2023 Federal Budget discussion

[Manhattan]

You win. Dividends are completely tax free no strings attached

[littledan]

Its nice to see Aaron Wherry explaining to me how all the liberal f' ups are just actually good things. including this budget. Thanks Aaron.

[suntan]

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You win. Dividends are completely tax free no strings attached

Don't trust me, just take a look at this:

https://www.eytaxcalculators.com/en/...alculator.html

You don't even have to type anything in. Look at the tax rate for eligible dividends. See how that number is way lower than the average tax rate?

Gee it's almost like if you took the corporate tax rate and combined it with the personal dividend tax rate it's really close to the average tax rate.

I can't believe I have to explain this to you.

[littledan]

This thread is reminding me that im 7 months ahead on being 6 months behind to file my tax return

[Manhattan]

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Don't trust me, just take a look at this:

https://www.eytaxcalculators.com/en/...alculator.html

You don't even have to type anything in. Look at the tax rate for eligible dividends. See how that number is way lower than the average tax rate?

Gee it's almost like if you took the corporate tax rate and combined it with the personal dividend tax rate it's really close to the average tax rate.

I can't believe I have to explain this to you.

Corporate + personal div tax rate is your marginal rate. The higher you go in the tax bracket the higher your div tax rate is. All gets taxed as income essentially the basis of which is debatable.

And I would consider GST as a double tax. You were taxed twice on the earnings and consumption side. Aside from this...what's with the attitude?

[davidI]

The article is behind a paywall but I do like the use of "Excoriates". Too bad Liberal voters wouldn't even know what "a Bloomberg" is...

https://www.bloomberg.com/news/artic...oost#xj4y7vzkg

Scotiabank Economist Excoriates Trudeau, Freeland Over $32 Billion Spending Boost

• Economist warns government is ‘addicted to high spending’
• Budget may restrict future administrations, ex-minister says

Prime Minister Justin Trudeau’s plan to add billions of dollars in new annual spending has some economists worried that Canada is at risk of racking up unsustainable debt — especially if economic growth comes in worse than expected.

Finance Minister Chrystia Freeland’s latest budget added C$43 billion ($32 billion) in net new costs over six years, primarily by increasing health-care outlays and clean-technology subsidies to compete with the US Inflation Reduction Act. She’s wrong to describe the budget as prudent, with overall program spending set to balloon to 51% above pre-pandemic levels by 2028, according to Derek Holt, an economist at Bank of Nova Scotia.

“Big spending, big deficits, big debt, high taxes, high inflation and bond market challenges are not the path to prosperity,” Holt said in a report to investors Wednesday that described the country’s federal and provincial governments as “addicted to high spending.”
Deficits Deepen in Canada

Freeland's budget no longer shows a return to balance

The spending growth comes even as the government projects C$34 billion less in revenue over that six-year span, compared with projections it released in November. Higher interest rates are expected to drag on economic growth.

“Canada has departed from its post-1990s and pre-pandemic voter caution toward big spending promises and has entered a new era driven by massive spenders at federal and provincial levels of government,” Holt said. “The risk is toward even bigger deficits if GDP performs worse than expected versus the budget’s use of stale forecasts from February — before recent turmoil — and that project no contraction.”

Additionally, the green subsidies announced in Freeland’s budget get richer over time. While the budget put their net cost at around C$20 billion over the next five years, the finance department projects the cost of the various green tax credits will top C$80 billion by 2034.

When asked about Holt’s report, both Trudeau and Freeland defended their spending as necessary and argued Canada is in a better fiscal position than its Group of Seven peers.
Freeland also said the green incentives will help growth in the long run, and cited an assessment of the budget by former Bank of Canada Governor Stephen Poloz. “If you are making investments that increase the economic capacity of the country, that is fiscally responsible,” she told reporters in Ottawa.

The budget’s fiscal projections carry a lot of downside risk, said John Manley, who was finance minister in 2002 and 2003 under former Liberal Prime Minister Jean Chretien.
If deficits do get worse, future governments may face difficult decisions about slashing programs, he said. In the 1990s, Chretien’s government had to take drastic action to get Canada’s debt under control, and Manley said his own budget as industry minister suffered deep cuts.

“If Liberals don’t want to face that kind of calamity, then it’s way better to manage the growth of your expenditures and manage your revenue carefully,” Manley said on BNN Bloomberg Television. “Because otherwise, there’s a reckoning coming, and somebody’s going to have to face it.”

[spike98]

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Corporate + personal div tax rate is your marginal rate. The higher you go in the tax bracket the higher your div tax rate is. All gets taxed as income essentially the basis of which is debatable.

And I would consider GST as a double tax. You were taxed twice on the earnings and consumption side. Aside from this...what's with the attitude?

If you purchase fuel, alcohol or tobacco isn't that also further taxed? So triple taxed? What happens if you make your purchases driving a vehicle thats over $100k? Another triple tax.

Sometimes i feel like this country doesn't want me here yet depends on me to pay for all of these social services that folks from toronto get.

[ThePenIsMightier]

"Excoriates" - a word that 70% of Conservative voters and 111% of Liberal voters have no fucking idea what it means.

[ExtraSlow]

I feel like I'm pretty literate, but that one is above my pay grade.

[davidI]

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I feel like I'm pretty literate, but that one is above my pay grade.

I first read it as "executes Trudeau, Freeland" but then I realized I had to reach for a dictionary rather than champagne.

[mr2mike]

All those 1M new immigrants will float us with the taxes they pay in their middle class careers while utilizing less of the government programs that taxpayers pay for.

[davidI]

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All those 1M new immigrants will float us with the taxes they pay in their middle class careers while utilizing less of the government programs that taxpayers pay for.

They can live in tents to reduce the average cost of housing.

[ThePenIsMightier]

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I feel like I'm pretty literate, but that one is above my pay grade.

Me too. I couldn't even guess whether it was positive or negative, so that kept me from clicking the story yesterday when I saw it because I didn't want to see more picture of Hair Justin being blown by Socialists Journalists.

[BerserkerCatSplat]

Excoriate is "SLAMS" for journos who want to look extra-fancy.

[suntan]

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Corporate + personal div tax rate is your marginal rate. The higher you go in the tax bracket the higher your div tax rate is. All gets taxed as income essentially the basis of which is debatable.

And I would consider GST as a double tax. You were taxed twice on the earnings and consumption side. Aside from this...what's with the attitude?

Dividends are not employment income. Holy shit. Do you not realize this? Have you never received a T5?

Wait till you find out that businesses only pay the difference between what they bought and what they spent on GST.

[riander5]

You guys out here arguing about divvies when sugar momma freeland is gonna make it rain on all of us with incentives.

[Manhattan]

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Dividends are not employment income. Holy shit. Do you not realize this? Have you never received a T5?

Wait till you find out that businesses only pay the difference between what they bought and what they spent on GST.

Getting a lot of napoleon dynamite vibes

[Buster]

If you havent made actual, realistic plans to get you and your family/assets out of Canada you are just being irresponsible at this point.

[masoncgy]

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If you havent made actual, realistic plans to get you and your family/assets out of Canada you are just being irresponsible at this point.

Where's the best place to go these days anyway? Seems like insanity is everywhere now.

[mr2mike]

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Dividends are not employment income. Holy shit. Do you not realize this? Have you never received a T5?

Wait till you find out that businesses only pay the difference between what they bought and what they spent on GST.

When does the T1000 show up? Asking for Sara Connor.