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msj

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Everything posted by msj

  1. We can discuss the fundamentals of the US and CDN currencies all we want. But as the old saying goes: the market often remains "irrational" longer than investors can remain solvent.
  2. For those interested here is a screen shot from a 1999 tax return setup to show how a person earning $250,000 in salary may not pay any tax, still get a GST tax credit in the next year (2000) of $257 and get the BC PST tax credit of $50 all thanks to losing money as a, say, farmer: http://farm3.static.flickr.com/2128/152494...7e34536c5_o.gif The lawyer who also is a full time farmer is a good example of this. There is a legal case where a Toronto lawyer had huge farming losses - it went to court because the CRA wanted the losses to be restricted so that he could only deduct a limited amoun
  3. 1) I never said anything about employees setting themselves up as contractors. I did say that people can legally avoid paying CPP with the use of a CCPC. 2) I never claimed it would be practical nor that a person would necessarily be better off. If a person is making good money and benefits as an employee I would expect he/she to be smart enough to know this. 3) Anyone, however, can start or buy a business and they may choose to incorporate that business if one of their goals is to avoid paying CPP (which generally is lower on the list than the deferral of income tax and potential liabilit
  4. You are getting it entirely wrong: 1) When a person works in the US and is still considered a resident of Canada (which is how we tax people) then that person would not pay into Canada's EI system. 2) A person can make $250,000 in salary during the year, get laid off and, ignoring any effects of severance pay on an EI claim for simplicity, collect EI. Why? Because EI is not income tested with the exception of the EI clawback (for which the government adds an extra clawback tax to EI benefits if you collect them during the year and then file a return with Net Income in excess of $48,000)
  5. 1) Where have I painted anyone with "the same low level brush" wrt welfare? I am specifically talking to EI, CPP and IT for which you are one of the worst offenders for knowing very little about those particular Acts and/or for your idle speculation based on limited information and limited knowledge. 2) See my earlier post responding to, iirc, Geoff, about using a CCPC to either pay out dividends or to set up a proper profit sharing plan to get around paying CPP.
  6. 1) I agree with you that we are not talking about year after year. We are talking about 1999. That is one year. We do not know from the information provided whether or not any of these individuals are not paying tax in earlier and/or later years because the statistics are based on aggregate information. 2) Since we are talking about one year and there is no statistical proof presented here of anyone getting away with paying no taxes while having a high taxable income (or even total income or net income) it is nothing more than idle speculation and, therefore, completely worthless, to "discus
  7. The problem I have with this is that the frames of reference are either not provided or are not understood. [Actually, they are implied in the original post but only a few people would actually have an understanding of what is being implied] Look at a proper tax return. Look at line 150 Total Income. Is that the frame of reference being used to determine someone "made" $250,000 or is it going to be line 260 aka "taxable income?" Let's also not forget about line 236 aka "Net Income." The distinction is important because it is very possible for a person to have net income of $250,000 but ha
  8. Not everyone pays into CPP. People have a choice if they want to. Incorporate a Canadian Controlled Private Corporation and run a business. Then pay out dividends rather than wages. You would not have to pay any CPP. However, you would be paying corporate tax and personal taxes on the dividends (assuming they were high enough to be taxable on your personal tax return). Alternatively, set up a CCPC and set up a profit sharing plan (make sure it is set up absolutely legally). The payments will be deductible to the company but do not count as earnings for CPP purposes. A legal case just cam
  9. mikedavid00, the reality is that no one here really is going to take your word on anything. Your ridiculous use of hyperbole added to your pathetic math skills, all while claiming to allegedly knowing how to do research, is laughable at best and sad at worst. So compare Canada to Cuba or China all you want, and continue to make up numbers without statistical merit, but no one buys it.
  10. Fair enough. Probably almost as widespread as the misperception that self-employed people are better off since they get to deduct expenses.
  11. For any self-employed person to not know what their after tax income is (that is, gross income minus the expenses they incur to earn that income = taxable income then minus taxes = after tax income) compared to their employees (since, gee, the business person is paying the employees' wages, deducting the employees' cpp/ei/tax, then adding 1.4 * the withheld EI and doubling up the CPP and then paying that to the government by the 15th of the next month) well, there is no explanation for their ignorance. The self-employed take risks. They don't get vacation pay like employees since when they t
  12. Frankly your story is ridiculous. I am a tax accountant so I know the difference between gross income, net income and after tax income. Just because your farmer friend conducts himself in a way that involves tax evasion does not mean that all business people do. The only expenses that are tax deductible are those that are reasonable and are incurred to earn income. As such, by definition, the typical business person or farmer is not better off for taking deductions since s/he has to spend money in order to make money whereas an employee often does not. IOW, most farmers break out prope
  13. 1) Most employees don't get employment expenses. Even those that do they are often scaled back considerably through stupid laws such as only allowing apprentices to deduct up to $500 worth of tools but s/he has to spend $1,500 to get that $500 deduction. Also, why do people consider this a perk? If I have to shell out $100 on expenses in order to maintain my employment then I am still out of pocket $60 after the tax savings. Why do people think that this is good for someone? Think about it: you are better off if you are not paying for expenses in the first place or, if you are, you are being
  14. Good way to delve into the stats bk59. My opinion on the payment of federal civil servants is informed at the bottom of this link: http://www.tbs-sct.gc.ca/spsm-rgsp/er-ed/vol1/vol106_e.asp As for compentency: you're right we can only judge on an individual basis but how many people are there who are highly competent and are willing to take a pay cut for the public good when they see CEO's in the private sector making a ton of money? As much as I think the private sector pay grades are ridiculous (at the top levels) we don't have much choice but to follow them to some extent if we want
  15. I will assume that you are off on the basis that it should be 3.2M + 10.9M = 14.1M employed and, based on this at a simplistic level, is 22.6%. The problems here being many: 1) Self-employed people aren't counted as employed (unless they work for their own corporation as an employee) 2) Part time/full time breakdowns may also prove beneficial 3) Government's contract out (often to former employees) so these people are counted as self-employed or as private sector employees. 4) Etc... Why wouldn't most civil servants be making more money than many in the private sector? The priva
  16. Here is the story about the Cons backing off: http://www.ctv.ca/servlet/ArticleNews/stor...829?hub=QPeriod I found this section of the article most interesting: Government officials have distanced themselves from Harris's unofficial appointment of Smith as the riding representative in Ottawa. "He just kind of did that himself,'' government spokesman Ryan Sparrow said of Harris's move. "(Smith) is the Conservative candidate in the next election. That's her only official capacity.'' Sparrow was unequivocal when asked whom local residents should contact for federal help: "They should conta
  17. This was already discussed on Garth Turner's blog: http://www.garth.ca/weblog/2007/08/26/screwy-in-skeena/ Also see the August 22 and 23, 2007 CBC interviews: http://www.cbc.ca/daybreaknorth/daybreak_again.html
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