The government giveth and the government taketh away

The government giveth and the government taketh away

“The government after giving me back $600 of my own money …. Go get yourself something REEEEALL Nice – Author unknown

The government giveth and the government taketh away

This whole scenario of taxing unrealized capital gains is a huge grab for your wealth whether your rich or poor. Some people think that this is OK, but the vast majority don’t. Just think about it, if the government had to physically take money out of your pocket every pay day for new taxes or to strip away “unrealized capital gains” physically from your pocket, you would feel much differently about it. Even more importantly, how far does this type of thinking go and where does it stop…or does it? A tax like this starts at a very small amount to get you conditioned to it, then it gradually escalates till it is unbearable and you see your future retirement being stripped away by the very people that you are paying ever increasing pensions to.

I tend to look at objectives when things like this are done. In my mind it is totally different to pay taxes for needed infrastructure, hospitals, roads, etc. but today most of the new taxation is for much different causes, many that will not benefit the people that the money is being stripped away from. I think we all realize that we must be good ambassadors and understand the need to help others who are unable to look after themselves or a population that has been tragically devastated by unforeseen events that we as people have no control over and this is not what I am referring to. What I am referring to is the mammoth waste that I see taking place and the money taken from people like and I to pay for it. Interestingly enough, there are many Canadian politicians that find the need to funnel their money offshore to escape the taxes that you and I are expected to pay. Here is a link to an interesting article about the “Paradise paper” that highlights some of this:  https://pressprogress.ca/heres-a-running-list-of-liberals-and-conservatives-linked-to-offshore-tax-havens/

My wife and I as I have mentioned before live WELL within our means. We don’t spend money frivolously on things we don’t need. We think things through before we spend, we look at whether it is good value in our eyes, do we actually need it, will we use it or is it going to just sit around collecting dust. So why do we think this way?  Well, when you have not been given anything and the only way you have what you have is by working long hours in lieu of other things that you may have wanted to do but instead you “kept your nose to the grindstone” you then tend to think a different way about the by-product of all those hours spent so you more cautiously spend to not make all that sacrifice for not.

Today, overall, I tend to see a much different way of thinking. I literally shake my head when I see people buying things that they clearly do not need and cannot reasonably afford, and I see it on a regular basis. So, is it the value of things that has dropped or is it that we as a society have change our need – want values to be more of a want – need value because it fits what we want?

I am like everyone else from the point of view that there are many things that I think I want but I weigh them to see if they fit my formula or if it is just a passing urge?  Part of my formula is, what is the probable value of it once I don’t want it anymore. I guess that is why we gravitate to real estate. I like to be able to touch and feel things which is why I stay away from most stocks. We do have our RRSP portfolio, but those monies are in things that I feel have inherent value on liquidation and not things that could be a future Enron. Basically, I like to acquire things that will be worth much more later than I what I paid when I bought them which precludes me from frivolously spending on depreciating assets.

So, this brings me back to the point of the matter. If the government starts taxing unrealized gains, does that not diminish the value of the funds that you worked so hard for as well as the asset you used those funds to buy?  Of course it does. Is there any downside to you if this were to happen? Of course there is. If you think this is not on the Federal governments radar, then you are sadly fooling yourself. We are is a sad situation here in Canada financially as well as abroad and the only ones to pay for it are you and me.  It is much like the slaughter of animals for food consumption, they have absolutely no idea what is in store for them while they pony up for the food that they are so graciously fed without having to do anything for it… then Wham!!!

My advice has always been to live within your means, but I might add to that today, keep your eyes wide open as you pony up to that trough because the guillotine may just be a little way down the road waiting for you!!!

Pay your taxes yes but protect your money and assets like they are your children…with every dying breath.

Hope you all have a wonderful weekend.

Brian McCullough, RE/MAX of Nanaimo

#1-5140 Metral Drive

Nanaimo, BC V9T 2K8

Office: (250) -751 – 1223

Email: brian@mmshomes.com

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