Sucking it up

Yesterday we talked about the funny-money policy called MMT. The kiddos love it. Big government is all the rage these days, unless you own a Peterbilt or live in Brooks.

As you know, Canada is special and getting specialer. We have universal health care, soon-to-be-free higher education, almost-free childcare, free monthly cheques for the wrinklies, free benefits for having kids, and now twenty-dollar-a-month subsidized Internet. Soon free tooth care and free drugs. Forty percent of people (according to the prime minister) have been completely relieved of paying any net federal tax. The top 10% of workers pay 48% of all the income tax. Come Thursday, you can expect this to increase.

In short, it’s a country where politicians get elected by promising to give more to the many and milk the few. No surprise there. It’s human nature. The fairest tax in the land is the one some other guy pays.

Are you in that 10% bracket?

Well, if your income is $103,000 a year, you made it. Here are income percentiles in Canada…

  • The top 1% of income in Canada in 2022 = $258,034
  • The top 2% of income in Canada in 2022 = $190,119
  • The top 5% of income in Canada in 2022 = $132,493
  • The top 10% of income in Canada in 2022 = $102,869
  • The top 50% of income in Canada in 2022 = $37,695

Now, square that with the average Canadian home costing $816,720. In Toronto and Van the average detached property is over $2 million. Even in the burbs, it’s $1.8 million. No wonder every economist is singing the same tune lately. This is unsustainable.

But while it will take many rate hikes and many months (or years) to meaningfully address real estate inflation, you can count on higher taxes to have an immediate bite out of the higher incomes listed above. The unspoken political agenda is reminiscent of what the French are experiencing – the drive to achieve a universal social and economic equilibrium by bringing the bottom up and taking the top down. The recent Trudeau-Singh pact vaults us closer.

Is this but a journey to a fairer world?

Many believe so. But others see it as wealth confiscation and the government-sanctioned murder of incentive and ambition. When successful people give up 54% of their income and folks in the top 10% fork over almost half the taxes, while universal benefits are clawed back and means-tested, ‘fair’ is a subjective thing.

It’s above this pathetic blog’s pay grade to suggest wholesale change (like a flat tax) so let’s just assume (a) most readers are 10%ers, or above and (b) you’re a little pissed. After all, this is a world where corporate pensions have largely disappeared, most government workers have gold-plated DB plans, houses suck off a huge amount of cash flow and it’s getting increasingly difficult to achieve personal financial security.

Derek’s a financial guy. Just sent me this lament:

I have beef with the defined benefit pension system which, as you know, is a rip off for taxpayers. Recipients receive pensions reflecting their last or past five years, not the amount they actually contributed. CPP does not provide such generosity.  For every teacher, police officer or bureaucrat whose rank increases around five years before they retire costs, at my rough estimate, a couple of hundred thousand dollars in extra pension funding. How many people have done this and what does it cost taxpayers?

Billions. But change isn’t coming. In Canada the fiscal moderates within the Liberal party have been purged, while the Cons scuttle behind pied piper Pierre Poilievre down a path to eternal opposition. Sigh.

We’ll have a scorecard on new spending and new taxes for you on budget night – this coming Thursday. But I think you can see where this is all headed.

The best strategy to protect your income? (Besides moving to Bermuda, if they let you in.)

Simple. Shelter it.

The advent of MMT makes existing tax shelters even more cogent than in the past. Remember that this year you can stuff up to $29,210 in an RRSP and receive a honkin’ big refund for doing so. Even better, direct it to a spousal plan of your lower-income squeeze to harvest the same refund plus the ability to retrieve it at a lower rate in future. RRSP assets multiple tax-free and you can cash them in at your own pace in retirement (or a sabbatical) to control the marginal rate. Never forget that these things favour folks with higher incomes, so dig in. Only those with DB pensions should not embrace the RRSP.

TFSAs are a special no-brainer. The accumulated room has swollen to $81,500 – so for a couple that’s $163,000. Keep contributing six grand each for 15 years and invest in growth assets giving about 7% and you’ll have $770,000. That should yield income of $4,200 a month. Forever. No tax. No clawback of govy benefits. Add in CPP and OAS and you have a reasonable (almost) tax-free income of about $85,000. Mix in as much RRSP income as you want or need until age 71 when a small amount must be withdrawn annually from a RRIF. You’ll still be in the top half of income earners.

Or, you can complain.

About the picture: “I’ve been reading your Blog for a few years and it has been a great source of information,” writes Mitch. “Here is my dog Banks… Otherwise known as Banksy Boo which my boys call him.   He’s a field line Golden Retriever who loves to fetch, chase birds in the fields and play with my boys.”

187 comments ↓

#1 Prince Polo on 04.04.22 at 3:46 pm

How about all the wealthy mortgage owners rent out their unused RRSP & TFSA room to loser renters like me. Alas, what to do if one’s fully stuffed his/her own accounts & still has leftover holdings that need to be tax-sheltered from the “Chip & Dale: Rescue Rangers” tandem of King Singh & our dear Photo-op Minister? Oh how I wish these guys were actually a cartoon……

#2 Km on 04.04.22 at 3:49 pm

We moved from Bermuda twelve years ago as we were going to need a place more affordable to live so we came back to BC. To Vancouver. Biggest mistake we ever made as the housing bubble was just forming and there is certainly no tax breaks or affordability here anymore. I wish we could go back and get out of Canada, it is cheaper to live there now than it is in Canada.

#3 yvr_lurker on 04.04.22 at 3:49 pm

soon-to-be-free higher education
—–
??? Where is it free? My kid has just got into UAlberta, UVic, UCalgary for next year, and is waiting on UBC. No signs that anything is or will soon be free… Did I miss something important in the mail?…

#4 PeterfromCalgary on 04.04.22 at 3:52 pm

I sent you a fine example of my photo editing skills and a picture of our Finance Minister by email. I hope you use it on budget day.

#5 In Dog We Trust on 04.04.22 at 3:52 pm

lets just opt out of inflation says Polyester Pierre https://twitter.com/EvanLSolomon/status/1511018751952625669?fbclid=IwAR2TFd8kO1Fk9NHgPLvwhQcKLSfpBwoswJ1Pb9KfdSYjgacB7UKBIWrpgSU

#6 jimmy zhao on 04.04.22 at 3:56 pm

I like getting free things, but want someone else to pay for them.

#7 ElGatoNeroYVR on 04.04.22 at 3:56 pm

Yes ,RRSP’s are amazing.
According to the brackets above I found myself well into the 10% yet after catching up on the RRSP,s I get a tax refund. That has been the case for majority of the past many years.
I am surely not alone in this situation so No wonder we have a revenue problem in Canada as the tax revenue is getting deffered.
A bit of math shows that in retirement I can forecast around 15-20% effective tax rate.
That is where I think a flat 20% tax rate on every dollar of income for everyone while eliminating all tax credits and moving to a per family unit taxation (include children) to support families with children would get us more as a society.
I doubt it will happen in my lilfetime so I will keep being a good rules follower, maximize the tax advantage ,legally and follow the advice from people smarter than myself ,spend much less than you make and invest (not save in low risk stuff) the difference.
Every time I did not do that I found myself in a ..well ..less than ideal financial position to say the least.

#8 Ankush on 04.04.22 at 3:57 pm

Banksy Boo is one handsome Boy..

My first and main question is real estate about to get cheaper ? If so , when ? Was looking to get another property. Can you shine your crystal ball and provide us with an Approx time….

#9 Millennial 1%er on 04.04.22 at 3:59 pm

Millennial 1%er, I created this nick before I actually became one. But now I’m ballin, smell ya later bottom 99%ers

For real though, me and my wife are seriously considering moving to the states. Was speaking with the principal engineer of my org and he says he just can’t make the case to move back from Seattle, it would cost him way too much in taxes.

#10 Søren Angst on 04.04.22 at 4:01 pm

Life time Gross Income $, 44 years of working (21 to 65 years of age)

Top 50% 1,658,580
Top 10% 4,526,236
Top 5% 5,829,692
Top 2% 8,365,236
Top 1% 11,353,496

The rest I will leave up to your imagination w.r.t. buying a home in YVR or Trauma.

On my behalf, all I will say is:

Skip marry for love the 1st time and jump right to marry for money the 1st time AND 2nd time, etc.

#11 Millennial 1%er on 04.04.22 at 4:01 pm

Oh yeah, and for what its worth, I pay so much in taxes (last year I got clipped for 220 bones), that I’m seriously considering just quitting my job and doing Academia forever. Either that, or I’m going to the states

This country has done nothing for me, so I owe it nothing.

#12 mitzerboyakaQueencitykidd on 04.04.22 at 4:01 pm

Dogs are great
beer is good

there’s more than one way to skin a cat

#13 Luciano Franco on 04.04.22 at 4:01 pm

How about a 15 % flat tax rate and HST raised to 20% .
Would it bring in the same amount of revenues as the current system , Garth?

#14 ElGatoNeroYVR on 04.04.22 at 4:03 pm

Just to make it clear ,my actual tax paid ( after refunds) historicaly has been around 18% , hence my 20% thought.Wgen Iwas making less then 6 fig it was higher as I had less to contribute into RRSP’s ,one and one’s family must live afterall and that costs money.

#15 gB on 04.04.22 at 4:06 pm

Just curious: if someone invested say…oh….7000$/year in an RRSP every year for….25 years. AND re-invested to tax return as well (around 2000$ extra)….at an average rate of return say….7% compounded over that 25 years(Garths balanced portfolio suggestion).

How much would be in there after 25 years I wonder?

I’m just a lowly healthcare worker so that sort of math exceeds my bandwidth.

#16 Work for Cash on 04.04.22 at 4:08 pm

The top 1% of income in Canada in 2022 = $258,034
The top 2% of income in Canada in 2022 = $190,119
The top 5% of income in Canada in 2022 = $132,493
The top 10% of income in Canada in 2022 = $102,869
The top 50% of income in Canada in 2022 = $37,695
—————————
How many Canadians work for cash and do not report it.
Ranges from construction workers, home renovators, retailers who work under the table, cleaning ladies, auto mechanics, people who resell services, brand new items on Kijiji, Craig’s list etc. to name a few. My sense is that there is a growing number, and if we get taxed more , as in this upcoming budget, and ever greater incentive to do so. Has this issue ever been addressed or can it?

#17 None on 04.04.22 at 4:08 pm

Funny how 2/3 of the post is about how unfair we treat the wealthy and then the last 1/3 is about how those same people can avoid paying it.

Should we tell him?

#18 Barry on 04.04.22 at 4:10 pm

Or invest in CDN dividend growth stocks with mostly an A to AA investment grade rating from DBRS. Throw in a few BBB as well. That’s what I’ve been doing for decades and it pays off with the Dividend Income Tax Credit. It may increase your gross income which claws back OAS but big deal. You pay diddly squat in taxes for the DG risk – I’m nearly 70 and deferred by OAS until this year at a 36% premium (only .92% of CDNS do that) while over the past 5 years (well since 2009 but bearing in mind future payments from OAS and the claw back) I’ve/we’ve loaded up our TFSAs for a combined yearly income of $23,000 if we need it which we don’t … yet. I/We just keep buying more. Also – in anticipation of a capital gains tax increase on Thursday I sold off every preferred share I’ve owned for years – the income is the equivalent of my OAS benefit of around $10,600 a year. I did this in December and declared for tax year 2021. In addition I sold off Power Corp in April, 2020 at a loss and then bought it 30 days later so it wouldn’t be considered a superficial loss by CRA. It’s up 50% since but I used the capital gains from the Preferreds against those losses so my tax liability is zero. If you’re going to be collecting OAS soon be aware – the gross capital gains BEFORE you add the capital losses is counted as income and your OAS will get clawed back based on that AND the additional OAS amount. So not only have I saved thousands on the OAS clawback when I file next year for 2022 but of course probably saved on Capital Gains tax too if the budget on Thursday increases it. I’ll get some of my OAS clawed back but the rest of this free money will pay income and property taxes. I’ve done all this on my own without a financial advisor, mutual funds, ETFs or “wealth management” team. You can too. All the information is out there and you can thereby stop your whining about being a victim. Start here and it’s free http://www.dividendgrowth.ca/dividendgrowth/doku.php?id=subscribers&do=recent

#19 alexinvestor on 04.04.22 at 4:12 pm

A country cannot MMT if the US doesn’t MMT, otherwise they risk the currency going down the drain (see yen). Those gold-plated government pensions aren’t going to be gold-plated at a 50cent dollar … and remember, these government pensioners are trapped with zero alternatives (much like the Argentina pensioners).

The one thing I do worry about with these instruments like RRSP and TFSAs is that if they force Canadian content.

#20 Dr V on 04.04.22 at 4:13 pm

Great post oh bearded one. And interesting income stats.

In my very best couple of years, my company’s net before tax income could have nudged me into the 2%. But the biggest T4 I ever had did not crack the top 10%.
In retirement, each of our tax returns will only make
the 50%.

Funny how that works.

#21 Dirty D. on 04.04.22 at 4:18 pm

> Or, you can complain.

Why can’t we do both? Or are you against open discussion here?

#22 Old Boot on 04.04.22 at 4:19 pm

The LNDP must be looking the PR cap gains exemption with the same look a leopard reserves for an elderly, limping gazelle.

If Joe Home renovator/flipper can no longer make a living after paying tax on capital gains and is forced to re-join the ranks of tax farm serfs, it’s a double win for the government. Scoop those tasty PR cap gains from every house sale in the country, and drive more worker drones back into the easily taxed labour force.

Provincial and municipal governments in BC and Ont don’t want to kill the goose that lays the golden PTT, and would require bribes to support it. What could the feds offer BC and Ontario to go along with the plan?

#23 Andrewski on 04.04.22 at 4:20 pm

Exactly, shelter your shekels!

#24 sailedaway on 04.04.22 at 4:21 pm

I ran away from Europe 13 years ago because it was becoming a socialist shithole. People in France are NOT happy.

I’m lucky enough to be able to up and go as my biz can be run from anywhere in the world. Keep up the good work Justin….

#25 Joe Lalonde on 04.04.22 at 4:22 pm

CANADIAN ECONOMY : IT’S FALLING AND CAN’T GET UP!

Nations that fail to adapt to the end of financialization and globalization will unravel.

We all sense the global order has cracked. The existing order is breaking down on multiple fronts. Those who have benefited from this arrangement are doing everything in their power to patch the cracks, while those who chafed under the old order’s chains seek a new order that suits their interests.
The task now is to make sense of this complex inflection point in history.
Two statements summarize the transition from the existing global order to the next iteration:
1. Finance dominated resources in the old order. Now the roles will reverse and real-world resources will dominate finance. We can’t “print our way” out of scarcities.
2. Reshuffling currencies and credit will not stop the breakdown of the global order’s “waste is growth” Landfill Economy Model.
Playing financial tricks has extended the life of an unsustainable economic model that glorified “growth” from wasting resources. By expanding credit “money,” the current global order fueled unsustainable consumption driven by unsustainable speculation.
Stop expanding “money” and credit and the global order of “growth” implodes.
Unfortunately for all those who benefited from soaring wealth and income inequality, the trick of expanding “money” and credit has reached systemic limits. The dam holding all the toxic debt, leverage and fraud is finally cracking.
Gordon Long and I discuss this in The Dam Has Cracked (37 minutes). Our thesis is that the dominance of resources over finance leads to a multipolar global order, an order that has the potential to be far more stable and sustainable than the unsustainable, destabilizing “waste is growth” model that depends on financial fraud to maintain the illusion of “growth.”
As I explain in my book Global Crisis, National Renewal , scarcity leads to either social disorder or rationing. This article explains how government’s role will shift from boosting demand (the Keynesian Cargo Cult) to limiting demand in ways that maintain the social contract.
From demand stimulus to demand destruction (The Age of Loss)
Nations that fail to adapt to the end of financialization and globalization will unravel. Every nation has a choice which path it takes: cling on to the doomed existing order of financialization, globalization and the “waste is growth” Landfill Economy or embrace a multipolar world and a degrowth model of doing more with less and incentivizing efficiency and durability rather than the shoddy planned obsolescence of the debt-dependent Landfill Economy.

#26 Ballingsford on 04.04.22 at 4:24 pm

Yesterday you mentioned “,,,soon to require annual interest charges larger than almost every social program (over $40 billion).”

The fixed link to PEI cost 1/2 a billion. 40 billion could build a fixed link to Newfoundland Labrador, or 40 big hospitals.

#27 Jim on 04.04.22 at 4:25 pm

Garth,

Your wrong, I’ve heard their is as many as 25 liberals that will not adhere to additional social spending. It seems to me this liberal/NDP partnership is doomed to fail if and when the moderates in the liberal party decide to vote independently and push back on these policy initiatives.

#28 Midnight’s on 04.04.22 at 4:26 pm

Good article, Garth, and it should make one think in the future. You forgot to mention that Trudeau is predicting food shortages. And for why, Covid. Right!

https://wap.business-standard.com/article-amp/international/trudeau-warns-of-difficult-time-food-shortages-due-to-covid-19-122033000102_1.html

#29 Frank on 04.04.22 at 4:27 pm

Your post reminds me of an exchange I had on FB market place this last weekend. I was renting a 2 bedroom Apartement and I listed it at 1100 ( Montreal). I received a barrage of criticism of how opportunistic landlords such as myself are destroying the fabric of social housing in Quebec.
One suggested I take a long one way trip out of Montreal, to which I replied , “ you are much better off if tax payers such as myself stay in Canada”
I knew it would start a crap storm, and it did but it was fun and I was bored.

#30 IHCTD9 on 04.04.22 at 4:28 pm

I’m sticking with the time honoured LQAM strategy. Low-key, low cost living. Be a hard target for taxation. Luckily, Trudeau thinks I’m suffering and need a pile of free cash and a bunch of handouts. I accept with a smile.

At this point, I think there is little argument that this country is coming off the rails. It’ll take a decade plus for the pain to manifest, but we’re obviously going to spend ourselves into the ditch. Trudeau and Co. absolutely do not care about racking up massive debt, nor do many Canadians. At some point, we’re going to have to shift from hoping this can somehow get fixed, to planning for the inevitable fallout.

#31 Danger Dan on 04.04.22 at 4:30 pm

I’m sure all this extra largesse will be used as a justification for getting rid of the TFSA altogether. After all, these are the same people that think you should own nothing and be happy.

#32 Damifino on 04.04.22 at 4:30 pm

In Canada the fiscal moderates within the Liberal party have been purged, while the Cons scuttle behind pied piper Pierre Poilievre down a path to eternal opposition. Sigh.
———————————-

And spare a sigh for the hapless conservative voter in Vancouver Center who’s representative in Ottawa is, and always will be Hedy Fry. She’s vintage Liberal furniture that stays with the house.

She may be 80 but she’s just getting started. The conservative leader could be the messiah himself. It wouldn’t make a scrap of difference here.

#33 dragonfly58 on 04.04.22 at 4:32 pm

I love your part about the TFSA as I do have a modest DB pension. Not enough contribution years for anything like the full pull, it was after all a second career. Truly a no brainer.
But the part about rinse and repeat the 6 G’s a year for 15 years does present a bit of a problem.
Not the $6,000.00 part. If I put heart and soul into the effort I could probably come close.
Rather the 15 years part. By then I will be in my early 80’s .

#34 Doug t on 04.04.22 at 4:34 pm

Heck I think I will just stop working and contributing to society and get me some FREE STUFF from the gubberment- MAKE IT RAIN B*TCHEZ –

#35 IHCTD9 on 04.04.22 at 4:34 pm

#27 Jim on 04.04.22 at 4:25 pm
Garth,

Your wrong, I’ve heard their is as many as 25 liberals that will not adhere to additional social spending. It seems to me this liberal/NDP partnership is doomed to fail if and when the moderates in the liberal party decide to vote independently and push back on these policy initiatives.
———

If you work for Trudeau, you either toe the line, or you kick the pebbles.

#36 Søren Angst on 04.04.22 at 4:42 pm

Despite US 2Y10Y Treasurys inverting all day (getting close to 0 as I type) all my stuff is + yeah oil, + yeah maple.

Invert away I say.

——————-

In light with what happened in Bucha, Ukraine Italia announced today it will agree to an EU EMBARGO of Russian energy.

https://www.fanpage.it/politica/il-governo-apre-allembargo-del-gas-russo-ma-avverte-subito-un-tetto-ai-prezzi-a-livello-europeo/

France probably will, that whole country is nuke energy central. Germans mulling it (as usual but have 0 reserves unlike Italia with 1 year of reserves). Austria says No which means Germany, France & Italia will have to help them out with energy.

The smaller economies do this in the EU to get what they want (withholding approval), holding the big 3 of the G7 hostage e.g., The Netherlands *, Poland, Hungary (e.g., blocking the EU Recovery Plan for Covid until they get their pound of flesh).

The rest I don’t know as they are small economies relative to Germany, Italia and France.

Brits who knows?

Depends on how well BP-Shell has found alternates. I know Gov Italia and its ENI have already found alternates.

I will say this, pretty unanimous in the EU + Brexit that Russian energy must be embargoed (oil, gas, coal) to stop cash flow to their War Criminal military.

The UK’s Daily Mirror summed it up best in 1 word:

https://i.imgur.com/HrF5pFU.png

————————-

* Complained about Italian corruption and taxation whilst it hands out a flat rate 5% Corporate Tax to US companies that operate in the EU. Italia had put $200 billion in the EU Recovery Fund but of course could not get all of it out when it needed it thanks to The Netherlands by in a large. Italia got €68.9 billion in grants and €122.6 billion in loans.

Ya, Italia had to pay interest on money it had put into the fund.

The Netherlands walked away with +$10 Billion to approve the Fund.

Welcome to the EU and Carpetbagger nations like The Netherlands.

They are more than just clogs, windmills, dykes, crap food, tulip bulbs, a red light district and 420 bars.

Why I will not travel there after the pandemic is completely over. And, I hope they do not come to Italia, not welcome by me anyways. You will see their well healed in Milano shopping high end stores and sojourning in Bellagio, Lago Como.

#37 Linda on 04.04.22 at 4:47 pm

‘Banks’ is one fine looking pup:)

My partner has finally pulled the retirement plug. Just in time it appears given the income earned fell into that 10% category. No pension other than CPP, but has been salting away $ in a B&D portfolio for years plus RRSP & TFSA so should be able to enjoy a comfortable standard of living upon retirement.

The top 50% of income in 2022 is only $37,695? Is that supposed to read the bottom 50% instead? Because if that is the average for earnings of all those falling between the 50% to 100% mark then good golly, we are collectively not as rich as we think.

In response to Derek regarding DB pensions other than CPP. First, the amount of $ contributed to CPP do not reflect what the average Canadian will receive. When I retired maximum CPP contributions were just over $2,500 per annum. Unless I missed something the yearly maximum is still under $3K per annum. If your average Canadian collects $700 per month or $8,400 per annum in CPP – very few Canadians qualify for the maximum of $1,253 per month & even fewer wait to age 65 to collect – most will collect far more in benefits than they paid in. However, I was paying some $8,000 per annum into my DB workplace pension plan. So what I get from my workplace plan reflects that much higher contribution. I’d add that not all government worker pension plans are backed by the taxpayer. Ours specifies that if the plan has a deficit the responsibility for paying off that deficit belongs to the plan members, NOT the government/taxpayer. But, say the pundits, the taxpayer is employing those government workers & paying into their plan. True, but such payments are part of the DB plan provisions & are part of the compensation package. Just as contributions by private employers to employees pension plans are part of the package. Or matching contributions to employees RRSP’s for that matter.

#38 catalyst on 04.04.22 at 4:53 pm

Is the reason those with DB’s should shun the RRSP due to the potential to take a one-time payout if your job expires early or is it because you don’t want too much income generated in your golden years?

Both. – Garth

#39 Quintilian on 04.04.22 at 5:06 pm

“Yesterday we talked about the funny-money policy called MMT. “

The existing monetary scheme is several hundred years old, and although it has been tweaked, it does not change the fact it was originally set up to protect the divine rights of kings.

It was corrupt then and it is still a mechanism for the rich to take from the poor.
The system ,as is, grants an incredible amount of power to a group of non elected people, who for the most have never held real jobs.

I prefer MMT and although it will be administered by politicians, who are mostly corrupt, at least they can be voted out.

#40 Linda on 04.04.22 at 5:16 pm

I checked CPP contribution rates. In 2021 the maximum contribution was just over $3,166; in 2022 the maximum contribution will be just under $3,500. This reflects the changes to the CPP which will bump up future payments. Formerly CPP might replace 25% of one’s working income upon retirement. I believe that percentage was based on receiving the maximum upon retirement. The higher contributions should see up to 1/3rd of working income replacement upon retirement, presumably with the same limitations regarding actual contributions, years of contributions & whether the recipient chose to take CPP before age 65.

In 30 years. – Garth

#41 baloney Sandwitch on 04.04.22 at 5:19 pm

We have to accept reality and adapt. We are in the age of wealth redistribution in Canada. The opposite happened in Trump’s America. We may be going back to the 50’s again (and it may not be a terrible thing) along with de-globalization and some degree of de-Americanization.

#42 Ed on 04.04.22 at 5:21 pm

So you suggest the tired old liberal Charest should lead a brave new party?

Its time for change,we need new younger blood not regurgitating platformless cadavers.

Newer is not always better and experience is priceless. Not defending him (or supporting him) but Charest is only 63. The leader of the free world is 79. – Garth

#43 IHCTD9 on 04.04.22 at 5:25 pm

#25 Joe Lalonde on 04.04.22 at 4:22 pm
CANADIAN ECONOMY : IT’S FALLING AND CAN’T GET UP!

Nations that fail to adapt to the end of financialization and globalization will unravel.
—— –

Globalization isn’t ending. It’s a natural evolution of economies and straight up logical when looking back in time. Since the dawn of peoplekind, humanity has prospered in numbers and efficiency. Globalization is the last step before (if) we get off this planet. Talent moves towards reward. Resources are extracted where it is done most efficiently. The entire planet benefits. Just look at how cheap consumer goods are compared to the 80’s. Dirt cheap. Why? Because they’re made in countries where folks work for 10 bucks a day. That 10 bucks is an improvement for them, and a windfall for us. This works right across the board.

#44 Hindsight on 04.04.22 at 5:26 pm

Wake up Garth !!

#45 Linda on 04.04.22 at 5:30 pm

#2 ‘Km’ – Bermuda is indeed a beautiful place, but it does have some drawbacks. First, there are no fresh water springs, rivers or lakes. All of Bermuda’s fresh water is rainwater, collected via roof catchment systems or brought in via tanker. Second, Bermuda has a small land mass. At just over 53 square kilometers in size, it can’t support high population growth. Getting residency is no slam dunk; citizenship is much more difficult to achieve. Further, being an island nation Bermuda is subject to the same potential loss of land mass due to sea levels rising. In point of fact old maps of Bermuda show that the island has been losing land mass to rising sea levels ever since the British began to use it as a port back in the 1600’s.

#46 Blobby on 04.04.22 at 5:38 pm

Holy Crap!

I’m in the top 1% according to last years tax return!

(And I STILL cant* afford a house in Vancouver)

* or wont.

#47 Reality Check on 04.04.22 at 5:39 pm

Forty percent of people (according to the prime minister) have been completely relieved of paying any net federal tax. The top 10% of workers pay 48% of all the income tax.
——————————

I wonder how this might skew immigration. If I am a P.Eng, software analyst or doctor looking at where to immigrate I might be sensitive to Canada’s massive tax load, ridiculous cost of housing and high cost of doing pretty much anything fun. Maybe the US or Europe would look economically friendlier to me.

Part of the rational of RE pumpers is how immigration will drive home prices even higher. I have never really bought this as most of the immigrates I know do not move here as millionaires able to plunk down $500k on a $1.5 million Toronto tear down. Nor do they generally end up in jobs making $150k a year.

Making Canada so unattractive to high earner immigrant would further drive a nail into this pumper fantasy of immigrant housing lust driving average TO/YVR home prices to $4-5 million.

#48 Sail Away on 04.04.22 at 5:48 pm

#15 gB on 04.04.22 at 4:06 pm

Just curious: if someone invested say…oh….7000$/year in an RRSP every year for….25 years. AND re-invested to tax return as well (around 2000$ extra)….at an average rate of return say….7% compounded over that 25 years(Garths balanced portfolio suggestion).

How much would be in there after 25 years I wonder?

——–

$9k per year @ 7% interest for 25 years = $658,000.

Here, try some other scenarios:

http://moneychimp.com/calculator/compound_interest_calculator.htm

#49 Reality Check on 04.04.22 at 5:49 pm

Nobody seems to be talking about an increase to the capital gain inclusion rate.

Seems we missed the bullet last year but not so sure we will this year as the NDP/Libs look for easy tax targets.

Nothing easier then to target us people that invested wisely and make money from those “ugly” things called investments.

Funny in the good old days this Liberals used to be run by the bleeding heart establishment liberals and Bay St so fiscal policy was not punitive to the rich. Now that it’s run by the woke all bets are off and we live in a fantasy world where only the suckers actually work and pay taxes.

#50 AM in MN on 04.04.22 at 5:50 pm

#140 Old Boot on 04.04.22 at 3:39 pm

Thanks for the history lesson yesterday. More needs to be said.

Many people don’t understand how important the issue of telling history truthfully is, particularly as it relates to property rights in Canada.

This is a massive land that could be opened up to a lot more housing and other uses if the issue of “who’s land is it?” could get settled.

Most Canadians have no clue how the west and north were settled, or what it was like for the early settlers.

Even the discussion of which tribes are “owed” apologies is in dispute. The other day Jr. went to Williams Lake, BC, but many of the tribes involved refused to show up because of ancient disputes with the dominant tribe, who along with their white lawyers are now fully invested in the professional grievance industry.

#51 HH on 04.04.22 at 6:02 pm

Free monthly cheques for the wrinkles? They’re not free. You have to pay income tax on them unlike the child benefit which is tax free.

OAS is free. You paid zip to get it, unlike CPP. – Garth

#52 Damifino on 04.04.22 at 6:03 pm

#35 IHCTD9

If you work for Trudeau, you either toe the line, or you kick the pebbles.
————————

And here I was thinking elected members worked for their constituents and represented them in the house in accordance with their collective input.

Silly me. That’s old school Garth Turner stuff.

#53 Cheese on 04.04.22 at 6:17 pm

As someone who grosses around 35k working in the hospital, I wouldnt mind paying my fair share of taxes, but proportionally it would be much harder.

#54 Bob Loblaw on 04.04.22 at 6:18 pm

Just tax capital gains from real estate at a 20% rate and the deficit would vanish overnight and debt would be zero in a decade.

#55 Ponzius Pilatus on 04.04.22 at 6:26 pm

#133 crowdedelevatorfartz on 04.04.22 at 12:51 pm
@#123 Philco

So you’re one of those rich oligarchs I’ve been reading about.
How big is your yacht?
————————
I remember when Oligarchs were called Moguls.
Than they named an Olympic Winter sport after them, because they always hung out in fancy Alpine ski resorts.
Together with the British Royals.
Yacht is a difficult word to pronounce for an Austrian country pumpkin.
Philly, I had a father in law, just like you.
Came from the old country.
Made a small fortune, buying and renovating crapy rental units in the 60’s and seventies.
Tenants were mostly pimps and prostitutes.
He took a gun with him when collecting rents.
At least that’s the story he told.
Then he got greedy and got into a shady deal with a shister lawyer.
Lost all his units. Started over at 60.
Should have invested in a B&D with the Turner gang.
Spent his last 5 years in a Government subsidized home.
Could not walk, or talk.
A life wasted.

#56 Concerned Citizen on 04.04.22 at 6:30 pm

I read today that Canada has issued 9 million 10-year VISAs. That’s 25% of the population. At what point do we no longer have a country?

We can build all the new supply we want, but if working families need to compete with investors (foreign and domestic) and money launderers, housing will never become affordable again.

People that work for a living are now the suckers in this country. The secret to a good life now in Canada is to buy property, and live off a HELOC while your property appreciates by a few hundred grand every year/month. Meanwhile the housing minister argues for protecting “Mom and Pop” investors (and therefore, median housing prices of 8 times income nationally), and the finance minister refuses to acknowledge a bubble even exists.

Canada is in a very dark place now, and unless we get some adult, fact-based leadership that actually cares about the problem soon, things are only going to get worse. There are rumours of actual measures in the budget, but with this virtue-signalling bubble-championing crew in charge, I have little hope.

If as a country we’re not going to give our citizens a reasonable chance at an affordable roof over their heads, then we better start investing in more homeless shelters.

#57 Dr V on 04.04.22 at 6:33 pm

16 Cash

There are also business owners who realize only a minor portion of their business income, so the true “1%” is a
much larger group.

(This math is approved by blogger Linda)

#58 Flanneur on 04.04.22 at 6:34 pm

Now I remember why I stopped reading the comments

#59 Doug t on 04.04.22 at 6:34 pm

I guess they feel MMT is the only way to keep the boat afloat

“Stop expanding “money” and credit and the global order of “growth” implodes.

Unfortunately for all those who benefited from soaring wealth and income inequality, the trick of expanding “money” and credit has reached systemic limits. The dam holding all the toxic debt, leverage and fraud is finally cracking.”

#60 Barb on 04.04.22 at 6:37 pm

Banksy Boo is so dignified looking…”yeah, I’m the best in the west” he appears to be saying.

#61 AR on 04.04.22 at 6:51 pm

Taking 6.5% annually seems optimistic?

Don’t you use 4% in your income projections?

So more like $2566.0 per month.

Why 4%? The assets should grow over decades as they did in the past. Or more. – Garth

#62 pPrasseur on 04.04.22 at 6:53 pm

But change isn’t coming. In Canada the fiscal moderates within the Liberal party have been purged, while the Cons scuttle behind pied piper Pierre Poilievre down a path to eternal opposition. Sigh.

Right! Like Charest would change anything, the guy couldn’t even show enough nerves to raise universities tuition fees to help retain quality.

Too late for change anyway, this country is screwed, big time, and there will be a crisis, likely sooner rather than later.

#63 Shawn on 04.04.22 at 6:58 pm

Who wants to be a millionaire?

Actually, that would be aiming vey low.

Inflation has made the word millionaire totally obsolete.
Today we talk about the 1% (By which we usually mean more like the 0.1%).

Or we talk about HNW high net worth people.

Few of us aspire to be merely a millionaire.

$10 million is the new 1 million.

#64 pPrasseur on 04.04.22 at 7:00 pm

DELETED

#65 Peter in Toronto on 04.04.22 at 7:13 pm

BANNED

#66 Reality is stark on 04.04.22 at 7:14 pm

At some point you’d think these imbeciles would address the deficit and get us into the black.
But that would require responsible management and hard decisions. It’s easier just to throw money at every problem that shows up.
They remind me of parents who throw money at their children rather than parent them. It doesn’t work and it never did and it never will.
When commodities and the housing market falter it’s back to a 60 cent buck.
It won’t be long when you realize that houses are not just expensive they will forever be out of reach because you can’t find a job.
Stagflation is painful.

#67 pPrasseur on 04.04.22 at 7:21 pm

Garth, maybe you didn’t get the memo but it’s allowed now to talk about Hunter Biden’s laptop (18 month after the election…) it’s no longer considerer Russian propaganda!

Not why you were deleted. – Garth

#68 Robert B on 04.04.22 at 7:30 pm

Garth
No one ever talks about the offshore accounts that have taken personal Canadian earned profits out side of the country.
They pay a minimum or no tax at all.

How about a blog post on that?

Point 2 ….this inflation is caused by lack of supply.
Supply chains have been disrupted causing less supply.

#69 Philco on 04.04.22 at 7:41 pm

#59 Doug t on 04.04.22 at 6:34 pm
I guess they feel MMT is the only way to keep the boat afloat
=======================
HAHA
Correct, the train has left station.

#70 Ponnaps on 04.04.22 at 7:41 pm

It’s the rule of the mob.. those in the 10% do not protest.. they put their head down, and live quietly among the masses feeding the mob..

#71 Concerned Citizen on 04.04.22 at 7:42 pm

#66 Reality is stark on 04.04.22 at 7:14 pm

Stagflation is painful.

*****

It’s especially painful when your central doesn’t lift a finger to deal with inflation.

Can you imagine central bankers in the 70s keeping rates at 0% and arguing they were fighting inflation and taking it seriously? The way things are going, real rates may hit negative double digits (-10% or more) by the time things get better.

This is a transparent and aggressive subsidy to asset holders from the poor and middle class. And the policymakers know it all too well, but apparently they just don’t care. It is a sad, blatant case of institutional failure.

#72 Quintilian on 04.04.22 at 7:51 pm

Seems to me a lot of mayhem caused by a system the curmudgeons don’t want to change.

Keep eating your young.

#73 Lefty on 04.04.22 at 7:53 pm

Here”s a chart comparing residential home prices relative to disposable income (up to 2021)Canada and U.S.

Truly astounding how Canadian prices have wildly exceeded the U.S. 2007 housing bubble peaks.

https://i.redd.it/ndyj2rj8rj881.jpg

#74 Damifino on 04.04.22 at 8:00 pm

#63 Shawn

$10 million is the new 1 million.
———————————-

Only if you take 1957 as a base year. If you instead take 1989 as a base year, then two million is the new one million.

#75 habitt on 04.04.22 at 8:01 pm

I do wonder how that bottom 32% is doing. lol

#76 david on 04.04.22 at 8:01 pm

I earn 180K a year.
I have no assigned Doctor here in Quebec. I saw only one in 2013 for my permanent residency health check; paid from my pocket.
Montreal is turning into a giant dump, infrastructures are in pitiful state.
I refuse to buy real estate because its leading the country into a wall and I don’t want to sink in that process.
I don’t mind paying taxes in general but health care/education/infrastructures are total money pits in Quebec and provide no good results.

I contacted my boss from NY a month ago to be transferred abroad. 11 years in Canada, it is enough.

#77 earthboundmisfit on 04.04.22 at 8:02 pm

I am a life-long supporter of the Progressive Conservatives, from Robert Stanfield (the best PM the country never had), a certain bearded wonder whose last name was Turner (MSU), up to and including Erin O’Toole. I cannot, and will not, exercise my franchise in favour of Pierre Polievere and his toxic brand of grievance politics with a serrated edge. Singh has committed political suicide, rendering the NDP irrelevant. Trudeau is a smarmy, prevaricating woke dunce. What’s a man to do?

#78 Jackoman on 04.04.22 at 8:10 pm

RRSP’s, RESP’s, RDSPs, TFSAs, LIRAs, LRIFs, LIFs etc. should all come with a guaranteed interest rate of 11% flat per annum. It will be a capped rate at 11% simple interest which is equivalent to 5% per annum compounded up to 30 years all guaranteed by CDIC and the federal, provincial governments with no high limits like CMHC. This way Canadians should have savings backed with real interest rates and Canadians having skin in the game instead of this taking from Peter to pay Paul.

#79 Stoph on 04.04.22 at 8:10 pm

Higher taxes work until they don’t, namely when people can have a better life by working less. Then the government has less income to tax, more money being spent on benefits, plus society loses the benefit of the goods and services that would have been generated by the lost work. It seems to me that Canada is flirting with this tax level already.

Canada will remain a good place to live and an even better place to live for those with money. Just not a great place to earn a large income.

#80 Philco on 04.04.22 at 8:23 pm

#68 Robert B on 04.04.22 at 7:30 pm
====================
simpler said there 2 classes of peeps. Ones that gots rules and ones that don’t. Most have to stay within the fence lines. Cartels and Oligarchs ect don’t…. Their stacks big enough to do anything go anywhere.
I’m not being a smart ass I’m exactly right.
Vegas was built buy gangster’s now its legit.
Just like hells angels now I know some.

#81 Philco on 04.04.22 at 8:24 pm

#52 Damifino on 04.04.22 at 6:03 pm
#35 IHCTD9

If you work for Trudeau, you either toe the line, or you kick the pebbles.
————————

And here I was thinking elected members worked for their constituents and represented them in the house in accordance with their collective input.

Silly me. That’s old school Garth Turner stuff.
=========================
No he Sh!t cans you if you don’t get aboard his clueless mindless spending adventure.

#82 Steven on 04.04.22 at 8:25 pm

US MONEY SUPPLY chart.

https://fred.stlouisfed.org/series/WALCL

see any dips?

We are so DOOMED and we are so useless to let this happen standing by to see people starve worldwide, and say NOTHING.

This makes what Putin is doing to be kid’s play. This is waaaaaaaaaaaaaaaaaaaaaay worse world wide.

Proud of yourself? Fellow slave to the FED.

#83 ASho on 04.04.22 at 8:28 pm

These numbers must be missing the reality of all those people in the trades or otherwise that under report their income for tax purposes and take cash. Especially as business is booming given all the house renovations and constructions…

Tax evasion is illegal. – Garth

#84 A Dollar is a Dollar is a Dollar on 04.04.22 at 8:30 pm

We have privileged the few and the rich for generations.

It’s time to level the playing field.

All assets, income and transactions should always have had equal levels of taxation, subject to basic exemption levels for everyone.

Now, we have to catch up. That will take a generation, but together we can do it.

#85 cuke and tomato picker on 04.04.22 at 8:36 pm

Number 77 earthboundmisfit “whats a man to do”
get organized and run in the next election you have three years to put your name in the hat. We can not wait to
listen to our excellent prime minister Justin Trudeau
debate pee air.

#86 Sail Away on 04.04.22 at 8:46 pm

#68 Robert B on 04.04.22 at 7:30 pm

Garth
No one ever talks about the offshore accounts that have taken personal Canadian earned profits out side of the country.
They pay a minimum or no tax at all.

How about a blog post on that?

———-

I take personal Canadian earned profits out of the country all the time to both offshore corporation and offshore bank/trust accounts.

What do you want to know?

#87 Shawn on 04.04.22 at 8:51 pm

$10 million is the new $1 million?

#74 Damifino on 04.04.22 at 8:00 pm
#63 Shawn

$10 million is the new 1 million.
———————————-

Only if you take 1957 as a base year. If you instead take 1989 as a base year, then two million is the new one million.

*******************************
Indeed so, I also got 1957 from the Canadian CPI index data.

Interestingly it means that people turning 65 this year (the old standard retirement age if you will) literally need $10 million to be in the same place as a millionaire was at the time of their birth.

On the other hand it was likely vastly easier for today’s 65 year old to amass $10 million as compared to someone born in 1892 amassing that one million dollars. Markets have easily outpaced all that inflation. 1957 was a vastly better time to be born than 1892. But 2022 is the best time so far in history to be born. If you see a baby this year, be very jealous of the life they will likely lead.

And you make a great point that most of the inflation since 1957 occurred by 1989.

#88 yvr_lurker on 04.04.22 at 8:58 pm

soon-to-be-free higher education
—–
??? Where is it free? My kid has just got into UAlberta, UVic, UCalgary for next year, and is waiting on UBC. No signs that anything is or will soon be free… Did I miss something important in the mail?…
——-

As I expected, this comment “soon to be free higher education” is an exaggeration that is not connected to reality thrown into the mix to further rile up the troops. Not based on anything. I looked for it for 30 minutes now in various sources and of course it is not (and should not be) in the cards..

#89 George S on 04.04.22 at 9:08 pm

I worked with a post doctorate from France for a few years. Post secondary education is “free” in France. The labs are run down with old out of date equipment. Nothing is maintained properly. People have to leave the country to get proper experience in working with the latest equipment.
We may end up getting an education that is as useful as we paid for. You can’t expect much for free. It really doesn’t matter much in the social sciences but it destroys you science education system.

I used to calculate various pension scenarios. What I noticed is that if you contribute 18% of your gross income into a RRSP and put it into low management fee investments you will end up with more or less the same pension payout as a DB pension plan.
The difference between a DB pension plan and a self directed pension plan is that you don’t know how long you are going to live so you have to have a self directed pension plan that allows for you to live to 100 years old. A DB pension plan involves a large group of people taking money from a pool of money (imaginary or not) so the DB pension plan only has to provide a pension payout up to the average lifespan of the members, about 85 years old. The difference is huge.

#90 Ponzius Pilatus on 04.04.22 at 9:09 pm

#141 Barb on 04.04.22 at 5:00 pm
#140 Old Boot

Excellent post.
———————
You people are so sick.

#91 crowdedelevatorfartz on 04.04.22 at 9:19 pm

@#58 Flanneur

“Now I remember why I stopped reading the comments”

+++

Alzheimer’s?

#92 DON on 04.04.22 at 9:29 pm

#42 Ed on 04.04.22 at 5:21 pm
So you suggest the tired old liberal Charest should lead a brave new party?

Its time for change,we need new younger blood not regurgitating platformless cadavers.

Newer is not always better and experience is priceless. Not defending him (or supporting him) but Charest is only 63. The leader of the free world is 79. – Garth

*************
I would like to see someone with age and experience. Someone who will give Canadians the truth of the matter not Spin or Deflection.

#93 crowdedelevatorfartz on 04.04.22 at 9:32 pm

@#78 Jacko

“RRSP’s, RESP’s, RDSPs, TFSAs, LIRAs, LRIFs, LIFs etc. should all come with a guaranteed interest rate of 11% flat per annum. ”

++++

There is something very close to that scenario in Canada.
Its called govt employee pension plans….
:)

#94 IHCTD9 on 04.04.22 at 9:36 pm

#39 Quintilian on 04.04.22 at 5:06 pm

I prefer MMT and although it will be administered by politicians, who are mostly corrupt, at least they can be voted out.
————

You can’t vote out the debt they ran up though Quint. When you’re talking Trillions of dollars, it becomes a birthright.

#95 crowdedelevatorfartz on 04.04.22 at 9:37 pm

@#72 Quintillion
“Keep eating your young.”
++++

Well.
If Trudeaus’ grotesque govt expenditures are any indication…..economic cannibalism is a “thing” that will continue to “eat the young” in taxes …..for generations to come.
:0

#96 millmech on 04.04.22 at 10:09 pm

#49
Just do not sell, buy for the dividend and hold for long term, just buy the dividend aristocrats, banks, utilities pipelines. Check out ZIM for craps and giggles.

#97 AM in MN on 04.04.22 at 10:15 pm

#62 pPrasseur on 04.04.22 at 6:53 pm
But change isn’t coming. In Canada the fiscal moderates within the Liberal party have been purged, while the Cons scuttle behind pied piper Pierre Poilievre down a path to eternal opposition. Sigh.

Right! Like Charest would change anything, the guy couldn’t even show enough nerves to raise universities tuition fees to help retain quality.

Too late for change anyway, this country is screwed, big time, and there will be a crisis, likely sooner rather than later.

————————————————————

It’s never too late for a change. There will be pain, hopefully enough that people will understand the ramifications of printed money and a trashing of the industrial economy, and bite the bullet and vote for the medicine that is needed.

I have more hope for Pierre Poilievre than I did for Harper (who I helped to take out Stockwell many moons ago), because he isn’t going to try to be loved by the money classes (Garth’s friends), he will stay an unloved outsider and hopefully administer the bitter medicine of money discipline. He is one of the few MPs today that speaks on the issue.

It isn’t hard, just fire the BoC bigwigs and start with a policy of sound money, 0% inflation targeting. The hard part is putting up with the moaning and whining that then follows.

Start cutting programs and agencies that do more harm than good, like CMHC, ag quotas, myriad subsidy programs and social justice programs and anything that should be handled by the Provinces.

Then let the private sector develop energy and mineral production and exports, hopefully fresh water exports, more value added food exports, etc…

You would be surprised how fast it could turn around. Canada is sitting on mountains of the things the world needs, and always will.

Be more worried that if the elite money class gets an even tighter grip on power, that the country turns more like any other resource rich, strongman ruled oligarchy.

Don’t be afraid of your freedom!

#98 Pragmatic conservative on 04.04.22 at 10:19 pm

Let’s hope conservative members will be pragmatic enough to choose Jean Charest rather than Pierre Poilievre…

Winning in Alberta with 90% instead of 70% of the votes is useless. They need to convince voters east of Manitoba to vote conservative. Not a chance with Poilievre.

A moderate Progressive-Conservative leader is the only way the CPC can likely win the next election.

Bâti pour gagner…

#99 A01 on 04.04.22 at 10:28 pm

what do you have against Pierre P.? He has a good chance to defeat JustinFlation.

Zero chance. – Garth

#100 Father's Daughter on 04.04.22 at 10:57 pm

Universal childcare makes sense to me, as at least those paying all the taxes get to benefit as well, unlike most social programs. Our family has two kids, gets no CCB (unlike some commenters here who are apparently rolling in it even though they never needed it), and daycare in our area is on average, if you can get a spot, $2000/month/kid. Of course the kids can’t go half the time, because they’re sick. You would have to earn $75K pre-tax just to pay a nanny salary. And then you’ll have to cover their vacation, sick days, etc. If you’re an average earner, going to work makes little sense. Either we want Canadians to have kids, or we just immigrate them all in. More and more people just aren’t bothering or can’t fathom the thought of a second kid in daycare for $25K/year. Providing high quality childcare for lower income earners has been shown to be protective for the kids, leads to better outcomes, and allows their parents to work too.
The cost of houses in Southern Ontario is insane.

#101 Damifino on 04.04.22 at 11:02 pm

#77 earthboundmisfit

I cannot, and will not, exercise my franchise in favour of Pierre Polievere and his toxic brand of grievance politics with a serrated edge
—————————–

No problem, earthbound. I’ll be happy to take your place. But, as I’ve already said, it will not make the slightest difference in my riding.

Still, I’ll do my civic duty and go to the polls. If it’s to vote for a party led by a man who hurls toxicity at the likes of T2 (hands down, the worst PM ever), it’ll make me feel somewhat better.

#102 KLNR on 04.04.22 at 11:29 pm

@#98 Pragmatic conservative on 04.04.22 at 10:19 pm
Let’s hope conservative members will be pragmatic enough to choose Jean Charest rather than Pierre Poilievre…

Winning in Alberta with 90% instead of 70% of the votes is useless. They need to convince voters east of Manitoba to vote conservative. Not a chance with Poilievre.

A moderate Progressive-Conservative leader is the only way the CPC can likely win the next election.

Bâti pour gagner…

pierre pollievre is just preaching to the choir.

absolute waist of time/energy/money choosing him as leader

#103 canuck on 04.04.22 at 11:30 pm

what do you have against Pierre P.? He has a good chance to defeat JustinFlation.

Zero chance. – Garth
_____________________________________________

You’re likely right. I doubt that you’d admit it but the PPC split enough votes across key areas which cost the CPC seats. That party needs to find a way to bring Max back to the table or the result next election will be the same.
I know Garth can’t stand Bernier but numbers don’t lie and he’s taken enough voters away from the CPC to make a difference in the election outcome.

I like how you suggest age and experience can make a difference by pointing out Biden. He’s no leader and is turning that country into a dump. In February, USA Today posted a story on how Biden’s approval rating were lower than Trump’s.

Bernier is unfit for office and incapable of winning his own seat, where people know him best. – Garth

#104 KLNR on 04.04.22 at 11:34 pm

@#76 david on 04.04.22 at 8:01 pm
I earn 180K a year.
I have no assigned Doctor here in Quebec. I saw only one in 2013 for my permanent residency health check; paid from my pocket.
Montreal is turning into a giant dump, infrastructures are in pitiful state.
I refuse to buy real estate because its leading the country into a wall and I don’t want to sink in that process.
I don’t mind paying taxes in general but health care/education/infrastructures are total money pits in Quebec and provide no good results.

I contacted my boss from NY a month ago to be transferred abroad. 11 years in Canada, it is enough.

Great! one less whiner.
Don’t let the door hit you on the way out.

#105 Borden Renter on 04.04.22 at 11:37 pm

#98 Pragmatic “conservative”

How much do the liberals pay you to shill for Charest? Is it by the post or did you score an hourly gig?

I don’t know where all of this Astro-turfed support for some old has-been has come from all of the sudden, but it’s oddly suspicious. On more than one forum as well.

Astute readers will know that Poillevre is from an Ottawa area riding, and that suburban/rural Ontario and Quebec are what got Harper elected. The Maritimes and urban Canada are a lost cause, full of the oversocialized and the pogey addicted.

Anyway, this heathen is coming back from the PPC to vote for Pierre. I don’t think he’ll fix much because the government service class is stuffed with liberals and red Tories who will fight tooth and nail every step of the way. I hope everyone here who voted for the ‘L’ and the dippers are enjoying this. You’re getting exactly what you deserve.

#106 T-Rev on 04.04.22 at 11:46 pm

I think I’m long past the point of complaining. The wise simply adjust the sails.

If I was 20 years younger, I’d grab a cute girl and an onlyfans account, take as much UBI and free education as I could get my hands on for as long as it lasted, and make “content” with my lady friend to pay for extras. Why strive for a job?? Focus on time at the gym, learning, and girls. Working seems to be for suckers.

Being too old for such a lifestyle, I’ll probably just go to work tomorrow. Sounds like a lot of folks are counting on me. Honest to god though it’s time to spend as much effort figuring out how to take advantage of government cheese as one does actually producing goods and services.

#107 Moses71 on 04.05.22 at 12:00 am

Thank you Garth. So by myself I am in the top 10% with no defined pension. Doing okay but the defined need a new definition. Going to heed your advice on the TFSA as I think it’s better than RRSP to give to my offspring. Still doing the work matched RRSP thing though. Hope they don’t gouge our earnings too much because this won’t amount to much revenue in the bigger scheme of things.

#108 Nonplused on 04.05.22 at 12:06 am

If only masks and social distancing slowed the spread of politics.

The “free” higher education probably bothers me the most, since it is targeted at a group that already has higher projected lifetime earnings than those who do not go on to “higher education”. So for me it is one thing if we all pitch in so we all get dental care, it is in a way just an extension of the private insurance system we have now, but quite another when taxi drivers have to pitch in to pay for liberal arts degrees.

But even dental care will be fraught with exemptions that still require private insurance. Braces? Most policies only cover 50% up to $2,000. You are on the hook for the rest. So the poor still won’t be getting them. What about gold implants? Well, healthcare doesn’t cover breast implants so why should dental care cover implants? You don’t really need all your teeth. So we are probably only talking cleanings, cavities, extractions, and maybe root canals.

But the free higher education? I can see the appeal from Trudeau’s viewpoint, outside of STEM most of those liberal arts students are voting Liberal or NDP anyway, so it is a kick back. He is buying us with our own money.

Sooner or later it will fall apart though. The 10% only has so much income to tax. And MMT = runaway inflation no matter what the economystics say.

Buy all the things. And maybe encourage your children to go into dentistry.

#109 crowdedelevatorfartz on 04.05.22 at 12:33 am

@#90 Ponzie Puked
“You people are so sick.”

+++
Yes.
Sometimes.
The truth is difficult to swallow…

#110 Ponzius Pilatus on 04.05.22 at 1:04 am

Newer is not always better and experience is priceless. Not defending him (or supporting him) but Charest is only 63. The leader of the free world is 79. – Garth
—————————
Hey,
Zelensky can’t be that old.
But if aliens would come on a spaceship and ask “Take us to your leader” they would be taken to his hide-out somewhere in the Ukraine.

#111 Dr V on 04.05.22 at 1:08 am

89 George S

“The difference between a DB pension plan and a self directed pension plan is that you don’t know how long you are going to live so you have to have a self directed pension plan that allows for you to live to 100 years old. A DB pension plan involves a large group of people taking money from a pool of money (imaginary or not) so the DB pension plan only has to provide a pension payout up to the average lifespan of the members, about 85 years old. The difference is huge.”
—————————————————-

Excellent points George. Plus the pensions have very low fees (or at least they should have). Downsides include the pension plan is taxed as income, and unless the plan holder has additional tax-advantaged savings, they may not be able to come up with larger sums if
required for whatever purpose without borrowing.

#112 Jane24 on 04.05.22 at 1:45 am

The problem with RRSPs and TFSAs is that once the govt runs out of money they will be looking for some. These two govt programs will be easy pickings as the govt will know what is in them and that you can afford to lose a bit! They may be tax friendly in 2022 but will that be the situation in 2032 I wonder.

#113 BigAl (Original) on 04.05.22 at 1:48 am

#81 Philco on 04.04.22 at 8:24 pm
#52 Damifino on 04.04.22 at 6:03 pm
#35 IHCTD9

If you work for Trudeau, you either toe the line, or you kick the pebbles.
————————

And here I was thinking elected members worked for their constituents and represented them in the house in accordance with their collective input.

Silly me. That’s old school Garth Turner stuff.
=========================
No he Sh!t cans you if you don’t get aboard his clueless mindless spending adventure.

==================================
It’s not a partisan thing. You have strong MPs/MPPs/MLAs who represent their constituencies well, and you have bad ones.

Jim Flaherty seemed to fight hard for Oshawa and Durham region’s interest. When he was an Ontario provincial MPP and finance minister he moved the HQ of his entire ministry to Oshawa. As a fed he got the 100Mil funding for the Rouge park and fought for a full airport in Pickering. And he seemed to take the interests of the people of Oshawa and Durham into account in even big-picture decisions.

While I sympathize heavily with what she’s been dealing with personally the last few years while out of office, Lisa Raitt for all her years as a Harper cabinet minister appears to have done zilch for her riding of Milton and just towed the government line all those years. She only had time for Milton at election time.

#114 Satori on 04.05.22 at 2:23 am

#56 Concerned Citizen on 04.04.22 at 6:30 pm
I read today that Canada has issued 9 million 10-year VISAs. That’s 25% of the population. At what point do we no longer have a country?
————————————–
Yup and Canadian Visas cost them literally zero ($100), unlike other countries who charge super big $$$$ for Visas… and they don’t pay taxes but use the roads and services that we all pay taxes for… imagine that?

#115 Satori on 04.05.22 at 2:26 am

#63 Shawn on 04.04.22 at 6:58 pm
10 million is the new million
————————————
True and so depressing…

#116 Satori on 04.05.22 at 2:37 am

#76 david on 04.04.22 at 8:01 pm
Congrats on getting re-located…you are one of the lucky few

#117 Realist on 04.05.22 at 3:35 am

Yep, the drug use epidemic is really a mental health epidemic- And the mental health epidemic is really the consequence of a one-sided class war happening between the rich/ruling class and the common folk- Which also happens to be the cause the housing crisis as well.

Remember that Adam Vaughan doesn’t care about Canadians being priced away from the real estate market.

It all seems to have something in common

#118 unbalanced on 04.05.22 at 4:55 am

OAS is free. Where does the money come to support it then?

#119 Summertime on 04.05.22 at 5:03 am

#87 Shawn on 04.04.22 at 8:51 pm

On the other hand it was likely vastly easier for today’s 65 year old to amass $10 million as compared to someone born in 1892 amassing that one million dollars. Markets have easily outpaced all that inflation. 1957 was a vastly better time to be born than 1892. But 2022 is the best time so far in history to be born. If you see a baby this year, be very jealous of the life they will likely lead.

—————————-

You are the very definition of delusional.
65 Years total inflation is far above 1000 %
Rule of thumb is prices double in 10 years. You are looking at around 5000-10000 % total inflation. So try with 50 millions-100 millions in today’s money.

The best years were the 70-es to 80-es, even 90-es.

#120 Summertime on 04.05.22 at 5:22 am

#104 KLNR on 04.04.22 at 11:34 pm

Great! one less whiner.
Don’t let the door hit you on the way out.
——–
And what exactly was wrong in
@#76 david on 04.04.22 at 8:01 pm’
statement?
———————
#76 David you waited far too long.

The good news for you is that you might experience very prolonged orgasmic schadenfreude by watching the circus from far away once you move out.

I still can not get over it, honestly. The very idea that a shack in the middle of nowhere, the likes of Hamilton where I won’t live even if you pay me, can cost more than a French castle or sea front Italian villa and maybe 5 times a house on the Greek’s islands and you have to pay all your life for it, if lucky it is not just outrageous but rather idiotic, considering the ‘lifestyle’/or the lack of such/ you get in return.

I won’t comment on the metal health of the locals as it is clearly an useless exercise.

Enjoy life my friend.

#121 Summertime on 04.05.22 at 7:30 am

Here is a good description for Shawn’s best time on earth:

https://www.naturalnews.com/2022-04-02-billionaire-blackrock-ceo-millennials-entitled-scarcity-inflation.html

Bloomberg) — BlackRock Inc. President Rob Kapito warned that inflation is having dramatic effects on the economy, with an entire generation now learning what it means to suffer from shortages.

“For the first time, this generation is going to go into a store and not be able to get what they want,” Kapito said at conference held in Austin by the Texas Independent Producers and Royalty Owners Association. “And we have a very entitled generation that has never had to sacrifice.”

The economy is reckoning with what he dubbed “scarcity inflation,” or the fallout from a shortage of workers, agricultural supplies and housing, and of oil in some regions.

“I would put on your seat belts because this is something that we haven’t seen,” Kapito said.

Note the view on inflation, that poor brain-frozen Shawn refuses to acknowledge.

#122 crowdedelevatorfartz on 04.05.22 at 8:08 am

@#102 KLNR
“pierre pollievre is just preaching to the choir.
absolute waist of time/energy/money choosing him as leader.”

+++

Trudeau wasn’t elected. He was the best of the worst.
Harpers’ arrogance got him “unelected” (booted).
Scheer and O’Toole. Nonstarters from the get go.

Trudeau will be booted when the voters tire of his arrogance OR the Canadian economy is in such dire straights it can’t be ignored.
It won’t matter who leads the PC’s if the voters are pissed.
Pollievre, who ever.
Trudeau will be unelected. The anti vote.

But the National debt will be so large, no one will be able to do a damn thing about it even if they truly wanted to …
Absolutely criminal what this current cabal of out of control spendthrifts have done to this country.

#123 Brian on 04.05.22 at 8:53 am

Elon Musk Appointed To Twitter Board Of Directors; Vows To Make “Significant Improvements To Twitter”

And now sit back and wait for the procession of resignations from Twitter’s woke snowflakes who can’t imagine life in a world where free speech is – gasp – allowed.

#124 G-man on 04.05.22 at 8:56 am

Hey Garth,

Do you have a source for the incomes broken down by percentile? I am having a hard time believing that 50% of Canadians make less than $38,000/year. Which implies 50% of Canadians earn $18/hr. or less. That seems preposterous to me.

As stated, these are percentiles. Not averages. – Garth

#125 Dharma Bum on 04.05.22 at 9:07 am

“Not defending him (or supporting him) but Charest is only 63.” – Garth
———————————————————————————————————

Man, even at 63, that dude Charest has a great head of hair!

He should be elected simply on the basis of that.

Wouldn’t be the first time.

https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Fwww.ctvnews.ca%2Fpolopoly_fs%2F1.4260078.1547852671!%2FhttpImage%2Fimage.jpg_gen%2Fderivatives%2Flandscape_1020%2Fimage.jpg&f=1&nofb=1

#126 Dharma Bum on 04.05.22 at 9:12 am

Thursday is budget day?

Hmmm.

I’m actually getting a colonoscopy on Thursday.

For real.

The GREAT PURGE – all around.

Coincidence?

I think not.

#127 Ponzius Pilatus on 04.05.22 at 9:25 am

#116 Satori on 04.05.22 at 2:37 am
#76 david on 04.04.22 at 8:01 pm
Congrats on getting re-located…you are one of the lucky few
——————-+
Let’s wait a little.
Experience has shown that whiners are gonna whine and haters gonna hate, no matter what.
At work, you gotta get rid of them, before they infest the whole staff.

#128 KLNR on 04.05.22 at 9:26 am

@#122 crowdedelevatorfartz on 04.05.22 at 8:08 am
@#102 KLNR
“pierre pollievre is just preaching to the choir.
absolute waist of time/energy/money choosing him as leader.”

+++

Trudeau wasn’t elected. He was the best of the worst.
Harpers’ arrogance got him “unelected” (booted).
Scheer and O’Toole. Nonstarters from the get go.

Trudeau will be booted when the voters tire of his arrogance OR the Canadian economy is in such dire straights it can’t be ignored.
It won’t matter who leads the PC’s if the voters are pissed.
Pollievre, who ever.
Trudeau will be unelected. The anti vote.

But the National debt will be so large, no one will be able to do a damn thing about it even if they truly wanted to …
Absolutely criminal what this current cabal of out of control spendthrifts have done to this country.

Canadian’s only vote leaders out not in certainly rings true. I fear a personality like PP won’t hold power very long should he get it.

#129 KLNR on 04.05.22 at 9:29 am

@#120 Summertime on 04.05.22 at 5:22 am
#104 KLNR on 04.04.22 at 11:34 pm

Great! one less whiner.
Don’t let the door hit you on the way out.
——–
And what exactly was wrong in
@#76 david on 04.04.22 at 8:01 pm’
statement?
———————
#76 David you waited far too long.

The good news for you is that you might experience very prolonged orgasmic schadenfreude by watching the circus from far away once you move out.

I still can not get over it, honestly. The very idea that a shack in the middle of nowhere, the likes of Hamilton where I won’t live even if you pay me, can cost more than a French castle or sea front Italian villa and maybe 5 times a house on the Greek’s islands and you have to pay all your life for it, if lucky it is not just outrageous but rather idiotic, considering the ‘lifestyle’/or the lack of such/ you get in return.

I won’t comment on the metal health of the locals as it is clearly an useless exercise.

Enjoy life my friend.

such salty tears. you poor buggers, so hard done by in this country. always looking to blame somebody else.
just leave already.

#130 Brian on 04.05.22 at 9:31 am

#126 Dharma Bum on 04.05.22 at 9:12 am
Thursday is budget day?

Hmmm.

I’m actually getting a colonoscopy on Thursday.

For real.

The GREAT PURGE – all around.

Coincidence?

I think not.

LMAO!

#131 Sail Away on 04.05.22 at 9:40 am

#117 Realist on 04.05.22 at 3:35 am

Yep, the drug use epidemic is really a mental health epidemic- And the mental health epidemic is really the consequence of a one-sided class war happening between the rich/ruling class and the common folk- Which also happens to be the cause the housing crisis as well.

———-

Or maybe it’s just bad decisions. But that would point to personal responsibility and a whole host of other uncomfortable stuff.

#132 Ponzius Pilatus on 04.05.22 at 9:41 am

#126 Dharma Bum on 04.05.22 at 9:12 am
Thursday is budget day?

Hmmm.

I’m actually getting a colonoscopy on Thursday.

For real.

The GREAT PURGE – all around.
————-
Too much information.
Go, announce it on Twitter where the people care about such things.

#133 The West on 04.05.22 at 9:46 am

The top 1% of income in Canada in 2022 = $258,034
The top 2% of income in Canada in 2022 = $190,119
The top 5% of income in Canada in 2022 = $132,493
The top 10% of income in Canada in 2022 = $102,869
The top 50% of income in Canada in 2022 = $37,695

This is shocking data

#134 Thisisagoodname on 04.05.22 at 9:46 am

I’m specialer :)

Also, adorable doggo!

#135 The West on 04.05.22 at 9:49 am

@ #9 Millenial 1%er

Just got back from Austin. Go check our Round Rock. You won’t come back.

Better get their soon though, the Technocrats are fleeing their sinking ship from the west coast in droves.

#136 Bezengy on 04.05.22 at 10:15 am

#122 crowdedelevatorfartz on 04.05.22 at 8:08 am
@#102 KLNR

But the National debt will be so large, no one will be able to do a damn thing about it even if they truly wanted to …

—————-

I would love to hear from fellow bloggers on what exactly they would do to balance the budget. What spending would they cut? How would they raise revenue? Can it actually be done? Like maybe just send 10 million folks a bill for $50k and hit the rewind button to when we first elected Justin, you know just add it to this year’s income tax owed and maybe charge a nominal interest on the unpaid balance till paid in full, or something like that.

#137 RichardTO on 04.05.22 at 10:19 am

DELETED

#138 Quintilian on 04.05.22 at 10:54 am

#122 crowdedelevatorfartz on 04.05.22 at 8:08 am
“Absolutely criminal what this current cabal of out of control spendthrifts have done to this country.”

Crowdie, it is not a good idea to be drinking this early (at 8:08 am)

It distorts your perception and impairs analytical thinking.

Canada’s debt to GDP (approx. 75%), ratio reflects responsible government given the pandemic.
GDP growth is projected just slightly below 5% for 2022.

These are basic macro measurements compiled and backed by statistics and not a unsubstantiated hyperbole by some blathering nabob.

#139 Ponzius Pilatus on 04.05.22 at 11:04 am

#122
3 more years, 3 more years.
Has a nice ring to it.
In the meantime, you “can be the change you want”.
Become active in the party of your choice.
Actively support your chosen candidate.
Or, gasp, become a candidate.
Dream the Canadian dream.

#140 Ponzius Pilatus on 04.05.22 at 11:12 am

38 Quintilian on 04.05.22 at 10:54 am
#122 crowdedelevatorfartz on 04.05.22 at 8:08 am
“Absolutely criminal what this current cabal of out of control spendthrifts have done to this country.”

Crowdie, it is not a good idea to be drinking this early (at 8:08 am)

It distorts your perception and impairs analytical thinking.

Canada’s debt to GDP (approx. 75%), ratio reflects responsible government given the pandemic.
GDP growth is projected just slightly below 5% for 2022.

These are basic macro measurements compiled and backed by statistics and not a unsubstantiated hyperbole by some blathering nabob..
———————————-
I don’t think that CEF is a habitual drinker.
But that also means, there is no excuse for his bitter, off base posts.

#141 Shawn on 04.05.22 at 11:16 am

Inflation since 1957?

#119 Summertime on 04.05.22 at 5:03 am responded to me :

#87 Shawn on 04.04.22 at 8:51 pm

You are the very definition of delusional.
65 Years total inflation is far above 1000 %
Rule of thumb is prices double in 10 years. You are looking at around 5000-10000 % total inflation. So try with 50 millions-100 millions in today’s money.

**************************
Well at least I can do math and know that $1 million going to $10 million is a gain of 900% and not 1000%

Also I simply used official all-items Canadian CPI while you used a rule of thumb that you got from some unknown source. (By-the-way, where has your thumb been?)

You can find the data at this wonderful web page, click the right graph / link and look for the data table part at the bottom and enter any date range desired.

https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2018016-eng.htm

Summertime, not likely interested in facts but others might be. This is truly an great web page. Try it.

#142 Linda on 04.05.22 at 11:25 am

#118 ‘un’ – OAS is funded out of general government revenues, aka your tax dollars. So in this case I’d say ‘free’ means OAS isn’t funded by a payroll deduction like CPP is. Taxpayers via government still pay for it, but the only recipients are those who live past age 65.

#89 ‘George’ – despite decades of health care & improved knowledge regarding how to remain healthy most people still don’t live to age 100. Last I looked, Canada had just achieved slightly over 10,000 centenarians – out of a population exceeding 38 million. Less than 1% of Canadians live past age 90. So when planning for the future, probably best to look at your family longevity or lack thereof. Also, public pension plans do make adjustments based on actuarial recommendations. The plan I belong to adjusted its contribution rates upwards as a result of longer life expectancies. Can’t imagine other plans wouldn’t do the same.

#143 crowdedelevatorfartz on 04.05.22 at 11:25 am

@3138 A quintillian dollars deeper in debt.

“Canada’s debt to GDP (approx. 75%), ratio reflects responsible government given the pandemic.
GDP growth is projected just slightly below 5% for 2022.”

+++
Okay.
Here’s another stat.
Trudeau has increased the national debt from 550 billion to 1.2 trillion in his time in office.
More than ALL the OTHER PM’s since 1867 combined.

And Thursday appears to be another $150 billion deeper in the hole with “free this and free that”.
Nothing is ‘free”.
Enjoy paying taxes forever on the debt.

p.s. No booze since last Oct ( lost 16 lbs) and I don’t touch drugs….
What’s your excuse?

#144 Sail Away on 04.05.22 at 11:26 am

#136 Bezengy on 04.05.22 at 10:15 am

I would love to hear from fellow bloggers on what exactly they would do to balance the budget. What spending would they cut? How would they raise revenue? Can it actually be done?

——–

Of course it can be done. But…

Federal budget balancing is not my, or anybody here’s, job.

My job is to profitably run a couple of companies and keep the escape routes clear. If we slipped into deficit, immediate actions would be taken. I have all the info needed to make decisions.

If balancing the federal budget was my job, I’d have all the info to be able to make informed decisions about that. Otherwise it’s just yelling down a well.

#145 Shawn on 04.05.22 at 11:34 am

Money Supply and Money Printing

#151 pPrasseur on 04.01.22 at 2:05 pm
So, if you don’t like central banks printing money and you don’t like commercial banks creating money through lending, then the money supply would not grow.

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

Of course money creation by the banking system is a good thing when kept in check in an authentic free market, where lenders carefully evaluate the risk and solvency of the borrowers. This is what a free market does, it creates a natural balance between demand and offer. In other words money creation is ok when credit expansion correlates with productivity growth.

********************************
This was a good response to me from a few days ago.

A key point to my mind is that the supply of money and its creation comes mainly from lenders being willing to lend. When lenders perceive little risk of repayment they lend bountifully and money supply increases.

When lenders fear defaults lending can dry up quickly and that removes the grease that drives economic expansion. Let us be careful what we wish for. Unless we are retired and have already made our pile.

#146 dragonfly58 on 04.05.22 at 11:38 am

Sail Away, I would agree about the bad decision making and lack of personal responsibility is you are talking about people who first start using addictive drugs at at least the age of mid twenties or older, are not suffering from a mental condition, and are not people who have suffered abuse at the hands of others prior to the addictive drug use or are not of significant sub normal intelligence.
These people clearly are exercising both extremely bad decision making and a distinct lack of personal responsibility.

#147 crowdedelevatorfartz on 04.05.22 at 11:42 am

@#140
Ponzie’s puckered puss.

“But that also means, there is no excuse for his bitter, off base posts.”
+++

You invented “bitter” posts.

#148 dragonfly58 on 04.05.22 at 11:54 am

In addition to being first an automotive mechanic and later most of my working years a Transportation Industry Tech, I was for two years a High School, Automotive Teacher, at a very gritty East Vancouver High School. The back story of many of the kids who were on a path to disaster was both tragic and shocking to someone like me who grew up in a pretty normal, suburban , middle class family.
Similarly ,my wife who was a RN for almost all of her working life was a Mental Health and Addictions case worker for nearly 10 years. Once again the back story of many of the clients were straight out of a horror movie.
Is it any real surprise some of these people end up as hard core drug users ?
Not making excuses, but the lives some people live before the drug use are almost unimaginable to most people.

#149 Shawn on 04.05.22 at 12:26 pm

CPD and ZPR WTH (What The … Heck)

I thought those two were heavily in rate resets. I was just checking and expected to see they did well the last few months. Nope.

What up?

Outside of ETFs I would favor the discounted rate resets that have room for capital gain.

Maybe there is no pure rate reset ETF?

These rate resets have mostly not been a good investment since inception except when occasionally on fire sale.

#150 NewInvestor on 04.05.22 at 12:40 pm

When investing in ETFs in a non-registered account, does a capital gains distribution (i.e. not triggered by selling, no reinvestment) affect ACB? I think the answer is no, but looking for clarification.

#151 Dr V on 04.05.22 at 12:47 pm

For those posters (West, G-man) who cannot believe the apparently low income of the 50 percentile, please consider the following factors.

This data is almost certainly calculated from tax returns, and, as such, will include seniors, students and part-time workers.

My two sons work grocery full-time and just meet the 50%. Typical of the retail sector.

Also note comments from others regarding un-reported
income via cash, or under-reported income via undeclared tips for low-wage service workers.

And my comment regarding business owners and professionals who operate through a corporation and only take a modest (could still be six-figures) wage and leave the rest in the corp, or sprinkle it amongst family members via stipend wages and dividends. Very effective compared to making a $250k wage and paying
$90k tax.

#152 Brian on 04.05.22 at 12:51 pm

Should we send the NDP and Liberal MP’s to Florida?

https://www.cnbc.com/2022/03/23/florida-becomes-largest-state-to-mandate-personal-finance-education-.html

#153 IHCTD9 on 04.05.22 at 12:55 pm

#140 Ponzius Pilatus on 04.05.22 at 11:12 am
38 Quintilian on 04.05.22 at 10:54 am
#122 crowdedelevatorfartz on 04.05.22 at 8:08 am
“Absolutely criminal what this current cabal of out of control spendthrifts have done to this country.”

Crowdie, it is not a good idea to be drinking this early (at 8:08 am)

It distorts your perception and impairs analytical thinking.

Canada’s debt to GDP (approx. 75%), ratio reflects responsible government given the pandemic.
GDP growth is projected just slightly below 5% for 2022.

These are basic macro measurements compiled and backed by statistics and not a unsubstantiated hyperbole by some blathering nabob..
———————————-
I don’t think that CEF is a habitual drinker.
But that also means, there is no excuse for his bitter, off base posts.
___

Drinking is not an excuse Ponzie, and if it is, I’m glad to hear it.

#154 Philco on 04.05.22 at 1:05 pm

I personally think were ate throw in the towel part. Just have a laugh and a bevy. Nothing you can do about the policies they have inactected that are producing uninteded consequences.
In this country full of pretty honest peeps shit tons of resourses we should hold areselves to a higher standard and demand better more honest and knoledgable people in office rather than opperating like a banana Republic.
There is likley a mushroom cloud ahead with all the experiments going on with monitary policy.
All you can do is get your own house in order for the unexpected.
We just drove East Hasting…a sad site indeed.
On our way to a dimsum feast….the night before the Vancouver club for my cousins wedding and prolly $500 a plate all on his dime.
What do we do? I pay a abosolte shit ton taxes and it seems like anyone in power gives a rats ass? Theres pleanty of money printed by you know who. We have never paid more taxes and here we are….
If you cant see the problem and the solution as I do….then there no hope in changing the direction.
Me personally Im fed up with the management.
Im voting with my wallet by buy a place in another country and diversify from the Banana republic trying to save the world whilewe cant even manage our own shit.
It this or a revilolution.
Sorry about grmmar or spelling im in my hot tub no glasses.
You get the point. Rise above stop talking about the little crap go after the big stuff the little will take care of itself.

#155 Shawn on 04.05.22 at 1:06 pm

Capital Distribution and Tax Complexity

#150 NewInvestor on 04.05.22 at 12:40 pm

When investing in ETFs in a non-registered account, does a capital gains distribution (i.e. not triggered by selling, no reinvestment) affect ACB? I think the answer is no, but looking for clarification.

*********************************
Yes. It affects the Adjusted Cost Basis.

Must be a lot of people not reporting and tracking such things properly?

#156 unbalanced on 04.05.22 at 1:15 pm

#142. Thanks Linda. I knew it was funded out of tax dollars. Garth still says it’s free. If it’s free why am I and everyone who worked and paid into it. Seems to me it’s only free when you quit working and hope you don’t get clawed back.

You contribute nothing to OAS. It’s funded by the black hole of government indebtedness. It’s free. Old folks pogey. – Garth

#157 Sail Away on 04.05.22 at 1:25 pm

#150 NewInvestor on 04.05.22 at 12:40 pm

When investing in ETFs in a non-registered account, does a capital gains distribution (i.e. not triggered by selling, no reinvestment) affect ACB? I think the answer is no, but looking for clarification.

——–

The answer is not ‘no’. However, unless dealing with very large amounts, probably fairly insignificant.

As explained:

https://www.td.com/ca/en/asset-management/documents/investor/pdf/news-insight/return_of_capital_salestool_en.pdf#:~:text=Capital%20gains%20taxes%20may%20be%20payable%20when%20the,base%20of%20the%20units%20to%20which%20it%20relates.

#158 NewInvestor on 04.05.22 at 1:38 pm

#157 Sail Away on 04.05.22 at 1:25 pm
#150 NewInvestor on 04.05.22 at 12:40 pm

When investing in ETFs in a non-registered account, does a capital gains distribution (i.e. not triggered by selling, no reinvestment) affect ACB? I think the answer is no, but looking for clarification.

——–

The answer is not ‘no’. However, unless dealing with very large amounts, probably fairly insignificant.

As explained:

https://www.td.com/ca/en/asset-management/documents/investor/pdf/news-insight/return_of_capital_salestool_en.pdf#:~:text=Capital%20gains%20taxes%20may%20be%20payable%20when%20the,base%20of%20the%20units%20to%20which%20it%20relates.

—————————————–

Thanks for your reply. I had already read that link you referred to in my search for an answer before I posted my question here, however I don’t see where one can come to a “not no” (i.e. yes) conclusion from reading it.

Obviously the ROC portion of a distribution affects ACB, but not seeing how the capital gains portion does. What have I missed?

#159 NewInvestor on 04.05.22 at 1:40 pm

Further to #157,

The capital gains distribution I am referring to was NOT reinvested but was part of the year end distribution for XIC. Why would it affect ACB?

#160 Philco on 04.05.22 at 1:41 pm

Just back reading posts.

If you didnt even know about T2s conflicts of interests.
Just look at his I wont call an election. And in the pandemic he does and waist a pile of money to do so trying for a power grab ending up with a minority still. So with declining attitudes towards him he gangs up with a clueless socialist to ensure he stays in power.
Whos the fool. Him or us?

#161 This country is importing on 04.05.22 at 1:43 pm

Only Deltas and Epsilons, if u catch my drift.

Just look at Toronto on the sidewalks, trams, subways… Looool

Aldous Huxley

#162 Ponzius Pilatus on 04.05.22 at 1:45 pm

#148 Dragonfly.
Thank you for your true and enlightening post.
I never have met a kid who wanted to become a drug/alcohol addict.
Sailo and CEF.
Any response.

#163 Phylis on 04.05.22 at 1:46 pm

#136 Bezengy on 04.05.22 at 10:15 am
I would love to hear from fellow bloggers on what exactly they would do to balance the budget. What spending would they cut? How would they raise revenue? Can it actually be done?
Xxxxxxx
First we need the data. I’d like to see a ticker display banner mandated for continuous realtime display of all the gov payments displayed on the cbc broadcasts. If bloomberg can do it for stocks, why can our government channel do this? Or maybe just the debt clock.

#164 Barb on 04.05.22 at 1:48 pm

Nobody ever talks about how the number of Federal employees has increased.

Google search: “How many employees work for the Canadian federal government?

Total Federal Public Service Population
In March 2021, there were 319,601 employees in the Federal Public Service. From March 2017 to March 2021, the Federal Public Service employed an average of 288,860 people.”

30,741 new Feds…that’s 7,685 new Feds on average each year. All of whom required “wokeness” training, desks, computers, sick days off, vacations, pension benefits…

#165 Sail Away on 04.05.22 at 1:50 pm

#148 dragonfly58 on 04.05.22 at 11:54 am

Re: Personal problems

——–

I occasionally will attempt to cure a problem dog owned by family or a friend.

Unless it’s retarded or an incorrigibly dangerous criminal, the problems will almost always arise from past treatment of the animal. Usually this treatment is overly lax boundaries, but sometimes with rescue dogs can be other things. Dogs that have had to survive on their own will often kill such ‘foodlike’ pets as cats and rodents, and this isn’t criminal behaviour, just survival instinct.

A firm hand, strict boundaries, plenty of patience and consistency cure 99% of problem dogs.

However, not all are curable and a small percentage are better culled to avoid endless drama, stress, injury and inconvenience to others.

#166 Brian on 04.05.22 at 1:53 pm

Canada’s Debt Clock

https://www.debtclock.ca/

#167 Quintilian on 04.05.22 at 1:55 pm

#145 Shawn on 04.05.22 at 11:34 am
“When lenders fear defaults lending can dry up quickly and that removes the grease that drives economic expansion.”

100% correct.

Tick Tock, Tick Tock

Astute politicians and their deputy ministers know this basic fact ,and therefore; why would they want to be blamed for the contraction in the economy, when the built in brakes will do the job.

#168 Sail Away on 04.05.22 at 1:57 pm

#159 NewInvestor on 04.05.22 at 1:40 pm
Further to #157,

The capital gains distribution I am referring to was NOT reinvested but was part of the year end distribution for XIC. Why would it affect ACB?

——–

Whoops, my mistake. If not reinvested, it will not affect ACB.

#169 Squire on 04.05.22 at 2:00 pm

#99 A01 on 04.04.22 at 10:28 pm
what do you have against Pierre P.? He has a good chance to defeat JustinFlation.

Zero chance. – Garth
————————-
After the whole O’Toole thingy we need to retool.
Charest is our only chance to defeat Mr. T. As much as some folks would want to believe P.P. can do it, he won’t. Let’s learn from the prior mistake and choose someone that know what they’re doing.
We are heading into a socialist paradise if we don’t wake up.

#170 Shawn on 04.05.22 at 2:08 pm

Capital gains and adjusted cost base

#158 NewInvestor on 04.05.22 at 1:38 pm
#157 Sail Away on 04.05.22 at 1:25 pm
#150 NewInvestor on 04.05.22 at 12:40 pm

When investing in ETFs in a non-registered account, does a capital gains distribution (i.e. not triggered by selling, no reinvestment) affect ACB? I think the answer is no, but looking for clarification.

Obviously the ROC portion of a distribution affects ACB, but not seeing how the capital gains portion does. What have I missed?

*********************************
My apologies, when I said yes I had return of capital in mind. You are right a capital gains distribution does not impact adjusted cost base, you pay tax on the capital gain distribution as you go.

#171 Outrage on 04.05.22 at 2:10 pm

Sold some of my etf and reits in my tfsa for the coming bloodbath. Sell in May and go away, remember. May buy back if WWW 3 doesn’t happen. Its funny let’s all sanction Russia for the greater good even if we all go broke and starve.

Timing markets for events you only conjure up almost never works out well. Stay invested. – Garth

#172 NewInvestor on 04.05.22 at 2:11 pm

#157

I misunderstood, the year end distribution was in fact not actually a payout. Darn! So I guess it does require an adjustment to cost base.

#173 Ponzius Pilatus on 04.05.22 at 2:12 pm

#160 Philco on 04.05.22 at 1:41 pm
Just back reading posts.

If you didnt even know about T2s conflicts of interests.
Just look at his I wont call an election. And in the pandemic he does and waist a pile of money to do so trying for a power grab ending up with a minority still. So with declining attitudes towards him he gangs up with a clueless socialist to ensure he stays in power.
Whos the fool. Him or us?
————————-
Clueless Socialist?
I think he’s doing a fine job for the people who elected him.
Isn’t that what a politician is supposed to do.
Who’s the fool?
The people who live in the past.

#174 Shawn on 04.05.22 at 2:12 pm

Olf Folks Pogey

#156 unbalanced on 04.05.22 at 1:15 pm
#142. Thanks Linda. I knew it was funded out of tax dollars. Garth still says it’s free. If it’s free why am I and everyone who worked and paid into it. Seems to me it’s only free when you quit working and hope you don’t get clawed back.

You contribute nothing to OAS. It’s funded by the black hole of government indebtedness. It’s free. Old folks pogey. – Garth

******************************
Interesting perspective.

It’s certainly free for those who paid little or no tax.

Those who paid high tax rates all their life would disagree that OAS is paid by borrowed money.

If it is borrowed money, I guess today’s toddlers will get the bill.

I’d love(or maybe hate) to see Garth call this old folks pogey in a room crowded with recipients. A lot of seniors are oh-so-entitled and would go ballistic.

Makes for a scary mental picture.

#175 Dr V on 04.05.22 at 2:16 pm

Sailo, Shawn, newinvestor

Return of capital vs distribution. Hmmm. Gotta think about that.

Isnt an ROC just your money, and returned tax free? if it is taken out, all the gain remains, but now on a lower invested amount, meaning a lower cost base and a higher proportionate gain on a subsequent sale.

Now a distribution (without re-investment) could be a dividend and/or a sale within the fund with a portion being a cap gain – a taxable event. My immediate reaction is the latter would change ACB proportionately to the remaining unrealized gain.

Does that make any sense or have I got it all wrong??

#176 Linda on 04.05.22 at 2:23 pm

Garth, are you saying that OAS is paid via 100% borrowed funds by the government? That the taxes paid by Canadians to fund government services are not used to pay old folks pogey? If so then I’m surprised our deficit isn’t much higher.

Who knows what hole it comes out of? But no taxpayer contributes directly to it, in stark contrast to the CPP. – Garth

#177 RichardTO on 04.05.22 at 2:28 pm

Why did my comment linking to official US channels get censored? Are we now denying reality mode?

Did you not hear the news? You will always be deleted. – Garth

#178 Philco on 04.05.22 at 3:01 pm

#164 Ponzius Pilatus on 04.05.22 at 2:12 pm
===========================
You would never run my biz Ponzo.
You go MMT we will see how that works out.
Yup a Pony for all. Just wait.

We can shut off your natgas and other necessities and we will see how you roll then??
Another armchair quarter back here.

#179 Philco on 04.05.22 at 3:05 pm

Ponzo
Weren’t you the guy that said Arizona had oceanfront?

#180 NewInvestor on 04.05.22 at 3:10 pm

#175 Dr V on 04.05.22 at 2:16 pm
Sailo, Shawn, newinvestor

Return of capital vs distribution. Hmmm. Gotta think about that.

Isnt an ROC just your money, and returned tax free? if it is taken out, all the gain remains, but now on a lower invested amount, meaning a lower cost base and a higher proportionate gain on a subsequent sale.

Now a distribution (without re-investment) could be a dividend and/or a sale within the fund with a portion being a cap gain – a taxable event. My immediate reaction is the latter would change ACB proportionately to the remaining unrealized gain.

Does that make any sense or have I got it all wrong??

———————

Sigh, all I know for sure right now is that it is much easier to invest within a registered account.

#181 Philco on 04.05.22 at 3:13 pm

Ponzo….
Jags plan was to take the wealth from people that know how to create it and give it to folks that are clueless how to make it or manage it. Their the ones that create the bulk of jobs. Good team you have.
You my friend are hilarious.

#182 Philco on 04.05.22 at 3:30 pm

Ponzo
I’m just reading over some debt stuff.
Like Garth said “Mr T has created more debt than all priors combined”
That fact that MANY Canadian’s are up to NECK in mortgage debt just proves that most are clueless and could even give a hoot what national debt means just like Mr. T.
And he ain’t letting up. Wait till rates and steaks are way higher. Monkey see monkey do.
And I’m clueless? Lol
BTW I bought a side of local free range beef $5 cut and wrapped….YUM.

#183 Philco on 04.05.22 at 3:31 pm

Look at that puppy fly.
https://www.debtclock.ca

#184 Bob Loblaw on 04.05.22 at 5:48 pm

It seems like the government is willing to try everything except a capital gains tax for real estate. It should be obvious by now that a big part of the appeal of real estate is that it isn’t taxed while every other way of making money is.

#185 Maddy Kelly on 04.05.22 at 8:16 pm

Interesting…

#186 Cici on 04.05.22 at 9:02 pm

#1 Prince Polo

Hahaha. That was classic. Thanks for the laugh ;-)

#187 Jason on 04.06.22 at 9:36 am

Just these two interesting points from south of the border.

Surging interest rates push mortgage demand down more than 40% from a year ago

https://www.cnbc.com/2022/04/06/surging-interest-rates-push-mortgage-demand-down-more-than-40percent-from-a-year-ago.html

States put unemployment insurance on chopping block

https://www.cnbc.com/2022/04/06/states-put-unemployment-insurance-on-chopping-block.html