▲ | slowmovintarget 7 months ago | |||||||
It makes zero sense when you consider that the stock market is how most people save for retirement. What you're saying is people aren't allowed to save for retirement, and you have to tax them every step of the way, destroying that savings because they might be well off due to owning stocks. That's not reasonable. | ||||||||
▲ | mikrl 7 months ago | parent [-] | |||||||
In Canada we have two types of nonstandard tax accounts, an RRSP and a TFSA. The RRSP is what I think is called a 401K in the USA: you put money in pre-tax and pay income tax when you liquidate/withdraw in the future. The TFSA you put post-tax money into and pay no tax to withdraw, including CGT, though there is a maximum capacity. I would imagine if this tax came to Canada, RRSPs and TFSAs would be exempt from it. My brokerage lets me open RRSP, TFSA and a standard cash/chequing to buy securities, but CGT only applies to the cash account which I don’t use as I haven’t maxed out the others. If I was maxing out the others, I’d have enough slack to do the financial dance, at least in the governments eyes… | ||||||||
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