Federal Politics 2015 Thread

[Street Pharmacist]

Originally Posted by Shazam

The only tax savings you get with a RRSP is not paying taxes on dividends and cap gains.

Once you withdraw money you pay tax on it. Since everybody here agrees that everybody will be paying more tax in the future, you will end up paying more then than now.

How will you pay more tax on retirement than while working????

[Shazam]

Originally Posted by Street Pharmacist

How will you pay more tax on retirement than while working????

Because tax rates will be higher. The only party remotely interested in keep personal rates low are the Cons, and according to everybody here they're going to get their asses kicked next election.

So if you're putting $5K into your RRSP right now, and you get back say 15% of that back, and you go hey great! But then when you're withdrawing that same $5K when you're old and senile, and the gov't takes 17% of it, then you realize hey what the hell where's my toast.

[Street Pharmacist]

Originally Posted by Shazam

Because tax rates will be higher. The only party remotely interested in keep personal rates low are the Cons, and according to everybody here they're going to get their asses kicked next election.

So if you're putting $5K into your RRSP right now, and you get back say 15% of that back, and you go hey great! But then when you're withdrawing that same $5K when you're old and senile, and the gov't takes 17% of it, then you realize hey what the hell where's my toast.

Except marginal tax rate will be far, lower at retirement than when you're working (unless you pony up a lot for retirement). Include the fact that not paying taxes up front allows you to invest that difference and get a return on that money before paying taxes at the end.

[rubecube]

Originally Posted by Shazam

The only party remotely interested in keep personal rates low are the Cons, and according to everybody here they're going to get their asses kicked next election.

Who is saying this exactly? All the polls right now are pointing to a Conservative minority, with the slight chance of a majority.

[Shazam]

Originally Posted by Street Pharmacist

Except marginal tax rate will be far, lower at retirement than when you're working (unless you pony up a lot for retirement). Include the fact that not paying taxes up front allows you to invest that difference and get a return on that money before paying taxes at the end.

Well yeah, if you're rich now and you expect to make a lot less in retirement.

But most people are middle-class shlubs and therefore this typically doesn't hold true - they never made it to the top marginal tax rate, so they'll always stay in whatever rate they're in now.

Also you have to start withdrawing by 71, the Cons made it less onerous, but I can see the other parties changing that legislation back.

[Shazam]

Originally Posted by rubecube

Who is saying this exactly? All the polls right now are pointing to a Conservative minority, with the slight chance of a majority.

Oh great four more years of psychonet and senator clay davis whining.

[Street Pharmacist]

Originally Posted by Shazam

Well yeah, if you're rich now and you expect to make a lot less in retirement.

But most people are middle-class shlubs and therefore this typically doesn't hold true - they never made it to the top marginal tax rate, so they'll always stay in whatever rate they're in now.

Also you have to start withdrawing by 71, the Cons made it less onerous, but I can see the other parties changing that legislation back.

Even middle class shlubs will be in a lower tax bracket at retirement.

[Shazam]

Originally Posted by Street Pharmacist

Even middle class shlubs will be in a lower tax bracket at retirement.

Well you add in OAS, CPP + whatever retirement savings and $40K/yr isn't unrealistic. Compare if they made $50K/yr while working.

[Senator Clay Davis]

Originally Posted by Shazam

Oh great four more years of psychonet and senator clay davis whining.

At least you have the Provincial thread to whine in for the next four years.

[Shazam]

Originally Posted by Senator Clay Davis

At least you have the Provincial thread to whine in for the next four years.

Actually I was thinking of seriously running in the next election if the NDP screw up. Hell even if they don't I will seriously consider running because I want my riding to not have a PC rep.

And at the very least we can whine together!

[Senator Clay Davis]

Originally Posted by Shazam

Actually I was thinking of seriously running in the next election if the NDP screw up. Hell even if they don't I will seriously consider running because I want my riding to not have a PC rep.

And at the very least we can whine together!

You just gotta be patient and just jump in at the last chance and go with the likely winner. Sure you might join a party you don't like or share nothing in common with, but the pay is nice and isn't that what really matters?

[Shazam]

Originally Posted by Senator Clay Davis

You just gotta be patient and just jump in at the last chance and go with the likely winner. Sure you might join a party you don't like or share nothing in common with, but the pay is nice and isn't that what really matters?

I will take a massive pay cut by being an MLA. I will try to be on some committees to make more.

The PCs will be gone. WR aren't really my shtick. There is very little to differentiate the NDP, Alberta Party and the Liberals.

Also I'm sure many of the NDP candidates were just warm bodies, unless you actually think Drever's views and attitudes actually represent the NDP's.

Also I would have to be approved by the party's riding committee, that takes time, you don't just show up "at the last chance".

If it makes you feel better since you're such a politically correct boring white guy, I'm a minority.

[PsYcNeT]

Originally Posted by Shazam

Oh great four more years of psychonet and senator clay davis whining.

I love you too snookums.

[Shazam]

Originally Posted by PsYcNeT

I love you too snookums.

Fat white guys aren't really my type, but if you want to trade pics I'm game.

[MarchHare]

Originally Posted by Shazam

Also I would have to be approved by the party's riding committee, that takes time, you don't just show up "at the last chance".

Actually, in the case of several newly-elected NDP MLAs, they literally did just show up at the last chance. The party wanted to run a candidate in every riding, most of which they assumed they couldn't win, so multiple people volunteered to be the sacrificial lamb when nobody else stepped forward at the nomination meeting. Then the province got swept up in the orange wave and some of those candidates who were only nominated by acclimation after the election had already been called are now part of the government.

[PsYcNeT]

Originally Posted by Shazam

Fat white guys aren't really my type, but if you want to trade pics I'm game.

Rude.

[Slava]

Originally Posted by Shazam

The only tax savings you get with a RRSP is not paying taxes on dividends and cap gains.

Once you withdraw money you pay tax on it. Since everybody here agrees that everybody will be paying more tax in the future, you will end up paying more then than now.

I hate to move away from the near-sexting going on here, but I didn't get a chance to respond until now. You're correct of course, but not entirely. One factor is that you are deferring taxes not eliminating them, but in conjunction with that, the best time to pay taxes is later. Does that mean a higher tax rate when you retire? Maybe. Not definitely one way or the other.

There are also those pension plans that I mentioned, which are kind of a big deal. And then the opportunity to defer those taxes today in the event of a severance package, which again is a big deal.

I love the TFSA, and for younger people I do think it should be the basis for how they save and invest for their future. But that being said there are some advantages in the RRSP as well. I wouldn't say it's as cut and dried to stay with one only and ignore the other. It could work for you, but you just can't paint it all with the same brush.

[Nehkara]

Wow!

Really a three-horse race.

New Ipsos/Global poll shows the race at:

CPC 31%
LPC 31%
NDP 30%

Source

[ernie]

Last to stumble loses as they aren't able to correct the problem?

[RedHot25]

I've also heard that you have to be careful with lpc numbers because they are so skewed in the maritimes that it distorts their overall # somewhat.