Canada is worse it seems “Canada just passed a new budget act upping the exclusion rate for capital gains to 66.6% “By increasing the capital gains inclusion rate, we will tackle one of the most regressive elements in Canada’s tax system,”the government said in the budget document. The current 50% inclusion rate on capital gains disproportionately benefits the wealthy, who earn relatively more income from capital gains compared to the middle class, the government said. It's incredible they think that a "50% tax" is the wealthy getting off easy, and that they needed to fix the situation by raising it to 66.6%”
Just to clarify, it's not a 50% or 67.5% tax. In Canada ther is no capital gains tax rate, it varies with your income. At present you are taxed on 50% of your cap gains. If you made a $100, $50 is considered income and you are taxed at your marginal rate. Now the $100 cap gain will be considered as $67.50 in income. Not happy with it but even if we manage to change governments I'm afraid it will stay in place. Robinhood mentality, take from the rich and give to the poor.
It’s crazy that taxes have always been due once a year on April 15th but now they penalize us if we don’t make monthly “estimated” payments. It tells me that the cash drawer is so empty they can’t wait.
Look on the bright side if you are making monthly payments you're profitable. One of the benifits of having tax free or tax deferred accounts.
I know people drawing retirement and they have to send a check every month because they no longer have an employer holding it out for them. It’s not a super huge burden but they’re literally doing 10x the work to pay the same amount.
Tell them to send the full amount at the beginning of the year and be done with it. I know it's the princple of lending a spendthrift government money interest free, but you have to pay that amount anyway and you only have to do it once.