Oddbean new post about login | logout Holy shit Canada I had no idea your capital gains tax was 50% until today, and that they want to go higher?? 😳
Wild.
Only above a certain income.
They also just raised the inclusion rate to 2/3 instead of 50%. Young voters are going to learn that eventually all of the things they demanded from the government need to be paid for. Higher taxes, higher deficits, higher inflation housing out of reach for most young people…….the liberal government will get flattened in 2025.
It's not 50% You pay your marginal rate on 50% of the gain Our rate is lower than USA currently
This. Details matter friends.
I’m confused. Top rate in U.S. is 37%
If u have 100k in gains Only 50k is taxable If your marginal rate is 20% You owe $10k in taxes in total on the 100k gain
On 100% of the gain. $100 gain = $37 of tax $100 gain * 50% = $50 taxable dollars * your income tax rate = amount of tax Thus, if your tax rate is 45% then $22.5 of tax
Not on capital gains. I believe you’re thinking income.
Small correction here. Currently Canadians pay tax on 50% of the capital gains. So on $100k gain, you’re taxed on $50k. Going up to 66% on over $250k. Just going to keep getting worse. Bitcoin is the way.
The most recent budget (yesterday o think) is a nightmare for fiscal conservatives and a dream for the NDP. Trudeau’s liberals have lost the young voters and this is their attempt to buy them back.
We also get taxed on dividends
The capital gains tax is NOT 50%. You’re taxed at your income tax rate on 50% of your capital gains. So let’s say your federal + provincial income tax rate is 35%. You invested $1000 and sold at $2000. The math is .5 * 1000 * .35 = $175, which is an effective cap gains rate of 17.5%.
community notes ftw
