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joyfulguy

Memo to Canadians: Request for your MP: next year's election

joyfulguy
9 years ago

For years, an owner of a small business or a farmer would be tax-free on the first $500,000. of value in their business or farm when they sold it, a few years ago the amount was raised to $750,000., and recently to $800,000., I believe.

When someone buys a home if it's owner-occupied, the capital gain on the increased value is tax-free when s/he sells it. If its status changes during that time, it's necessary to have an evaluation and the increase during the time that it is not owner-occupied is not exempt.

The government has reduced the federal tax rate on profits made by large businesses from about 29% in recent years to about 15% ... to encourage businesses to provide more jobs. And some say to encourage foreign businesses to relocate here: note the recent purchase of Tim Hortons by Burger King ... with Burger King to move its headquarters here, one major reason to reduce its tax load from about 35% in the U.S. by about 10%, when Canadian and provincial tax rates are concerned.

Small businesses in Canada have enjoyed a more advantageous tax rate for years.

The government tells us that they want us to invest in our economy, to provide jobs and such.

Some years ago, people who owned stocks or mutual funds or certain other assets were allowed to keep the first $100,000. of such capital gain when the assets were sold for more than their cost. That exemption was cancelled quite a number of years ago.

Since there's a federal election coming next year, our politicians are somewhat more sensitive to keeping their electors happy than ordinarily, so this might be a good time to suggest to your Member of Parliament that it would be only fair to reinstate the capital gain exemption on stocks or mutual funds that taxpayers sell for a profit.

And suggest to some of your friends that they do the same ... as there may be minimal attention paid when one constituent raises an issue, only slightly more when half a dozen do ... but when they hear from a hundred or so on a given issue ... they start to pay attention.

ole joyful

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