Taxing the gains on a principal residence as an investment lacks "critical analysis."
As opposed to the idea of taxing the investment gains of anyone that doesn't own a home, including a generation unlikely to ever own.
That's just good business for old folks.
2/ Here. Keep tax exemptions on the profits of homes.
Just let our generation know where we can opt of paying for your CPP.
Boomers: Tax people that work! They don't contribute to society like we do. We had to buy a home for a nickel, and worked twelve jobs in a day. It took just as long to save a downpayment too!
It took your generation 25 years? You bought your starter home at 45?
Want to know how badly Canada screwed up? The lighter the color, the fewer the young homeowners.
Toronto is left, and Vancouver right. They're almost hollowed out of the demographic that spends the most disposable income.
Canada created two massive retirement villages.
The worst part is the people on the outside that commute into the city? They also have to subsidize all of those older homeowners.
They subsidize the lack of property tax revenue.
They subsidize healthcare.
They subsidize CPP.
In exchange, they get higher income taxes.
Anyway, that's how we end up with an army of young people that secretly want austerity, and just won't say it out loud.
Doug Ford has a huge lead in Ontario. Young people are happy with the cuts, because what's the point of services they'll never use?
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"The government is trying to microchip you with vaccines."
Bruh. Have you tried to use a government website? There's no way they can build that kind of tech.
Imagine if Canada tried to microchip people with vaccines.
*two weeks later*
Everyone receives an email saying their microchips have been locked, please call in to have it reenabled. Everyone's on hold for 8+ hours to reactivate.
Imagine if the 🇺🇸 tried.
“We wrote the system in COBOL, a language no longer used in computing, and can’t find anyone to finish it.”
Canada floods the mortgage market with cheap cash to create tons of homebuyers.
... just ahead of new anti-money laundering rules they were pressured to adopt
... right before beneficial ownership registries become mandatory...
... during a money laundering inquiry. 🧐
2/
On the upside:
- give money launderers warning they won't be able to hide in homes in a few months
- let homebuyers borrow more money during the warning period
- your money laundering expert witness "disappears" during a inquiry
Laundering stats will be nice and low!
3/ I'm not discounting the stars have aligned for incompetence, but this is amazing stuff.
The federal government also disassembled the financial crimes unit in Ontario. We have money for "whatever it takes, for as long as it takes" ... except this
Okay, quick lesson so you'll understand the economy better than politicians.
The velocity of money is the rate at which each dollar travels through the economy, captured in GDP.
A high velocity economy is what benefits the most people, and is the gold standard.
<thread> 🧵👇
2/ In a high velocity economy, every dollar you spend ripples through the economy quickly.
Let's say you go to a restaurant, and buy a sandwich. That $10 (it was a pricey sandwich) goes to the shop, who spends it on at the grocery store, who spends it at a wholesaler, etc..
3/ This is a high velocity transaction. Each dollar you spent had an impact throughout your local economy.
At some point (2000), Western economies got tired of increasing GDP by velocity. Instead, they decided they were going to try to grow it by *credit*
A VC once told me to invest in anything that can be used for *legal* money laundering.
Not to make money from the launderers, but because the launderers will hide activity in businesses, boosting the likelihood of legit businesses hopping on.
Heck of an investment thesis.
2/ It turns out the whole gig economy was a great use case.
Renting a room that goes for $100/night in a hotel for $2,000/night on a short-term rental site doesn't set off any red flags, or capital currency controls.
It also isn't subject to laundering regs. 🤣
3/ Also incredible how simple the operations are.
Person A buys a house, and rents it.
Person B gets people to rent from abroad. Don't show up, just pay.
Person A uses the revenue to secure more assets, and expand operations. Brings a new meaning to ghost hotel.