RRSP (REER) vs 401k

[August1991]

Our RRSP dates from the federal Liberal budget of 1957 - St-Laurent. Your 401k dates from Carter and 1979.

Both schemes correct a distortion, and allow people to save for retirement.

 

[Michael Hardner]

7 hours ago, August1991 said:

Our RRSP dates from the federal Liberal budget of 1957 - St-Laurent. Your 401k dates from Carter and 1979.

Both schemes correct a distortion, and allow people to save for retirement.

 

Interesting.  I didn't know that.

[August1991]

On 6/24/2024 at 6:53 PM, Michael Hardner said:

Interesting.  I didn't know that.

Our TFSA is a direct copy of the US Roth account.

They copy from us, we copy from them.

====

IMHO, the US federal government, and the EU, must copy from Canada's federal government: Our GST

In Canada, we have a standard consumption tax across all jurisdictions, Friedman-fair,  yet collected by lower levels.

[herbie]

Before that there was a flat 17% manufacturer tax that hurt makers and hid the cost of it from consumers.
Ddin't seem to help in the long run now they get GST rebates for the office furniture and build everything in China or Bangledesh...

[August1991]

15 hours ago, herbie said:

Before that there was a flat 17% manufacturer tax that hurt makers and hid the cost of it from consumers.
Ddin't seem to help in the long run now they get GST rebates for the office furniture and build everything in China or Bangledesh...

Created in the 1920s,we had a weird federal Manufacturer's Sales Tax.

Mulroney had the political courage to impose a modern federal VAT - our GST.

=====

Without a federal consumption tax, the US is not sustainable. Your social security and medicare are too generous, promise too much.

Your constitution has survived for 250 years. You need a federal consumption tax..

[August1991]

Trump changed your SALT to make it like Canada - we cannot claim local taxes on our federal form.

I think Trump has the political courage to impose a federal consumption tax.

Note: Mulroney ensured the federal GST is collected by Revenu-Quebec.

 

[herbie]

42 minutes ago, August1991 said:

Without a federal consumption tax, the US is not sustainable.

Possibly. It definitely would be if it had one, and 5% is not gonna hurt anyone. They'll say it would just because their country was founded by opposition to a tax and their all brainwashed by subsequent generations of loathing all taxes for any reason whatsoever.

[August1991]

On 7/25/2024 at 4:16 PM, herbie said:

Possibly. It definitely would be if it had one, and 5% is not gonna hurt anyone. They'll say it would just because their country was founded by opposition to a tax and their all brainwashed by subsequent generations of loathing all taxes for any reason whatsoever.

Trump is the kind of politician to impose a federal VAT.

[August1991]

Our MST was a mess,

Mulroney suggested a federal VAT of 3% for everything,

Then, the NDP/Liberals argued. Quebec argued.

=====

Mulroney folded: some food is exempt, the Quebec government will collect the federal tax.

Mulroney - what a Canadian!

[August1991]

Wrong.

Mulroney wanted 3% on every purchase - to replace our MST.

He folded, and gave up on "food" purchases - but in exchange, he insisted on 7% for all other purchases.

Harper cut the GST to 5%.

 

Edited October 9, 2024 by August1991