Trudeau’s proposed luxury tax…

[pelmet]

Where does all this money go? I can’t seem to find any of the improvements with all these taxes and spending.

https://www.fraserinstitute.org/studies ... ld-welfare

[goldeneagle]

“Luxury cars” over 100k. Hell a truck or a minivan with some options like power windows can exceed 100k. I guess a work truck is a luxury vehicle .

Just a couple of points for you

a) The tax doesn't apply to a work truck, you just have to show it's actually used for work.
b) Power windows are not an option on a new truck these days, they all have power windows.

Then again, I wouldn't expect you to come armed with facts, it's much harder to get folks riled up with facts than it is with the blathering bs you make up on the fly and peddle to folks gullible enough to swallow it.

As for your 100K truck, it's actually quite easy to drive off the lot with a brand new work truck for half of that number. Yes, it's possible to spend 100K, but, you have to add a lot more than just 'power windows'. that one will be loaded with every option in the inventory, all the chrome that they can fit on it, and likely has a lift kit with off road tires. But that's not a work truck anymore, that's a driveway status symbol for the 'mine is bigger than yours' crowd.

[altiplano]

Anyone towing gets hit here. A 3/4 ton pickup with mid level trim hits 100K pretty quick.

Besides 100K is the new 80K with 10% inflation and a devalued currency.

Screenshot_20220714-110322.png (203.04 KiB) Viewed 1773 times

[goingmissed]

Anyone towing gets hit here. A 3/4 ton pickup with mid level trim hits 100K pretty quick.

Besides 100K is the new 80K with 10% inflation and a devalued currency.

Get yourself an A6, don't pay the luxury tax, and drive around feeling like a Nigerian prince.

Let's be honest, most people who buy pickup trucks aren't using their pickup truck for it's towing capabilities.

[altiplano]

Maybe 1/2 ton owners who can't carry much more than occupants and gear within the GVWR.

If you are getting a 3/4+ ton you're probably getting it to tow and you're pretty quickly over 100K for a mid line offering.

[WellThatAgedWell]

Let’s not lose track of what we are talking about here, as we don’t care what people are doing with their trucks. Why is a luxury tax being implemented at all? Why would someone buying a 500k boat, car or plane be subject to an additional tax on top of the exorbitant amount of tax they will already pay to own and operate the equipment.

This is simply wealth redistribution. Socialism. I don’t trust our corrupt government to redistribute wealth to begin with.

[‘Bob’]

Yet I bet dollars to donuts you are a net benefactor of that redistribution.

Wealth redistribution is what used to make North America great. No aristocracy or landed gentry. Everyone has an equal opportunity to get ahead.

There was no working harder or working smarter in medieval Europe. The land upon which you paid rents and toiled was not for sale at any price.

In North America and then elsewhere, estate taxes took care of that and country houses became expensive anachronisms of another time when the elite could do nothing and draw a comfortable income by virtue of just being born.

But we are coming back to that with offshore accounts, money laundering, and tax loopholes like the Smith Maneuver. People have already been priced out of land ownership forever. Corporations are posting record profits under the guise of inflation (obviously their costs haven’t increased as much).

So I welcome any tax for higher income earners and the wealthy. You have to look out for your own. The only people who think trickle down economics works are complete delusional.

And if you want the luxury of a big $100K truck, you’ll have to pay for it, and you’ll have to pay the extra carbon tax to run it. If that’s the difference between you getting it and not getting it… sorry to say you couldn’t afford it in the first place because you aren’t part of that club.

[rookiepilot]

I'm rich and I drive a minivan. My second, and the only 2 vehicles I've ever bought new.

Those 2 facts aren't uncorrelated.

But that's too boring an image for most of you.

Be poor, but look cool doing it.

[goingmissed]

Why is a luxury tax being implemented at all?

I'm pretty sure we all agree on the reasoning behind the tax: the current government has increased the debt to GDP ratio by 50% in a single year and now need to bankroll their vote purchasing.

[WellThatAgedWell]

Yet I bet dollars to donuts you are a net benefactor of that redistribution.

Maybe.

Of course there would be a tipping point where the benefit of this type of tax policy does more damage than good. And the main reason trickle down economics doesn’t work is because the free market is not a free market, and government has to much red tape on everything. Look at Covid policy, who were the beneficiaries of this, the middle/lower middle class? Hell no. Are the lower middle class the biggest beneficiaries of this inflation about to happen? All these are induced by government policies. Wealth redistribution is a bandaid to cover up shit government policies that do more damage than good to the majority of Canadians. Wealth redistribution is like buying votes with candy for the children you abuse. Maybe just stop the abuse and you don’t need to hand out candy.

[trey kule]

When it comes to the whole aviation industry there is a very concerted federal government effort to phase it out or downsize it greatly.

A luxury tax is just part of it. Security at airports, draconian Covid restrictions for air travellers based on political science , not medical science.

The great reset build back better agenda is predicated on eliminating the use of fossil fuels
Aircraft are huge users of fossil fuel.
And electric aircraft are a long way off in the future.

Look at what they are doing, not why they say they are doing it.

No one if our present government has mentioned the plan to tax electric vehicles, but that will come.

Only the Canadian oligarchs , and of course, the taxpayer funded PM and cabinet ministers
will be travelling by air soon.

And yes, tax tax tax, to try and hold off the inevitable government default.

Marxism isn’t coming to Canada. It is here and the country is being run by a gang in the PMO.

[Squaretail]

I'm rich and I drive a minivan. My second, and the only 2 vehicles I've ever bought new.

But you're not that rich. If having saved tens of thousands of dollars you feel put you ahead, you're still in a similar wealth bracket to the rest of us plebs. Sorry if that hurts. One of the problems in the world there's a lot of people who vote like they are "rich" or are going to be "rich" and thus vote against their self interest. For all the decrying of Canada being "Marxist" it has no estate tax. I mean, even the Americans have one (albeit easily dodged).

I don't see this hurting the current Canadian market for used little airplanes, and if you can afford a new Cirrus, well you can pay a little extra.

[photofly]

My dad figured his family was rich because he always had shoes to wear to school. Some in his school didn't. I figure I'm rich because I don't have to worry about having food to eat or somewhere to sleep.

YMMV.

[goingmissed]

I'm rich and I drive a minivan. My second, and the only 2 vehicles I've ever bought new.

But you're not that rich. If having saved tens of thousands of dollars you feel put you ahead, you're still in a similar wealth bracket to the rest of us plebs. Sorry if that hurts. One of the problems in the world there's a lot of people who vote like they are "rich" or are going to be "rich" and thus vote against their self interest. For all the decrying of Canada being "Marxist" it has no estate tax. I mean, even the Americans have one (albeit easily dodged).

I don't see this hurting the current Canadian market for used little airplanes, and if you can afford a new Cirrus, well you can pay a little extra.

The rest of us plebs? There are many of us plebs who are working two jobs and living paycheck to paycheck to paycheck every month.

I would love to be able to make enough money to support my family and pay off debts incurred from living for 15 years under this self centered government.

[Squaretail]

My dad figured his family was rich because he always had shoes to wear to school. Some in his school didn't. I figure I'm rich because I don't have to worry about having food to eat or somewhere to sleep.

YMMV.

Then it just reinforces my point. "Rich" isn't a definitive so when one says tax the rich, it probably doesn't mean you. Or me. Or I doubt anyone who posts on this forum. After all what I keep being told about people who are really, really rich is that they work so hard they can't possibly be wasting time here.

I mean most of us here are probably being over-taxed. Most of the working poor and middle class are. I don't argue that, but when folks toss around the terms Marxist, Socialist or Communist to describe our government, it usually just shows that they don't know anything about any of those terms.

While I think a luxury tax is probably an effort in the right direction, we don't want the "rich" to not spend their money, it would be wiser for the government tax wealth that is accumulating to encourage it to be spent.

[alkaseltzer]

My dad figured his family was rich because he always had shoes to wear to school. Some in his school didn't. I figure I'm rich because I don't have to worry about having food to eat or somewhere to sleep.

YMMV.

He went to the same high school as Kamala Harris. Speaks volumes on the hypocrisy.

[photofly]

Who did? My Dad?

[rookiepilot]

I'm rich and I drive a minivan. My second, and the only 2 vehicles I've ever bought new.

But you're not that rich. If having saved tens of thousands of dollars you feel put you ahead, you're still in a similar wealth bracket to the rest of us plebs. Sorry if that hurts. One of the problems in the world there's a lot of people who vote like they are "rich" or are going to be "rich" and thus vote against their self interest. For all the decrying of Canada being "Marxist" it has no estate tax. I mean, even the Americans have one (albeit easily dodged).

I don't see this hurting the current Canadian market for used little airplanes, and if you can afford a new Cirrus, well you can pay a little extra.

My point — occasionally I do try to contribute something positive here — is to be determined to live well below ones's means, and avoid non mortgage debt like the plague.

I know today that is brutally hard. Find a way. I had many lean years of living really, really crappy. Been there.

Do this long enough, while consistently working to raise your earnings power, and in time one can be, if not rich….free.

Its possible.

[photofly]

Technical question: why is mortgage debt distinguishable?

[rookiepilot]

Technical question: why is mortgage debt distinguishable?

Because its applied to an asset with a long history of appreciation— and you can live in it.

Still, should be carefully considered as to amount, serviceability in case of higher interest rates, and should be aggressively paid down.

[digits_]

Technical question: why is mortgage debt distinguishable?

Because its applied to an asset with a long history of appreciation— and you can live in it.

Still, should be carefully considered as to amount, serviceability in case of higher interest rates, and should be aggressively paid down.

Isn't that more linked to what you spend the money on though?

Just because you remortgage your house doesn't make that 70k brand new truck a smarter purchase than it would be getting a loan for a vehicle. Probably some better terms, but not really much smarter.

[Squaretail]

I know today that is brutally hard. Find a way. I had many lean years of living really, really crappy. Been there.

The thing is that its getting harder. Exponentially so. I don't envy the next generations. The world has gotten more expensive to be competitive. After all, there's only so "crappy" one can live before it starts to impact your ability to raise your earning power. Once you get into that state, its really tough to get out of. Sort of like the back side of the power curve.

Do this long enough, while consistently working to raise your earnings power, and in time one can be, if not rich….free.

The problem these days is the raising your earning power part of the equation, and there's a limit to living below your means. So that advice is getting diminishing returns as time goes on.

[rookiepilot]

I know today that is brutally hard. Find a way. I had many lean years of living really, really crappy. Been there.

The thing is that its getting harder. Exponentially so. I don't envy the next generations. The world has gotten more expensive to be competitive. After all, there's only so "crappy" one can live before it starts to impact your ability to raise your earning power. Once you get into that state, its really tough to get out of. Sort of like the back side of the power curve.

Do this long enough, while consistently working to raise your earnings power, and in time one can be, if not rich….free.

The problem these days is the raising your earning power part of the equation, and there's a limit to living below your means. So that advice is getting diminishing returns as time goes on.

I don’t disagree with your sentiments.

[Bingo Fuel]

Does that mean we support Universal Basic Income now?