Rich kid Pierre Poilievre who got his pension early at age 31 and had his dental care covered.
Doesn’t want you to have the same things even if you worked longer hours and for more years.
Seriously, the guy it tone deaf. Only reason he became popular is because of people who got fucked by the housing market. Now he sides with people claiming capital gains > 250k in a year? Really?
Hopefully this video will resonate with some people. It's really well explained.
Rich people telling poor people they can be put in charge of taking care of everyone's money
Given the backstory behind why doctors structured their assets that way I think it's fair and also just makes a lot of the stupid talking points go away to give them a exemption. In itself I believe they should have just switched investment properties to income tax which would be a lot more politically digestible although Trudeau commented why he won't do that a few weeks ago.
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USA neighbor here,
66% is insane, like if I saved up $500k to retire, I’d like to be selling some every year, like 5% (actually a little more but this is for easy numbers). That would get me $25,000 per year, then I’d pay capital gains tax on that and have about $20k left over. A modest retirement, could move to somewhere inexpensive and retire on that.
A 60% capital gains tax means I would have to save 1.5 million dollars to achieve that same retirement.
First, the bump to 66% only happens after 250k that year so $25k would not trigger the extra 16% eligibility. So standard 50% CG only would be applied. $12.5k taxed at your rate means the min rate which may be something like 20% (this number is a wild guess) so say $2500 paid to the gov. Not as bad as it sounds.
A better way to think of it is <$250k 50% of the profit is tax-free. >$250k only 34% of it is tax exempt.
No, if you saved up $500k you would pay $0 in taxes because that's not capital gains. If you happened to hit the jackpot and win on the stock market with your
investmentsbets to the tune of $500k in gains, then you would pay $333k in taxes from your stock market lottery winnings.No, you would not pay $333k in taxes. You would add $333k to your taxable income for the year, and then pay regular tax rates on your total income.
If you made $500k in capital gains and had no other income that year, then by extremely rough estimation (I'm too lazy to pull out a calculator to get the exact figure) you would only be paying somewhere in the ballpark of $60k in federal taxes, then another $20k-$30k based on what province you live in. All things considered, that's like a 17% effective rate, which is too damn low if you ask me.
And that's only on amounts greater than $250k. So anyone this change actually affects is going to be fine. The people complaining about it are straight up lying.
If you save money for retirement you’re ideally selling gains off of that money. Like you have 500k invested in something safe like bonds, it’s making maybe 5% a year, so you live off of that 5% in early retirement and a bit more than that in late retirement. Then you have money leftover when you die, so your heirs can have it.
Do you realize that 67% does not refer to the tax rate, but rather the amount of capital gains that are taxed as income? Meaning that the remaining 33% are always completely tax free?
Example: you sell an investment property for $2,000,000 which you had previously bought for $1,000,000. Your annual salary is $75,000.
In this example, of the $1,000,000 capital gain, 50% of the first $250,000 ($125k) is taxable and 67% of the remaining $750,000 ($500k) is taxable. So, add $625k to your salaried income of $75k and your total taxable income is $700,000.
The total income tax you would pay after the proposed increase (assuming you live in Ontario) is $342,103, which is $320,405 more than you would have normally paid on your salary of $75,000. Therefore, your effective tax rate on the $1M capital gain is roughly 32%, not the 60% you mentioned in your comment.
