Capital Gains

[mbratrud]

Recent post from Garth Turner on CG under this new govt. Speculation has started on this being a big target.

https://www.greaterfool.ca/2019/10/27/the-big-bite/ The big bite

My answer to Nate: an unqualified maybe. T2’s been coy so far about how far into the sheets he’ll crawl with the Dippers. Obviously the Libs need money. The projected deficit numbers are horrendous, and if a recession materializes we’re pooched. Meanwhile Trudeau has shown – with his special tax bracket for high income-earners, his attack on stock options and his assault on business owners and professionals – that he’s no friend of the investor class.
Selling now and paying on 50% to avoid selling later at 75% is a strategy. It’s called ‘insurance.’
And yes, the tax change would be effective the night it was introduced. In 20 weeks.

The question is who ultimately will pay the tax? Of course the person selling the Farm, but what will happen to prices? Will an additional tax on a greater portion of capital gains postpone retirements and farm sales at least over the next few years in hopes of electing a new govt? creating more demand for land in the short term. For argument sake lets say it means a tax rate on 37.5% on CG vs something closer to 25% currently (loosely using 50% tax on 50% CG vs 50% tax on 75% CG) If i have a capital gain of $1500 per acre that's an extra $187.50/acre or $30000 in quarter in taxes. Will landowners hold out for more in the short term? On the flip side If sellers decide to hold out until a new govt is elected could that flood the market in a couple years. No matter your view nothing good comes out of the government tinkering with the tax system. I doubt they do it in this minority situation to be honest.

[bucket]

NDP want to tax the wealthy ....this is the tradeoff on climate issues. ...NDP will vote with liberals on capital gains changes...

[seldomseen]

Oh chucks in your ndp world all wealth is bad. Listen for one minute. If I live down south for 35 years in my home I don’t care if they get it. But also in the state of Florida all investment is non taxable if your American. Any Canadian shithole have that. Trudeau will need money and need it soon

In the NDP World all wealth is bad except their own wealth!