Federal Budget 2016: $29B Deficit

[2Stonedbirds]

Originally Posted by Flash Walken

Yeah, it's a real pain when the RCMP busts me with cigarettes now and asks me where the tobacco was grown.

It's a real headache this days to be a smoker, I tells ya.

You're right. No one will bat an eye when your water and electricity consumption doubles.

You're home free, fill your boots.

[Locke]

Originally Posted by 2Stonedbirds

It should be private.

More jobs, more tax revenue, everyone wins.

It should be nationalized and be free to all citizens.

[Coach]

Originally Posted by 2Stonedbirds

It should be private.

More jobs, more tax revenue, everyone wins.

Agreed.

[chemgear]

Higher taxes, people "leave". No tax revenue for you!

http://calgaryherald.com/business/en...gary-to-london

Murray Edwards, one of Canada’s wealthiest people, has changed his residency from Calgary to London to avoid rising provincial and federal income taxes.

Taxes for high-income earners in Alberta increased dramatically over the past year with the top federal/provincial combined marginal rate rising from 40.25 per cent in 2015 to 48 per cent in 2016.

[Matata]

Originally Posted by 2Stonedbirds

You're right. No one will bat an eye when your water and electricity consumption doubles.

You're home free, fill your boots.

That's no where near a sufficient reason to get a warrant. Stamping out small time grow ops is damn near impossible now, I can't see it getting easier post legalization.

[red sky]

When can I use my health spending account to purchase some MJ?

[Looch City]

Originally Posted by chemgear

Higher taxes, people "leave". No tax revenue for you!

http://calgaryherald.com/business/en...gary-to-london

Murray Edwards, one of Canada’s wealthiest people, has changed his residency from Calgary to London to avoid rising provincial and federal income taxes.

Taxes for high-income earners in Alberta increased dramatically over the past year with the top federal/provincial combined marginal rate rising from 40.25 per cent in 2015 to 48 per cent in 2016.

He's just scrambling trying to find loopholes haha

[Flash Walken]

Originally Posted by 2Stonedbirds

You're right. No one will bat an eye when your water and electricity consumption doubles.

You're home free, fill your boots.

Just how many plants do you see the average personal grower growing? hundreds?

[Coach]

Originally Posted by Matata

That's no where near a sufficient reason to get a warrant. Stamping out small time grow ops is damn near impossible now, I can't see it getting easier post legalization.

It may not be easier, but the point of legalize is to disincentivize the criminal activity.

2stonedbirds' example of alcohol is a good one. Do people still make moonshine? Yes. But people making their own alcohol has greatly decreased since prohibition ended. And even the legal part of it (making your own beer/wine) is pretty much reduced to a hobby for those who have the care/time for it.

Our whole liquor industry in general is proof that people will pay more for convenience and product consistency, even if they could make their own.

[Locke]

Originally Posted by chemgear

Higher taxes, people "leave". No tax revenue for you!

http://calgaryherald.com/business/en...gary-to-london

Murray Edwards, one of Canada’s wealthiest people, has changed his residency from Calgary to London to avoid rising provincial and federal income taxes.

Taxes for high-income earners in Alberta increased dramatically over the past year with the top federal/provincial combined marginal rate rising from 40.25 per cent in 2015 to 48 per cent in 2016.

Of course. Because he can. So now instead of getting their 40.25% they get nothing.

It goes to the point I made in the Politics thread about the consequences of over-taxing a declining balance.

[2Stonedbirds]

Originally Posted by Matata

That's no where near a sufficient reason to get a warrant. Stamping out small time grow ops is damn near impossible now, I can't see it getting easier post legalization.

With increased tax revenue from legalization and the possibility of people continuing to grow, IE screwing the powers that be out of their bottom line I'd wager they can afford to invest in policing to monitor such habits.

If no snow on buddies roof after the first snow fall is sufficient to obtain a warrant, I doubt they will turn a blind eye to what essentially amounts to tax fraud.

[AltaGuy]

Originally Posted by Locke

Of course. Because he can. So now instead of getting their 40.25% they get nothing.

It goes to the point I made in the Politics thread about the consequences of over-taxing a declining balance.

That's just simple tax evasion (or planning, if you prefer). This is not an example of tax equilibrium, etc.

[IliketoPuck]

Tax evasion =/= tax optimization planning.

Paying a higher tax rate if you don't have to isn't very smart.

[Locke]

Originally Posted by AltaGuy

That's just simple tax evasion (or planning, if you prefer). This is not an example of tax equilibrium, etc.

Tax Evasion is illegal, Tax Avoidance is every citizen's right.

Obviously not all of us can just pack up and live in London, but know this: the marginal tax rates in England arent significantly lower than ours, but when you multiply that small percentage difference by his considerable income that is a LOT of dollars, or pounds sterling now.

The fact of the matter is that our current Government feels that their 'fair share' of Edwards' income is near enough to half.

So the Province of Alberta could have had 40.25% of his income or try and extort him for 8.25% more and risk it all. They risked it all. And they lost.

And its happening more and more. Ask anyone who works at an accounting firm how their year-end was in December? They probably spent most of it pumping money through clients out of this province.

Edwards is just big enough for us to single him out.

[Coach]

Why London? Why not go the whole 9 yards and head to Dubai?

[OMG!WTF!]

Trading living in the country/ foothills south of Calgary for London would not be worth whatever you save in taxes. He'll be back.

[mrkajz44]

Originally Posted by Locke

And its happening more and more. Ask anyone who works at an accounting firm how their year-end was in December? They probably spent most of it pumping money through clients out of this province.

Yup - we had a focused campaign on getting out to all clients and discuss the best option for their money (both personal and corporate) going forward. I'm not sure its a mass exodus of tax base as some are suggesting, but I'd hazard a guess that it might be enough that this tax rate increase will not actually increase tax revenues (i.e. high tax rate with a smaller tax rate = same amount of tax coming in as before).

One thing I continue to wait for with each budget is discussion regarding TFSAs. Each year, every person has the ability to shelter more and more investment income from tax. At some point, I'd have to think there will be a cap of TFSAs, because we are headed to a point where most people's savings could be sheltered from tax through an RRSP or TSFA. Still not one peep about it yet, but I'm thinking this has to come up sooner or later.

[OMG!WTF!]

There is the loss of actual tax dollars that we don't get from people who move away and then there is the spin off economics of people who move away and no longer spend here. I'm guessing that's equally as painful.

[Coach]

How much time does Edwards have to spend in England in order for his residency to be applied there?

[Locke]

Originally Posted by mrkajz44

Yup - we had a focused campaign on getting out to all clients and discuss the best option for their money (both personal and corporate) going forward. I'm not sure its a mass exodus of tax base as some are suggesting, but I'd hazard a guess that it might be enough that this tax rate increase will not actually increase tax revenues (i.e. high tax rate with a smaller tax rate = same amount of tax coming in as before).

One thing I continue to wait for with each budget is discussion regarding TFSAs. Each year, every person has the ability to shelter more and more investment income from tax. At some point, I'd have to think there will be a cap of TFSAs, because we are headed to a point where most people's savings could be sheltered from tax through an RRSP or TSFA. Still not one peep about it yet, but I'm thinking this has to come up sooner or later.

Yeah, absolutely on all points. All of my friends and colleagues at firms did the same. It was nuts trying to get money out at lower rates and if necessary out of Alberta entirely.

And I echo your sentiments on the Registered Funds, they're going to have to cap them at some point, its just a matter of wehere that point is.

And finally, again, I made a post in the Politics thread about raising tax rates against a declining balance to come up with the required numbers. It is incredibly naive and painfully stupid.