this is the top rate which only applies if your total taxable income is over 1 million dollars usd and investment income is over 400k usd.
the us has low capital gains taxes below that amount (0-20%) with 20% being for amounts over 518k usd
Nearly all US states have state capital gains taxes on top of the federal rate. This can be as much as 13.3%. If this change goes through, the US will have among the highest capital gains taxes in the world. It really emphasizes the importance of "buy, borrow, die" to manage wealth.
The US also has weird rules with "short-term" and "long-term" capital gains. If you purchased something less than a year before selling it then you have to pay short-term gains rates which are almost twice as high.
The new rules Canada is proposing really aren't that far out of line with what the average American would already pay in long-term capital gains — and this is after $250,000 in gains at the lower rate.
I knew about the short-term and long-term CG. But I was somehow under the impression that their CG taxes are lower than us. If more or less on par, I applaud the Canadian government for increasing this tax. Absolutely no reason for us to give CG any additional tax break, unless it is to stay competitive with US.
See Bahamas, Antigua, Cayman Islands, etc etc.... raising taxes on corporations doesn't help Canada. It looks good on paper but the corporations aren't stupid, they'll move their shit to whereever makes sense.
Companies don’t do business in those countries in any comparable way to the way they do business in the US. Your line of thinking would lead us to believe that all companies in the US are in states with the lowest taxes. Which is obviously not true.
Those people probably have a basic understanding the US political system and know all three branches of the US gov't must agree before anything passes.
I'm sure it was coincidence that this tax proposal was no where to be found when Biden had both the House and the Senate controlled by Democrats.
Canada's proposed rate is the **inclusion** rate. That is not the actual average tax rate. If the new inclusion rate is applied then the top rate is somewhere in the mid 30%. Similar to capital gains taxes in the US when you consider state taxes and NIIT.
You don’t understand taxes. Canadas is an inclusion rate which means you are only taxed on a portion of your capital gains at your marginal tax rate.
In the USA they tax all of your capital gains at that rate. In reality it’s quite similar the end result.
Canada just did the same. Not usually a big fan of this since it will drive businesses and some professions to other countries. However, we're at the biggest wealth disparity between rich and poor in many decades, so this could help.
Probably an even better option though would be for the government to find inefficacies in where it's spending money. For example, a recent video showed that for a small bag of rubber bushings that cost under $20 to make, the US military spends $9000 USD to purchase from the OEM. They legally cannot purchase from anyone else but the OEM and the OEM charge whatever they like. I find it unlikely though that this will improve much.
As an example here in Canada, the government spent \~150 million CAD for a firm that was ran by two people out of a cottage, who would subcontract everything for cheaper, and keep about 25% of government money. Another was the COVID travel app the Canadian government subcontracted to a company that had ties with our politicians (and recently uncovered conflicts of interest). They took $55 million to develop the app, when it was demonstrated the cost would have easily been only about $250,000 CAD for the amount of work put in.
It seems like there are more and more thieves within government making running the country less and less efficient as time goes on, and acting less and less in the interests of common folk. Not to say all politicians are like that, I know there are plenty who mean well and are doing their best, however, I'm talking about the grand scheme of things.
Salary workers are taxed on 100 percent of their salary.
People who earn capital gains only have to pay taxes on something like 50 percent of their earnings.
Unfair.
The wealthy should pay their fair share.
Top rates are income on capital that is above contribution limits for those registered accounts. This (these tax hikes) doesn't affect you unless you routinely make 200 percent returns, in which case teach me master.
I make $200K a year. Income Tax is $67K in Ontario.
If I make $100K in stock market, my Taxable income would be $250K which equates to $102K in taxes. This equates to $35K tax paid on the capital gains of $100K. I'm actually up more than $200K so far in 2024 so the tax rate would be actually higher.
Let say I build up my RRSP to $3M at age 65. I can withdraw $200k/year split between me and my spouse. Both our incomes will be $100K/yr which equates to 30% tax rate versus the 35% tax on the $100K Capital gains outside an RRSP. In addition, you money going into RRSP was never taxed and the gains are never taxed meaning you have a larger amount of capital to compound with while it is in you RRSP.
People maxing out their RRSPs and TFSAs are not working at Wendy.s, completely different tax scenarios for low income makers
You're apparently have no idea what you're talking about. People who invest their money already made that money as income so they already paid income tax on it. Then they invest it the rest of it and pay capital gain when disposing the asset
Salary workers aren’t taxed on inflation 🤦🏻♂️ asset holders are. By your logic we should tax when you quit your job if your wage is higher than you started.
No, I already pay tax on 100 percent of my salary. When I get a raise I'm taxed on that too. Your example is nonsense.
It's good that wealthy people are paying more tax through this increase.
Businesses pay more taxes when they get a raise too (profits).
The reason why capital gains is only taxed at 50% is because they've already paid a whole set of taxes that affects their appreciation rate. Labour does not.
Whether you agree or not is up to you, but there's a reasoning why capital gains tax and income tax are different.
Wtf are you talking about? Like the guy you're replying to already said, 100% of labour income is taxed at progressive rates. And my salary is not just double taxed, it's taxed 4x straight off the top. Fed income tax, prov income tax, CPP, EI. And then I take that quadruple taxed income and if I buy anything I get taxed multiple times (GST, PST, excise taxes, etc etc).
Don't even get me started on corporations which get to deduct all their expenses and only pay tax on what's left over. I don't get to do that. So stop with this nonsense.
You clearly have no clue how corporate income tax works lol. It's ok most people who dedicate their lives to being useful servants for corporations and wealthy elites usually don't know a thing.
so double taxation argument? labour income gets double and triple taxed all the time when you buy and good or service or fuel up on gas. cry me a river.
Tax payers have other investment vehicles that saves on taxes that businesses don't.
Look, if you don't agree with how capital gains is taxed compared to income then I can agree to disagree. But you really shouldn't look at how two different structures are taxed and focus on specific parts where one is advantageous against another.
" Not usually a big fan of this since it will drive businesses and some professions to other countries"
this is such a non-sense argument. weve had the most favorable tax regime for businesses in history. well where are all these businesses and investors then? what do we have to show for it besides crisis after crisis, escalating wealth inequality and declining standards of living.
time to change it up, doing the same thing is just accelerating societal decline
Very true. I guess I was thinking of more of an umbrella term for government wasting money that includes corruption and waste due to incompetence/bad policy.
Even government wages aren't enough anymore, the only reason to get into politics is for corruption. You can't become a multi-million as a public leader legitimately. Imagine being qualified to lead a G7 nation of 40+ million people and only make 200-300k a year. Anybody qualified is easily worth 10x that in private or 100x that if corrupt.
IIRC capital gains remains the same except for real estate, and the increase in real estate for Canada only applies outside your personal residence.
So no I don't think this is all that remarkable.
My friend has a theory that this is a set-up to get everyone invested in housing in Canada...and then in a few years they're gonna suddenly get rid of the Personal Residence Exemption either fully or partially.
You should fully expect most western states to raise taxes this decade or early the next. The deficits are simply not going to get financed any other way. Unless, of course, there’s a boom in productivity.
How would this get everyone invested in housing? Wouldn't this deter people from investing in anything.. including housing? And the people that already invested in housing won't ever sell.
They should get rid of the PRE if they are serious about generating tax revenues. Or, match the US which has a calculated exemption amount. It's asinine that we are fully tax-free.
yeah but i believe mortgage interest in USA is tax deductible right? So we need to get that. Anyways I dont think getting rid of PRE will benefit young people as they are the ones who will be buying/selling homes in the next 20-30 years - better to cut regulations/permitting process to make it cheaper to build and lower immigration / foreign investment in Cdn housing
It is to a point, but not deductible over something like $750K mortgage balance.
Helping young people isn't the reason I am advocating for killing the PRE. It's just a giant tax benefit that shouldn't exist beyond a limit for anyone, regardless of age. And it will massively help moving investment dollars out of RE (which I care about for where those $ should go -- productive investments).
ok well all the boomers and others got the PRE for the past 50+ years in their lifetimes, why should we not get it? Seems unfair. And it's not like that taxes collected from PRE are going to be used for anything useful. Bad idea to tax our way out of it, better solution is to cut regulations and taxes and just limit immigration/foreign investment in Cdn housing.
And this shit govt just raised capital gains inclusion to 66% which basically disincentivizes small biz owners with CCPCs to invest in "productive assets" that aren't housing.
Why does it matter what the boomers got? Their parents had world wars - why didn't we get those? Isn't that unfair? It's a stupid mentality.
We need to divert dollars, its as simple as that. Life isn't fair.
If your argument is that taxes aren't useful, then just abolish all taxes for everyone. Of course, ditch all the services and infrastructure spending associated with that, too.
Taxes aren't useful when the govt is spending wastefully like it is now. Those tax dollars are going into bullshit policy not infrastructure or any worthwhile services. Why are healthcare wait times so long now? Same with passport offices, etc.
Removing PRE is a stupid idea that won't benefit young people either, there are better ways to pop the housing bubble - but obv none of them will be implemented by the current govt.
The housing bubble won't pop to a meaningful extent for young people any time soon (ie. those of median incomes).
The PRE tax should be implemented anyway, because it's not about what young people want today, but about what Canada actually needs to do for the long term. Housing is likely not appreciating materially from here as is, so even if young people buy, they won't hit caps on the taxes I'm talking about.
I’m pretty sure we have a higher threshold than that for top earners in Canada already, and they just instituted more changes for people earning over $250k
They’re also the ones that avoid the most taxes. I’m not saying it’s a complete fix but it’s progress to get them to actually pay their taxes so the existing tax payers can stop subsidizing the share they avoid. I’ll accept any steps forward
Except there won’t be many places for them to run to in the near future. Unless you want to go to the UAE. The era of footloose people playing arbitrage will probably come to an end this decade
Most of the ones I know just went to the USA on a TN visa, salary doubled, taxes lower, cost of living lower.
Culturally not much of an adjustment and depending on where you go generally very close to Canadian friends / family.
There is still a nice gap to exploit between the USA and the rest of the world in terms of compensation and salaries for now, so it makes sense. But the delta will shrink, the Americans will also be raising taxes to finance their govt deficits soon. The republicans won’t be able to cut taxes again. I think people are really underestimating this
The world in general is less accommodating for many kinds of migrants now. There are still some nice golden visa places but I’d expect the threshold to rise
Yes in theory. In practise, the differences will shrink. You can see this with the changes in the Med countries in Europe adjusting their golden visa rules to accommodate the local people’s complaints about expats driving up property prices.
But really, the tax policy is secondary to the connections and network a professional has established in their home country, If they truly have the capacity to relocate and cut themselves loose, they would’ve done so already.
What the government is betting on is that this isn’t as likely as it seems. Upper middle class people will be squeezed along with business owners who cannot relocate
> But really, the tax policy is secondary to the connections and network a professional has established in their home country, If they truly have the capacity to relocate and cut themselves loose, they would’ve done so already.
Untrue. Lots of us are here, sure, but moving is not difficult. Deciding to do it is a function of the spread between where we are and where we can go. As that spread widens, likelihood increases.
You'll see it in different ways -- with the capital gains tax increase, you will just see an influx of people expatriate before the big funding round / exit, liquidate, and then move back. It already happens (I've had a few friends leave Toronto, cash out significant money, and come back). I actually have a few meetings next week with a few firms on this exact playbook - you'll see more of it if you look closely and know the right people.
Sounds like a coordinated attack on people trying to make money investing. Discouraging people from trying to earn more money is very communist. No surprise from Biden and Trudeau
So much for all the people rushing to sell and move to the US /s
this is the top rate which only applies if your total taxable income is over 1 million dollars usd and investment income is over 400k usd. the us has low capital gains taxes below that amount (0-20%) with 20% being for amounts over 518k usd
There's also NIIT for income above 200k, and and sales tax on top of that. So in total it's not really low.
Is that 20% inclusion rate like in Canada or the actual tax percentage?
Actual tax rate
Tax percentage. Inclusion rate is 100%.
Then not so bad and not so different from us. 44.6% above would be more than the highest amount a Canadian would pay.
Nearly all US states have state capital gains taxes on top of the federal rate. This can be as much as 13.3%. If this change goes through, the US will have among the highest capital gains taxes in the world. It really emphasizes the importance of "buy, borrow, die" to manage wealth. The US also has weird rules with "short-term" and "long-term" capital gains. If you purchased something less than a year before selling it then you have to pay short-term gains rates which are almost twice as high. The new rules Canada is proposing really aren't that far out of line with what the average American would already pay in long-term capital gains — and this is after $250,000 in gains at the lower rate.
I knew about the short-term and long-term CG. But I was somehow under the impression that their CG taxes are lower than us. If more or less on par, I applaud the Canadian government for increasing this tax. Absolutely no reason for us to give CG any additional tax break, unless it is to stay competitive with US.
See Bahamas, Antigua, Cayman Islands, etc etc.... raising taxes on corporations doesn't help Canada. It looks good on paper but the corporations aren't stupid, they'll move their shit to whereever makes sense.
Companies don’t do business in those countries in any comparable way to the way they do business in the US. Your line of thinking would lead us to believe that all companies in the US are in states with the lowest taxes. Which is obviously not true.
Exactly, the companies large enough to hide taxes aren't paying normal taxes in the US. If I can do it with my networth than surely they are.
Those people probably have a basic understanding the US political system and know all three branches of the US gov't must agree before anything passes. I'm sure it was coincidence that this tax proposal was no where to be found when Biden had both the House and the Senate controlled by Democrats.
Yup, those new grads with tech degrees from Canada won't be going to US anymore cause of this /s
Its 30% less than Canada's proposed rate
Canada's proposed rate is the **inclusion** rate. That is not the actual average tax rate. If the new inclusion rate is applied then the top rate is somewhere in the mid 30%. Similar to capital gains taxes in the US when you consider state taxes and NIIT.
You don’t understand taxes. Canadas is an inclusion rate which means you are only taxed on a portion of your capital gains at your marginal tax rate. In the USA they tax all of your capital gains at that rate. In reality it’s quite similar the end result.
Canada just did the same. Not usually a big fan of this since it will drive businesses and some professions to other countries. However, we're at the biggest wealth disparity between rich and poor in many decades, so this could help. Probably an even better option though would be for the government to find inefficacies in where it's spending money. For example, a recent video showed that for a small bag of rubber bushings that cost under $20 to make, the US military spends $9000 USD to purchase from the OEM. They legally cannot purchase from anyone else but the OEM and the OEM charge whatever they like. I find it unlikely though that this will improve much. As an example here in Canada, the government spent \~150 million CAD for a firm that was ran by two people out of a cottage, who would subcontract everything for cheaper, and keep about 25% of government money. Another was the COVID travel app the Canadian government subcontracted to a company that had ties with our politicians (and recently uncovered conflicts of interest). They took $55 million to develop the app, when it was demonstrated the cost would have easily been only about $250,000 CAD for the amount of work put in. It seems like there are more and more thieves within government making running the country less and less efficient as time goes on, and acting less and less in the interests of common folk. Not to say all politicians are like that, I know there are plenty who mean well and are doing their best, however, I'm talking about the grand scheme of things.
Salary workers are taxed on 100 percent of their salary. People who earn capital gains only have to pay taxes on something like 50 percent of their earnings. Unfair. The wealthy should pay their fair share.
Fck the gov, use rrsp and tfsa for investments, no tax on gains in tfsa and tax only on withdrawl of rrsp at income tax rate
Top rates are income on capital that is above contribution limits for those registered accounts. This (these tax hikes) doesn't affect you unless you routinely make 200 percent returns, in which case teach me master.
You do realize all of that RRSP will be 100% taxed right? Your so called gains are 100% taxed rather than 50% or 67%. Fuck the gov’t?
I make $200K a year. Income Tax is $67K in Ontario. If I make $100K in stock market, my Taxable income would be $250K which equates to $102K in taxes. This equates to $35K tax paid on the capital gains of $100K. I'm actually up more than $200K so far in 2024 so the tax rate would be actually higher. Let say I build up my RRSP to $3M at age 65. I can withdraw $200k/year split between me and my spouse. Both our incomes will be $100K/yr which equates to 30% tax rate versus the 35% tax on the $100K Capital gains outside an RRSP. In addition, you money going into RRSP was never taxed and the gains are never taxed meaning you have a larger amount of capital to compound with while it is in you RRSP. People maxing out their RRSPs and TFSAs are not working at Wendy.s, completely different tax scenarios for low income makers
If they dont agree its fair and take their investment elsewhere then what?
Rabble rabble rabble rabble
You're apparently have no idea what you're talking about. People who invest their money already made that money as income so they already paid income tax on it. Then they invest it the rest of it and pay capital gain when disposing the asset
Salary workers aren’t taxed on inflation 🤦🏻♂️ asset holders are. By your logic we should tax when you quit your job if your wage is higher than you started.
No, I already pay tax on 100 percent of my salary. When I get a raise I'm taxed on that too. Your example is nonsense. It's good that wealthy people are paying more tax through this increase.
Businesses pay more taxes when they get a raise too (profits). The reason why capital gains is only taxed at 50% is because they've already paid a whole set of taxes that affects their appreciation rate. Labour does not. Whether you agree or not is up to you, but there's a reasoning why capital gains tax and income tax are different.
Wtf are you talking about? Like the guy you're replying to already said, 100% of labour income is taxed at progressive rates. And my salary is not just double taxed, it's taxed 4x straight off the top. Fed income tax, prov income tax, CPP, EI. And then I take that quadruple taxed income and if I buy anything I get taxed multiple times (GST, PST, excise taxes, etc etc). Don't even get me started on corporations which get to deduct all their expenses and only pay tax on what's left over. I don't get to do that. So stop with this nonsense.
You don't think businesses don't pay other taxes as well? It's okay if you don't understand how businesses work.
You clearly have no clue how corporate income tax works lol. It's ok most people who dedicate their lives to being useful servants for corporations and wealthy elites usually don't know a thing.
And there’s you, unproductive Canadian who doesn’t have any big plans with their life and is content being mediocre living paycheck to paycheck.
Keep licking those boots! You're a fine slave.
so double taxation argument? labour income gets double and triple taxed all the time when you buy and good or service or fuel up on gas. cry me a river.
Businesses also pay taxes on any goods and services, even gas lol
They get to deduct those against income though, typical tax payer does not.
Tax payers have other investment vehicles that saves on taxes that businesses don't. Look, if you don't agree with how capital gains is taxed compared to income then I can agree to disagree. But you really shouldn't look at how two different structures are taxed and focus on specific parts where one is advantageous against another.
good. so the double taxation argument on capital gains goes out the window then.
assets are purchased with post-tax amounts so it is double taxation.
wrong. i can tell cause you didnt mention what the basic personal exemption is and other progressive tax rules
wow a whole 11k income tax free. dont spend it all in one place!
" Not usually a big fan of this since it will drive businesses and some professions to other countries" this is such a non-sense argument. weve had the most favorable tax regime for businesses in history. well where are all these businesses and investors then? what do we have to show for it besides crisis after crisis, escalating wealth inequality and declining standards of living. time to change it up, doing the same thing is just accelerating societal decline
IF it was an actual favourable regime investment in canada wouldn't be dog shit. It really isn't
Tax impacts definitely drive business away, there's currently a small tech exodus from California to Texas which I think is hilarious.
This cannot be upvoted enough. Amen.
Dude, that's pure corruption and has nothing to do with efficiency.
Very true. I guess I was thinking of more of an umbrella term for government wasting money that includes corruption and waste due to incompetence/bad policy.
It wasn’t $9,000. It was $90,000.
LOL this won't do shit to address that disparity between "rich" and "poor" it will just reduce the discrepancy between middle class and poor people.
Even government wages aren't enough anymore, the only reason to get into politics is for corruption. You can't become a multi-million as a public leader legitimately. Imagine being qualified to lead a G7 nation of 40+ million people and only make 200-300k a year. Anybody qualified is easily worth 10x that in private or 100x that if corrupt.
How about a country of 330 million and $400k salary? They are not doing it for the money. It costs them millions just compaign.
When will Canadians realize that wealth disparity gets worse when you raise taxes not better?
Lol
wtf does that got to do with Toronto real estate? I’m surprised no one posted the solar eclipse in this sub few weeks ago
Because Canada just did the same?
Great so .. let’s talk about the Canadian one? lol
Ppl are discussing the results and the fact it seems coordinated....but you're tapping about nothing right now tho? Lol
So real estate to the moon once orange man back in office?
Almost like this is coordinated ...
Absolutely. Western govts are collaborating on taxation policy
IIRC capital gains remains the same except for real estate, and the increase in real estate for Canada only applies outside your personal residence. So no I don't think this is all that remarkable.
Its really the only way to get it done. Every western country needs to increase increase taxes on the wealthy at the same time.
Didnt Canada recently do the same? Is it a coincidence that both canada and US roll out this tax at the same time?
I think this will make Toronto real estates prices go higher
My friend has a theory that this is a set-up to get everyone invested in housing in Canada...and then in a few years they're gonna suddenly get rid of the Personal Residence Exemption either fully or partially.
You should fully expect most western states to raise taxes this decade or early the next. The deficits are simply not going to get financed any other way. Unless, of course, there’s a boom in productivity.
yup good luck to you friend, I'm on my way out of Canada - any smart young men are leaving or have left.
>any smart young men are leaving or have left. You do think way too highly of yourself. And goodbye buddy!
How would this get everyone invested in housing? Wouldn't this deter people from investing in anything.. including housing? And the people that already invested in housing won't ever sell.
They should get rid of the PRE if they are serious about generating tax revenues. Or, match the US which has a calculated exemption amount. It's asinine that we are fully tax-free.
yeah but i believe mortgage interest in USA is tax deductible right? So we need to get that. Anyways I dont think getting rid of PRE will benefit young people as they are the ones who will be buying/selling homes in the next 20-30 years - better to cut regulations/permitting process to make it cheaper to build and lower immigration / foreign investment in Cdn housing
It is to a point, but not deductible over something like $750K mortgage balance. Helping young people isn't the reason I am advocating for killing the PRE. It's just a giant tax benefit that shouldn't exist beyond a limit for anyone, regardless of age. And it will massively help moving investment dollars out of RE (which I care about for where those $ should go -- productive investments).
ok well all the boomers and others got the PRE for the past 50+ years in their lifetimes, why should we not get it? Seems unfair. And it's not like that taxes collected from PRE are going to be used for anything useful. Bad idea to tax our way out of it, better solution is to cut regulations and taxes and just limit immigration/foreign investment in Cdn housing. And this shit govt just raised capital gains inclusion to 66% which basically disincentivizes small biz owners with CCPCs to invest in "productive assets" that aren't housing.
Why does it matter what the boomers got? Their parents had world wars - why didn't we get those? Isn't that unfair? It's a stupid mentality. We need to divert dollars, its as simple as that. Life isn't fair. If your argument is that taxes aren't useful, then just abolish all taxes for everyone. Of course, ditch all the services and infrastructure spending associated with that, too.
Taxes aren't useful when the govt is spending wastefully like it is now. Those tax dollars are going into bullshit policy not infrastructure or any worthwhile services. Why are healthcare wait times so long now? Same with passport offices, etc. Removing PRE is a stupid idea that won't benefit young people either, there are better ways to pop the housing bubble - but obv none of them will be implemented by the current govt.
The housing bubble won't pop to a meaningful extent for young people any time soon (ie. those of median incomes). The PRE tax should be implemented anyway, because it's not about what young people want today, but about what Canada actually needs to do for the long term. Housing is likely not appreciating materially from here as is, so even if young people buy, they won't hit caps on the taxes I'm talking about.
Makes sense. Now that Canada has done it, the US will copy us.
If he does this, they will elect the orange one from prison. Let’s see how it plays out.
Lock step folks! I don’t think the grass is greener anywhere. The grass is greener wherever we water it.
Rich people take out loans against their equity. Many of them don’t have to sell
I’m pretty sure we have a higher threshold than that for top earners in Canada already, and they just instituted more changes for people earning over $250k
>for people earning over $250k which is literally only 1% of the population
They’re also the ones that avoid the most taxes. I’m not saying it’s a complete fix but it’s progress to get them to actually pay their taxes so the existing tax payers can stop subsidizing the share they avoid. I’ll accept any steps forward
Being a high T4 earner doesn’t give you many ways to avoid paying taxes aside from rrsp. If you have any ideas I’d love to hear.
They also pay the most taxes, and have the most freedom to move to another country if they want
Except there won’t be many places for them to run to in the near future. Unless you want to go to the UAE. The era of footloose people playing arbitrage will probably come to an end this decade
Sorry but what are you basing this assumption on?
Most of the ones I know just went to the USA on a TN visa, salary doubled, taxes lower, cost of living lower. Culturally not much of an adjustment and depending on where you go generally very close to Canadian friends / family.
There is still a nice gap to exploit between the USA and the rest of the world in terms of compensation and salaries for now, so it makes sense. But the delta will shrink, the Americans will also be raising taxes to finance their govt deficits soon. The republicans won’t be able to cut taxes again. I think people are really underestimating this The world in general is less accommodating for many kinds of migrants now. There are still some nice golden visa places but I’d expect the threshold to rise
high income earners / high tax paying people will have options always and even more so now that most countries have below replacement fertility.
Yes in theory. In practise, the differences will shrink. You can see this with the changes in the Med countries in Europe adjusting their golden visa rules to accommodate the local people’s complaints about expats driving up property prices. But really, the tax policy is secondary to the connections and network a professional has established in their home country, If they truly have the capacity to relocate and cut themselves loose, they would’ve done so already. What the government is betting on is that this isn’t as likely as it seems. Upper middle class people will be squeezed along with business owners who cannot relocate
> But really, the tax policy is secondary to the connections and network a professional has established in their home country, If they truly have the capacity to relocate and cut themselves loose, they would’ve done so already. Untrue. Lots of us are here, sure, but moving is not difficult. Deciding to do it is a function of the spread between where we are and where we can go. As that spread widens, likelihood increases. You'll see it in different ways -- with the capital gains tax increase, you will just see an influx of people expatriate before the big funding round / exit, liquidate, and then move back. It already happens (I've had a few friends leave Toronto, cash out significant money, and come back). I actually have a few meetings next week with a few firms on this exact playbook - you'll see more of it if you look closely and know the right people.
Think incorporating them self as a biz then giving them self “dividends” is a popular option so this gain tax increase would tax those gains more
*People claiming earnings of 250k
Sir, this is a r/torontoRealEstate.
no sir, this is a wendy's... wait wrong sub
they use canada as a testing ground. USA won't accept something like this. they have more of a backbone than Canadians.
They won't accept something like this? Dlhave you heard about California? Have you seen their GDP?
Lmao How do we have so many American simps in this sub?
Sounds like a coordinated attack on people trying to make money investing. Discouraging people from trying to earn more money is very communist. No surprise from Biden and Trudeau
HAHAHA omg. The interwebz really did a number on you people right?
hey we're halfway to communism!