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Wealth tax increases risk of GICs
May 14, 2022
8:17 pm
AllanB
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For example, one invests in a 3yr Gic after year one government announces increased taxes in year two you get dinged depending on income or net worth. If you had your money in a hisa savings acct you might be able to gift enough or other maneuver to escape their net.

May 15, 2022
12:43 pm
canadian.100
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AllanB said
For example, one invests in a 3yr Gic after year one government announces increased taxes in year two you get dinged depending on income or net worth. If you had your money in a hisa savings acct you might be able to gift enough or other maneuver to escape their net.  

I did read the article in the Financial Post a few days ago that the PM has been seriously considering imposing a Wealth Tax on Canadians - needed to pay for high govt spending. Do you really think that more people would be able to escape the Wealth Tax just because they can "give away" their liquid funds not locked in GICs? I think that there are also some downsides to giving your liquid money away just to avoid this new tax.

May 15, 2022
1:03 pm
cgouimet
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canadian.100 said

I did read the article in the Financial Post a few days ago that the PM has been seriously considering imposing a Wealth Tax on Canadians - needed to pay for high govt spending. Do you really think that more people would be able to escape the Wealth Tax just because they can "give away" their liquid funds not locked in GICs? I think that there are also some downsides to giving your liquid money away just to avoid this new tax.  

That article talks about a one-time wealth tax of 3% on people with assets of $10+MM and 5% on $20+MM. A 'little' above my worry point ...

CGO
May 15, 2022
1:10 pm
cgouimet
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cgouimet said

That article talks about a one-time wealth tax of 3% on people with assets of $10+MM and 5% on $20+MM. A 'little' above my worry point ...  

And, it's likely 3 or 5% above the $10 or 20MM, not the full amount ...

CGO
May 15, 2022
2:23 pm
MattS
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i think high net worth people are often affiliated with a party, They should only start with high net worth card carrying liberal and NDP'ers as this is their idea of high gov't spending. Then each liberal associate that works for the gov't that is on the books for a sweet and very expensive pension, cut that in half. Give them a letter explaining thank you for your contribution to the society we now enjoy, & you 50% cut in pension is your conttirbution.. You did know that the bill eventually gets paid right? oh and you retirment finances will balance themselves, dont worry.

enough is enough folks.... This isnt all our problem, the left wingers should be asked to pay more for the society they wanted.

BTW, my skill testing question to post this was 5 + 4 which by Trudy's math equals 19.

May 15, 2022
2:39 pm
Bill
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Once introduced a new tax doesn't go away, and the thresholds can be changed up or down any time, base widened, etc. How a wealth tax would affect GIC interest income is probably a topic virtually no-one in this country would focus on or even think about. But even though wealth taxes ultimately might in fact be detrimental in practice they are very attractive if I'm a politician in a society that generally supports the concept of taking more from the haves to give to the have-nots, i.e. more votes (plus the attendant virtue-signaling) might be the real purpose instead of fiscal desirability.

May 15, 2022
7:02 pm
AllanB
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Will they make it retroactive meaning they'll go back to 2021 say so people can't shuffle their assets around?

May 15, 2022
7:24 pm
COIN
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Death duties will probably make a comeback. There's no escape, unless you leave Canada.

May 15, 2022
7:28 pm
savemoresaveoften
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cgouimet said

And, it's likely 3 or 5% above the $10 or 20MM, not the full amount ...  

Finally there is a tax that I dont "qualify" to pay lol

May 15, 2022
9:03 pm
AllanB
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When is the soonest they could make an announcement?

May 16, 2022
5:32 am
KamWest
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I have been considering moving my family out of Canada to the Cayman Islands or similar. As soon as a wealth tax is voted on I will be closing my businesses in Canada and packing up.

Thing is 3-5% wealth tax is significant enough to say bye bye to Canada. Lets see what happens when significant funds start to flow out. Trudeau cannot spend his way out of that one.

We need the wealthy to reinvest and some do pay their fair amount in taxes. Canada is becoming very unfriendly to do business in and believe me when I say the exodus will be very real.

May 16, 2022
5:52 am
savemoresaveoften
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KamWest said
I have been considering moving my family out of Canada to the Cayman Islands or similar. As soon as a wealth tax is voted on I will be closing my businesses in Canada and packing up.

Thing is 3-5% wealth tax is significant enough to say bye bye to Canada. Lets see what happens when significant funds start to flow out. Trudeau cannot spend his way out of that one.

We need the wealthy to reinvest and some do pay their fair amount in taxes. Canada is becoming very unfriendly to do business in and believe me when I say the exodus will be very real.  

I agree a "wealth" tax is the most stupid tax of all. It suits a political agenda and to get reelected and nothing else.

May 16, 2022
7:21 am
Bill
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Cayman Islands real estate way up over last few years as USA & Canada seek to increasingly tax wealthy. But if it's stupid fiscal policy but popular it should be done as in democracies the people get to have what they (majority) want, that's the point of democracy.

May 16, 2022
8:53 am
Loonie
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Good luck living on an island in the middle of the ocean, with rising sea levels.

May 16, 2022
9:36 am
AllanB
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Why the heck do people support entitled billionaires and the ones into the hundreds of millions especially after so many benefited from corporate welfare and stimulus this past couple years it was so
egregious in your face. Tax them first and shut down offshore, put sanctions on Switzerland. Redirect the navy to offshore tax havens maybe that'll get their attention. Billionaires who built their wealth in Canada shouldn't be allowed to escape. Stop buying their "one of us" kool-aid. Stop their looting of government coffers can you not see the scandals. Wake-up, tax them not us!

May 16, 2022
9:49 am
Bill
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To be a Cayman Islands resident for tax purposes you don't actually have to be there hardly at all.

May 16, 2022
9:54 am
cgouimet
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Bill said
To be a Cayman Islands resident for tax purposes you don't actually have to be there hardly at all.  

Exactly why those tax heavens need to be torn up. People move their $ there for tax benefits and live here for the social benefits. The ME ME society ...

CGO
May 16, 2022
10:08 am
Bill
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Not how it works for the wealthy, you can't "live here" or else you'd be considered a Canadian resident for tax purposes. But you could have 3 places in, say, Cayman, USA, and Canada, making sure to meet the rules so as not to be considered to be living in the latter two, plus spend time on the seas or other travel, and be considered to be resident in Cayman for tax purposes.

May 16, 2022
11:02 am
AllanB
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Bill said
Not how it works for the wealthy, you can't "live here" or else you'd be considered a Canadian resident for tax purposes. But you could have 3 places in, say, Cayman, USA, and Canada, making sure to meet the rules so as not to be considered to be living in the latter two, plus spend time on the seas or other travel, and be considered to be resident in Cayman for tax purposes.  

That has to stop if it doesn't the navy should send a ship over. The ultra rich complied now it's time to pay up. Cayman's and other islands like must be shut down. Treat them like they treat the oligarchs.

May 16, 2022
11:15 am
savemoresaveoften
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AllanB said
Why the heck do people support entitled billionaires and the ones into the hundreds of millions especially after so many benefited from corporate welfare and stimulus this past couple years it was so
egregious in your face. Tax them first and shut down offshore, put sanctions on Switzerland. Redirect the navy to offshore tax havens maybe that'll get their attention. Billionaires who built their wealth in Canada shouldn't be allowed to escape. Stop buying their "one of us" kool-aid. Stop their looting of government coffers can you not see the scandals. Wake-up, tax them not us!  

you just dont like the rich cuz they r rich ? Hows that different from showing a prejudice for skin color, gender, and....
Most of the rich gets rich NOT from stealing from the poor. They get to where they are cuz its capitalism and they grab the right opportunity, willing to take risk, among other things....

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