 report income of $250,000 or more.” Key word, REPORT?

One thing worse than having to pay a lot of income tax? Not having to pay much income tax because of actual low income.

#138 Dragonfly 58 on 11.23.21 at 12:33 pm

I am sorry Garth, but all those high income earners hiding behind a Corporate front to minimize taxes are going to have to brought down to the same basic tax exposure all the rest of us face. Otherwise if things continue the way they are going there is evenually going to be a taxpayers revolt. In a fair and just society you simply can’t have a situation where average people pay taxes at a given rate with very few ways of legaly sheltering income and substantially wealthier people can get off with a significantly lower rate of taxation on their true income through a tax strategy that is unavailable to normal working people.
At a certain point it distorts the fabric of society.
Case in point, wife and I had according to Stats Canada a quite decent income. around top 35% – top 25% and yet from the year 2000 onward we were increasingly non competetive in rural Langley B.C. real estate . And not a country estate , just a very small acrege with a modest house perhaps a small shop or barn. Pre 2000 they were regulary trading in the $350,000 – $425,000 range, and at that were not an easy sell and had been modestly priced for decades. Suddenly they started rapidly climbing in price, 2.5 – 3.5 million today.
Where did all this money come from ? If two somewhat above average earners paying our taxes could not afford these properties in say 2005 when they were probably in the low $400’s who is buying them today at multiple millions ?
There are only so many CEO’s of multinational Corps to go around and I think many of them are buying the nice property’s in my area, you know the many that are $5 million and up.
When did it become necessary to be a multi millionare to own a very middle class property ?
Something is very wrong in Canada, huge amounts of money showing up with little or no tax paid.
Is it no wonder many of us feel the game is completely rigged ?

#139 Steven Rowlandson on 11.23.21 at 12:44 pm

“We don’t have too few taxes. We have too few rich people.”

If we had unmanipulated markets maybe we might have more wealthy savers and investors and just may be the real estate market might look less attractive as an investment.

#140 Sail Away on 11.23.21 at 12:55 pm

#131 SunShowers on 11.23.21 at 11:27 am

Re: Wages and productivity

——

Someone else mentioned this to you a while back, SS, but just because employee productivity may increase exponentially due to technology (excavator vs. shovel), it does not necessarily mean that employee is more valuable per hour than before.

Heck, the logical extension is full robot use/no employees, not employees making massive wage for nothing.

#141 R on 11.23.21 at 1:10 pm

102 Non Plused:
Thank You. Keep spreading the FUD about the inevitable EV transition. But you are in the majority. It is thinking like this that keeps the Tesla 24 month out of the money long calls still inexpensive.

#142 PastThePeak on 11.23.21 at 1:10 pm

#20 Bob Dog on 11.22.21 at 4:10 pm
Canada now has over 1.3 million vacant homes:

https://dailyhive.com/vancouver/canada-over-1-3-million-vacant-homes?fbclid=IwAR07GrxR9j8eZpRe1lJjDBwAUNtEo2zgz2DUlmI3QI66U6H8S5hIFNOOJSo

Can we start building guillotines now? Ottawa could certainly use a few.
+++++++++++++++++++++++++++++++

How many of those are cottages that are only partially winterized and used for perhaps 30% of the year? Canada, home of a bazillion lakes – it is likely a lot.

But don’t let facts get in the way of a Marxist narrative…

#143 KLNR on 11.23.21 at 2:16 pm

@#142 PastThePeak on 11.23.21 at 1:10 pm
#20 Bob Dog on 11.22.21 at 4:10 pm
Canada now has over 1.3 million vacant homes:

https://dailyhive.com/vancouver/canada-over-1-3-million-vacant-homes?fbclid=IwAR07GrxR9j8eZpRe1lJjDBwAUNtEo2zgz2DUlmI3QI66U6H8S5hIFNOOJSo

Can we start building guillotines now? Ottawa could certainly use a few.
+++++++++++++++++++++++++++++++

How many of those are cottages that are only partially winterized and used for perhaps 30% of the year? Canada, home of a bazillion lakes – it is likely a lot.

But don’t let facts get in the way of a Marxist narrative…

at least that many cottages/cabins in Ontario alone

#144 Russ on 11.23.21 at 2:19 pm

Russ on 11.23.21 at 12:25 pm

You need help. It’s an illustration. – Garth
———–

No disagreement there, we all need a bit help.

And it is but one reason we seek the guidance of a financial advisor. In trust, we expect a certain level of detail. To associate oneself with an illustration that is wholly inaccurate is clumsby, at best.

BTW, the only thing accurate about that cartoon is the bow-down attitude of an IOR era race boat and maybe the colour scheme.

Will you recommend this guy?

#145 Common Sense on 11.23.21 at 2:27 pm

RE: #124 Philco

No way all people could stop buying all things to coordinate a price crash because (1) we are too self interested and not sufficiently coordinated and (2) we would have done it already if we could have in any number of things – gas, food, housing…

Prices increasing due to taxes isn’t a switch that is flipped; it is far more nuanced than that. The reality is increased costs will get passed down to consumers. Market forces and competition create buffers but ultimately prices will rise.

For example, if there was no income taxes I could reduce employee pay such that their take home is the same. My costs decreased, and market forces would result in prices decreasing accordingly given the lower labour costs. The inverse is also true with increasing costs including increased taxation.

Money supply is another, not the only, inflationary lever, where more dollars now worth less are needed to buy the same thing that “costs” the same or has the same real value.

Increased taxation means you need more dollars that are worth the same to buy the same thing that now costs more to produce because input costs increased.

Either way we pay.

Otherwise the rest of the post is saying the same thing – the rich will find another way and avoid excessive taxation. But it’s easy politics.

#146 Sail Away on 11.23.21 at 2:41 pm

#138 Dragonfly 58 on 11.23.21 at 12:33 pm

I am sorry Garth, but all those high income earners hiding behind a Corporate front to minimize taxes are going to have to brought down to the same basic tax exposure all the rest of us face. Otherwise if things continue the way they are going there is evenually going to be a taxpayers revolt.

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Completely off the mark, D. The corporate model is fully and freely available to all. I can start one, you can start one, Joe down street can start one….

The very definition of equality is the same opportunity being equally available to everyone. What you suggest is restricting equality.

In life, some people are more successful than others. If my corporation fails while yours is a success, it does not give me the right to take some of your success.

Similar if I didn’t start a corporation, but you did and were successful.

I personally do not like paying way more tax than the vast majority of Canadians. But you know what? Those are the rules of the game that apply equally to all.

#147 Gravy Train on 11.23.21 at 2:55 pm

#20 Bob Dog on 11.22.21 at 4:10 pm
“[…] Can we start building guillotines now? […].

#142 PastThePeak on 11.23.21 at 1:10 pm
“[…] But don’t let facts get in the way of a Marxist narrative….” The French Revolution ended eighteen years before the birth of Karl Marx, but don’t let facts get in the way of creative anachronism. :)

#148 Millennial 1%er on 11.23.21 at 2:57 pm

Nice of you to assume and my wife’s registered accounts aren’t maxed

#149 Millennial 1%er on 11.23.21 at 2:58 pm

And btw, make it 311,850 + 1. I had a good year

#150 Dragonfly 58 on 11.23.21 at 3:13 pm

Your statement Sail Away might technically true. But in reality very few jobs are going to be available to a Corporate entity as opposed to a direct employee.
Wife was a RN for over 30 years.{ retires at the end of the month } She works for a Health Region here in B.C. Fraser Health. Just like thousands of other RN’s. There are no jobs given to Personal Corp RN’s, 0 . Just people who work for the employer. Fraser Health would laugh anyone out of the job interview who presented themselves as anything other than a prospective employee. The Union contract for one thing would make such an arrangement impossible.
And so on for the vast majority of us who work in an employee / employer situation. In other words the vast majority of Canadians.
Your statement does not hold water in the world the lower 80% of us live in.
Which was exactly my point.

#151 Dragonfly 58 on 11.23.21 at 3:17 pm

Even so called ” consultants ” who work a large percentage of their billed hours for a single client are deemed to be employees for tax purposes. And pay taxes just like the rest of us wage slaves.

#152 Sail Away on 11.23.21 at 4:05 pm

#150 Dragonfly 58 on 11.23.21 at 3:13 pm

#151 Dragonfly 58 on 11.23.21 at 3:17 pm

Re: fairness

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Choices, pal. Your wife was not forced to work as an RN, it was a choice.

She had and has full equality of opportunity to be a doctor. As do I, as do you.

Complaints are only valid if there is inequality of opportunity.