Cap gains rate in Canada --
Depends on province, but 3/4 of gains are treated as income. Most provinces tax rates are about 50%, thus, one gives up 37% of cap gains to taxes.
Interesting observation: With average stock loss through market corrections running about 26% and taxes running about 37%, one is better off facing a bear market than the tax man. Even if you time your trades PERFECTLY, you'll still be 11% worse off.
Another observation: Originally, Canada had NO cap gains tax, then 50%, later 66%, and is now 75% inclusion rate. Also we had a deductible of 500,000, later becoming 100,000, and now zero. Notice a trend here?
Fortunately, Canadians pay taxes with Canadian dollars so it isn't as bad as it seems. PW.
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