There's a case to be made in favour of the capital gains tax increase: Trevor Tombe
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- เผยแพร่เมื่อ 17 มิ.ย. 2024
- Trevor Tombe, professor of economics at the University of Calgary and a Research Fellow at The School of Public Policy joins BNN Bloomberg to talk about the capital gains tax increase that came out of this year's Federal Budget. While the budget, and particularly the increase, received many critiques, Tombe says there's a case to be made in favour of it, which he lays out in the interview.
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So if I hear this right, instead of raising corporate tax they raise capital gains.
@auntysocialist a startup venture usually pays the founders in preffered shares. When Elon sold his first X to PayPal he sold his shares for $300m and kept $180m after tax.
@auntysocialistnot really. Any person who has put money anywhere, and has seen a profit, is hit with capital gains. Property owners, crypto owners, precious metal owners etc.
Also, it won’t be that way (shareholders and corporations) for long. They’ve been talking about taxing gains before they’re realized. This would include corps
@auntysocialist read what I wrote. For now
@auntysocialist I never said that’s not how it is. I’m saying that soon, they will tax you on unrealized gains (whether it’s in your account or taken out). They have been talking about wanting to do it.
always.
There is no defence for any tax increase when the government is so irresponsible with their spending.
lol. none? you can think of no reason why + $250k per annum capital gains, which affect about 0.01% of Canadians, at a higher level is not an ok idea?
government...all of them...I suspect will be irresponsible in your assessment. this quite simply an effective way of taxing higher sources of passive income that have nothing to do with economic gains, only wealthy individual's habits.
you're funny.
Have you thought about who is affected by the tax increase or do you just blindly speak out whenever you hear tax increase? Only people with capital gains over 250k AND this doesn't affect primary residences due to the principal residence exemption. If you're making that much money in capital gains in a year, either you should be selling over a longer period of time OR you kinda deserve to be taxed more.
@@ktktktktktktkt tell that to the farmer that has farmed for 50 years and now wants to sell his land.
@@coupalr1 look up the lifetime capital gains exemption
@@philipmartin2919 Ukraine needs it!
During the covid hoax two years of being shutdown , cerb ,plus billions in corporate grants created this.
Are we at 500 billion in debt?
At .5 percent Trudeau said it was easy. Here we are. Trudeau's old man had us at 18 percent in the 80s.
Are we heading there?
Prof left out the fact that capital gain captures asset value that increased for no reason other than inflation. That's tax on zero increase in purchasing power. Not so with a tax on income. That makes capital gain distinctively different than dividend and employment income.
Right, gains made tend to get reinvested rather than finding its way ti the grocery store. Inflation nation!
And we already pay 40%+ on income alone….
@@cestmoi7368 “not enough! Less productive people need more free stuff!” /s
and the group that I think will be effected the most is private individuals investing in buildings (like residential rental apartments) through a corporation. I guess the government thinks we already have more than enough money going into building apartment buildings.
The point to be made is that failed policies always result in varied tax increase schemes.
The corporate media leech talking heads who get subsidy funding😅😂
100% propaganda
This man being interviewed said something about, "double taxing" at beginning and end. Thats why its set up that way. Well, something the federal governments being doing for years and its "double taxing" our Military people to no end. And others professions it happens too. First a person pays taxes that comes off their pay/salary. And they pay into their on pension plans. When time comes to collect ones pension, the federal governments takes MORE TAXES!! Same thing if one has to draw unemployment that you paid into for YEARS,more taxes taken off. STOP that process, it is nothing more than steeling from working people who paid already!
That's the thing that has always pissed me off, the gov encouraged savings to help your retirement, all the whole knowing they will tax that money again, what a bunch of bastards
Good job Canadians! In the US, there is no longer a middle class because.001% owns more wealth than everyone.
And giving government more tax does not fix it, if it's even a problem to begin with. Throughout history you always have 0.001% people owning more than everyone. The question is what's the FLOOR for the society. If the tide rises and lift everyone up who gives a fuck what the top 0.001% is getting.
Of course a public servant thinks higher taxes have benefit…
these taxes won't hit you unless you're one of the real estate leeches
Not at all. This tax will hurt all kinds of individuals and corporations
@@swyllie30those with capital gains over 250k per year. Boo hoo!
@@karenneill9109 expect rent to increase to offset this tax.
@@seyamrahman6722Corporations are being taxed more regardless if they have capital gains of 250k. Thats a lot of middle class professionals who invest through their corp getting screwed over.
This will never impact a professor of economics
Avoiding double taxation, like they have ever cared about that. HST is charged on everything paid for with after tax dollars.
First you can't buy real estate, now you can't sell it either.
Primary residence is excluded
yeah. if you're gonna participate in real estate arbitrage for personal gains, outside of your personal residence...you are gonna suffer. as in, you can't just blithely buy and sell properties to make $$ quite as much anymore...and basic Canadians wanting basic homes benefit, through the lowering of profits, and therefore, lowering of prices.
what's your complaint exactly? that you can't continue to extort money from a closed marketplace transaction, with plenty of unwilling participants?
GO ahead and sell your real estate. Nobody is stopping you. You simply cannot make as much money as you used to, by dabbling in a market essential to the well-being of Canadian citizens. FInd something else to bleed off of.
this is for the guys buying up hundreds of properties, raising the price then selling. The leeches of Canada
@@eramosat there should be a margin for people who go in and renovate homes and flip them. People should be able to work hard and it pay off without having to give their government all the profits. Just my opinion tho as a landlord
@@eramosatand it’s not extorting it’s a business. Maybe tax the super wealthy and big corporations not the ones who are working hard to achieve that goal
People saying that the capital gains tax will stop investment and, therfore.hurt our economy, assume that people are investing in Canadian stocks, etc.
People don’t pay capital gains tax on their second homes because they just call the home they are selling their “principal residence” at the time of sale and get a full exemption.😂
Oh look a small hat collective is pushing small hat policies. I definitely trust everyone involved here.
Based
I'd be a lot more comfortable with raising taxes if my government had a history of spending wisely. To the contrary, government spending is notorious for being inefficient and failing to achieve the goal they hope to solve. As a case in point, when landlords are forced to tolerate squatters, when government rules for building permits require better quality homes, and when government confines rent increases to a level below the rise in mortgage interest rates, don't be surprised if supply of rental properties sag downward. Government needs to recognize the many situations where they are part of the problem.
Agreed - if the government wants to raise taxes, they must decrease spending so that any deficits and long-term debt are reduced and/or eliminated.
so the argument is if one tax rate is super high that "well it should be fair" so just make them both high? how baout lower the other one
well they would have to cut spending and thats a road they wont even consider
Most people don't even max out their TFSA. They're not going to be affected by this.
More money for Ukraine and bureaucratic embezzlement!
Fascinating ain't it
There actually isn't any reason to pay additional taxes... of any kind. Period !!!
They need more tax revenue to send to other countries.
My heart bleeds for the 0.13%, not.
Your heart will bleed a lot more when landlords increase your rent to offset this tax.
@@johnnystones8498 I own my mortgage free home.
That so little is awarded to the shareholder at the top tax rates regardless the income type is the biggest failing here. That we should equalize capital gains with those other forms is another huge mistake. Capital gains inclusion rates that are lower reflect the fact of not only avoiding double taxation, but also the investment risk and inflation risk. This gov't and any economists who are defending it have gone a long way to making Canada an unattractive place to invest.
The higher ups want their cut. This solves nothing.
The case: steal from as many people as possible without them knowing to pay for all their fuck ups. We parents don’t have anymore money so now they’re stealing from our kids. Such a compassionate government.
Discouraging investment and productivity in an already less productive Canada. So foolish.
discourages investment in property, bringing down housing prices so mega corps who buy up all the properties and charge insane rent can finally fuck off
We’re blowing this WAY too much out of the water! Where in Canada is anyone going to make these kinds of returns in the first place? There isn’t!
Except the Trudeau foundation that owns half of Canada …
…so if it effects no one why are they doing it?
The poor people that bought houses in the 80’s leaving it to their children
@user-je6cy3pu3u no, not their home if it's the principal residence, but other gathered assests , yes. Why is the answer always increase taxes, and not accountable government spending?
I’d be interested in this Professor’s perspective (1) doing nothing at all or (2) his thoughts on the Liberal/NDP’s treatment on the economy as a whole….
Im a small business owner and a family man with 3 kids. Im lower middle class. We Canadians are already over Taxed.
Well you need to be a multi millionaire to even qualify I think 50 million plus you won't be affected due to lifetime capital gains exemption
@@dantedavis4679that’s not how it will be employed. They are targeting middle class homeowners - again. And at the same time giving preferential mortgages to “the chosen ones.”
@@dantedavis4679
No. It will affect people who have inherited a cottage..
It’s insane
@@cestmoi7368 Alright well let an accountant know if you get taxed because if your lower middle class I doubt it but you think the government has a plan to tax you anyway so ok. Also if you research halal mortgages they are often more expensive things like mortgage insurance or registering land titles etc. are more complicated and costly with Canadas regulatory framework you're not missing out on anything.
@@Ont785 Respectfully I don't know who told you that information but that's not how it works. Inheriting a cottage or more broadly a single family home does not meet the capital gains in excess of 250,000$ dollars requirement of Canadians that make 1.4 million, 99.8% of Canadians aren't going to be affected I would know because I'm in the small few that will be effected.
The argument is we suffer, Justin goes on vacation
He goes on vacation on taxpayer money too
Is there not a higher degree of risk with buying shares/property? higher tax on capital gains could decrease the evaluation of return. Therefore, decrease capital investment and increase investment that has dividends. Would this foster monopolies that have income to pay out? Could this not also further less competition in Canada resulting in higher prices for consumers.
My understanding is that foreign investment into Canada is because of our vast resources, skilled labour, safe regulatory environment. I expect this increase in capital gains would not like much of a deterrent, but correct me if I am wrong.
With the lifetime capital gains amount, individuals holding investments in RRSP and TFSA’ they are not impacted directly by this policy change.
This tax rate might bring down the value of property.
🎉😂🎉
I think it will have the opposite effect. Owners will want even more for their property to help offset the tax.
Did this in the 90’s already. How did that work out?
oh you mean the last time housing prices were stable?
His Boss is Martha Hall Findlay a former Liberal MP
just stop paying taxes people my fuck
PSA: capital gains tax does not directly impact rent. If your landlord raises rent on you, it's pure greed.
Who knew so many Canadian made 250K plus in capital gains a year that they are so outage in the comments.....
If the concern is uniformity, they should decrease regular taxes instead 😂
This disregards the small corporations that want or need to sell an asset and will be taxed to a greater extent. It reduces their competitiveness and their ability to invest in future opportunities. Only fair taxes are consumption taxes.
Just don't pay tax and let them come take it by force. Make them spend more to get more.
If the taxes they already collect was used wisely instead of being thrown at projects that are a waste of money then they wouldn't need to increase capital gains. What gets forgotten is when government takes money out of the economy then there is a negative ripple effect.
I will make the case for increasing taxes, Stupidity.
Tax me I'm Canadian?
The case is that Trudoh knows whats best for Canadians, if its higher taxes then he has his reasons. Perhaps we need to send more money to Elensky to buy more homes. Just trust in our leader and the WEF. The middle class needs to go so that they can move us into tiny apartments, 15 minute cities and make driving unaffordable for the average person. WE need to fight climate change
businesses get all the breaks
The less taxes the wealthiest and corporations pay, the more that tax burden gets put on the shoulders of the working classes. TAX THE RICH !!!!
So I take all the risk and eat all the losses, and the Canadian government is going to steal more than half of my gains?
Nothing like a little mathematical gymnastics for spin. This new cap gains tax increase is not a good idea. It's now gone beyond taxation...to confiscation.
What a terrible idea
There is a case in favour of your hard earned money being robbed ! -University professor!
if people thought justin trudeau was going to be around long term, but short term we know he's done so short term investment will drop
Should be able to claim a capital loss on the sinking purchasing power of the Canadian dollar.
There is no plus to it, now the little bit of money some canadians are able to invest will be almost completely taken by the goverment if they need to pull it out to use it
67% lol. what makes you think the government deserves more than the owner who use their “taxed”money to purchase their investment. Yes it will generate 19billion in revenue.. but where is it going to? Does it make a better place for Canadians to live for? Based on Mr. T spending patterns we can assume it will become his Fun coupons.
This tax only affects the upper middle class and real estate speculators.
Until they pass their increases onto their renters or the price of their home when they sell.
Please talk to us in a tone like you’re speaking to a class of grade two students we love it .
oh and where did you get your degree in economics? 99% of the people in the comments complaining won't ever be affected by this in their lifetime
@@seyamrahman6722 it’s the overall implications for our country . We don’t have any innovation or expansion on productivity. Measures like this just further our unattractiveness to the international business community. I guess we can always add jobs in the public sector.
"Its gonna come with winners and losers" like the 40k a year Trudeau will give to his friends in government. Whether they have a job or not. I want 40k a year for nothing too.
The extra tax revenue will provide Billions in much needed relief for Ukraine. After all, that’s where Canada’s priorities should be, and that’s where Canadian taxpayers would like their money to go.
So people who make millions tax-free from a loophole the average working person are doing a great job getting their media staff to promote their need for even more money. I'll remember this next time I pay my share of taxes and cry for those who aren't getting huge breaks on their investments.
nobody makes millions tax free. if you get your information from movies, you show you live in a dream world.
This guy makes no sense. For normal income, taxes are done at corporate level, and fully at personal individual level when you're paid.
Young people please don't view this as a tax on the wealthy. As a landlord this will only make me increase rent to help offset the tax, and you will pay even more for rent..
fuck this shit. I’m gonna move to a tax haven.
then get a move on! you can live in the Caribbean for almost no tax on your income. and then luxuriate in all the services they have to offer. fuck you. good luck with your private security squad, and your all-fish diet,
I highly doubt you're in an income bracket that is affected by this
@@seyamrahman6722 My family is affected by this unfortunately.
@@Heurigijdbd Then your a leach.
I know a man who sold out his business for $10 Million. He stayed in Canada but his money moved to a tax haven.
Contradicting his own statements. You have to be extremely stupid to say 35pc capital gains isnt much just because personal income tax for that bracket is 53pc.
Yeah and theres a case to be made u can gfy too
Yes the gross speculation that drives up stock prices is taxed at the corporate level... Oh wait its not wdf is this dude on about.
No there isn't.
In other words, it encourages people to buy more dividend stocks because they are safer for the average retirement investor.
Gotta admit, it's probably a smart move for most boomers who can't cope with "number go down".
Do you want to get someone who has skin in the game?
If you want less investment, less competition, more inflation, more consolidation of corporate power and lower quality of life, this is a great idea.
You will own nothing and be happy seems to be this government's motto.
@@shakyjake2133 Trudeau isn’t fit to teach children. And I mean that literally, he wasn’t even a full time drama teacher before this, he was a substitute. His entire name and that’s the best he could do before Canadians gave him our country
when has this guy ever seen taxes go down? asking for a friend
Personal Tax is alreay 48% for high income holder. Now you want to increase more? What the hell is point of working. Every dollar i made i had to basically give gov. half. You wonder why doctors and professionals are leaving the country? Its freaking a joke. I work overtime for benefit of patients and I get slammed with almost 50%.
Meanwhile Traudumb and politicians have their $$ off shore bank account 😂
I'm not an economist, but my guess is this guy would vote for Bernie Sanders and follows Elizabeth Warren on X. Yeah?
This is a great idea if you want the entire working class to be replaced by robots.
the answer is massive tax cuts needed.
so what services are you gonna cut?
@@canadaclub8920reduce government employee by 50%
@@canadaclub8920 Maybe start with the international money dumps that realize no potential return? How many billions did the PM give away in his last term, to thrid world dictators, so that he could try to buy Canada a two-year seat on the UN Security Council? Everybody talks like tax cuts equal no medical services, but there are a huge number of wasteful patronage programs set up that could be cut without touching essential social services... We Scandal ring a bell? ArriveCan? Trudy can't tax his way out of the Trillion $ plus debt he helped create when he promises more billions to flush away.
oh and privatize healthcare too right? So we can end up like the neighbors down south? The solution is high taxes on the ultra wealthy, high taxes on bringing assets out of the country, low taxes on small-medium size businesses so they can compete with the walmarts
@@seyamrahman6722 After having lost both my parents to our system in the last 2 years i would welcome privatized healthcare!
Of course the guy who doesn't have a real job thinks that raising taxes is a good thing.
Not sure if you actually listened to the arguments or if you were blinded by the video title. He has a real job. He's a professor.
What's your job?
I'm sure you're in love with PP's resume esp the Western separatist bit.
@roofpizza1250 PP talks about western separation? 😂
@@kirkmiller9852 west should separate. Balkanization is the only way
The tax system has been skewed to increasing the wealth of the 0.1% for decades, ever since the mid 1970’s, with its trickle down economic theory, and after the population boom of the 1950’s and 60’s created the largest middle class cohort in Canadian history. The erosion of the wealth gained by the middle class was designed by the wealthiest people who are also those same people who pay thousands of dollars for a plate of food at political campaign fundraisers. If the middle class want their children and grandchildren to enjoy the same level of financial security that they had, then they have to push the 0.1% into paying for the privilege having a stable social and political society that also provides protection for the wealth of that 0.1%.
Nice to see actual experts discussing the topic unlike anyone in these comments who are so disconnected from the reality of how to build an equitable country. But I guess that's also the nature of TH-cam comments. The world would be a better place if people took a little more time to understand or at least listen to the experts before leaving outrage comments.
Aw yes the “experts” . They have been right on the money as of late.
You mean the same experts that deliberately caused the 08 crash? How does the leather taste?
I'll be jacking the rent in my rentals to help offset the increased tax on my portfolio. So rents will increase even more than they have already. This the real world, not some "experts" opinion.
@@johnnystones8498 why? I've done taxes for rental properties. All you do is claim rent as income and deduct expenses like property taxes, repairs, management etc. You only ever get capital gains if you sell a property. This is not an expert's opinion, just someone who does it for a living.
@@mathkittie6472 exactly, and as selling my rentals is part of my retirement plan, I now need to compensate for the extra taxes I will pay.
You lost me at Professor
Bull
Just came here for the boomer tears.
@TjSemeniuk-un4fb that was propaganda by the Senate. Nero wasn't even in the city when the fire was happening. When he returned he took prudent steps to provide relief and provisons to the citizens. I see you are the type who just parrots what others say instead of looking into things yourself. Pathetic.
Us boomers will come here for your groomer tears once your already high rent increases even more because of this tax.
FJT and this guy
Capital gains should never be taxed. You’re taking money out of investment and paying the government. It doesn’t work, it looks good on paper and sounds good but the reality it takes investment from the private sector and transfers to the government to spend on something less efficient. In the short term it’s a fantastic tax, it does raise revenue. Over the long term, markets are smart and they plan around it. Ie pick another country to invest in essentially. Either way you’re getting lower and lower investment in Canada, we are less competitive as a result.
boooooooooo
No it’s simple. More tax is bad. Less tax is good. No tax is better. It’s our whole lives tax, tax, tax, more tax, tax the taxes. There going to tax this country until there’s nothing left but the government.
*What mean ye that ye beat my people to pieces, and grind the faces of the poor? saith the Lord GOD of hosts.*
Isaiah 3:15 KJV
This is the definition of propaganda
you are correct...the responses in this thread to a simple re-statement of the facts of the matter do amount to propaganda. It's quite telling how quick and hard the propagandists have jumped onto this random thread too, making it seemlike average canadians might be worse off, when that is the furthest thing formthe truth.
you really are very naughty, being so coy about your intentions.
Is trudeau paying you too?
How ‘bout NO!!
You can kiss the likelyhood of you owning a home, goodbye!
You think the prices are ridiculous now? Just wait till people decide they don’t wanna pay 66% tax on the gains so take their houses off the market.
With the current housing shortage, this will see to it that the houses that are sold, are sold for disgusting amounts of money (far higher than any bank will say it’s worth). Have fun getting a mortgage then.
Yes, everyone will stop selling property until the Conservatives get into power and reverse the ax.
Tax the rich! Not the middle class
The rich are taxed. Stop pushing for more taxes - which ONLY goes towards corruption for politicians.
That was the political lever that this budget change was trying to pull. I think it may backfire.
Reminds me of the Chinese cultural revolution. They had the same idea.
Ah my replies are being deleted. Stop pushing to punish people when it is the politicians taking your money
@@rickagfoster and are now the second biggest economy in the world, going from village huts to mega cities
Dividend income are lower risk (no losses) than capital gains so should be treated different as with interest income. Capital gains on asset that appreciate because of inflation as their is no gain in value.
The trouble I have with all of these new Liberal taxes is that they are all taxes on taxes. Capital gains are earned on invested money that has already been taxed. Every tax we pay after income tax withholding is effectively a tax on a tax...or a tax on after tax income. We keep moving the "tax free" date further and further into the year with the Carbon taxes on nearly everything and now this...If the Liberals stay in power for another term... the tax free date is going to be Christmas.
Two things you can’t and shouldn’t avoid are death and taxes.😂
I tired of having every penny I earn and what my parents earned, subjected to taxation…it’s ridiculous.
Where does this end? 60% 70% Wtf?
In the 90’s it went up to 70%
It never ends. My Dad died last year and now his estate has to to pay $500 tax on his death benefit.
@@sparx6354
They percentages and amounts keep rising…where does it all go?
@@PatrickNovotny
No it didn’t.
What are you talking about?
The 90s was perfect. Inflation was ending , businesses hiring and,investing.
No one ever paid 70% on taxes
@@Ont785 Capital Gains inclusion went up to 75% in the 1990's. Look it up. Instead of having a mandela effect experience😉
The capital gains tax on every $100K was previously $26750, and now the government has raised it to $30094. While it’s not a significant hike, these individuals are reacting as if the ground beneath them is shifting.
Your numbers are complete bullshit. Show us a link to where you get these numbers.
seriously? ridiculous
It's kind of incredible just how thoroughly the wealth-holding class in this country have been able to pull the wool over the public's eyes on this stuff. Many Canadians are struggling to make ends meet. Birthrates are plummeting because younger Canadians simply decide they can't afford it. The only logic behind taxes on realized gains on passive investments is to make the rich richer at the expense of everybody else. Why should honest hardworking Canadians pay as much or more tax on income earned by their own labour than income earned with no effort simply from wealth compounding itself?
The system is upside down. Your anger over a few thousand in taxes on your passive income directly keeps many millions in the pockets of the wealthiest Canadians. Money that could be used to... I don't know, help rebuild a strong middle class? Help raise the quality of life for millions of Canadians feeling like just owning a home is a pipedream they'll never reach?
Goodbye jobs , investing and innovation within Canada .
Bullshit! There is never a good reason to raise capital gains taxes.
The prof comes from the University of Calgary which supports DEI and other left wing garbage. So what does one expect.
And probably WEF operative
There is... to keep you poor.
@@RM-zj9veNobody affected by this tax is poor and nobody affected by this tax will be poor as a result
@@slammy333Its more TAX either way, do you want to pay my share? WTF maybe you should work for JT in his finance department. Quote of the century "the budget will balance itself". Are you not tired of them taking taking.
Why is no one talking about a vote of nonconfidence to get rid of this guy? We should all be pressuring our political parties to do that.
Should be lowering capital gains taxes to encourage investment. Long term holdings are going backwards with inflation on money lowering dollar value.
that just incentivizes people to sit on their money instead of reinvesting into the economy
My previous comment has been deleted almost instantaneously.
Anyway, this a person that tries to explain in a complicated way why giving more money to the government to waste is actually beneficial (see the carbon tax as well). Ministry of Truth or Trudeaunomics.
Bullshit
entrepreneurs arent welcome here