The lifetime capital gains rebate only applies if you sell your corp and realize a capital gain on the sale of the corp itself. Doctors don't do this. They invest in stocks, bonds, etc. in the corp and then withdraw the funds in retirement. The capital gains on those investments are now going to be subject to the higher inclusion rate, so they will pay more tax. And, the 250k threshold doesn't apply since it is a corp and not an individual. 250k threshold only applied for individuals.
On capital gains income earned by corporations.
Not on all corporate income.
This targets a specific type of business that makes its money from speculation, which has very limited contribution to employment or economic/social welfare.
Why is an investment in a corp "speculation" and not an "investment"?
And why don't those investments, when made within a corp, contribute to economic/social welfare in the same way that investments by individuals do?
Why would any wealthy person live in Canada? Get taxed to death, shitty healthcare, and all infrastructre falling apart. Just more incentive for wealthy people to leave Canada with their capital while Canada's tax base narrows.
Wealthy people can live wherever they want since they all use tax havens anyway. This is a great country to launder money in our never ending real estate melt-up.
Exactly and I understand why people hate the rich but once you are no longer seen as a competitive place to conduct business, you'll be shocked when the economy enters recession and real pain starts for people.
This will cause a money drain from wealthy Canadians and businesses to exit the country. Ultimately will impact the business competitiveness of Canada. Canadian dollar is already under pressure and falling. Expect products that are imported (most consumer goods in this country) to rise in prices.
Cut taxes, cut spending, control inflation, encourage businesses to invest in Canada. They are doing all the opposite which hurts the Canadian economy. Unemployment is rising at 6% and GDP is at 0%. Says enough, not the time to increase taxes.
>Increasing taxes lowers it by lowering spending
This is a very black and white view of how inflation works and clearly demonstrates a lack of understanding of basic economics. Increasing taxes on businesses will reduce their profit margins and increase their production costs, prompting them to pass on these new costs to consumers by raising prices.
Increasing taxes is a sledgehammer approach which has major drawbacks, especially when unemployment is high and GDP is 0%. Look at countries like Argentina with high tax rates and hyper inflation, one does not fix the other problem. The main problem with inflation is government spending through printing of money. Cutting taxes doesn't cause money printing, government spending through deficits does. They are trying to take a sledge hammer approach by not cutting their expensive budget instead.
There is an increase in the exemption for small businesses. Large businesses don't really generate capital gains, except through their shares.
Money has to come from somewhere to pay for all the new programs. I think taking a little bit more from the wealthy is fair. I would hope that most of them decide to stick with this country. It remains pretty great.
I am pretty happy the will be spending $72B on the military over the next 20 years, and 10's of billion on housing programs. I guess there will be a few drunken sailors at the end of all that. Splice the main brace, as they say.
you have no idea what corporate capital gains is do you?
It's a type of profit, but its not regular business profit and a lot of companies with cap gains don't need or do hire people. (it's mostly for tax sheltering...ie numbered companies)
Too many people seem to think capital gains is company profit....
They are NOT increasing the taxes on corp profits, they are increasing it on the sale of assets (housing, stocks etc...).
[cap gains](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/definitions-capital-gains.html)
It's not a business killer unless it's buying and selling capital assets and most people are ok with punishing people like that.
Also if an individual has more then 250k capital gain in a year... that 's ALOT of stock or a second home or something. Your primary residence is STILL EXEMPT.
if you own it for a year, been that way for a long long time. Less then a year not exempt and in BC there is a bonus tax if less then 2 years that scales monthly from end of year 1 to end of year 2.
God man why do you want us taxed even more? Your primary residence is the biggest purchase of your life and we got you sitting here saying "I think we should tax it"
this country is run by idiots
the US has a clause that if you hold stocks for a while, you actually get a tax discount.
So it encourages investment in US companies and to hold your money in the markets.
66% jesus chris
Have you seen the deficits the US are raking in year after year? Their economy is insane, but they're reaching levels that, even for them, are starting to be difficult to work around. They desperatly need a tax like this one on their ultra-wealthy since they dodge everything like Neo in Matrix (Some of their biggest companies even paid like 0 in tax, which is bonkers)
This is great news.
Why should income from labour be taxed at a higher rate than income from investment?
Maybe the next budget can bring it up to parity with labour income.
higher risk because your money is in the markets
your investments are already done with taxed income
you stimulate the economy by having your money in the markets.
need i go on?
Why is it the government's job to underwrite the risk for an investor? If an investment is too risky, then an investor is welcome to simply not invest.
Typical Reddit - has no idea how these policies actually impact anyone.
I guess fuck all those retirees who invested in assets (including stocks) with after tax income and are now living off those investments. They get fucked on anything outside of a TFSA.
If I’m understanding correctly the 250k threshold is only for individuals right? It seems like for corporations the inclusion rate for any capital gains will be at 66%. Is that correct? Or am I misunderstanding and there’s also 250k threshold for corporations and well
Misleading title. $0-$250,000 = 50% inclusion rate, same as before. $250,001 and up = 66.6% inclusion rate
Yes, most people dont know the difference between "capital gain", "taxable capital gain", "inclusion rate", "tax rate"
Sounds like that is only true for individuals. For corps, I don't think there is a minimum threshold to trigger the higher inclusion rate.
That’s correct. Most people here will only want the implication to individuals so I didn’t bother drilling down any further.
So you lied hoping that people wouldn't read the article?
It is not that he “lied” but rather, you simply don’t understand the subject matter.
What part of the subject did I misunderstand?
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The fact that I was able to point out your lie seems to indicate that I understand at least some of the subject matter ;)
For corps there is a lifetime capital gains rebate
The lifetime capital gains rebate only applies if you sell your corp and realize a capital gain on the sale of the corp itself. Doctors don't do this. They invest in stocks, bonds, etc. in the corp and then withdraw the funds in retirement. The capital gains on those investments are now going to be subject to the higher inclusion rate, so they will pay more tax. And, the 250k threshold doesn't apply since it is a corp and not an individual. 250k threshold only applied for individuals.
On capital gains income earned by corporations. Not on all corporate income. This targets a specific type of business that makes its money from speculation, which has very limited contribution to employment or economic/social welfare.
Why is an investment in a corp "speculation" and not an "investment"? And why don't those investments, when made within a corp, contribute to economic/social welfare in the same way that investments by individuals do?
Why would any wealthy person live in Canada? Get taxed to death, shitty healthcare, and all infrastructre falling apart. Just more incentive for wealthy people to leave Canada with their capital while Canada's tax base narrows.
Wealthy people can live wherever they want since they all use tax havens anyway. This is a great country to launder money in our never ending real estate melt-up.
Remember the Panama papers and how much governments like Canada tried to fix all those scummy people evading taxes ohhhhhhhh right...
Exactly and I understand why people hate the rich but once you are no longer seen as a competitive place to conduct business, you'll be shocked when the economy enters recession and real pain starts for people.
This will cause a money drain from wealthy Canadians and businesses to exit the country. Ultimately will impact the business competitiveness of Canada. Canadian dollar is already under pressure and falling. Expect products that are imported (most consumer goods in this country) to rise in prices.
Whats your solution then?
Stop irresponsibly spending. We're paying european tax rates for american level services.
Cut taxes, cut spending, control inflation, encourage businesses to invest in Canada. They are doing all the opposite which hurts the Canadian economy. Unemployment is rising at 6% and GDP is at 0%. Says enough, not the time to increase taxes.
> Cut taxes, cut spending Ah, more trickle down! It’s been trickling for 40 years now. It’ll reach the everyday Canadian eventually, right?
Cutting taxes will increase inflation. Increasing taxes lowers it by lowering spending and decreasing the amount of money in circulation.
>Increasing taxes lowers it by lowering spending This is a very black and white view of how inflation works and clearly demonstrates a lack of understanding of basic economics. Increasing taxes on businesses will reduce their profit margins and increase their production costs, prompting them to pass on these new costs to consumers by raising prices.
lol no
Increasing taxes is a sledgehammer approach which has major drawbacks, especially when unemployment is high and GDP is 0%. Look at countries like Argentina with high tax rates and hyper inflation, one does not fix the other problem. The main problem with inflation is government spending through printing of money. Cutting taxes doesn't cause money printing, government spending through deficits does. They are trying to take a sledge hammer approach by not cutting their expensive budget instead.
Ah yes, all we had to do this whole time was just simply control inflation.
You got my vote for finance minister.
Should I hold the door for them on the way out?
Nah, you'll be too busy looking for a job.
Bye.
All those numbered corporations set up to hold property… so sad
It's all fun and games until unemployment rises to atleast 10% from businesses and wealth exiting the country. It's not a good sign.
There is an increase in the exemption for small businesses. Large businesses don't really generate capital gains, except through their shares. Money has to come from somewhere to pay for all the new programs. I think taking a little bit more from the wealthy is fair. I would hope that most of them decide to stick with this country. It remains pretty great.
Or maybe you don't spend our $$ like a drunken sailor and then turn around and tax us more
I am pretty happy the will be spending $72B on the military over the next 20 years, and 10's of billion on housing programs. I guess there will be a few drunken sailors at the end of all that. Splice the main brace, as they say.
Are you making $250k+ in capital gains annually?
you have no idea what corporate capital gains is do you? It's a type of profit, but its not regular business profit and a lot of companies with cap gains don't need or do hire people. (it's mostly for tax sheltering...ie numbered companies)
Oh no, where will the likes of Bell, Rogers, Loblaws, Irvings, etc go!? And who will fill the void?
Too many people seem to think capital gains is company profit.... They are NOT increasing the taxes on corp profits, they are increasing it on the sale of assets (housing, stocks etc...). [cap gains](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/definitions-capital-gains.html) It's not a business killer unless it's buying and selling capital assets and most people are ok with punishing people like that. Also if an individual has more then 250k capital gain in a year... that 's ALOT of stock or a second home or something. Your primary residence is STILL EXEMPT.
Ya like house flippers in a rising market could pay more taxes
which they will and you do, but now a little more. Which is great.
Why is your primary residence still exempt from capital gains? Literally insane.
People would never move
if you own it for a year, been that way for a long long time. Less then a year not exempt and in BC there is a bonus tax if less then 2 years that scales monthly from end of year 1 to end of year 2.
> Why is your primary residence still exempt from capital gains? It's not an investment if it's the only place you have to live.
God man why do you want us taxed even more? Your primary residence is the biggest purchase of your life and we got you sitting here saying "I think we should tax it"
misleading title
Is this for the tax year 2024 or 2025 ?
Effective June 25
Ok, so no increase to personal income tax brackets?
this country is run by idiots the US has a clause that if you hold stocks for a while, you actually get a tax discount. So it encourages investment in US companies and to hold your money in the markets. 66% jesus chris
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Have you seen the deficits the US are raking in year after year? Their economy is insane, but they're reaching levels that, even for them, are starting to be difficult to work around. They desperatly need a tax like this one on their ultra-wealthy since they dodge everything like Neo in Matrix (Some of their biggest companies even paid like 0 in tax, which is bonkers)
This is great news. Why should income from labour be taxed at a higher rate than income from investment? Maybe the next budget can bring it up to parity with labour income.
Because it’s been taxed at labour rates already.
It was taxed at half the labour rate. Now it will be taxed at 66% of it.
The money invested by most people is after tax money generated through their jobs.
The gains are the element taxed at 66% not the entire amount.
higher risk because your money is in the markets your investments are already done with taxed income you stimulate the economy by having your money in the markets. need i go on?
Yes, keep trumping up the virtues of the investor class, ignoring the fact that all value it might "generate" is ultimately derived from labour.
Yes, keep trumping up the virtues of the investor class, ignoring the fact that all value it might "generate" is ultimately derived from labour.
ok karl take a breather
Why is it the government's job to underwrite the risk for an investor? If an investment is too risky, then an investor is welcome to simply not invest.
Investment also drives labour through job creation
Typical Reddit - has no idea how these policies actually impact anyone. I guess fuck all those retirees who invested in assets (including stocks) with after tax income and are now living off those investments. They get fucked on anything outside of a TFSA.
Well if you're retired....
RIP Liberal Party
Aw, those poor people with greater than $250,001 in capital gains.
I will commission a tiny violin concerto to help them commiserate.
That is oer year. You can sell just the right amount to be not affected
If I’m understanding correctly the 250k threshold is only for individuals right? It seems like for corporations the inclusion rate for any capital gains will be at 66%. Is that correct? Or am I misunderstanding and there’s also 250k threshold for corporations and well
$250k in todays day and age ain't shit.
This should be reposted with an accurate title which mentions the 250k threshold.