New Capital Gains Tax Is Life Savings Confiscation

[maurice93]

You mean, "not yet"

Justin Trudeau and his lackey Christia Freeland are aiming to tax the appreciation in your savings, including your principal residence.

That's a lot of fear mongering for nothing.
You don't have to like the capital tax hike (that's fine), but it shouldn't lead to bad assertions either.

All they have done is increase the tax rate from 50% to 67% on annual income over $250,000. What they didn't do is
- Change anything for annual income below $250,000 on capital gains
- Kept the cap gain rate below 75% which it was once at.
- Didn't change the rate on short term capital gains (1 year or less) which is still very favourable compared to interest, dividends, or other short term income like employment. If anything that could be a real target.
Also they actually increased the small business exemption on cap gains from $1.02M to $1.25 Million.

It's quite a jump to then claim they are coming after our primary houses based on the somewhat limited changes they have done.

As for the taxing the "appreciation in your savings" as if its some new tax concept of Liberals.... when your RRSP increases in value via interest, cap gains, or dividends, that appreciation on that investment is taxed on withdrawal Has been taxed by every government the same way. When you earn interest on savings, or dividends on savings, it gets taxed, like it always has.

This current narrative by those against the cap gain increase, "They are coming after income that was already taxed" is a silly narrative as other investment / saving type incomes get taxed at even higher rates than capital gains, I'm fine with it not being at 100%, because inflation is part of the appreciation, but saying it should be 0% isn't really fair compared to other investments or saving income either.

 

[maurice93]

If a small business owner is selling their business for $3 million -- Under the previous system they would be paying about $327,000 in federal taxes. They would now be paying $385,000 in federal taxes. That extra $58,000 shouldn't be hurting anyone on retirement as people are claiming. You can argue its $58K too much, but again it shouldn't be impacting anyone's ability to live comfortably.

If it's $5 million on sale of your business, the extra federal tax is $167,000.

 

[DesRicardo]

The major issue is he's going to waste the money. The money will be given to his bloated corrupt government.

 

[Jubee]

So were the previous Conservative Government who had a higher income tax rate on the middle tax bracket, and either had higher or the same tax bracket rates for all income under $220,000, even greater thieves?

And before you go there, yes the carbon tax is flawed, but your point was about income taxes.

Flawed is putting it really, really, mildly.

 

[farquhar]

Justin Trudeau and his lackey Christia Freeland are aiming to tax the appreciation in your savings, including your principal residence.

The Principal Residence is the largest asset held by many Baby Boomers in their Households; and Baby Boomers consistently show up at the polls to vote.

Canadians for the most part are a docile bunch - successive Governments screw us and we just bend over and take it again, and again, and again.

The Capital Gains Exemption on a Principal Residence is such a Scared Cow, that if the Liberals were truly stupid enough to take that away, I firmly believe an angry mob would descend upon Ottawa and burn Parliament down at that point.

The $250,000 threshold for individuals before the Inclusion Rate of 2/3 applies does allow for some strategy; I can choose when to realize Capital Gains in my Non-Registered Brokerage Account and can structure transactions to stay under the threshold.

 

[maurice93]

The major issue is he's going to waste the money. The money will given to his bloated corrupt government.

This is the bigger concern for me with this government (and I lean more left than right on most stuff). The way they spend money is very concerning, be it through work force or other projects

What in essence becomes a 5.5% increase on significant capital gains doesn't bother me. A person paying $55,000 more taxes on a sale of a property that has grown in value by $1,000,000, much of it in recent years due to crazy property market. Or a business that already has a $1.3 million income exemption for cap gains. Not as big a concern.

 

[NotADcotor]

The Capital Gains Exemption on a Principal Residence is such a Scared Cow, that if the Liberals were truly stupid enough to take that away, I firmly believe an angry mob would descend upon Ottawa and burn Parliament down at that point.

Never mind the practical implications.
Do you cost it on when you bought the house doing a retroactive taxation or from when you implement it and if the latter how do you figure out the value of your home at the time, not as if they be public ally traded stocks. If the former, that would raise some eyebrows Rock style.
Then you get the issue of... you buy a house, you move to a similar neighborhood and buy another similar house, but nope because you lost a bunch on "capital gains" which were not really. Unlike stocks where you can expect in the long run to make gains over inflation, with homes it is well not. Maybe you get in and out at the right time or not, it's a bit hit or miss, being a part of the cost of living.
It would be a way of locking people into their homes and reducing mobility which isn't good.

I've had to deal with a bit of fuckery and of course nobody at the CRA knows anything, a home, someone dies, but the home was half owned by yours truly, nothing on their web page, you gotta fill out a fucking form even though there were no taxes, why CRA why.
If they ever bought in capital gains on my home, I'd be double fucked as in effect I got it for free.

 

[NotADcotor]

If you really want something to bitch about, taxation on interest. Not so much right at this moment but was it not too long ago where after tax your returns were negative because there is no inflation adjustment... and fuck nuts want to add a wealth tax to that?

 

[sprite09]

this is trending on twitter aka X...keyboard warriors are out ...my conclusion is that that many people complaining actually will never realize over 250k in capital gains anyway, lol...hell, people nowadays can't even afford a principal residence

the exemption limit has also been increased to 1.25 million from roughly 1 million for small businesses and qualified fisheries and farms properties ...and if these people are still crying over the increase, well, all i can say is theyll still be fine financially

ironically, the inclusion rate was increased to 75 percent by the Mulroney government (conservative) in 1990 and lowerd by the Chretien government (liberal) in 2000. Now it's between that , but only over the 250k threshold. but, the Liberal party today is obviously much more different than it was 2-3 decades ago (back then, they were fiscally conservative).

politically, this was a stupid movie ...the liberals should be avoiding anything associated with increasing taxation, including the rich ...but, I guess, they're are done regardless

Pierre pollievre will be our next prime minister ! easy bet if you wanna gamble , lol

 

[ValuedSupporter]

Canadians pay more than $1 billion a week just to service the debt. The $54.1 billion the government is projected to spend on debt interest is more than health transfers to the provinces ($52.1 billion).

If you guys think taxes are not going up BIG TIME and are going to stay there for a long time you're delusional. There's a reason why PP hasn't come out strong against the Capital Gains tax, he knows it's required. I wouldn't be surprised if he needs to increase it.

This Capital Gains increase should NOT be a surprise. There has been significant chatter and articles on in for a few years.

https://www.ctf.ca/

If Freeland was serious about her "Generational Fairness" bullshit, she would significantly cut back on all the significant subsidies that fucking boomers and soon Gen-X get. In addition, given only old people can afford a house, this includes removing the Principle Residence exemption. Suck it up snowflakes.

 

[Soccersweeper]

A candy bar was 5 cents US in the 1950s. It is now $1.39 US.

If your family made a small consumption sacrifice and bought a cottage at Muskoka in the 1920s and made some improvements over time much of the value of that cottage is still just the inflation.

Even small adjustments in what is taxed can be large amounts of value seized.

Some folks here should school up about the adventures of Joe Stalin and the Kulaks. The seizure of land, seeds, and produce from the Kulaks to create collective farms did not increase the food supply.

Measures to over-tax small owners of investment properties, second homes and personal services corporations will not by some magic act cause a large increase in affordable housing.

Less housing will in fact be the result. You can take from the Kulaks once, but the results will be eaten by the government.

We need to rekindle the belief that market capitalism can create new supply. You can only seize the Kulaks' farms, tools, and seed corn once.

I bet that muskoka kulak cottage doubled in price in the last 10 years which is far higher than inflation even after the last 5 years. This is how capitalism works, the government gets a share of the winners to pay for civilization's costs that the free riding market overlooks. That family enjoyed the cottage fir 100 years and only has to pay when they die and it gets sold. The kulak won, now we all win. This keeps capital in circulation and prevents the establishment of rent seeking dynasties

 

[Soccersweeper]

Canadians pay more than $1 billion a week just to service the debt. The $54.1 billion the government is projected to spend on debt interest is more than health transfers to the provinces ($52.1 billion).

If you guys think taxes are not going up BIG TIME and are going to stay there for a long time you're delusional. There's a reason why PP hasn't come out strong against the Capital Gains tax, he knows it's required. I wouldn't be surprised if he needs to increase it.

This Capital Gains increase should NOT be a surprise. There has been significant chatter and articles on in for a few years.

https://www.ctf.ca/

If Freeland was serious about her "Generational Fairness" bullshit, she would significantly cut back on all the significant subsidies that fucking boomers and soon Gen-X get. In addition, given only old people can afford a house, this includes removing the Principle Residence exemption. Suck it up snowflakes.

View attachment 333081

That's the cost of doing business . That's easier affordable in a multi trillion dollar economy. This is how nation finances have worked for centuries. We never paid the debt for WW2. We just keep rolling it over. Every country and business has debt. The relevant questions are whether we are getting a decent interest rate and whether what we're spending on is adequately growing the economy. If the economy grows faster than the debt, then the relative size of the debt to the economy declines. Canada has the highest credit rating in the world and one of the lowest debt to GDP ratios of any G7 country. This is what we want. Who is it you think has it over us?

 

[bver_hunter]

The major issue is he's going to waste the money. The money will given to his bloated corrupt government.

This is going to finance The Dental Care for the lower and middle income Canadians including Retired Seniors that are unfortunate not to have their Insurance covered by their Company.
What is "corrupt" about such help to these Canadians when the Science indicates that poor Dental care is one of the main causes of admissions into the hospitals that in the end impacts the costs to the healthcare system!!

 

[DesRicardo]

This is going to finance The Dental Care for the lower and middle income Canadians including Retired Seniors that are unfortunate not to have their Insurance covered by their Company.
What is "corrupt" about such help to these Canadians when the Science indicates that poor Dental care is one of the main causes of admissions into the hospitals that in the end impacts the costs the healthcare system!!

The Liberals themselves are corrupt. I don't like corrupt people taking our money.

Plus I have dental care. It's not a selling point to me.

 

[bver_hunter]

The Liberals themselves are corrupt. I don't like corrupt people taking our money.

Plus I have dental care. It's not a selling point to me.

I have Dental Care Coverage as well. But the Conservatives are no less corrupt.
The Liberals at least try to support the Middle and Lower incomes. Once again the Dental Care will mean lower costs to the Healthcare System in the longterm!!

 

[DesRicardo]

I have Dental Care Coverage as well. But the Conservatives are no less corrupt.
The Liberals at least try to support the Middle and Lower incomes. Once again the Dental Care will mean lower costs to the Healthcare System in the longterm!!

More like support their bloated government.

 

[DesRicardo]

This is the bigger concern for me with this government (and I lean more left than right on most stuff). The way they spend money is very concerning, be it through work force or other projects.

This was a weak attempt to start class warfare for popularity. I'm just glad most people have woken up.

Trudeau is like a Gambler that thinks he can gamble his way out of debt.

 

[wigglee]

What a bunch of whiners. What is wrong with the rich paying a bit more? I'll just relax and enjoy my principal residence exemption and my tax free savings account (invested in the stock market)

 

[K Douglas]

I have a client who's wife passed away a couple years ago. For years she dabbled in the stock market buying and holding stocks mostly techs and banks. She bought in for Meta at $45 its currently 10 times that value. The cost base of the portfolio is about $280,000 CDN. She reinvested all the dividends she received in purchasing more shares. The current market value of the portfolio as of last week was just under $1,000,000. That's a $720,000 unrealized capital gain. If he doesn't sell it off he could be looking at tens of thousands more in capital gains taxes should he pass away before Polievre and the Conservatives come to power in 2025 and reverse the policy. He's in his mid 80's so there's a real chance of that happening. I've advised him to sell off all the gains and if he wants to reinvest the net proceeds in the same portfolio of stocks that's his prerogative. He has a daughter and three grandchildren who would be the beneficiaries of 50% of his Estate. The other 50% goes to charity.

For reference his wife worked for the government for 27 years as an administrative assistant at various levels. He was a mechanical engineer. They lived pretty frugally in a 3 bedroom small detached house in Mississauga. Drove practical vehicles like Dodge Caravans, Honda Civics and Ford Escorts. They did very well saving for their retirement which they enjoyed by taking vacations all across Canada and the US RV'ing and camping. Bottom line is they are not rich 1%'ers like the Liberals are trying to spin as being affected by this change.

 

[mitchell76]

I have Dental Care Coverage as well. But the Conservatives are no less corrupt.
The Liberals at least try to support the Middle and Lower incomes. Once again the Dental Care will mean lower costs to the Healthcare System in the longterm!!

Yes, but a lot of Dentists (including my own), aren't going to participate in Justin's dental plan. Justin's dental plan, doesn't pay the Dentists enough money!!

Toronto, Canada and Global Breaking News – CP24

Most recent News News business news stories and video from CP24

www.cp24.com

https://www.cbc.ca/news/politics/dental-plan-mark-holland-1.7176565