Trudeau 'revenue neutral' tax changes - not even close

Shady · January 23, 2016

Sure is....it demonstrates just what all those taxes in Canada can't always deliver (pun intended).

It's definitely rather rich to see somebody boasting about a healthcare system that relies on other countries to help with its inadequacies..

waldo · January 23, 2016

Further to this point....rich B.C./Vancouver is so great it has to send preemies to hospitals in....Washington state.

yup... in 2007... given a lack of available trained neonatal nursing staff. I understand the 2007 gap has been met - carry on! :lol:

.

Smallc · January 23, 2016

Then why is Trudeau lowering taxes ? Canada only has one major coast-coast highway, and it ain't that great.

And that's a function of past spending, not current.

Smallc · January 23, 2016

/facepalm

Canada can buy excess capacity when needed. It doesn't require us to spend money to build excess capacity for the rest of the time.

Shady · January 23, 2016

Canada has always had higher taxes than the US, but pretty much the same rate of growth. If you want to see what low taxes buys, move to Somalia.

Why? You think Somalia is the way it is because they're taxes are too low? /facepalm

Derek 2.0 · January 23, 2016

But there are better wealth distribution tools favoured to families in Canada - it's in the G&M article that BC posted.

That's the point........I want less of my wealth to be redistributed by Government and what I get to keep, I want to spend less on the cost of living, and that is a major motivation for many Canadians to move to the United States.......

Smallc · January 23, 2016

Not at all, you're the one citing Vancouver as an example of affordability.

Actually, if you read what I wrote, I said people are moving their at more than double the rate, despite higher costs. There are obviously other factors.

You don't consider the United States a "civilization"? Some how, the Americans are managing with lower taxes and lower costs of living....

The US has more long term money issues to deal with.

Smallc · January 23, 2016

That's the point........I want less of my wealth to be redistributed by Government and what I get to keep, I want to spend less on the cost of living, and that is a major motivation for many Canadians to move to the United States.......

And most Canadians disagree. That's what democracy and responsible government is about.

Derek 2.0 · January 23, 2016

And most Canadians disagree. That's what democracy and responsible government is about.

Because most Canadians wouldn't garner an advantage moving to the United States, because they get "free stuff" in Canada.

bush_cheney2004 · January 23, 2016

....The US has more long term money issues to deal with.

...and the US actually has far more infrastructure and capacity for those expenditures and debt. Canada has higher taxes....to get less.

Derek 2.0 · January 23, 2016

Actually, if you read what I wrote, I said people are moving their at more than double the rate, despite higher costs. There are obviously other factors.

Such as? And what is the average income of said people?

The US has more long term money issues to deal with.

Then why is the Canadian dollar tanking in comparison?

bush_cheney2004 · January 23, 2016

And most Canadians disagree. That's what democracy and responsible government is about.

Then why do so many snowbirds retire to the USA ? They don't count once they leave ?

Smallc · January 23, 2016

Why? You think Somalia is the way it is because they're taxes are too low? /facepalm

I think that taxes are necessary to pay for proper social infrastructure.

Smallc · January 23, 2016

Then why do so many snowbirds retire to the USA ? They don't count once they leave ?

It's about the temperature, I would think.

bush_cheney2004 · January 23, 2016

Then why is the Canadian dollar tanking in comparison?

Very good question....why the safe flight to US dollars ?

Smallc · January 23, 2016

Such as? And what is the average income of said people?

you tell me. You're the one moving the goal post.

Then why is the Canadian dollar tanking in comparison?

Because the USD is still the reserve currency of the world.

Edited January 23, 2016 by Smallc

bush_cheney2004 · January 23, 2016

It's about the temperature, I would think.

Temperature is part of Canada, but so are higher taxes.

Smallc · January 23, 2016

Temperature is part of Canada, but so are higher taxes.

Because Canadians like it that way overall. Canadians will set up their country as they wish it to be.

bush_cheney2004 · January 24, 2016

Because Canadians like it that way overall. Canadians will set up their country as they wish it to be.

I know....they will eschew what is bad (higher taxes, higher cost of living, "temperature", etc.) for what they like in the USA.

Even the long-haul Canadian truckers prefer using U.S. highways.

So go ahead and play the progressive/regressive taxes shell game....it won't really matter in the end.

Derek 2.0 · January 24, 2016

you tell me. You're the one moving the goal post.

I told you, foreign ownership.......that is not moving the goal posts, but fact. Vancouver is one of the most expensive places on the planet to purchase real estate, and is hardly representative of middle income Canadians.

Because the USD is still the reserve currency of the world.

And because investors don't see Canada as a good investment opportunity.......quite the opposite, edge of the abyss is more apt.

Smallc · January 24, 2016

I told you, foreign ownership.......that is not moving the goal posts, but fact. Vancouver is one of the most expensive places on the planet to purchase real estate, and is hardly representative of middle income Canadians.

You're telling me that it was all rich investors that increased the population by nearly 10% in 5 years? Sure.

And because investors don't see Canada as a good investment opportunity.......quite the opposite, edge of the abyss is more apt.

You're about the only person predicting edge of the abyss type stuff. This slowdown will be of medium length, and isn't unique to Canada.

Australia has lower taxes than Canada, and yet is in a worse situation.

Edited January 24, 2016 by Smallc

Argus · January 24, 2016

I don't know. I'm sure you have the answer.

Too many. I've met a lot of them. Degrees from a lot of third world countries aren't worth the paper they're printed on. Employers here don't even know if these degrees or real, or earned (cheating and bribery are endemic in much of the third world) much less whether the university which allegedly granted them has courses that are comparable to what is found in western countries. It isn't exactly unknown for potential employers to discover during testing and interview that their immigrant subject knows almost nothing about his alleged area of expertise. Then there's the language issue. The higher the job you're applying for, the higher your communications skills are expected to be. Heavily accented, hesitant English, with poor writing and comprehension isn't going to get you many higher level jobs in Canada.

Edited January 24, 2016 by Argus

Smallc · January 24, 2016

So no number.

waldo · January 24, 2016

So no number.

please, cease and desist! ... its most perplexing to those challenged to actually support their statements/claims with real data... real numbers!

msj · January 24, 2016

Let's try this again using some reasonable numbers (I'm doing back of the envelope here using online tax calculators as a rough guide due to the fact that I'm lazy as f^ck).

So, let's say hitops is making $250,000 CDN right now and is in BC. His taxes would be around $91,000 assuming no RRSP's and he's single etc. So net take home pay $151,000.

Let's say that if he went to Wyoming he would make the equivalent of $500,000 or about $350k USD at current FX rates (I'm rounding for simplicity here as differences are immaterial).

US tax leads to about $97,000 according to an online calculator (I don't do US taxes so I presume this is a maximum amount equivalent to what I've done with the BC tax calculation above). So net in USD is $253k which is equivalent to about $361,000 CDN net of tax.

So, just so I have this correct, based on the OP, hitops is considering leaving Canada because of a tax increase of about $1,300 but has not left already due to a net take home pay increase of $203,000.

That $1,300 increase is based on the 1.5% saving on the 22% tax rate on incomes between ~$44,000 and $89,000 versus the 4% point increase for income above $200,000.

Now, I understand cognitive dissonance when it comes to financial decisions. I love reading about and see it all the time in my business with clients and as I maintain my personal investment portfolio.

Which is why I have taken the time to point all this out in such detail.

It is cognitive dissonance to make a big deal about $1,300 per year when one should have moved long ago to take advantage of the hundreds of thousands of dollars per year of benefits from making that 100%+ more increase in earnings.