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.

 

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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!

What the Ontario Liberal Party, NBA referees and Toronto Mayor Rob Ford have in common


I have to be honest.

I’m pissed off.  I am fired up and I have not felt this way in a LONG time.

What has me all fired up, you ask?  Well it is the common bond that ties together Ontario Liberal Party leader Kathleen Wynne, Toronto Mayor Rob Ford and the referees of the National Basketball Association (NBA) who “officiated” the Toronto Raptors series against the Brooklyn Nets.

Any guesses?

Let me throw out a couple of terms which come to mind;

Stupidity.
Incompetence.
untrustworthy.

… and with all of these terms there is the one thing that binds them – that they are all completely inadequate at doing their jobs – and the frustration that they will not be punished for their inadequacies.

I’m at a loss.

Let’s start with the Premier of Ontario who took over from the former Premier but won this leadership role without a) knowing of any wrongdoing by the party before and b) took part in any decisions which were wrong (ie/shredding documents).  She thinks the people of Ontario are not aware that she is the exact same as Dalton McGuinty.

Really, Kathleen Wynne should not Wynne (err, win) the upcoming Ontario election, right?  She’s lied, played dumb, and is suing anyone who talks shit about her. She has proven to be a clone of Dalton McGuinty – spend first, then delist services and tax later. Then blame the Conservatives… Or the NDP.

Now that the campaign is on, I listen to her talk and no matter what she says, I cannot hear her.  I want to hear her – her message, her thoughts on the Province, on the city I live in, and on the hot button issues, but I cannot.  She talks and talks and I hear, “blah, blah, blah” and that noise is the past 9-years of Liberal rule and the lies, and waste that they have created all the while running the Province without any public scorn that has come the way of Toronto Mayor Rob Ford (more on him coming up).

I’m angry because I feel like no matter what she says there are a whole lot of Ontarians who are going to vote for her anyways because the Liberals are the middle of the road party so a vote for them is a “safe” vote. But it’s an expensive vote!

I’m even more frustrated because I do not feel that the PC’s leader is fit for the job – he’s not warm and fuzzy like Dalton was – and no one wants to see a NDP government in power (thank you Bob Rae), I’m afraid for Ontario…

Now on to Toronto and Mayor Rob Ford, who continues to show even his most ardent supporters that he’s somewhere between a moron and a giant moron when he tells the public he’s not drinking anymore, that his drug use was a one time affair (drunken stupor, anyone?), and then he continues to get caught doing the things he’s been stating he was not doing.  On video yet!

So here is what I know now about him.

He’s a liar.
He’s a thug.
He has addiction problems.
He is in denial, and he thinks that the public will continue to forgive him time and time again.

That was until this latest video emerged of him getting high, talking rudely about fellow colleague Karen Stintz and in doing so, flushing away his chances at re-election.

So he pulls the rehab card.

And while everyone knows he should have been in rehab a long time ago, he has “checked into” the world’s most effective treatment facility where after one week he is able to make outgoing calls and report that he feels “incredible”.

This time no one buys it, and trust me… in the same way the Toronto Star refuses to touch the George Smitherman story, they will find Ford and expose him again.  Even toying with the idea of Doug Ford running for mayor was thrown out, the bottom line is that Rob Ford will not and can not be Mayor come the next election.  Politics is about trust and he’s blown it time and time again.  I don’t trust him, the people of Toronto don’t trust him and those who were out to get him from election day (hello Joe Mihevc) are laughing and laughing.

The final piece of this puzzle of stupidity have the names and faces of the referring crew who handled the Toronto Raptors series against the New Jersey (err, Brooklyn) Nets.  Foul after foul called on the Raps and you started to understand that the whispers surrounding this series might be true – that no Canadian team was going to beat the Nets.

Even after acknowledging that the Nets tanked their last 2 games of the season to set up a playoff series with the Raps, the league said and did nothing, and while fouled after foul were committed against the team from Toronto, they said little more.  It got to be so obvious that even in the game 7 loss, the refs called a foul on Kevin Garnett of the Nets instead of Deron Williams because Williams would have received his 6th foul and fouled out of the game, whereas KG could take another.  On this specific play, it was 100% clear that Williams bear hugged and took down the Raptors player and sat on the floor hands together as if praying not to be called.

Clearly guilty.

Until determined to be innocent by the referees.

It was awful.  Embarrassing.  A black eye for a league which already had to deal with a referee who was cooking games for betting purposes.  The league would have been wise to comment at any point in time to suggest there was nothing happening – even suggest there would be a review – but the league was silent and the Raptors lost.

 

So here I sit, frustrated that Wynne, Ford and these referees continue on today as if they have legitimacy in their roles but they do not.

They lie, cheat and steal and until we, the public, have our say and force them to find a different job, we will continue to be frustrated, and shake our heads in bewilderment.

 

 

Metro News Answers my Question: When a comment isn’t a comment.


I don’t like to read Metro News, nor the Toronto Star and these are my long-time choices because I do not agree with their views on many things.  Granted, I appreciate many of the journalists at these organizations and hold nothing personal against any of them, I just don’t like the way they handle comments which are contrary to the views they publish, as was the case this morning when I commented on an article that I felt was inaccurate and biased.

Take for example this article in the “Urban Compass Toronto” section, written by someone named Matt Elliott regarding childcare in Toronto; “Next election Let’s Make Childcare the Issue and the Legacy“.  The article makes mention of 150 people protesting at Toronto’s City Hall asking on the municipal government (actually the article makes this Mayor Rob Ford’s issue – more on that later).  On the surface I agree that more can be done to help low and middle-income families and single parent families deal with child care so they can work and support themselves, but the last time I checked my list of responsibilities of the levels of governments here in Canada, the responsibility for child care falls in Provincial jurisdiction – under current un-elected Premier Kathleen Wynne and her tax and de-list Liberal party.

So in order to be sure that this wan not an oversight, I reread the article, then went to see what else Mr. Elliott has written and if his slant on this article were genuine or anti-Ford as seems to be the mandate of these publications, and it would be clear to me that the latter was correct.

With articles titled;

I firmly believe that either Mr. Elliott is being told to slam the Mayor with every article – sells papers – or maybe he is just not a believer in being fiscally Conservative – both totally fine – but he really should be clear upfront about this, shouldn’t he?  There is nothing wrong about being left-wing if you are willing to back it up, be clear to your readership and not write articles which represent “Urban Toronto”.  Urban Toronto does not agree with your views, Mr. Elliott.  Some may, but not everyone does.

So I took the time to craft a response.

I chose my words clearly and I used supporting documentation from the Government of Ontario website which stated that in 2010 the responsibility for childcare in Ontario was moved to the Ministry of Education.  I also pointed out that maybe if the Liberals were more fiscally responsible, they would have the funds to subsidize middle-class childcare and provide free child-care for the poorest and most in need in Ontario.  I think that is fair and a good use of our taxpayer dollars, do you?  Surely if the Liberals could have balanced a budget in the past 7-years without needing to raise taxes or de-list services they would be able to do exactly what Mr. Elliott, the defender of Urban Toronto, suggests.

I posted my comment for moderation.

It was deleted.

I am disappointed, yet not surprised.

I am not going to hold my breath waiting for a story about the 5 (or 15) ways Kathleen Wynne lied, or for a detailed look into George Smitherman who was reported to be a user of drugs, whose husband was found laying by the side of train-tracks and who blew a billion dollars of taxpayer money, yet was endorsed by the Toronto Star as being the best choice for Mayor, and I am not going to wait for someone to do some digging into Olivia Chow’s campaigning for Toronto Mayor while employed as a member of the Federal government who may or may not be using her office to support her future desire to be Queen.

Those investigations will never come from the Star, or from Metro.  Not when it’s way too easy to post an unflattering picture of the Mayor, a man with serious addiction problems, and make fun of him…

Breaking News From Toronto Municipal Council


I have received some Breaking News from Toronto Municipal council. It’s huge.
It’s exactly what the lefties were hoping for in their long campaign to discredit and embarrass the Mayor, Rob Ford (PS, lefties… You have done that already!).

Toronto Mayor Rob Ford may have taken drugs more than once. Oh my.

In a “drunken stupor”. Not in a “drunken stupor”. Crack. Heroin. Pot.

He’s a party in a package and now the media is going to camp outside City Hall waiting to get a comment from one of the Ford Brothers, and then talk to all the councillors who will tell you that Ford is not fit to be Mayor and, oh yeah, they are running for Mayor too.

They “hate” the distraction but they LOVE the attention!
Geez, I’ve been following Toronto City Council since I was a kid… Such a long time ago, and I never knew all the councillors like I do now. They’re everywhere. Even the one (or 2) who have been charged with offenses like driving under the influence all seem to wind up in front of the camera pointing fingers at the Fords.

So does ford need to resign now?

Does he deserve to be chastised for having his picture taken with an alleged member of the Hell’s Angels?

Only in Toronto can this be such important news… Still.

It’s like going to the zoo to see the animals. More on that at the end of this post.

Other somewhat important news only because it doesn’t involve the shaming of the Ford family:

London Ontario Mayor Joe Fontana is in court trying to explain how he stole $8 millions dollars of taxpayer mone through a charity in which he was on the board of directors.

and Ontario’s unelected premier Kathleen Wynne met with Toronto’s unelected deputy Mayor to discuss ways to waste taxpayers money. Wynne, whose party has blown billions of dollars of taxpayers money somehow escapes the fury of Toronto’s media.

Incredible!

and Nelson Mandela passed away.

But Ford did Heroin!!!

(Shaking my head).

Oh, and the animals I see… Hippos. Hippo-crites. Hypocrites. Lots of them.