Here is the problem for Canada, it seems all the citizen are so against paying tax but wants benefits. It’s crazy. As an immigrant, I am so grateful for what a great country and society Canada is. It’s my privilege to contribute since I won’t joining army & defending Canada in that front. How do people expect we can maintain a livable society if nobody wants to pay tax? Why should capital gain has such a special treatment? Income is income. ( I do have capital gain personally & paying high rate of income tax too).
I think more Canadians think like you than you think. It seems to be the loudest voices (who stand to lose the most) that the media focuses on. If you’ve comfortably maxed out your TFSA and RRSP, you’re doing a lot better than the average Canadian and you will be just fine paying a bit more tax. Now, there are some taxes I do disagree with (income tax is fine, but I don’t like sales tax on top of it. even if I ended up paying the same amount in taxes overall I’d rather it all be income tax. Sales tax is ridiculous.
I don't know anyone that want to pay 0% tax, like a true libertarian. I'm sure there are some out there, but I don't believe that to be the norm. I think that most people would agree a 100% tax rate would be unfair as well, so trying to find the right balance between these amounts is hard. I think a lot of people have a tough time watching governments spend frivolously, watching inflation eat away at their savings and buying power, and then paying even more tax. It's important to keep governments in check with these things, otherwise it can get out of control.
@@piranhaa2 by the same token though, anyone who has maxed out their TFSA and their RRSP is sitting in a much better position and doing very well for themselves compared to the average Canadian. And therefore they will be just fine paying a bit more on capital gains in taxable accounts. And remember, they still only tax half of your capital gains unless over 250k, so really half is still untaxed entirely and only if you’re selling assets for a profit of more than 250k, which again is not happening for the majority of Canadians. Primary residences are excluded even, so no arguments that it’s unfair for the avg Canadian. Honestly it’s businesses who complain the most about having to pay taxes. Individuals mostly are not going to be affected. They could tax ALL capital gains if they wanted, so we’re frankly lucky that we still get some amount untaxed on top of our tax free accounts. You don’t just need an income of 250k for this to affect you, you need an income so high that AFTER maxing out both tax free accounts and spending whatever on food, housing etc. in a year, you ON TOP OF THAT earn another 250k or more
@@Will140f totally agree with you. People with company ( like my husband) that has the extra $$ invested with gain will have to pay extra few percent on those gain. Still very privileged position. We are happy to pay to level out the wealth gap. It’s not a pretty sight/ feeling living in a society with high wealth gap. That’s when revolution happens when majority of society have nothing more to lose.
@@piranhaa2 66% inclusion rate for capital gain has very far way to go to reach 100% tax. Actually it will never get there. You have to have 100% inclusion rate with 100% tax rate, just simple math. I do agree with better management of spending our tax dollar though.
Great content, guys! I have a question. Ben mentions 'lifetime tax smoothing' when talking about mitigating tax risk (I didn't note the timestamp, unfortunately). I heard about it on another financial channel when discussing minimizing terminal tax bill, but I don't quite understand the reasoning behind it. Do you guys have a video about it 🙂 ? Or are there research papers or models that recommend it? Thank you!
Its truly impressive how little people understand about income tax and how many temporarily embarrassed millionaires exist. Should you sell the duplex you bought ten years ago to save several hundred bucks only you can tell.
Guy who will never in his entire life have 1 dollar in capital gains, let alone more than 250,000: “have you heard about this new capital gains bullshit Trudeau is trying to get away with?”
Here is the problem for Canada, it seems all the citizen are so against paying tax but wants benefits. It’s crazy. As an immigrant, I am so grateful for what a great country and society Canada is. It’s my privilege to contribute since I won’t joining army & defending Canada in that front. How do people expect we can maintain a livable society if nobody wants to pay tax? Why should capital gain has such a special treatment? Income is income. ( I do have capital gain personally & paying high rate of income tax too).
I think more Canadians think like you than you think. It seems to be the loudest voices (who stand to lose the most) that the media focuses on. If you’ve comfortably maxed out your TFSA and RRSP, you’re doing a lot better than the average Canadian and you will be just fine paying a bit more tax. Now, there are some taxes I do disagree with (income tax is fine, but I don’t like sales tax on top of it. even if I ended up paying the same amount in taxes overall I’d rather it all be income tax. Sales tax is ridiculous.
I don't know anyone that want to pay 0% tax, like a true libertarian. I'm sure there are some out there, but I don't believe that to be the norm. I think that most people would agree a 100% tax rate would be unfair as well, so trying to find the right balance between these amounts is hard. I think a lot of people have a tough time watching governments spend frivolously, watching inflation eat away at their savings and buying power, and then paying even more tax. It's important to keep governments in check with these things, otherwise it can get out of control.
@@piranhaa2 by the same token though, anyone who has maxed out their TFSA and their RRSP is sitting in a much better position and doing very well for themselves compared to the average Canadian. And therefore they will be just fine paying a bit more on capital gains in taxable accounts. And remember, they still only tax half of your capital gains unless over 250k, so really half is still untaxed entirely and only if you’re selling assets for a profit of more than 250k, which again is not happening for the majority of Canadians. Primary residences are excluded even, so no arguments that it’s unfair for the avg Canadian. Honestly it’s businesses who complain the most about having to pay taxes. Individuals mostly are not going to be affected. They could tax ALL capital gains if they wanted, so we’re frankly lucky that we still get some amount untaxed on top of our tax free accounts. You don’t just need an income of 250k for this to affect you, you need an income so high that AFTER maxing out both tax free accounts and spending whatever on food, housing etc. in a year, you ON TOP OF THAT earn another 250k or more
@@Will140f totally agree with you. People with company ( like my husband) that has the extra $$ invested with gain will have to pay extra few percent on those gain. Still very privileged position. We are happy to pay to level out the wealth gap. It’s not a pretty sight/ feeling living in a society with high wealth gap. That’s when revolution happens when majority of society have nothing more to lose.
@@piranhaa2 66% inclusion rate for capital gain has very far way to go to reach 100% tax. Actually it will never get there. You have to have 100% inclusion rate with 100% tax rate, just simple math. I do agree with better management of spending our tax dollar though.
Most people's reaction "I don't understand it, but I know I'm angry about it"
Ben's reaction "I'm going to model it"
Just show how irrational humans are.
Amazing podcast!
Totally agree with meeting in BC, so I can join.
Amazing show and great episode!!!
Yes
Great content, guys! I have a question. Ben mentions 'lifetime tax smoothing' when talking about mitigating tax risk (I didn't note the timestamp, unfortunately). I heard about it on another financial channel when discussing minimizing terminal tax bill, but I don't quite understand the reasoning behind it. Do you guys have a video about it 🙂 ? Or are there research papers or models that recommend it? Thank you!
Its truly impressive how little people understand about income tax and how many temporarily embarrassed millionaires exist. Should you sell the duplex you bought ten years ago to save several hundred bucks only you can tell.
Guy who will never in his entire life have 1 dollar in capital gains, let alone more than 250,000: “have you heard about this new capital gains bullshit Trudeau is trying to get away with?”
@@Will140f isn’t that crazy? Really don’t understand the hyped up hatred of Trudeau. Maybe they feel inferior or less lucky compare to Trudeau?
I love it ❤
Yea. If you were in USA, I'd be a client.