Ottawa looking at a wealth tax

[jazz]

https://financialpost.com/opinion/jay-goldberg-ottawa-looking-at-a-wealth-tax-to-pay-for-soaring-spending

a one-time three per cent tax on people with more than $10 million in assets, coupled with a one-time five per cent tax on people with more than $20 million in assets, would rake in $60 billion.

[jazz]

Some of the even smaller farmers would probably have a net worth of $10M with the land price increases, equipment, buildings, inventory, stocks, insurance etc all re-assessed now after the inflation by our govts.

[Oliver88]

3% of 10,000,000 = $300,000
5% of 20,000,000 = $1,000,000

The “free stuff” for Trudeau voters doesn’t pay for itself.

[furrowtickler]

They should tax off shore trust funds 50% …..

[furrowtickler]

Or how about a wealth tax on the pharmaceutical companies that just made billions off of Covid ?
Nah that won’t happen

[foragefarmer]

They should tax off shore trust funds 50% …..

You mean to say you haven't set one up?

We all knew this was coming, and the next one coming up wants to use Bitcoin.

Holy shit!

[jazz]

This appears to be a tax on individuals, not corporations. They would not after the rich Laurentian elite.

Imagine the dairy and milk cartel might have something to say about it. Maybe some of those multiple home owners in Toronto and Vancouver. But in reality this is mostly a tax on large private land bases.

I said before, it might be high time to transfer some land into a company just for pure protection.

Dont have to offshore anything, use the tools we have.

This is a budgetary item so it will need a budget resolution so 2023. Unless we can run Singh out of the country first.

[helmsdale]

I said before, it might be high time to transfer some land into a company just for pure protection.

Likely too late. Could be wrong here, but fairly certain you'd have to transact at fair market value to the company, and either cash or a balance owing to the shareholder would still leave you vulnerable.

All one could do is try to "muddy the water" and make it more challenging for an audit to make sense of all the stacks of legal documents and bank statements.

And there's the rub to implementing this whole thing... wealth taxes always look appealing as a source of untapped government revenue, but the implementation is anything but easy. CRA doesnt have enough personnel to forensically audit every single individual at tax time, let alone come to fair representations of "net wealth".

Do they assess on appraised value? Assessed value? Market value?

Do you allow people to "self report", and then audit only a small fraction? Arguably those with the greatest wealth would be the largest targets, but those same individuals would have the largest incentive to tie any "assessment" up in years of legal proceedings... and lord knows they'd have the financial capability to hire the best bay street lawyers.

Do they treat liquid and illiquid assets the same? Do a pile of 2nd and 3rd houses get dumped on the market to create the liquidity necessary to pay the assessment?

Does it simply lead to mass capital flight?

[jazz]

Does it simply lead to mass capital flight?

Very few businesses are like farming with heavy wealth non incorporated.

What other sector is as vulnerable. Smallish city businesses but I doubt they would qualify. Anybody with a sizable business has LTD. on their name by now. Doctors and Lawyers all incorporated too, but I know farmers with easy 10s of million held personally including equipment, all their main yard and inventory and investments.

[furrowtickler]

And the NDP will give its blessings to the Trudeau circus to go right after farms … just a guess

[Rareearth]

With farming it’s not the asset value (bigger does sound better though) it’s about the cash flow and risk.

[Partners]

Divide the farm into as many family members as possible.

[jazz]

Divide the farm into as many family members as possible.

Thats not really a solution. Kids get married, risk of settlement in a separation etc.

Might duck Trudeau for a few yrs and then transfer it back.

I a trying to think who might have 10M+ in assets in this country. Canada only has a handful of billionaires and millionaires and 1 percenters. I am sure they have everything liquid in Panama. Hard to move land and fixed assets offshore.

But there are families that have land held for 100 yrs, generational wealth, passed down.

This is basically a stealth inheritance tax.

[Partners]

Thats not really a solution. Kids get married, risk of settlement in a separation etc.

Might duck Trudeau for a few yrs and then transfer it back.

I a trying to think who might have 10M+ in assets in this country. Canada only has a handful of billionaires and millionaires and 1 percenters. I am sure they have everything liquid in Panama. Hard to move land and fixed assets offshore.

But there are families that have land held for 100 yrs, generational wealth, passed down.

This is basically a stealth inheritance tax.

Kids only names, not spouses..pre nupual agreement..
Daughter works at law office..got it covered..

[sumdumguy]

I guess JT will get taxed too since his net worth has escalated substantially.