Àre the new tax breaks a subsidy to business.?

[bucket]

Seems if you buy into morneau's statement that it's sunshine and lollipops in Canada then why new tax measures for businesses..

Sort of know the answer but looking for comments.

And why does agriculture get left out...when it creates 1 in 8 jobs in Canada?

[the big wheel]

Seems if you buy into morneau's statement that it's sunshine and lollipops in Canada then why new tax measures for businesses..

Sort of know the answer but looking for comments.

And why do agriculture get left out...when it crates 1 in 8 jobs in Canada?

Because land has appreciated in value and many farms can still lose money due to all the extra costs downloaded to the primary producer yet keep farming by getting bigger loans and mortgages or be sold off to foreigners where they are happy to own our land because other. Countries will not let them as a matter of national security in some cases.
There still are assets to bleed out in agriculture. But slowly and surely it is aggregating into larger and larger farms where someday a small amount will own it all and at that point it will be Dow or Monsanto or whoever or the Chinese government.
Only if we start standing up over seed issues and the cost to us, transportation, rail lines fuel costs etc will we even begin to counter that movement.

[farmaholic]

Primary Ag production is a captive business. I can't pull up stakes and move my physical farm, but I can move and set up shop somewhere else. Someone always seems to want to farm the dirt even if you don't want to.

Enjoy the crumbs that fall off the banquet table!

[bucket]

If its a subsidy during real growth...spew here....it seems we are in for a world of hurt eventually.

Pulse crops are experiencing a world of hurt to revenues which impact a lot more than just my farm....why not send some life into that sector to put a bounce into the affected industries from the farm...

Maybe Bourgault is going to cancel the layoff notices with this announcement? But how???... when the primary producer is cutting costs to survive higher interests costs, insane fuel costs, a carbon tax on its way and seed royalties????

Subsidies to the corporations isn't the way to make things better....the people that buy things have to be better off...I don't need a new truck so the incentives don't work for me....at any cost...

having the ability to pay for newer machinery in trade hiccups that skew my revenue is a way to help create jobs and by extension the corporations bottom lines....not a ****ing subsidy ..

Or did Morneau announced grain bins are now 100 percent deductible with no recapture...

[Oliver88]

$600 media bailout during an upcoming election year. 🙈
This should get Trudeau a few more glowing reviews and puff pieces from the media party.

[Taiga]

$600 media bailout during an upcoming election year. 🙈
This should get Trudeau a few more glowing reviews and puff pieces from the media party.

I didn’t see anything in the announcement that was a corporate subsidy. Just 100% capital cost deduction for manufacturing and production equipment in the first year, I believe was the term used. Maybe that applies to farm corps too? Don’t think many farms need huge write offs for tax benefits though at our current profit (or loss) levels.

But the $600M bribe to the media going into an election year? That’s just gross, pretty obvious what that is about.

[farmaholic]

I didn’t see anything in the announcement that was a corporate subsidy. Just 100% capital cost deduction for manufacturing and production equipment in the first year, I believe was the term used. Maybe that applies to farm corps too? Don’t think many farms need huge write offs for tax benefits though at our current profit (or loss) levels.

But the $600M bribe to the media going into an election year? That’s just gross, pretty obvious what that is about.

Most incorporated farms don't need 100% capital cost allowances in the first year of purchase. Buying "write-offs" seems to be passé. Even the heavy hitters probably run multiple corps to spread out the income if one Corp earns more net than the lowest tax bracket.

Incorporating is supposed to change management decisions from "saving taxes" to "making money"...and the two aren't always synonymous.

[bucket]

I didn’t see anything in the announcement that was a corporate subsidy. Just 100% capital cost deduction for manufacturing and production equipment in the first year, I believe was the term used. Maybe that applies to farm corps too? Don’t think many farms need huge write offs for tax benefits though at our current profit (or loss) levels.

But the $600M bribe to the media going into an election year? That’s just gross, pretty obvious what that is about.

Okay so I can buy all my equipment depreciate it out and not pay recapture if I sell out????

I think some guys are misguided in their thinking that this isn't a corporate handout.

[farmaholic]

Okay so I can buy all my equipment depreciate it out and not pay recapture if I sell out????

I think some guys are misguided in their thinking that this isn't a corporate handout.

Not having to claim recapture would be nice...

[sawfly1]

Are you guys sure about no recap.
I kinda doubt that Part.

What I got a kick out of was how they wanted exports up 150% by
20something.
How about moving the grain and oil we have now first

[bucket]

Are you guys sure about no recap.
I kinda doubt that Part.

What I got a kick out of was how they wanted exports up 150% by
20something.
How about moving the grain and oil we have now first

When they go to match trumps plan for business....it seems logical they should match his agriculture plan as well...like about a 3 billion trade distortion plan for pulses and durum....

If industrial companies are getting favourable CCA.....the why are farmers not getting it as well....

I doubt there is such a thing as recapture for large corporations ....they never really sell out...

[Marusko]

I chuckle whenever I read about subsidies to primary producers. Around here, they'd just get plowed into land, inflating the purchase prices and rent even further beyond what's reasonable. I know it sounds counter-intuitive to be against subsidies, but that's all it would really do. It's only good for the farmers who have stopped growing, or are retiring: they can pocket that money, and it increases their asset values. For the next generation, it's detrimental.