Federal Budget 2021

[zechs]

I know of at least two business owners (that I am personally acquainted with) that are quite wealthy Albertan's that moved to Florida basically permanently.

And I'm just some guy who is into cars. There are a lot of well connected people on Beyond. How many 7 figure net worth individuals packing their bags and leaving (or at least, taking their money out of the Canadian economy) does it take before it becomes a crisis?

We saw what happened when big multinationals fled after 2014.

[KLCC]

So what kind of impact will this luxury tax have on the pre-owned items?

[ThePenIsMightier]

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E-series visas can be had for as little as $100,000 invested in qualifying USA businesses....

It's 100,000 dinairs OK?
Sweet sauce, or tzatziki?

[JohnnyHockey13]

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I know of at least two business owners (that I am personally acquainted with) that are quite wealthy Albertan's that moved to Florida basically permanently.

And I'm just some guy who is into cars. There are a lot of well connected people on Beyond. How many 7 figure net worth individuals packing their bags and leaving (or at least, taking their money out of the Canadian economy) does it take before it becomes a crisis?

We saw what happened when big multinationals fled after 2014.

Alberta or BC? If you're talking about BC, then the answer is they just keep on coming lol....wait until after COVID, there will be a flood of Hong Kongers as well that will be coming on top of the usual Chinese......that's not even counting the other rich foreigners coming in from the East.

[killramos]

Lol Liberals are patting themselves on the back for the deficits being lower than projected this year.

But spending over the next 5 years still higher than projections from the fall.

Idiots.

[zechs]

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Alberta or BC? If you're talking about BC, then the answer is they just keep on coming lol....wait until after COVID, there will be a flood of Hong Kongers as well that will be coming on top of the usual Chinese......that's not even counting the other rich foreigners coming in from the East.

Just Alberta.

Will we see a spillover? When you have essentially unlimited wealth like a lot of these Chinese nationals and Hong Kong folks, why would you bother with Alberta?

BC will be fine, due to their location/weather. Can't say the same for Alberta, we'll be back to the 1970's and 1980's, poor farmers.

Well, unless you own a lot of farmland. There will be a few wealthy folks still.

[Xtrema]

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Just Alberta.

Will we see a spillover? When you have essentially unlimited wealth like a lot of these Chinese nationals and Hong Kong folks, why would you bother with Alberta?

BC will be fine, due to their location/weather. Can't say the same for Alberta, we'll be back to the 1970's and 1980's, poor farmers.

Well, unless you own a lot of farmland. There will be a few wealthy folks still.

Whenever there is capital flight, there are always different classes. Calgary will attract more middle income type due to relatively cheap housing.

Heck, there are Chinese buying Thai real estate just to get $ out of the country, $10K/transaction, $50K/year.

[94boosted]

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Nah bro, I need to costal vibe, I'm going to work on my surfing and open a taco shop.

My wife and I have been talking about a Surf + Coffee Shop in Nicaragua for quite some time.

[M.alex]

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So what kind of impact will this luxury tax have on the pre-owned items?

Did it specify if the 20% luxury tax is for new cars only or new and used?

[Buster]

the luxury tax is 20%...lol. wow.

[JRSC00LUDE]

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the luxury tax is 20%...lol. wow.

You should be thanking Dear Leader for his benevolence and mercy, he could have charged 30.

I wonder if you will be able to buy a car for say 90G and then just buy the "wheels and tires" for another 60G after in a separate sale.

[Xtrema]

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the luxury tax is 20%...lol. wow.

Cars over $100K. WTF. If you think the market for exotic is hot now.....

20 per cent of the value above threshold ($100,000 for cars and personal aircraft; $250,000 for boats) ; or 10 per cent of the full value of the luxury car, boat or personal aircraft.

[killramos]

I love how the luxury tax for boats is over 250k. But cars is 100

Morally ( and clearly fiscally ) bankrupt loons

[you&me]

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Did it specify if the 20% luxury tax is for new cars only or new and used?

New cars only.

It's the lesser of 10% on the total purchase price or 20% of the value in excess of $100,000.

[rage2]

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New cars only.

It's the lesser of 10% on the total purchase price or 20% of the value in excess of $100,000.

Yea, 20% of the total above 100k, up to 200k before the 10% of total cost calculation kicks in.

$125k car = $5k tax (20% of $25k)
$150k car = $10k tax (20% of 50k)
$200k car = $20k tax (10% of total price from here on)
$250k car = $25k tax (10% of total price)

[Xtrema]

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Yea, 20% of the total above 100k, up to 200k before the 10% of total cost calculation kicks in.

$125k car = $5k tax (20% of $25k)
$150k car = $10k tax (20% of 50k)
$200k car = $20k tax (10% of total price from here on)
$250k car = $25k tax (10% of total price)

Now would GST/PST be charged on top of this tax?

$250+$25K = $275K

$275K * 1.25 = $344K OTD in BC.

[2002civic]

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Yea, 20% of the total above 100k, up to 200k before the 10% of total cost calculation kicks in.

$125k car = $5k tax (20% of $25k)
$150k car = $10k tax (20% of 50k)
$200k car = $20k tax (10% of total price from here on)
$250k car = $25k tax (10% of total price)

Haven't read much about it yet, but in Australia you could get away from the tax by leasing, anyone know if that applies here as well?

[JRSC00LUDE]

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New cars only.

It's the lesser of 10% on the total purchase price or 20% of the value in excess of $100,000.

It'll trickle down to used car pricing though I would imagine.

[Xtrema]

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Haven't read much about it yet, but in Australia you could get away from the tax by leasing, anyone know if that applies here as well?

No details yet, but the leasing game doesn't save you from BC's 20% PST luxury car tax as far as I've heard.

IMO luxury taxes sounds good to the masses, it's shooting your own foot in reality.

“It’s a little bit of a vicious circle. I submitted substantially less PST in 2018 than I did in 2017. So, forget about my sales, I sent them less sales tax.”

https://canada.autonews.com/retail/b...-taxmans-pinch

[gpomp]

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Haven't read much about it yet, but in Australia you could get away from the tax by leasing, anyone know if that applies here as well?

Upon purchase or lease of the car, boat or plane, the seller or lessor will be responsible for remitting the full amount of the federal tax owing, regardless of whether the good was purchased outright, financed, or leased over a period of time.