adplus-dvertising
Connect with us

Investment

Chorus acquisition proposal talks end without deal, potential investment talks remain – Yahoo Canada Finance

Published

 on


CBC

Obstacles to voting may throw N.L. election outcome into doubt, political scientist says

A political scientist in St. John’s said Friday Newfoundland and Labrador’s election campaign — disrupted last week by a province-wide lockdown — has been riddled with irregularities and is at serious risk of a result that could be challenged in court, if not the court of public opinion. “When it is complete, we won’t know for sure if the House that we’ve elected is legitimate,” Kelly Blidook, who teaches political science at Memorial University, told the St. John’s Morning Show. Blidook said chief electoral officer Bruce Chaulk was too late in offering accommodations to people with disabilities that would allow them to vote. “The message seemed very, very broad, which was basically: if you have a problem we will try to accommodate you,” Blidook said. “The day before the deadline seems like an odd time to really have that sort of wide-open message.” Blidook said voters need more detail about these accommodations, as well as what else Elections NL is doing to adapt to an election that had been originally scheduled to end Feb. 13. The deadline to apply for a special ballot kit is Friday evening at 8 p.m. NT. Ballots need to be received by Elections NL by March 5 in order to be counted. In an interview, Blidook was sharply critical of how Chaulk has managed the election delay, including some of the answers he gave in an interview CBC published earlier this week. “Some of [Chaulk’s] answers in that, I actually think will be used in court cases afterwards, to show that the chief electoral officer was not taking people’s concerns seriously,” he said. A large part of this confusion, according to Blidook, arose from a breakdown in communication early on between Elections NL and Chief Medical Officer of Health Dr. Janice Fitzgerald. He said Chaulk appear to brush off legitimate medical concerns. “If we have people who are isolating for a period of two weeks, how could these people go to the mailbox to get their ballot and come back?” asked Blidook. “Bruce Chaulk’s comments on this in his Q&A the other day seemed to kind of diminish these people — these people should not be diminished.” Blidook said constituents have a constitutional right to vote, and the government has a duty to facilitate that right. “If they have not come up with a way to facilitate that, then they are essentially not meeting that charter right.” When it comes to options for voters, Blidook said it’s hard to know what the plan is. There’s still uncertainty about how voters with disabilities will receive or cast their ballots. “I realize that we might be talking about a very small portion of the population in terms of those who can’t use the systems in place, but I also feel like to this point, the communication has been vague,” he said. When asked if there’s a particular benchmark of voter turnout that would impact the legitimacy of the election, Blidook said there’s no clear answer. “Given that past elections have been in the ballpark of 60 per cent turnout, we should expect about 60 per cent turnout,” said Blidook, but “certainly if we hit that same number, that doesn’t mean the election is suddenly legitimate.” Ultimately, a court would have to look at the election on a district-by-district basis, he said, to determine if and where people may have been disenfranchised. If there’s a legitimate drop in turnout, however, a margin of 10 per cent may be enough of an indication to call this election into question. “I can’t say the exact number, but I think we actually need to start having this discussion,” said Blidook, “because what is quite likely to come from this election is that we will have uncertainty when it’s done.” Disabled, homeless face challenges Chaulk said he’s endeavouring to not leave anyone out. “If you identify yourself to us and let us know what disability you have that prevents you from a home vote, then we will figure out a way to let you vote,” he said. But some people with disabilities have still felt excluded from this election, and by the challenges that a shift to mail-in voting posed. “That takes away my pride, independence, integrity,” said Terry Gardner, a Corner Brook resident who lost his sight to glaucoma. He has had to rely on family in order to cast his own vote in this election. “For somebody who’s blind, and lots of people with physical disabilities … it’s non-democratic, is what it is.” Nancy Reid, who heads the St. John’s-based Coalition for Persons with Disabilities, said her daughter’s experience has been revealing. Her daughter is non-verbal and cannot write, but “she can read and mark an X on a piece of paper.” But for a mail-in ballot, more than an X is needed — and her daughter cannot fill it out on her own. Reid said her daughter’s right to vote should also come with privacy. “She loves to vote. It’s something she takes great pride in, and that’s been denied,” she said. Dan Meades, who has worked for years in St. John’s with people who are homeless, said this year’s election campaign has been filled with barriers to people who live on the margins. “It’s hard to imagine a process that’s less inclusive than this,” said Meades, provincial coordinator of the Transition House Association of Newfoundland and Labrador. Meades said many of those people lack identification and a home address where a ballot kit can be sent, much less a phone or a computer and internet service to request it. Public libraries, which provide a public service, are closed under current lockdown orders. “There’s just too many barriers this time to expect folks that are marginalized to do it,” Meades said. Read more from CBC Newfoundland and Labrador

Let’s block ads! (Why?)

300x250x1

728x90x4

Source link

Continue Reading

Investment

Taxes should not wag the tail of the investment dog, but that’s what Trudeau wants

Published

 on

Kim Moody: Ottawa is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan

The Canadian federal budget has been out for a week, which is plenty of time to absorb just how terrible it is.

300x250x1

The problems start with weak fiscal policy, excessive spending and growing public-debt charges estimated to be $54.1 billion for the upcoming year. That is more than $1 billion per week that Canadians are paying for things that have no societal benefit.

Next, the budget clearly illustrates this government’s continued weak taxation policies, two of which it apparently believes  are good for entrepreneurs. But the proposed $2-million Canadian Entrepreneurs Incentive (CEI) and $10-million capital gains exemption for transfers to an employee ownership trust (EOT) are both laughable.

Why? Well, for the CEI, virtually every entrepreneurial industry (except technology) is not eligible. If you happen to be in an industry that qualifies, the $2-million exemption comes with a long, stringent list of criteria (which will be very difficult for most entrepreneurs to qualify for) and it is phased in over a 10-year period of $200,000 per year.

For transfers to EOTs, an entrepreneur must give up complete legal and factual control to be eligible for the $10-million exemption, even though the EOT will likely pay the entrepreneur out of future profits. The commercial risk associated with such a transfer is likely too great for most entrepreneurs to accept.

Capital gains tax hike

But the budget’s highlight proposal was the capital gains inclusion rate increase to 66.7 per cent from 50 per cent for dispositions effective after June 24, 2024. The proposal includes a 50 per cent inclusion rate on the first $250,000 of annual capital gains for individuals, but not for corporations and trusts. Oh, those evil corporations and trusts.

There is a lot wrong with this proposed policy. The first is that by not putting individuals, corporations and trusts on the same taxation footing for capital gains taxation, the foundational principle of integration (the idea that the corporate and individual tax systems should be indifferent to whether an investment is held in a corporation or directly by the taxpayer) is completely thrown out the window. This is wrong.

Some economists have come out in strong favour of the proposal, mainly because of equity arguments (a buck is a buck), but such arguments ignore the real world of investing where investors look at overall risk, liquidity and the time value of money.

If capital gains are taxed at a rate approaching wage taxation rates, why would entrepreneurs and investors want to risk their capital when such investments might be illiquid for a long period of time and be highly risky?

They will seek greener pastures for their investment dollars and they already are. I’ve been fielding a tremendous number of questions from investors over the past week and I’d invite those academics and economists who support the increased inclusion rate to come live in my shoes for a day to see how the theoretical world of equity and behaviour collide. It’s not good and it certainly does nothing to help Canada’s obvious productivity challenges.

Of course, there has been the usual chatter encouraging such people to leave (“don’t let the door hit you on the way out,” some say) from those who don’t understand basic economics and taxation policy, but these cheerleaders should be careful what they wish for. The loss of successful Canadians and their investment dollars affects all of us in a very negative way.

The government messaging around this tax proposal has many people upset, including me. Specifically, it is the following paragraph in the budget documents that many supporters are parroting that is upsetting:

“Next year, 28.5 million Canadians are not expected to have any capital gains income, and 3 million are expected to earn capital gains below the $250,000 annual threshold. Only 0.13 per cent of Canadians with an average income of $1.4 million are expected to pay more personal income tax on their capital gains in any given year. As a result of this, for 99.87 per cent of Canadians, personal income taxes on capital gains will not increase.” (This is supposedly about 40,000 taxpayers.)

Bluntly, this is garbage. It outright ignores several facts.

For one thing, there are hundreds of thousands of private corporations owned and controlled by Canadian resident individuals. Those corporations will be subject to the increased capital gains inclusion rate with no $250,000 annual phase-in. Because of the way passive income is taxed in these Canadian-controlled private corporations, the increased tax load on realized capital gains will be felt by individual shareholders on the dividend distribution required to recover certain refundable corporate taxes.

Furthermore, public corporations that have capital gains will pay tax at a higher inclusion rate and this results in higher corporate tax, which means decreased amounts are available to be paid out as dividends to individual shareholders (including those held by individuals’ pensions).

The budget documents simply measured the number of corporations that reported capital gains in recent years and said it is 12.6 per cent of all corporations. That measurement is shallow and not the whole story, as described above.

Tax hit for cottages

There are also millions of Canadians who hold a second real estate property, either a cottage-type and/or rental property. Those properties will eventually be sold, with the probability that the gain will exceed the $250,000 threshold.

Upon death, an individual will often have their largest capital gains realized as a result of deemed dispositions that occur immediately prior to death. This will have the distinct possibility of capital gains that exceed $250,000.

And people who become non-residents of Canada — and that is increasing rapidly — have deemed dispositions of their assets (with some exceptions). They will face the distinct possibility that such gains will be more than $250,000.

The politics around the capital gains inclusion rate increase are pretty obvious. The government is planning for Canadian taxpayers to crystallize their inherent gains prior to the implementation date, especially corporations that will not have a $250,000 annual lower inclusion rate. For the current year, the government is projecting a $4.9-billion tax take. But next year, it dramatically drops to an estimated $1.3 billion.

This is a ridiculous way to shield the government’s tremendous spending and try to make them look like they are holding the line on their out-of-control deficits. The government is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan.

There’s an old saying that tax should not wag the tail of the investment dog, but that is exactly what the government is encouraging Canadians to do in the name of raising short-term taxation revenues. It is simply wrong.

I hope the government has some second sober thoughts about the capital gains proposal, but I’m not holding my breath.

 

728x90x4

Source link

Continue Reading

Investment

Everton search for investment to complete 777 deal – BBC.com

Published

 on

By


Getty Images
  • 2 hours ago

Everton are searching for third-party investment in order to push through a protracted takeover by 777 Partners.

The Miami-based firm agreed a deal to buy the Toffees from majority owner Farhad Moshiri in September, but are yet to gain approval from the Premier League.

On Monday, Bloomberg reported the club’s main financial adviser Deloitte has been seeking fresh funding from sports-focused investors and lenders to get 777’s deal over the line.

300x250x1

BBC Sport has been told this is “standard practice contingency planning” and the process may identify other potential lenders to 777.

Sources close to British-Iranian businessman Moshiri have told BBC Sport they remain “working on completing the deal with 777”.

It is understood there are no other parties waiting in the wings to takeover should the takeover fall through and the focus is fully on 777.

The Americans have so far loaned £180m to Everton for day-to-day operational costs, which will be turned into equity once the deal is completed, but repaying money owed to MSP Sports Capital, whose deal collapsed in August, remains a stumbling block.

777 says it can stump up the £158m that is owed to MSP Sports Capital and once that is settled, it is felt the deal should be completed soon after.

Related Topics

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Investment

Warren Buffett Predicts 'Bad Ending' for Bitcoin — Is It a Doomed Investment? – Yahoo Finance

Published

 on

By


NanoStockk / Getty Images

Currently sitting in sixth on Forbes’ Real-Time Billionaires List, Berkshire Hathaway co-founder, chairman and CEO Warren Buffett is a first-rate example of an investor who stuck to his core financial beliefs early in life to become not only a success but a once-in-a-lifetime inspiration to those who followed in his footsteps.

One of the most trusted investors for decades, the 93-year-old Buffett isn’t shy to pontificate on his investment philosophy, which is centered around value investing, buying stocks at less than their intrinsic value and holding them for the long term.

Read Next: Warren Buffett: 6 Best Pieces of Money Advice for the Middle Class
Find Out: 5 Genius Things All Wealthy People Do With Their Money

300x250x1

He’s also quite vocal on investments he deems worthless. And one of those is Bitcoin.

Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.

Buffett’s Take on Bitcoin

Over the past decade, it’s been clear that the crypto craze isn’t something Buffett wants any part of. He described Bitcoin as “probably rat poison squared” back in 2018.

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in 2018. And his stance hasn’t wavered since. According to Benzinga, Buffett believes that cryptocurrencies aren’t a viable or valuable investment.

“Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” Buffett said at the Berkshire Hathaway annual shareholder meeting in 2022.

Although the Oracle of Omaha has his misgivings about the unpredictable investment, does that mean crypto is doomed as an investment? Not necessarily.

For You: 10 Valuable Stocks That Could Be the Next Apple or Amazon

Is Buffett Wrong About Bitcoin?

Bitcoin bulls argue that while it’s not government-issued, cryptocurrency is as fungible, divisible, secure and portable as fiat currency and gold. Because they occupy a digital space, cryptocurrencies are decentralized, scarce and durable. They can last as long as they can be stored.

Crypto boosters continue to predict massive growth in the coin’s value. Earlier this year, SkyBridge Capital founder and former White House director of communications Anthony Scaramucci told reporters that Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood predicts Bitcoin will hit $1.48 million by 2030, according to Fortune.

“They really don’t understand the concept and the whole history of money,” Scaramucci said of crypto critics like Buffett on a recent episode of Jason Raznick’s “The Raz Report.” Because we place a value on “traditional” currency, it is essentially worthless compared with the transparent and trustworthy digital Bitcoin, Scaramucci said.

Currently trading around the $66,000 mark, Bitcoin is up nearly 50% in 2024. This means it’s massively outperforming most indexes this year, including the S&P 500, which is up about 6% in 2024.

Although Berkshire Hathaway has invested heavily in Bitcoin-related Brazilian fintech company Nu Holdings, which has its own cryptocurrency called Nucoin, it’s possible Buffett will never come around fully to crypto, despite its recent surge in value. It’s contrary to the reliable investment strategy that has served him very well for decades.

“The urge to participate in something where it looks like easy money is a human instinct which has been unleashed,” Buffett said. “People love the idea of getting rich quick, and I don’t blame them … It’s so human, and once unleashed you can’t put it back in the bottle.”

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Warren Buffett Predicts ‘Bad Ending’ for Bitcoin — Is It a Doomed Investment?

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending