New capital gains tax to create long-term problems in Canada's tech economy: Inovia partner
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- Опубликовано: 17 апр 2024
- Dennis Kavelman, partner at Inovia Capital, joins BNN Bloomberg to discuss the new Canadian Federal Budget for 2024, and his critiques of the increase to capital gains tax.
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This is a tax on small business owners. The super rich have already gotten all their money out of canada and into offshore bank accounts.
Kinda sorta. The massive increase in small business capital gains exemptions is pretty sweet.
Exactly.
i think with small businesses, i mean there is no fine print YET, but if anyone of us wants to start a airbnb side hustle, we can, but will make less. I have a side hustle, does this mean i'm gonna get taxed more? yes and no, i THINK, i THINK we have to meet a income THRESHOLD, of 1.4 or 1. something million dollars and then we get taxed more. This is what i've gathered from watching JT videos. It's all corruption at the end of the day. Taxes are memberships to stay in the country every year. There's no fixed price. Changes every year.
@@Trythis837How are they doing on the carbon rebates for small businesses... maybe they could pay all the money they owe back. They lowered the payback from 9 percent to 5.5 before they've even sent any money out.
@@AdolfTrudeau I have no idea about that. I haven’t gotten any money.
If Bloomberg thinks more taxes of any kind are a good idea, they can damn well pay them themselves.
And if you think that letting billionaires become kings is a good thing, you just may be vying to become the new serfs.
If you have so much in investments, that you are relying on them having no taxes on them, you aren't middle class, you are a rich bastard that just doesn't want to pay your taxes.
And if you aren't rich, don't go thinking that the roads you used to get to work, or the law enforcement that allows your bosses to rest on beds of cash without their workers offing them and taking over are free.
Just because you don't pay for healthcare, doesn't mean that shit costs nothing.
If you want to justify billionaires living off of old money, go for it.
But to pretend that this is a tax that will EVER affect you, is just being ignorant.
@@Naedlus Go read the Bank of Canada Act. Then add the British North America Act to your reading list. So, once you realize that the manner in which the currency itself is fraudulently issued and taxes and inflation are the only thing keeping the whole rotten house from falling in; and otherwise taxes are unnecessary... That'll get you properly pissed off.
@@Naedluswe aint talking billions you commi. 250k is middle class family. You think these terrorist Trudeau going to spend the money on Canadians or buy more bombs for Zionist.
80% of taxes stolen are provided for by the top 20%....helps to have a clue
Most millionaires are self made!!!! Clueless much?
Our current finance minister had her parents cosign her mortgage.
"Let's chase businesses out of the country purely out of envy!"
Did forty years of corporate tax cuts, tax havens for billionaires, privatization, free trade and deregulation create higher rates of productivity, good paying jobs and affordability for every Canadian instead? LOL
@@portpass1974 In general, yes.
@@ElliotKeatonExcept it didn't, and even the business community understands this. LOL
@@portpass1974 [citation needed]
So what I'm hearing is - we have to pay taxes when we sell our companies, and that will make us not want to sell our company?
Thank you!
So what I'm hearing is that if you own a small company you should never retire.
It will make investors not interested in investing money on you because that investment will not have good returns later as it will be heavily taxed. Instead, the investment funds will go elsewhere to fund companies.
@@WSOJ3 Capital was already avoiding Canada, this will only expedite that.
@@frederickclause2694 excatly, say I am a fund of funds from a Wall St institution, why would I want to invest in Canada when the returns are being forced so low due to government taxation.
Now if all capital fundings are avoiding Canada, what startup innovation will survive? And without those, how many jobs will be lost? And with money leaving the country and jobs lost, what deficits will this tax scheme cover??
This has to be one of the most incompetent Canadian governments of all time.
They were voted in. Yes, I agree 100 percent but the people said yes to them at the ballot box.
I appreciate you qualifying it with *canadian
Surely, it could get worse
One of? THE most. They literally destroyed Canada.
Justin Trudeau is trying to appease the not so wealthy individuals with taxing the rich more. He thinks that could turn the tide on his re-election chances but it won’t work. People are tired of Justin Trudeau. He needs to go
The ingenuity of this gov't never ceases to amaze
The sheer IDIOCY of this gov't never ceases to amaze*
FTFY
Agreed. It’s a shame they spend 99 percent of their effort trying to steal more money from us
Work 35, 40, 45 years and diligently save / invest for retirement and Justin & Singh, his co-conspirators “TAX PUNISH” retirees. Shame, shame, shame…………….
This will push investment out of Canada, this is a horrible budget, takes all incentives to grow and build wealth and pushes people everywhere else. Startups will leave, businesses will leave, people with real wealth will leave, not create jobs, not invest period. This policy is backwards.
It's all according to Castreau's WEF mandate.
It’s good for me as a small business owner
We dont need to encourage more monopolies and wealth hoarding. At a certain point, money just makes money and it starts to come at the expense of the country and its lower and middle class workforce. This is good for small business, and we should be doing whatever we can to give more advantage to small business. Big companies don't have to compete anymore and that's why we're being price gouged and inflation is skyrocketing. Because we have no choice.
@@Trythis837 in what way? Canada has seen a decrease in small businesses of more than 40% and this hurts many small businesses further by increasing taxes on the sale of your business if it ends up being worth anything > $2MM depending on the nature of your business. Many small business owners are scared of these changes so not how you would think this is good for you?
@@Cheapiebeepie haha these measures don't hurt large monopolies, it hurts startups and small businesses wishing for growth. Most monopolies aren't even registered in Canada and are structured in ways where they aren't the people paying. A few CEO's at best but most of this money will come from the pockets of middle class Canadian citizens on the sale of their hard earned business ventures. It stifles potential growth as nobody will work at increased production only to get taxed harder by the government.
Attacking people has to end.
They should be building business up, people up,and communities up…
Instead they’re attacking business, people and communities with their insane taxation policies.
This Capital TAx increase affects ‘middle class’ Canadians trying to build some equity for their retirement.
The very rich do NOT pay any tax: Trusts, Incorporation, Off-shore virtual ‘head offices’ in tax havens.
tax revolt
Stick in the spoke is a perfect explanation. Trudeau really really really needs to go away and stop ruining our country further.
Imagine growing something you put your blood sweat and tears into and you finally think you made it and the government comes and says "hey thats pretty cool, good work, we'll take 66% of that now, good luck growing or doing anything else"
66.7, so at least it's not wholly christened by satan
Imagine thinking that taxing millionaires is a bad thing.
Well they did increase the capital gains exemption by a few million so that’s not entirely true.
@@alfalfa672 overtaxing is a bad thing, wealthy people will move and pay their taxes elsewhere. Instead of more you will get nothing. "The poor lack much, but the greedy lack more"
@@elenagordon3896 they are welcome to leave.
In 2004 I wrote a somewhat famous article called 'Top 8 reasons not to immigrate to Canada'. In short, the Canadian authorities tried to destroy my life. They made it so that I could not be employable in Canada. So I moved to the U.S. in 2005 and then some years later I moved permanently to the Philippines. I am happy that so many years later videos like yours are saying essentially the same things that I did. I was ahead of my time. I will never go back to Canada. Not to live, not to visit, not even a connecting flight. Too cold, too expensive, **taxes are astronomical**, no culture, no freedom, no jobs, no opportunities, only modern slavery, worst healthcare system, unbearable political correctness, crime infested/drug infested, xenophobic people, too depressing. It has become a North Korea style dictatorship in the western world.
Their are many reasons why Canada has fallen apart. But the number one reason is ‘multiculturalism’. My friends, multiculturalism simply does not work. Different cultures do not come together and mix, different cultures come together and clash. The world is divided into different countries for a reason: because people hate each other and only want to be with their own kind. The number two reason for Canada’s demise is ‘socialism’. In this modern era of aging populations, it is mathematically impossible for socialism to continue. The government does not have the money to take care of old people and provide healthcare, pensions and the various other benefits, even with the astronomical taxation that burdens hard working Canucks. Well Canada, you had a good run. Time for Canucks to move to an emerging country. We welcome you here in Southeast Asia.
We get it.
You're racist and you hate government and especially hate taxes which actually are the price that people pay to live in a civilized society.
Eight of the ten countries with the highest GDP have diverse populations so your claim that diversity doesn't work is contradicted by the evidence.
And Canada's population is growing by over one million people per year due to immigration so apparently most people disagree with you.
In fact at the rate of daily population growth that Stats Canada currently puts out Canada's population will grow by close to 1.4 million people over the next 12 months.
Canada's population grew by about 3.2% last year, an extremely fast growth rate.
And no - Canada is not a socialist country.
Quite bizarre that you have that delusion.
I own a small rental unit for my retirement. Kills me that the government needs $85,000 when I sell it. Its the cheapest house in town so does not leave me with much
I know it’s insane. Yet the Uber wealthy don’t pay taxes cause we don’t tax non residents ( need to live here 183 days ) the super rich know this .
I had five ...happy to pay tax i feel so sorry for u...this is Canada
Capital gains tax does not apply to the sale of your principle residence.
Just live in it for a couple of years and claim it as a principal residence before you decide to sell it. Keep Trudeau's filthy hands out of your pocket.
@@jamiefield9506 wait if we keep these clowns in power it will
What IS the new capital gains tax? I just did a cursory search online and it's not clear to me
For individuals, under 250k 50% of the capital gain is included as taxable income. Over 250k 66% is included as taxable income. The later is the change. For businesses I believe it was increased from 50% inclusion to 66% across the board. And there's some carve outs as mentioned in this video.
It's a tax on investments, like stocks, bonds, real estate, and property. It makes being an investor not worth it in Canada. This also possibly implicates RRSPs, since according to Wikipedia:
"Capital gains earned on income in a Registered Retirement Savings Plan are not taxed at the time the gain is realized (i.e., when the holder sells a stock that has appreciated inside of their RRSP) but they are taxed when the funds are withdrawn from the registered plan (usually after being converted to a Registered Income Fund at the age of 71.) These gains are then taxed at the individual's full marginal rate."
@@ResidentWeevil2077 It doesn't affect RRSPs. All gains in RRSP are ultimately taxed as income when the are withdrawn. You can buy and sell all you want inside an RRSP and there are not capital gains. You can earn all the dividend income you want and there will be no tax on the dividends. BUT when you withdrawl fom the RRSP (or later, the RRIF it converts to) the withdrawals are taxed as income.
@@ResidentWeevil2077 It's extreme to suggest that it makes being an investor not worth it in Canada. For most individual investors this is a total non-issue because they will never see 250k in taxable capital gains in a single year, hence they never hit the trigger for the higher inclusion rate. And if you invest inside a TFSA then your gains are not taxed at all.
Are we falling apart oh sorry falling behind 😢
My canadians
Buy a Tent and sleeping bags
Stock meal and kerosine stove live like nomadic ppl
Instead of the government, focussing on increased tax revenue, they need to be financially responsible with the tax dollars they already get and they are not. We need less of them to allow us to retain more. It’s very discouraging to be penalized because you’re trying to expand a business, that you make sacrifices not seeing your family, or you basically hire all your family to work less than minimum wage just because we’re all putting so much time in to get it off the ground. Enough is enough, they need to be fair and not cause despair.
that all stems down to cost of living.
I have 2 acquaintances that moved to Texas for IT jobs. Cheaper housing, no state tax and better weather. This 75% capital gains tax is going to make it worse for Canada.
75%?
75% of whatever tax bracket you are at like 75% of 35%
Nobody is paying a 75% tax rate on their capital gains.
Would be a shame if your friends misunderstood the capital gains taxes as much as you and went all the way to Texas for nothing.
@@geofflepper3207 Unfortunately, there are a lot of low-information or low-IQ commenters in these videos.
66% but you are correct Jagmeat did want the capitol Gains tax up to 75%
The tax is not the issue. The issue is the uncontrollable spending and printing of dollar that devaluate its purchasing power.
This tax is essential! Especially capital gains from real estate ,,, homes shouldn’t be for investment
Then why build them? You realize the cost of buying a home Will increase proportionately to the increase in taxes, right?
Where govt cares more about gender and environment than taxes and quality/safety/cost of living…. we are made poor and hopeless and shall continue to be such😢
there is great evidence capital gains taxes can go up for years im glad its getting attention
Will the capital gains be computed from June 2024, or all the way back to when someone bought a second home 40 years ago?
if you sell it after June 2024 doesnt matter when you bought it
The Trudeau government has no clue how to maintain businesses and how to make Canada appeal to more business. They are very good at doing the opposite. Companies and people are in the progress of exiting Canada and this is the failure of an idea to try and stop that. But all it will do is cause the problem to get worse. I feel very bad for the next government that comes in as the amount of damage done during Trudeau is monumental and epic of all proportions. If will take years, if at all for Canada to recover.
The Canadian worker could not pay any more taxes. It has gotten to the point where it is creating a disincentive to go to work. And it is not just the income tax, it is all the street taxes paid like GST & PST, along with many transaction taxes. The private sector had to step up. The Big 5 Banks in Canada alone have enjoyed a whopping 700% gain since 2003. More than $7 trillion in cash and assets combined. So the capital gains tax had to be increased. Seems pretty obvious to me and I am a business owner.
And its retroactive for those that founded businesses many years ago. Many business types don't have a carve-out.
When will Trudeau's reign of error end?
It will just trickle down to consumers as usual
The new capital gains tax hike won’t work as claimed, but will harm the economy as the economic costs exceed the amount of tax collected! Capital gains taxes are not paid exclusively, or even largely by ultra-high-income earners. Rather, Canadians with much lower levels of income, including many entrepreneurs and small business owners cashing out after a lifetime of work pay the majority of capital gains taxes in Canada. Therefore, any increase to the capital gains tax will affect Canadians across a variety of income levels, not simply the rich, as is claimed by Trudeau/Freeland.
It is the entrepreneurs whether it be tech or logs who create businesses and employ people who can't or dont want to. Doing this 66% tax rate will be a nail in the coffin for those wanting to build a new business in canada. It aint worth it. I think i will go get a government job instead
Guessing an AI suggested these new tax laws.
This government only entered "how can we increase taxes" not "is it a good idea to increase taxes"
We need transparency on which policies are AI generated.
I think more Taxes are needed on the Parasitic High Income Groups
Some people would believe in this "tax the rich" theory, but the fact is capital gain is already the after-tax dollars that people are willing to invest on the market - which leads to economics and job hiring. It also encourages the public to pull money into Canada because there is a profit room. Now the Libs want to increase the tax portion on Capital Gain, it is an indication that they ran out of ideas for improving encomocis and this will bring in serious negative impact on investment - which is what Canada much need right now. Cut down the spending and review the current procedure for housing building, free up the related government departments and let the market adjust itself. The least thing Canada wants right now is the government administration. The economics will recover as soon as the government puts less restriction and meaningless regulations.
we need an ELECTION
As a Chinese international student studying here for years, it’s my first time I know that Canada has tech industry
You haven't heard about ArriveCan??? our best jewel.
Sure a lot of people making over $250,000 a year in capital gains judging by the comments.
That's quite surprising given that in 2021 the median income in Canada was somewhere between $40,000 and $70,000 depending on the source of the information and that was the total income from all types of income.
How the heck are people making $55,000 per year from all sources making over $250,000 per year in capital gains?
Someone please help me to understand. The last I checked, blackberry is dead as their share price had declined to 3.87 today from its peak of 147.55 in 2008. I’m uncertain about the context of the ‘Tech economy in Canada’ they’re referring to. Could it be possible that they’re referring to the BRRRRRRRRR investors? I understand that the BRRRRRRRRR investors obviously use high tech such as latest computer, laptops and iPhones.
Small & medium sized businesses are the backbone of the economy. Big businesses are leeches.
Eat. The. Rich.
the gov of canada is so stupid its unreal, all ENTREPEUNERS and business people will simply pull out of here
Time to Leave Canada
Immediately!
Don’t let the door hit you on the way out.
@@brianmills3983nah this guy is just smart
Bye.
Wealth tax world wide has failed,driving investors out of countries Implementing these measures.
Gold bars for the kids inheritance so!!
Change your primary address to your secondary for a year and sell it as your primary. Next question?
Chasing away anyone with talent.
University of waterpoo
Money is sensitive and finicky, you annoy it, it leaves.
Oh the poor starving capitalists! Are you kidding me? 😂
No new tax just capital gsind
It tecs make 250-300,000 US $ in Texas and California
75 to 110k in Texas for an IT tech. You're thinking of system architect or CTO
@@phillipsandcastle8387and half of that in Canada and you need to live on a city you can’t afford
plus any interest on a mortgage is a tax deduction in the USA and the houses are half the price
Sadly it’s not even a tax and spend government. It is a tax and waste and waste government.
😂😂😂
FJT!
Thanks for ruining Canada JT. Horrible human being
Kind of makes me wonder what Bloomberg is going to get for shilling for the Trudeau/Singh crime syndicate.
That’s garbage
Canada right now is not fit.
Tech economy anyone retiering and selling a home, any major investors, any high paid proffesional like say a medical specialist.
Id say this will cause a brain drain but the fact we didnt toss this circuses the first reelection proves canada was lacking to start with
Someone selling their primary residence isn’t affected. A high paid professional isnt affected unless they are selling $250,000 of non TFSA capital and realizing that value.
@@legoboy7825 how about Farmers they regularly deal in purchases well over 250 you want them to just eat the loss if they sell a field or equipment?
@@vonfaustien3957 If they're selling for a profit? Yes, that already affected them.
Any tax always filters as a negative for the country and the middle class.
Its really not that bad this doesn't really hurt the majority of people commenting.
Pay your fair amount of taxes rich crooks like most people in Canada 😑👍
Right, Lets start with Blackfaces "Trudeau foundation". Fancy word for a "place to hide my vast wealth" and not pay a dime in taxes. You mean start there ?
Are you a teenager?
educate yourself..then come back to comment.
@@spankymcduff9683 you first 😑👎🏻
@@doomerang1438 maybe 😑😜 do you like kiss Rich people asrses 😑❓ I tried it and didn't get me not where 😑👎🏻
PLease stop blurting out that same old BS, "they would reinvest, with those gains" or how ever you put it, they never do the money just goes into the pockets of the already rich and super rich
''The wealthy have to actually pay a little? Tyranny!! D:'' said the ghouls.
The guy is not truthful
Which part.
people like u gotta be the worst i swear. How about you actually tell us where he isn't being truthful so we can go take a look for ourselves 😭
@@jptrainor No VC wants to develop a company in Canada. He plays both sides of the border pretending to care about Canadian startups. He talks about RIM to illicit Canadian sympathy. Yet he forgets that RIM was wiped out by USA VC's in California. Now with 66 % cap gains, who would take canadian denominated stock or stock options. Let alone risk effort and results to be egregiously taxed by Ottawa. Do the math boys and girls. BNN is a pump and dump that is always trying to put lipstick on a fat northern pig.
@@DeMaLiTiOnKiNg ANyone that uses Shopify or RIM is talking emotion or book. Like he said we can build startups anywhere with talent drawn from all over the world. From tax havens. 58% income tax. 66 % cap gains tax. CAD dollar with 35% USD haircut for salaries? Toronto and Vancouver real estate ridiculously over valued because of government failures and debts. Why would you want to build a company in Canada when the USA VC's scale so much easier. . Canada is a back water for tech. Probably another of the Canadian VC -'s that are desperate to be middle investors because they have no fresh pipelines.
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.
It is a significant hike.
@@user-ve6lj3sw9x Significant hike? 😄Burger flippers are subjected to a 100% income tax annually, while the affluent seem reluctant to pay a 66% tax on their lifetime capital gains. 😄
agreed, whining and complaining about nothing
The problem is that they are changing the rules retroactively. Would you like to be taxed retroactively on your income of the last 25 years?
@@jean-pierrearcoragi6313 Whether to act retroactively or not isn’t the issue here. If the owner wants they can sell the assets now. It’s perplexing to me that someone who purchased a house for $100K now worth 1 million, would find paying about $50,000 problematic, yet they don’t seem to mind their asset’s value increasing by one third in just the last three years. Good try.
Imagine thinking taxing millionaires is a bad thing.
Math must be hard for you. If you make millions you pay more due to percentages. No need to increase it to 66%. The logic if we must punish millionaires is flawed.
@@AlphaMatt1000then don’t sell assets over $250k every year… can these millionaires not live on $200k in realized gains?
@@legoboy7825Why sell homes? Why even build homes? People can live on the street like they're supposed to! Stoopid peasants
Everyone must hate Trudeau now
These guy just whining about paying taxes.
You serious?
Exactly, this guy isn't a business owner, he's a venture capitalist. Any decently employed Canadians pays a lot higher tax rate on our salaries.
As a student in financial services and an established education in business, the new capital gains tax helps with productivity where it is maintained and not where an investor or group of greedy individuals seek to sell off their assets and pay shareholders a dividend. No one should be seeking to flip homes for profit or find ways to inflate a specific market's fair value or value of assets. The problem needs to stop, or a higher tax is needed to help everyone involved with the core aspect of inflation.
Yes! Thank you! Finally someone talking some sense.