Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain
Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain
The amount of whining is phenomenal. Shut up and pay your taxes.
Brain drain? The brains are pulling salaries for their primary income. If you want to stop brain drain, pay your employees more, you whiny, greedy leeches.
Edit: Like, seriously, the gall of these people presuming to be the "brains" because they own shit for a living.
"brain drain" is always used by right wing and liberalists as an excuse to reduce tax. The only people that really "drains" are the greedy crooks. Calling it "brain drain" just shows what they think of themselves...
University professors, engineers, and doctors (those who are not crooks) will not leave, they have roots at home and will not leave.
Calling it "brain drain" just shows what they think of themselves...
You hit the nail on the head. This is precisely a "fountainhead" fantasy for self styled big brains who are so smart that they don't understand that they live in a society.
Very well said, and a vastly under-reported issue at the root of many of our civilization's problems
And those professionals often aren't getting the majority of their income from capital gains.
Or often any of it, until retirement. If you actually do work for a living, you don't have time to be constantly shifting assets around the market.
Wait a sec, making company owners pay more taxes will cause workers to leave? Wouldn't it just make the quality of life for workers better, thus preventing them from leaving for the US, etc?
There is such a society rot versus making less profit that business owner see this as they have to raise the price to match the profit they didn't make. There is no other options.
Honestly if the selfish arses don't want to pay their fair share of taxes, they can leave and sell their houses!
Their business isn’t going anywhere and will benefit more under the increased taxes as the employees will have better societal services.
Tech startups have long been a gambling game that would make the Ontario Lottery and Gaming Commission proud. They often underpay their staff and make up the difference in stock options etc., hoping that the company will gain enough momentum that they can cash out before potential investors realize they're a long way from turning a profit. You have to be either young and foolhardy or crazy ambitious to hitch your wagon to that kind of star.
Will this tax change discourage those types of companies a bit? Maybe, but since most of them fail anyway, I don't think much of value is going to be lost.
(I was young and foolhardy once upon a time, but I'm actually not all that salty about it—they paid me a reasonable salary and I wasn't expecting the rest of what they promised to actually materialize. However, I had the advantage of not having picked up any student loan debt, which was rare even then.)
This doesn't even affect most workers who get RSUs. Only people whose shares might grow by more than 250K in one year. Not whose shares are worth over 250K.
Funny.
Decent social welfare sustained by a fair tax system is exactly the reason a few "brains" I know (high skilled tech immigrants) ended up picking Canada over the US. (also, guns)
It will do the opposite, if anything reducing the capital these huge companies have should encourage small business growth and entrepreneurship. They cant just open up and crush the little guy.
It's just that most entrepreneurs see themselves as temporarily displaced billionaires so they work against their own best interests.
This is the best summary I could come up with:
Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.
The CCI has written and is circulating an open letter signed by more than 150 people in the Canadian business community to Trudeau's government asking it to scrap the tax change.
The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.
He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm's stock options grow in value.
But Lindsay Tedds, an associate economics professor at Carleton University, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country's talent has been overstated.
While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren't the most major problem.
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