Chrystia Freeland would drop the Canadian government’s policy of raising the capital gains inclusion rate if she wins the race to replace Justin Trudeau as prime minister, according to a person with knowledge of her plan.
I’ve always thought a tax on taking a loan out using your stock as collateral is a good idea.
Borrow 1mil, tax it like half of capital gains. Repay the loan, get it back. Sell the assets to pay the loan off, pay the other half of the capital gains.
Or something like that.
Only do it for the wealthy on these bigger transactions. Maybe even starting at 10m, I dunno. They can afford the accountants to do it right at that point.
Edit: and only if the money is taken out of the investment account or used outside an investment account. So you can trade on margin, but not withdraw the loan to buy a house.
I’ve always thought a tax on taking a loan out using your stock as collateral is a good idea.
Borrow 1mil, tax it like half of capital gains. Repay the loan, get it back. Sell the assets to pay the loan off, pay the other half of the capital gains.
Or something like that.
Only do it for the wealthy on these bigger transactions. Maybe even starting at 10m, I dunno. They can afford the accountants to do it right at that point.
Edit: and only if the money is taken out of the investment account or used outside an investment account. So you can trade on margin, but not withdraw the loan to buy a house.
Start it at 10m? So if you only borrow 9m you pay no tax?