Prime Minister Justin Trudeau, Finance Minister Chrystia Freeland and cabinet ministers pose for a photo before the tabling of the federal budget on Parliament Hill in Ottawa, on April 16.Justin Tang/The Canadian Press
Gains and losses
Re “What sort of vision for the country can you conjure from inside a very deep hole?” (April 17): The budget laments that few Canadians under 30 report capital gains. So in fairness, it says, older investors who do should be penalized.
Does the government not understand that someone at 30 is not expected to realize gains, but rather save for a wedding, home or car, or pay off student loans? They are only 30, after all.
No, those elusive gains generally come to older investors who, first, fund a portfolio with hard-earned after-tax dollars; then wait patiently for growth while paying taxes on dividends; then fret as the “inflation tax” erodes their gain’s real value.
With lots of taxes paid well before any hit on capital gains, it hardly seems fair to make that hit even harder.
Ted Brough Woolwich, Ont.
Re “Ottawa’s plan for a (very limited) increase in the capital gains tax? It’s a start” (Report on Business, April 19): Ending the capital-gains exemption for principal residences? If we treat a person’s home like an investment property, then they would get to deduct expenses such as mortgage interest and the cost of capital improvements.
This means minor home improvements would also be taxed, such as retiling a bathroom or painting a bedroom. And what about operating expenses such as property taxes and utilities? Land transfer taxes? Brokers fees when a house is sold?
Most homeowners probably do not have all the receipts for work done, so many will end up paying accountants to work out what they can deduct. Then they still might find that they can’t claim all they spent to add value to their homes.
Taxing principal residences would be a nightmare for everyone. It’s likely that no government will dare try it.
Brian Graff Toronto
The capital-gains tax does not take into account the time period over which a gain has been made,
Few people would argue that someone who flips a property in six months should pay a gains tax and probably on 100 per cent of the gain. But someone who sells a cottage owned for 30 years should pay a lot less. It should be possible to calculate a graded payment.
If an investment made 20 years ago returns a gain of say 3 per cent annually, it has probably taken a loss when accounting for inflation and should not be considered a gain at all.
Bernard Downes Stouffville, Ont.
I was astounded to learn that, according to Chrystia Freeland, I am now considered one of Canada’s wealthiest 40,000 citizens.
Although being a struggling middle-aged musician still living with my parents, I did scrape together my life savings for a one-bedroom condo. I rent it out to tenants, because I cannot afford to live in it myself.
This investment property, combined with my music gigs, nets less than someone on minimum wage. Yet when I eventually sell my condo, my capital gains will be taxed at the new higher rate, apparently reserved for Canada’s uber-wealthy.
If I am an example of the top 40,000, then Canada sure is in bad shape.
Pamela Ferreira Toronto
It is not just the top 0.13 per cent of taxpayers who are affected by the capital-gains tax.
Even if we overlook those who have a cottage or rental property, or disposing of any asset that has appreciated, these changes will effect those the government most covets: young people. Anyone struggling to save for a down payment on a home will likely need an investment vehicle other than a GIC, if they ever hope to make that happen.
Now they will be penalized that much more for doing so.
Tom Spenceley Calgary
Health problems
Re “At 40 years old, it’s time for the Canada Health Act to have a makeover” (April 18): As a former MP and cabinet minister of the 1984 government that introduced the Canada Health Act, I applaud contributor Colleen Flood’s call for its review.
Her analysis deserves careful consideration of remedial review to a system that has served Canadians well for 40 years. Political activists, à la Pierre Trudeau and his then-minister of health and welfare Monique Bégin, should “take up the quarrel” afresh against diminished universal health care and concern for all.
Paul Cosgrove Brockville, Ont.
As a retired family doctor with 40 years experience working in Ontario, I believe this opinion misses the essential issue.
It is not privatization nor two-tiered medicine. The main issue I see is that family doctors in Ontario, and most of Canada, are one of the lowest-paid groups of professionals in the country.
A significant increase in compensation would go a long way to improving patient access.
Alan Fegelman New Tecumseth, Ont.
Smart thinking
Re “U.S. power, tech companies lament snags in meeting AI energy needs” (Report on Business, April 19): With all the discussion about artificial intelligence, we should ask ourselves how “smart” we want to get.
With the vast amount of computing infrastructure and electricity needed to operate and cool AI servers, we are at risk of making the same mistake we did with oil: taking a miraculous resource and squandering it by using it everywhere, wasting it and ignoring its environmental cost.
Do we really need smart fridges and myriad other trivial things that are also then thrown away, often with critical minerals needed for more important uses of AI?
Walter Abicht Kingston
Woof
Re “Quebec zoo examined animal behaviour during last week’s total solar eclipse” (Online, April 14): I, too, wondered what effect the eclipse would have on my cairn terrier named Bobby.
As the sky started to darken, he started whining and at the eclipse’s peak, when it was as dark as night, he really was agitated and crying.
I put it down to the fact that he thought I had forgotten to give him dinner, as he was quite satisfied after being fed, before it became light again.
Judith Watkins Toronto
Off the clock
Re “Bringing workers back downtown won’t make Toronto great again. But making it fun might” (Opinion, April 13): For decades, downtown Toronto had a vibrant and delightful after-work cocktails scene, especially on Thursday nights. Anyone over 40 should know exactly what I am talking about. Ah, the memories.
In Montreal it was known as cinq à sept, but in Toronto it was more like cinq à dix. Sadly, this wonderful tradition has largely faded ever since COVID-19 struck.
In light of contributor Richard Florida’s exhortation that downtown Toronto become a zone of socializing and having fun, it would be truly refreshing to see Thursday nights in the Financial District return to the good old days.
I hope all downtown Toronto workers reading my letter take note.
James Phillips Toronto
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