Hi Lynn,
I feel better you sympathise. This socialist la-la land is driving me completely crazy....
I will move to the US in the future...
There are NO smart politicians in canada, all they want to do is spend, tax, and spend....
Already, with our budget surplus (raised through massive tax hikes, which are still increasing EVER year, as they DE-Indexed exemptions so people are paying more taxes through inflation.... but that is another story), they are planning to spend 50% of the surplus through NEW initiatives ( this is AFTER the obligatory 3% across the board hike in spening ) and plan on giving 25% of the surplus to the poor and lower middle-class (no tax breaks for the "rich") and 25% on debt repayment...
I am sick of them and their taxes and spending...
It is VERY difficult to accumulate ANY holdings in Canada, unless you are in a tax-DEFERRED plan...
Other nice highlights...
1- Maximum Tax rate of 52% kicks in at $ 60,000 canadian, or about 40-45K US... Ouch !
2- No ST or LT capital gains treatment , EVER. Just 38.6% all the time, everytime.
3- Exercised Stock options trigger immediate capital gains taxes, so you will owe taxes on the new cost basis at the end of the year. No wonder Nortel is losng so many good people. So if the stock goes DOWN after the exercise date, you are out of luck and owe taxes on vanished/non-existent profits...
4- Municipal taxes are $ 4000/year on average properties.
5- Our CPP, which is like your Social security is going to go up by 70% in the next 2 years, to 9.9% of a person's salary. Ouch.
6- Only 20% of the deferred retirement accounts (called RRSP's) can be invested outside Canada. 80% MUST be invested in Canada.. THAT really hurt my returns in the past. Now through derivatives, we can skirt it, but most people are not aware, so they invest in a stock market thta has lagged the US for 30 YEARS..
7- Finally, mortgage interest on homes is NON-Tax deductible, and with the after tax dollars people pay, they must service their mortgages. Big Ouch ! No wonder canadians cannot afford big cars, and they buy used or smaller. They have no disposable income !
8- A sales tax on most everything of 15% (average) ! Take it all together, it's a wonder we can invest any money, and keep any of it....
That's it for now... Nice Huh ?
Take care
Jean |
