Trudeau planning to tax gains on personal residence?

Well a lot of that is baked in now with borrowing until the end of the year. We can always cut spending the question is where and by how much. We spend somewhere around a quarter of our federal budget on individual transfers. Sure we can cut but you are basically taking from the poor some of whom will vote against it. Transfers to other governments mostly for healthcare is another quarter. Same story. A quarter is basically everything else the federal government does about a third of which is defence. We have promised to nearly double defence spending in the medium term and conservatives have said they will accelerate this. Just holding this steady looks difficult. Interest and other transfers makes up the rest. So of course there is lots of waste but where do we make real cuts that brings us to balance?

taxrage wrote: ↑ it's not ridiculous. It's all about fairness. I don't like paying taxes, but the Bon Jovi example illustrates my point exactly. Very wealthy people can use an expensive PR as a convenient way to park large amounts of capital and turn it into a tax-free capital gain over time. Oprah Winfrey has a house worth $100M+. Should she be able to pocket a $50M capital gain tax-free when she sells it in 10-20 years?

choclover wrote: ↑ Are you talking about Oprah's property in Canada or the U.S.? The taxation rules are significantly different in the countries so where her property can have a big impact on the outcome of a sale. Also, who knows what anyone's property will be worth in 10-20 years. It seems that there are all kinds of forces at work right now that may cause property valuations to drastically change in the future. For example, in some urban areas in the U.S., property taxes have risen to staggering levels and, at the same time, house prices have dropped tremendously in value. Not sure if this is cause and effect but it seems that the two could be tightly correlated. If demand for property shifts to other areas, those areas may correspondingly increase in property value.

ricodeals wrote: ↑ Most people already treat their principal residence as an investment, stop pretending that it is not and start taxing it. Just like when they removed multiple principal residence for spouses in 1982.

taxrage wrote: ↑ Exactly what rich person would structure their income as salary and be subject to a 53% marginal rate? Outside of his PM salary, do you think Trudeau pays 53%? Do you think Morneau pays 53%?

When John Roth cashed out $100M in NT stock options did he pay 53%? Well, at least he paid 25%. He has a multi-million dollar estate now and will make millions when he sells. THAT will be tax-free. Should it be? I don't think so.

NotRobot wrote: ↑ There are lots of salaried employees that make way more than 220k (top marginal tax rate in Ontario) and have no way to lower the tax rate on the income below the outrageous tax rates we already pay.

ricodeals wrote: ↑ Just look at the sunshine list in ontario, that is all t4 income. Those are still rich people.

ssj4_ootaku1 wrote: ↑ lol 4 page discussion on some person's OPINION

taxrage wrote: ↑ Exactly what rich person would structure their income as salary and be subject to a 53% marginal rate?

NotRobot wrote: ↑ There are lots of salaried employees that make way more than 220k (top marginal tax rate in Ontario) and have no way to lower the tax rate on the income below the outrageous tax rates we already pay.

FrancisBacon wrote: ↑ Very very many. Certainly many many I know.

Here's a thought experiment: if they weren't paying 53%+, then why would they care about the marginal tax rate being so high?

taxrage wrote: ↑ You mean like incorporated professionals such as doctors, dentists, CAs etc? It seems they were very quiet...until Morneau clamped down on the practice of income sprinkling. Now there's a huge outcry.

Ken_vs_Ryu wrote: ↑ On what ground is your PRIVATE property, bought with AFTER TAX dollars is going to be further taxed? Madness

Ken_vs_Ryu wrote: ↑ On what ground is your PRIVATE property, bought with AFTER TAX dollars is going to be further taxed? Madness

Jruuu wrote: ↑ Let me play devil's advocate:

We all have to pay capital gains tax after selling shares, which are also purchased with after tax dollars. And cars. And lots of other things. Why should homes be treated any differently? Because we got used to paying no tax? Things change.

Me:
The price of homes has doubled and tripled in many of the major housing markets across Canada. So there is money to be made from a tax perspective. We now have to pay for CERB and all of the other benefits the federal gov. has implemented due to covid. Exceptional times may lead to exceptional measures at the federal level.

Federal leaders are likely asking all of their departments for ideas. This is probably one among thousands that they will be assessing.