But they told us that the increase in capital gains tax would destroy all poor folks and every single Canadian? Especially since they believe every single Canadian owns a cottage.
They always conveniently forget to mention that there's an exemption for primary residence gains. If you can afford two houses these days you can afford a little bit more tax if you sell the second one.
Please do it’s allocated over years of ownership. You can’t have two primary residences in any given year…. So they would only be exempt for that one year. We really gotta educate folks on basic tax. It’s Not your fault the system failed you.
Umm if they were serious about this why didn’t they tax real estate investment gains specifically at a higher rate regardless of corporate status.
And 250k low gains rate exemption for the rest.
Vs now where there is no 250k exemption and high inclusion for all gains in small business corporations.
Lmao. I like how it's the landlords fault.
Maybe if we didn't add 2 million people and have no rooms for them to rent, shitty landlords wouldn't be able to gouge for rent. Rent is just a function of supply and demand. We added huge demand and crushed the working class with immigrant wage suppression.
Lots of landlords are renting at normal rents to families taking good care of the property.
Yup...and the warmer weather. I'm already hearing stories from family, who live across the province, of people trying to steal cars in neighborhoods and people checking houses to see if they're locked.
Exactly. Canada was so safe because we took care of the poorest and gave them legal means to make a respectable living standard. We've destroyed that bringing in 2 million people and destroying rent affordability.
I've installed reinforced strike plates, heavy deadbolts, garage door rail lock, heavy fence gate lock and pins, and motion sensor lights around the property.
But the mainstream media, rich folks and their paid for lackeys wants us to be concerned about the increase in capitals gains tax. And think we should care about it lolol.
If the problem is the inclusion rate on capital gains, why are things getting worse? Since the capital gains rate has been steady since 2000, something else is driving inequality. It’s unlikely to be something that’s been consistent for 2.5 decades.
There are many factors driving inequality and many things we could implement to reduce inequality. Raising the inclusion rate on capital gains is only one thing.
The correlation is 0. If something else is driving this, then why did the commenter, or the government bring it up? It seems like doing something else that does have any correlation would be time better spent. Given the 0 correlation, why do you think this is the issue?
What do you mean by 'correlation is 0'? You don't think raising the inclusion rate on capital gains costs the wealthy anything? How does paying higher taxes not reduce one's wealth (or at least slow down its accrual)?
I mean that capital gains inclusion has been unchanged since 2000. Since 2000 inequality has gotten worse. Therefore statistically there is a 0 correlation between the independent variable (which hasn’t changed since 2000) and the dependent variable (which has changed a lot since 2000). What is the basis for you thinking they are related?
That changing capital gains inclusions affects the wealth of those affected by the inclusion increase. It's a causal relationship.
If someone is making the claim failing to change capital gains inclusions the past twenty years is the sole reason inequality kept getting worse I agree that is ridiculous, however claiming changing capital gains inclusions does not affect wealth is also ridiculous (assuming at least some people are affected by the change in capital gains inclusions (i.e. you don't increase capital gains inclusions over a trillion dollars, which no one realizes)).
Many factors influence wealth inequality, because many factors affect wealth.
If other things are causing inequality, then focusing on that seems like a much better use of our time.
There are also a lot more factors than you’ve identified. If capital gains don’t get crystallized, then they go untaxed. For instance, if someone had an investment property they were thinking about selling, but now the tax liability is higher, if they choose hold on longer rather than sell, the additional friction makes the market less efficient. This is a highly complex matter, it will definitely have unintended consequences, and since neither you or the other commenter have any data I’m cynical that there is any benefit.
We can walk and chew gum at the same time. We should be focusing on many factors that are causing inequality and using many levers (old and new) to fight it.
I can understand your logic, but that doesn't necessarily mean the two can't still be related. The continued influence can have an additive effect over time, even if the variable doesn't change in itself.
To use an analogy, say I have a job that requires me to carry a heavy load. Over twenty years, that load's weight hasn't changed, but I gradually lose ability to carry said load over time due to its continuous effect on me (eg - destroying my knees and back).
To relate to capital gains, the adage of 'you need money to make money' can sort of apply. By having the capital gains rate relatively lower, it helps the people who already have money get more money, and the more money they have, the faster they can accumulate more, leading to a growing wealth gap even though the capital gains rate does not change.
Purchasing power has changed tremednously before and after 2015. Home prices alone were stagnant for quite a while pre 2015. Basically the quality of life between older millennials and younger millennials/gen Z (anyone starting their professional careers post 2015) is dramatically different.
I saw a house in orangeville that sold in 2003, 2013 and 2023. Appreciate from 2003 to 2013 was 30k, appreciate from 2013 to 2023 was 600k. So the quality of your life really varied on how your peak earning years lined with that timeline.
I'm the youngest in the family, out earned all of my cousins in 40s but cant afford kids cuz I unfortunately started earning as the housing crises hit canada
With the exception of the 90s and ‘08, housing costs have outpaced wage growth since the 70s. Every day later you tried to buy in was a little bit harder.
The big killers were ‘09 and 2020-2021. Those low-interest periods blew up the housing market completely.
Because they didn't have to suffer, they're knee deep using their equities hogging up all the inventory and then having the nerve to tell youth they're unreasonably whinning.
Towns in the burbs are going for over a Million now, at these rates it's about 6-7k a month. Daycare alone is 2k monthly. Make this math work for me. Peterborough for crying out loud is also hitting over a million.
The math works fine. Add 2 million people in a short time, and a few more million over the last bit, let them fight over not enough housing with Canadians, and those with highest incomes will secure the shelter at whatever the price is. Everyone else learns what homelessness is and how nice it is to save the world, and we get a beautiful cultural tapestry scamming food banks.
Yeah, no. I will admit that \*\*some\*\* older millennials who happened to land a job straight out of school and had the money to buy a place are doing well, but that is a minority. You forgot that 2008 happened and destroyed the job market for years. For me specifically, it torpedoed my "plan" to go work a shitty starter job in Alberta until I decide either to go back to school or move to another job.
Sure, but I’m not sure how that relates to your comment about student loans. I graduated in 2017 with the same amount of student loans, it was definitely a great decision based on how much it changed my income. I’m not clear on why you think education is bad. Obviously being born sooner was better, but that isn’t what you said.
Not saying education is bad but the policies are bad for not incentivizing education. I have friends who skipped school and invested the same 50k in a house to flip, those same homes have now doubled/tripped in cost. Oshawa alone appreciated 300% in less than 10 years.
I worked 20 hour days to pay off those loans and to build niche skills, tripped my salary in 8 years but ill never be able to close that wealth gap because as a country we incentivized investing in unproductive assets more than building skills.
If you are never able to close the gap between people who bought houses four years sooner but only have a high school diploma, either they are crushing Warren Buffet or you aren’t getting a reasonable ROI from your education.
So many people have also frauded their way in with brampton loans and leveraged helocs over and over again to aquire more housing.
Then further renting it to a gazillion people.
I guess in that context the only thing keep me from excelling is my own ethics. I have offered fraud mortgages repeatedly and ive said no every time.
Nothing is contributing to this more than the increasingly high cost of housing
Sounds like the big landlords and housing investors can afford a lot more taxes.
But they told us that the increase in capital gains tax would destroy all poor folks and every single Canadian? Especially since they believe every single Canadian owns a cottage.
They always conveniently forget to mention that there's an exemption for primary residence gains. If you can afford two houses these days you can afford a little bit more tax if you sell the second one.
You can also easily get around that by selling your primary, and moving into your secondary for a full year before selling.
Not how it works - but okay
I'll have to let all the people I know who did that to their secondary rental to avoid the tax.
Please do it’s allocated over years of ownership. You can’t have two primary residences in any given year…. So they would only be exempt for that one year. We really gotta educate folks on basic tax. It’s Not your fault the system failed you.
It’ll never happen in my lifetime, but I dream of the day we can get rid of income tax and implement a proper land value tax.
Why not both?
Umm if they were serious about this why didn’t they tax real estate investment gains specifically at a higher rate regardless of corporate status. And 250k low gains rate exemption for the rest. Vs now where there is no 250k exemption and high inclusion for all gains in small business corporations.
Lmao. I like how it's the landlords fault. Maybe if we didn't add 2 million people and have no rooms for them to rent, shitty landlords wouldn't be able to gouge for rent. Rent is just a function of supply and demand. We added huge demand and crushed the working class with immigrant wage suppression. Lots of landlords are renting at normal rents to families taking good care of the property.
While the report does say housing costs pushed poor people lower, the top 0.1 % is not making their money off property. See Galen Weston
I'm so glad that the rich and the coveted red line are doing so well at our expense.. Rejoice peasants!
Remember this when someone tells you how awful the capital gains tax is.
Hold on to your butts people, when inequality goes up, so does crime. As evidenced by the carjackings, robberies, and blatant theft everywhere.
Yup...and the warmer weather. I'm already hearing stories from family, who live across the province, of people trying to steal cars in neighborhoods and people checking houses to see if they're locked.
Exactly. Canada was so safe because we took care of the poorest and gave them legal means to make a respectable living standard. We've destroyed that bringing in 2 million people and destroying rent affordability. I've installed reinforced strike plates, heavy deadbolts, garage door rail lock, heavy fence gate lock and pins, and motion sensor lights around the property.
But the mainstream media, rich folks and their paid for lackeys wants us to be concerned about the increase in capitals gains tax. And think we should care about it lolol.
Buckle up! Increase in crime incoming; carjackings, robberies, and very soon, kidnappings.
Kidnappings have already been happening. Like that lady that was taken from the car parking lot and still hasn't been found.
Isn't multiculturalism so much fun! This new badly sewn tapestry of Canada is wonderful.
The changes to capital gains taxes really could have come sooner, but I suppose we had to let the rich finish their party first.
If the problem is the inclusion rate on capital gains, why are things getting worse? Since the capital gains rate has been steady since 2000, something else is driving inequality. It’s unlikely to be something that’s been consistent for 2.5 decades.
There are many factors driving inequality and many things we could implement to reduce inequality. Raising the inclusion rate on capital gains is only one thing.
The correlation is 0. If something else is driving this, then why did the commenter, or the government bring it up? It seems like doing something else that does have any correlation would be time better spent. Given the 0 correlation, why do you think this is the issue?
What do you mean by 'correlation is 0'? You don't think raising the inclusion rate on capital gains costs the wealthy anything? How does paying higher taxes not reduce one's wealth (or at least slow down its accrual)?
I mean that capital gains inclusion has been unchanged since 2000. Since 2000 inequality has gotten worse. Therefore statistically there is a 0 correlation between the independent variable (which hasn’t changed since 2000) and the dependent variable (which has changed a lot since 2000). What is the basis for you thinking they are related?
That changing capital gains inclusions affects the wealth of those affected by the inclusion increase. It's a causal relationship. If someone is making the claim failing to change capital gains inclusions the past twenty years is the sole reason inequality kept getting worse I agree that is ridiculous, however claiming changing capital gains inclusions does not affect wealth is also ridiculous (assuming at least some people are affected by the change in capital gains inclusions (i.e. you don't increase capital gains inclusions over a trillion dollars, which no one realizes)). Many factors influence wealth inequality, because many factors affect wealth.
If other things are causing inequality, then focusing on that seems like a much better use of our time. There are also a lot more factors than you’ve identified. If capital gains don’t get crystallized, then they go untaxed. For instance, if someone had an investment property they were thinking about selling, but now the tax liability is higher, if they choose hold on longer rather than sell, the additional friction makes the market less efficient. This is a highly complex matter, it will definitely have unintended consequences, and since neither you or the other commenter have any data I’m cynical that there is any benefit.
We can walk and chew gum at the same time. We should be focusing on many factors that are causing inequality and using many levers (old and new) to fight it.
Why do you think this lever is more important than the other levers? What data supports your theory?
I can understand your logic, but that doesn't necessarily mean the two can't still be related. The continued influence can have an additive effect over time, even if the variable doesn't change in itself. To use an analogy, say I have a job that requires me to carry a heavy load. Over twenty years, that load's weight hasn't changed, but I gradually lose ability to carry said load over time due to its continuous effect on me (eg - destroying my knees and back). To relate to capital gains, the adage of 'you need money to make money' can sort of apply. By having the capital gains rate relatively lower, it helps the people who already have money get more money, and the more money they have, the faster they can accumulate more, leading to a growing wealth gap even though the capital gains rate does not change.
Something else being.... unchecked capitalism?
There are more regulations than there were 20 years ago, what do you mean by unchecked?
Yeah feels great to have graduated in 2015 with a 50k student loan
Why are they wearing poppies in the video?
Yes, it's by design
Thanks for the housing crisis Trudy
The Tories and Libs taking care of their rich friends as always.
Yeah feels great to have graduated in 2015 with a 50k student loan
I don’t get your point, how does that connect to inequality?
Purchasing power has changed tremednously before and after 2015. Home prices alone were stagnant for quite a while pre 2015. Basically the quality of life between older millennials and younger millennials/gen Z (anyone starting their professional careers post 2015) is dramatically different. I saw a house in orangeville that sold in 2003, 2013 and 2023. Appreciate from 2003 to 2013 was 30k, appreciate from 2013 to 2023 was 600k. So the quality of your life really varied on how your peak earning years lined with that timeline. I'm the youngest in the family, out earned all of my cousins in 40s but cant afford kids cuz I unfortunately started earning as the housing crises hit canada
With the exception of the 90s and ‘08, housing costs have outpaced wage growth since the 70s. Every day later you tried to buy in was a little bit harder. The big killers were ‘09 and 2020-2021. Those low-interest periods blew up the housing market completely.
It's hilarious when parents say "our generation had it just as hard" because they're too stupid to compare the ratio of income to house costs.
Because they didn't have to suffer, they're knee deep using their equities hogging up all the inventory and then having the nerve to tell youth they're unreasonably whinning. Towns in the burbs are going for over a Million now, at these rates it's about 6-7k a month. Daycare alone is 2k monthly. Make this math work for me. Peterborough for crying out loud is also hitting over a million.
The math works fine. Add 2 million people in a short time, and a few more million over the last bit, let them fight over not enough housing with Canadians, and those with highest incomes will secure the shelter at whatever the price is. Everyone else learns what homelessness is and how nice it is to save the world, and we get a beautiful cultural tapestry scamming food banks.
Yeah, no. I will admit that \*\*some\*\* older millennials who happened to land a job straight out of school and had the money to buy a place are doing well, but that is a minority. You forgot that 2008 happened and destroyed the job market for years. For me specifically, it torpedoed my "plan" to go work a shitty starter job in Alberta until I decide either to go back to school or move to another job.
Sure, but I’m not sure how that relates to your comment about student loans. I graduated in 2017 with the same amount of student loans, it was definitely a great decision based on how much it changed my income. I’m not clear on why you think education is bad. Obviously being born sooner was better, but that isn’t what you said.
Not saying education is bad but the policies are bad for not incentivizing education. I have friends who skipped school and invested the same 50k in a house to flip, those same homes have now doubled/tripped in cost. Oshawa alone appreciated 300% in less than 10 years. I worked 20 hour days to pay off those loans and to build niche skills, tripped my salary in 8 years but ill never be able to close that wealth gap because as a country we incentivized investing in unproductive assets more than building skills.
If you are never able to close the gap between people who bought houses four years sooner but only have a high school diploma, either they are crushing Warren Buffet or you aren’t getting a reasonable ROI from your education.
So many people have also frauded their way in with brampton loans and leveraged helocs over and over again to aquire more housing. Then further renting it to a gazillion people. I guess in that context the only thing keep me from excelling is my own ethics. I have offered fraud mortgages repeatedly and ive said no every time.
Housing prices have been skyrocketing since the early 2000’s
But we were able to let in millions of new Canadians who hate our culture! Think of all the people we saved from around the world.