Home Equity Tax

[Darts]

Just when you thought it was safe to buy a house. Will this be in addition to the "wealth tax"? Let's hope they never think of a tax on your kids.
CMHC-Backed Report Calls for Annual Surtax on Homes Valued at $1M+ - Mortgage Rates & Mortgage Broker News in Canada (canadianmortgagetrends.com)

 

[K Douglas]

I actually first heard about this back in early 2021. Taxing wealth is heinous and if they start doing this expect a mass exodus out of this country.

 

[Day2Day]

Just when you thought it was safe to buy a house. Will this be in addition to the "wealth tax"? Let's hope they never think of a tax on your kids.
CMHC-Backed Report Calls for Annual Surtax on Homes Valued at $1M+ - Mortgage Rates & Mortgage Broker News in Canada (canadianmortgagetrends.com)

Biggest problem is for those who bought their houses and have the value of house increase beyond their income. These folks will have a tougher time keeping their homes - the edlerly, and anyone with an income raising more slowly than their home value.

This is already the problem with property taxes, where tax is levied against an unrealized capital gain.

Sounds like an unfair tax grab grab - however, I must confess, I have not read the article...

 

[|2 /-\ | /|/]

They voted for this and now slowly they are starting to find out what this means.

 

[out4fun]

Somewhere along the line, the government will need to find ways to collect more tax - or spend less. I doubt that spending less has crossed anyone’s mind. Finding ways to add taxes on to the rich seems inevitable.

 

[oakvilleguy]

Homes valued at 1m+ pretty much targets anyone with a home in the GTA and GVA.

This makes for great politics and casts a much wider net on collecting taxes from the middle class as they form the majority of people who are home owners in this category. The rich and super rich don’t care because they can afford it and can move assets offshore. The working stiff trying to raise a family on two incomes and the retirees will get hit again.

These scheme are counter productive to society. They should look at cutting spending but we all know that’ll never happen.

 

[Darts]

Homes valued at 1m+ pretty much targets anyone with a home in the GTA and GVA.

I have a Portuguese neighbour who came to Canada with just the shirt on his back. Worked a construction job by day and was a watchman at a car dealership by night. He now owns 4 houses. Probably worth $4-5mm. Guess he is now consider rich and must be taxed accordingly, eh.

 

[saxon]

The Liberals won’t go for this as much as they would love to. When you start messing with peoples homes you’re looking to lose votes.

 

[oakvilleguy]

I have a Portuguese neighbour who came to Canada with just the shirt on his back. Worked a construction job by day and was a watchman at a car dealership by night. He now owns 4 houses. Probably worth $4-5mm. Guess he is now consider rich and must be taxed accordingly, eh.

This is what he gets for working his fingers to the bones. Bastard is now considered rich so it’s all his fault for the increase in housing prices and people can’t afford to buy. Fucking policy makers

 

[K Douglas]

I have a Portuguese neighbour who came to Canada with just the shirt on his back. Worked a construction job by day and was a watchman at a car dealership by night. He now owns 4 houses. Probably worth $4-5mm. Guess he is now consider rich and must be taxed accordingly, eh.

And the Portuguese were given the shit construction jobs. This guy busted his ass for years to make something of himself and now the government wants to penalize his hard work over and above the tax rates currently in place. Tyrannical.

 

[drstrangelove]

The bigger challenge is modifying how taxes are applied at the provincial and federal level, they are based on income rather than assets. I think people would react very negatively if this fundamental change in tax collection happened. There have been many proposals to do this, taxing expensive cars, boats, personal airplanes, etc. Now expensive houses. It will be very interesting to see which one is first out of the gate, but then the floodgate will be opened.

 

[Varoufakis]

The folks at the advocacy group Generation Squeeze should have their necks squeezed. Such a dumb idea.

 

[poker]

Is there any way this cools the market?

 

[Goodoer]

Doubtful when demand outstrips what is available in the market.

Condos take forever to build. While houses are faster, the urban sprawl and Greenbelt argument comes back... Cultural issues are creeping in as well as some people live in multi-generational houses whereas others do not. Lots of houses are 3,000sf or more. Should never have happened. Density was talked about 20+ years ago and our leaders did nothing.

 

[oakvilleguy]

Doubtful when demand outstrips what is available in the market.

Condos take forever to build. While houses are faster, the urban sprawl and Greenbelt argument comes back...

This is nothing more than another tax grab.
All the new immigrants projected to come to Canada need a place to live.
Young people want to get married and have a family and a home where their children can grow up.
Both of these are drivers of demand.
Instead of fixing the years long inefficient development approval process, they come up with these punitive ideas