If you lowered it to no exemption you’d be raising taxes on all groups. Yes you’d be raising it on a small amount of income but you couldn’t say that the tax increase only affects .13% of earners. You’d also be taxing the elderly which is generally bad before an election.
In the P90 and below salary category the value is very minimal with only 2.4% of income being earned through capital gains. But if you parsed the numbers by age I would bet you’d find lots of elderly couples pulling 20% of their income out of gains on 40k per year each incomes.
Now is this good fiscal policy? Probably not as taxing all people with gains more probably makes a lot of sense especially old people with gains. But that’s not politicaly palatable.
I agree with what you're saying. This is almost entirely a political move so that they can say very few people are affected. It's just really dumb to keep making tax policies based on political motivations. They've continued to do this (and Harper did too to a lesser degree) and it's going to continue to make taxes more complicated and budgets worse.
If they really wanted to make sure seniors or your average person weren't affect, the yearly exemption could be in the $20,000 to $50,000 range and it probably catches very few people.
I also think estates in the next few years could be caught by this, but otherwise they will adapt and people will trigger gains along the way to avoid big gains on death. The exception being people with more than one property who will absolutely be caught by this.
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I wonder if the cap gain increase will actually reduce listings of for sale properties.
I know a lot of people who had started to sell off investment properties because of high interest rates.
With rates expected to come down & the sales tax hit going up; why would you bring that inventory to sale now?
Keep it as a rental property longer (forever).
Good for rental supply; bad for home prices/supply.
Don’t worry you need to pay for your helicopter rides somehow
But having groups enforce and audit all the Covid benefits that were handed out will bring in revenue. Along with lots of others of areas where people cheat on taxes.
Don’t worry you need to pay for your helicopter rides somehow
But having groups enforce and audit all the Covid benefits that were handed out will bring in revenue. Along with lots of others of areas where people cheat on taxes.
Yeah, sorry, but I feel like you're analyzing the CRA in the abstract, whereas I deal with them every day.
Sure, they're doing a hard job, but they also made that job hard on themselves.
COVID and CERB was a debacle of monumental proportions, and I'm willing even to forgive most of that. That was a hard time for a lot of people and organizations were being asked to operate rather significantly outside of their areas of expertise.
But for CRA? I've dealt with them for too long. I get what you're saying. I do. Its just not going to change my mind. I've seen them turn a blind eye to millions of dollars and I've seen them literally hound one of my clients over $8.53.
They have created years of hell for me for what is essentially mafia-esque extortion.
It'll be a cold day in Hell before I give CRA any sympathy.
I wouldn't piss on them if they were on fire.
That is an organization that does very important work, on that we agree, they just do it very, very badly.
Thats one that needs to be burnt to the ground and the Earth salted and then re-built from scratch.
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For one, I’m not sure why the suggestion that public sector jobs are somehow lesser than private sector or self-employment jobs persists. Sorry if you think otherwise, but with everything equal, a public nurse or social worker adds more value to society than a self-employed accountant or an investor at some equity firm. The latter is basically a parasite.
Two, it’s a pretty easy tell based on the graph that jobs that offered more stability grew faster. Self-employed people having nothing to fall back on and private sector employers sacrificing their people during the pandemic did not help.
Three, I’m not really sure why we care at all for the opinions of said “investor” whose circle seems to consist of people who believe Canada isn’t “masculine” enough, cheer for worker exploitation in the name of profit, and want an economic revolution that leads to record-breaking unemployment. Like, for real, we care what these people have to say on the matter?
For one, I’m not sure why the suggestion that public sector jobs are somehow lesser than private sector or self-employment jobs persists. Sorry if you think otherwise, but with everything equal, a public nurse or social worker adds more value to society than a self-employed accountant or an investor at some equity firm. The latter is basically a parasite.
Two, it’s a pretty easy tell based on the graph that jobs that offered more stability grew faster. Self-employed people having nothing to fall back on and private sector employers sacrificing their people during the pandemic did not help.
Three, I’m not really sure why we care at all for the opinions of said “investor” whose circle seems to consist of people who believe Canada isn’t “masculine” enough, cheer for worker exploitation in the name of profit, and want an economic revolution that leads to record-breaking unemployment. Like, for real, we care what these people have to say on the matter?
Apology accepted. But everything is not equal.
Using Nurses and Social workers is a useless strawman, easily discarded.
Do you really think the enormous volume of additional public workers employed are important frontline staff doing the hard work?
If they were, would we be going through an epidemic shortage of Teachers and Nurses?
These people being employed are straight bloat.
Much like the broken 'Political Line' it is disingenuous to say 'Public vs. Private' work. Each has to stand upon its own merits.
To say a public worker is more or less valuable than a private one is a preposterous position. What kind of work? What kind of money? What kind of pension? How many to screw in a lightbulb?
It is not ceteris paribus ergo 'all is not equal,' each has to be evaluated upon its own merits and the downstream effects of which need to be considered.
We've hired a crapload of Public sector workers. Is your Hospital-going experience better? How about Policing? Tax collection?
So we've increased the numbers of people, but what are we receiving in return?
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I wonder if the cap gain increase will actually reduce listings of for sale properties.
I know a lot of people who had started to sell off investment properties because of high interest rates.
With rates expected to come down & the sales tax hit going up; why would you bring that inventory to sale now?
Keep it as a rental property longer (forever).
Good for rental supply; bad for home prices/supply.
I expect a panic style supply side influx followed by a reduction. What the government is effectively done is increased your exit costs on your investment and reduced the attractiveness of real estate holding as an investment. At least with other instruments such as stocks and funds you can control your cost base and come in under the $250K bar year-on-year.
Holding forever does not eliminate that issue as upon death you have the same tax. Most investors also don't want to hold forever.
What we may see is quicker flips to stay under that $250K.
It’s not a matter of one type of working being more valuable or admirable than the other. Public sector jobs are funded by taxation on private industry. You can’t have a strong public sector without a strong private sector - not for long, anyway. Increasing public spending through deficits rather than through growth in private industry stores up pain for the future.
If you want quality education, infrastructure, and health care, you should want a strong public sector.
If you want a strong public sector, you should want a strong private economy with high productivity and an attractive investment environment.
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I wonder why they chose 2014 as the zero point? hrmmm...
Spoiler!
Theres an even better graph showing public, private and self employed numbers from 1976 to now in the replies to the original tweet. Besically theyve been the same for the last 50 years
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Theres an even better graph showing public, private and self employed numbers from 1976 to now in the replies to the original tweet. Besically theyve been the same for the last 50 years
Musk's free speech utopia doesn't allow me to see replies without an account.
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The part I missed yesterday is that this capital gains move from 50% inclusion to 67% is for every dollar for corporations. That's going to be a significant factor for businesses.
For one, I’m not sure why the suggestion that public sector jobs are somehow lesser than private sector or self-employment jobs persists. Sorry if you think otherwise, but with everything equal, a public nurse or social worker adds more value to society than a self-employed accountant or an investor at some equity firm. The latter is basically a parasite.
It's not a matter or lesser or greater. Who is going to pay for the wages for the public sector job or do we just continue to borrow money and pay interest to do so? Who is going to grow the economy to pay for all these services that people want. I mean, why not have an economy with everybody with a public sector job?
If you're importing a million+ people every 9 months and your economy is heavily relying on public sector jobs, your citizens are likely not doing so well economically with poor productivity and your national balance sheet is also likely looking in pretty bad shape too.
The federal government is looking at forcing Canadian pensions to invest (more) in Canada. They look at the same statistics and are actively choosing not to invest here given the better opportunities elsewhere. I mean, you could but why would you want to given what you are seeing?
An analysis published by the Fraser Institute in 2022 broke down job-creation data from recent years to compare net job creation in the public and private sectors. That study found that nearly all net job creation from pre-pandemic levels had occurred in the public sector and that there had been minimal private sector job growth.
This bulletin updates and extends that analysis by examining job market developments at the provincial level to June 2023, comparing the rate of job creation in the public and private sectors in each province.
Net job growth in the public sector between February 2020 and June 2023 was 11.8 percent in the public sector and just 3.3 percent in the private sector (including self-employment).
In all ten provinces, the rate of job growth was faster in the public sector than in the private sector, including self-employment. In four provinces, private sector net job creation expressed in this way was negative.
The provinces vary widely in the extent of public and private sector job growth. Of the four largest provinces, British Columbia had the fastest rate of public sector job creation (22.6 percent) and the slowest rate of private sector job creation (0.3 percent), while Alberta had the lowest rate of government sector job growth (8.9 percent) and the fastest rate of private sector job growth (6.2 percent).
Public sector hiring is driving the labour market in Canada
In February, public-sector roles rose by 18,800 positions, while the private sector lost 16,400 jobs, Statistics Canada data showed. Over the past year, employment in the public sector has grown 4.7 per cent, versus 1.2 per cent in private industry.
“If you look at how the private sector’s trending, it’s sharply decelerating,” Beata Caranci, chief economist at Toronto-Dominion Bank
The federal public service has grown by 38 per cent since Prime Minister Justin Trudeau came to power in 2015, according to MEI, a Montreal-based think tank.
Using Nurses and Social workers is a useless strawman, easily discarded.
Do you really think the enormous volume of additional public workers employed are important frontline staff doing the hard work?
If they were, would we be going through an epidemic shortage of Teachers and Nurses?
These people being employed are straight bloat.
Much like the broken 'Political Line' it is disingenuous to say 'Public vs. Private' work. Each has to stand upon its own merits.
To say a public worker is more or less valuable than a private one is a preposterous position. What kind of work? What kind of money? What kind of pension? How many to screw in a lightbulb?
It is not ceteris paribus ergo 'all is not equal,' each has to be evaluated upon its own merits and the downstream effects of which need to be considered.
We've hired a crapload of Public sector workers. Is your Hospital-going experience better? How about Policing? Tax collection?
So we've increased the numbers of people, but what are we receiving in return?
