Students

[Asher]

The entire point is that the capital gains tax introduces a substantial transaction cost for converting investments back into cash. They aren't fungible.

I don't think you have a clear picture of Canada's tax laws, which is why this conversation is so awkward. Yes, capital gains tax adds a transaction cost. But why do you not even take into account the benefits of long-term investment?

Untrue. You'd be forgoing exactly the same amount of income either way.

Very astute. I would.

What is the net effect to the family?

[Asher]

Him spending tens of thousands of dollars on tuition = no investment for him
Me not working since I've no real need to work = no additional income for me
Net result = Me getting education, having tons of free time

Him Spending it on investing = investment for him
Me working since I've need for work = additional income for me
Net result = Me getting income, education, work experience & dad getting additional investment returns

Simple?

[Kuciwalker]

I don't think you have a clear picture of Canada's tax laws, which is why this conversation is so awkward. Yes, capital gains tax adds a transaction cost. But why do you not even take into account the benefits of long-term investment?

The choice is where the money comes from - from existing investments or new ones (or uninvested cash) - and because of the capital gains tax, uninvested cash is strongly preferred.

Him spending tens of thousands of dollars on tuition = no investment for him

Since his marginal dollars are being left to you anyway, and since education spending is equivalent to investment for you, this isn't true.

[Asher]

Can't believe you're still squirming on this instead of just giving a mea culpa and moving on to something else.

[OneFootInTheGrave]

students should riot more, too few are on the streets

[Al B. Sure!]

The US system of subsidized loans is terrible too.

I still want to know why. Not making any statement either way I just want to hear what HC says.

[Egbert]

Does the US government subsidise universities at all?
What is this system of "subsidised loans"?
Just idle curiosity.

[Jon Miller]

From the New York Times:

"A recent study by the Center for Labor Market Studies at Northeastern University showed that teenage employment from 2005 to 2007 rose with household incomes that go up to $150,000 a year: 14 percent of teenagers from families earning less than $20,000 a year work, as do 26 percent of those whose families make $60,000, 32 percent of those earning $80,000 and 33 percent of those between $120,000 and $150,000. "

It goes on to say that only 28 percent of those with household income above $150,000 work.

http://www.nytimes.com/2008/12/13/nyregion/13teens.html

I take this to mean that the children of the middle class work the most, the children of those in poverty work the least, and the children of the rich and working class work a moderate amount.

JM

[MOBIUS]

Can't believe you're still squirming on this instead of just giving a mea culpa and moving on to something else.

Yeah, there's no getting away from the fact that Kuci and HC are basically odious little parasites with an inflated sense of self entitlement...

[MOBIUS]

And if you ask me, the Lib Dems bottled it.

They should have stuck to their guns with their pledge of cutting tuition fees - by cutting the number of student places to whatever ratio that the government current subsidies would allow free tuition. That would teach 'em!

[Provost Harrison]

Hang on, is Kuci arguing with Canadians about Canadian tax law? Oh he's such a tool.

[MikeH]

And if you ask me, the Lib Dems bottled it.

What, Charles' car?!

[MikeH]

What do you have to do for it then?

[MOBIUS]

Do for what?

[MikeH]

That was in reply to HC saying his tuition being paid for wasn't a free lunch.