Freeland to Scrap Canada’s Capital Gains Hike If She’s Elected
Freeland to Scrap Canada’s Capital Gains Hike If She’s Elected
Do I smell austerity for the working class?
I'm fine with a lower inclusion rate if we cap it at a fixed dollar threshold.
If you make $1M in a year from capital gains, just tax it 100% as income.
The real problem with this is executives getting paid primarily in stocks and paying a lower average tax rate than the middle class because 50% (currently 33%) is excluded.
Also, Freeland being the #2 in Trudeau's government, and all her policies being to undo the things they did looks bad to me. I can't shake that either she was ineffective or they were just bad ideas.
Getting paid in stocks doesn't affect how much income you report though. Shares are taxed as income as soon as they vest, and options are considered income when you exercise them at the difference between fair market value and the strike price.
It is only additional capital gains after that point that are taxed at the reduced rate because it is the same starting point as if you bought the shares on the open market.
If you make $1M in a year from capital gains, just tax it 100% as income.
Capital gains don’t accrue until you actually sell your shares. If you try to tax people like this then they’ll just never sell the shares. Instead, they’ll use their shares as collateral for loans and lines of credit if they need cash.
Extremely high taxes lead to very low tax revenues since people do everything possible to avoid paying them. Conversely, lowering a tax rate can and does increase tax revenue as people start paying the tax instead of trying to get around it (often because the cost of getting around the tax makes it no longer worth it).
she's following into Harris' footsteps. Courting conservative voters... bad move
The parallels between the republican/democrat and conservative/liberal parties in that dems/libs are to some degree better than the more right-wing parties but still bent of @#$%ing the working class is tough to stomach
Oh, so she doesn't want to win, got it.
Of course Bloomberg posts this jumping up and down.
globe and mail editorial endorsement of Freeland to follow 🤦 (facepalm)
That paper has gone down hill.
My dad loves the new direction, I find it's an editorialized mess, so we don't talk about the globe and mail anymore.
Of course she will. She’s a Nazi. That’s not a wild accusation because I don’t like her- she has been linked to and openly defended Nazis in multiple scandals.
And fascists defend capital. They are one and the same.
The capital hains tax is a double tax, not a seperate tax.
A person gets paid, government taxes the person for making money. With the money the person has left, they invest that money, they withdraw or sell their investment, they get taxed on that money again, the capital gains tax.
Capital gains tax serves as a punishment for being smart in business and financial management, typically from people who are envious and jealous that other people are successful and they are not, so take it away through taxes to oppress all people equally. For that reason, some people turn a blind eye to anyone who commits tax evasion.
They only get taxed on the gain you made on that money. It's a tax on the additional revenue an investment provides.
Capital gain tax is already a measure for the rich, since it is only taxes on 50% of the gain. People that can have significant revenues from investments (eg people with money), will be taxed at much lower rate than if they would make that same money through a job.
Let's give you an example:
You have a salary of 100 000$ and have 1 000 000$ in investments. Your marginal tax bracket is 40% (for this exercise let's also consider there is no additional tax bracket). After tax, your salary is 60 000$. With your investment, you make 10% annually, so that is an additional 100 000$! If it were taxed as revenue it would cost you 40 000$ in taxes, but since capital gain is only taxed at 50%, you only pay 20 000$ in taxes. That leaves you with an additional 80 000$! So even if you're making the same revenue from your salary than from your investments, you have more money left in your pocket from the money made from an investment than from your salary.
That's why it's considered a measure for the rich, you need to be able to have a significant investment to be able to be taxed at a lower rate than you should.
Well done keeping your composure while explaining!
It's always austerity for the working class.
i agree that the rich need to be taxed, but i don't think taxing these rich people is what will solve most of our problems.... taxing a few thousand rich people who made $1M on stocks or whatever is a drop in the bucket compared to our real problems.
what are the real problems? billionaire oligarchs plundering our country. what are the exact steps to fix the problem? i'm not smart enough to figure it out. but we can start by ending corporate handouts, or things like oil companies sticking us with the cleanup bill when the leave town. fix price gouging on groceries and telecoms. i think actions like these are going to have a huge impact on the prosperity of working canadians versus an increase in a capital gains tax on the moderately rich.
First off, this move is antithetical to the idea of making the wealthy pay their fair share of taxes. Second, if you're making $1M on capital gains in a year, you're not upper middle class or lower upper class - or whatever 'they're not that rich' argument you intend. Third, and most importantly, the upper middle class/lower upper class (to use dated terminology) being taxed on their capital gains is a by-product. These taxes also catch, probably as they are intended to, people making 10 million or 100 million (I can't imagine lol). And let's not forget, they didn't work an hour to make that money.
How come only those of us with jobs should pay income taxes?
The working class ain't "rich" people though