Canadian Federal Politics Thread v5

[CliffFletcher]

Originally Posted by GGG

But that isnt the correct way to approach the climate change debate on the political spectrum.

That one group denys its existence doesn’t change what a right wing policy is. Thats the whole problem conservatives are no longer conservatives. If they were conservatives they would support conservative policies to deal with problems. The Carbon Tax and Globalism regardless of their current level of support are pure Chicago school economics.

Taxing externalities is straight out of Friedman.

The political spectrum is very different than it was 30 years ago. The Chicago school of economics is irrelevant to today’s populists.

Call the people on the populist right whatever you want. But they make up a political constituency whose favoured approach to climate change is to impose zero changes or sacrifices. Politicians who cater to that constituency will shape their policies accordingly.

[Fuzz]

Originally Posted by Ashasx

I agree that it's likely not going to benefit most Canadians in the idea of earning more earnings on their TFSA, but the thing I like the most about it is encouraging further investment in Canadian companies.

Yes, that part of it is good, although I wonder if it would make much difference to someone investing wisely and is globally diversified? They'd just have their Canadian holdings in that account, and use the other ones for foreign investments. This is one of those academic things you'd only see the true outcomes of years down the road to see if investments shifted to be more Canadian overall. I suspect they wouldn't.

[Ashasx]

Originally Posted by Fuzz

Yes, that part of it is good, although I wonder if it would make much difference to someone investing wisely and is globally diversified? They'd just have their Canadian holdings in that account, and use the other ones for foreign investments. This is one of those academic things you'd only see the true outcomes of years down the road to see if investments shifted to be more Canadian overall. I suspect they wouldn't.

I guess there's only one way to find out (when the Liberals replicate the policy).

[GGG]

Originally Posted by Ashasx

https://ca.news.yahoo.com/poilievre-...135228943.html

This is a legitimately good policy to encourage investment within our own country and the kind of thing I hope to see more from the Conservatives.

This is bad policy. This policy will affect 0 investments and is really just a future tax cut that will also increase OAS and GIS costs. It has no cost for the government today and imposes future costs on government. You notice this isn’t being proposed on RRSPs where the tax impact is felt today.

Most people are running an internationally diverse portfolio with varying amounts of home country bias. So this just encourages investors to split their American investments to their RRSP and their Canadian investments to their TFSA. This is already the most tax efficient method for investment as the TFSA as the TFSA is taxed on American dividends while the RRSP is not.

So this is a veiled way to increase tax breaks for Me while wrapping it in the Canadian Flag.

[Fuzz]

Originally Posted by Ashasx

I guess there's only one way to find out (when the Liberals replicate the policy).

It will be interesting to see if Carney kinda mirrors the decision in some way, or calls it out as a tax break for the wealthy. Should know soon!

[Locke]

Originally Posted by Ashasx

I guess there's only one way to find out (when the Liberals replicate the policy).

He is a Master of the Ring-toss...

[Geraldsh]

Originally Posted by Fuzz

Do most ordinary people really have an extra 5k to invest, anyway? This is mostly a gift to the already financially comfortable at the cost of taxing their investment income. I don't know that this is a great policy for most Canadians, but am open to being convinced otherwise.

TFSAs are the greatest thing since sliced bread. Every Canadian should be encouraged to start one with their first paycheque. The numbers being bandied about are the maximum annual allowance, you can start with far less and watch it grow. The wealth generated within the TFSA is not taxed at withdrawals-a huge savings for retirees.

[Muta]

Originally Posted by Jason14h

That's no different then what you can do already.

You earn tax free 'returns' - Capital Gains, Dividends, Interest on money in the TSFA. At any point you can withdraw and invest elsewhere/do whatever

So effectively they are creating a 2nd TSFA for Canadian companies only.

I'm well aware of how a TFSA works lol, just wondering how you would 'track' a Canadian-only TFSA - perhaps registered Canadian companies in a separate, second TFSA.

[Jason14h]

Originally Posted by GGG

This is bad policy. This policy will affect 0 investments and is really just a future tax cut that will also increase OAS and GIS costs. It has no cost for the government today and imposes future costs on government. You notice this isn’t being proposed on RRSPs where the tax impact is felt today.

Most people are running an internationally diverse portfolio with varying amounts of home country bias. So this just encourages investors to split their American investments to their RRSP and their Canadian investments to their TFSA. This is already the most tax efficient method for investment as the TFSA as the TFSA is taxed on American dividends while the RRSP is not.

So this is a veiled way to increase tax breaks for Me while wrapping it in the Canadian Flag.

But having an internationally diverse portfolio getting taxes vs Canadian not taxed plays into the ROI on the full portfolio

This only (really) affects people with maxed TSFA and RRSP's or post RRSP retiries with a high investment portfolio, but if one asset class is taxed (non Canadian) and another isn't (TSFA) the ROI on Canadian investments goes up

[Jason14h]

Originally Posted by Muta

I'm well aware of how a TFSA works lol, just wondering how you would 'track' a Canadian-only TFSA - perhaps registered Canadian companies in a separate, second TFSA.

Why did you ask about withdrawals and re-investing in non Canadian then?

That's irrelevant.

Tracking seems pretty simple to me. You effectively get $5000 in Canadian investments exempt in the TSFA from the calculation.

[Ashasx]

Originally Posted by GGG

This is bad policy. This policy will affect 0 investments and is really just a future tax cut that will also increase OAS and GIS costs. It has no cost for the government today and imposes future costs on government. You notice this isn’t being proposed on RRSPs where the tax impact is felt today.

Most people are running an internationally diverse portfolio with varying amounts of home country bias. So this just encourages investors to split their American investments to their RRSP and their Canadian investments to their TFSA. This is already the most tax efficient method for investment as the TFSA as the TFSA is taxed on American dividends while the RRSP is not.

So this is a veiled way to increase tax breaks for Me while wrapping it in the Canadian Flag.

I guess I question the ability of most Canadians to actively manage their portfolios and the split between TFSA and RRSP investments, but you could be correct that it may not actually encourage further investment. On the surface, I think an additional $5k invested is good for the individual (if they can afford it) - I also think that it might encourage people to invest more than they were originally if this top up did not exist, but I don't think that can be proven until we see something like this in practice.

[Fuzz]

Originally Posted by Geraldsh

TFSAs are the greatest thing since sliced bread. Every Canadian should be encouraged to start one with their first paycheque. The numbers being bandied about are the maximum annual allowance, you can start with far less and watch it grow. The wealth generated within the TFSA is not taxed at withdrawals-a huge savings for retirees.

Sure, but we already have a TFSA, and most people don't max them out because they need to pay for existing first. Drastically raising the limit only helps those wealthy enough to have the cash to max it out, which means not paying taxes on it. So it's a tax break for the wealthy, primarily, while reducing government income that needs to be made up elsewhere, or cut services. That's why I don't think it's good policy.

[Muta]

Originally Posted by Jason14h

Why did you ask about withdrawals and re-investing in non Canadian then?

That's irrelevant.

Tracking seems pretty simple to me. You effectively get $5000 in Canadian investments exempt in the TSFA from the calculation.

It's not irrelevant; I clearly identified an easy way to circumvent PP's $5K TFSA proposition. The only way to track that Canadians have invested in Canadian companies, and keep them Canadian without circumventing the system, is to have dedicated Canadian-only TFSA accounts (as you said) with registered Canadian companies. Right now you can invest in literally any financial product within your TFSA or RRSP.

[PsYcNeT]

GDP Per Capita is the new Talking Point Du Jour for chuds but completely ignores that Canada's poverty rate is nearly half of that in the US.

[belsarius]

Originally Posted by CliffFletcher

GDP per capita

Norway $90k

Sweden $57k

Finland $55k

Are Norwegians smarter, more hardworking and productive than neighbouring Swedes and Finns? Or is there something else that inflates Norway’s figure?

Ireland - $103k

I'm sure all of the Irish are driving Rolls and have the nicest mansions and castles to live in.

GDP per capita is about as useful as Total Shots Taken are in a hockey game. Without context they are a blunt instrument with limited value.

[Johnny Makarov]

Originally Posted by Doctorfever

Ohhh I am sure there will be plenty of questions for him to dodge.

hahaha you have a PHD in dodging questions!

Deplorables unite for Singh!! He will bring you to the promise land!

[Johnny Makarov]

Originally Posted by Cappy

Mark carney had a fiduciary obligation to Brookfield shareholders. You don’t like it, blame capitalism

It’s weird seeing all these CPC die hards #### on Carney for being pro-business?

They are grasping at plastic straws.

2025 Conservative: Snowflake and NDP supporter. hahahaha and still not very bright.

[Drak]

They don’t stand for anything. They treat political parties like team sports or a religion.

[Torture]

Originally Posted by GGG

This is bad policy. This policy will affect 0 investments and is really just a future tax cut that will also increase OAS and GIS costs. It has no cost for the government today and imposes future costs on government. You notice this isn’t being proposed on RRSPs where the tax impact is felt today.

Most people are running an internationally diverse portfolio with varying amounts of home country bias. So this just encourages investors to split their American investments to their RRSP and their Canadian investments to their TFSA. This is already the most tax efficient method for investment as the TFSA as the TFSA is taxed on American dividends while the RRSP is not.

So this is a veiled way to increase tax breaks for Me while wrapping it in the Canadian Flag.

Yeah. It sounds nice on the surface and I'd happily take another $5k in TFSA room, but how the heck are you going to report and split your holdings such that the additional $5k is only Canadian?

[FLAMESRULE]

Hahaha, so PP is an investor in Brookfield...guess he supports Carney.

"According to a list provided by the Conservative Party, Poilievre provided an update of his assets to the ethics commissioner’s office. One of those is (VCE) Vanguard FTSE Canada Index ETF, an index fund invested in the Canadian economy.

One of the top assets in the VCE index fund? Brookfield Corp., which includes Carney’s old investment firm.

Poilievre also holds $8,124.61 worth of bitcoin (value as Monday)."

https://www.cbc.ca/news/politics/liv...=1743020836639