Canada's Controversial Capital Gains Tax Change
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- Опубліковано 8 тра 2024
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NOTE - The video indicates the government's forecasted budget deficit for 2024-2024 is $38.4B. In fact this figure was updated in the budget to $39.8B. Apologies for the error.
Loonie Doctor's Tax Harvesting Tool: www.looniedoctor.ca/personal-...
Canada's Budget: budget.canada.ca/2024/home-ac...
Canada's federal government recently announced some controversial changes to how capital gains are taxed. Let's go over the changes and discuss whether or not the online backlash is warranted.
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DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers
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Canadians really are Cool, United, Creative, Kind, Stable. Now read the first letters.
In Canada, for how long do you have to live at a property for it to be considered your principal residence?
As a public CPA, our office was receiving calls all week long from clients asking about the new budget. This video was so well put together, we may start sharing it ourselves! Thanks for spreading hard info for a poorly-understood subject!
Proof that most finance influencers are idiots. They don't even know the difference between a tax rate and an inclusion rate 😂
Somehow I get the feeling that those influencers who don't know the difference might not be clearing 250k in taxable capital gains per year anyway 😉
@@MillennialMoron safe bet
@@MillennialMoron Or they do know the difference, but they spread misinformation anyway in order to get outrage likes and follows.
Which leads me to the question: why do you even have inclusion rates?
Wouldn't it be easier to simply have a different tax rate?
That's utter nonsense. You didn't understand it.
The fact that the inclusion rate wasn't explained in any main stream news source I read on this, i think might have added to the confusion.
I'm grateful for a proper, sane explanation of this.
Channels and individuals not explaining correctly probably exploit specific angles for engagement purposes...or political goals.
I don't think they understood it themselves, I once saw NBC reporters fail to understand the tax bracket system.
My main problem wasn't the tax code change, it was the budget that accompanied it. Incredibly high spending on an indebted country
i wonder why media properties owned by investors living off capital rather than holding a job want to paint capital gains taxes as bad for the average non-millionaire 🤔
Cause they’re all owned by the right 😅
@@nlz1I am also confused by this.
Do you think they are only interested in their own selfish interests?
This is just ridiculous. Now instead of paying the current 0% on my numerous capital losses, I'm going to have to pay double. Can't an honest small time investor catch a break?
Thoughts and prayers 🙏
@@ThePlainBagel "thoughts and prayers." redditors: *absolutely devastated.*
That's not how it works...
@@Danny-vd1njNo no no, he IS paying double!
What's double zero? @@Danny-vd1nj
I’ll tell my parents that according to Loonie doctor’s calculator, We can save $8 on the cabin tax if they die before the end of the financial year
try not to tell them about m.a.i.d. :P
I think they only have until June 25
Hilarious
Thank you for such a great explanation. I wish all medias and channels were as clear and detailed.
So disappointed every time I have to explain the basics of our taxes here to people. The light bulbs I see come on after explaining tax brackets alone is blinding!
Unfortunately, clear and detailed news doesn't increase viewership. Sensationalism has killed journalism
Most mainstream media have no incentive to be clear given the fact that they are owned by billionaires who have their own political agenda.
😅Being clear and detailed won't generate views, people want sensationalism and drama.
Which media outlet was not clear on this?
Please keep doing what you're doing, your channel has been of great value to me, being a young professional in Canada who doesn't work in the financial sector but still wants a sane explaination to have a passing understanding of how these changes impact me. Much respect, thank you. - PS The Peak is the Canadian equivalent of morning brew and have also found that valuable.
Thank you for offering a level-headed explanation of this! It's been all over the news but until this video I had no idea the actual situation.
You truly are a breath of fresh air in the youtube landscape
An additional thing to realize is that a couple of decades ago, Ontario doctors were not allowed to incorporate. That ability to incorporate was then offered to doctors so that in return, they would accept lower payments from OHIP. So in essence, the government said ok we will pay doctors less but they get to incorporate and save some money that way, but now we are taking that away. Doctors have no pension, sick leave, paid vacation…etc. It feels like a betrayal.
The value of this tax deferral over 20 years is quite impressive. Doctors will continue saving in corporations after this change due to the power of tax deferral. Especially if they have a timeline over 8 years. Doctors can also lobby the Ontario government for more pay.
Yes, I agree the tax doesn’t completely negate the advantages of incorporating, and doctors can still save and get some benefit from tax deferral and compounding. However, it still feels like a betrayal of the good faith of the original deal, like a bait and switch. Back in the day, doctors could have said no to the offer of the ability to incorporate, and just asked for higher fees up front. Also, the increased rate affects any capital gains you want to realize in the future. If a doctor has been compounding for 10-15 years, then this isn’t just more tax going forward, you are being retroactively taxed for the last 10-15 years of financial planning.
@@Xi-op7gg They have a couple months to still take advantage of the old inclusion rate.
True. However, realizing a huge amount of capital gains all at once has other tax implications. For example, that eats into the small business deduction limit. The more capital gains you realize, the less of your corporate income is taxed at the more favourable rate, so you lose out either way.
It's on capital gains over 250K a year... If you are cashing out over 250K a year just on capital gains I don't feel sorry for you having to pay an additional few thousand dollars in taxes.
This was a great video, as usual. I greatly appreciate you contextualizing the information (e.g. the productivity problem mentioned, graphs/tables of Canada's tax vs other countries) and giving a quick TLDR (seemingly quick enough for people already in the know to ignore and short enough to continue on with the topic you wanted to address) economic concepts like trusts. Thanks!
Also worth considering: everyone knows this change is coming, so if you sell now to realize capital gains you'll be selling into a market that likely won't offer you the same price it would otherwise. Simple supply and demand.
That applies to canadian assets. But if you have international stocks, they wont be affected by the canadian tax changes
Somewhat cynically, I'm wondering if that was part of the plan of this tax change. If a bunch of investors decide to dump their stock of housing onto the market, that could push prices lower in the short term, just in time for the election. Still a good policy, and I don't think we should be giving capital gains a free pass, but the timing is a bit interesting.
@@NLuck-eh5cd Bursting the housing bubble is long overdue.
It seems the Canadian CGT framework is very similar to ours in Australia and there are economists here agitating to make a similar change to the discount level. I can see how a small reporting error or piece of misinformation could lead people to believe the tax rate is going up dramatically. These explainer videos are important for that reason alone.
Thank you TPB, great explanation on a complex issue...
Pirate bay?
@@tbird81 trailer park boys
Happy 6th Birthday to you sir and a happy Friday to your family. Thank you for keeping it real and breaking down the bull for us mortals !!
14:30 that graph is super cool and concise. I appreciate that very clear explanation
Was hoping you would make a video on this. Thanks for the clear explanation.
Informative and useful. Thank you for providing valuable input.
Really great explanation. This is going to be linked a lot from Twitter ^^
Thank you for unbiased and easy to understand explanation 👍🏻
Excellent as always
Just completed my tax course for my undergrad and love how you covered all the different tax impacts! Amazing content as always Mr. Richard
Insert enraged political comment here!(I do not know what is going on I do not live in canada)
Thank you for even knowing that we exist
truly sad for canada and all my strawberry picking friends over there (not a joke)
@@zedev444 How many Canadian earn (profit) $250,000 + per year ? looooooool
LOUD NOISES!!! AHHHHHHHH!!!!!
RAWWWR TAX TAX TAX SOMETHING SOMETHING COMMUNISM RAWWR
Thanks so much for explaining this.
Thank you A LOT for this video… no other place I saw this explanation and I did think it was 66% tax 🤦🏽♂️
American here... while our system is different, it has similarities. What is the same is the complete lack of understanding for most people plus the media always reporting on it wrong. People freak out about capital gains taxes and last year my total gains taxes were about $250.
Awesome explanation 🙌💪
Bro thanks for the info
Richard,
You're the best! Always enjoy your videos and learning soo much domestically as well as internationally on the many subjects you cover.
Keep up the good work--love it!
-Ervin
Thanks for the information
This was informative. Thank you.
Thank you for making this video. This is the most rational breakdown I've seen of the capital gains tax change and it's potential impact. 🚀
Sounds good to me. Thanks for the great explanation!
Great explanation! I've been seeing so much FUD on this lately and I'll be posting this video in response now. The change isn't nothing but it also is only a small impact on a small number of mostly wealthy people.
Thank you for the explanation. I'm fairly novice but I feel like you got me to understand the situation.
This!!! This is what I've been saying since they released the budget. You are obviously way more eloquent in your explanation than I ever could be. So thank you for laying this down so plainly (lol). Too many click bait headlines about how everyone is rushing to sell off their assets, when we actually need more content like this.
Thanks for giving a clear and balanced explanation of the changes :)
Tax conversations are 🔥
Hey, appreciate the angle taken and delivery method going over canuck topic. Hard for me to take in any data content about canada, I get too upset / am unstable so, it's hard to see the problems here, live through em and stay above water (crushing life responsibilities but they're mine to bear, it's ok heh). But it's good to keep some pulse on my home, this was a really painless video for me in that sense.
Again, thanks for the vid, my dude
~a random canadian subscriber dude
This is staggering that there's so much confusion and misunderstanding about such a simple concept/change.
Man's spitting facts. Thank you for such a a concise explanation, that's very helpful. Although I have a lot of issues with my country, I can't say this is a big one for me. We have bigger fish to fry imo
Your gonna have a different opinion when all the wealth flees the country and you cant find work.
@@curtis1397didn’t see that happen between 50’s -70’s when the inclusion rate is even higher. Stop being so dramatic.
@@freedomlife3623 You mean when you could save for a down payment in 1 year and pay off a house in 10? Now it takes 10 years to save for a down payment and over 30 to pay it off.
Your also talking about a pre-globalized economy, competition is now global. Businesses aren't just competing against joe blow down the street (who also had to pay that inclusion rate). They are competing against every single business in the world that is even remotely similar, many of which are in countries that are much cheaper to operate in.
Use some critical thinking and stop eating the spoon fed lies by politicians. When someone challenges your ideas, ask why instead of slinging mud and calling people dramatic. You might learn something.
@@freedomlife3623
Even if it does happen, the correlation could be insignificant. So many factors at play.
@@curtis1397you’re a small business owner that will barely be affected by this unless you make anywhere in the neibourbood of the numbers presented. It’s crazy to me how many wealthy or would be wealthy people are flowing into videos like this to dissuade people from accepting this change.
This change is good, it was good when it was higher and is still good now. The rich have harvested the Canadian economic landscape for far, far too long.
Very good explanation. Thanks a lot
Another point to make here is that if a corporation earns more than $50k in dividend income, they lose their small business rate at $5 per $1 over 50k - meaning if a doctor has $1M in shares of a company with a 5% yield, they then lose their small business rate and pay the same corporate rate as Royal Bank. So this is a pretty big deal in terms of what it means for small businesses. Especially where they do not get the $250k carve out at the old rate on gains.
Imagine when you die, you pay tax. But if you leave any property behind for your family, you get taxed as well. Cant even escape tax in death.
Are you just learning this now?!
That's something that really irks me about folms complaining online sometimes, they are complaining about something they learned for the first time that's been around for decades, or in some cases centuries, but treating it as though it's a new thing.
I despise the concept of generational wealth, so I have little sympathy about estate tax. However, if it so bugs you, remember to go do something political about it.
...or do as a lot of other folks might say, leave. I can think of a few reasons why myself. But taxes aren't necessarily one of them.
That said all the reasons I can come up with for leaving were all problems we've been dealing with for over 20 years. Recently heard someone say you can track the problems all the way back to Pierre Trudeau...and I'm going to guess it can be taken further.
@@chillinchum Centuries? Do you know how the tax system has changed over the past 50 years? It's a simple question. What percentage of the population had to pay death tax in the 1980s?
@@cabbagedestroyer1693 Yes, centuries. France has had inheritance taxes since the French Revolution and Britain since the middle of the 19th century. The concept of taxing inheritances isn’t exactly recent.
@anthonybousquet3590 That is extremely misleading. Yes there was a concept that only applied to 0.1% of the population. Inheritance tax in Europe applied to massive estate owners, and did not apply to the common people.
Inheritance tax in the US didn't even exist until 1980s, in which only about 1% of the population was affected.
In the British Empire, the succession duty act, again, only affected a small proportion of people and only taxed people between 1 to 10% as opposed to 30 to 50% that we have today.
In another word, unless you don't think there's a difference between 1% of the population being taxed at a maximum 10% on Inheritance vs. 100% of the population being taxed at a minimum 30%, then I don't know what to tell you.
This really screws over professionals - accountants / physicians / lawyers and incorporated business owners who hold investments in their corporation for retirement.
Between income taxes at more than 50%, consumption taxes of 15%, loss of small business rates if you receive dividends and this, it feels very much like a targeted attack on these businesses. Especially given that they don’t qualify for any carve out at the old rate the way individuals do.
There is absolutely nothing fair about paying this much in tax in my opinion.
I would like to hear about capital loss and how to use them Thanks for the capital gains tax talk.
For every crave-out and loophole, there will be tax lawyers who help you to avoid the higher tax.
It's not that simple. There's only so much that can be done, and going down various loopholes is never cost free, often times it can be counter-productive and may have risks that can go the wrong way. In addition, the legal fees cost money, which means there's less take home to re-invest.
This is the first video on this issue that breaks it down in a clear and concise way
Great explanation. I already knew some of youtube videos made a big out of it were pushing out misinformation. I wish people would list the sources directly in their videos but a lot of them just bring up a draw pad and add theoretical numbers...
Nice job on an objective explanation of the budget policy.
Another reasons Capital gains is a lower rate is due to inflation the real profit in capital gains is less than the nominal amount that is taxed. I believe in Australia they used to tax only the capital gains minus the inflation over the period of ownership. But this was simplified to a 50% discount, as in Canada, to be simpler. Australian Labor lost the 2019 election with part of their platform to decrease the discount to 1/3rd as Canada is introducing. I can see this change being fair when you have low inflation as we had from 1990 to 2020, but with the much higher inflation rate recently the 50% rate of discount is probably fairer.
Very informative. Thanks for trying to remain objective! Still feels primarily a tax on the rich, but I didn’t expect all the nuance.
Great video!
Expect to see wash sales whereby a owner of an appreciated asset sells and buys it the same day triggering a capital gain taxed under the old rate and a new higher cost base for gains accrued in the new rate.
I'm starting to think that having only one tax rate for personal income, corporate tax and capital gains would actually lead to lower net taxes for all categories.
Even just the cost savings from not having to set up and maintain shell corporations and complex tax-avoidance structures would add up to something significant.
Great video
Self-employed guy here: There's a host of reasons to incorporate even if it's a sole proprietorship. My reason my employer forces us all to make companies so he can deny that we are employees, but the non-compete agreements we signed are completely unenforceable.
Sounds like the entertainment industry...
Not uncommon for some businesses to do this, some even only employ workers outside the country so they can cut down on paperwork and taxes.
It's a shady as hell practice.
@user-oj7uc8tw9r Not always. When outsourcing stuff online you're competing against people in third world countries with internet so often the best bang for the buck is someone who speaks English as a second language.
@@samsonsoturian6013 Nearly all foreign countries have people who are trained to speak English as a second language and rather well in technical professions.
It is not as competitive an edge as you think. The US is way behind in this regard.
I dont believe a sole prop is the same as incorporating
How are capital gains by companies treated in the US? Aren't they taxed at 100% of their value(instead of 2/3 now in Canada)?
There is no capital gains preferential rate for C-corporations in the US. The only "good" thing about capital gains for C-corporations is that they can offset capital losses, which are otherwise not deductible, unlike with individuals which are allowed $3,000 in capital losses per year with indefinite carryover, while C-corporations have only a 3 year carryback and 5 year carryforward available. There are vastly fewer directly taxed corporations per capita in the US than Canada though, as pass-through entities (some of which may be S-corporations which are technically corporations but aren't taxed directly like C-Corporations) are far more popular. It would be insanity in the US to suggest that a doctor run their business as a C-Corporation and accumulate money in the business in the way that is discussed here. Instead they will have an S-Corporation (or maybe a partnership) and the business's profit will flow through to their personal return, and they can freely add and remove capital from the business without tax consequence.
Please also note there is a large difference between a "company" and a "corporation" when it comes to tax law. A "company" is a generic term that US tax law never uses, while "corporation" is a specific term that is used.
@@stevenglowacki8576 thank you. It was really instructive
Interesting - here in Australia, corporates are entitled to no CGT discounting.
Thank you for the information. I thought they were raising taxes on home sellers at a time when interest rates are high.
Staying invested vs divesting before June 25th also assumes govt doesn’t change the tax code again during that 10 years. Does anybody actually believe that?
Ah, my favourite UA-camr!
I'm embarrassed how small this change is and how dramatic of a controversy has been created out of an ant hill.
Good idea honestly but without exception, for example, for clinic owners i fear this will hurt doctors who have incorporated to fix income from owned clinics and Canada isn’t in a place where the medical system can take any hits. With that said however, it’s at least a semi positive step in a decent direction.
Step in the right direction? Making it less favorable to set up a business in canada while giving more money to the state to waste is a step in the right direction?
When did so many people become communists? Is it the younger generations?
@@epictetus3406a lot of people on the internet never leave their house so they don’t understand how the world works
Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
Finance education is so important
I have been sticking random comments trying to explain that is only a 16% increase on the inclusion. But i don't think i articulated it well. This video did a great job and will be my go to to send to people to help understand the change.
10:20
Surely it's not that expensive to do this in Canada. A similar situation here in Sweden cost me an equivalent of 2700USD.
We know how expensive it is, the Government of Canada is estimating that increasing the capital gains inclusion rate will bring in about 4 billion per year in new revenue, that's 4 billion per year not going back to shareholders of these corporations.
@@barettmacwell, someone have to pay for all those programs, why should capital gain being taxed much lower than regular income? We have a corporation, will be happy to contribute a bit more to build a better community.
@@barettmac That said, after a good 30 years of near poverty I landed into some investment money (the old fashioned way, I inherited it) five years ago and was shocked to discover how easy it was to build capital one you had some to invest. It's been awfully close to a free ride for me, and I'm as sceptical of free rides as Adam Smith was; so I welcome the increase in inclusion rate if it's going towards fixing the market failure we're seeing in housing.
Man, you nailed it (coffin).
Is there any legal reason that an elder person with a cottage couldn't sell their cottage to their children for something like $1 while they're still alive rather than leave it in the will? And then would the CRA only count the sale value, or would the still tax based on the appraised value?
This prime minister is lazy and spineless. Collecting taxes in theory would be find if citizens got quality services in return. Instead, this wasteful prime minister has done nothing but incur fumble after fumble and make the lives of Canadians worse off. I'd also like to mention that I'm so tired of the lack of creativity of this government. All they know to do is: a) introduce taxes or b) introduce tax free schemes or bank account. So unimaginative and useless.
We are at a point where people would much rather buy single family homes than invest into a business in this country, and the smooth brained government has done nothing to inspire meaningful change.
Utterly useless and absolutely hopeless. What a waste of the past 9 years. ggs to the middle class in Canada.
The question is, what exactly are the reasons that all these capital assets are continually going up in price all the time?
My guess is that anyone that could be affected by this significantly will probably be getting a big raise to pay for it.
Any business person who thinks they can just move to another country and start a business there as easily as doing so in the country they are familiar with are dreaming. Different countries have so many differences that emigrants are unaware of and/or don’t fully understand you are increasing your real risks that can easily outweigh any imagined benefits of this one thing.
The rich have an attitude of not giving an inch with regards to tax rates, so whether it's 0.0001% increase or 15%, they will cry the sky is falling, make threats and run hit pieces and propaganda so you might as well go for the hail Mary. If they wanted to set up business in another country they would've done it already if the market is lucrative. California minimum wage is like $18-$20, corporations love whining about minimum wage increases, and they still set up shop here anyway because it's too big a market to ignore.
It's funny to see how similar Canadian tax law is to Australian. We have a 50% CGT discount (i.e. inclusion rate 50%, with some exceptions). It was a bloodbath at a recent election where repealing that discount was one of the notable policy changes being brought to the table.
That only applies if you hold the asset for at least 12 months though.
Both were british colonies so similar culture
I think the budget deficit will decline with the implementation of Trans Mountain, as it will add significantly to the export surplus.
0:51, i guess Tweeting is now a verb that means sending out a public short text based message hahaha.
NOW!? Have you been living under a rock for the past 15 years?
@@sor3999 before elon renamed twitter to x nobody said, this person tweeted on treads or another platform. Now tweeting can be on any platform
My instant thought was that it'll disincentivise people from selling assets (most likely property), not increasing supply in the long term, and therefore driving up prices. People will just use assets as collateral for loans and they'll never be sold, whilst increasing in value.
Time to tax unrealised gains as well
@@ziglausya then the market crashes
@@jimjam6598it needs to, good (I say this as someone who will lose if that happens)
you address supply by building more
@@ziglaus Well that’s just a catastrophically bad idea. Much worse and much more damaging idea than these current tax changes.
The real concern is deemed disposition at the death of the second spouse; I met recently with a registered nurse who was leveraged to the hilt with mortgages on rental properties. The new capital gains change will make it difficult for her to sell the properties off while still making a decent profit to fund her retirement; but it would be even worse if she were to leave the properties to her children. The difference thanks to the new inclusion rate is going to be almost a million dollars in liability. She is not one of Canada’s wealthiest people.
@ThePlainBagel What do you think of asset allocation? Assuming an expected capital gain of 10% and interest gain of 3%. An allocation of 70% stocks-30% bonds would result in a marginal income tax of 70% * 10% * 50% + 30% * 3%, or 4.4%. After the change, the marginal income tax would be on 70% * 10% * 2 / 3 + 30% * 3%, or 5.57%. Instead, it would be possible to change the allocation from 70-30 to 40-60, and the income tax would change to 40% * 10% * 2 / 3 + 60% * 3%, or 4.45%. Is it possible the tax increase could benefit Canadian Bonds, or the federal, as the demand for their bonds would increase?
So... Looked at any Nomad Capitalist videos yet Bagel?
Not wholly against CGT rises but i'll be shocked if this puts even a dent in Canada's housing issues
I don't have any skin in the canadian cgt but some items they claim to be the cause for the increased taxation are weird. Like..."we need to tax you more so we can build houses". Is the canadian government building houses? Are these all social housing projects? Else what is the purpose...get more money from people to give to companies to build houses than they can then...overprice and sell to said people?
If you have held your primary residence for less than two years it may not be exempt from Capital Gains Tax.
Haha, I in Canada I pay a set rate on non-eligible dividends so the government makes me feel good. Then I pay a "gross-up" amount of 15% on top of that. Everything is a money-grab up here.
Plain and simple explanation, if only it wasn't such a novelty lol
Can personal home gains can also be included by future govt on capital gains tax. How likely it is, specifically with lower productivity ongoing
I work in construction and use a corporation for my small business. All told I'm still paying 38%
From the political perspective, the important takeaway is that only the wealthiest people are likely to be directly effected. This isn't a tax on middle income earners because they limited capital gains and access to tax sheltered investments like principal residences, TFSAs, RRSPs, etc.
Yes, as with all progressive taxes, there are some concerns about discouraging productivity or investment in high income earners, but that really becomes a matter of cost benefit analysis based on where revenues are being spent.
Most doctors and dentists will be effected.
ANYONE with a cottage, investment property, self-employed person with a holding company (NOT just doctors, dentists etc but also blue collar professions such as plumber, electricians etc), anyone who has an ownership interest in a Canadian controlled small business that is not publicly traded.
It has been estimated that it could directly effect 20% of Canadians at some point in their life.
@@bogeybichon7000 What capital gains are those small businesses even earning though? As TPB mentioned, they already get tax benefits for selling the business so it's moot there. Plumbers, electricians, etc aren't exactly day trading with their business revenues, so what small businesses are affected?
From a macroeconomic perspective it doesn't matter where you siphon off money from the economy all that matters is how much you siphon. And it does get really technical as there's no one tax that truly "targets the rich" due to technicalities.
@@bogeybichon7000oh no, those people with investment properties that increased in value by 250k or more are going to be taxed a bit more!! How will they cope
So I assume this will also have an impact on Mutual Fund Trusts and Mutual Fund Corporations which will impact more and more Canadians.
where can i find canadian finance news? I wish we had something like Morning Brew but for Canada
What wasn't said here, is that most of these people who would have to pay these taxes are already talking to tax experts, and accountants. If you think you're going to have more of a tax liability, absolutely talk to a professional to see how or if it will affect you at all. Chances are, You're fine but, always have a professional, verify your fears or lack thereof.
Ah yes...taxes.... tell me about taxes, Mr. Richard, tell me all about them *heavy breathing*
"regular people impacted"
"inheriting family cottages and vacation homes"
We have very different opinions on "regular people"...
This is irrelevant and very much just the gov's version of virtue signaling, as wealthy ppl are just going to skirt this tax increase with deductions and loop holes anyway.
As an Australian where they cut capital gains in half and made our real estate go way higher than yours.
If you dont have a big capital gains tax you will neved buy property.
Youre my everything bagel. Thanks man.
I dont mind paying reasonable taxes, and capital gains is a good approach to taxation since its progressive resulting in the wealthier people paying a larger share. That said, I am greatly concerned by the governments just continuing to raise taxes and invent new taxes instead of moderating spending. You cant tax your way to prosperity.
Anyone that have a small plex instead of stock for retirement will be hit very hard by this taxe increase. So instead of have more plex build it will stop new construction and we already don't have enough living units....😢