Comments by "Pac Man" (@pacman3556) on "CP24"
channel.
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1:35-- BS not a new tax or 66% tax. It is an INCLUSION RATE. To explain (high level) how it works:
Currently Person A earns $100K a year in income (wages, salary, sell of goods or services). 100% of that income is fully taxable. The tax rate is about 33% so Person A pays about $33K a year in taxes ($100K times by 33%)
Person B earns the same $100K a year however they earn it from Capital Gains (buy an asset at low price and sell it higher price). The INCLUSION RATE is 50% which means person B is allowed to deduct 50% of their income and only pay taxes on 50% of their income. At the same tax rate of 33% Person B only pays $16,500 (100K minus 50K or 50%= 50K times by 33%)
Person B pays half of what Person A pays even though they earn the same amount. How is that fair?
What the changes does is Person A remains the same- nothing changes because their income is not capital gains and they pay $33K a year in taxes
The change is to the INCLUSION RATE that Person B is allowed to deduct from their income. Person B can now only deduct 34% of their income (100 minus 66) instead of 50% so now they pay $21,780 (100K times 66% equals 66K that they claim as income times by 33% tax rate= $21,780)
Person B after the change to the inclusion rate STILL PAYS LESS then Person A. Which is still unfair but at least they are starting to pay more of their fair share.
High income earners like doctors, lawyers, skilled laborers, business owners etc etc ARE NOT EFFECTED BY THIS CHANGE because their income is through wages or salary or the sale of a good or service ALL OF WHICH ARE FULLY TAXABLE sources of income
Only extremely rich people are effected by this and it is time they start to pay their fair share.
Also NOTE- my example is on $100K to be more accurate this only applies to Capital Gains over $245K it doesn't even effect the first $100K
In order to earn more than $245K a year in Capital Gains you need to have around $3M invested with an average rate of return at 8%. The average Canadian does not have $3M a year invested each and every year and don't make 8% each and every year. Only very rich people have this type of money to invest. The rest of Canadians need their money to pay for food, rent, mortgage etc.
THIS WILL NOT EFFECT 95% of Canadians. IT IS TIME RICH PEOPLE PAY THEIR FAIR SHARE
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