Wealth tax increases risk of GICs | GIC discussions | Discussion forum

AllanB said
For example, one invests in a 3yr Gic after year one government announces increased taxes in year two you get dinged depending on income or net worth. If you had your money in a hisa savings acct you might be able to gift enough or other maneuver to escape their net.  

I did read the article in the Financial Post a few days ago that the PM has been seriously considering imposing a Wealth Tax on Canadians - needed to pay for high govt spending. Do you really think that more people would be able to escape the Wealth Tax just because they can "give away" their liquid funds not locked in GICs? I think that there are also some downsides to giving your liquid money away just to avoid this new tax.

cgouimet said

That article talks about a one-time wealth tax of 3% on people with assets of $10+MM and 5% on $20+MM. A 'little' above my worry point ...  

And, it's likely 3 or 5% above the $10 or 20MM, not the full amount ...

Once introduced a new tax doesn't go away, and the thresholds can be changed up or down any time, base widened, etc. How a wealth tax would affect GIC interest income is probably a topic virtually no-one in this country would focus on or even think about. But even though wealth taxes ultimately might in fact be detrimental in practice they are very attractive if I'm a politician in a society that generally supports the concept of taking more from the haves to give to the have-nots, i.e. more votes (plus the attendant virtue-signaling) might be the real purpose instead of fiscal desirability.

Death duties will probably make a comeback. There's no escape, unless you leave Canada.

KamWest said
I have been considering moving my family out of Canada to the Cayman Islands or similar. As soon as a wealth tax is voted on I will be closing my businesses in Canada and packing up.

Thing is 3-5% wealth tax is significant enough to say bye bye to Canada. Lets see what happens when significant funds start to flow out. Trudeau cannot spend his way out of that one.

We need the wealthy to reinvest and some do pay their fair amount in taxes. Canada is becoming very unfriendly to do business in and believe me when I say the exodus will be very real.  

I agree a "wealth" tax is the most stupid tax of all. It suits a political agenda and to get reelected and nothing else.

Good luck living on an island in the middle of the ocean, with rising sea levels.

To be a Cayman Islands resident for tax purposes you don't actually have to be there hardly at all.

Not how it works for the wealthy, you can't "live here" or else you'd be considered a Canadian resident for tax purposes. But you could have 3 places in, say, Cayman, USA, and Canada, making sure to meet the rules so as not to be considered to be living in the latter two, plus spend time on the seas or other travel, and be considered to be resident in Cayman for tax purposes.

AllanB said
Why the heck do people support entitled billionaires and the ones into the hundreds of millions especially after so many benefited from corporate welfare and stimulus this past couple years it was so
egregious in your face. Tax them first and shut down offshore, put sanctions on Switzerland. Redirect the navy to offshore tax havens maybe that'll get their attention. Billionaires who built their wealth in Canada shouldn't be allowed to escape. Stop buying their "one of us" kool-aid. Stop their looting of government coffers can you not see the scandals. Wake-up, tax them not us!  

you just dont like the rich cuz they r rich ? Hows that different from showing a prejudice for skin color, gender, and....
Most of the rich gets rich NOT from stealing from the poor. They get to where they are cuz its capitalism and they grab the right opportunity, willing to take risk, among other things....