Ron Butler Profile picture
Mar 31 5 tweets 1 min read Read on X
How Bad Is It That Canada's Economy Is Completely Dependent On Tax Policy?

Canada has gone down such a wrong road

Yesterday an announcement changing a Tax Policy was done to save the Residential Construction Industry

From a Tax Policy that killed the Construction Industry

2/
Which is fucking nuts!

We taxed the Housing Industry literally to DEATH: taxes, fees & levies were 30% of the price of a new home compared with 2% 30 years ago

Then the Government announces a TEMPORARY waiver of the taxes

1 Year for HST
3 Years for 50% off Development Fees

3/
And the Residential Construction Industry comes out of a Coma

But lets stop & realize just how incredibly BAD the whole thing really is

Tax Policy now rules Industry

In Manitoba Taxes were removed from Fast Food sold in Grocery Stores but remains on Restaurant Food

4/
What the hell sense does that make?

Does Manitoba hate Restaurants?

But this madness never stops

Endless tinkering with tax policy created an Industry of Tax Preparers

Accountants spend days learning new Business Tax Changes EVERY YEAR

Never any year without changes

5/
Look I understand we need taxes

Society needs services that Government's supply

But the size of Government & Taxation have grown MASSIVELY in the last 20 years

Same with Regulations

We need huge change to reduce Government & Taxes

We need it now before it's too late

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More from @ronmortgageguy

May 15
Sell The Airports
Sell The Seaports
When You're The Prime Minister From Brookfield EVERYTHING Is Financial Engineering

Federal Government doubled down: Not just sell the Airports, sell the Seaports too

Here's the truth: companies who buy these facilities insist on PROFIT

2/
Therefore once sold eventually the cost of using Airports & Seaports must RISE

The Federal Government's plan is to raise Billions for "Other Projects"

Well, with a $60+ Billion Annual Deficit Government should have access to money to finance "Other Projects"

3/
Why does the Prime Minister like these ideas

Because his background outside of Central Banking is Goldman Sachs & Brookfield

These companies are masters of Financial Engineering

The acquisition & modification of companies through complex Financial mechanisms

4/
Read 6 tweets
May 12
Why Are Bankruptcies & Insolvencies Growing So Fast? They Have Reached 2009 World Financial Crisis Levels

Main Reasons:

- The Collapse of Residential Real Estate
- Growing Unemployment in Full Time Jobs
- Inflation Destroys Affordability

This will ikely get much worse

2/
The most striking aspect is the growth of Homeowner Insolvencies

From 2015 through 2023 the number of Homeowners filing Insolvencies was incredibly low

The growth in Home Values in Canada provided an ever increasing buffer of equity that could be tapped for cash

3/
If a Homeowner got in financial trouble they just refinanced their Home

Restructured to pay Credit Cards & Lines Of Credit

In the most unmanageable situations just sell the Home & the rise in value settled all debts

Particularly in BC & Ontario this option always worked

4/
Read 6 tweets
May 4
When Will Canadians Tell The Prime Minister: TIMES UP!

It's been over a year since Prime Minister Carney's election & at what point do Canadians question his promise of: Build Bigger & FASTER than ever before

When will Canada become the Energy Superpower he told us?

2/
Look, I get it, things take a bit of time

But so far it's:

- MOUs
- Open Agencies & Crown Corps
- Start some things already approved

Where is the New Oil Pipeline to the North Coast of BC?

Where are the NEW Mines?

Where are NEW Natural Gas Liquification Plants?

3/
We're not even asking for Construction to start

Just where are the Signed AGREEMENTS

Because that's not even hard

Organize the Meetings
Attend the Meetings
If First Nations refuse OVERRIDE them

That's actually how FASTER works

Decisive, Aggressive Actions

4/
Read 6 tweets
Apr 28
Prime Minister Carney Operates A Government For The Elites: It's Becoming Obvious Now

It's just out there now, it's become clearer

The 80% of Canadians who ARE NOT in the top income or top wealth brackets are being left behind

This is a Government for top tier Canadians

2/
People can say: Oh No, look at the Essentials Benefit to help lower income people hurt by inflation. Look at the reduced taxes for lower income people

None of that really helps Working Poor or Middle Class Families because Inflation still runs HOT & is about to get hotter

3/
And Wages in Canada have been suppressed for a decade

No one argues about Wage Stagnation anymore it's just accepted fact

There 2 things Middle Class Canadians need:

- Lower Taxes
- Higher Paying Jobs

And despite some bandaid policies those 2 things ain't happening

4/
Read 6 tweets
Apr 17
Peak Fuckery: Parents Who Took Out HELOCS & Mortgages To Provide Down Payments For Kids To Buy Homes In 2021 Now In Power Of Sale

Sounds crazy right? And it's not thousands of parents but it is happening right now in Ontario to some Seniors

It's tragedy & it's not fixable

2/
Think back to 2021: Real Estate was going crazy

Many RE Agents actually suggested if people didn't buy homes at sky high prices that they would be shut out of ever owning a home

Many Realtors suggested 10% or higher price increases FOREVER

Because Immigration, Blah Blah

3/
During this time of peak FOMO (Fear Of Missing Out) some parents of adult children believed the hype

After all, the parents own homes had increased in value astronomically in 20 years

They wanted their kids to have the same benefits

A few parents didn't have cash to give

4/
Read 6 tweets
Apr 10
Canadian Rents Have Gone Down 18 STRAIGHT MONTHS & More New Construction Rental Supply Is Coming Than Ever Before In History

Yeah, Mom & Pop Landlords who bought units in the last 6 years knew things were bad

But in some Canadian cities we're headed for Landlord HELL

2/
Not even kidding

If you bought a Pre-Con Condo in 2020 - 2022 in Toronto or Vancouver you were already in big trouble on Price

You paid way too much

But if you managed to close you were faced with big Negative Cash Flow

Which is bad: but it's going to get WORSE

3/
It's a Perfect Storm of Landlord destruction in some big Canadian Metro Areas

- Every Year Expenses RISE: Condo / Strata Maintenance Fees & Property Tax increase every year

- With CMHC support there has NEVER been as many new Multi-family Purpose Built Rentals coming

4/
Read 6 tweets

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