Taxes going up!! Again!!

[HappyJack]

So what are your thoughts on the changes to the Capital Gains tax?? Now if your Capital Gain [not income] is over $250,000 you have to report 2/3 rather than 1/2 as income on your taxes.

I imagine if you are selling a big chunk of stock or a business you'd feel some pain from this. Personally I still have unutilized capital losses from Black Monday, so it won't effect us at all.

It was always strange that capital gains [and a few other things] are taxed at lower rates than wages when all you've done is put some after tax wages aside in an investment. Why should investment income be superior to a working persons wages or interest income?

[britman101]

Increasing taxes in this country is a bad sign. Negative sign for investors, which will make Canada less attractive to them. However, people should not be surprised as we have a Liberal government who has incurred basically 9 years of consecutive deficits. This years deficit is about $ 39 billion dollars and as long as they are in power future deficits into the future. So as lenders get more leery about lending to Canada, the next best alternative to Trudeau and company is to tax your own people into the poor house. There is no hope on the horizon with this gang of financial cretins at the helm. Canada I am estimating is almost a trillion dollars in debt, with no sound financial plan in sight. Think of the interest debt that has to be paid on a yearly basis. It must be staggering. I pity future generations of Canadians. And the root of the problem stems from, "GO WOKE.......GO BROKE".

[CAC]

It is another increment in the level of taxation that Canadians face. The thing is when you tax the people who have the means to leave they will and all the investment they contribute will go with them. This will affect the entire economy. We had no capital gains prior to 1972 and were fine. So why is it that we keep paying more and more every year in taxes while we receive less and fewer services for those taxes? Time for a change, and not just a change in party in charge. If I were younger, I would be out of this country in a heart beat.

[Squire]

I was a little surprised that Bill Morneau criticized the capital gains tax increase. As former Liberal finance minister he suggested that all holding companies should pay the full boat of personal taxes on whatever their bank balance was at the time at whatever tax rate that amount would incur as an annual income for the individual. He backed off when it was explained to him that small businesses owners accumulate that balance over time and withdraw it as income at retirement not unlike RRSPs. He settled for capital gains taxes at 52% on passive income earned from investment of that balance.
There is anticipated to be a massive transfer of wealth from boomers to the next generation in the coming years. These higher capital gains taxes are just a slimy way of the government demanding a piece of that action today. An inheritance tax is too negative for the demographic the Liberals are targeting and this way they don’t have to wait for you to croak first.
If you are successful and saved for your retirement, you are under attack from the Liberals who in their desperation to look like they are 'helping' the next generation have become NDP light.
I can't fathom which young persons are buying the Liberals' claim to be looking out for them when their financial policies are leaving them with a legacy of multi-generational crushing national debt. Paying this down while maintaining social programs has to mean higher taxes for the foreseeable future.
Poilievre's most difficult task won't be to win the next election, it will be trying to win the following one after making the necessary changes to reverse the disastrous economic trend created by incompetent Liberal policies.

[tri777]

https://www.youtube.com/watch?v=U9q1EAyAx_4

[gab]

With the Trudeau budget there is less incentive to invest in Canada, start a new business, buy/build investment properties and rentals, open new mines, etc. It will further weaken the Canadian dollar and all Canadians will suffer as we have limited manufacturing and import most everything. Canada's credit rating will likely go down resulting in the federal government raising intetrest rates on its bonds, and thus, more tax dollars will go to servicing the ever increasing federal debt. Canada's economic performance is dismal compared to the other western democracies. But sock boy doesn't care about the working class - just like his father didn't. We and future generations will really be screwed if Justin is re-elected. Even if the Conservatives win the next election, it will take take many decades to pay-off the huge debt incurred by the Trudeau government. I am old and feel sorry for younger folks and future generations.

[HappyJack]

It kind of makes sense to have a capital gains write down for farmers/small businesses, but really John Doe that bought 1000 shares of IBM, and made $100,000 after commissions, why shouldn't all of that capital gain be taxed the same as wages? Could even be prorated, say if he held them for two full years that $50K is added to each of those 2 years taxes.

The guy that worked 16 hour days paving highways to make $100K shouldn't have to pay more income tax on that income than the investor that just bought something and sat on it, just doesn't seem equitable.

[Squire]

It kind of makes sense to have a capital gains write down for farmers/small businesses, but really John Doe that bought 1000 shares of IBM, and made $100,000 after commissions, why shouldn't all of that capital gain be taxed the same as wages? Could even be prorated, say if he held them for two full years that $50K is added to each of those 2 years taxes.

The guy that worked 16 hour days paving highways to make $100K shouldn't have to pay more income tax on that income than the investor that just bought something and sat on it, just doesn't seem equitable.

You’re missing a link; the investor that just ‘bought something and sat on it’ bought it with earnings, possibly from working 16 hr days paving highways, and was already taxed at the appropriate bracket(s) on those original earnings.

When investments are in holding companies, the earnings have already been taxed at corporate rates and when they are drawn down as personal income they are taxed at the bracket rates.

[Liebs138]

Even middle class real estate investors will get caught in this. Regular middle class guys that work a ton of overtime to make extra money that have invested in the real estate market. This gets added to you income at the end of the year meaning in high tax brackets. You make 160 a year. Now all that capital gains income is in the 40+% bracket when combining federal and provincial income tax. Its a total crock of sh*t. Investors and business' will flee this country like they did california. Canada is almost unrecognizable. Its a real shame only some people stood tall when they pushed mandatory vaccines for work, travel and restaurants. They know most canadians are pansies and push overs and wont stand up for f*ck all except maybe when the canucks crater in the playoffs. Trudya got until fall of 2025 and hes not even close to finished. Anyone who believes in more taxation is a moron. All your tax money is being laundered by prime minister zoolander and his crew of clowns!!! You are funding housing and welfare for illegals, open drug injection sites and free heroin while good hard working canadians who have paid into this system cant even get a doctor and you get told to leave your car keys at the door so the thieves dont have to come too far into your home. This country is done.

[elknut]

Well said Liebs138.......

[HappyJack]

You’re missing a link; the investor that just ‘bought something and sat on it’ bought it with earnings, possibly from working 16 hr days paving highways, and was already taxed at the appropriate bracket(s) on those original earnings.

When investments are in holding companies, the earnings have already been taxed at corporate rates and when they are drawn down as personal income they are taxed at the bracket rates.

Of course the money he invested was already taxed, when he sells those shares at a profit his original investment isn't taxed again, only the gains less expenses are.

And monies held in holding companies are taxed at corporate rates that is true, the stock/retained earnings~ profits can be trickled out tax free via the use of dividends prior to the sale. A sole shareholder could collect approx. $40,000 a year in dividends out of his company tax free.[assuming only income], he could also have his wife and 5 kids all as shareholders and take $40K a year each and they would pay zero income tax. They call that income sprinkling and when the liberals floated the idea about taxing that there was a real uproar.

[HappyJack]

Even middle class real estate investors will get caught in this. Regular middle class guys that work a ton of overtime to make extra money that have invested in the real estate market. This gets added to you income at the end of the year meaning in high tax brackets. You make 160 a year. Now all that capital gains income is in the 40+% bracket when combining federal and provincial income tax. Its a total crock of sh*t. Investors and business' will flee this country like they did california. Canada is almost unrecognizable. Its a real shame only some people stood tall when they pushed mandatory vaccines for work, travel and restaurants. They know most canadians are pansies and push overs and wont stand up for f*ck all except maybe when the canucks crater in the playoffs. Trudya got until fall of 2025 and hes not even close to finished. Anyone who believes in more taxation is a moron. All your tax money is being laundered by prime minister zoolander and his crew of clowns!!! You are funding housing and welfare for illegals, open drug injection sites and free heroin while good hard working canadians who have paid into this system cant even get a doctor and you get told to leave your car keys at the door so the thieves dont have to come too far into your home. This country is done.

Capital gains only get added to your income if you sell real estate at a profit. And if you are under $250,ooo a year there is no change you'd only have to claim half of your profits as income. I think a smart person would 't sell in years they are working all that OT and in a high tax bracket already? I think if people believe this way of claiming capital gains is FAIR AND EQUITABLE, then the guy working OT should only have to claim 50% of his earnings as income too. Level the playing field.

[Redthies]

I’m not paying taxes again until Turdhole is gone. I’d rather pay a penalty and have my tax money go to a government that will actually do something usefull with it.

[HappyJack]

I’m not paying taxes again until Turdhole is gone. I’d rather pay a penalty and have my tax money go to a government that will actually do something usefull with it.

You mean that you don't want to donate so the CBC can get grants for executive bonuses??

[Squire]

Of course the money he invested was already taxed, when he sells those shares at a profit his original investment isn't taxed again, only the gains less expenses are.

And monies held in holding companies are taxed at corporate rates that is true, the stock/retained earnings~ profits can be trickled out tax free via the use of dividends prior to the sale. A sole shareholder could collect approx. $40,000 a year in dividends out of his company tax free.[assuming only income], he could also have his wife and 5 kids all as shareholders and take $40K a year each and they would pay zero income tax. They call that income sprinkling and when the liberals floated the idea about taxing that there was a real uproar.

That real uproar was ignored and the Liberals eliminated income splitting for those under 65 years of age early in their mandate.
Dividends are categorized as either eligible or ineligible depending on whether corp qualified for the small business tax deduction or not. It just means eligible are taxed at a lower rate because corp paid more to start. There is a concept of tax equalization applied that ensures no matter how you draw income down from corp (dividends, management fees, salary) the total taxes are about the same.
No one pays a lot of income tax on earnings under $40K

[browningboy]

All the guys that whine about Trump never seem to care what Trudeau does? Keep whining about Trump but keep,silent about our mess…

[HappyJack]

That real uproar was ignored and the Liberals eliminated income splitting for those under 65 years of age early in their mandate.
Dividends are categorized as either eligible or ineligible depending on whether corp qualified for the small business tax deduction or not. It just means eligible are taxed at a lower rate because corp paid more to start. There is a concept of tax equalization applied that ensures no matter how you draw income down from corp (dividends, management fees, salary) the total taxes are about the same.
No one pays a lot of income tax on earnings under $40K

There shouldn't be income tax under $40K anyway, the governments collect enough with sales/gst/carbon/sugar and all the other taxes they have created. IMHO