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Scrap dividend tax credit, Lower interest income tax to encourage healthy saving
June 14, 2021
11:15 am
savemoresaveoften
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Bud said
Why is there no gross dividend tax credit in the U.S. and other countries? Don't they have double taxation to.  

why is that relevant ? What other countries do or dont is their own choice. Unless you think the "US and other countries" are the world standard, what they do must be cuz it is right, and what they dont must be cuz its wrong...

Each country has its own tax code, tax rate, health care system, welfare or whats not. I dont see any merit or benefit to fixate and compare just "dividend tax" only between countries.

June 14, 2021
11:22 am
Bill
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Bud, because Canadians are not going to credit Canadian shareholders for income taxes paid by the dividend paying corporation to another country, i.e. in that case there's no double taxation (corporation + shareholder) within Canada.

June 14, 2021
1:25 pm
Bud
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Bud said
Why is there no gross dividend tax credit in the U.S. and other countries? Don't they have double taxation to.  

savemoresaveoften said
why is that relevant ?   

It's relevant because the experts say the credit is only fair.

June 14, 2021
1:34 pm
Bill
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Oh, I see what you're asking, Bud. Because Canadians are nicer and care about double taxation, other people don't, how's that?

June 14, 2021
1:40 pm
canadian.100
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Bill said
Oh, I see what you're asking, Bud. Because Canadians are nicer and care about double taxation, other people don't, how's that?  

So nice to know that the Dept of Finance and CRA care and always have our backs.

June 14, 2021
2:16 pm
savemoresaveoften
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Bud said

savemoresaveoften said
why is that relevant ?   

It's relevant because the experts say the credit is only fair.  

the experts are correct. Canada dividend tax system is fair, those countries that dont are unfair....

June 14, 2021
6:47 pm
Norman1
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The Canadian approach is not the only possible one to address double taxation.

In the US, when the shareholder meets certain minimum holding times for the shares (such as more than 60 days during the 121-day period that begins 60 days before the ex-dividend date for common shares), the dividend becomes a qualified dividend.

Qualified dividends are subject to lower federal long-term capital gains tax rates of 0%, 15%, or 20% instead of the 10% to 37% tax rates on ordinary income.

See Qualified Dividends in IRS Publication 550.

Qualified dividends and long-term capital gains have a 0% tax rate for single filers under $40,000 of income and couples under $80,000. The 15% rate applies up to $518,000 for single filers and couples up to $622,000.

June 16, 2021
6:46 am
Alexandre
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Norman1 said
Wealth is purchasing power.

It seems to me we can't even agree on basic terminology: what is wealth, what is wealth creation.

As for who should get most of the credit, material and otherwise, a visionary or unwashed masses, that is actually not a new conversation. It goes back 150 years or more.
While looking for a good argument in favor of a working man, I found this link: https://en.wikipedia.org/wiki/The_Railway_(poem)

Two sections, Background and Plot Summary, Part III could serve as a summary of conversation we have had here.

June 16, 2021
8:46 am
Bill
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The Russian poem is described as "anti-capitalist", Alexandre. The living standards of the "working man" in the two polarities (communism, capitalism) around the world speaks pretty clearly about wealth generation and who gets the material "credit".

June 16, 2021
5:13 pm
Loonie
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The poem was written long before the Russian Revolution (or any communist revolution), while the country was in the autocratic grip of the Czar; there was no democracy. Many emigrated from Czarist Russia seeking democrac and opportunity.

June 17, 2021
12:15 pm
Bud
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Would savers make money compounding if interest rates were normalized at 7-10%

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