.2PDK

It's fascinating to watch him dupe the younger generations into voting for him while destroying their future opportunities.

It's a painful lesson that they're currently becoming aware of but alas it's simply too late.

.2PDK

https://www.reuters.com/world/americ...ts-2024-04-18/

"Raising capital gains taxes could discourage savings, say economists, a key driver of business investment, which fell in the fourth quarter for the sixth time in the last seven quarters and has been unable to sustain a move above the 2014 peak.
"The Canadian economy needs savings and it's the relatively wealthy that now have less incentive to save — or more incentive to move those savings out of the country," Derek Holt, head of capital markets economics at Scotiabank, said in a note."

And you wonder why Canadian pension funds invest primarily outside of Canada.

As do I for that matter...

Greg981

From what I understand if your shares are held in a holdco then there is no exemption allowed?

Tj40

and this is a government that has publicly said there is $5bn of waste in the public service - they promised efficiencies- where are they?



never mind - silly question

canuck964

If you are referring to my reference to "qualifiers both on the part of the company (2 year and time of transaction)" I was referring to opco. Those requirements are that in the opco for the 2 preceding years before sale 50% or more of the assets have to used in the active business and at the time of sale 90% or more of the assets have to be used in the active business. That is what I meant by 2 years and time of transaction.

I know that there are structures involving family trusts and corporate beneficiaries in additional to family beneficiaries that maintain the purity of opco but that is way beyond my pay grade.

.2PDK

Ouchie poo...

https://www.ipsos.com/en-ca/tories-h...-over-liberals

Tories (43%) Hold a Steady 19-Point Lead over Liberals (24%), as a Third of Canadians Say They Would Never Vote Liberal in the Next Election

SToronto

I hope it sticks and improves. Assuming NDP continue to back the Liberals, 1.5 years is a long time for the wind to change. However, unless Trudeau is successful in his work I think this sentiment will hold.

Still floored by the budget, MP comments about expecting wealthy people to pay more (this week so young people can buy homes. Almost word for word from Trudeau and Freeland. Example given was the multi-millionaire earner who pays less income tax than a nurse. If that's the target, then why am I caught up in it.

Equally as disturbing, nothing about improving the countries productivity. Had a discussion with BDC, an arms length government entity tasked with driving business in Canada through consulting and financial products. They too haven't heard anything coming or in place to help drive productivity. Strange given all the trusted people sounding the alarm on this topic.

Has there been content online about younger people's reaction to the budget? Curious what they think since it's focused on them.

SToronto

Can be held in trust with beneficiaries.

Onami

I hate politics and politicians even more, so I am not well-read, nor did I really care until recently. I read this article this morning and it was eye-opening for this newb!

Terence Corcoran: Finance Minister Chrystia Freeland taxes, then rewards, the 'plutocrats' (msn.com)

SToronto

I feel more fired up then ever. I pay plenty of income tax annually, keep less than half my income. Plus all the other taxes. I pay more taxes than the nurse and other roles the government speaks about. Busting my butt on building a business for 16 years and still going, lots of sacrifice, stress and all else.....to hopefully make something for myself and now family. Contributes a lot to the Canadian economy. No pension program. Now government wants more from me through capital gains on said business. Doesn't sit right.

Onami

One of my wealthy colleagues walked me through his thinking on taxes and it was quite eye opening. His Son has already relocated to the Cayman Islands and he is seriously considering it also (has engaged lawyers and accountants). He is fed up with being viewed as a villain for being successful.

.2PDK

More like being exploited for being successful.

This is why we decided to retire quite early and adapt so as to contribute the least amount acceptable to us while living the lifestyle we want.

When that balance is no longer in our favor we'll leave...

ronnie993tt

Not a tax lawyer but I don't think leaving is an easy task either. Besides all of the personal stuff, I think your assets are deemed sold when you relocate and all that capital gains is due immediately. Only break is tax free principal residence, TFSA and $1 million gain on a business.

ronnie993tt

I remember those happy days of apathy Mark. Now I read the Financial Post daily and am troubled by disastrous economic policy and the resulting crash in standard of living, terrible health care, the climate change fraud, woke/ESG/DEI* Marxist regulation and lack of corn juice free gas. I think I'll go back to bed.
*Didn't Earn It

Onami

Exactly what my colleague and I said. It used to be bad, but not that bad, so we overlooked it all...