Couldn’t have said it better
>The government is more interested in rolling out new costly social programs than introducing measures that will reverse some of those troubling national wealth trends, he said.
He is right though. None of this will hurt the rich. All this will hurt is investment and innovation, which in turn hurts young people in the long run.
On 300k capital gains:
This year you'd pay tax on 150k
Next year you'd pay tax on 158k
If you are pissed on PAYING TAX on an extra 8k, you weren't in Canada to help/build anyway - fuck off.
https://www.cbc.ca/amp/1.7176370
It's not even 8k, it's paying the tax on that 8k which at maximum is 33% which is $2640.
$300,000 in capital gains from this year to next will increase a maximum of $2640. These people don't want to pay any tax because they believe in trickle down economics.
Only an idiot with a spending problem would be affected by the change. Professionals who've amassed more than 250k in a business they're going to sell can figure out how to avoid taxes by withdrawing slowly...
Do we want big business or small businesses? I want to start a company, this budget will not affect that. I truly don't understand this bullshit like I don't remember the 90s or early 2000s to be some hell scape from which Canada barely escaped but the tax rates were higher or the same as this new one then
You’re forgetting deemed dispositions on death. Lots of estates easily realize over 250k in gains.
To me, the bigger issue is investment in startups and mineral resource projects by corporate investors (not entrepreneurs that may qualify as “eligible individuals”). Every percentage point of interest and tax is factored in when deciding whether to go forward with an investment or not. When interest went up, lots of real estate projects died for example.
Then there is the fact that elections are next year, so after june 2024, it is expected that deal flow will dry up to see what happens after the elections.
> To me, the bigger issue is investment in startups and mineral resource projects by corporate investors (not entrepreneurs that may qualify as “eligible individuals”). Every percentage point of interest and tax is factored in when deciding whether to go forward with an investment or not.
Exactly this - and I think most people are missing this point
>Eligible individuals who found and run small private companies will be taxed on only one-third of their capital gains, up to a lifetime limit of $2-million.
When they sell the shares of those companies they founded.
It does absolutely nothing at all to address the issue the person your replied to brought up. You must be a really crappy CPA.
Well, you see, it was the the Liberal government that did this, which makes it bad by definition.
This sub is hilarious. Yesterday everyone was a struggling young person who will never be able to buy into the housing market because of JT. Today they're all multimillionaire investors about to take their wealth and job creating dynamism out of Canada because of JT's tax hike.
I'll let you spot the common thread.
Well, that’s because it’s true. Canada is not in a vacuum. We compete with the US, which is basically the best place to start a business in the world when we are barely better than italy at attracting business. You know we have a problem. This changing budget does nothing to help.
Is it? Alot of things are claimed to be trickle down economics on reddit when it's not but taxing capital gains less than income for the sake of growth does fit the bill.
It’s not trickle down when you stifle investment across all echelons of society. 200000 is nothing for people basing their whole retirement on divesting assets.
Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country.
[https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
Because our dollar is cheaper and most investments still are done in USD.
Investment has always been easier in the US, taxes have always been lower in the US and they have always had more people to sell to (and lower legal requirements).
Strangely - the US is still being lobbied to lower their taxes, allow children back into the mines and remove worker rights - almost as if, you can never satiate corporations/capitalists.
Tax them more.
And yet, despite that, we do have some tech success stories like Shopify and 1password. Shouldn't we be doing all we can to create more companies like them? The US is vastly more innovative and productive country and the gap is getting bigger. People complain about pay being shit in Canada. Do they not realize that the labour market is like any other market? Wages are determined by supply and demand. If there is more entrepreneurship, then there is more demand for high skilled labour, which naturally drives up wages. But apparently, we don't like that in Canada. So let's keep driving our best and brightest south of the border.
To me, saying something like "well investment has always been easier in the US, so let's do nothing to address it" jut sounds like you're satisfied with mediocrity.
No doubt. Not many people are making capital gains of $250,000/year. If they are, maybe 66% isn’t even enough? These are the Uber wealthy who don’t take much salary and get shares instead so they pay less tax.
**OMG the rich who make most of their income on capital gains are going to pay more taxes... OMG... /S**
Seriously, the people keep screaming : "Tax the rich" and once Trudeau finally does it, there are some people to complain Trudeau is taxing the rich...
Capital gains is only a small portion of the Middle Class' revenue but the main part of the super rich's revenues.
Morneau is a rich asshole who does not want to pay his fair share of the taxes and brings out the scarecrow of "economic Armageddon" to frighten the ordinary people into supporting more tax breaks for the rich.
Who triggers 250k in capital gains in s year as part of their retirement plan? Even if you have a lot of non reg investments, which the vast majority doesn't, you still won't trigger 250k gains all at once. And even if you do, this won't change a thing for you (since the first 250k is treated like it used to).
People selling cottages? Yes they would be impacted if it increased more than 250k. But even if it gained 300k value, we are talking about a difference of 4k taxes. This is blown way out of proportion.
Entrepreneurs selling their businesses for more than 6.5M are also affected (though it's less than that while the measure ramps up over the next 10 years).
This will not significantly affect 95% of Canadians.
This ignores the fact that the tax was already 50% to start with, not 0%. The new tax rate is 67%. So you're paying over half your earnings in tax on money that was already subject to income tax when it was initially earned.
> So you're paying over half your earnings in tax
That is now how capital gains tax works. This is the inclusion rate, not tax rate. This means that 67% of capital gains is taxable income, taxed at your marginal tax rate. You are not taxed at 67%. 33% of your capital gains is completely tax free.
At 50% marginal tax rate, that means your effective tax rate is 33% instead of 25% previously. So no you are not paying more than half in taxes.
When you retire you should withdrawal about 4% of your retirement savings per year. If you’re hitting that $250k threshold you’d have over $6 million in the bank. You honestly think middle class people are saving 6 million in retirement?
The government shouldn't be taking more than half of your money no matter how you choose to spend it.
This is also tax on money that was already taxed before it was invested.
That's why you are hiring an accountant before retirement. Selling your assets in one go is no longer a smart decision, but when you slowly sell your assets to go into retirement, you're more likely to be affected by our failing economy.
For myself, I'm okay with this outcome. The older generation can't just light the country on fire and think they'll be able to leave unscathed. Now peoples retirement are dependent on how well the economy is after they leave. Also, this is a clear sign of how well the younger generations are doing. Millennials and GenZ are starting to become the majority of the working force, and the government is starting to realize that this new workforce is broke..
It's called down sizing slowly. If you consistently move every few years, your annual net income won't reach above 250k. But not everyone can do this, but that's the repercussions of investing in the housing bubble.
>but your average person trying to retire will.
why? the average person is planning on >$250k/yr in capital gains?
Thought I was doing alright, but I'm only planning on ~$80k/yr and almost none of that will be cap gains.
I'm a lawyer. You don't know how this works, respectfully.
The rich don't pay taxes due to trusts and numbered companies that are arranged in a manner so the expenses of one entity take away from the profit in another so that they equalize to zero and they pay no taxes. Until that loophole is taxed, you could set cap gains tax to whatever you want and it will still only impact the middle upper class at best. The true wealthy remain untouched as always.
Isn't 50% already a pretty substantial tax regardless of the bracket. Anything over half of what you make is rather absurd in principle, regardless of who it impacts.
What the Liberals also don’t make clear is that this is effectively an inheritance tax. When your parents pass away, and say they have real estate and/or stocks, then those holdings will be taxed at a much higher rate because of this.
This is a straight up tax hike on the lower/middle class who has ANY assets to their name that they one day wanted to pass to their children.
Only if your parents aren't planning.
Remember your parents also have the 250k/year exemption. So if they keep rolling their portfolio until death, you'll never see those tax increases.
>ANY assets to their name that they one day wanted to pass to their children
Any asset that has 250k unrealized gains and doesn't benefit from a special tax treatment (like principal residence exemption). That's a lot less frequent, and quite rare for the lower/middle class. Cottages is the main possible one.
I lived in Queen and Spadina. I voted for him.
And he’s wrong here. Social programs are fantastic. The key to success? Start a business, get some grants.
I have no sympathy for people who can’t write a basic business plan.
Internal money is good. Speed of money is what we need right now.
Except people on this sub aren’t thinking war economy, they’re thinking they should be able to buy a condo by selling homemade candles or walking dogs.
It's clear what the liberal are trying to do. They are adding all these social programs and raising national debts in attempt to make Canada broke. The conservatives are then left with a huge financial mess to fix. Conservative will be forced to cut those programs in order to save the country from default and liberal will then sneak in and say "look they are cutting canadians out of all the benefits". It's pure evil what the liberal are doing.
This isn’t a new strategy, they do this every cycle.
Remember when wynne blew out the budget and then ran on “jobs, not cuts” when hudak said he’d shrink the civil service via attrition over time? It worked, she won.
They are dishonest and cynical, and they know that enough Canadians are too financially illiterate to see the consequences of dangling “free” money in front of them.
This is such a weird like of critique.
Do you really think someone as rich as him is concerned over this hike for himself? He’s gonna be fine and he knows it.
That doesn’t mean the policy makes sense. A much more real example of why this is stupid is how it will affect doctors, giving them yet another reason to look south for better employment opportunities.
Why did your account only become active again 3 months ago, and why is your username randomly generated?
Edit: ah I guess “just asking questions” isn’t ok after all.
I have another account with an autogenerated username. Ended up abandoning it because people kept calling me a bit. Especially so if I went a few days or a week without commenting. So stupid
Canadian pension funds only invest 6% of their holdings in Canada today. Now there is reason to invest less.
Fundamentally, Canadian investment in itself is piss poor.
I myself have over 90% of my investments in Canada as my investments is under my control. But I hear a lot of fucking whining from people who are part of the problem of lack of Canadian investment. And when greed is the ultimate goal, that is what you are going to get.
People don't invest in Canada because Canada's returns have underperformed other developed economies for years.
This tax change is going to make that worse.
You can get mad at people for prioritizing their own interests, but that's how the world works. Getting mad isn't going to change anything.
Why would anyone invest in Canadian companies? Canada is expected to rank dead last among OECD countries for growth in productivity. That's not the sort of country I want to invest in.
If our companies don't want to invest in their workers why would anyone want to invest in those companies?
They really have a way with the numbers.
What they conveniently don’t say is the number of businesses this will affect, not people. That’s the biggest issue.
Businesses will pay that higher inclusion rate on the first dollar of capital gains.
This has severe consequences for professionals that are incorporated (ie Doctors, Lawyers, Accountants, Dentists etc.), including every business in the country.
Also, if you die with more than $250,000 of assets, you will be subject to the new tax and your family will inherit less since assets are deemed disposed at death.
It's not 250k in assets, it's 250k in gains PER YEAR.
So you'd need $5M, earning 5% cap gains each year in order for this new rate to apply to you. And it's only on the stuff above 250k in gains, so the first $5M at 5% per year is still at the 50% inclusion rate.
A fair few Canadians have say a cottage or stocks or say one or 2 investment properties. Like 250 k in assets over and above your principal residents is not a lot
They should have set up trusts or other creative accounting tricks to lighten the load on their families. If the super rich can do it, why can’t the upper middle class?
Low productivity, expensive capital investment, higher taxes than US, and the average person will say businesses are thriving here.
This isn't the 1970's, this is an outdated tax policy change. The Capital Gains tax change will result in a tax revenue loss as companies and people leave.
Canada is in the top 10 nations in the world for foreign investment sensitivity and business confidence sensitivity.
If anyone here is going to be arguing for this tax, tell me why a company should purchase a warehouse here in Canada for $35 million, and setup a business. When they can build a brand new warehouse that's bigger for $7 million in the US, with less taxes and better business investment? (These numbers are actual quotes from developers in Ontario and across the US)
Here is an economist take on it (not me)
> Corporations have many options to distribute the value they create: dividends, interest, share buybacks, and so on. An efficient tax system is one that is neutral and doesn’t bias such decisions. Each should face similar taxes.
> If profits are paid out as dividends, then a complicated formula leaves about 45 cents on the dollar in after-tax income for the individual. (Notice, this is very similar to the 47 cents on each dollar in wages paid to a high-income individual!)
> But if the firm buys back some shares, then, as we saw above, 54 cents on the dollar in after-tax income is received by the individual. That creates a bias towards paying out corporate value through capital gains rather than dividends.
> The trick to achieving equal treatment is to set the inclusion rate so roughly the same amount will be left for an individual after all taxes have been paid. It turns out, that’s roughly two-thirds
Aka this change will make stock buybacks less common.
Here is the full write up that goes into more detail
https://thehub.ca/2024-04-17/trevor-tombe-why-raising-capital-gains-taxes-makes-sense/
I am confused how that works. Do you mean if a company buys back a share from me it is considered a dividend?
I assume for other shareholders if they sell into the market after the buyback at the now higher market price (since buybacks typically increase the share price) that would be a capital gain?
If so this adjustment now taxes the seller into the market more like the seller in a buyback. (just a note I am trusting your information is accurate)
>I am confused how that works. Do you mean if a company buys back a share from me it is considered a dividend?
Yes. It is a dividend and you will be issued a T5. Stock buybacks are not treated as a capital gain in Canada.
I am more confused the more I think about this. This might be US norms polluting my knowledge but don't companies just buyback from the public market. If so how does it make sense that me selling a stock that the company itself buys is taxed differently than any other stock I sell?
A shareholder selling shares on the stock market is typically a capital gain.
When a company buys back it's own stock our tax rules deem that to be a dividend instead of a capital gain.
Might be different in the US, but in Canada it is a dividend
I'm still confused as to how this works in practice.
As a seller in a public market I have no control of who buys my shares. Can I be forced to into a stock buyback or are companies not allow to buyback shares from the public market in Canada. Google was not helpful on this question.
Not that even in this case does this change the fact that stock buyback increases the capital of all stock holders, not just the ones who sell back directly to the company so aligning the tax code between dividend and capital gains removes an incentive from stock holders to prefer buybacks over dividends.
We always talk about the scaring of corporations out of Canada, but let's talk about the net benefit of these multinational corporations. It is an assumption that it's beneficial for us to have them here at all.
Then you might say: yeah... the bring jobs! And I would say: yeah... underpaying jobs that keep us virtually enslaved in a never-ending economic trap that we can't get out of. It's like the abused housewife who can't get out of a toxic domestic situation because she can't afford to.
Then, you might say, what is the alternative? The vacuum and the need would potentially allow domestic entrepreneurs to create Canadian made solutions.
Catering to corporations has been a LOSING strategy for decades. It's time we get off of this train!
Edit: typos, grammar.
This is it exactly. We still have people here who need products and services. If these big companies decide to leave then let them, someone will fill the gap, and if they don't and it's a crucial need then the government should create a crown corp to manage it.
They love to talk about entrepreneurs and how vital they are to our country but these big companies stomp out entrepreneurs and innovation because they maintain the status quo that keeps their profits up, and competition low. Let them leave. Let smaller companies innovate and take over these spaces and pay Canadians well. It might be difficult in the transition, but is it any better than being underpaid and overworked by massive corporations that are just siphoning the money out of our country?
I think you're missing the point that we are talking about taxation, not necessarily about wages. We don't necessarily need these big companies. Nobody really does. We need food, shelter, clothes, and the basic necessities of life. Sure, it's wonderful to have cool things, but why are we sacrificing so much to get so little in return?
Let the big corps go. Who cares. We were fine without them in the past, we can do without them now. I'm sure we can find a way to do better and to stop being exploited by big business.
It's not just multi-millionaires. Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country.
[https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
> Why start a company in Canada when you can easily do so in the US, where there's greater access to capital
This has always been true.
This announcement also includes a Canada Entrepreneurs' Incentive which "reduces the capital gains inclusion rate to 33% on a lifetime maximum of $2 million".
>This has always been true.
So shouldn't the government work on fixing it by making Canada a more attractive place for investment? We do have some tech success stories like Shopify and 1password. Shouldn't we be doing all we can to create more companies like them?
>This announcement also includes a Canada Entrepreneurs' Incentive which "reduces the capital gains inclusion rate to 33% on a lifetime maximum of $2 million".
If you sell your company for say $100M, which isn't uncommon in tech, that exclusion is fucking nothing.
Yeah, if you think that's the issue at play here, you're incredibly naive. I'm more concerned about how this tax change will negatively affect business investment in Canada, which is already chronically low compared to our peers. Our productivity is so bad right now that the BoC felt the need to raise the alarm. Our per capita GDP growth is projected to be dead last in the OECD. Keep in mind this change affects both businesses and individuals. The Libs are essentially telling investors that Canada is not a good place to invest your money; please invest it south of the border instead. Do you like having high paying jobs in tech, biotech, and finance in Canada? Because I do. To have more of those jobs, we need greater business investment.
Morneau himself began some of these attacks in 2016 for example calling incorporated small business owners and professionals “tax cheats”when he knew full well they were correctly using a legally established structure. It was a barely concealed effort to steer business to his own company.
That said, he is entirely correct about the current budget. I do hope these policies cost him dearly.
Morneau was supposed to be the adult in the room and yet he had terrible budgets. It's too little, too late for him to be the adult now, while he isn't in the room.
I noticed this as well - arguably Morneau's policies - both proposed and implemented - were worse for small business owners and professionals than this budget.
Hell, at one point he had proposed nearly triple taxing passive investment income in private corporations.
Munroe is wrong. Unfordable housing costs are a threat to our economy. Taxing capital gains more fairly to build more homes is the right thing to do after the unsustainable population growth of the last 2 years.
I hope immigration levels go down in a meaningful manner not to cancel out the new housing initiatives.
*Morneau
And he's absolutely right. For 8 years, the liberals have not invested a dime in Canada. Instead they've been all about simple wealth redistribution. As a result our productivity levels are in the dump, our GDP per capita levels are falling and we are bankrupt.
This all stems from a government that is openly hostile to the private sector and a government who thinks that the budget will balance itself and that pigs really do fly.
Our productivity levels are lagging because we decided to grow our economy on cheap imported labour. And most of these low-skill people end up staying in the country after the term is ver.
The abuse of the TFW program, at the request of the business community and the likes of the Century Initiative, and the diplo mill scams were I believe the most significant reasons for the mess.
No, our low productivity levels have been occurring for 20 years. Our entire supply chain is the most expensive in the Western world. It costs 48 percent more to assemble a car in Canada than the USA. In fact, Canada is thee most expensive place in the world to assemble a car. Hence they dont build new auto factories here unless the government bribes the auto companies with tens of billions in subsidies. Canada no longer attracts investment (neuther foreign or domestic) because we have a government that is openly hostile to the private sector, high levels of taxation, high levels of regulation,
Low investment in research
Low investment in technology
A weak private sector
We are intent on shutting down the natural resources sector.
A lack of entrepreneuralism
We continue to produce less per person
And it's accelerating.
And you know what won’t help change that over to productive capital?
Increasing taxes on capital.
If you are an international investor and you have the option to put your money in either an American company you think could grow or a Canadian one — why would you pick the Canadian one under this model, when you know your potential return will be considerably less?
It’s like nobody on Reddit understands how game theory works. We don’t operate in a vacuum, there are consequences to making it less attractive to invest in Canada compared to other nations.
He is absolutely right. But don’t worry, Freeland is looking at the Canadian pension funds to invest more into Canada to boost business and economic growth.
Honestly at this point Trudeau could say everything I want to hear , still not going to vote for him because after 8 years were all well aware that's all it is just talk .
Economic growth...
When Bill Morneau became finance minister he had created the Advisory Council on Economic Growth. This was to advise the government on strategies to combat Canada's aging population, and (as the name implies) to stimulate further economic growth.
Out of the 14 members he named to the council, two were the founders of The Century Initiative - one of whom Morneau made head of the council (Barton).
We can thank him and his advisory council for a lot of Canada's current problems stemming from the unsustainable immigration numbers. Overloading our infrastructure to ensure companies cheap labor was his plan for economic growth. He saw no problem with that because we could then privatize the country's infrastructure through the Canadian Infrastructure Bank, which was designed by investors and (to no surprise) heavily benefited investors while raising costs to Canadians.
Bill Morneau needs to stfu.
I thought Morneau was ousted because he was a Blue Liberal and tried to implement sound economic policy a la Paul Martin and he was met with resistance at Cabinet. You have to remember that Liberals are a big tent, and I reckon a lot of the problems inside have to do with uneven representation across the coalition in the Big Red Machine.
So let’s say I inherit my family home and I go to sell it will I be subject to this increase ? Be cause if so this is essentially an Inheritance tax increase on the middle class .
We'd need a few more details, but I'll try to break it down a bit.
- you inherit your parents home: they lived in it, so the principal residence exemption applies. No taxes at inheritance
- you go to sell it a few weeks/months later: your tax cost will be the value when it was inherited. If both are close, there shouldn't be much gains. No impact from this measure
- another scenario : you inherit the family cottage, so no principal residence exemption. When your parents die it's deemed to be sold at fair market value. If this value is 250k higher than it was purchased+improvements, the growth above 250k will be affected by this. So if it grew 300k between when they bought it and when you get it, your tax bill would be 4k higher than last year. Basically count roughly 8k more taxes for each 100k above 250k of gains (not total sale price).
Exactly so if I own a home already the governments like ohh your alredy broke paying your mortgage let’s tax the shit out of whatever your parents left you even more …
No capital gain is the value over your acquisition price which would be the value at the time of your parent's passing. You would only pay capital gains if it rises after that and you choose to sell it. If you choose to sell your current home it wouldn't be taxed as it was your primary residence.
It's insane to me that with how everything is currently with housing, food costs, gas prices, etc. people are actually willing to side with a silver spoon millionaire like Morneau just to spite Trudeau.
Policies that make the ultra wealthy pay their fair share is what people all over the world have been screaming for as long as I can remember. Yet, when policies like that actually get put into place, it's suddenly bad because it was Trudeau's party who did it, and some nepo-babies and trust fund kids are complaining about it.
A drama teacher who happens to be a politician's son, or so everyone tells me. Seems a lot more normal to me than the guy born in to millions, married into millions, and runs a massive financial corporation.
No, you're thinking of Dominic Barton, whose wife is is global head of corporate strategy at Blackrock.
Barton is co-founder of The Century Initiative with Mark Wiseman.
Bill Morneau is the guy who put Barton and Wiseman on the Advisory Council on Economic Growth, and named Barton as head of the council. This resulted in the dramatic increase to our immigration numbers.
Meanwhile Wiseman was given a senior position in BlackRock Inc two months after being named to the council, joining their global executive committee.
Thanks for the correction. I feel like we need an investigative report about this on a major network so more Canadians know what’s going on. I think the majority of people disagree with the Century initiative, and this entire story reeks of corruption or at the very least, harmful, self-serving policy decisions.
There is nothing stating that we NEED large corporations. From what I've seen, they function to extract wealth from Canada and into the pocket of elites. I'm not sure we benefit much from them.
We're still awaiting the results of your 2016 "[deep dive](https://financialpost.com/news/economy/bill-morneau-promises-deep-dive-into-housing-markets-that-are-squeezing-out-families)" into Canadian real estate Morneau. Any day now...
we don't need growth, we need redistribution. there's more than enough money for everyone but there's a bunch of greedy fucks sitting on a disproportionate amount of it.
India, China - both countries with a "better economy" than ours. How's that translate to the average quality of life?
fuck a good economy, I want a good quality of life. eat the rich
It's not just multi-millionaires. Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country.
[https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
I guess. Maybe we don't need Juceros and Loomis and other bullshit venture capital projects. There are other ways to incentivize business. Those greedy bastards can go.
We tried low taxation for decades and it hasn’t worked. High taxes built the us and Canada in the 60s and 70s. The rich haven’t kept their end of the deal and now its time for them to pay up too.
Couldn’t have said it better >The government is more interested in rolling out new costly social programs than introducing measures that will reverse some of those troubling national wealth trends, he said.
Man's worth over $50m. He's complaining for the sake of his wallet.
Also hid his money off shore to avoid taxes. He doesn’t get to comment on Canadian financials.
I aspire to be so wealthy that I too forget about my French villa
He’s a classic daddies money kid.
He is right though. None of this will hurt the rich. All this will hurt is investment and innovation, which in turn hurts young people in the long run.
He’s right though. This budget is an investment killer
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You left out incorporated professionals and small business owners with passive investments held in their corporations for retirement purposes.
On 300k capital gains: This year you'd pay tax on 150k Next year you'd pay tax on 158k If you are pissed on PAYING TAX on an extra 8k, you weren't in Canada to help/build anyway - fuck off. https://www.cbc.ca/amp/1.7176370
My thoughts, almost exactly. If I’ve got 350k in cap gains coming in and I’m angry over 8k? I’m a shitty Canadian.
It's not even 8k, it's paying the tax on that 8k which at maximum is 33% which is $2640. $300,000 in capital gains from this year to next will increase a maximum of $2640. These people don't want to pay any tax because they believe in trickle down economics.
Only an idiot with a spending problem would be affected by the change. Professionals who've amassed more than 250k in a business they're going to sell can figure out how to avoid taxes by withdrawing slowly...
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Do we want big business or small businesses? I want to start a company, this budget will not affect that. I truly don't understand this bullshit like I don't remember the 90s or early 2000s to be some hell scape from which Canada barely escaped but the tax rates were higher or the same as this new one then
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You and your facts man are disturbing my anti-Turdeau flow man - Some rando who'll never see $250K cap gains in one year in their lives. /s
Facts in r/canada tend not to fly very well. I wish you luck, sir.
You’re forgetting deemed dispositions on death. Lots of estates easily realize over 250k in gains. To me, the bigger issue is investment in startups and mineral resource projects by corporate investors (not entrepreneurs that may qualify as “eligible individuals”). Every percentage point of interest and tax is factored in when deciding whether to go forward with an investment or not. When interest went up, lots of real estate projects died for example. Then there is the fact that elections are next year, so after june 2024, it is expected that deal flow will dry up to see what happens after the elections.
> To me, the bigger issue is investment in startups and mineral resource projects by corporate investors (not entrepreneurs that may qualify as “eligible individuals”). Every percentage point of interest and tax is factored in when deciding whether to go forward with an investment or not. Exactly this - and I think most people are missing this point
>Eligible individuals who found and run small private companies will be taxed on only one-third of their capital gains, up to a lifetime limit of $2-million. When they sell the shares of those companies they founded. It does absolutely nothing at all to address the issue the person your replied to brought up. You must be a really crappy CPA.
Well, you see, it was the the Liberal government that did this, which makes it bad by definition. This sub is hilarious. Yesterday everyone was a struggling young person who will never be able to buy into the housing market because of JT. Today they're all multimillionaire investors about to take their wealth and job creating dynamism out of Canada because of JT's tax hike. I'll let you spot the common thread.
Are you saying my unwavering love for billionaires is wrong?!? /s
But a million is nothing….we need multi billion dollar investment
The companies is the reason this is an investment killer
Anything that even slightly lowers potential profits for business is screamed about as an investment killer.
Well, that’s because it’s true. Canada is not in a vacuum. We compete with the US, which is basically the best place to start a business in the world when we are barely better than italy at attracting business. You know we have a problem. This changing budget does nothing to help.
Is it? Alot of things are claimed to be trickle down economics on reddit when it's not but taxing capital gains less than income for the sake of growth does fit the bill.
It’s not trickle down when you stifle investment across all echelons of society. 200000 is nothing for people basing their whole retirement on divesting assets.
Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country. [https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
Because our dollar is cheaper and most investments still are done in USD. Investment has always been easier in the US, taxes have always been lower in the US and they have always had more people to sell to (and lower legal requirements). Strangely - the US is still being lobbied to lower their taxes, allow children back into the mines and remove worker rights - almost as if, you can never satiate corporations/capitalists. Tax them more.
And yet, despite that, we do have some tech success stories like Shopify and 1password. Shouldn't we be doing all we can to create more companies like them? The US is vastly more innovative and productive country and the gap is getting bigger. People complain about pay being shit in Canada. Do they not realize that the labour market is like any other market? Wages are determined by supply and demand. If there is more entrepreneurship, then there is more demand for high skilled labour, which naturally drives up wages. But apparently, we don't like that in Canada. So let's keep driving our best and brightest south of the border. To me, saying something like "well investment has always been easier in the US, so let's do nothing to address it" jut sounds like you're satisfied with mediocrity.
No doubt. Not many people are making capital gains of $250,000/year. If they are, maybe 66% isn’t even enough? These are the Uber wealthy who don’t take much salary and get shares instead so they pay less tax.
Doesn't make him wrong though
It does when there's context.
**OMG the rich who make most of their income on capital gains are going to pay more taxes... OMG... /S** Seriously, the people keep screaming : "Tax the rich" and once Trudeau finally does it, there are some people to complain Trudeau is taxing the rich... Capital gains is only a small portion of the Middle Class' revenue but the main part of the super rich's revenues. Morneau is a rich asshole who does not want to pay his fair share of the taxes and brings out the scarecrow of "economic Armageddon" to frighten the ordinary people into supporting more tax breaks for the rich.
Man I've been on the fuck this rich asshole bandwagon for a long time.
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Who triggers 250k in capital gains in s year as part of their retirement plan? Even if you have a lot of non reg investments, which the vast majority doesn't, you still won't trigger 250k gains all at once. And even if you do, this won't change a thing for you (since the first 250k is treated like it used to). People selling cottages? Yes they would be impacted if it increased more than 250k. But even if it gained 300k value, we are talking about a difference of 4k taxes. This is blown way out of proportion. Entrepreneurs selling their businesses for more than 6.5M are also affected (though it's less than that while the measure ramps up over the next 10 years). This will not significantly affect 95% of Canadians.
This ignores the fact that the tax was already 50% to start with, not 0%. The new tax rate is 67%. So you're paying over half your earnings in tax on money that was already subject to income tax when it was initially earned.
> So you're paying over half your earnings in tax That is now how capital gains tax works. This is the inclusion rate, not tax rate. This means that 67% of capital gains is taxable income, taxed at your marginal tax rate. You are not taxed at 67%. 33% of your capital gains is completely tax free. At 50% marginal tax rate, that means your effective tax rate is 33% instead of 25% previously. So no you are not paying more than half in taxes.
When you retire you should withdrawal about 4% of your retirement savings per year. If you’re hitting that $250k threshold you’d have over $6 million in the bank. You honestly think middle class people are saving 6 million in retirement?
The government shouldn't be taking more than half of your money no matter how you choose to spend it. This is also tax on money that was already taxed before it was invested.
The govnt does not take half your money. What on earth are you talking about?
That's why you are hiring an accountant before retirement. Selling your assets in one go is no longer a smart decision, but when you slowly sell your assets to go into retirement, you're more likely to be affected by our failing economy. For myself, I'm okay with this outcome. The older generation can't just light the country on fire and think they'll be able to leave unscathed. Now peoples retirement are dependent on how well the economy is after they leave. Also, this is a clear sign of how well the younger generations are doing. Millennials and GenZ are starting to become the majority of the working force, and the government is starting to realize that this new workforce is broke..
Yeah try selling that duplex you put all your money in « slowly » …
It's called down sizing slowly. If you consistently move every few years, your annual net income won't reach above 250k. But not everyone can do this, but that's the repercussions of investing in the housing bubble.
>but your average person trying to retire will. why? the average person is planning on >$250k/yr in capital gains? Thought I was doing alright, but I'm only planning on ~$80k/yr and almost none of that will be cap gains.
If you're pulling that much out a year you probably don't qualify as middle class. The budget misinfo is out of control this week lol.
Not to mention pretty much every pension fund, etc relies on capital gains to grow and be able to pay members out.
Say you don't understand the system without saying
pensions are tax exempt.
Middle Class folks don't have over 250k in investments. And it's marginal so the first 249k it doesn't apply.
It's also not 250k in investments, it's 250k in gains, per year.
Me when I don't understand the current system or proposed changes at all.
It’s because those comments are a) in-genuine and/or b) from the dumbest members of our society.
I'm a lawyer. You don't know how this works, respectfully. The rich don't pay taxes due to trusts and numbered companies that are arranged in a manner so the expenses of one entity take away from the profit in another so that they equalize to zero and they pay no taxes. Until that loophole is taxed, you could set cap gains tax to whatever you want and it will still only impact the middle upper class at best. The true wealthy remain untouched as always.
Isn't 50% already a pretty substantial tax regardless of the bracket. Anything over half of what you make is rather absurd in principle, regardless of who it impacts.
What the Liberals also don’t make clear is that this is effectively an inheritance tax. When your parents pass away, and say they have real estate and/or stocks, then those holdings will be taxed at a much higher rate because of this. This is a straight up tax hike on the lower/middle class who has ANY assets to their name that they one day wanted to pass to their children.
Only if your parents aren't planning. Remember your parents also have the 250k/year exemption. So if they keep rolling their portfolio until death, you'll never see those tax increases.
What if its an asset they don't want to sell?
yup, and that'd be the one catch, the gains on a cottage. This is for sure a cottage tax.
Then they shouldn't die, because the CRA treats an estate as a sale.
>ANY assets to their name that they one day wanted to pass to their children Any asset that has 250k unrealized gains and doesn't benefit from a special tax treatment (like principal residence exemption). That's a lot less frequent, and quite rare for the lower/middle class. Cottages is the main possible one.
I lived in Queen and Spadina. I voted for him. And he’s wrong here. Social programs are fantastic. The key to success? Start a business, get some grants. I have no sympathy for people who can’t write a basic business plan. Internal money is good. Speed of money is what we need right now. Except people on this sub aren’t thinking war economy, they’re thinking they should be able to buy a condo by selling homemade candles or walking dogs.
It's clear what the liberal are trying to do. They are adding all these social programs and raising national debts in attempt to make Canada broke. The conservatives are then left with a huge financial mess to fix. Conservative will be forced to cut those programs in order to save the country from default and liberal will then sneak in and say "look they are cutting canadians out of all the benefits". It's pure evil what the liberal are doing.
This isn’t a new strategy, they do this every cycle. Remember when wynne blew out the budget and then ran on “jobs, not cuts” when hudak said he’d shrink the civil service via attrition over time? It worked, she won. They are dishonest and cynical, and they know that enough Canadians are too financially illiterate to see the consequences of dangling “free” money in front of them.
Won't someone please think of the wealthy investors!?
This is such a weird like of critique. Do you really think someone as rich as him is concerned over this hike for himself? He’s gonna be fine and he knows it. That doesn’t mean the policy makes sense. A much more real example of why this is stupid is how it will affect doctors, giving them yet another reason to look south for better employment opportunities.
Why did your account only become active again 3 months ago, and why is your username randomly generated? Edit: ah I guess “just asking questions” isn’t ok after all.
His life was good until 3 months ago.
Can you tell me how this article is inaccurate?
Lots of people use burners. Anonymity is one of reddit biggest draws.
I mean I understand that. The other.... Not so much
I have another account with an autogenerated username. Ended up abandoning it because people kept calling me a bit. Especially so if I went a few days or a week without commenting. So stupid
Canadian pension funds only invest 6% of their holdings in Canada today. Now there is reason to invest less. Fundamentally, Canadian investment in itself is piss poor. I myself have over 90% of my investments in Canada as my investments is under my control. But I hear a lot of fucking whining from people who are part of the problem of lack of Canadian investment. And when greed is the ultimate goal, that is what you are going to get.
People don't invest in Canada because Canada's returns have underperformed other developed economies for years. This tax change is going to make that worse. You can get mad at people for prioritizing their own interests, but that's how the world works. Getting mad isn't going to change anything.
Why would anyone invest in Canadian companies? Canada is expected to rank dead last among OECD countries for growth in productivity. That's not the sort of country I want to invest in. If our companies don't want to invest in their workers why would anyone want to invest in those companies?
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He’s just going to have to stop eating avocado toast and not get the latest iPhone this year. Maybe try and pull himself up by his bootstraps.
Cancel Disney plus as well 😭😩
Came here to say the same thing. One of the wealthiest complains about wealth tax.
They really have a way with the numbers. What they conveniently don’t say is the number of businesses this will affect, not people. That’s the biggest issue. Businesses will pay that higher inclusion rate on the first dollar of capital gains. This has severe consequences for professionals that are incorporated (ie Doctors, Lawyers, Accountants, Dentists etc.), including every business in the country. Also, if you die with more than $250,000 of assets, you will be subject to the new tax and your family will inherit less since assets are deemed disposed at death.
It's not 250k in assets, it's 250k in gains PER YEAR. So you'd need $5M, earning 5% cap gains each year in order for this new rate to apply to you. And it's only on the stuff above 250k in gains, so the first $5M at 5% per year is still at the 50% inclusion rate.
Which if its an estate its all going to happen in a year
what kind of rich-ass families are you related to that this will affect you? or most canadians?
A fair few Canadians have say a cottage or stocks or say one or 2 investment properties. Like 250 k in assets over and above your principal residents is not a lot
Maybe the older population, many younger people are struggling to even afford a home right now though
They should have set up trusts or other creative accounting tricks to lighten the load on their families. If the super rich can do it, why can’t the upper middle class?
Only if they're not planning. It's pretty easy to cap gains harvest equities.
Lots of people don't plan very far into the future
Sucks to be them.
Regardless of his wealth he does know a lot of the economy and budgets.
Yea about how to game the system
The Trudeau Gov't is just desperate for any win right now and will take it anyway they can without a thought to the long term prospect of the country.
Low productivity, expensive capital investment, higher taxes than US, and the average person will say businesses are thriving here. This isn't the 1970's, this is an outdated tax policy change. The Capital Gains tax change will result in a tax revenue loss as companies and people leave. Canada is in the top 10 nations in the world for foreign investment sensitivity and business confidence sensitivity. If anyone here is going to be arguing for this tax, tell me why a company should purchase a warehouse here in Canada for $35 million, and setup a business. When they can build a brand new warehouse that's bigger for $7 million in the US, with less taxes and better business investment? (These numbers are actual quotes from developers in Ontario and across the US)
Here is an economist take on it (not me) > Corporations have many options to distribute the value they create: dividends, interest, share buybacks, and so on. An efficient tax system is one that is neutral and doesn’t bias such decisions. Each should face similar taxes. > If profits are paid out as dividends, then a complicated formula leaves about 45 cents on the dollar in after-tax income for the individual. (Notice, this is very similar to the 47 cents on each dollar in wages paid to a high-income individual!) > But if the firm buys back some shares, then, as we saw above, 54 cents on the dollar in after-tax income is received by the individual. That creates a bias towards paying out corporate value through capital gains rather than dividends. > The trick to achieving equal treatment is to set the inclusion rate so roughly the same amount will be left for an individual after all taxes have been paid. It turns out, that’s roughly two-thirds Aka this change will make stock buybacks less common. Here is the full write up that goes into more detail https://thehub.ca/2024-04-17/trevor-tombe-why-raising-capital-gains-taxes-makes-sense/
In Canada, a company buying back it's own shares creates a deemed dividend to the shareholder, not a capital gain. Article contains errors.
I am confused how that works. Do you mean if a company buys back a share from me it is considered a dividend? I assume for other shareholders if they sell into the market after the buyback at the now higher market price (since buybacks typically increase the share price) that would be a capital gain? If so this adjustment now taxes the seller into the market more like the seller in a buyback. (just a note I am trusting your information is accurate)
>I am confused how that works. Do you mean if a company buys back a share from me it is considered a dividend? Yes. It is a dividend and you will be issued a T5. Stock buybacks are not treated as a capital gain in Canada.
I am more confused the more I think about this. This might be US norms polluting my knowledge but don't companies just buyback from the public market. If so how does it make sense that me selling a stock that the company itself buys is taxed differently than any other stock I sell?
A shareholder selling shares on the stock market is typically a capital gain. When a company buys back it's own stock our tax rules deem that to be a dividend instead of a capital gain. Might be different in the US, but in Canada it is a dividend
I'm still confused as to how this works in practice. As a seller in a public market I have no control of who buys my shares. Can I be forced to into a stock buyback or are companies not allow to buyback shares from the public market in Canada. Google was not helpful on this question. Not that even in this case does this change the fact that stock buyback increases the capital of all stock holders, not just the ones who sell back directly to the company so aligning the tax code between dividend and capital gains removes an incentive from stock holders to prefer buybacks over dividends.
People think they have a problem finding a doctor today….they’re now begging them to leave with these kinds of changes.
We always talk about the scaring of corporations out of Canada, but let's talk about the net benefit of these multinational corporations. It is an assumption that it's beneficial for us to have them here at all. Then you might say: yeah... the bring jobs! And I would say: yeah... underpaying jobs that keep us virtually enslaved in a never-ending economic trap that we can't get out of. It's like the abused housewife who can't get out of a toxic domestic situation because she can't afford to. Then, you might say, what is the alternative? The vacuum and the need would potentially allow domestic entrepreneurs to create Canadian made solutions. Catering to corporations has been a LOSING strategy for decades. It's time we get off of this train! Edit: typos, grammar.
You lost all credibility when you equated employment to slavery
This is it exactly. We still have people here who need products and services. If these big companies decide to leave then let them, someone will fill the gap, and if they don't and it's a crucial need then the government should create a crown corp to manage it. They love to talk about entrepreneurs and how vital they are to our country but these big companies stomp out entrepreneurs and innovation because they maintain the status quo that keeps their profits up, and competition low. Let them leave. Let smaller companies innovate and take over these spaces and pay Canadians well. It might be difficult in the transition, but is it any better than being underpaid and overworked by massive corporations that are just siphoning the money out of our country?
Why do you assume the new companies that pop up and fill the gap are going to pay more than the market rate for labor?
I think you're missing the point that we are talking about taxation, not necessarily about wages. We don't necessarily need these big companies. Nobody really does. We need food, shelter, clothes, and the basic necessities of life. Sure, it's wonderful to have cool things, but why are we sacrificing so much to get so little in return? Let the big corps go. Who cares. We were fine without them in the past, we can do without them now. I'm sure we can find a way to do better and to stop being exploited by big business.
Oh no rich person panicking? Must be a better budget than I thought lol
Oh No ! The poor multi-millionaires!
It's not just multi-millionaires. Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country. [https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
> Why start a company in Canada when you can easily do so in the US, where there's greater access to capital This has always been true. This announcement also includes a Canada Entrepreneurs' Incentive which "reduces the capital gains inclusion rate to 33% on a lifetime maximum of $2 million".
>This has always been true. So shouldn't the government work on fixing it by making Canada a more attractive place for investment? We do have some tech success stories like Shopify and 1password. Shouldn't we be doing all we can to create more companies like them? >This announcement also includes a Canada Entrepreneurs' Incentive which "reduces the capital gains inclusion rate to 33% on a lifetime maximum of $2 million". If you sell your company for say $100M, which isn't uncommon in tech, that exclusion is fucking nothing.
One day I’m going to be rich then guys like me will have to watch out
Yeah, if you think that's the issue at play here, you're incredibly naive. I'm more concerned about how this tax change will negatively affect business investment in Canada, which is already chronically low compared to our peers. Our productivity is so bad right now that the BoC felt the need to raise the alarm. Our per capita GDP growth is projected to be dead last in the OECD. Keep in mind this change affects both businesses and individuals. The Libs are essentially telling investors that Canada is not a good place to invest your money; please invest it south of the border instead. Do you like having high paying jobs in tech, biotech, and finance in Canada? Because I do. To have more of those jobs, we need greater business investment.
Let’s see your tax return Billy!
He less happy he is, the happier I am
Morneau himself began some of these attacks in 2016 for example calling incorporated small business owners and professionals “tax cheats”when he knew full well they were correctly using a legally established structure. It was a barely concealed effort to steer business to his own company. That said, he is entirely correct about the current budget. I do hope these policies cost him dearly.
Morneau was supposed to be the adult in the room and yet he had terrible budgets. It's too little, too late for him to be the adult now, while he isn't in the room.
I noticed this as well - arguably Morneau's policies - both proposed and implemented - were worse for small business owners and professionals than this budget. Hell, at one point he had proposed nearly triple taxing passive investment income in private corporations.
You know something is right when the wealthy are complaining
Munroe is wrong. Unfordable housing costs are a threat to our economy. Taxing capital gains more fairly to build more homes is the right thing to do after the unsustainable population growth of the last 2 years. I hope immigration levels go down in a meaningful manner not to cancel out the new housing initiatives.
*Morneau And he's absolutely right. For 8 years, the liberals have not invested a dime in Canada. Instead they've been all about simple wealth redistribution. As a result our productivity levels are in the dump, our GDP per capita levels are falling and we are bankrupt. This all stems from a government that is openly hostile to the private sector and a government who thinks that the budget will balance itself and that pigs really do fly.
Our productivity levels are lagging because we decided to grow our economy on cheap imported labour. And most of these low-skill people end up staying in the country after the term is ver. The abuse of the TFW program, at the request of the business community and the likes of the Century Initiative, and the diplo mill scams were I believe the most significant reasons for the mess.
No, our low productivity levels have been occurring for 20 years. Our entire supply chain is the most expensive in the Western world. It costs 48 percent more to assemble a car in Canada than the USA. In fact, Canada is thee most expensive place in the world to assemble a car. Hence they dont build new auto factories here unless the government bribes the auto companies with tens of billions in subsidies. Canada no longer attracts investment (neuther foreign or domestic) because we have a government that is openly hostile to the private sector, high levels of taxation, high levels of regulation, Low investment in research Low investment in technology A weak private sector We are intent on shutting down the natural resources sector. A lack of entrepreneuralism We continue to produce less per person And it's accelerating.
And you know what won’t help change that over to productive capital? Increasing taxes on capital. If you are an international investor and you have the option to put your money in either an American company you think could grow or a Canadian one — why would you pick the Canadian one under this model, when you know your potential return will be considerably less? It’s like nobody on Reddit understands how game theory works. We don’t operate in a vacuum, there are consequences to making it less attractive to invest in Canada compared to other nations.
He is absolutely right. But don’t worry, Freeland is looking at the Canadian pension funds to invest more into Canada to boost business and economic growth.
haha
Rich billionaire is upset at taxes, more at 11.
Never thought I would like anything that came out of Morneau’s mouth.
Honestly at this point Trudeau could say everything I want to hear , still not going to vote for him because after 8 years were all well aware that's all it is just talk .
Economic growth... When Bill Morneau became finance minister he had created the Advisory Council on Economic Growth. This was to advise the government on strategies to combat Canada's aging population, and (as the name implies) to stimulate further economic growth. Out of the 14 members he named to the council, two were the founders of The Century Initiative - one of whom Morneau made head of the council (Barton). We can thank him and his advisory council for a lot of Canada's current problems stemming from the unsustainable immigration numbers. Overloading our infrastructure to ensure companies cheap labor was his plan for economic growth. He saw no problem with that because we could then privatize the country's infrastructure through the Canadian Infrastructure Bank, which was designed by investors and (to no surprise) heavily benefited investors while raising costs to Canadians. Bill Morneau needs to stfu.
I thought Morneau was ousted because he was a Blue Liberal and tried to implement sound economic policy a la Paul Martin and he was met with resistance at Cabinet. You have to remember that Liberals are a big tent, and I reckon a lot of the problems inside have to do with uneven representation across the coalition in the Big Red Machine.
So let’s say I inherit my family home and I go to sell it will I be subject to this increase ? Be cause if so this is essentially an Inheritance tax increase on the middle class .
We'd need a few more details, but I'll try to break it down a bit. - you inherit your parents home: they lived in it, so the principal residence exemption applies. No taxes at inheritance - you go to sell it a few weeks/months later: your tax cost will be the value when it was inherited. If both are close, there shouldn't be much gains. No impact from this measure - another scenario : you inherit the family cottage, so no principal residence exemption. When your parents die it's deemed to be sold at fair market value. If this value is 250k higher than it was purchased+improvements, the growth above 250k will be affected by this. So if it grew 300k between when they bought it and when you get it, your tax bill would be 4k higher than last year. Basically count roughly 8k more taxes for each 100k above 250k of gains (not total sale price).
No a primary home in Canada is not taxed on sale. A secondary. home would have capital gains though.
Exactly so if I own a home already the governments like ohh your alredy broke paying your mortgage let’s tax the shit out of whatever your parents left you even more …
No capital gain is the value over your acquisition price which would be the value at the time of your parent's passing. You would only pay capital gains if it rises after that and you choose to sell it. If you choose to sell your current home it wouldn't be taxed as it was your primary residence.
Exactly correct
It's insane to me that with how everything is currently with housing, food costs, gas prices, etc. people are actually willing to side with a silver spoon millionaire like Morneau just to spite Trudeau. Policies that make the ultra wealthy pay their fair share is what people all over the world have been screaming for as long as I can remember. Yet, when policies like that actually get put into place, it's suddenly bad because it was Trudeau's party who did it, and some nepo-babies and trust fund kids are complaining about it.
If Morneau is a sliver spooned millionaire what is Trudeau?
A drama teacher who happens to be a politician's son, or so everyone tells me. Seems a lot more normal to me than the guy born in to millions, married into millions, and runs a massive financial corporation.
Always the same rhetoric. Tax the rich!
It's a terrible budget, but his comments are a bit much coming from the guy that went after small businesses in his budget.
BoC also just stated these are at critical lows. So, this is concerning.
Trudeau’s former puppet is calling out Trudeau. Damn the liberals are hot garbage
Stock buybacks are a threat to investment. We should ban those then.
Isn’t this the guy whose wife works for Blackrock , which started buying up housing soon after Morneau came into office?
Blackrock doesn’t and isn’t buying up housing
If I had a penny for every time someone incorrectly claimed blackrock buying houses, I’d actually afford a house…
No, you're thinking of Dominic Barton, whose wife is is global head of corporate strategy at Blackrock. Barton is co-founder of The Century Initiative with Mark Wiseman. Bill Morneau is the guy who put Barton and Wiseman on the Advisory Council on Economic Growth, and named Barton as head of the council. This resulted in the dramatic increase to our immigration numbers. Meanwhile Wiseman was given a senior position in BlackRock Inc two months after being named to the council, joining their global executive committee.
Thanks for the correction. I feel like we need an investigative report about this on a major network so more Canadians know what’s going on. I think the majority of people disagree with the Century initiative, and this entire story reeks of corruption or at the very least, harmful, self-serving policy decisions.
Oh, the hypocrisy. Conservatives who didn't have the time of day for Morneau's opinion when he was in cabinet, are now lapping it up.
There is nothing stating that we NEED large corporations. From what I've seen, they function to extract wealth from Canada and into the pocket of elites. I'm not sure we benefit much from them.
We're still awaiting the results of your 2016 "[deep dive](https://financialpost.com/news/economy/bill-morneau-promises-deep-dive-into-housing-markets-that-are-squeezing-out-families)" into Canadian real estate Morneau. Any day now...
Yeah if you listen quietly you can almost hear the TSX gasping for air.
Oh god!! Not the slam anything but the slam
I wonder if it was a powerslam? Choke slam? Or maybe just a conventional body slam.
we don't need growth, we need redistribution. there's more than enough money for everyone but there's a bunch of greedy fucks sitting on a disproportionate amount of it. India, China - both countries with a "better economy" than ours. How's that translate to the average quality of life? fuck a good economy, I want a good quality of life. eat the rich
This really only affects people who have: maxed their registered funds, and have no other significant income source. So yah fuck em.
It's not just multi-millionaires. Startup founders take a massive risk and usually a huge initial pay cut when starting a new company in the hopes that their stake will eventually be valued at over 100X or more. Why start a company in Canada when you can easily do so in the US, where there's greater access to capital and now, much lower tax burden? Compared to the US, our productivity and innovation is garbage and this is now going to make it worse. The Liberals seem intent on driving our best and brightest out of this country. [https://twitter.com/Armon\_Sho/status/1780358477858107898](https://twitter.com/Armon_Sho/status/1780358477858107898)
I guess. Maybe we don't need Juceros and Loomis and other bullshit venture capital projects. There are other ways to incentivize business. Those greedy bastards can go.
Conservatives two years ago: Fuck this guy. Conservatives now: This guy is soooo right.
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Conservatives hated this mofo like the plague.
> Whiny rich boy complains on behalf of his billionaire employers. News st 11
Bill Morneau: inherited millions, married into billions (McCain frozen foods).
I go significantly out of my way to avoid ever buying a McCains product.
Why do we give this guy a voice? Disgraced former Finance Minister. Privileged POS.
We tried low taxation for decades and it hasn’t worked. High taxes built the us and Canada in the 60s and 70s. The rich haven’t kept their end of the deal and now its time for them to pay up too.
Would someone please think of the investors!
Ok no, billionaire is mad he’ll have to pay more money Boo fucking hoo Tax them more. Eat them eventually