Posted in Community, family, government, Life, money, Parenting, politics, Toronto

Ontario Election 2018: Thoughts


Don’t we tell our children to go to school, work hard, get good grades, go to University, work hard, get good grades, graduate, and then with all that effort and knowledge, they can make as much money as they want?

With tax rates shooting up under the Ontario Liberal government and set to go up even more under the NDP government, if elected, do we really want to tell that to our kids any more?

Or should we clarify or amend that for 2018 and beyond to something more like this;

 

Go to school, work hard, get a solid education then go to University or College, and get a better education then go out and make a ton of money because if you make a lot, you’re going to be paying more than everyone else in taxes, and you’re ambition, skills and success are needed to pay back a massive debt and deficit that previous generations of government have created so that they could stay in power.

Congratulations, future generations!  The future is here and your earning power is needed more than ever to pay for mismanagement of financial resources and bad spending.

Earn more, and pay more.

Where is the incentive?

It’s likely there will be parents telling their kids that the sweet spot is now $42,000 in Ontario.  Under $42,000 and you pay 5.05% in provincial tax.  Earn more, but don’t report it.  Or don’t earn it and let those foolish ambitious people pay almost 3 times what you do in tax for earning less than 3 times what you make.

The system is broken.

And if another person tells me that “balancing the budget is not that important”, I’m going to lose it.

I’d like that person to run their household the way the Liberals ran this province and the way the NDP would run the province for just one year and see what they’ve got at the end of the year.

It won’t be a guaranteed job, with a guaranteed salary.  It’ll be bankruptcy or homelessness.

What ever happened to not purchasing what you cannot afford to pay for??

Shame.

#onpoli

Advertisements
Posted in #OHIP4IVF, Canada, Community, disaster, family, government, Life, money, Parenting, politics, Toronto

Ontario Provincial Election Primer 2018. Undecided? Read This!


On June 7th, 2018, Ontarians will get an opportunity to vote in an election which will shape the way our province runs for the next 4-years.

The decision we make, has to be made based on what is best for the collective whole, what is best for us, and what is best for the next generation of Ontario Taxpayers, and not based on what people will say about us, our Province, our Premier or our Prime Minister.

The task is a tough one, but let’s try to shed some light on the platforms and what to expect for the next 4-years, and see if that helps you decide who gets your vote.

In 2014, the Ontario Liberal Government made these promises;

Personal taxes

Liberal 2014 pledge was to “Raise taxes on top 2% of Ontario earners”

In order to see how they did, I pulled the Ontario tax rates from the Canadian Tax Returns from 2010-2018.

Ontario tax rates

2018: 5.05% on income of $42,960 or less, 9.15% on $42,963-$64,077, 11.16% on $64,077-$70,000,  12.16% on $70,000-$220,000 and 13.16% on income over $220,000.

2017: $42,201 or less @5.05%, $42,201-$84,404 @ 9.15%, $84,404-$150,000 @ 11.16%, $150,000-$220,000 @ 12.16%, over $220,000 @ 13.16%

2016: $41,536 or less @ 5.05%, $41,536-$83,075 @ 9.15%, $83,075-$150,000 @ 11.16%, $150,000-$220,000 @ 12.16%, Over $220,000 @ 13.16%.

2015: Less than $40,922 @ 5.05%, $40,922-$81,847 @ 9.15%, $81,847-$150,000 @ 11.16%, $150,000-$220,000 @ 12.16%, and income more than $220,000 @ 13.16%

2014: $40,120 or less @ 5.05%, $40,120-$80,342 @ 9.15%, $80,242-$150,000 @ 11.16%, $150,000-$240,000 @ 12.16%, More than $220,000 @ 13.16%

2013: $39,723 or less @5.05%, $39,723-$79,448 @ 9.15%, $79,448-$509,000 @11.16%, over $509,000 @13.16%

2012: $39,020 or less @ 5.05%, $39,020 – $78,043 @ 9.15%, $78,043-$500,000 @ 11.16%, More than $500,000 @ 12.16%.

2011: $37,774 or less @ 5.05%, $37,774-$75,550 @ 9.15%, More than $75,550 @ 11.16%.

2010: $37,106 or less @ 5.05%, $37,106-$74,214 @ 9.15%, More than $74,214 @ 11.16%

 

As you can see, the tax brackets move year over year, and there have been additional tax brackets added. Here is how much Ontarians earned, according to Statistics Canada census.

According to Statistics Canada

Individuals by total income level, by province and territory (Ontario)
  2011 2012 2013 2014 2015
number of persons
Total, all income groups 9,741,870 9,743,420 9,867,280 10,083,520 10,157,280
Under $5,000 872,840 799,690 805,190 855,500 764,990
$5,000 and over 8,869,030 8,943,730 9,062,090 9,228,020 9,392,290
$10,000 and over 8,155,630 8,245,590 8,375,390 8,562,450 8,748,520
$15,000 and over 7,219,670 7,322,660 7,457,070 7,655,920 7,878,190
$20,000 and over 6,301,960 6,416,620 6,545,820 6,745,310 6,974,390
$25,000 and over 5,530,610 5,645,750 5,772,340 5,959,770 6,184,900
$35,000 and over 4,334,550 4,460,560 4,582,210 4,749,620 4,948,440
$50,000 and over 2,852,030 2,972,470 3,087,320 3,230,610 3,394,390
$75,000 and over 1,404,030 1,487,700 1,574,090 1,668,890 1,771,250
$100,000 and over 658,520 707,620 766,990 819,960 886,190
$150,000 and over 231,310 246,520 265,550 278,330 305,590
$200,000 and over 122,190 128,140 136,290 141,740 157,450
$250,000 and over 78,370 81,210 86,300 88,600 98,750
$
Median total income 30,290 31,310 31,820 32,380 33,840

According to Statistics Canada, in 2015, there were 10,157,280 Ontario Taxpayers.

For the Liberals to increase taxes on the top 2% of them would, mean increasing taxes for approximately, 203,145.6 Ontarians, which would be every Ontarian earning over $200,000 per year.

It looks like that has happened, and I’m sure many would support that, but have a closer look at the numbers, and you will see that in 2013, the top tax rate of 13.16% applied only to Ontarians earning over $500,000, but that was dropped in 2014 to apply to Ontarians who earned over $220,000.

In 2013, if you earned $200,000, your tax rate was 9.16%. In 2014, it was 12.16%, and in 2015, it was 13.16%

That is a 4% increase on the highest income earners!

Wait until later in this post to see what the Liberals did to the “middle class” and how much their taxes increased!

 

Corporate taxes

In 2014, the Liberals promised to;

  • Maintain corporate tax rate at 11.5% for now
  • Increase tax rate on aviation fuel
  • Remove small business tax deduction currently used by large businesses

Fact: Ontario Corporate Tax Rates have a low and a high, and in 2018, the rate was 3.5%-11.5%.

The low end is one of the highest in Canada, while the high end is one of the lowest in Canada.

Under the Liberal government who states that Corporations must pay their fair share, the Ontario General corporate income tax rate was:

14% before July 1, 2010

12% June 30, 2010

11.5% after June 30, 2011.

 

In the most recent budget, the Ontario Liberal government matched the Federal Liberal government and got rid of the Small Business Deduction – which reduced the corporate income tax rate on the first $500,000 of active business income of Canadian‑controlled private corporations (CCPC) earned to 4.5%.

As of January 1, 2018, the lower rate of Ontario corporate income tax decreased from 4.5% to 3.5% and CCPC’s with taxable capital is between $10 million and $15 million are no longer eligible for the preferential corporate income tax rate of 4.5% on the first $500,000 of active business income.

 

Jobs

In 2014, the Ontario Liberals pledged to;

  • Increase minimum wage to $11/hour
  • Spend $2.5 billion over 10-years on a Jobs and Prosperity Fund to attract and keep businesses in the province
  • Spend $38-million in the Youth Employment Fund in 2014-15 until September 2015
  • Simplify and restructure Foreign Credential Recognition Program
  • Spend $25-million in the Aboriginal Economic Development Fund over 3 years to promote aboriginal business
  • Create a regulated crowdfunding system
  • Spend $75-million on a “wine strategy” to encourage exports of Ontario VQA winesAside from really jacking up the minimum wage which resulted in the largest loss of part-time jobs in the history of this province, the government spent a lot of our taxpayer dollars in areas which are difficult to measure the cost to job ratio.

Deficit

In 2014, the Liberals pledged to;

  • Balance the budget by 2017-18

Not even close! Between 2007-08 and 2018-19, Ontario’s debt grew from $157 billion to $325 billion.

One only has to look at this chart from the National Post to see the damage that Liberal Spending has done to the deficit, which we all have to pay back, eventually.

In 1985, the Liberals under David Peterson arrived, marking the defeat of Ontario’s four-decade conservative dynasty.

In 1990, Bob Rae became premier with the NDP forming Ontario’s government for the first time in history and their tenure coincided with the worst recession since the end of WWII, resulting in plunging revenues and growing expenditures in an effort to maintain services and stimulate the economy.

The resulting deficits were as high as $12.4 billion and saw the accumulation of $63.4 billion in net public debt.

By 1995, Ontario’s net public debt had reached $101.9 billion.

The NDP government was replaced in 1995 by Mike Harris’s Conservative government, which began expenditure reduction (cut costs) and restructuring to balance the budget as well as tax reductions to stimulate the economy.

Lower taxes, lower interest rates and a booming U.S. economy together helped Ontario’s economy rebound and government revenues grew, helping close the budgetary gap.

Ontario balanced its budget by 1999 but its net debt still grew to $138.8-billion under Ernie Eves in 2003 from $101.9-billion in 1995.

The defeat of Eves ushered in the Liberals under Dalton McGuinty in 2003 and then Kathleen Wynne in 2013.

This period witnessed the largest debt accumulation in Ontario’s history.

Between 2003 and 2014, Ontario’s net public debt grew to $287.3 billion from $138.8 billion – an increase of $148.5-billion.

The Liberals reduced it once, by $1.1 billion dollars after selling of part of Hydro 1, but that surely cannot be the only way to pay down the debt, can it?  Once all the assets are gone, what would they use?

Ontario has been a province since 1867 but 87% of its net public debt was accumulated in the years since 1990.

*** Interest on this debt is $11 billion a year! ***

 

Health care

In 2014, the Liberals pledged;

  • Increase hourly wage for personal support workers by $1.50 in 2014 and 2015 and $1 in 2016
  • $20-million to improve access to primary care physicians
  • Expand home, community and supported home care for 46,000 more seniors
  • Access to dental services for 70,000 more children in low-income families
  • Create low-income health benefit to provide vision care, drug coverage and mental health services to low-income families
  • Eliminate service waitlists for 21,000 people with developmental disabilities
  • $5-million to Children’s treatment centres
  • Expand and improve hospitals over a 10-year plan
  • Cap or cut hospital parking fees for frequent hospital visits
  • Establish Patient Ombudsman

 

Unfortunately, this Liberal government will be known for failing hospitals, failing patients, and failing to take full care of the lowest income earners.

Instead of free medication for the poorest Ontarians, the Liberals provided free medication for children.

Nursing homes are still over crowded. Hospitals are still over crowded. Doctor’s are leaving the province due to the Liberals poor negotiation / tax increase on them.

Pensions/Seniors

  • The Provincial Pension Plan to provide further retirement savings to the Canada Pension Plan

But thanks to the Federal Liberal government, this did not happen and while the concept was a good idea, the burden of cost for administering this program would fall to the employers, who have already been hit with increased taxes, and in 2014, had no idea what was to come with the sharp rise in the minimum wage.

 

Education

  • Implement full-day kindergarten for 4 and 5 year-olds by September 2014
  • Expand student nutrition program to 340 more schools
  • Integrate 60 minutes of physical activity into the school day
  • 3-year $150-million spent on technology and learning fund for tools such as tablets and cameras and professional development for teachers
  • $10-million to create Experience Ontario – Done – Experience Ontario is a pilot program for a limited number of recent high school graduates who have an interest in attending postsecondary education or apprenticeship training, but are uncertain of their next steps.
  • Keep 30% off tuition grant for post-secondary students – Hidden tax increase because if tuition drops by 30% and teachers / teaching assistants, etc., keep getting pay raises, then who gets to make up the difference… Ontario Taxpayers!
  • Build new post-secondary campuses and create spaces for 15,000 more students – this was announced – to be built in Markham – a joint venture between Seneca College and York University. Ironically, after the York University FINALLY opened, a mere 10-years later than it should have, the government plans to build this campus where there is no underground service… Can you say commuter University part 2.

 

Transportation/Transit

In 2014, the Ontario Liberals pledged to;

  • Invest $15-billion in transit projects in the Greater Toronto and Hamilton Area, including the electrification of GO Express Rail and downtown relief line
  • All-day regional express rail GO service in Waterloo Region
  • Invest $14-billion in transit projects outside GTHA, including $1-billion in Ring of Fire transportation infrastructure
  • Two-way, all-day GO Train service in more communities
  • $2.5-billion for highways including expanding Hwy. 427 and expanding Hwy. 7 to four lanes between Kitchener and Guelph

They didn’t agree to speed up the building of current Toronto projects like the Eglinton LRT, or the proposed Finch LRT, which has been dragging along for 6-years costing commuters and business owners significant amounts of money each and every day. Ultimately, they can propose what they want, but they have to get the job done, and that has not happened, anywhere.  Traffic is getting worse by the day.

 

Consumers

  • Lower auto insurance rates by an average of 15% by August 2015
  • Create Consumer Bill of Rights

This pledge was a giant joke, as Ontarians pay some of the highest insurance rates in the world, while Ontario insurance companies make some of the highest profits in the world.  Additionally, what good is a Bill of Rights without any teeth? 

Family care

  • Pay for one cycle of in vitro fertilization – check. Good one!
  • Increase Ontario Child Benefit to $1,310 & index it to inflation afterward – done. Currently at $1378 per child per year.
  • Call on federal parties to include a national child care program in 2015 election platforms… Err, okay, this has not happened. Maybe they should focus on, I don’t know, Ontario!
  • Increase Ontario Works and Ontario Disability Support Program rates for people with disabilities by 1% in 2014-15

Where was removing the Child Fitness Tax Credit??? Wasn’t mentioned but was removed – essentially a tax increase! Families put kids in programs for health and due to the tax incentive.  The removal of this credit is significant, sadly.

WSIB is killing Ontario businesses due to the costs to administer and it punishes the workers. This needed a major overhaul, but wasn’t touched.

 

Environment/Energy

  • Eliminate debt retirement charge on residential electricity bills
  • Develop program to reduce electricity bills for low-income families
  • Keep Northern Industrial Electricity Rate Program to help businesses reduce energy costs
  • Expand outer boundary of Greenbelt over next six years
  • Promote urban forestry
  • Address algae problems in Great Lakes
  • $30-million over next 10 years to maintain Walkerton Clean Water Centre
  • $30-million over next three years to promote local food
  • $25-million over three years for cycling strategy CycleOn
  • Expand provincial trail network

I’m not even going to touch this disaster portfolio by the Liberals. They spent, spent and then spent more, and they taxed, raised, and increased anything and everything to pay for their out-of-control spending. Gas taxes went up, user fees increased, hydro coasts soared, Liberals went to jail, Liberals went on trial, and everybody had to pay.

 

Political reforms

  • Maintain MPPs’ salary freeze – still $116,500 as it was in 2008. Not even increased in line with inflation. That must suck.
  • Cap public sector and broader public sector executives’ salaries – check
  • Reduce number of government agencies by 30% in 2015

There are currently 28 Ontario Agencies;

Accessibility Directorate of Ontario
Government & Consumer Services
Environment & Climate Change
Citizenship & Immigration
Agriculture, Food and Rural Affairs
Attorney General
Natural Resources & Forestry
Children and Youth Services
Municipal Affairs
Health and Long-Term Care
Treasury Board Secretariat
Tourism, Culture and Sport
Labour
Natural Resources & Forestry
Community Safety and Correctional Services
Education
Finance
Advanced Education and Skills Development
Transportation
Northern Development and Mines
Research, Innovation and Science
Energy
Infrastructure
International Trade
Housing
Children and Youth Services
Francophone Affairs
Community and Social Services

In 2010, I counted 26 of them. I’m sure there must be more, but merging them together doesn’t mean efficiencies were created, it just means fewer web-pages to have to update.

  • Introduce financial accountability officer – done
  • Give municipalities option of ranked ballots as an alternative to first-past-the-post in elections

After a review of the facts, this government has essentially lived up to their spending promises, however, there are 2 areas where I believe they failed miserably;

  1. Spending, and
  2. Taxation.

Increased spending where there is a balanced budget means the government takes in X amount of dollars in tax from Ontarians, and spends X amount of dollars.Unfortunately for all Ontarians, the government took in X amount of dollars from Ontarians, yet spent hundreds of billions of dollars more than they took in.

The effect of this spending means that Ontario has to borrow the money and has to pay interest on this borrowed money.

The amount Ontario has borrowed, or the deficit, currently stands at $325 billion dollars!

Imagine earning $100,000 per year, and borrowing $30 million dollars from the bank?  Then having to borrow more and more each year just to make the minimum payments on the interest to stay out of bankruptcy?  That debt will never be paid off unless you earn significantly more amounts of money, reduce all of your expenses, and if the lender agrees to reduce the interest.

If, however, the bank calls the loan, then you are bankrupt.

The same holds true for provinces.

The long-term effect of this irresponsible spending is that going forward for every X dollars the province brings in as tax dollars, there is an amount, let’s call it Y, which the government MUST pay in interest to the bank on the money they had to borrow. That means in order to balance a budget, they have to get even more money from Ontarians, which means even higher taxes, or they have to cut spending.

But if they cut spending, then they have to cut services, which is what they claim the Conservatives always do, so they don’t cut expenses or raise taxes, they do it in a much sneakier way so that you never know they are doing it.

One way this government has reduced spending and increased taxes, for example, is by getting rid of tax credits or deductions, such as the Child Tax Credit, or the Transit Credit. By not allowing these credits, the government no longer has accept less taxes from Ontarians and they win again because either these Ontarians will get back less taxes (because no deduction).

It’s brilliant.

It’s devious.

It’s immoral.

It’s like reducing the size of a jar but charging the same price. Consumers think they’re getting the same amount for their dollars, but in fact they are getting less and paying the same.

If the government told you back in 2014 that they would spend the province into bankruptcy and increase taxes by 3-4% on every Ontarian earning over $40,000/year while cutting credits and deductions, would you have voted for them?

Funny how that was never discussed…

 

Note: By moving the middle tax bracket, your $70,000 of income in 2014 put you in the 9.15% tax bracket, but in 2018, it puts you in the 12.16% tax bracket. That move increases taxes on the “middle class” without increasing the tax rate.  This was done while both the Liberal governments here in Ontario and Federally have been campaigning against the “rich and wealthy.”

These adjustments, along with the adding of levies, and user fees, and all those other words which mean tax, is just another way to prove that this government is underhanded and untrustworthy.

So instead of posting each parties platform and going through the pros and cons of each government, I decided to save everyone time and pull out what I feel really matters.

Liberals: More spending. Budget not balanced until 2024-2025.  Wave hands, and magically increase taxes on everyone over $50,000.

NDP: Even more spending.  Remove the power for governments to call an end to strikes. Debt and deficit to continue to grow.  Money to come from increasing taxes on the”rich” which we now know to be everyone over $40,000 per year.

Conservative: One or 2 years of deficit, then balanced budget and begin paying down the debt.  Plan to get more money into the governments pockets is not through increasing the tax rate, but by lowering taxes, gas, hydro, and letting Ontarians spend more money because 8% of that HST (consumption tax) belongs to Ontario.

Green: Increase spending for 2-3 years, no balanced budget for 3-4 years, and increased revenue to come from taxing the “rich” taxpayers and corporations.

 

Personally, if you ask, I’d rather tighten my belt buckle now and pay that bit extra in order to see the deficit reduced so that my children are not paying for this in the next 5-10 years.  Unfortunately, because the Liberals typically spend without consideration for where the money to pay for it will come from, it puts the next governing party in a bad light because they have to reduce waste, and cut where the Liberals didn’t want to.  It’s a great strategy to keep getting elected, but as a Taxpayer its annoying and unfair.

Good luck and get out there and vote!  It’s your democratic right!

Posted in money, Parenting

Holidays, Money and a few last minute ideas…


I hate to break it to you but the holidays are here, and for many of us this means spending far too much money on gifts our kids and families really don’t need. Don’t get me wrong, I’m not anti-gifting, I just don’t like having to buy gifts as a result of socially constructed consumer norms (to be addressed in a future post). That said, I’m a mom of 5-year-old twins and explaining what a social construct is will result in the consumption of far, far too many bottles of wine so I’m opting for conforming – at least to a certain extent.

Everyone knows the holidays are about family, friends, spending time together and sharing the love and,  if you’ve done your job well, your kids know this well. Ya know what else kids know? Holidays = presents! So, since I’m buying into the holiday crap, I’m at least going to do it in a way that doesn’t put my family into peril. Peril? yes, peril.

The holidays are expensive. If you’re not careful, the parental guilt that inevitably comes with the knowledge you can’t get your kids everything they want could put your family into a negative financial situation that’s difficult to recoup from.

“No, you can’t have the Nintendo, doll house, race car and Barbie… many kids don’t even receive gifts during the holidays…we’ve very fortunate to have everything that we do… when I was your age I got a matchstick for Christmas/ Hanukkah/ Kwanza…” Sound familiar? As parents, we want to give our kids the world and everything in it. We also don’t want to raise assholes. And this principle is what often alleviates that guilt I was talking about earlier. Now, we’re not just trying to save money, we’re teaching our kids a valuable lesson, right?

I dunno about you, but I still feel like total shit when I can’t get my kids what they want or, more to the point, what I want to get them. That said, DON’T GO INTO DEBT FOR THE HOLIDAYS. IT’S NOT WORTH IT. Yes, like a crack addict, you’ll get that initial high of being the ‘best parent ever’, but come January you’re going to crash and it’s gonna be ugly. (Please trust me on this, I watch people do it every day, let alone every year, it’s the line of work I’m in.) So, how do you avoid this scenario? Here are my 5 top tips I use to financially survive the holidays:

Tip 1 – Everyone loves photo gifts. Sign up for all of the online photo-gift sites and throughout the year they send great freebies, ranging from mugs to calendars to bags and prints.  You pay the shipping (which isn’t cheap but it’s far cheaper than paying for a gift and shipping) and that’s it!

Tip 2 – Shops the sales before the ‘sales’.  If you’re like my husband and don’t plan all that far in advance for gift giving then wait until September to take advantage of the back to school sales for toys, home stuff, clothing, make up etc. they often end up being cheaper than all of the sales that are currently out right now.

Tip 3 – THE DOLLAR STORE IS YOUR FRIEND. There is absolutely no good reason to spend five times the amount of money on a brand name toy or game when you can get the exact same one at the dollar store? They’re all made in China so why spend $20 instead of $4 for a logo? For the record, half of my son’s gifts are from Dollarama (no, they didn’t pay me to endorse them, I’m just a big fan)

Tip 4 – New does not mean better. I just bought half of my daughter’s gifts from kijiji, craigs list and Facebook market (again, no endorsement). If the toys are in good condition then who gives a crap about the plastic package? This way, you’re saving yourself some $ and giving Mother Nature a hand!

Tip 5 – It doesn’t have to be fancy. My kids are getting books, markers and fun earmuffs as gifts. They’ll love it because it’s all about the delivery. I’m in my 30’s and I still love getting this stuff as gifts, but maybe that’s just me.

I hope these tips help ease your guilt and keep enough money in the bank to pay the bills at the end of the month.

Now for some examples of the aforementioned tips. (Disclaimer, I received all of these products as free samples, but you can bet your ass you’ll know if I didn’t like something about them.)

Books:

But I don’t Eat Ants is a super cute story for picky eaters and their parents. Not to spoil it, the lesson for parents goes back to tip #5: it’s all about the delivery! The final line of the book confused my kids a bit but  it was a fun story for all and every time I make tortellini they laugh hysterically yelling “TORTELLINITOTALLINI!”

Finding Gobi is one of the best feel good books for young kids that I’ve come across in a long while. The first time I heard the story Gobiwas on CBC and the publisher blindly reached out a couple of weeks later. I wanted to see if the story I heard on the news was accurately depicted in the book and how they were going to adapt it for young kids.  Much to my surprise it was really well written, succinct and colourful, which is key for young kids. They also sent over the novel version which I didn’t have a chance to read but my friend’s son, who’s 8, said it was a great book – why would he lie, right?

Home:

I was never a coffee drinker and figured it was dumb to get one of the single cup machines for tea since they always tasted so diluted, so I never bought any of the ones on the market. I have seen the light thanks to the Keurig that was sent to us. It has a new ‘strong’ brew option which actually allows tea to taste likcoffeee tea!  I also like that it doesn’t take up all that much counter space. The machine is also pretty tough, which I realized as I used pliers to pry the wrong K-Cup that I jammed in, out of the machine (don’t judge, I was running on 2hrs sleep!)

Random fun things:

Cozyphones are a super cute alternative to headphones, with the bonus of keeping your munchkins’ ears toasty. I’m hoping they come outcozyphones with a version that can be worn in summer since these are fleece. Regardless, the kids look freaking adorable in them and love wearing them around the apartment.

Sigma Beauty reached out and sent over a bunch of items from their new Creme De Couture line. I was pretty hesitant to include makeup in a gift guide since I reallymakeup don’t wear much unless I’m out for an event and because isn’t all makeup basically the same? Evidently not! According to my makeup-wearing friends quality varies drastically. So I figured I’d try a bit myself and share some with my mom (avid makeup wearer). I have to say I was shocked at how much I liked it! The colours are super vibrant and the Liquid Lipstick stays on the whole night (hubby can attest to that!). My next thought was that it must be super expensive since it’s pretty good quality but again I was pleasantly surprised! All in all, I really liked the products and I wear a bit more makeup these days. I hope these help in your last-minute shopping frenzy and I wish you good luck!!!

The Urban Daddy and Urban Twin Mommy would like to wish you all a very happy holiday season, filled with love and light. May the year ahead be filled with happiness, health and success (in whatever form that means to you!).

XOXO

 

 

Posted in government, Life, politics

Will the Liberal Budget increase Capital Gains tax from 50% to 66.67% or 75%?


In the days before the Federal budget is revealed, rumours continue to swirl that the Liberals are going to raise taxes in a roundabout way, by reducing the tax break Canadians receive from capital gains.

In the 2007 Federal budget, the Conservatives increased the lifetime capital gains exemption 50% to $750,000, which means that the first $750,000 of the sale price of each shareholders company “Shares” will have a capital gain which is exempt from all income taxes.  The rate has changed over the years, so its’ not without reason to believe it might change again, especially in light of the money the Liberals promised to spend.

Currently, under the Income Tax Act, 50% of capital gains, on everything from property to stocks and mutual funds, are taxed.  The effective tax rate is therefore half of the marginal tax rate.  In some provinces, the current capital gains rate means tax of more than 25% on investments for high income investors.

Speculation is that the Liberals might move that taxable amount to 2/3’rds or 75% while they pay for all their election promises, and then eventually returning that to 50% near election time to encourage voter support.

With capital gains being taxed less heavily than dividends, there is little incentive for business owners to take cash out of their business and pay the taxes via dividends when they can just sell the company, pay the capital gain, and then start again.

The Liberals want to be more friendly to small business owners and the middle class, it will be interesting to see if they change this rate in the budget since they did not mention this in their election campaign.

A change of this magnitude might trigger an asset sale, or cool the real estate market for people who buy assets, then flip them within a short-term period of time, realizing a gain on the sale.

 

Posted in news, politics

Ontarians Open Your Wallets… Wide! Liberal Budget 2016.


Nine years, Ontario has elected Liberal governments and for nine years, the taxpayers in this once mighty province are facing a budget whiledeeply in debt.

In fact, when the Ontario Liberals unveil their budget today, it’s going to include some really fancy talking and no mention of increasing taxes, yet it’s the only way they can eliminate the deficit and put a stop to the massive debt.

How massive is the debt?

Ontario has the largest debt of any sub-national government in the world!

The world!

Taxpayers pay an astounding $11-billion dollars a year on interest on the debt. Think about how many unions could be paid off with those funds, gas plants moved or documents shredded…

The Wynne Liberals will likely blame the Ontario Conservatives, or the Federal Conservatives, but they have already started to leak the “tax” increases coming down the pipe for Ontarians, including 4.3 cents to the price of a litre of gas plus an increase of $5/month to our natural gas bill – in order to protect the environment, no less…

Where the rest of the “savings” come from is unknown at this time, however, healthcare and education are likely to take a big hit.

Additionally, while it’s great that grocery stores are able to sell wine, the Liberals are likely to set a new minimum price for that bottle through this budget and add additional taxes on top of it.

Here is a recap of the “highlights” of the budget:

  • Ontario’s net debt will hit $308 billion in 2016-17.
  • Ontario’s debt is the largest of any sub-national jurisdiction in the world
  • Ontario taxpayers are paying $11.8 billion in interest payments per year
  • Interest on Ontario’s debt is going to increase to $13.1 billion by 2018-19
  • University and college tuition will be free for students from families with incomes of $50,000 or less.
  • More than half of students from families with incomes under $83,000 will receive non-repayable grants (which exceed the cost of an average tuition).
  • A carton if cigarettes will increase by $3.00, effective at 12:01 a.m. Friday.
  • Taxes on tobacco rise at the rate of inflation each year over the next five years.
  • The minimum price for a bottle of wine rises to $7.95.
  • The LCBO will be increasing their mark-up on wine to compensate for the fact consumers can purchase them at grocery stores, so in June there will be a 2% hike, followed by 2% hikes in 2017 and 2018 with a 1% hike in 2019.
  • There will also be annual increases of about 10 cents in the tax on wine sold in private retail outlets, increasing from 16.1 cents to 20.1 cents over four years
  • The $30 fee for Drive Clean vehicle emissions tests will be eliminated in 2017-18 – not the test – just the out of pocket cost which taxpayers will be paying to the tune of $60 million/year.
  • Hospitals will get their first funding increase in five years, up $345 million, plus $12 billion over 10 years in capital grants for about three dozen major hospital projects
  • The threshold for seniors to be eligible for cheaper drugs rises from $16,018 to $19,300.
  • The Liberals have committed $333 million over five years to redesign and improve autism services.

 

So as the Liberals promised, the Liberals shall deliver.  Spend, spend, debt, deficit, spend…  To the highest debt in the world.

The Conservatives are going to have a huge headache cleaning this mess up in 3 years!