Rage!!!
Okay, so, the reason for the obvious fury: https://www.theglobeandmail.com/business/article-loblaw-profit-dividend-hike/.
Loblaws’ profit last year increased by 10%; its dividend increased by 15%!
https://financialpost.com/news/retail-marketing/loblaw-hikes-dividend-as-profit-rises-almost-10
It’s absurd for Loblaws to say profit has gone up because traffic has increased when competition in the grocery store industry has been throttled. Basically, 5 companies control the Nation’s grocery sector.
Kind of a monopoly?
https://www.supermarketnews.com/retail-financial/will-canada-bring-more-grocery-competition.
The government supposedly wants to bring in more competition: (edited) that’s an attack on Canada’s three biggest grocery companies, Loblaw, Metro, and Empire, which have all reported record profits over the last year.
The Wall Street Journal said the latest inflation data in Canada shows that food prices have been 23% higher since just before the COVID-19 pandemic.
Furthermore, Canada’s Competition Bureau released a report last year that said Loblaw, Metro, and Empire controlled the grocery sector and that solutions needed to be generated to bring grocery prices in check. The report suggested more competition.
The government has been talking competition in the industry for years. It’s a topic for distraction.
The actual issue, believe it or not, is Capital Gains!!!
The media and politicos have making it seem the Capital Gains taxes issue controversial: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains.html
Please note any changes discussed in the press aren’t actually in the Federal Budget, so, not real changes: https://globalnews.ca/news/10460205/capital-gains-tax-changes-separate-bill/.
So really are distraction from what’s actually going on.
First
I have already written how I support taxing Capital Gains and how they’re not actually a big deal. Principal residences aren’t affected. INVESTORS are, though I think minimally. And, to be clear my bias, disabled People get $200—if they qualify, and have just enough money to pay for something, but not everything:https://laws-lois.justice.gc.ca/eng/acts/A-0.6/ (actual law, media pretty consistent).
Right now, INVESTORS pay….
Canada Revenue is more concerned with how much INVESTORS LOSE on their investments: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains.html#P487_50715
I think only 50% of their PROFIT, so, tax on UNEARNED INCOME, is collected. And, that matters when you consider Share Holder Value and borrowing against Shares to buy property. Shares are then sold before tax is due to use for a loss on Share for a tax deduction. Or, their profit used to balance losses on property. From where I gathered my information: https://www.canada.ca/en/revenue-agency/services/tax/individual.
It’s all BS. Especially when you realize the grocery market is never actually open for competition. And, Loblaws right, more traffic because there is nowhere else to go. Please join: https://www.reddit.com/r/canada/comments/1cg0ine/loblaws_boycott_planned_for_may_across_canada/
INVESTORS have got it easy coming and going.
Clean Slate: https://michael-hudson.com/2012/09/financial-conquest-or-clean-state/. Everyone ordinary needs a break and about Bloody time Ottawa gave Canadians one!!!