Wealth tax increases risk of GICs | Page 2 | GIC discussions | Discussion forum

cgouimet said
Tax planning is good. Tax avoidance is not.

I do not like or support anyone who plays the avoidance game. Rich or not ...  

u said it well !

Legal tax planning, legal tax avoidance, what's the distinction? There isn't one, far as I can see.

And what about, for example, Canadian hockey players who live in USA and won't sign with Canadian teams for tax reasons, are they bad?

Incorrect. Internet says "tax avoidance is any legal method used by a taxpayer to minimize the amount of income tax owed. Individual taxpayers and corporations can use forms of tax avoidance to lower their tax bills. Tax credits, deductions, income exclusion, and loopholes are forms of tax avoidance."

Tax evasion is what's illegal.

Instead of making it up as I go along I'll stick with the distinction between what the law allows and what it doesn't.

cgouimet said

Excellent upgrade. My mistake. Thanks for that ...  

I was including the concept of "avoidance" in the concept of "planning" and thinking "evasion" when speaking "avoidance". Thanks again for the upgrade and clarification ...

AllanB said

What do you consider paying their fair share 35-50% of income? A small business owner earning 300k clear take home paying 5% tax on that income is that fair? Is 15% on stock option sales of $100million fair?

It seems the only people paying more than their fair share are T5 Gic holders they stress just as much as anyone.
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I have first hand experience on business and stock option taxation.

It is not 5% income tax on $300,000 of take home from a small business. It is also not only 15% on stock option profit of $100 million.

You clearly don't know what you are talking about and are repeatedly spreading false information.

AllanB said

What do you consider paying their fair share 35-50% of income? A small business owner earning 300k clear take home paying 5% tax on that income is that fair? Is 15% on stock option sales of $100million fair?

It seems the only people paying more than their fair share are T5 Gic holders they stress just as much as anyone.

Gic investors should get a tax break to encourage savings. Debt should be discouraged.  

At AllanB

I am sole proprietor of a number of successful businesses and I pay on average 53% tax each year. Now with my decades of work my after tax money is supposed to be taxed again with a wealth tax?

Read my previous post again. I clearly said the government should focus on individuals and corporations not paying their fair share but a lot of us are. I worked decades at 7 days a week paying 50 plus percent in taxes and now they want to take my childrens inheritance at another 3-5% just because I scrimped and saved?

So please do not put everyone in the same boat, an after tax wealth tax is insane, I saved up my wealth and as you can see I even pay taxes on my GIC's like everyone here.

Tax it again just because I manage to achieve a magical number in savings.... I think NOT.

No one is safe. Governments are always looking for creative ways to tax us.
With a huge deficit hanging over the country's head, it will only get worse.

The numbers always change and 20 million is a suggestion, it could go down to 10 or even 5. It's a slippery slope once started because the default starting amount, the amount of times it is charged, and the percentage will always change once started.

Imagine if you had 5 kids, saved 2 million for each of them to buy a house when they grow up (in my city 2 million is easily needed) and some government spendthrift now decides to take your after tax earnings. Starts small but because he gets away with it he keeps his hand in the pot.

This is the only reason for the affluent to leave Canada. I am saying it will tip the scales for those already thinking of leaving.

I totally get what you're saying, KamWest, but I'd say better start packing your bags as today's Canadians seem not to have noticed that countries where there are few wealthy folks is usually where you'll find poverty. It's just the way the wind's blowing in this part of the world, polls show overwhelming support for a wealth tax, savvy politicians are going with it, far as I can tell.

Alexandra, pension valuation is a pretty standard thing, already done for various (e.g. divorce) reasons. But I agree, appraisers/valuators might experience a boom.

Seeing the Bahamas mentioned reminded me of an ex-workmate. He was nearing retirement and decided to send his and hers life savings to the Bahamas. Great interest rates and no taxes. Money disappeared. His wife was an accountant. He went a little loopy after that.