Extreme upcoming 6% Liquor tax increase ( federal)

[Equity Market investor]

I'm sure upcoming adjustments within the industry have already been in place and one can't help to think that cost cutting measures will hit the table hard such as employee lay-offs. Whether you are employed in the industry, or a owner, employee, struggling to make ends meet. Horrible time for this to happen.

My regular drinking days are long long gone ( my body just can't take it anymore ) however, I don't mind the very rare occasional drink when called for, but, for those who are active in today's era. Very tough times indeed.

https://www.bnnbloomberg.ca/restaur...iggest-alcohol-tax-jump-in-40-years-1.1899872

 

[Mr. J]

 

[angry anderson]

Just drink beer that is over 9%.

 

[lukom]

They should put a fat tax in place on crappy food in my opinion and in addition to that offer tax incentives to those who go on a diet and lose weight. That'll fix problems in our Healthcare

 

[Crookedmember]

It's a 6% increase on the excise tax, which amounts to...let's see...

"On a litre of wine, the excise duty rate is increasing to $0.731 from $0.688, or a little over four cents, according to figures provided by the Canada Revenue Agency. For a 750 ml bottle of wine, the increase would be closer to three cents."

 

[Bridge]

It's a 6% increase on the excise tax, which amounts to...let's see...

"On a litre of wine, the excise duty rate is increasing to $0.731 from $0.688, or a little over four cents, according to figures provided by the Canada Revenue Agency. For a 750 ml bottle of wine, the increase would be closer to three cents."

Two questions. firstly, is the point of this tax to raise revenue, curb consumption or both? Secondly, this is a regressive tax and should the tax system not be more progressive?

 

[Equity Market investor]

I couldn't agree more with you on that. I've said similar ideas in regards to that. People who are fit, go to gyms etc should be rewarded in some retrospect.

They should put a fat tax in place on crappy food in my opinion and in addition to that offer tax incentives to those who go on a diet and lose weight. That'll fix problems in our Healthcare

 

[lukom]

I couldn't agree more with you on that. I've said similar ideas in regards to that. People who are fit, go to gyms etc should be rewarded in some retrospect.

Not necessarily being fit, but living a lifestyle that doesn't burden the health care system. I'd even go as far as implementing a hipster tax on high end neighborhoods, on things like pretentious beer, grass fed steak options at steak houses, vegan options, and high end rentals where people rent for more than what it would cost them to buy elsewhere.

 

[Motorman]

Canada is a very progressive and liberal country. Likewise, California is progressive and liberal as well. Most things cost more when liberal politicians are in control. Idaho is not liberal, or progressive and as such, most things are less expensive. I truly did not realize the costs difference between liberal and conservative until I moved to Idaho. Below is just a brief example.

I moved from Napa California to Idaho in 2019. In California I was paying about $1000 per year to register my 2019 Raptor, in Idaho, it is 220 for two years. Same insurance company (AAA) is literally half, for move coverage. I owned a 1600 sq ft house in Napa and now own a 3000 sq ft in Idaho. In California my PG&E bill averaged about 500+, in Idaho it is less than $200. In California I paid about $12k annually for property tax on a house they said was worth $900k, in Idaho I bought a house for 1.1 million and I paid $6200 for property tax. The Idaho house would cost at least 3 million in Napa. I paid 9.4% state income tax to California, in Idaho it is 6%. It is much safer and cleaner in Idaho, but it does get cold during the winter, however, I have never experienced power black outs or inhaled smoke from wildfires in Idaho. Gasoline costs about $1 less per gallon than California. Plus Idaho has a sales tax rebate and California does not. Speaking of sales tax, in Napa it is 9%, in Idaho it is 6%. That is $3000 on a $100k truck. Now for booze, Idaho has state run liquor stores and the store must sell liquor at MSRP. I normally drink bourbon and one of my go to’s is Blanton‘s. In California I would be lucky to find a bottle for $250, in Idaho I recently purchased 3 bottles for $69 each.

My takeaway is that progressive and liberal policies cost a lot more money because of one reason, the government is involved and I have yet to witness a government agency operate efficiently. Big government costs big money and politicians will spend every single tax dollar and then raise taxes. To sum it up, free stuff is not free.

 

[lukom]

Canada is a very progressive and liberal country. Likewise, California is progressive and liberal as well. Most things cost more when liberal politicians are in control. Idaho is not liberal, or progressive and as such, most things are less expensive. I truly did not realize the costs difference between liberal and conservative until I moved to Idaho. Below is just a brief example.

I moved from Napa California to Idaho in 2019. In California I was paying about $1000 per year to register my 2019 Raptor, in Idaho, it is 220 for two years. Same insurance company (AAA) is literally half, for move coverage. I owned a 1600 sq ft house in Napa and now own a 3000 sq ft in Idaho. In California my PG&E bill averaged about 500+, in Idaho it is less than $200. In California I paid about $12k annually for property tax on a house they said was worth $900k, in Idaho I bought a house for 1.1 million and I paid $6200 for property tax. The Idaho house would cost at least 3 million in Napa. I paid 9.4% state income tax to California, in Idaho it is 6%. It is much safer and cleaner in Idaho, but it does get cold during the winter, however, I have never experienced power black outs or inhaled smoke from wildfires in Idaho. Gasoline costs about $1 less per gallon than California. Plus Idaho has a sales tax rebate and California does not. Speaking of sales tax, in Napa it is 9%, in Idaho it is 6%. That is $3000 on a $100k truck. Now for booze, Idaho has state run liquor stores and the store must sell liquor at MSRP. I normally drink bourbon and one of my go to’s is Blanton‘s. In California I would be lucky to find a bottle for $250, in Idaho I recently purchased 3 bottles for $69 each.

My takeaway is that progressive and liberal policies cost a lot more money because of one reason, the government is involved and I have yet to witness a government agency operate efficiently. Big government costs big money and politicians will spend every single tax dollar and then raise taxes. To sum it up, free stuff is not free.

The US charges for health care, while simultaneously having some of the lowest standards in quality of life, food quality...etc
At least our taxes which we are paying go towards something in some form. I've had to go to the hospital both here and in the states. The difference between my experience here vs there was that I paid an outrageous amount out of pocket to get a couple of stitches. Thankfully I my visa had some type of travel insurance I found about later, which allowed for the charges to be waived. If you're paying taxes you should at least be able to see something out of it, like not paying for my stay in the hospital or rehab after amputation. In the US I would end up homeless by now, after having paid taxes.

 

[Motorman]

The US charges for health care, while simultaneously having some of the lowest standards in quality of life, food quality...etc
At least our taxes which we are paying go towards something in some form. I've had to go to the hospital both here and in the states. The difference between my experience here vs there was that I paid an outrageous amount out of pocket to get a couple of stitches. Thankfully I my visa had some type of travel insurance I found about later, which allowed for the charges to be waived. If you're paying taxes you should at least be able to see something out of it, like not paying for my stay in the hospital or rehab after amputation. In the US I would end up homeless by now, after having paid taxes.

In California I did not pay anything for healthcare. However I was lucky to get an appointment with a general practitioner within three weeks. Then I could be stuck in a waiting room with a dozen other sick people. In Idaho, I pay $167 per month and if my appointment is at noon, I get in at noon, no waiting room. In 2012, I was riding my motorcycle in Calgary when I was rear ended at a stop light and I was transported to the hospital, via ambulance. After Blue Cross of California picked up most of the bill, I was stuck with the remainder……..$12601. In 2016, I was on another motorcycle trip and I stayed a few nights in Toronto. On one evening I sat outside at a steakhouse and had a conversation with a couple sitting at a close table. He was a pediatrician in Toronto. His wife had a cast on her arm. He told me that in moonlights as a doctor in Boston “to make ends meet”. He also told me that if he did not have “connections“ his wife would have waited three months to see an orthopedic surgeon. In Idaho, depending on the injury, I can normally see one within a few days. I know that the US healthcare system is a mess and the only things I know about Canada’s system is described above. Again, nothing is free.

California has a ton of homeless and contrary to popular belief, the vast majority are drug addicts and alcoholics. Some just do not want to work because they get free stuff. A few California Counties provide free needles. Those policies create many more problem. Google San Francisco poop map. SF used to be a beautiful city, but the former mayor who is now governor of California, made it into a crime ridden poop infested metropolis.

 

[SSL Management]

Reduced to 2% according to CTV

 

[masterpoonhunter]

Two questions. firstly, is the point of this tax to raise revenue, curb consumption or both? Secondly, this is a regressive tax and should the tax system not be more progressive?

Right, one thing is pretty sure our tax system is anything but progressive.
A few highlights (lowlights?) in the budget that I got
43B deficit this year
40B next year
1.18T long term debt
The grocery rebate is a fucking joke.
Junk charges (roaming fees, baggage fees etc) to be looked at ... looked at.
15%/30% rebates for clean energy investments.
And 2 instead of 6 percent on liquor.
Not much in there for the average people.

 

[Equity Market investor]

YES, the grocery rebate is complete comedy act. Those rebates are just like those ICBC ( gas ) we had. Does nothing but create more inflation because we all know the government doesn't give out free money. They recoup it elsewhere in time. Let's have more inflation lasting longer. Why not? The liquor tax reduction was a head turned after the original call was for 6%. That was an interesting turn of events. I'm happy they did not touch the capital gains tax as that speculation was again brought up. Not the first time I've heard this before. Anyhow, I can't wait for my property tax and see how much that has increased.

Right, one thing is pretty sure our tax system is anything but progressive.
A few highlights (lowlights?) in the budget that I got
43B deficit this year
40B next year
1.18T long term debt
The grocery rebate is a fucking joke.
Junk charges (roaming fees, baggage fees etc) to be looked at ... looked at.
15%/30% rebates for clean energy investments.
And 2 instead of 6 percent on liquor.
Not much in there for the average people.

 

[Motorman]

YES, the grocery rebate is complete comedy act. Those rebates are just like those ICBC ( gas ) we had. Does nothing but create more inflation because we all know the government doesn't give out free money. They recoup it elsewhere in time. Let's have more inflation lasting longer. Why not? The liquor tax reduction was a head turned after the original call was for 6%. That was an interesting turn of events. I'm happy they did not touch the capital gains tax as that speculation was again brought up. Not the first time I've heard this before. Anyhow, I can't wait for my property tax and see how much that has increased.

How is capital gains tax calculated in Canada? In the United States, an investment gain, such as stocks or real estate, incur a capital gains tax. if the investment is retained for less than one year, the gain is taxed as regular income. If the investment is kept over one year, typically it is taxed at 15%. Depending on income, it could be taxed at 20%, which is much lower than most peoples tax liability. Slow Joe wants to repeal capital gains tax so that he can spend more money. Property tax is an entirely different monster controlled by each state. In California, the purchase price of a residential property incurs a 1.25% property tax. For example, if a property cost $1 million, the first year’s property tax would be approximately $12,500, however, it can only increase 1/2% per year. Californians are also allowed to deduct $7000 from the purchase price for property tax purposes. As they say on television, that’s not all. Within six months of the purchase of a property in California, a one time supplemental tax must be paid at 1% of the purchase price. In other words the million dollar property is assessed a one time $12,000 supplemental tax, which is in addition to the regular property tax. In Idaho, there is no supplemental tax and the property owner is allowed to deduct $125,000 annually from the assessed value of the house. Nobody can explain how Idaho determines property value. I guess it is a complicated system. However as an example, I am told I can sell my current primary residence for about $2 million, but it is only assessed at $1,200,000. After I deduct the $125,000, it is taxed on the remaining amount, which this year incurred a $6200 property tax..

 

[robi]

Yep, it looks like they're "only" raising the tax by 2%, down from 6% for the rest of the year. Presumably, it goes back up after then - so make the most of patio season.

Also, the seem to have dropped the planned tax on non-alcoholic beer.

https://www.canadianbeernews.com/20...iminates-excise-duties-on-non-alcoholic-beer/

https://calgaryherald.com/business/...ores-find-small-bump-on-alcohol-tax-palatable

 

[masterpoonhunter]

How is capital gains tax calculated in Canada? In the United States, an investment gain, such as stocks or real estate, incur a capital gains tax. if the investment is retained for less than one year, the gain is taxed as regular income. If the investment is kept over one year, typically it is taxed at 15%. Depending on income, it could be taxed at 20%, which is much lower than most peoples tax liability. Slow Joe wants to repeal capital gains tax so that he can spend more money. Property tax is an entirely different monster controlled by each state. In California, the purchase price of a residential property incurs a 1.25% property tax. For example, if a property cost $1 million, the first year’s property tax would be approximately $12,500, however, it can only increase 1/2% per year. Californians are also allowed to deduct $7000 from the purchase price for property tax purposes. As they say on television, that’s not all. Within six months of the purchase of a property in California, a one time supplemental tax must be paid at 1% of the purchase price. In other words the million dollar property is assessed a one time $12,000 supplemental tax, which is in addition to the regular property tax. In Idaho, there is no supplemental tax and the property owner is allowed to deduct $125,000 annually from the assessed value of the house. Nobody can explain how Idaho determines property value. I guess it is a complicated system. However as an example, I am told I can sell my current primary residence for about $2 million, but it is only assessed at $1,200,000. After I deduct the $125,000, it is taxed on the remaining amount, which this year incurred a $6200 property tax..

In the simple case:
Half the capital gain is not taxed. The rest at whatever rate you end up at (income + investments + etc). No time limit.
There is a great loophole for shareholders though if you can be so lucky as to be in the position to take advantage of it.
If a company in which you are a shareholder incurs a capital gain, the company pays the tax on the 50%. The other 50% can be paid to the shareholders tax free.
More complex:
I defer as I leave that to the accountants and tax lawyers.

 

[masterpoonhunter]

YES, the grocery rebate is complete comedy act. Those rebates are just like those ICBC ( gas ) we had. Does nothing but create more inflation because we all know the government doesn't give out free money. They recoup it elsewhere in time. Let's have more inflation lasting longer. Why not? The liquor tax reduction was a head turned after the original call was for 6%. That was an interesting turn of events. I'm happy they did not touch the capital gains tax as that speculation was again brought up. Not the first time I've heard this before. Anyhow, I can't wait for my property tax and see how much that has increased.

I expect we'll see at least a 10% property tax increase in Vancouver next time around.
And once the "man" starts taxing, there is no end in sight, ever.

 

[Motorman]

I found this today, it breaks down entire tax burden by state. On a related note, I saw one person on this forum post something about a 10% property tax increase in Vancouver. If correct, that is crazy! There is no way I would do it! Time for a revolution on both sides of the border.
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494

 

[Motorman]

I found this today, it breaks down entire tax burden by state. On a related note, I saw one person on this forum post something about a 10% property tax increase in Vancouver. If correct, that is crazy! There is no way I would do it! Time for a revolution on both sides of the border.
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494

If you notice in the US, the top states with the highest tax burden are all liberal. They have the most homeless and crime, yet those states provide significantly more “social programs“ than states that have less taxes. California was not even in the top 10! I like money and I don’t mind paying my “fair share,” but I want to see and experience where my taxes are spent. Welfare, free needles and resources for people that do not want to work are not on top of my list. Canada is an awesome place to visit, the USD vs CAD is a huge plus, as well as all the beautiful Asian women, but due to its tax policies, like liberal states in the US, I could never live in Canada.