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

[August1991]

Make America great again?

Once  upon a time, I believed that Trump could do that.....

[herbie]

Who'd a thought? That when I examined my first pay cheque that my tax refund wold someday been enough to buy a pretty fancy car in those days?

Hell, coulda bought three Honda Civics or Minis or two Mavericks back then. Or a jacked 3/4 ton 4x4 in the 17c/L days...
When the folks passed, my sisters and I found Dad's 1961 tax papers. How the HELL did a family of 6 lown a middle class home and own 2 cars on that little money?

[User]

On 7/25/2024 at 12:29 PM, August1991 said:

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..

The issue is and continues to be a spending problem, waste, fraud, and abuse.

The answer for you leftists is ALWAYS, to just tax more. 

[August1991]

4 hours ago, User said:

The issue is and continues to be a spending problem, waste, fraud, and abuse.

The answer for you leftists is ALWAYS, to just tax more. 

Disagree, strongly.

A civilised State needs revenue:  But how to tax? Create a tax that people cannot avoid.

Our GST is arguably the best tax possible. Why? People hate it.

Mulroney created it at 3% for everything.

Harper foolishly cut it to 5%.

[August1991]

7 hours ago, herbie said:

Who'd a thought? That when I examined my first pay cheque that my tax refund wold someday been enough to buy a pretty fancy car in those days?

Hell, coulda bought three Honda Civics or Minis or two Mavericks back then. Or a jacked 3/4 ton 4x4 in the 17c/L days...
When the folks passed, my sisters and I found Dad's 1961 tax papers. How the HELL did a family of 6 lown a middle class home and own 2 cars on that little money?

Herbie,

Since 1990 or so, we are living the American Dream.

All of us. What next?

 

 

 

[herbie]

A bump in the night woke up some of us.

[User]

2 hours ago, August1991 said:

Disagree, strongly.

A civilised State needs revenue:  But how to tax? Create a tax that people cannot avoid.

Our GST is arguably the best tax possible. Why? People hate it.

Mulroney created it at 3% for everything.

Harper foolishly cut it to 5%.

We are not talking about the general concept of revenue. Workers pay 12%+ of their income into social security.

The problem is that Congress uses it as their general fund slush fund, it is full of waste, fraud, abuse and systemic issues with how it has been turned into a welfare system for disability.

Add on top of that increasing life expectancy and you end up with a system failing by design and mismanagement, not because we don’t tax enough. 

[August1991]

1 minute ago, User said:

We are not talking about the general concept of revenue. Workers pay 12%+ of their income into social security.

The problem is that Congress uses it as their general fund slush fund, it is full of waste, fraud, abuse and systemic issues with how it has been turned into a welfare system for disability.

Add on top of that increasing life expectancy and you end up with a system failing by design and mismanagement, not because we don’t tax enough. 

Agreed, spending is easy.

=====

America needs a federal consumption tax.

In Canada, Mulroney imposed it.

In Japan, the LBP imposed it.

[User]

Just now, August1991 said:

Agreed, spending is easy.

=====

America needs a federal consumption tax.

In Canada, Mulroney imposed it.

In Japan, the LBP imposed it.

We don’t need a consumption tax. We need to stop spending. 

[August1991]

1 minute ago, User said:

We don’t need a consumption tax. We need to stop spending. 

I reckon that you need both.

Your Roth/IRA are good - like your 401ks

But you Americans really need a federal consumption tax.

I reckon that a US federal VAT would show China that you guys are serious.