RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Hacking the EV system - another problem nobody thought ofTommy123 wrote: Oh and the new capital gains tax on homes owned for under X years (x is one year for now).
Tommy - sadly it is people with your mindset that are running Canada, the US and other countries who have no clue about how the real world operates.
So let's take a few of your latest posts including one that spawned my post.
1....if the Government were to tax homes sold with less than a year of ownership a couple of things would happen. First some of the big money would simply hold their ownership for a year plus a day and avoid the tax. Many others would simply take their investment money and invest it somewhere else in the world which would result in housing prices going down which yes would be a good thing for new home buyers but it would also be a big negative for the millions of existing home owners counting on their homes as equity to fund their retirements - a very bad result!!!
2...in an earlier post you talked about raising government revenues from raising the inclusion rate in capital gains to 75%. Most people in Canada up to the upper middle class would simply change their investment allocations to putting their riskier stock investments into their RRSPs and TFSAs and avoid the tax which in the case of RRSP is not the best way to secure retirement income. Higher networth people including yours truly would simply move their investments and domiciles for tax purposes to more favourable tax jurisdictions outside Canada resulting in less tax revenue for the Government.
The bottom line is that suggestions such as those you advocate assume that people won't change their behaviours and adapt to different tax rules. This is simply not the way things work in the real world!!!
The best way to increase tax revenues for Government is to change the rules to incent people to invest in creating more wealth for everyone not to change the rules to do the opposite.