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Federal 10% luxury tax on Models S and X
- Thread starter OILMAN
- Start date
My only point is I believe anybody considering a Model S or X purchase should watch the election closely, to factor in whether a purchase sooner (before a 10% luxury tax is implemented) is the wisest move. I believe a Trudeau majority or minority means the 10% luxury tax is a given, as that is a key pillar of his election platform. The main party who would prop up a minority (NDP) supports overall higher taxation. Hopefully I’m wrong....but let’s see....
If you're buying a $100,000+ car in Canada, my guess is you likely are going to have people who can figure out tax loop holes to save you some cash. Quite frankly, the X starts at $120,000 all-in, if you have that kind of cash, I don't think an extra $11K in taxes is going to flip you one way or another and if does, you likely shouldn't be buying a $125,000 car.
Tesla has options under $100K, the 3 and the Y, if a $10K tax bill is too much to bear.
pcons
M3 AWD+
+1 to this. I'm not hating on folks who buy a 100k+ car, just to be clear. It's just my opinion.
Another thing to consider: the question isn't whether it would affect model S and X, because ALL cars over 100k would be affected. So in reality that's what I call leveling the playing field. Ie, it's not like you would forego the X for a Land Rover to save the 10% tax. If someone moved from the X to a sub 100k car, I don't see why ICE cars wouldn't suffer the same fate. Overall, I don't think it will make a huge difference. People want what they want.
They have a luxury tax like this in BC already don't they? I think it's above 80k, so the PAWD is subject to it, but other models aren't. I wonder: when that tax came into effect did it cause a dip in sales at >80k price ranges. My guess is it didn't affect it as much as people thought it would.
Maybe they'll release a range limited version at $99,999 with the option to upgrade it later to avoid that
In BC the luxury tax on cars starts to come into effect at $55k already. I recall SR+ buyers being hit by the extra 1% because of this, and for the LR and PAWD you're looking at 3% more. I guess a federal 10% would be more like the extra 8% on vehicles 125k-150k.
Purchase price PST on vehicle
From 0.01$ to 54 999.99$ 7%
From 55 000$ to 55 999.99$ 8%
From 56 000$ to 56 999.99$ 9%
From 57 000$ to 124,999.99$ 10%
From 125 000$ to 149,999.99$ 15%
150,000 and over 20%
Or they could try to thread the needle. Satisfy the NDP (tax the "rich") and appease the Green (exempt the EV's).
sakimano
Active Member
I can afford a $50,000 tax on my model S. Does that mean it's responsible for government to levy that tax...just because I can?
What a horrible attitude.
At what point did we decide the government were responsible stewards of our capital? The government earns more than I do when I go to work and wastes an incredible amount of that money. At the recent leadership debates the left leaning parties said people in my income range need to pay 'a little more' or our 'fair share'. Under whose twisted notions am I not paying my 'fair share' when the government takes over half of every dollar I earn?
You're right about one thing...eventually people will figure out a way around paying various taxes. For me that will mean at some point changing my tax residency. I used to pay the healthcare costs in my income taxation for about 25 people. When I'm gone, who will pick up the slack?
All the lefty government did was put its hands on my purse and waste a big chunk of it somewhere else. And now it wants another bigger share of it. And I guarantee it will waste even more. I earn more because I work harder, I have already paid, am paying and will pay my fair share of taxes. I am already paying half dollar on each one I earn additionally. Look at how many rich French people fled their country just because the lefties levied more tax on them.
Tesla has options selling lower than 100K, it does not mean I want those cars lower than 100K. 3 is on the small side and Y has yet to prove itself as a viable option for me. Don't force me to take all the pains to become an Alberta resident or even a US resident.
If the EV offers battery options you might petition arguing for the base price (without battery) to be the taxable cost. The State of Wyoming did that for my 2012 MS setting the sale price at ~$50k instead of the full $85kUS that I paid. It was their idea and not mine. I got the 85kwh battery but could have got it with the 60 or even the 40.
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I doubt the cash stripped Liberal and NDP will let you do that. I calculated for the last 4 tax years, I paid 8% more on income tax each year compound. I am not earning 8% more each year, actually far from that.
8% a year or 8% overall? The top marginal tax rate for income in Ontario went from 49.53% in 2014 to 53.53% in 2018.
My tax percentages have changed less than but my income was less than $220k. My overall tax rate has varied between 21% and 23.6% and as income increased by more than a third (though I may have contributed more to my RRSP some years). Going further back my tax rate was 19% in 2011 when I was making about half as much as now.
I'm curious how your taxes went up 8% per year, were there changes to the taxation of capital gains or dividends that affected you?
I mean the total amount tax dollar I contributed to the taxman has been increasing at 8% each year since Liberal had had a majority. I am paying more tax, and getting less back. My overall tax rate, percentage wise, is over 30%. I believe tax rules changed in the unfavorable way of me and my fellow friends and colleagues all experienced the same thing. Those in the Parliament hill regard us, the so called mid class, as milk cows to satisfy their ever increasing appetite
Sounds like you are making more money, not paying higher tax rates. My taxes payable more than doubled over this period, but that was because my salary also doubled... woe is us
Again the top tax rate from 2014 to 2018 increased by just about 8% in total (49% to 53%). So even if you made infinity dollars you wouldn't be paying 8% more a year if your income did not increase since in that case you'd go from 49% tax rate to 53% tax rate.
Edit: not sure of my math but it looks like to get an 8% per year increase in taxes payable you'd need about 6-7% per year pay raise in the best case of someone making infinity dollars.
Edit2:Even if there were no changes in the tax rate that would still mean 6-7% more taxes due. So really the increase in top tax rate means your taxes go up an extra 1-2%.
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