Quote:
Originally Posted by calgarygeologist
Which still brings up the question of what can be done to grow business in Canada and make investment worthwhile. I guess in my previous reply to GranteedEV I didn't mention that I disagree with his notion that the investment issue is at the grassroots level. I don't think Canadians have an issue with investing in the TSX but as you mention there are better opportunities in other markets. So it comes back to what policies are holding back Canadian growth and investment? I don't view adding investment regulations as a good solution to keeping money in Canada.
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Well, personally, I don't really like the concept of regulations on the market, but we're in a similar position to Europe right now where we just can't compete with China or USA in terms of growth. We're an export economy that is surrounded on three sides by oceans, and the last side is the USA
I don't really have an answer, but if we
were to introduce regulations on the market, my thought would be something along the lines of:
- bump up the tax on capital gains in non-regulated accounts that are outside of Canada. Give Canadians an exempt exit period to liquidate those investments. It would have to be a post-election thing though, the conservatives would fight this one tooth and nail during the election.
- meanwhile notch
down the current tax on capital gains on Canadian investments. Down from 50% to 33%?
It wouldn't really affect peoples' RRSPs and TFSAs, but could influence the larger investment market a little.
Beyond that, though, I think we're just kinda hooped without Canadians in general actively wanting to invest in our economy - buying local as much as possible. The Free Market is what it is, our top performers are companies like Constellation, Shopify, the banks, Enbridge, and Circle K, their top performers are global companies like Apple, Google and Nvidia. It's just a totally different tier of corporation we don't have.
Part of me hopes this trade war will influence investing patterns. If Vietnam can have an EV manufacturer, why exactly can't we?