But there is no social value to saving and investing.
I am sure all those union autoworkers make cars in open fields with their bare hands.
New Capital Gains Tax Is Life Savings Confiscation
- Thread starter MrPrezident
- Start date
I am sure all those union autoworkers make cars in open fields with their bare hands.
The people I sympathize with here are the professionals who set up professional corporations to provide for their retirement. They will be taxed at 67% from dollar 1 on any capital gains when they occur.
A month ago I needed some advice from a lawyer, and then some draft agreements to be drawn up regarding the issue. The advice was provided promptly, but no sign of the draft agreements, which were quite straight forward.
When I emailed her today asking about the agreements she said she had been absolutely swamped with people trying to crystalize their capital gains before June 25.
These crystallizations aren't simple stock market transactions. This lawyer is a partner at a well-respected law firm, bills 600/hour (almost as much as a high-end sp lol) and is the head of their Corporate Services Department in their Business Law Group. She deals with commercial and corporate law, so I can only imagine how important and complex these last minute capital gains transactions are.
A month ago I needed some advice from a lawyer, and then some draft agreements to be drawn up regarding the issue. The advice was provided promptly, but no sign of the draft agreements, which were quite straight forward.
When I emailed her today asking about the agreements she said she had been absolutely swamped with people trying to crystalize their capital gains before June 25.
These crystallizations aren't simple stock market transactions. This lawyer is a partner at a well-respected law firm, bills 600/hour (almost as much as a high-end sp lol) and is the head of their Corporate Services Department in their Business Law Group. She deals with commercial and corporate law, so I can only imagine how important and complex these last minute capital gains transactions are.
Your investment lawyer will be able to advise on your exact situation. However... it is not 67% on dollar 1. The first $250,000 in capital gains, an individual taxpayer would continue to pay tax on 50 per cent of the gain. For every dollar beyond $250,000, two-thirds of your gain above $250k would be taxable.
The CBC gives a good breakdown with an example using a capital gain of $300k: https://www.cbc.ca/news/politics/capital-gains-tax-budget-1.7176370
I am not stating an opinion on the tax increase. I am only trying to get correct information out there.
Unless I'm mistaken, corporations, including professional corporations such as those set up by doctors and other professional individuals, are not entitled to that "50% on the first $250,000 of capital gains in any one year". That is strictly for unincorporated individuals.
For corporations, including professional corporations, it will be 67% from dollar 1 of capital gains.
Yeah... You are right... I see that now on businesses it is dollar 1.
My Dentist has signed up as has over 10,000 Dental and Oral providers all over Canada. By the way your link is outdated!!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!!
Dental providers aren't smiling about reimbursement under federal plan
Some dentists and hygienists fear they won't be fairly paid for services under a new federal dental plan, and they worry it will jeopardize the success of the massive program.www.cp24.com
Over 2 million Senior Citizens have also , enrolled and now the latest is that over 1.2 Children and those with disability have also enrolled in the Dental program!!
The fact is that a huge chunk of the cost have been covered by this Dental Plan. The additional costs that vary among the various dentists will be paid by the patient.
Very similar to the private Insurance programs!!
https://www.ctvnews.ca/politics/with-10k-providers-offering-care-to-2m-seniors-health-minister-defends-dental-plan-1.6896549#:~:text=With%202M%20seniors%20signed%20up,Holland%20defends%20dental%20plan%20rollout&text=Canada's%20dental%20care%20plan%20is,providers%20enrolled%20to%20treat%20them.
This thread has morphed into 2 pathways because of what the Feds say they want to use the money for.
1. Your capital gains tax is immediate. It takes your money right now. It chops you like a guillotine blade.
If you made this profit in a year and a day, that is a tax.
But if your profit is the result of 30 years of owning a property or saving inside a personal services corporation and you are forced to pay at this high rate right now when you need to cash some out, it is financial decapitation. You must take into account the time value of money.
This is why long-term capital gains rates should either be indexed to subtract out the inflation or put on a reducing stair step of tax rates to reflect how long the investment was held.
In the US we even step up the cost basis at death for stocks. Parents can leave appreciated stock to children and the cost basis is stepped up to market price on the day the parent died. In that way the parents' life work and savings are not confiscated.
There are even reasonable federal and estate tax exemptions. This permits a middle class to develop so that each generation must not need to start from ground zero.
The real elites will always be permitted trusts and other devices to protect future generations, but the middle class needs very low long term cap gains rates and cost basis step ups at death to pass a little money to the kids.
2. As for the dentists, they may have created some of their own problems. I would suggest some investigations into price fixing in the dental profession could yield some interesting data. It would be worth taking a look. My own dental work has always been privately paid by me. I spend on dental work before I buy luxuries or travel. If I want to have teeth like Elvis, that is my preference. But why is it that all dentists seem to raise prices at the same time? You might need to drill down to see if there is any competition.
Otherwise, this could end up just like the government throwing money at housing and driving up higher prices and creating more scarcity. You must fix the problems.
Only a pinhead would try to connect the seizure of long-term housing profits with teeth and think that higher taxes will produce more of either one.
.
1. Your capital gains tax is immediate. It takes your money right now. It chops you like a guillotine blade.
If you made this profit in a year and a day, that is a tax.
But if your profit is the result of 30 years of owning a property or saving inside a personal services corporation and you are forced to pay at this high rate right now when you need to cash some out, it is financial decapitation. You must take into account the time value of money.
This is why long-term capital gains rates should either be indexed to subtract out the inflation or put on a reducing stair step of tax rates to reflect how long the investment was held.
In the US we even step up the cost basis at death for stocks. Parents can leave appreciated stock to children and the cost basis is stepped up to market price on the day the parent died. In that way the parents' life work and savings are not confiscated.
There are even reasonable federal and estate tax exemptions. This permits a middle class to develop so that each generation must not need to start from ground zero.
The real elites will always be permitted trusts and other devices to protect future generations, but the middle class needs very low long term cap gains rates and cost basis step ups at death to pass a little money to the kids.
2. As for the dentists, they may have created some of their own problems. I would suggest some investigations into price fixing in the dental profession could yield some interesting data. It would be worth taking a look. My own dental work has always been privately paid by me. I spend on dental work before I buy luxuries or travel. If I want to have teeth like Elvis, that is my preference. But why is it that all dentists seem to raise prices at the same time? You might need to drill down to see if there is any competition.
Otherwise, this could end up just like the government throwing money at housing and driving up higher prices and creating more scarcity. You must fix the problems.
Only a pinhead would try to connect the seizure of long-term housing profits with teeth and think that higher taxes will produce more of either one.
.
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Why investigate it, it's pretty much in the open
Dental Costs Explained - Ontario Dental Association
The best way to minimize your dental costs is to practice good oral hygiene.
www.oda.ca
Ontario dental fees may also be influenced by the ODA’s annual Suggested Fee Guide. The Guide lists every dental service that dentists may perform. It also outlines dental codes and suggested fees for each specific service. Both dentists and dental plan providers may use the Guide as a reference point to help inform service fees.
Dentists are not required to follow the Guide or any fee schedule. They set their own fees based on the factors influencing their individual practice. This means that your dentist’s fees may vary both above and below the Guide.
You just made my point about dental price fixing. What would happen to the grocery industry if they published a "suggested retail price code" for eggs, milk, bread, butter, chicken, fish, and beef that they all agreed upon and then updated it regularly to keep their profit margins intact?
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Sit down, you are not going to like this
Supply management systems for eggs, poultry and dairy
Learn about the agricultural commodities operating under the national supply management systems and how these systems are delegated their powers.
www.ontario.ca
To be fair, neither do I
like i said , PP will be the next PM and this tax will be gone
You really are buying the Far Right Conspiracy theories to desperately make this popular bill seem like a con!!
The Government have made it 100% clear as to the extent of the coverage based on the income of Canadians:
Canadian Dental Care Plan - What is covered - Canada.ca
Learn what preventative services, basic services, major services, and additional services are covered and for how much.
I saw my Dentist again recently, and she says this Trudeau Dental Plan is awful!! This is coming from an actual Dentist herself. No right wing conspiracy.....LMAOYou really are buying the Far Right Conspiracy theories to desperately make this popular bill seem like a con!!
The Government have made it 100% clear as to the extent of the coverage based on the income of Canadians:
Canadian Dental Care Plan - What is covered - Canada.ca
Learn what preventative services, basic services, major services, and additional services are covered and for how much.www.canada.ca
Why are you trying to post total lies. I have taken my 95 year old relative for Teeth Cleaning, Full Radial X-Ray, Gum Measurements and Checkup. This was a $490 cost.
We had to pay just $38 for the CDCP assessment of the costs that were instant.
mitchell just find a new dentist as she is clueless!!
My dentist says she and her staff have to spend a lot of her time arguing with patients about fees. A lot of my Dentist's patients thought the plan was free!! Holland even admitted that this Dental Plan wasn't communicated very well.
We called the Dentist in advance when we made an appointment to clarify the costs etc. They said that there is always a difference between what the Plans cover and what they charge.
This is true with even my Company's 100% coverage, where I need up paying the difference. Nothing new about it.
But the plan is much, much better than the seniors on minimum incomes have to pay the full cost and in my relative's case the $38 vs the $490.
Now even the link I posted when you scroll down to the "No Co-payment" explains it fully!! So what is your dentist bitching about?
Jane is 86 and lives in a retirement home. Her daughter helped her apply to the CDCP as soon as she was eligible. Jane has an adjusted family net income of $32,000. This means that she does not have a co-payment under the plan.
- Jane has an appointment to get her teeth cleaned
- Her provider charges $145 for 2 units of scaling
- The CDCP established fee for 2 units of scaling is $134
- The CDCP will pay Jane’s provider $134
- Jane must pay the remaining $11 to her provider
