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To: Lynn who wrote (55408)	12/21/1999 11:03:00 AM
From: TigerPaw	Read Replies (1) \| Respond to of 152472

no incentives for a person to be a long-term, buy and hold Even at the same tax rate, a long term strategy has the advantage that you don't pay any taxes until you sell. TP

To: Lynn who wrote (55408)	12/21/1999 11:11:00 AM
From: Jean M. Gauthier	Read Replies (1) \| Respond to of 152472

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

To: Lynn who wrote (55408)	12/21/1999 11:40:00 AM
From: Kayaker	Respond to of 152472

OT My eyes popped when I read this one. There seems to be absolutely no incentives for a person to be a long-term, buy and hold type in Canada. Actually, there is. If you do frequent trading you run the risk of losing your capital gains status and must pay as if the gains were income, resulting in a tax rate of a bit over 50%. Below are some of the factors they consider in their determination. They make it clear that these are some of the factors that apply, and that all need not be present. Bottom line, if you sit in front of the computer all day and do frequent options trading, you're toast. I will be sweating if I'm ever audited. (a) frequency of transactions - a history of extensive buying and selling of securities or of a quick turnover of properties, (b) period of ownership - securities are usually owned only for a short period of time, (c) knowledge of securities markets - the taxpayer has some knowledge of or experience in the securities markets, (d) security transactions form a part of a taxpayer's ordinary business, (e) time spent - a substantial part of the taxpayer's time is spent studying the securities markets and investigating potential purchases, (f) financing - security purchases are financed primarily on margin or by some other form of debt, (g) advertising - the taxpayer has advertised or otherwise made it known that he is willing to purchase securities, and (h) in the case of shares, their nature - normally speculative in nature or of a non-dividend type. ccra-adrc.gc.ca