Canada just started the largest tax increase you’ve never heard of

[CdnFox]

Canada just started the largest tax increase you’ve never heard of - The Hub

One such move sparked considerable debate: increasing capital gains taxes.

This is an important debate to be had, to be sure, but there are other tax changes coming that have been completely lost in the shuffle.

A significant increase in taxes on new business investment throughout the Canadian economy is most concerning of all.

It is likely the largest tax increase you’ve never heard of. And it will lower investment and productivity at a time when we need more of both.

 

For those who missed it, Canada will now be penalizing companies that invest In any new equipment, any capital investment, any new facilities or factories.

At a time when investment capital is actually leaving Canada for the first time in history, the liberals have now don even further to discourage companies from spending money here.

This is how the left wing works. The only thing they know how to do, and it drives business away.

[ExFlyer]

22 hours ago, CdnFox said:

Canada just started the largest tax increase you’ve never heard of - The Hub

One such move sparked considerable debate: increasing capital gains taxes.

This is an important debate to be had, to be sure, but there are other tax changes coming that have been completely lost in the shuffle.

A significant increase in taxes on new business investment throughout the Canadian economy is most concerning of all.

It is likely the largest tax increase you’ve never heard of. And it will lower investment and productivity at a time when we need more of both.

 

For those who missed it, Canada will now be penalizing companies that invest In any new equipment, any capital investment, any new facilities or factories.

At a time when investment capital is actually leaving Canada for the first time in history, the liberals have now don even further to discourage companies from spending money here.

This is how the left wing works. The only thing they know how to do, and it drives business away.

Lets be real.

Every penny spent by a company or business is a tax write off as an expense. Been that way since...forever.

[CdnFox]

31 minutes ago, ExFlyer said:

Lets be real.

Every penny spent by a company or business is a tax write off as an expense. Been that way since...forever.

I donl't think you know what a tax write off is exactly.  Or how they work.  

When a company buys equipment, such as  a computer, they're not allowed to 'write it off' just like that.  What they are forced to do is 'devalue' it over time. So the gov't says "Well the computer will last on average 7 years before it is dead and needs to be replaced - so you must spread the tax deduction over 7 years". 

The same goes with the software. 

So if a company wants to expand and buy 100 new computers for a new facility to employ 100 new people, they'll have to pay up front with next to no deduction at all - then get their deduction over time.  Mean while they pay tax on the money they spent today, so it costs a lot more to start that new facility, 

What the gov't has allowed in the past is invesments in growth like that were allowed to be deducted when they did it instead of devaluing it. Now it was much cheaper and easier for the company to justify spending all that cash on an expansion.  Which meant more jobs and (hopefully) more profit for the gov't to tax so the gov't won in the long run 

Now that's gone.  SO it's much much more expensive for companies to expand or start something. It's not just computers after all, it's all the equipment, tech, etc etc. 

So businesses will seek to invest elsewhere. It has never been easier for investors to move their money to another place to invest and expand, and that's what they'll do.