Home free

Elect me again, Trudeau said seven months ago, and I’ll make houses more affordable.

Didn’t happen, of course. The average property in Toronto cost $1.07 million during the last week of the campaign. Now it’s $1.3 million. So, if you didn’t make an extra $300,000 since the fall, you lose.

Does this budget hold out any hope for fixing that? Does it make things worse by goosing demand? Do we need to wait for the grind higher in mortgage rates to bring hope to the 90% of house-lusty kiddos who have given up looking?

Here’s the news, plus a few comments:

  • Foreigners are banned from buying houses for two years. Ironically, we’re getting ready to welcome tens of thousands (maybe hundreds) of displaced Ukrainians.
  • The hybrid TFSA-RRSP tax shelter has been given a green light. This will allow people to sock away up to $40,000 for a deposit, to write this off income (like an RRSP), grow it tax-free with withdraw it without attribution (like a TFSA) so long as the funds are used as a real estate downpayment. No mention in the budget of this being restricted to those under age 40.
  • Don’ get too excited, though. The TFFHSA won’t exist until next year at the earliest, and all the banks need to get on board first.
  • The newbie, house-buying tax credit it doubled. Essentially, it’s money to pay for closing costs. Ten grand credit.
  • Nothing about making investors pony up higher downpayments or banning the use of HELOC money. So 100% financing continues unabated.
  • A flip tax is coming. If you sell less than a year after buying (without a good personal reason) any profit is taxed as business income. No capital gains treatment.
  • Condo assignments are whacked. Effective next month they’ll be subject to GST/HST – which is a big deal since nine of ten recent buyers have no intention of closing, and many can’t. This could rattle the urban market more than anything else.
  • No word on the election promise to hike CMHC’s borrowing ceiling by a quarter to $1.25 million. Good. That would have allowed those with the lowest down payment to snorfle down a lot more debt.
  • Billions to build houses through an accelerator fund and municipalities. But increasing supply is a long process, and is an eternal budget promise and already Canada is churning out more homes than at any time in 50 years.
  • CMHC insurance premiums – paid by those buying with less than 20% down – are not being reduced, as was promised. The shared-equity mortgage that allows buyers to split their debt with the federal government, is being enhanced. Take-up on that so far has been abysmal.
  • And we’ll get a Homebuyers Bill of Rights at some point in the future and only after the feds can work it out with the provinces (since they regulate real estate). This might end up in a ban on blind bidding, the legal right of buyers to demand a home inspection and transparency of past pricing.

The bottom line: families with money and adult children will love the new homebuyer tax shelter. Bank of Mom cash can be handed over to junior, invested, claimed as a tax deduction, grown free of taxation then used to buy an asset with no capital gains tax. What’s not to like?

Over time, this will create more demand, as will the enhanced tax credit, a multi-generational tax credit and the sweetening of the RRSP home buyer’s plan already put in place by the Trudeau Libs.

The big surprise is applying HST to assignments. In the next 30 days there could be a blizzard of sales. Buying a condo? Just wait.

In short, will this budget makes houses cheaper? Of course not. The marquis stuff – the tax-free account, construction money, ban on auctions – is in the future. The assignment tax is not. The flip tax will be here in a few months. The tax credits will be immediate.

What about the national finances?

The spending is less than anticipated – another $30 billion over five years. A disgraceful deficit of $113 billion this year is scheduled to fall to under $10 billion by 2026. No change in capital gains tax inclusion rate. No new uber tax bracket. Just a $6.1-billion spanking of the banks – almost enough to pay for the new weapons and plans the Forces will get. Dentacare will be rolled out over a few years, but if you make over $90,000 you can fix your own cavities.

Oh, and lower-income people will get a one-time payment of $500, to help them afford housing.

Ottawa’s not out of touch. No, wait. Really.

163 comments ↓

#1 Søren Angst on 04.07.22 at 4:58 pm

Apr 7, 4:10 PM UTC-4 TSE

BNS -0.57%
CM -0.80%
BMO -1.62%
RY -1.15%
TD -1.85%

my maple
-0.97%

…meanwhile Dow, S&P 500, Nasdaq all +

Nice job Chrysta (a.k.a., Bank and Maple Impaler).

—————————–

Same time. Different channel.

yeah oil
ETF/ETNs +0.37% to +1.63%

#2 crowdedelevatorfartz on 04.07.22 at 5:01 pm

Is Trudeau allowed to give his non finance Finance Minister a hug?
Isn’t that gender specific sexist paternalism?
I think we should file a Human Rights complaint with Ottawa.

#3 The Younggreek on 04.07.22 at 5:05 pm

I’ve noticed preferred shares(ZPR) are getting spanked lately. Assuming most preferred shares in Canada are rate reset and ZPR is a laddered product, shouldn’t it be going up with interest rates? Buying opportunity?

#4 Chaddywack on 04.07.22 at 5:05 pm

There has to be some consequence to just printing money and gorging on debt non-stop isn’t there?

Inflation? Funny enough inflation screws low income people the most….isn’t that the main LDP demographic.

Also interesting that no 40 year old limit to the homebuyers saving plan was mentioned in the budget.

I’m just glad there was no change to the capital gains rate or the top tax bracket. Will be interesting to see what happens to bank stocks tomorrow though…..

#5 Smartalox on 04.07.22 at 5:06 pm

The ‘Flip’ tax period should be 5 years, on a declining scale:

– If sold after less than 1 year, 100% of profits are subject to tax as income (unless there’s a good reason, like relocation for work, marriage, divorce, death, etc)
– if sold in the second year, 75% of profits are taxable
– If sold in the third year, 50%
– In the fourth, 25%
– In the fifth year after purchase, 0% of profits taxable.

After 5 years, maintenance costs will probably offset any profits anyway.

GST/HST on assignment flipping is a great idea – long overdue in my opinion. As in I read that and thought “Wait. Isn’t that already happening?”

If it isn’t it’s well past time. Maybe assignment flippers can claim GST input credits?

#6 Jerry Oberhoff on 04.07.22 at 5:07 pm

Maybe the greatest budget of all time? Excellent money coming for Canadians!

#7 Chimingin on 04.07.22 at 5:07 pm

No health transfers were included, which means no new funding for mental health and long-term care, as was promised to the tune of $25B. This is a kick in the teeth for those who suffered the most in the pandemic.

#8 Donmac55 on 04.07.22 at 5:08 pm

Don’t forget the tax break up to $50,000 for building a secondary suite… a possible savings of up to $7,500

#9 Søren Angst on 04.07.22 at 5:08 pm

Cdn Banks Impaled and why I hold none of their stock [well, not directly…why my Maple ETF was impaled]:

+1.5% corporate income tax rate increase

a once in a lifetime deal, 15% surtax on income above $1 billion for the 2021 tax year

————-

yeah oil (April +30% dividend declared, near 40%)

poor maple

poor us Paleos, no inflation has happened to us…just the young.

#10 alexinvestor on 04.07.22 at 5:13 pm

It’s better than I expected. No new taxes that really matter.

#11 housing on 04.07.22 at 5:14 pm

Since 2008, we have been told about housing corrections. Has it happened? Several happened most recently in 2017 and 2020 (Condos). Did house prices increase after the brief correction? 100% of the time. Crash and Corrections happened several times – 2008, 2012, 2017, 2020 but house prices went up everytime.

Buy a house if you can afford it. Dont wait as the prices will be a lot higher. If you can afford it buy it. That is also Garth’s advice.

#12 cramar on 04.07.22 at 5:15 pm

Sounds like for those who are already home owners, and well-off financially, it could have been worse.

#13 dave on 04.07.22 at 5:15 pm

Nothing but high interest rates will stop the real estate to the MOON prices…..nothing.

Govt personal pockets are filled with cash and prizes hidden from view – dont stop the real estate train

#14 ogdoad on 04.07.22 at 5:17 pm

Its all blah blah blah….sorry. The lemmings will keep buying as long as they see an expectation of growth…if there’s a lull or dip other lemmings will step in place.

You and I will keep talking about stupid housing and how great we are b/c we had the forethought to buy a house when we were younger and how the youth today have no chance and how much harder we had it and why we were so smart b/c we ‘invested’ in housing and why today’s memes are coming to life and why today’s youth are walking, duped zombies and why we are not walking, duped zombies and why today’s youth suffer from obesity, depression and loneliness and why we are so happy b/c we found ‘contentment’…

Or something like that…

Now, where were we? Oh yes, snuggles. I want to invest in a ‘hug’ etf. One that pays me in ‘hottie’ dividends. Every quarter I get to snuggle (oh, some know) with a hottie – to all you lard asses out there, sorry.

Let’s make it happen, peeps!

Og

#15 an investor on 04.07.22 at 5:19 pm

Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?

I feel badly for young people in this country. They have no future and their lives will be hard.

#16 Brett in Calgary on 04.07.22 at 5:19 pm

Looks like it’s up to the central bankers (as we knew would be the case) not JT. However, as the rate-resets are showing, there is not a lot of faith in central bank hikes, either. High inflation without an appetite to deal with it, that’s where we are.

#17 Yukon Elvis on 04.07.22 at 5:23 pm

So my biggest loser is TD. Down 1.85% from 99 to 96. Sure glad i bought it during the last dip at 60 when it was paying 5.5% div. Burp. zzzzzz.

#18 Søren Angst on 04.07.22 at 5:27 pm

Basically, some minor Monetary pumping of the economy by Gov Canada and most of it years away.

Canada at the mercy of the CB’s and their rate increases.

Either very high inflation or recession.

I have no faith that the CBs can tippy toe their way in between the 2.

It will be one or the other.

#19 Honest Realtor on 04.07.22 at 5:33 pm

This is a balanced and productive start to policies that will enhance the most important single component of Canada’s economy.

Remember, the influx of newcomers to Canada over the next decade and more will be an enormous benefit to our economy. We should also welcome with open arms 1,000,000 Ukrainians to our land.

#20 Linda on 04.07.22 at 5:37 pm

A one time payment of $500 to low income folks so they can afford housing? Well, better than nothing I guess. Might be enough to allow those folks to continue to pay the rent for another month!

As per one headline it appears the government might actually use some of the revenues from new taxes to reduce the size of Canada’s deficit. If so hallelujah!

#21 crowdedelevatorfartz on 04.07.22 at 5:38 pm

@#15 investor
“Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?”

+++
Yes.
A company created and registered in Canada …is a legal entity.
5k is about enough to have a “Canadian” company buy Canadian real estate.

The cost of doing business.

#22 Doug t on 04.07.22 at 5:44 pm

Overture, curtains, lights,
This is it, the night of nights
No more rehearsing and nursing a part
We know every part by heart
Overture, curtains, lights
This is it, you’ll hit the heights
And oh what heights we’ll hit
On with the show this is it

#23 ElGatoNeroYVR on 04.07.22 at 5:44 pm

And this my fellow readers is why the liberals keep being elected.
They talk a though game but when it comes to doing something they stick to pragmatic and doing the minimum they can get away with ,without upsetting the status quo.
On the global stage it seems the rest of the world finally caught on so Mr. trudeau may kiss that future UN position good bye ,though given how corrupt and elitist that organzization is … who knows.
Fact is that unless the conservative party becomes focused on winning the elections and being as pragmatic as the liberals are we will not see much change.
Clearly no UBI or minimum guaranteed income, no real upping of the defence budget other hten buying the planes and repalcong the run down NORAD, no new cap gains taxes … not a bad thing really.
The market forces will take care of things. Now let’s go back to making real money ,as inflation will eat most of the real net profits.

#24 Nick on 04.07.22 at 5:45 pm

.
And the RE party continues in lower Brainland.

Nothing can bring it down except 6% interest rate on variable mortgages. Never happening. So, upa up.

#25 Niagara Transplant on 04.07.22 at 5:45 pm

The thing that frustrates me is that Singh and Trudeau say they are whacking the banks and the lemons sing their praises but whom they are really hurting is the middle class. The middle class owns significant amounts of banks stocks, either individually or etfs or in pensions plans. The only ones the NDP and Liberals are hurting is you the middle class and people with pensions. MPs I hope you are proud of yourselves you just made retirement harder and poorer for many.

#26 Timmy on 04.07.22 at 5:48 pm

Canada has the fewest homes per capita of any G7 country, yet we have the highest rate of immigration. Can Trudeau add?

#27 Dave on 04.07.22 at 5:50 pm

Putin could drop a nuclear bomb in the middle of Canada.

Everything would tank and losses would be epic but real estate would still rise.

#28 tbone on 04.07.22 at 5:56 pm

I wonder if bank fees will be going up ? lol .

#29 B from Q on 04.07.22 at 6:00 pm

So, pandemic is over?

#30 dave on 04.07.22 at 6:02 pm

Real Estate cycling going forward from today:
– Interest rise….real estate slowly declines
– Canada goes into recession
– Central banks increase rates

The rates will go up and down…..if your expecting a major correction then your might as go buy in Ukraine. Otherwise after a little tinkering of prices….up and up real estate goes.

#31 Bezengy on 04.07.22 at 6:04 pm

Making Property Flippers Pay Their Fair Share, Taxing Assignment Sales, Protecting Canadians From Money Laundering in the Mortgage Lending Sector. Sounds like progress to me.

As far as the numbers thrown around, I don’t believe any of them. Fool me once, shame on you, fool me twice, shame on me.

#32 neo on 04.07.22 at 6:12 pm

Garth,

Yes it is $40,000 BUT

– it goes into effect next year
– the cap is $8,000 a year

So by 2028 you’ll have that $40,000 down-payment. In other words….useless..

#33 AK on 04.07.22 at 6:13 pm

” No change in capital gains tax inclusion rate. No new uber tax bracket.”

That’s a relief. Hopefully, The Conservatives can find a real leader soon, before Canada turns Into a Venezuela.

#34 T Rex and the dinosaur clique on 04.07.22 at 6:17 pm

Check out the billions being given out to the green energy billionaires.

Folks who least need the money, including some of the richest people in the world, are getting billions in borrowed Canadian money, to be repaid with interest by the millenials and their children through income taxes.

Oh it’s ok though. Canadians get $500 to help them pay for a house.

Almost enough for a pre closing home inspection in Toronto

#35 Jean called it the budgie on 04.07.22 at 6:20 pm

So there is four billion for municipalities to cut the red tape in approving new builds. How does this work? Is this money used for the payoffs to local people instead of the builder having to pay it themselves? Don’t get how this helps with housing.
Filled up my car at Candace Bergen’s gas station, 50 litres cost $8,700. Pollievre washed my windshield, took me 2 bottles of windex and 4 rolls of paper towel to get the grease, oil, smarm and BS off of it.
Saddest thing is none of these fools in Ottawa have a clue and the ones trying for leadership are no better.

#36 Big Bucks on 04.07.22 at 6:22 pm

$500 for low income people to pay rent that will likely go up 4%(minimum Jan 2023)which will probably be well over $1000 a year.Who is this helping again?

#37 IHCTD9 on 04.07.22 at 6:23 pm

Another hands sitting do-nothing budget from Trudeau.

What a joke.

Sorry kids, my house just went up in price. Better luck next year.

#38 T-Man on 04.07.22 at 6:24 pm

Picture at top : Hope for peoplekind everywhere, and Schwabites may rejoice at the sight of their chosen ones. The Young Leaders of Tomorrow, celebrating the fact that by 2030, YOU’LL OWN NOTHING, AND BE HAPPY. Not THEM personally, but you and yours. Enjoy.

#39 T-Rev on 04.07.22 at 6:25 pm

As rates rise intervention will be needed to soften the landing. I predict 40yr amortizations will return within 5 years.

#40 baloney Sandwitch on 04.07.22 at 6:26 pm

A nothing burger budget. Red ink as far as the eye can see. I am sure some land mines are buried in the fine print.

#41 T-Man on 04.07.22 at 6:31 pm

#33 – AK : It doesn’t matter who Canaduh is governed by, they all answer to the same masters. It’s a small club, and we’re not in it.

#42 IHCTD9 on 04.07.22 at 6:32 pm

Looking at the bullet points, there is more goosing of RE than tempering. Sorry Cap’n downa, but the house prices, they a still a go upa Upa UPA!!! under Trudeau.

Yeah, I’m not surprised. I’d love to see this ******-up country grab a brain for the sake of our youth, but it clearly ain’t gonna happen as long as we have Trudeau at the helm.

#43 Kilt on 04.07.22 at 6:38 pm

The banks should just split into regional (~provincial) banks. Split up their asset management, trading and insurance groups. Make it so their income is in the 100-200 million a year. That would give them another 20 years of growth before they hit the 1 billion mark and thus avoid the new tax.

Kilt.

#44 pPrasseur on 04.07.22 at 6:38 pm

More money and resources to build homes, as if there isn’t already way too much capital going to RE…

This is beyond stupid.

Journalists from Radio-Canada described this budget as “pro productivity/pro growth” because to them propping up RE is being pro growth.

As I said, beyond stupid…

This country is done, you better believe it!

#45 PK on 04.07.22 at 6:48 pm

What does MSU mean in a blog context?

Yes, not the budget that everyone excepted. This government wants to go after the conservative votes by saying its starting to be ” fiscally responsible”. Not much will change. Only high interest rates and a recession would help. I oversee various contractors and these days you almost have to beg to get a service done on time. It feels like no one has to compete for your business anymore. Endless free money, continuous government bailouts and low interest rates are to blame!

#46 Sam on 04.07.22 at 6:48 pm

So essentially house prices will keep rising. There you have it folks. Buy a house.

#47 Catalyst on 04.07.22 at 6:51 pm

$10Bn for Housing (over 5 years)
$10Bn for Truth and reconciliation

The Gov’t is just not serious about the scale of the housing problem, likely because they all own property including the housing minister who has investment properties in Ottawa.

A new saving scheme that is so tax advantaged that you’d be stupid to put your savings toward anything else is just what we need to keep this gravy train going. Next stop $2 Mill!

#48 Mechanic on 04.07.22 at 7:01 pm

Well Garth will the commencement of the flipper tax starting January 1st 2023 bring the flippers to market now at reduced prices trying to avoid the run for the exits when interest rates normalize later this year?

#49 crowdedelevatorfartz on 04.07.22 at 7:02 pm

@#27 dave
“Putin could drop a nuclear bomb in the middle of Canada.”

+++
Kenora doesn’t deserve that fate.
And no one would notice a difference if Sudbury got nuked.

#50 crowdedelevatorfartz on 04.07.22 at 7:03 pm

@#26 Timmy
“Can Trudeau add?”

+++
After a 5 year, $500 billion dollar increase in our debt….you STILL have to ask that?

#51 X on 04.07.22 at 7:05 pm

I interpreted this lack of action, as the gov’t acknowledging that they know that higher rates are coming and is going to let the air out of this gas bag of a RE market.

#52 Chameleon on 04.07.22 at 7:05 pm

That photo is truly disturbing.

#53 None on 04.07.22 at 7:06 pm

I’ve flip flopped on that silly home buyer TFSA thingy.

Depends on how a first time homebuyer is defined. If it’s defined as ‘someone who hasn’t owned a home in the last 10 year’ and there is not age restriction… then I’ll all for it because then I’d be eligible.

Effectively getting about $2500 for free each year will at least cover a months rent.

#54 Blobby on 04.07.22 at 7:09 pm

Reading lots of forum posts from people earning next to nothing – who somehow think the 400k + income tax will apply to them?

Bit confused. There’s a LOT to be annoyed about here, but for most people, that aint one of them.

#55 Ponnaps on 04.07.22 at 7:10 pm

By foreigners does that mean non-citizens ie includes PR holders who are not yet citizens?

#56 Reality Check on 04.07.22 at 7:12 pm

Oh, and lower-income people will get a one-time payment of $500, to help them afford housing.
——————-

Seriously? What slap in the face to lower/mid income Canadians that have no chance of buying in pretty much any urban market. Aren’t these the people that vote Liberal/NDP?

But thousand in subsidies to high income earners and the HELOCed parented that can afford to buy.

#57 pPrasseur on 04.07.22 at 7:13 pm

The spending is less than anticipated

Yeah but they still have to discuss health care transfers and we are currently nowhere near our commitments to NATO.

Plus of course we assume no recession…

#58 DON on 04.07.22 at 7:13 pm

#30 dave on 04.07.22 at 6:02 pm
Real Estate cycling going forward from today:
– Interest rise….real estate slowly declines
– Canada goes into recession
– Central banks increase rates

The rates will go up and down…..if your expecting a major correction then your might as go buy in Ukraine. Otherwise after a little tinkering of prices….up and up real estate goes

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

So what do you think happens after rates rise and during the recession (which doesn’t loom like a short blip)? What about the potential job losses?

In that period of time life/shit happens that some folk will never recover from fully. Financial stress has a domino effect. Given what we know to date the happy path looks more like hopism considering the new multi polar World order and shifting playing field we are experiencing.

As populations revolt against high inflation worldwide. Can someone find the Can so we can kick it down the road again?

#59 THE DANDADA on 04.07.22 at 7:13 pm

The more things change…..

The more they stay the same.

#60 Inflation on 04.07.22 at 7:14 pm

They did not do anything drastic in the budget for housing because they know the interest rates will take care of it for them, when the BOC raises .50 next week a lot of supply will suddenly start to hit the market and then it’s game on. Good luck on the annual 10-20% increases for house prices in the future, the game has changed and housing’s run is over.

#61 Preferred Shares on 04.07.22 at 7:16 pm

#3 The Younggreek on 04.07.22 at 5:05 pm

I’ve noticed preferred shares(ZPR) are getting spanked lately. Assuming most preferred shares in Canada are rate reset and ZPR is a laddered product, shouldn’t it be going up with interest rates? Buying opportunity?

____________________________________________________

Big time spanking. And they will continue to. Not sure where you thought you would come ahead on owning prefs. ZPR contains lots of securities that are taking a beating of late … banks, life cos,. Preferred shares do not shield you from these types of downturns. Your dividends will hopefully offset your capital losses in part, but no guarantee.

I suggest you do a deep (unbiased) dive into Prefs. Personally, I wouldn’t touch them with a 10 foot pole, despite what others may have told you. You also should understand what caused their big price runup in 2021… which is now taking a hit.

#62 Realty Check on 04.07.22 at 7:21 pm

T-bone

I wonder if bank fees will be going up ? lol
——————————-

As my father told me decades ago – Canadian banks do not lose money, they just raise fees.

The Canadian banks have been a killer investment for the last 40+ years.

And when you own the banks you don’t feel so bad about paying the fees.

#63 yvr_lurker on 04.07.22 at 7:24 pm

” No change in capital gains tax inclusion rate. No new uber tax bracket.”
——–
So many right-wingers were moaning that the capital gains tax inclusion rate would be increased. Nope. The liberals do not want to piss off the elite in their base who would be most affected. I was perfectly expecting that they would increase instead the marginal rate for high income earners (how about 56 or 58% for BC). No again, and this is a minor relief. It seems as though they are taking a more moderate tone in inflating the budget. Is Garth surprised at how “moderate” the budget is? Did he expect a bigger calamity?

#64 Ponzius Pilatus on 04.07.22 at 7:26 pm

#110 Sail Away on 04.07.22 at 2:00 pm
#104 Ponzius Pilatus on 04.07.22 at 11:59 am
#100 Sail Away on 04.07.22 at 11:06 am
#95 Ponzius Pilatus on 04.07.22 at 9:00 am

Re: Freeland

Thanks for doing the research.
This will hopefully shut some posters up.
But I doubt it.
Confirmation bias is powerful.

——–

I, for one, am perfectly content to judge entirely on job performance as finance minister.

——–

And on what metrics are you judging her performance?
I hope not the ones dictated by your conformation bias.

——–

Instantly stopping the deficit bleed.

If she can’t do that, I have no further use for any woke-ist garbage.
——————-
Fair enough.
But be specific.
Cutting programs and/ or increasing taxes?
I think sur-taxing the double dipping dual citizens would be a nice touch.

#65 Waystar Royco Shareholder on 04.07.22 at 7:30 pm

None of the meaningful changes that were mentioned in this blog to tame the housing price increases made it into the budget! (Banning HELOCs for DP, larger DP for investors, HELOC amortization, cap gains tax on sale of PR)

What gives? This budget is an overhyped nothingburger.

#66 Grandv!ew on 04.07.22 at 7:48 pm

We are playing with fire…..

Below are abhorrent and wrong ways to think about, say about and to treat the country one is living in. However presently there are too many of them and now they are forming the swarm that can be easily exploited by nefarious people and powers. What is happening with today’s youth….?

Yes it is Australia and thankfully not us but I am worried where are we going with all of this…..

“Why would I stay and fight for a country where I can’t even afford to buy a house?”

That was a common sentiment from readers to a story last week about a poll that found most young people would flee rather than stay and fight if Australia was in the same situation as Ukraine.

The poll generated fierce debate, with more than 1400 reader comments.

“Young people can’t afford a home to live here, it should be land owners’ primary responsibility to put up the fight,” one reader said.

https://www.news.com.au/finance/economy/australian-economy/why-would-i-young-people-locked-out-of-housing-market-wouldnt-fight-for-australia/news-story/da1681ba63bb0219b9354911c397be0f

#67 Flop… on 04.07.22 at 7:49 pm

Early days of the Ryan Lewenza puts one of his Porsche’s up as collateral on my Masters bet to get a new car.

Our boy Cameron Smith is currently in second place after a solid start.

Garth, make sure he keeps the betting ticket somewhere safe, like the vault in Lunenberg.

I said I’d like to buy a car from this century, but then I realized I was getting greedy as I’ve never even owned a car made in the 90’s.

Yet.

Swing Low, Sweet Chariot…

M47BC

#68 Sail Away on 04.07.22 at 7:49 pm

It’s nice that nobody is trying to wring more money from the Sail Away conglomerate. This I can work with.

And the band plays on…

#69 JEFF13 on 04.07.22 at 7:50 pm

Nothing really impactful, but a few measures might have an impact on the mindset of investors. This being said, the real impact will come from the interest rates decision of the US Fed (and by extension the BoC who has no choice but to follow).
Good article this morning in the Financial Post on the Ponzi HELOC scheme.
https://financialpost.com/real-estate/mortgages/faster-rate-hikes-cooling-home-prices-squeeze-heloc-holders

#70 Barb on 04.07.22 at 7:51 pm

#10 alexinvestor

It’s better than I expected. No new taxes that really matter.

——————————-
Agree.
Glad we all kept our heads down.
No blood … yet.

#71 DON on 04.07.22 at 7:55 pm

MSU = Mandatory Suck Up

#72 yvr_lurker on 04.07.22 at 8:04 pm

“Young people can’t afford a home to live here, it should be land owners’ primary responsibility to put up the fight,” one reader said.

https://www.news.com.au/finance/economy/australian-economy/why-would-i-young-people-locked-out-of-housing-market-wouldnt-fight-for-australia/news-story/da1681ba63bb0219b9354911c397be0f
——-

There is for sure some grains of truth in this. It is perfectly clear that housing inaffordability in many countries has lead to the sentiment that “we are not all in it together”. This, together with the down side of globalism, has rather major implications for populism and social unrest in many western countries.

#73 Ponzius Pilatus on 04.07.22 at 8:07 pm

#65 Waystar Royco Shareholder on 04.07.22 at 7:30 pm
None of the meaningful changes that were mentioned in this blog to tame the housing price increases made it into the budget! (Banning HELOCs for DP, larger DP for investors, HELOC amortization, cap gains tax on sale of PR)

What gives? This budget is an overhyped nothingburger.
————–
Most of the time they are.
Obviously, the Coalition Government is not made of reckless Marxists.
Just a little left of centre.
This is Canada, after all.
Boring, maybe.
But sometimes, that’s good.

#74 Flop… on 04.07.22 at 8:16 pm

“Oh, and lower-income people will get a one-time payment of $500, to help them afford housing.”- Thor Turner.

The Metrosexual Messiah can take his 500 bucks an shove it up his DELETED.

A guy I know said if the government is giving you free money, take it.

Alright, fair enough, I’ll take the 500 bucks and put it in a REIT.

Didn’t know Public Storage has the 4th largest REIT by market cap.

Still room to grow.

Everyone I know has got too much crap in their house…

M47BC

—————————————————————-

The World’s Largest Real Estate Investment Trusts (REITs)

https://www.visualcapitalist.com/the-worlds-largest-real-estate-investment-trusts-reits/

#75 Youger on 04.07.22 at 8:25 pm

Once again, inflation is a Liberal’s, NDP best friend. Since 2005, the CDIC is still $100,000. The way things are going, it will need to be $200,000 to $250,000 CDIC limit in the next few years just to be worth the same $100,000 CDIC limit.

This is why I have alot of GICs, RRSP, TFSAs with Ontario credit unions and other credit unions that have $250,000 to unlimited 100% covered provincial deposit insurance limits.

#76 Ballingsford on 04.07.22 at 8:30 pm

Tax-Free First Home Savings Account $8000/yr, $40,000 after 5 yrs if you can do it. That’s about 5% down on a $800,000 home.

I thought instead of creating a new fed dept to administer it, why not just let the first $40,000 withdrawal from RRSP be tax free.

But, maybe it’s more complicated such as contributions aren’t based on earned income. So, the millenial in the basement parents could give jr $8000/yr for 5 years to get jr out of the house.

But then, what bank is going to lend basement millenial the money for the rest of the mortgage unless jr makes about $100,000/yr and has been employed for about 5 years.

Jr then goes for an around the world trip with the $40,000 and then comes home and moves back into the basement.

#77 Carmeline on 04.07.22 at 8:33 pm

Currently $43 billion in interest payments per year is what the Liberal, Trudeau, Freeland, Morneau, NDP Singh debt binge is costing Canadians. This will easily be $60 billion a year in interest payments in soon coming years. I would not be surprised Canadians will be hit with $100 billion in just interest payments on the Canada, national debt by 2025 and thereafter. The National, Canada debt will be $1.5 trillion in coming years, maybe $2 trillion the way they don’t care about future generations of Canadians and the huge debt load they are leaving us all.

#78 T Rex and the dinosaur clique on 04.07.22 at 8:35 pm

Re: #66- Grandview:

House prices are for the most part self regulating.

They are controlled by interest rates, which are supposed to be set by independent central banks.

The higher the interest rate, the lower the median house price.

The only thing that messes up this system is when “woke” governments diddle with central bank monetary policy…..like what is happening right now in Australia and in Canada…..

#79 heloguy on 04.07.22 at 8:42 pm

“Kenora doesn’t deserve that fate.
And no one would notice a difference if Sudbury got nuked.”

30 years ago, I was riding my motorcycle across the country and saw the moonscape that was the slag from the smelter on my way through Sudbury. I stopped for gas and during the conversation with the mullet coiffed gas jockey I asked if there was any problems from the slag. Without skipping a beat, he said with a straight face that his sister has a tail.

#80 Canaduh! on 04.07.22 at 8:43 pm

#15 an investor on 04.07.22 at 5:19 pm

Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?

I feel badly for young people in this country. They have no future and their lives will be hard.

___________________

I hear RE prices in Ukraine are becoming quite affordable. Nobody said life was easy … and that everyone should own a house. It is what it is … a decade from now things may be better, or they may be worse. Nobody knows … and as a boomer I never knew either. But I never lost faith and built towards my future. Very little was handed to me and not did I expect it to be.

#81 Satori on 04.07.22 at 8:46 pm

#2 crowdedelevatorfartz on 04.07.22 at 5:01 pm
Is Trudeau allowed to give his non finance Finance Minister a hug?
Isn’t that gender specific sexist paternalism?
I think we should file a Human Rights complaint with Ottawa.
—————————————————-
Totally, like What?? Who does THAT at work? and even closes their eyes doing it?

First impression – Freeland: Daddy, so thankful for this job, I’ll do anything you say! Pretend I see nothing.

#82 Barb on 04.07.22 at 8:47 pm

I’d have preferred a photo of a wood tick today.
Because its real damage is always later on.

Oh wait…

#83 Mr Canada on 04.07.22 at 8:52 pm

Condo Assignments are currently subject to HST unless you can prove you intended to live in it. Now, everyone pays. Unintended Consequences where in the GTA, 60% of condo sales are by investors. This will impact construction and employment. Also, the Feds need to be careful hammering the Banks and Insurance Companies, many now have a larger presence in the US (TD, RBC, Manulife) what is to stop them to quietly relocate to the US ? Famed Royal Dutch Shell left the Netherlands for the UK.

#84 neptunian on 04.07.22 at 8:55 pm

interesting budget, what does Mr. Signh get then?

#85 Satori on 04.07.22 at 8:55 pm

#15 an investor on 04.07.22 at 5:19 pm
Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?
————————————————————
Yes, and until the registry from every province is legislated to make these ‘companies’ reveal who is the share holders (which I suspect is mostly individual persons) – all those companies can continue to purchase real estate as ‘Canadian’ companies. So no one knows how many foreign buyers there is in Canada.

This is just a biscuit to shut up the masses, in my opinion.

#86 crowdedelevatorfartz on 04.07.22 at 9:01 pm

@#74 Flop
” I’ll take the 500 bucks and put it in a REIT.”
++++
A Reit?
I prefer “political proctological payment” since I know that taxation payed for the $500 bribe

#87 When Will They Raise Rates? on 04.07.22 at 9:04 pm

#66 Grandv!ew on 04.07.22 at 7:48 pm

We are playing with fire…..

Below are abhorrent and wrong ways to think about, say about and to treat the country one is living in. However presently there are too many of them and now they are forming the swarm that can be easily exploited by nefarious people and powers. What is happening with today’s youth….?

Yes it is Australia and thankfully not us but I am worried where are we going with all of this…..

“Why would I stay and fight for a country where I can’t even afford to buy a house?”

That was a common sentiment from readers to a story last week about a poll that found most young people would flee rather than stay and fight if Australia was in the same situation as Ukraine.

The poll generated fierce debate, with more than 1400 reader comments.

“Young people can’t afford a home to live here, it should be land owners’ primary responsibility to put up the fight,” one reader said.

https://www.news.com.au/finance/economy/australian-economy/why-would-i-young-people-locked-out-of-housing-market-wouldnt-fight-for-australia/news-story/da1681ba63bb0219b9354911c397be0f

——————-

Very interesting.

If Canada were to be invaded, there is a significant portion of the population still imprisoned in their own country that might very well view the invaders as liberators!

Would I die in a fight that Justin Trudeau picked in order to protect the citizens of this country who have deemed me and 7 million others as second class citizens? Not a chance the way things stand now. Would I die for a country that won’t let me leave to visit my ailing parents? Eff Trudeau.

Self above all! The proud anti-vax credo. – Garth

#88 crowdedelevatorfartz on 04.07.22 at 9:04 pm

@#81 satori

“First impression – Freeland: ”

+++
Yep.
My impression was of the Cover of a cheap romance novel titled ” Budget 2022: Gone with the Wind”

#89 Satori on 04.07.22 at 9:12 pm

Instantly stopping the deficit bleed.

If she can’t do that, I have no further use for any woke-ist garbage.
——————-
#64 Ponzius Pilatus on 04.07.22 at 7:26 pm
Fair enough.
But be specific.
Cutting programs and/ or increasing taxes?
I think sur-taxing the double dipping dual citizens would be a nice touch.
—————————————–
Well, to start instead of body hugging your boss with your eyes closed, you enroll in a basic math course. Instead of giving handouts that don’t make a lick of difference, send that money to pay off some debt?

Do you run your budget PP, pay bills, rent, mortgage? Same common sense applies.

One small problem: Common sense is not so commom, hence I can only guess why you asked.

#90 BCWally on 04.07.22 at 9:14 pm

Yeah saw that with the banks….wonder how long the spread on a government fiver and a mortgage goes up to cover.

#91 Quintilian on 04.07.22 at 9:25 pm

“Do we need to wait for the grind higher in mortgage rates to bring hope to the 90% of house-lusty kiddos who have given up looking?”

No Garth don’t take us for simpletons.

Those of us who were not fooled into following the RE Pied Pipers are smart enough to know to wait for the prices to blow up the market not the rates.

The higher interest will help to bury the coffin deeper so that a resurrection would be severely hampered.

No budget from any party would have been put in place to prick a bubble, anybody believing or hoping for that is stupid and blind to the political and economic realities.

Simply a political game played flawlessly.

Tick Tock, Tick Tock

#92 Ballingsford on 04.07.22 at 9:29 pm

The newbie, house-buying tax credit is doubled. Essentially, it’s money to pay for closing costs. Ten grand credit.
*****
$10,000 sounds richer than $5,000, but really, it’s not much in your pocket since it’s a non-refundable credit. So, instead of getting 15% of 5000 ($750), you now get $1500.

Doesn’t near cover all the closing costs such as paying the lawyer and land transfer taxes. And you don’t get the money until the year after you close at tax time.

Might make a downpayment on the new fence you might want to build.

#93 crowdedelevatorfartz on 04.07.22 at 9:29 pm

@#129 A Quintillian cavities

“Hey a Crowdie, good news , we will get you into social housing,and new dentures.”

+++
I’m ok. Rent is cheap and all my teeth are my own.
You must be pretty excited.
Free dental for 12 and under means your covered!
:0

#94 Ustabe on 04.07.22 at 9:34 pm

Anyone care to go back over the past few days and examine some of more preposterous statements and peculiar positions taken?

I’ll wait.

#95 Nonplused on 04.07.22 at 9:38 pm

“So, if you didn’t make an extra $300,000 since the fall, you lose.”

Not so if you owned said house already. It got a lot more affordable for you. Since 70% of us already do, that’s a win when buying votes. I imagine most Liberal voters in the Laurentian power base already own houses. Vancouver too. All this other stuff in the budget is part of the “NDP budget”. Got to keep the coalition together, after all.

As I have said before, Trudeau is an actor playing prime minister in a stage performance of a mythical Canada. But the people who bought tickets to the show like it.

———————————–

Side note for the day: Let’s look at a new term popular in the press and on the lips of “leaders” these days: “Our democracy”. Whose democracy? “Ours”. Does “ours” imply everybody, or is it a group that thinks they own it? It is an interesting question when you see people like Trudeau or Psaki using that phase to identify large numbers of citizens as threats to “our democracy” as if they are not voters and have no “ownership” in the democracy. It is interesting phrasing.

————————————

At first I wasn’t too opposed to a national dental program modeled after health care (which is actually provincial) but upon understanding the $90,000 income limit now I am not in favor. Does this give a premonition of things to happen to health care? Is it a family income or individuals? What does it cover? Why do people who pay the taxes to cover this dental care also have to go out and get their own insurance? Is this what “equity” looks like? If so count me out. But it is very NDP like thinking. It looks very much like “If you earn less than $90,000/year you get free dental. If you earn more you pay for your own dental and pay for everyone else’s through your taxes.” That would be another hidden tax on 20% of the population. Actually not such a “hidden tax”, really. You could just look at your dental premiums and call it a tax now since other people don’t have to pay it but get the same service.

Still, I predict a booming market for dentists and hygienists. Any young people interested in that field should look into it.

Also, is the government going to also try and set rates like they do in healthcare? How will that work for those who have to buy insurance (the insurance companies attempt to do that now). Will we end up with a two-tier system, basically unchanged for the $90,000 per year plus crowd but long waits and rationing for the rest? Or new draconian laws to punish dentist who don’t accept government funded patients?

Nothing the government “fixes” ever gets better.

———————————–

So it looks like 2030 is the year many states are planning to go nuclear against ICE engines. Make sure and get yours first, because there won’t be enough lithium to make all the batteries, or enough power to charge them all. They really should consult engineers before crafting laws that involve thermodynamics, and maybe the odd economist if supply constraints are involved. The good lord above already laid down those laws, and human legislation cannot override them.

#96 Tom from Mississauga on 04.07.22 at 9:40 pm

Could you unpack the HST thing on assignments a bit more? I don’t get it.

#97 Satori on 04.07.22 at 9:42 pm

@#15 investor

“Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?”

+++++++++++++
#21 crowdedelevatorfartz on 04.07.22 at 5:38 pm

Yes.
A company created and registered in Canada …is a legal entity.
5k is about enough to have a “Canadian” company buy Canadian real estate.

The cost of doing business.
——————————————
And until the registry from every province is legislated to make these ‘companies’ reveal who the share holders are (which I suspect is mostly individual persons) – all those companies can continue to purchase real estate as ‘Canadian’ companies. So no one knows how many foreign buyers there is in Canada.

This is just a biscuit to shut up the masses, in my opinion… lawyers are likely loving the extra business.

#98 Ponzius Pilatus on 04.07.22 at 9:45 pm

#89 Satori on 04.07.22 at 9:12 pm
Instantly stopping the deficit bleed.

If she can’t do that, I have no further use for any woke-ist garbage.
——————-
#64 Ponzius Pilatus on 04.07.22 at 7:26 pm
Fair enough.
But be specific.
Cutting programs and/ or increasing taxes?
I think sur-taxing the double dipping dual citizens would be a nice touch.
—————————————–
Well, to start instead of body hugging your boss with your eyes closed, you enroll in a basic math course. Instead of giving handouts that don’t make a lick of difference, send that money to pay off some debt?

Do you run your budget PP, pay bills, rent, mortgage? Same common sense applies.

One small problem: Common sense is not so commom, hence I can only guess why you asked.
—————————
Is your name Sailo?

#99 [email protected] on 04.07.22 at 9:49 pm

#49 crowdedelevatorfartz
@#27 dave
“Putin could drop a nuclear bomb in the middle of Canada.”

+++
Kenora doesn’t deserve that fate.
And no one would notice a difference if Sudbury got nuked.
+++
Actually, neither Kenora nor Sudbury is the middle of Canada. Lorette, Manitoba is the longitudinal centre of Canada. Not that it matters much.

https://www.atlasobscura.com/places/longitudinal-centre-of-canada

#100 When Will They Raise Rates? on 04.07.22 at 9:54 pm

Self above all! The proud anti-vax credo. – Garth

Well, you clearly won’t fight for my freedom, why would I fight for yours?

We fought for society, including your sorry, selfish butt. – Garth

#101 crowdedelevatorfartz on 04.07.22 at 10:01 pm

@#95 nonplused
“long waits and rationing for the rest? ”

+++
Yes, we’ll all have the same dental care …
The same as our vaunted “free medicare” …..
Long waits or none at all.

#102 Philco on 04.07.22 at 10:04 pm

Foreigners are banned from buying houses for two years. Ironically, we’re getting ready to welcome tens of thousands (maybe hundreds) of displaced Ukrainians.
=========================
And the rest of the crews coming also…lol their so S_M_R_T . Maybe that relator can pitch some more tents out back.
Hugs fix everything I hear.

#103 sean on 04.07.22 at 10:05 pm

If bank profits will be subject to a “surtax”, I guess the dividend tax credit will need to be amended to have an “eligible bank” class as well as the existing “eligible” and “non-eligible” classes, right? After all, the divvy credit is supposed to compensate for taxes already paid at the corporate level.

With the current twits in power I’m not holding my breath.

#104 A01 on 04.07.22 at 10:05 pm

Any lawyers here? So if I’m 41, I can’t take advantage of the The hybrid TFSA-RRSP tax shelter? Isn’t this age discrimination? This is a serious question doesn’t the charter of rights and freedoms protect us from this BS? What if I’m 40 but not vaxed, do I still get in the program? This government must go, where can I get one of those Trudeau flags.

#105 crowdedelevatorfartz on 04.07.22 at 10:09 pm

What was the statement the non finance Finance Minister Chrystia Freeland uttered during her budget speech that brought guffaws of laughter from the opposition?

“The budget is a fiscal anchor. It is a line we will not cross”

https://twitter.com/CPAC_TV/status/1512167763569168385/video/1

Perhaps she should have deleted the letter “n” from the word “line”

#106 PeterfromCalgary on 04.07.22 at 10:10 pm

“scheduled to fall to under $10 billion by 2026.”

When Trudeau says nonsense like that he is about as believable as Putin talking about de-nazification of a country that elected a Jewish President.

#107 Satori on 04.07.22 at 10:10 pm

Canadians are friendly enough, maybe too busy smoking reefer or working two minimum wage jobs trying to survive, with zero time for real news. T2 knows this, so he gives out a little ‘treat’ to create some loyal friends. That $500 buck treat secures liberal votes for the next election. Anyone with a dog or has a neighborhood dog knows this: Treats 101.

#108 Victor V on 04.07.22 at 10:14 pm

“ People who used their houses (rising equity) to get by – 2nd mortgages, HELOCs – are starting to call us. Not many, but it’s very telling that we are hearing from them at all. They ALL have a list of unsecured debts & some have CRA debt, too.”

https://twitter.com/scottterriohma/status/1512079565539082264

#109 When Will They Raise Rates? on 04.07.22 at 10:20 pm

DELETED

#110 Satori on 04.07.22 at 10:26 pm

#104 A01 on 04.07.22 at 10:05 pm
Any lawyers here? So if I’m 41…
—————————————
‘No mention in the budget of this being restricted to those under age 40’.

#111 Sail Away on 04.07.22 at 10:37 pm

#64 Ponzius Pilatus on 04.07.22 at 7:26 pm
#110 Sail Away on 04.07.22 at 2:00 pm
#104 Ponzius Pilatus on 04.07.22 at 11:59 am
#100 Sail Away on 04.07.22 at 11:06 am
#95 Ponzius Pilatus on 04.07.22 at 9:00 am

Re: Freeland

Thanks for doing the research.
This will hopefully shut some posters up.
But I doubt it.
Confirmation bias is powerful.

———

I, for one, am perfectly content to judge entirely on job performance as finance minister.

———

And on what metrics are you judging her performance?
I hope not the ones dictated by your conformation bias.

———

Instantly stopping the deficit bleed.

If she can’t do that, I have no further use for any woke-ist garbage.

———

Fair enough.
But be specific.
Cutting programs and/ or increasing taxes?
I think sur-taxing the double dipping dual citizens would be a nice touch.

———-

More specific than one single solitary criterion? That is un-possible.

My job is not to do the finance minister’s job.

#112 High IQ Anti-Vaxxer on 04.07.22 at 10:43 pm

I’ll be applying for the $500 to get more gas for my truck and some more Nickelback CDs for the next convoy.

Thanks Chrystia!

#113 Sail Away on 04.07.22 at 10:45 pm

#83 Mr Canada on 04.07.22 at 8:52 pm

Also, the Feds need to be careful hammering the Banks and Insurance Companies, many now have a larger presence in the US (TD, RBC, Manulife) what is to stop them to quietly relocate to the US ? Famed Royal Dutch Shell left the Netherlands for the UK.

———-

Sort of like Energy Canada (Encana) relocating to Denver you mean? Or all the large and profitable California companies moving to Texas?

Weird how that sort of thing happens all the time. Learnin’ ain’t easy.

#114 Satori on 04.07.22 at 10:48 pm

#88 crowdedelevatorfartz on 04.07.22 at 9:04 pm
@#81 satori

“First impression – Freeland: ”

+++
Yep.
My impression was of the Cover of a cheap romance novel titled ” Budget 2022: Gone with the Wind”
———————————
LOL!! And Trudeau really doesn’t give a damn!

#115 Sail Away on 04.07.22 at 10:53 pm

I like the surtax on bank profits measure.

Good thing a company can reduce profit and thereby tax with simple and elegant strategies such as increasing C Suite compensation.

Let’s relabel that to: ‘Helping Bankers Make Bank’

#116 Capt. Serious on 04.07.22 at 10:57 pm

Not as bad as I feared.

#117 Rogg-Dawg on 04.07.22 at 11:02 pm

Garth, imagine you’re FM. What would your budget look like?

#118 Steveston Born on 04.07.22 at 11:05 pm

But wait………

I thought “Chinese Dudes” wasn’t a thing ?
What’s with the foreign buyers ban then, Garth ?

Not my idea. Politicians like to blame people who don’t vote. – Garth

#119 Robert Ash on 04.07.22 at 11:05 pm

Have to like the reference to Bugs Bunny and the Looney tunes … I had to look it up, as I recognized the jingle, but thought it might be Barnum and Bailey the Ringling Bros circus meme…
It is sad, to think our Leaders, are just regurgitating the same old same, old…. Housing is it… and really what representation do we have… it is another message, from the WEF, and their mandate.
Throw in the lost opportunities to grow our inherent National Advantages, the Resource sector in all forms, and .. Put it off…delay.. let’s go fishing, and take a break…
Oh for a Business leader or two, to take the helm, and start to really seize the real opportunity to reduce Government, and Modernize our Governments. Digital Tax returns, Health care reform, Provincial trade barriers eliminated, an Armed Forces, where many young people could get a start, without financial insolvency, to hang over them…etc. etc., …. Instead, we have provinces, limiting the options, for other Canadians, as a knee jerk reaction to the problems, created by themselves… We can whine about it, but it may take targeted, opposition at Election time to right the ship..Gang up on Key Riding’s, with a a Blitz like, Door to door strategy. For example Freeland’s riding of Rose Dale, in Toronto… Hard to understand their support of her lack of experience or idea’s… Some of Canada’s riches, must be experiencing that Guilt of Inequality. But the irony is these folks, that elect her, are in fact, exacerbating, the problem, since only Commerce and a free market,birthing companies like Spotify will really increase our Countries GDP and Investment future.

#120 Ryan McK on 04.07.22 at 11:22 pm

Thank you Chrystia Freeland, the People’s Most Meritorious, Most Competent Commisariat of Finance ;-).

#121 cd on 04.07.22 at 11:52 pm

So if we didn’t work that much that year and made less than we typically do, then there is a chance that we can get $500? And what if we already own a property?

#122 Ponzius Pilatus on 04.08.22 at 12:03 am

#116 Capt. Serious on 04.07.22 at 10:57 pm
Not as bad as I feared.
——————-
Were you afraid that the Marxists, Stalinists, Bolsheviks (Hitler’s favourite), Communists, Trotskyists would take your house away.
Relax, you’re in good hands with JT and Jag in charge.
Besides, our neighbours to the south would never allow a Communist party take control over the Great White North.

#123 Nafta-visa-boy on 04.08.22 at 12:11 am

So the plan your traitorous criminal corrupt puppet regime had put forth is to stop the plunging standard of living from plunging further and help young Canadians pay boomers for the privilege of living in the country they were born in?

Violence is in the future.

#124 Dr V on 04.08.22 at 12:19 am

103 sean with a small ‘s’

“After all, the divvy credit is supposed to compensate for taxes already paid at the corporate level.”
——————————————–

Steady there sean, bank Surtax will be a one time fee on 2021 earnings.

https://www.cbc.ca/news/business/canada-budget-2022-bank-tax-1.6412530

Then they will raise the corp tax rate a bit. But if that is passed on through the dividend tax credit it makes no difference in tax revenue generated from the dividends.

Unless of course they increase the personal income tax
rates….

#125 Sail Away on 04.08.22 at 12:24 am

#85 Satori on 04.07.22 at 8:55 pm
#15 an investor on 04.07.22 at 5:19 pm

Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?

———-

Yes, and until the registry from every province is legislated to make these ‘companies’ reveal who is the share holders (which I suspect is mostly individual persons) – all those companies can continue to purchase real estate as ‘Canadian’ companies. So no one knows how many foreign buyers there is in Canada.

This is just a biscuit to shut up the masses, in my opinion.

———-

So… a Canadian corporation injects $ from foreign shareholders into the Canadian economy, pays Canadians for building upkeep, management and maintenance, workers’ salaries, taxes on business income, and then either pays capital gains taxes upon sale, or takes a loss.

Can someone explain how exactly that is bad for Canada?

#126 Linda on 04.08.22 at 12:57 am

So i’m wondering, how many would be homeowners are currently contributing to a TFSA or RRSP now? I seem to recall not a few comments from earlier blog posts where the TFSA was decried as being ‘only for the rich’. Given that annual contributions are only $6K, if folks aren’t able to make a $6K contribution to a TFSA what is the likelihood of them making an $8K contribution to a FHSA? Supposedly any FSHA contribution can be used to offset taxes the way RRSP contributions do. But again, if folks can’t set aside $6K for a TFSA, how likely is it that they are actually contributing to an RRSP?

#127 BigAl (Original) on 04.08.22 at 1:22 am

A few billion to municipalities to encourage some type of house building? The feds should design and administer any such programs directly through their own departments. Municipal governments are rife with corruption where city politicians and staff are too close to select local developers, businesses, and individuals.

Years ago CMHC delivered their own federal program giving 25k grants to homeowners to build a 2nd suite. Then about 7 or 8 years ago they decided to download the delivery of the program to the provinces who in turn had municipalities deliver it. The city never publicly offered or adverised these grants – they buried them in an obscure place on their website. All the available grants went to friends and family of local city politicians and those of city hall staff.

#128 under the radar on 04.08.22 at 5:23 am

HST always applied but because of conflicting rulings of tax court and CRA- intention is removed and now everyone pays. This is a pittance in terms of revenue.

The one year period to gain the PR exemption now appears to cement the goal posts whereas before one was never sure because tax treatment was based on intention not necessarily time of ownership.

had they upped the inclusion rate on CG’S would have cost me $$$$. Giant windfall.

#129 Sail Away on 04.08.22 at 5:27 am

In other finance news:

‘Walmart to offer new truck drivers $95-110k starting salary’

https://www.nbcnews.com/news/amp/rcna23482

#130 Summertime on 04.08.22 at 7:51 am

So they will basically keep propping the real estate at all cost while taking laughable useless measures like prohibiting sales to foreigners/non residents for 2 years that is not a factor on the market at all.

Clowns with single digit IQs.

That banks excess profits tax proposition was the really hilarious part of the whole budget discussions.

#131 Ballingsford on 04.08.22 at 8:05 am

#121 cd on 04.07.22 at 11:52 pm
So if we didn’t work that much that year and made less than we typically do, then there is a chance that we can get $500? And what if we already own a property?

****
Does a one time $500 payment really make a difference in the whole scheme of things? Maybe collect beer bottles and cans for a week or two. I remember a person downtown collecting cans on his bicycle and had a couple garbage bags full of cans he was taking to sell. He said he did that to top up his social assistance cheque and actually made more from the cans than the monthly cheque.

#132 crowdedelevatorfartz on 04.08.22 at 8:05 am

@#122 Psychedelic Ponzie’s Psilocybin Party

” Relax, you’re in good hands with JT and Jag in charge.”

++++

I didnt realize ‘shrooms were your thing.

#133 crowdedelevatorfartz on 04.08.22 at 8:11 am

@#129 Sail Away

Unreal.
For the “Beast of Bentonville” aka Wal Mart of all companies to offer $90 -110 k US for truckers…..

If that isnt a bell ringer for all the inflation/recession negative nellies. I dont know what is.

Whats next? Self driving long haul trucks?
Time for the basement brats to step up and actually start working rather than clutching mommy’s skirt and wailing “I’m depressed and I cant work.”

#134 TurnerNation on 04.08.22 at 8:52 am

Today’s picture if emblematic of all that’s wrong with Kanada — the occupied nation after the Globalists cemented their soft coup that cold week March 2020.
Why are healthy people acting like they are sick, still , in 2022 with face diapers? The show must go on.
Political actors.

We are so close to 2019 Normal, any day now!

— Ah yes, the State of Emergency. Who’d have seen this coming.

.Ending Quebec’s state of emergency completely would ‘kill people’, warns public health director(montreal.ctvnews.ca)

Ahem. From last August:

#24 TurnerNation on 08.28.21 at 1:06 pm
Things which have the permanency in Kanada:
1. Fictional ‘State of Emergency’.
2. Flags at half mast
3. CV Rules. Always the rules Comrade.


—From last April my post…our rulers are pushing for this again. This is designed to last until 2025. Year 3 how we doing Y’all?

#126 TurnerNation on 09.01.21 at 8:40 am
**It is appearing that CV is a permanent state** a new world order – but who could have forseen that eh.
You will be wearing Your Mask until 2025. Smile.

#135 Daveyboy on 04.08.22 at 9:02 am

@ 133. I lived in Bentonville for 3.5 years. Sam Walton loved and respected his truck drivers. I think pay was already close to 90k a year for them anyways. Pretty good job, add in bonus and stock options and it’s hard to beat for the amount of education.

#136 Dharma Bum on 04.08.22 at 9:07 am

Thanks for the Thursday Happenings update Garth.

I missed it all.

I was blissfully slumbering on a serious dose of Propofol
whilst undergoing my colonoscopy.

A metaphor for the country?

No. It was real.

I’m only mentioning it because I know that Ponzie was dying to know.

Purged and refreshed.

#137 Bezengy on 04.08.22 at 9:20 am

#125 Sail Away on 04.08.22 at 12:24 am
#85 Satori on 04.07.22 at 8:55 pm
#15 an investor on 04.07.22 at 5:19 pm

Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?

———-

Yes, and until the registry from every province is legislated to make these ‘companies’ reveal who is the share holders (which I suspect is mostly individual persons) – all those companies can continue to purchase real estate as ‘Canadian’ companies. So no one knows how many foreign buyers there is in Canada.

This is just a biscuit to shut up the masses, in my opinion.

———-

So… a Canadian corporation injects $ from foreign shareholders into the Canadian economy, pays Canadians for building upkeep, management and maintenance, workers’ salaries, taxes on business income, and then either pays capital gains taxes upon sale, or takes a loss.

Can someone explain how exactly that is bad for Canada?

—————-
Some of us don’t believe they’re paying their fair share of taxes. If we had proper transparency, then we would know.

From the CFIB website

For example: You sell shares of a small business corporation in 2022 and make a $950,000 profit (also called capital gains). Without the LCGE, you would have to pay taxes on half of this amount, i.e., $475,000. However, seeing as the LCGE allows you to subtract $913,630 from your profits in 2022, you only pay taxes on ($950,000 – $913,630) x 50% = $18,185 rather than on $475,000.

You end up reaping major tax savings!

#138 Comrade on 04.08.22 at 9:21 am

So in summary, people who didn’t get into real estate are greaterfools.

#139 Summertime on 04.08.22 at 9:22 am

Quant Guru Calculates Fed Can Only Hike To 1% Before It Must Halt The Cycle

https://www.zerohedge.com/markets/shocking-quant-guru-calculates-fed-can-only-hike-1-it-must-halt-cycle

There goes the eagerness for ‘increasing the rates as much as needed in order to control inflation’ and the trust in all the ‘tools’ that central bankers have in their disposal.

That will not even dent the housing market, on the contrary, will fuel further increases of all assets as with the most negative real interest rates in history people will realize that the emperor has no clothes.

My prediction was for 2.00 – 2.25 % top rates in this cycle before abandoning the rate increases and reversing course.

With official CPI soon to be in double digits and with real inflation double that, with people restricting their grocery purchases significantly, it does not look good at all.

https://ca.finance.yahoo.com/news/canadians-cutting-back-on-groceries-due-to-inflation-yahoo-maru-survey-100034838.html

What is really scary is that people are already talking about the risk of Central Bankers increasing rates too fast and the risk of policy mistake!!!

Got that? With rates at 0.5 % and inflation in double digits it could be a policy mistake to increase rates to 2 % ?!?

#140 Bitcoin Bro on 04.08.22 at 9:24 am

All theatre and optics as usual.

Doesn’t matter really. The vice grip of substantially rising mortgage rates and the inflation of everything else will force sales and/or foreclosures eventually.

The next 12 months are going to be very interesting. I maintain that the ‘Trucker Convoy’ really wasn’t about Covid mandates and really more about this – rapid rise of the cost of living in this country. There is a very real chance that these people will be back with a vengence and in bigger numbers.

#141 TurnerNation on 04.08.22 at 9:26 am

This is a slow drip all over for the former middle class.
The “Right” to home ownership is slowly being removed. First it’s those ‘pesky’ foreigners banned from our markets. Then it will be assignors, investors. Down the chain, easy pickings.
Eventually two people will only be allowed permission to buy a 4-bedroom home if they allocate the extra bedrooms to refugees/homeless. Part of a Social and Energy/Green Audit . I wish I were kidding but things are moving so fast. Just watch him.


— Income is being stolen, starting with the top level, first. They are coming for you!!

“The federal budget released Thursday said 28% of tax filers with income above $400,000 — the top 0.5% of earners — paid an average federal income tax rate of 15% or less in 2019. More than one in 10 of those top earners paid less than 5%, according to 2019 tax returns.
“These Canadians make significant use of deductions and tax credits, and typically find ways to have large amounts of their income taxed at lower rates,” the budget document said.”

#142 Inadequate on 04.08.22 at 9:27 am

The “Canadian dream” has now dwindled down to just owning a house. I am pursuing my sons, all born and raised in Canada, to go south after getting their education here.

#143 crowdedelevatorfartz on 04.08.22 at 9:35 am

@#136 D Bum
“I was blissfully slumbering on a serious dose of Propofol
whilst undergoing my colonoscopy.”

+++

They knock you out now?
Geez.
In the good old days you got to sing Moon River while the doc was “camera surfing”.

#144 mike from mtl on 04.08.22 at 9:45 am

#87 When Will They Raise Rates? on 04.07.22 at 9:04 pm
#66 Grandv!ew on 04.07.22 at 7:48 pm

We are playing with fire…..

Below are abhorrent and wrong ways to think about, say about and to treat the country one is living in. However presently there are too many of them and now they are forming the swarm that can be easily exploited by nefarious people and powers. What is happening with today’s youth….?

Yes it is Australia and thankfully not us but I am worried where are we going with all of this…..

“Why would I stay and fight for a country where I can’t even afford to buy a house?”

That was a common sentiment from readers to a story last week about a poll that found most young people would flee rather than stay and fight if Australia was in the same situation as Ukraine.

The poll generated fierce debate, with more than 1400 reader comments.

“Young people can’t afford a home to live here, it should be land owners’ primary responsibility to put up the fight,” one reader said.

https://www.news.com.au/finance/economy/australian-economy/why-would-i-young-people-locked-out-of-housing-market-wouldnt-fight-for-australia/news-story/da1681ba63bb0219b9354911c397be0f

——————-

Very interesting.

If Canada were to be invaded, there is a significant portion of the population still imprisoned in their own country that might very well view the invaders as liberators!

Absolutely correct, Australia and Canada have exactly the same issues and are almost interchangeable.

The only nation capable of seriously invading us is the USA, and that would be a gain for us..not them. The USA would then be adding yes major Arctic territory but inherit: a few welfare states, bunch of angry blue and purple ones, all the wood, metals and Oilfields they could ever need.

For the former Canadas, we’d finally scrap all the hugely wasteful and inefficient local Government, crappy currency, Oligopolies actually have to compete which they will lose, Quebec issue will finally be addressed with a big slap of reality, awful ‘universal healthcare’ will have (paid) alternatives, immigration will be decimated, taxes will be far lower, no visa troubles moving south, and so on.

I fail to see the downside here.

#145 GenerationalLess on 04.08.22 at 9:49 am

#123 Nafta-visa-boy on 04.08.22 at 12:11 am
So the plan your traitorous criminal corrupt puppet regime had put forth is to stop the plunging standard of living from plunging further and help young Canadians pay boomers for the privilege of living in the country they were born in?

Violence is in the future.

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

Canadians with children are the ones getting most of the handouts from Ottawa, not Boomers. Do you hate them also? Ask poster IDHCT (or whatever he calls himself) about the Child Tax Benefit where average (and above) income families get several thousands of taxpayer dollars per year per child. Wasn’t a thing when Boomers had kids. And this support of families with children will only continue to be the trend with $10 childcare.

What do Boomers get exactly? Oh yeah, their house that they live in is worth a fortune just like everyone else who has a house.

#146 Parsonage on 04.08.22 at 9:53 am

#88 crowdedelevatorfartz on 04.07.22 at 9:04 pm
@#81 satori
#134 TurnerNation
Anyone else wondering who the third person in the picture is? A rare glimpse of The Puppeteer?

#147 crowdedelevatorfartz on 04.08.22 at 10:46 am

@#146 Parsonage
Anyone else wondering who the third person in the picture is? A rare glimpse of The Puppeteer?”

+++
I noticed that yesterday and automatically assumed either Trudeau is an alien with a third arm or Butts is back.

#148 Sail Away on 04.08.22 at 10:52 am

#137 Bezengy on 04.08.22 at 9:20 am
#125 Sail Away on 04.08.22 at 12:24 am
#85 Satori on 04.07.22 at 8:55 pm
#15 an investor on 04.07.22 at 5:19 pm

Do I understand that RE can still be purchased anonymously through a numbered company and that housing prices will therefore remain unaffordable in Canuckistan?

———-

Yes, and until the registry from every province is legislated to make these ‘companies’ reveal who is the share holders (which I suspect is mostly individual persons) – all those companies can continue to purchase real estate as ‘Canadian’ companies. So no one knows how many foreign buyers there is in Canada.

This is just a biscuit to shut up the masses, in my opinion.

———-

So… a Canadian corporation injects $ from foreign shareholders into the Canadian economy, pays Canadians for building upkeep, management and maintenance, workers’ salaries, taxes on business income, and then either pays capital gains taxes upon sale, or takes a loss.

Can someone explain how exactly that is bad for Canada?

———-

Some of us don’t believe they’re paying their fair share of taxes. If we had proper transparency, then we would know.

From the CFIB website

For example: You sell shares of a small business corporation in 2022 and make a $950,000 profit (also called capital gains). Without the LCGE, you would have to pay taxes on half of this amount, i.e., $475,000. However, seeing as the LCGE allows you to subtract $913,630 from your profits in 2022, you only pay taxes on ($950,000 – $913,630) x 50% = $18,185 rather than on $475,000.

You end up reaping major tax savings!

———-

???

Only residents of Canada are eligible for the LCGE. Residents are not foreigners. And for someone to sell a corp, someone else needs to buy it, which usually means that the corp is successful and beneficial to Canada. Otherwise why buy it?

Big picture.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-25400-capital-gains-deduction/what-deduction-limit.html

#149 Ponzius Pilatus on 04.08.22 at 10:55 am

#129 Sail Away on 04.08.22 at 5:27 am
In other finance news:

‘Walmart to offer new truck drivers $95-110k starting salary’

https://www.nbcnews.com/news/amp/rcna23482
————————-
And my prediction:
Amazon gets fully unionized.
No more peeing in bottles, due to lack of breaks.
“From the people for the people”

#150 Ponzius Pilatus on 04.08.22 at 11:07 am

#143 crowdedelevatorfartz on 04.08.22 at 9:35 am
@#136 D Bum
“I was blissfully slumbering on a serious dose of Propofol
whilst undergoing my colonoscopy.”

+++

They knock you out now?
Geez.
In the good old days you got to sing Moon River while the doc was “camera surfing”.
————————
Dharma is a wimp.
I’m always fully awake, ready to explain when they find my bag of contraband.
And ready to hand out the customary bakshisch.
Don’t wanna find a couple of cops on my bedside when I wake up.
Besides, watching it on the screen is like going down the rabbit hole.

#151 Ballingsford on 04.08.22 at 11:10 am

#146 Parsonage on 04.08.22 at 9:53 am
#88 crowdedelevatorfartz on 04.07.22 at 9:04 pm
@#81 satori
#134 TurnerNation
Anyone else wondering who the third person in the picture is? A rare glimpse of The Puppeteer?

****
Good eye! Jag maybe?

#152 Crystal ball futurist on 04.08.22 at 11:21 am

Our two kings J&J are very smart.

Why be the bad guys when inflation and interest rates are going to do the dirty work in RE.

Central bank is no longer buying MBS. That’s another straw.

#153 DON on 04.08.22 at 11:26 am

#139 Summertime on 04.08.22 at 9:22 am
Quant Guru Calculates Fed Can Only Hike To 1% Before It Must Halt The Cycle

https://www.zerohedge.com/markets/shocking-quant-guru-calculates-fed-can-only-hike-1-it-must-halt-cycle

There goes the eagerness for ‘increasing the rates as much as needed in order to control inflation’ and the trust in all the ‘tools’ that central bankers have in their disposal.

That will not even dent the housing market, on the contrary, will fuel further increases of all assets as with the most negative real interest rates in history people will realize that the emperor has no clothes.

My prediction was for 2.00 – 2.25 % top rates in this cycle before abandoning the rate increases and reversing course.

With official CPI soon to be in double digits and with real inflation double that, with people restricting their grocery purchases significantly, it does not look good at all.

https://ca.finance.yahoo.com/news/canadians-cutting-back-on-groceries-due-to-inflation-yahoo-maru-survey-100034838.html

What is really scary is that people are already talking about the risk of Central Bankers increasing rates too fast and the risk of policy mistake!!!

Got that? With rates at 0.5 % and inflation in double digits it could be a policy mistake to increase rates to 2 % ?!?

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

I saw this article and the problem is that last time they weren’t facing inflation like they are this time.

Variables changes need to be factored in but there wad no mention. We are now entering a new playing field where the decision will be the lesser of two evils.

#154 jess on 04.08.22 at 11:56 am

Ottawa out of touch?
who is in charge? Bend and Twist
transnational co-operation verified TRANSPARENCY! AND EXPOSE THE FICTIONS only TRUE OWNERSHIP

https://www.tvo.org/video/the-thieves-are-uniting-the-rise-of-global-kleptocracy

#155 Dr V on 04.08.22 at 12:05 pm

148 sailo

Exactly.

#156 Shawn on 04.08.22 at 1:45 pm

A bottle picker by trade?

#131 Ballingsford on 04.08.22 at 8:05 am

I remember a person downtown collecting cans on his bicycle and had a couple garbage bags full of cans he was taking to sell. He said he did that to top up his social assistance cheque and actually made more from the cans than the monthly cheque.

***************************
I’ll always remember a guy who called into a talk radio show many years ago about some topic. He mentioned he was “a bottle picker by trade”. I loved it. He was showing some respect for himself.

I like and respect most bottle pickers. They are industrious and help keep places cleaner and they prevent some bottles and cans from going to the landfill.

#157 Shawn on 04.08.22 at 1:53 pm

Oh the inhumanity of the bank tax

#103 sean on 04.07.22 at 10:05 pm
If bank profits will be subject to a “surtax”, I guess the dividend tax credit will need to be amended to have an “eligible bank” class as well as the existing “eligible” and “non-eligible” classes, right? After all, the divvy credit is supposed to compensate for taxes already paid at the corporate level.

****************************
Technically that’s a great point.

But then again do you really think shareholders as opposed to bank customers paid the income taxes at Royal Bank?

The banks say they are discriminated against with this new tax. Strange they don’t mind being being discriminated against when their industry is protected from competition by American-based banks. Other industries cope with foreign competition in Canada. Not the big banks. Any foreign banks operating here have to open shop here rather than just serve us remotely. Tons of special protection for these banks.

But if the 16.5% tax rate (LAUGH out loud, it used to be over 35% 30 years ago) is discriminatory them simply apply it to all Canadian corporations. The vast vast majority of Canadian corporations are HERE to serve Canadian customers and have no ability to move away and there is a ton of room to raise corporate taxes back closer to historical levels.

Or do people hate taxes so much we’d rather the government run deficits than tax corporations appropriately?

#158 ElGatoNeroYVR on 04.08.22 at 2:09 pm

126 Linda on 04.08.22 at 12:57 am
You got this mixed-up.The RRSPˋs are for “the rich” as it reduces your net,effective taxe rate on a 6 figure income to 15-17% .
Though realisitcally I can tell you that living in GVA or GTA a 6 figure is the average income one needs to live the Canadian dream decently at a real 1st world standard ,own a house and save for retirement.
Everyone else earning less is making compromises on the living standard or borrowing from the future to live it now.
Not judging at all, just stating the obvious , been there,done that.
The socialists just like to mix the average working people with the truly rich as theyere aren’t enough of those.

#159 Shawn on 04.08.22 at 2:21 pm

Corporate Tax rate

I meant to say the (federal) corporate tax rate was over 30% 30 years not 35%. I don’t know the exact number but the total corporate tax in Alberta (except manufacturers got a lower rate) was 46 to 48% when I came to Alberta in 1989. Now its 23% total provincial and federal. (Okay going up to 24.5% for big banks now) Why so low?

Would the banks and grocery stores and oil producers leave Alberta if we had the old tax rates? (Maybe oil could not stand the high rates but most consumer serving business would still be here).

#160 Linda on 04.08.22 at 3:21 pm

#158 ‘El’ – I didn’t say I believed the TFSA or the RRSP were ‘only for the rich’. Just that not a few blog commenters have said this previously. My question given these comments is whether the new tax shelter vehicle announced in yesterday’s budget will be used by anyone who currently may not be contributing to a TFSA or a RRSP. I’m guessing the answer is ‘No’.

#161 Dr V on 04.08.22 at 3:43 pm

158 El Gato

“The RRSPˋs are for “the rich” as it reduces your net,effective taxe rate on a 6 figure income to 15-17%”

——————————————

Incorrect. Punch in 100K into the following tax calculator and check the average tax rate. Then punch in $82k to reflect an 18% RRSP deduction.

All overall rates in any province remain in excess of 20%.

https://www.eytaxcalculators.com/en/2022-personal-tax-calculator.html

#162 ElGatoNeroYVR on 04.08.22 at 5:31 pm

#161 Dr V on 04.08.22 at 3:43 pm

The magic is in the cap gains tax and tax on qualified dividends.
I can tell you from peronal experience that it works out in the 17.5% .
the same calcualtor shows you the margianl on them and it is what I use to plan my contributions.

#163 Bezengy on 04.09.22 at 8:22 am

#148 Sail Away on 04.08.22 at 10:52 am
#137 Bezengy on 04.08.22 at 9:20 am
#125 Sail Away on 04.08.22 at 12:24 am
#85 Satori on 04.07.22 at 8:55 pm
#15 an investor on 04.07.22 at 5:19 pm
———-
Some of us don’t believe they’re paying their fair share of taxes. If we had proper transparency, then we would know.
From the CFIB website
For example: You sell shares of a small business corporation in 2022 and make a $950,000 profit (also called capital gains). Without the LCGE, you would have to pay taxes on half of this amount, i.e., $475,000. However, seeing as the LCGE allows you to subtract $913,630 from your profits in 2022, you only pay taxes on ($950,000 – $913,630) x 50% = $18,185 rather than on $475,000.
You end up reaping major tax savings!
———-
???
Only residents of Canada are eligible for the LCGE. Residents are not foreigners. And for someone to sell a corp, someone else needs to buy it, which usually means that the corp is successful and beneficial to Canada. Otherwise why buy it?
Big picture.

——————

This is complicated stuff, way above my pay grade, but clearly the LCGE is being abused. The bottom line is that I believe profits from small companies foreign and domestic are involved with profiting from real estate. Changes are clearly on their way.

https://www.mondaq.com/advicecentre/content/3528/Proposed-CRA-Changes-to-the-Lifetime-Capital-Gains-Exemption

Structures designed to enable this outcome often use trusts when some of the individuals accessing the lifetime capital gains exemption are minors or not involved in the business associated with the property.