Is Canada ok?
Only 0.13 percent of the population makes 250k (Canadian) so like 175k USD a year in capital gains? Did I read that correctly 😱. Well it’s going to be even less now with a 2/3 wealth tax there’s no point in doing business in Canada.
No, you did not read it correctly. It says 66.7% on capital gains above 250k, not income above 250k
I corrected it. That’s still a microscopic. I am 28 and my stocks capital gains/401k are more than 175k a year.
It’s on realized gains
Capital gain only
Canada is a shithole
True it’s basically like Mexico / 3rd world now.
10 years of leadership based on virtue signalling and a finance minister with no financial background/experience will do that
I’m sure the government funded housing initiatives will be run efficiently and quickly lead to lower home prices for everyone. 😬
Good one lol
Great to see this implemented. Then when it fails we can point to it in the US and everyone that brings this up as an option can STFU about it. It won’t work because government subsidies like this don’t work, they bring up prices for everyone else.
Facts. Canada is showing us exactly what not to do every single day 😭. Canadas past 50 years is a what not to do guide that we can use so we don’t become a 3rd world nation and get beaten by china.
It's a bit more complicated than that. Typically in Canada for capital gains you are taxed only on the half of the amount you gained. So if you have a salary of 250k and capital gain of 300k (sold stonks), you pay tax on 250K + 300k/2 = 400k. Which will be taxed at around 40%. With this change now you will taxed on 250k salary + 250k/2 (first 250k of capital gains) + (300-250)*0.66 (anything above 250k) = 408k. So you are making the same amount in both cases, but your taxable amount is higher now. My understanding is that they are trying to go after people who make most or all of their income through asset appreciation rather than salary (house flippers, PE, VC, entrepreneurs, executives, rich retired people). Liberals overextended with their absolutely out of control immigration and spending plans which resulted in them having to raise money from somewhere. This was the least unpopular way to do it. Is it intelligent or effective? No. But when did it stop liberals from making Canada just a bit more deserving of the "Arctic Mexico" title.
But it was already at 50% which is insane. Going up even higher to 66.7% is reallllly crazy. Ours in the us is like 20 percent. If you hold it long term it goes less.
Agree. It's absolute insanity and the reason why 40% of my Canadian friends moved to the US in the last 4 years. Canada is actively pushing away the most productive members of society.
Yes Canada taxation is utter shit, but pretty much everything you wrote is wrong. As others said it is 250k of realized capital gains in a single year in taxable accounts only. There would be a minute amount of people withdrawing gains of this level each year; and if you are, spread it over 2 years. This really only affects rich people and dead people. Secondly the 50% to 66% is the percentage of gains that are taxed, not the tax rate. If I have 100k of cap gains (again cap gains not sale price), it would mean I am only taxed on 50k based on income tax brackets. So absolutely worst case scenario the tax rate would be ~25%.
Nothing I wrote was wrong. I correctly the capital gains long before you made your comment. Saying “this only affects dead people” Is wrong it affects the heirs and children of them.
2/3 wealth tax - wrong. In highest tax bracket this is 35% tax on capital gains.
250k in capital gains, not wages
Fixed.