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Old 08-20-2024, 10:04 PM   #13458
powderjunkie
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Quote:
Originally Posted by chedder View Post
Don't forget, it also has to be a capital gain on real estate that isn't your principal residence. So cabin, rental property etc.

Totally agree, if you have a $1 million taxable capital gain, you are wealthy.
This can't be repeated enough. I'm sure there are some fringe cases, but nearly everyone with investment property(s) to be affected by this almost certainly owns a nice primary residence that has appreciated massively.


Quote:
Originally Posted by Winsor_Pilates View Post
They are people with average incomes, the gain is not average.
You're smart enough to know the difference.

The original post is talking about "annual income earners over $250,000"; these people aren't that.

A lot of people in markets like Vancouver or Toronto fall into this, as it's not hard to have $250,000+ gains if you've held a property for 10+ years.
The market have escalated substantially enough to make those average people, abnormally large gains.

If you think that makes them very fortunate and they should be subject to the increased tax as the new wealthy, I guess that's a fair position.
But why pretend the tax isn't targeting these people? Why pretend people with AVERAGE INCOMES aren't part of this tax target?
My HHI is way above average, but after 5 years of full earnings (and significant debt incurred to achieve that HHI) the notion of an investment feels laughably out of reach (which is fine).

So our annual tax bill is quite a bit higher than these AVERAGE INCOME folks, but we certainly aren't generating the same kind of wealth, because timing.

People often talk about how a 'wealth tax' would be a lot better than than our income tax scheme, because super wealthy people can have shockingly low "incomes". This is an excellent remedy in that direction.
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