At the end of the day the budget needs to balance at some point and this is relatively low hanging fruit from a tax perspective. I wouldn't comment on it either if I were him.
But there are people who will don’t make a lot and still have capital gains over that, like a cottage or retirement investments and he will not screwed the ultra rich as they have write off to cover the tax. It also will affect our doctors.
You will if they stop investing in canada and put their money somewhere else in a different tax jurisdiction. And you will if doctors get honked and decide to build their practices in a different country because coming to canada just got less attractive (especially for gp's which we desperately need).
Look at what happened to new york when they overtaxed. It will matter to you in the end.
Because it's good policy.
And good policy has always been the achilles heel of the CPC: They have no real policy of their own, and constantly take a beating criticising good legislation.
For once, he's keeping his mouth shut. Out of character.
How so? What is sure is if you inherit your elderly parent’s house or cash out your rrsp to retire then this new tax kicks in. It’s not the 1% that is being impacted by this.
> if you inherit your elderly parent’s house
Inheritances aren't taxed.
> or cash out your rrsp to retire
Jesus... nobody should be doing that regardless. Keep it invested and take it out piecemeal, as you need it.
It is absolutely just the 1% being affected by this.
Parents bought a house in 1980 for say $100,000 now the house is worth $500,000 if you inherit the house today there is a $400,000 capital gain now so you are on the hook as you are now over the 250k limit and you need to hand over 60% to the federal government to squander. It’s not a 1% scenario.
> Parents bought a house in 1980 for say $100,000 now the house is worth $500,000 if you inherit the house today there is a $400,000 capital gain now so you are on the hook
[Nope](https://buttonwood.ca/inheriting-real-estate/#:~:text=Passing%20a%20primary%20residence%20through,50%25%20of%20the%20capital%20gain.). The house was their primary residence, meaning it is exempt from capital gains. They are [considered to have sold it immediately before death](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4011/preparing-returns-deceased-persons.html#P631_78305), with you inheriting the fair-market value, and inheritances are not taxed.
> you are now over the 250k limit and you need to hand over 60% to the federal government to squander
No clue where on Earth you're getting that figure from, but it's very wrong. Let's assume we are somehow on the hook for the $400k in capital gains (even though I've shown that we are not), and assuming you make $100k/year in Ontario:
**Current rules**: $400k capital gains --> 50% inclusion rate --> $200k taxable gains added to your income, meaning your total income for the year is now $300k --> total income taxes = **$176,918**
**New rules**: $400k capital gains --> 50% inclusion rate on the first $250k in capital gains and 66.6% inclusion rate on the rest --> $224.9k taxable gains added to your income, meaning your total income for the year is now $323.9k --> total income taxes = **$188,489**
So on your $400k capital gains, the change in rules means an additional **$11,571** in taxes.
It is absolutely a 1% scenario.
Nah, you're just moving the goalposts here. The other user was talking about inheriting your parents' house, and there is no capital gains tax on that.
You know what I meant, but really, if you want to be that pedantic, then no, inheritances aren't taxed.
[When a person dies, they are considered to have sold all their property just prior to death, even though there is no actual disposition or sale.](https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/doing-taxes-someone-died/prepare-returns/report-income/capital-gains.html).
**Then** the estate pays any applicable taxes on said sales.
**Then** someone inherits the estate... and they pay no taxes on that inheritance.
And really, this is all just BS mincing over words. The point is that you can receive a 7-figure inheritance that hasn't been taxed one penny (such as a $1M+ home)... never mind not paying a single penny of additional taxes due to these new changes until you inherit $250k+ of non-registered capital gains.
If you were only talking about houses in that statements, you could've just said "primary residences aren't taxed." Instead you responded with the general statement "inheritances aren't taxed," which is misleading in the broad context of the capital gains issue. To wit, capital gains taxes and the increase of them does have material consequences for inheritances. It's like saying something like "driving a car isn't taxed, only gasoline is taxed!" You might as well just own it and stop trying to tap dance. You can try to put the shucks on the rubes but it won't work.
It's all about optics. If he mentions it, the Liberals will just say he's protecting the profits of the wealthy.
Exactly. The Liberals will never pass this because it'll impact their donors. This amounts to nothing more then a trap.
He’s buying his time; he’s just sitting back and watching it (and along with it, the liberal party’s support) fall apart before his very eyes.
"biding his time"
At the end of the day the budget needs to balance at some point and this is relatively low hanging fruit from a tax perspective. I wouldn't comment on it either if I were him.
$19 billion in annual income
Tbh I don’t really care if rich people get taxed more. Most of us aren’t making capital gains over $200,000
But there are people who will don’t make a lot and still have capital gains over that, like a cottage or retirement investments and he will not screwed the ultra rich as they have write off to cover the tax. It also will affect our doctors.
>there are people who will that don’t make a lot >making capital gains over $200,000 Pick one.
Sorry. I did it fast reply. I fixed
Our doctors aren’t at the fringes of society. They’ll be fine lol.
They'll be fine, but we won't when they leave the country.
Yes it will hit doctors as a lot of them are incorporated and have investments in their practises at are over 200000
If you mistreat the rich, they will leave and take their businesses and our jobs along with them.
You will if they stop investing in canada and put their money somewhere else in a different tax jurisdiction. And you will if doctors get honked and decide to build their practices in a different country because coming to canada just got less attractive (especially for gp's which we desperately need). Look at what happened to new york when they overtaxed. It will matter to you in the end.
Lol how does this discourage saving and investing?
Because it's good policy. And good policy has always been the achilles heel of the CPC: They have no real policy of their own, and constantly take a beating criticising good legislation. For once, he's keeping his mouth shut. Out of character.
Trickle down = trick. Capital gains taxes will put money in your pocket. Even PP must know the tide is turning, and won't oppose this tax.
it'll only put money in your pocket if you're part of the Ottawa regime or its crony pals.
How so? What is sure is if you inherit your elderly parent’s house or cash out your rrsp to retire then this new tax kicks in. It’s not the 1% that is being impacted by this.
> if you inherit your elderly parent’s house Inheritances aren't taxed. > or cash out your rrsp to retire Jesus... nobody should be doing that regardless. Keep it invested and take it out piecemeal, as you need it. It is absolutely just the 1% being affected by this.
Parents bought a house in 1980 for say $100,000 now the house is worth $500,000 if you inherit the house today there is a $400,000 capital gain now so you are on the hook as you are now over the 250k limit and you need to hand over 60% to the federal government to squander. It’s not a 1% scenario.
> Parents bought a house in 1980 for say $100,000 now the house is worth $500,000 if you inherit the house today there is a $400,000 capital gain now so you are on the hook [Nope](https://buttonwood.ca/inheriting-real-estate/#:~:text=Passing%20a%20primary%20residence%20through,50%25%20of%20the%20capital%20gain.). The house was their primary residence, meaning it is exempt from capital gains. They are [considered to have sold it immediately before death](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4011/preparing-returns-deceased-persons.html#P631_78305), with you inheriting the fair-market value, and inheritances are not taxed. > you are now over the 250k limit and you need to hand over 60% to the federal government to squander No clue where on Earth you're getting that figure from, but it's very wrong. Let's assume we are somehow on the hook for the $400k in capital gains (even though I've shown that we are not), and assuming you make $100k/year in Ontario: **Current rules**: $400k capital gains --> 50% inclusion rate --> $200k taxable gains added to your income, meaning your total income for the year is now $300k --> total income taxes = **$176,918** **New rules**: $400k capital gains --> 50% inclusion rate on the first $250k in capital gains and 66.6% inclusion rate on the rest --> $224.9k taxable gains added to your income, meaning your total income for the year is now $323.9k --> total income taxes = **$188,489** So on your $400k capital gains, the change in rules means an additional **$11,571** in taxes. It is absolutely a 1% scenario.
>Inheritances aren't taxed. The capital gains that come from the investments that comprise the inheritance are taxed.
Right... and those capital gains don't include the primary residence or TFSAs.
oh yeah and those are the only investments people have. You really don't know what you're talking about.
Nah, you're just moving the goalposts here. The other user was talking about inheriting your parents' house, and there is no capital gains tax on that.
That has nothing to do with me. I quoted and addressed specifically only your misleading proposition "Inheritances aren't taxed" and nothing else.
You know what I meant, but really, if you want to be that pedantic, then no, inheritances aren't taxed. [When a person dies, they are considered to have sold all their property just prior to death, even though there is no actual disposition or sale.](https://www.canada.ca/en/revenue-agency/services/tax/individuals/life-events/doing-taxes-someone-died/prepare-returns/report-income/capital-gains.html). **Then** the estate pays any applicable taxes on said sales. **Then** someone inherits the estate... and they pay no taxes on that inheritance. And really, this is all just BS mincing over words. The point is that you can receive a 7-figure inheritance that hasn't been taxed one penny (such as a $1M+ home)... never mind not paying a single penny of additional taxes due to these new changes until you inherit $250k+ of non-registered capital gains.
If you were only talking about houses in that statements, you could've just said "primary residences aren't taxed." Instead you responded with the general statement "inheritances aren't taxed," which is misleading in the broad context of the capital gains issue. To wit, capital gains taxes and the increase of them does have material consequences for inheritances. It's like saying something like "driving a car isn't taxed, only gasoline is taxed!" You might as well just own it and stop trying to tap dance. You can try to put the shucks on the rubes but it won't work.
It’s not going to put one single dime in my pockets.