Students

[Kuciwalker]

Yeah, and if a government program causes more people to get high value degrees then society will be better off. The market gives some indication of which ones are higher value.

gribbler, you are being incoherent. There are substantial costs to high-value degrees. People know about the salary gains from getting high-value degrees. Many individuals judge that the gains aren't worth the costs. By subsidizing one choice you are distorting the market and causing deadweight losses.

To justify it you have to establish a systematic pattern of suboptimal behavior by individuals (since there seems to be no market failure) and show that government intervention is definitely welfare-enhancing. I know that you do not have the data to support that conclusion.

[Asher]

Canada has an estate tax. Based on your description, the money he didn't spend on your college is likely just going to end up in your inheritance.

For such an arrogant tool, you could at least be right.

Canada has no estate tax, hasn't since 1972.

The only requirement is the people who inherit the wealth paying capital gains tax on the remnants of his investments. Just like he would've had to do if he sold the investments to pay for the tuition in the first place. Except while keeping his money in the investments, he continued to earn additional on that...well, I don't need to keep explaining the obvious to a genius of your stature.

Further still, only 50% of the capital gains are taxed, and they're taxed at the bracket of the inheritor. My dad is in the top tax bracket, I may or may not be.

The fact that you think I'm being cryptic just goes to show how clueless you are outside your little specialties...

Or it speaks more to the fact that you're still so arrogant you forget that other people are not working in the same mental context you are.

[Asher]

You are so enamored of the idea of HC as a spoiled brat that you are willing to draw ridiculous conclusions.

It's not a ridiculous conclusion. What job has he held aside from "Linux admin" at HIS HIGH SCHOOL?

[giblets]

gribbler, you are being incoherent. There are substantial costs to high-value degrees. People know about the salary gains from getting high-value degrees. Many individuals judge that the gains aren't worth the costs. By subsidizing one choice you are distorting the market and causing deadweight losses.

To justify it you have to establish a systematic pattern of suboptimal behavior by individuals (since there seems to be no market failure) and show that government intervention is definitely welfare-enhancing. I know that you do not have the data to support that conclusion.

I think some degrees offer an external benefit. For one thing, people with higher incomes pay a larger part of their income in taxes.

[Kuciwalker]

For such an arrogant tool, you could at least be right.

Canada has no estate tax, hasn't since 1972.

The only requirement is the people who inherit the wealth paying capital gains tax on the remnants of his investments.

This is at least partially incorrect, but I want to double-check before completely disputing it.

edit: being subject to capital gains tax at point of transfer is a MASSIVE reduction anyway, Asher

edit2: yes, I'm right, unless I'm grossly misreading the CRA website - you are forced to recognize and pay tax on capital gains immediately upon inheritance, which is a significant extra tax burden

[KrazyHorse]

Canada has an estate tax.

No.

[KrazyHorse]

For such an arrogant tool, you could at least be right.

Canada has no estate tax, hasn't since 1972.

The only requirement is the people who inherit the wealth paying capital gains tax on the remnants of his investments.

This is incorrect. The specifically-labeled inheritance tax was repealed, but inheritances are taxed at normal income tax rates, which is higher than the capital gains rate and is also on a different basis.

You don't know what you're talking about.

Estate tax

Since the government of Pierre Trudeau repealed Canada's inheritance tax in 1972, estates have been treated as sales (a "deemed disposition") upon death, except where the estate is inherited by a surviving spouse or common law partner. Tax owing is paid by the estate, and not by the beneficiaries. Registered Retirement Savings Plans and Registered Retirement Income Funds are wound down, and the assets distributed to beneficiaries are treated as withdrawals, i.e., they are taxed as part of the income of the estate at the normal applicable personal income tax rates with no reduction for capital gains. Non-registered capital assets are treated as having been sold, and are taxed at the applicable capital gains tax rates.[2] Interest or other income from non-registered non-capital assets that is accrued up to the date of death is taxed on the final tax return of the deceased as the normal tax rates, and is not included on the tax return of the estate.

http://en.wikipedia.org/wiki/Taxation_in_Canada#Estate_tax

Summary: capital gains are treated as capital gains, RRSPs (similar to IRAs) are distributed as ordinary income.

[Asher]

For such an arrogant tool, you could at least be right.

Canada has no estate tax, hasn't since 1972.

The only requirement is the people who inherit the wealth paying capital gains tax on the remnants of his investments.

This is at least partially incorrect, but I want to double-check before completely disputing it.

edit: being subject to capital gains tax at point of transfer is a MASSIVE reduction anyway, Asher

You are still wrong. Don't bother arguing this further.

[Kuciwalker]

It's not a ridiculous conclusion. What job has he held aside from "Linux admin" at HIS HIGH SCHOOL?

Try minimum wage at a grocery store?

[Asher]

That's just sad.

I've never worked minimum wage.

[Kuciwalker]

You don't know what you're talking about.

That's why I edited it out within less than a minute

[KrazyHorse]

It's only the capital gains which are subject to capital gains, by the way Kuci.

It's equivalent to the deceased having transferred everything into cash, paying the taxes owed on this transaction, and then being allowed to transfer it tax-free

[KrazyHorse]

That's just sad.

I've never worked minimum wage.

I have.

[Asher]

And here I thought Kuci was going to mention not taking advantage of RESPs -- he'd have been correct there...

[Kuciwalker]

It's only the capital gains which are subject to capital gains, by the way Kuci.

It's equivalent to the deceased having transferred everything into cash and then being allowed to transfer it tax-free

Yes, that's what I wrote. Transferring your assets into cash and then using that to repurchase the same securities obviously sucks.