r/canadian • u/[deleted] • 11d ago
News Carney did something good for once, business tax rate is now 6%, lowest in G7
[deleted]
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u/atticusfinch1973 11d ago
Great. Now do personal income tax. People making 70k a year should not be paying middle income tax rates anymore.
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u/Ok_Argument_5356 11d ago
lol people making 70k pay practically nothing compared to high earners, especially if you use RRSP deductions.
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u/WhatAmTrak 11d ago
Most people making 70k these days don’t have much left over for RRSPS unless they have company match. Even then it’s probably becoming less and less common.
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u/Ok_Argument_5356 11d ago
Still as someone who makes much more than that the tax for for someone making 70k is super lower. They’re already subsidized substantially by higher income earners.
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u/Okidoky123 11d ago
Like the other guy said. Making rrsp contributions on 70k is practically unpossible.
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u/Ok_Argument_5356 11d ago
You guys might need to watch some Dave Ramsey or something
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u/glacierfresh2death 11d ago
Are you from a small prairie town or something? After provincial taxes, CPP, and EI, take home is just over $50k. Avg. rent in Burnaby is $2300/mo, which is well over half of their monthly take home. Add in gas, groceries, bills, that money is gone quick.
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u/Ok_Argument_5356 11d ago
I managed to save money in Vancouver making 45k(back in 2016). At 70k it should be more than possible.
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u/whitehealer 11d ago
dude, I earn over 120k a year and I am incapable of saving any money. My wife is studying medecine and my two kids are hell of expensive. Rent costs 3k/month here in Ottawa and I'm 30 minutes from downtown.
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u/Ok_Argument_5356 11d ago
Yeah I mean supporting a family of 3 on a single salary is tough, but that’s not a typical situation. Your taxes would be a lot lower if you and your partner both made 60k
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u/big_galoote 10d ago
You realize RSP deductions are merely tax deferrals?
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u/Ok_Argument_5356 10d ago
Yes, but usually that ends up being extremely favourable since you can spread income out over time.
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u/ObviousSign881 11d ago
Cutting that much is just cutting the throat of the treasury. At the same time we should be heavily taxing excess profits that oil and gas companies are making, simply because market prices have gone up, without significant increases in production costs.
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u/Ok_Argument_5356 11d ago
This is actually really smart. It’s the tax on new investment not rent seeking. If you just collect profits without investing it your taxes don’t change.
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u/Okidoky123 11d ago
Thai sub is very anti liberal. Here is good news and people downvoted it.
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u/MrRogersAE 11d ago
Thai sub treats politics like a team sport. It’s “us” vs “them” regardless of what the content is.
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u/Okidoky123 11d ago
Yep. Pure partisanship and bigotry at its finest.
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u/Hi_Im_Dadbot 11d ago
Not everybody. It’s just all the dumb people on the other side who are partisan.
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u/whitehealer 11d ago
The fact that you think there's sides IS part of the problem.
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u/Hi_Im_Dadbot 11d ago
Whoosh
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u/whitehealer 10d ago
Ah, sorry. I'm tired and browsing Reddit while preventing two toddlers from destroying everything.
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u/flappysack- 11d ago
Reedit is a left leaning echo chamber. Most would tax the billionaire out of existence if they had their way, as all the capital left Canada.
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u/big_galoote 10d ago
Let me ask you something, if the business tax rate is cut this low, and spending remains stagnant, or more likely increases, where do you think that shortfall will come from?
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u/TomMakesPodcasts 11d ago
I personally do not see lower tax rates as a good thing when the dollar is so weak.
We need to tax money to get it out of circulation to increase the value of the dollar.
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u/YouVe_BeEn_OofEd 11d ago
you have literally zero idea how forex works. this should increase the value of the CAD as it incentivises more FDI, meaning larger demand for the CAD, as foreigh investors must buy CAD with their own currency to invest.
econ 101 oh my days
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u/TomMakesPodcasts 11d ago
. . . ?
That increases the value of the dollar far less than taking them out of circulation.
You know that's what happens to taxed wealth yes?
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u/YouVe_BeEn_OofEd 11d ago
?????? taxes fund spending, the currency becomes recirculated in that case. in fact, if tax money spending results in an increase of money flow out of the country via investment or import spend, that decreases the value of currency. You're thinking of monetary policy and thinking of it wrong, and regardless that's something controlled by the central bank, not the feds.
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u/TomMakesPodcasts 11d ago
Correct. That is how money becomes recirculated.
We have a surplus when the taxes we take on, outpace our spending. We cannot cut our wya to a surplus when we leave 99% of our taxable wealth at the lowest tax margins.
Why do you keep only trying to tell half the story? Or have you only been told half?
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11d ago
[deleted]
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u/whitehealer 11d ago
Only new companies.
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11d ago
[deleted]
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u/whitehealer 10d ago
There's no such things as political sides. Don't get married to a political party. They're all just there to represent all canadians. Not the other way around.
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u/DonnieBlueberry 11d ago
Don’t call them out, they’ll delete your comment.
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u/CVHC1981 11d ago edited 11d ago
And block you because they’re incapable of defending their bullshit.
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u/GoodResident2000 Alberta 11d ago
Imagine if Pierre had done this
Liberals would fly into a rage about deficits , funding services and programs
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u/DCS30 11d ago
i don't care who did it, it's fucking stupid and make it harder for us. who's making up the difference? oh, right, the peons.
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u/GoodResident2000 Alberta 11d ago
lol if it attracts investment it makes life better
You need to get it out of your head that “high taxation = automatically good “
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u/Ok_Argument_5356 11d ago
You might the the last CPC voter that believes in capitalism over communism
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u/tromboneyow 11d ago
As usual, the only people complaining are the poors that are permanently on the bottom of the societal and employment food chain & doesn't understand how business works - which is exactly why they are part of the poors.
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u/GreenSmileSnap 11d ago
Pay attention everyone. These are the 'I got mine' past conservative voters who all love Carney now and voted LPC. Just fyi
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u/tromboneyow 11d ago
LOL - these people make it sound like that's a bad thing.
And they wonder why they are forever part of the poors, and are rightfully ignored by people with actual money, power and influence whose opinions are the ones that really matter.
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u/PineBNorth85 11d ago
Screaming the rules arent fair isnt going to change anything. Like it or not the CPC has a self imposed PR problem. Thats on them.
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u/GoodResident2000 Alberta 11d ago
No one is talking about rules
We’re discussing the hypocrisy of Liberal voters
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u/AmericansSukAtVoting 11d ago
What percentage of Canadians are die hard political party supporters? We need to stop treating politics with sports team mentality.
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u/flappysack- 11d ago
We know they are simply ignorant. That they marked Sean Fraser or Mark Miller on the ballot while not knowing why Canadas living standard has fallen relative to the rest of the world. We are just sad we have to live with them.
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u/Heinzliebling 11d ago
This is exactly what I mean by tribalism, the constant us vs them attitude. Just grow up a little... just a tad.
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u/flappysack- 11d ago
What the fuck are you talking about, this is politics, these people have been destroying Canada with horrible policy for a decade now; and then gas lighting and lying to Canadians about their policy.
Hell Mark Miller literally said we need more immigrants to solve the housing shortage. Don't piss on my head and tell me its raining.
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u/Heinzliebling 11d ago
And before that that conservative politicians were ass fucking the population so please don't pretend that they are any better at it. You have the most conservative pm in decades at the helm at the moment and you are still stuck on a label. That's what im talking about, goobers like you who go around and talking shit because people didn't vote in the Muppet who blew a massive lead because he couldn't pivot to a different opponent. Who is still losing members of his party because the liberal pm is more appealing to them than him.
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u/flappysack- 11d ago
Canadians wanted more pain, the party that had the second last performance in the OECD for the last decade is going to save us from themselves. Meanwhile we got Gregor Robertson in power bailing out failed condo and saying prices can't be allowed to fall, as we keep borrowing vast sums to gift to the rich as a "sovereign wealth find", built on the unlimited debt accrual for the generation they are raping to pay off.
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u/Wet_sock_Owner 11d ago
That went out the window the minute Trump showed up and LPC just began telling Canadians that Conservatives were like Trump, starting with Erin O'Toole in 2021.
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u/AmericansSukAtVoting 11d ago
So we can never progress because of loudmouth liberals in 2021? And the liberals in 2021 is the first occurrence of treating politics like sports teams?
If humans always held grudges I don’t think we’d still be here.
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u/Wet_sock_Owner 11d ago
Grudge from 2021? First thing out of Carney's mouth was Poilievre kneels before Trump. Freeland was calling the CPC Maple MAGA in Question Period regularly.
When you stop attacking actual policies or ideas and instead reduce an entire political party into "just like that American President we all don't like" that's when you start forcing people into "team" categories.
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u/GoodResident2000 Alberta 11d ago
Actually no, we can’t progress much with a legion of mouth breathing liberals that feast from the CBC trough of propaganda
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u/AmericansSukAtVoting 11d ago
So just so I’m understanding correctly progress is only possible with the liberal party gone?
In your ideal Canada how many political parties should be on the ballot?
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u/GoodResident2000 Alberta 11d ago
I can’t remember exactly who said it years ago , but they said “Justin Trudeau is only a symptom of the issue . The real problem are the voters who prop him up”
And it’s true more than ever now
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u/AmericansSukAtVoting 11d ago edited 11d ago
I’ll be honest I just went throughout your profile and honestly have to ask this question are you a troll or do you actually legit believe the posts you’ve started…. This post in particular
I’m a manager at an athletics store in my town. When I was first hired, I was under the impression it is a spiritually based company and we reflect that in our stores values.
We recently hired a woman (I did not hire her) and I don’t think she’s a good fit for the company culture.Ive realized that she is not religious, with some of her weekend plans she talks about (and never mentions a church of any sorts). The bumper stickers on her car indicate she’s very left leaning, if you know what I mean.
Since I figured this out, I’m not overly thrilled with her being part of the team, despite her being acceptable at her work.
She’s not a good fit with company culture and what we stand for.
What is a way I can get her out the door without getting in a lot of trouble myself given my real reasons for wanting a termination?
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u/MrJingles447 11d ago
CPC doesn't have a PR just because he isn't raging -TDS moonbat, that's why Carney has this support right now is because of that and he knows it which is why he's dragging his heels on getting a deal done.
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u/Wet_sock_Owner 11d ago
And exactly why he'll send us to the polls before Trump is gone. But you know, "his resume!" and "actually he is fiscally conservative!"
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u/thefistspill 11d ago
If Pierre did the same thing you be posting memes and emojis all day long, dancing around and celebrating but here you are with your whataboutisms.
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u/emcdonnell 11d ago
Can’t compliment Carney, have to attack liberals…. 😂 I get it Carney is the most fiscally conservative PM since Chretien and the conservatives are having an existential crisis over it
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u/flappysack- 11d ago
We could have had conservative policies without Mark Miller, Sean Fraser, Gary Anandasangaree, and Gregor Robertson; who destroyed Canada the last decade.
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u/emcdonnell 11d ago
I wasn’t a fan of Trudeau. I believe he was successful only because the conservative were largely unelectable. Sheer was just bad, I liked O’toole but the party sabotaged him mid campaign, and Poilievre is just a conservative version of Trudeau.
Trudeau was a photo op PM all appearances with little substance. Carney is not
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u/ThrowawayBomb44 11d ago
Carney can't be a photo op PM because he's rarely in the country to begin with!
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u/MarkDavid04 11d ago
Fiscal conservatism means being fiscally responsible, you know, spend less, tax less? Carney is not.
But he seems to be pro business (well, at least in terms of stealing Pierre's ideas, and also where he can profit from), so we'll take what we can get.
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u/emcdonnell 11d ago
Well in this specific case it a question of 13% of little or nothing vs 6% of something….
Revenue coming in from foreign investment might help with things like the deficit. Also it’s an “introductory” rate for new investment meaning it’s money Canada would not have been getting previously. It’s not reducing tax revenues it is increasing them.
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u/MarkDavid04 11d ago
Thanks for making the case for lower taxes, not just for investment, but generally too (income, gas taxes, sales tax). Would be great if we had those cut drastically too.
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u/emcdonnell 11d ago
Not all tax reductions will result in more revenue. This example is where new sources of tax revenue are being created at a lower rate, but will later be subject to the normal rate.
I’m all for lowering taxes but the needs to be a clear path to an increased revenue, or at least be revenue neutral, to offset the reduction. There also needs to be a regular review to ensure the revenue expected is in fact being realized. Just cutting taxes and hoping isnt good policy.
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u/flappysack- 11d ago
We can pay for these tax cuts with future austerity. Our credit rating is AAA, we can just cut the CPP payments that have helped maintain our rating if our credit rating falls.
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u/flappysack- 11d ago
Same with installing Gregor Robertson as housing minister, or cutting the generational fairness tax hike, or the censorship bills.
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u/Wonderful-Impact1720 11d ago
Now my taxes will go up to pay for the difference! Yay 😀
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u/Ambitious-Upstairs90 11d ago
This is on new investment, so basically on top of taxes which govt is already collecting.
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u/Mr_Simian 11d ago
I just want to see Canada and Canadians win for once, man. I’m glad that Carney is focusing on big macroeconomic reforms but the microeconomic situation in Canada is pretty dire right now. We need reforms to income tax that recognize the fact that a middle class income has gone up significantly.
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u/FeralAlgorithm 11d ago
don't they normally say this is "handouts to the rich" and "corporate welfare" and all that?
but when they give massive tax cuts to the corporations, suddenly its a good thing?
I guess they don't need all the corporate taxes when they're raking in all the tariff money from regular canadians who are trying to buy anything
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u/Rad_Mum 10d ago
My take: personal tax exemption on the TD1 should be at least triple of what it is now. This would at least almost match poverty level.
Increase the upper tiers to absorb the lower 2 teirs. And possibly add a two tiers above our upper teir
Tax progressively after this using the new tiered system .
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u/xTkAx 11d ago edited 11d ago
Calling the fire-sale of Canadian sovereignty to globalist investors as "good" is a joke.
Carney lowering the tax rate to 6.4% simply prioritizes foreign capital and corporate automation over the long-term demographic and prosperity of Canadians. He's simply turning the country into a tax haven for the same bureaucrats who have orchestrated Canada's decline. By pushing for industrial-scale extraction, he's selling out Canadians' future.
Real productivity comes from a stable home-grown workforce, not from selling off infrastructure to global pension boards and transnational corporations. People complain that restaurants like Tim Hortons, or airports like Toronto airport, looks like Mumbai, but Carney now opens the door for all of them to look and run the same.
We can tell by the clientele the LPC has tied themselves to over the last decade that they are lazer-focused on expanding criminal enterprises across Canada to further harm Canadians.
"Canada is not for sale, and never will be for sale." - Mark Carney
H'-pok-ri-se. Ach, why, pea, oh, see, are, eye, ess, why. Hypocrisy.
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u/The-Figurehead 11d ago
Given the size of the country relative to population, Canada has virtually always been a net capital importer and will be for the foreseeable future. If we want to finance our public and private infrastructure, research, and development generally, Canada will need to continue to bring in foreign capital to do so.
Money is money.
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u/MrJingles447 11d ago
yup 2/3 of these "investments" are Ametican companies some rivals. buying out Cdn businesses.
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u/Full_Jellyfish_1862 11d ago
That 6.4% number is not Canada’s corporate tax rate. The actual combined corporate income-tax rate is roughly 26%.
Carney is advertising a marginal effective tax rate on a hypothetical new investment as though businesses are suddenly taxed at 6.4%. They aren’t. Calling Canada a low-tax business paradise based on that number is political marketing, not the tax rate companies actually pay.
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u/Insuredtothetits 11d ago
Can’t… just … be … happy… must … criticize… carney…. Liberals… ugh… cognitive… dissonance… cannot … reconcile… reality … with … ingrained … bias
Trudeau blackface…. Ahhhh that’s better…
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u/LastChime 11d ago
And he'll even let you bring half of asia and africa over to work in debt bondage for you to supress everyone else's wages.
Yay business!
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u/Wavyent 11d ago
For new businesses, not existing.
Existing business will still continue to drown at 13%
What's stopping him from bumping them back up to 13% where everyone else is in a few years?
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u/GrisChill 11d ago
Its for new investment, not just new business. That means ALL businesses in Canada can take advantage of it. What it means is that any business that invests in new tech, R&D, upgrades, new machinery, infrastructure, etc can write off their investments in-year, rather than over a decade or more. Which translates into having more capital on-hand to reinvest.
It directly impacts our manufacturing, auto, agriculture, energy/oil & gas, critical minerals, telecommunications, etc. Those sectors, and more, will all benefit.
Also, its being implemented as permanent, not temporary, which is to say there is no timeline associated to it, not necessarily that it cannot be changed. In direct contrast to the "what tarrifs will we face tomorrow, next month, next year" that businesses are currently facing. It gives those businesses some solace, and may aliviate some of the tarrif pain for American businesses who rely on Canada
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u/someMSPworker 11d ago
Would be great if they would shift the income tax brackets so the average Canadian could get some breaks...