Luxury Tax Proposed in Budget 2021 - New Developments
09-30-2021, 10:28 PM
#1
Pro
Thread Starter
Luxury Tax Proposed in Budget 2021 - New Developments
As the older thread with a similar title is being used to discuss a wide variety of topics including monetary and fiscal policy, etc., I thought it would be useful to have a thread devoted exclusively to discussion about new developments around the Luxury Tax proposed in Budget 2021.
The last announcement by the government was a call for submissions on the proposal by September 30, 2021:https://www.canada.ca/en/department-...goods-tax.html
Let's use this thread to keep ourselves up to date on new developments in respect of the Luxury Tax, including draft legislation and the effective date.
The last announcement by the government was a call for submissions on the proposal by September 30, 2021:https://www.canada.ca/en/department-...goods-tax.html
Let's use this thread to keep ourselves up to date on new developments in respect of the Luxury Tax, including draft legislation and the effective date.
Last edited by DES GTS; 09-30-2021 at 10:30 PM.
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Popular Reply
10-01-2021, 01:50 PM
I did send in feedback before the deadline, this is what I wrote...which is probably a bit harsh but I was grumpy at the time lol
Please see the list of reasons below on why a luxury tax should NOT be implemented:
There is NO good reason to implement a luxury tax and provides zero benefits while being a substantial detriment to our country. Please ensure that this legislation is not passed.
- The income that is used to eventually pay for these vehicles has already been taxed, most of which was already in a high marginal tax bracket. As such it’s up to a persons own discretion how it is spent and should not be penalized when it has zero negative consequences on society (as opposed to tobacco/alcohol which has a health care impact).
- Prices of vehicles continue to rise, there are normal pickup trucks and family vehicles that are close to and exceeding $100,000 today. With continued inflation due to wasteful government spending and printing of money, the $100,000 proposed threshold will impact more people than intended in the near future.
- This will hurt the ability of the middle class to purchase “dream” vehicles after working hard for years to save up for one. It is not indexed against a persons income, only against their (what should be) free choice to pursue goals of their choosing (e.g. buying a sports car), and is therefore prejudice against a small selection of the population and hurts the average person more so than those truly wealthy. Then again, the truly wealthy have earned their money and shouldn’t be penalized for their success.
- This will impact the dealerships that sell these types of vehicles, directly affecting good employment (most of these dealerships pay well), the tax revenue from those employees, and already taxable revenue of vehicles sales, service, and licensing. Consequently the actual realized gain in income for the government will be net zero at best but overall a negative to those people working in this industry.
- This will impact the sales of EVs and other innovative vehicles, since most innovation happens in the higher price brackets (e.g. Tesla Model S, Porsche Taycan, or autonomous driving tech).
- There is already sales tax on vehicle purchases, including sales tax again on used vehicle purchases which were already taxed at initial purchase. There is no need for yet another tax on vehicles.
- Taxing specific luxury goods is discriminatory, why only cars/boats and not Watches? Clothing? Jewelry? Luxury Vacations? High End Restaurants? Etc. (please don’t get any ideas).
- British Columbia’s implementation of a tax on high end vehicles has already proven to be a failure.
- Virtue signalling by “going after the rich", which this government continually tries to do with token legislation like this, doesn’t actually help balance the budget, is pathetic, and needs to be stopped. Confiscation of people’s hard earned income to buy votes should not be allowed.
There is NO good reason to implement a luxury tax and provides zero benefits while being a substantial detriment to our country. Please ensure that this legislation is not passed.
10-01-2021, 01:06 PM
#2
Burning Brakes
I wonder how badly this is going to kill the sports car market.
10-01-2021, 01:50 PM
#5
I did send in feedback before the deadline, this is what I wrote...which is probably a bit harsh but I was grumpy at the time lol
Please see the list of reasons below on why a luxury tax should NOT be implemented:
There is NO good reason to implement a luxury tax and provides zero benefits while being a substantial detriment to our country. Please ensure that this legislation is not passed.
- The income that is used to eventually pay for these vehicles has already been taxed, most of which was already in a high marginal tax bracket. As such it’s up to a persons own discretion how it is spent and should not be penalized when it has zero negative consequences on society (as opposed to tobacco/alcohol which has a health care impact).
- Prices of vehicles continue to rise, there are normal pickup trucks and family vehicles that are close to and exceeding $100,000 today. With continued inflation due to wasteful government spending and printing of money, the $100,000 proposed threshold will impact more people than intended in the near future.
- This will hurt the ability of the middle class to purchase “dream” vehicles after working hard for years to save up for one. It is not indexed against a persons income, only against their (what should be) free choice to pursue goals of their choosing (e.g. buying a sports car), and is therefore prejudice against a small selection of the population and hurts the average person more so than those truly wealthy. Then again, the truly wealthy have earned their money and shouldn’t be penalized for their success.
- This will impact the dealerships that sell these types of vehicles, directly affecting good employment (most of these dealerships pay well), the tax revenue from those employees, and already taxable revenue of vehicles sales, service, and licensing. Consequently the actual realized gain in income for the government will be net zero at best but overall a negative to those people working in this industry.
- This will impact the sales of EVs and other innovative vehicles, since most innovation happens in the higher price brackets (e.g. Tesla Model S, Porsche Taycan, or autonomous driving tech).
- There is already sales tax on vehicle purchases, including sales tax again on used vehicle purchases which were already taxed at initial purchase. There is no need for yet another tax on vehicles.
- Taxing specific luxury goods is discriminatory, why only cars/boats and not Watches? Clothing? Jewelry? Luxury Vacations? High End Restaurants? Etc. (please don’t get any ideas).
- British Columbia’s implementation of a tax on high end vehicles has already proven to be a failure.
- Virtue signalling by “going after the rich", which this government continually tries to do with token legislation like this, doesn’t actually help balance the budget, is pathetic, and needs to be stopped. Confiscation of people’s hard earned income to buy votes should not be allowed.
There is NO good reason to implement a luxury tax and provides zero benefits while being a substantial detriment to our country. Please ensure that this legislation is not passed.
Last edited by #1SomeGuy; 10-01-2021 at 01:53 PM.
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10-11-2021, 04:13 PM
#7
Pro
Thread Starter
Haven't seen anything yet, but let's use this thread for news about the proposed luxury tax (especially the when draft legislation comes out) rather than general political musings. Should see something in the next month or so.
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10-11-2021, 04:22 PM
#8
Rennlist Member
I think the fact we have a new parliament resets the matter, hopefully anyway.
10-12-2021, 03:07 AM
#9
Rennlist Member
10-12-2021, 09:56 AM
#10
Burning Brakes
I'm just using this as the perfect excuse to go car shopping?
10-12-2021, 11:46 AM
#11
I can't wait for this tax to kick in and solve our debt problem...
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10-24-2021, 05:42 PM
#12
So no new developments but many different responses from dealers on specifics.
I have a simple example, hopefully someone can chime in if they know the answer.
If I buy a $250k car and trade in a $200k car in Ontario what will be the tax I owe under the current proposed luxury tax?
(Given the simplicity of the question I can't seem to get a straight answer).
I have a simple example, hopefully someone can chime in if they know the answer.
If I buy a $250k car and trade in a $200k car in Ontario what will be the tax I owe under the current proposed luxury tax?
(Given the simplicity of the question I can't seem to get a straight answer).
10-24-2021, 05:44 PM
#13
Race Director
So no new developments but many different responses from dealers on specifics.
I have a simple example, hopefully someone can chime in if they know the answer.
If I buy a $250k car and trade in a $200k car in Ontario what will be the tax I owe under the current proposed luxury tax?
(Given the simplicity of the question I can't seem to get a straight answer).
I have a simple example, hopefully someone can chime in if they know the answer.
If I buy a $250k car and trade in a $200k car in Ontario what will be the tax I owe under the current proposed luxury tax?
(Given the simplicity of the question I can't seem to get a straight answer).
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KLOC (11-17-2021)
10-24-2021, 05:54 PM
#14
Rennlist Member
10-24-2021, 05:57 PM
#15
Fun times...