The federal NDP released its platform:
NDP leader Jagmeet Singh said his party would raise corporate taxes to 18% (from 15%) and tax capital gains at a [inclusion] rate of 75%.
…
The party would maintain the current small business tax rate of 9%.The NDP would also increase the top marginal tax rate for those making more than $210,000 to 35% from 33%, and implement a 1% wealth tax on “super-rich multi-millionaires with wealth over $20 million.”
…
Other tax components of the NDP platform include:A 15% foreign buyers tax on purchases of residential property by foreign corporations or people who are not citizens or permanent residents.
Doubling the Home Buyer’s Tax Credit to a maximum credit of $1,500 from $750.
Allowing income tax averaging for artists and cultural workers.
Ending the stock option deduction.
Ending “the unfair tax treatment of family farm transfers.”
Making the Canada Caregiver Tax Credit refundable.
Expanding the Volunteer Firefighters Tax Credit.
Changing the capital gains inclusion rate is a silly idea; it will simply provide even more encouragement for investors to retain their holdings forever and pay taxes only after death. I have long advocated a change whereby the capital gains and dividends are taxed the same way they are now, but with a cap: allocations into this bucket capped at some high figure, non-cumulative, annually. Say, $1-million a year. This won’t affect Joe Lunchbucket in the slightest, but – in addition to being a more effective tax on the super-rich than a wealth tax – will have the salutary effect of encouraging the super-rich to realize capital gains, in order to fill up their bucket every year of their lives, rather than grossly exceeding the cap upon death.
However, I was pleased to see that they are afraid to propose fiddling with the Dividend Tax credit and Gross-Up!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5097 % | 1,913.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.5097 % | 3,511.6 |
| Floater | 6.19 % | 6.52 % | 69,589 | 13.18 | 3 | 0.5097 % | 2,023.7 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0454 % | 3,320.3 |
| SplitShare | 4.69 % | 4.70 % | 73,814 | 4.21 | 7 | -0.0454 % | 3,965.1 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0454 % | 3,093.7 |
| Perpetual-Premium | 5.60 % | -9.56 % | 71,323 | 0.09 | 7 | 0.1963 % | 2,952.9 |
| Perpetual-Discount | 5.50 % | 5.62 % | 59,690 | 14.40 | 26 | 0.0608 % | 3,068.0 |
| FixedReset Disc | 5.55 % | 5.38 % | 161,956 | 14.67 | 70 | 0.5433 % | 2,059.5 |
| Deemed-Retractible | 5.29 % | 5.97 % | 76,370 | 8.02 | 27 | 0.0800 % | 3,072.9 |
| FloatingReset | 4.06 % | 4.93 % | 47,356 | 2.50 | 4 | 0.7735 % | 2,339.7 |
| FixedReset Prem | 5.11 % | 3.84 % | 193,196 | 1.84 | 16 | 0.0242 % | 2,584.1 |
| FixedReset Bank Non | 1.98 % | 4.14 % | 153,221 | 2.52 | 3 | 0.0000 % | 2,638.3 |
| FixedReset Ins Non | 5.38 % | 7.56 % | 95,540 | 8.10 | 22 | 0.6806 % | 2,111.6 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| GWO.PR.N | FixedReset Ins Non | -2.64 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.63 Bid-YTW : 9.44 % |
| CU.PR.E | Perpetual-Discount | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 22.02 Evaluated at bid price : 22.25 Bid-YTW : 5.55 % |
| MFC.PR.I | FixedReset Ins Non | 1.01 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.09 Bid-YTW : 7.58 % |
| PWF.PR.P | FixedReset Disc | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 13.01 Evaluated at bid price : 13.01 Bid-YTW : 5.60 % |
| BAM.PF.E | FixedReset Disc | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 15.60 Evaluated at bid price : 15.60 Bid-YTW : 6.32 % |
| TD.PF.K | FixedReset Disc | 1.24 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 20.35 Evaluated at bid price : 20.35 Bid-YTW : 5.17 % |
| IFC.PR.A | FixedReset Ins Non | 1.26 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 14.45 Bid-YTW : 9.69 % |
| SLF.PR.H | FixedReset Ins Non | 1.29 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.70 Bid-YTW : 8.82 % |
| BIP.PR.B | FixedReset Disc | 1.41 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2020-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 5.16 % |
| MFC.PR.G | FixedReset Ins Non | 1.45 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.95 Bid-YTW : 7.53 % |
| IAF.PR.G | FixedReset Ins Non | 1.54 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.10 Bid-YTW : 7.30 % |
| BIP.PR.F | FixedReset Disc | 1.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.14 % |
| RY.PR.S | FixedReset Disc | 1.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 21.19 Evaluated at bid price : 21.19 Bid-YTW : 4.76 % |
| TD.PF.B | FixedReset Disc | 1.63 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 17.48 Evaluated at bid price : 17.48 Bid-YTW : 5.25 % |
| IFC.PR.G | FixedReset Ins Non | 1.80 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.75 Bid-YTW : 7.23 % |
| TRP.PR.A | FixedReset Disc | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 13.50 Evaluated at bid price : 13.50 Bid-YTW : 6.07 % |
| TRP.PR.D | FixedReset Disc | 1.89 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 16.15 Evaluated at bid price : 16.15 Bid-YTW : 5.94 % |
| TRP.PR.C | FixedReset Disc | 1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 11.90 Evaluated at bid price : 11.90 Bid-YTW : 6.02 % |
| BAM.PR.K | Floater | 2.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 10.63 Evaluated at bid price : 10.63 Bid-YTW : 6.53 % |
| TRP.PR.B | FixedReset Disc | 2.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 11.00 Evaluated at bid price : 11.00 Bid-YTW : 5.93 % |
| SLF.PR.J | FloatingReset | 2.24 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.72 Bid-YTW : 10.10 % |
| BIP.PR.E | FixedReset Disc | 2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 5.99 % |
| BIP.PR.A | FixedReset Disc | 2.43 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 19.00 Evaluated at bid price : 19.00 Bid-YTW : 6.46 % |
| BIP.PR.D | FixedReset Disc | 2.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 22.29 Evaluated at bid price : 22.72 Bid-YTW : 5.61 % |
| MFC.PR.Q | FixedReset Ins Non | 2.55 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.34 Bid-YTW : 7.42 % |
| MFC.PR.F | FixedReset Ins Non | 2.67 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 13.45 Bid-YTW : 9.71 % |
| CU.PR.C | FixedReset Disc | 2.72 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 17.00 Evaluated at bid price : 17.00 Bid-YTW : 5.47 % |
| BAM.PR.R | FixedReset Disc | 3.05 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 14.55 Evaluated at bid price : 14.55 Bid-YTW : 6.16 % |
| TRP.PR.F | FloatingReset | 3.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 13.49 Evaluated at bid price : 13.49 Bid-YTW : 6.64 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| CM.PR.R | FixedReset Disc | 194,205 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 21.25 Evaluated at bid price : 21.53 Bid-YTW : 5.48 % |
| BMO.PR.W | FixedReset Disc | 148,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 16.35 Evaluated at bid price : 16.35 Bid-YTW : 5.51 % |
| BMO.PR.D | FixedReset Disc | 139,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 21.40 Evaluated at bid price : 21.40 Bid-YTW : 5.30 % |
| CM.PR.O | FixedReset Disc | 71,614 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 16.64 Evaluated at bid price : 16.64 Bid-YTW : 5.60 % |
| TD.PF.C | FixedReset Disc | 52,001 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 17.12 Evaluated at bid price : 17.12 Bid-YTW : 5.34 % |
| BAM.PR.K | Floater | 50,513 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-06-21 Maturity Price : 10.63 Evaluated at bid price : 10.63 Bid-YTW : 6.53 % |
| There were 37 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BIP.PR.A | FixedReset Disc | Quote: 19.00 – 19.60 Spot Rate : 0.6000 Average : 0.4556 YTW SCENARIO |
| RY.PR.Z | FixedReset Disc | Quote: 17.35 – 17.75 Spot Rate : 0.4000 Average : 0.2599 YTW SCENARIO |
| PWF.PR.A | Floater | Quote: 12.25 – 12.73 Spot Rate : 0.4800 Average : 0.3453 YTW SCENARIO |
| HSE.PR.C | FixedReset Disc | Quote: 17.81 – 18.19 Spot Rate : 0.3800 Average : 0.2548 YTW SCENARIO |
| TD.PF.C | FixedReset Disc | Quote: 17.12 – 17.47 Spot Rate : 0.3500 Average : 0.2354 YTW SCENARIO |
| EMA.PR.H | FixedReset Disc | Quote: 23.95 – 24.30 Spot Rate : 0.3500 Average : 0.2479 YTW SCENARIO |
Your no change but cap concept for capital gains and dividends is just too damn logical and pragmatic for adoption. Can you screw it up just a little so one of the main parties can adopt it?
Perhaps now with a grand and united coalition of the progressives a realistic possibility, this could be a good time to re-invigorate the capping argument. If meaningful taxes on the uber rich are a pre-condition of such a coalition, this is a good way to do it!
If meaningful taxes on the uber rich are a pre-condition of such a coalition, this is a good way to do it!
Maybe … and that would be a good thing.
But I think that in a coalition situation the junior partners will be more concerned about extracting some showpiece spending initiatives rather than making enemies or promoting good public policy.