iBankCoin
Stock advice in actual English.
Joined Sep 2, 2009
1,224 Blog Posts

Back In America

I left late Friday evening to enjoy some downhill skiing in the frosty northern lands of Canada. The scenery was beautiful, the people rather friendly, and the architecture, motivating. I always enjoy seeing cosmetically adorned brick buildings; our homes should be ornate and representative of a people who care. Nothing puts me off more than functionally driven housing. If the post-industrial world has claimed one underserving victim, it is the myriad of grand style that has been supplanted with faceless and formless buildings dotting the landscape.

What does that say? I’m so poor I just can’t take the time to cast some concrete into a more pleasant shape. I’m so destitute that constructing living spaces in anything other than cubes is a hindrance to my well-being. The old neighborhoods we drove through were splendid to look at, and full of cathedrals and churches made with the tall pride of a people replaced with a generation whose catchall is “no one can build them that way anymore.”

Oh really? “Can’t,” or “Are too lazy to try?”

That being said, I’m glad to be back in the U.S. If I have one criticism to place against Canada, it is this: your costs of living are stupid expensive.

Between dropping $1.20 per liter for gas (well over $5 a gallon for those who don’t care about the metric system) paying 20-25% more for all goods we purchased (all beer including domestics starts over $10-12 a pack. I was “overjoyed” to pay $50 a meal for Mrs. Thaler and myself, when eating out and that was for “decent” food, not great), I simply cannot fathom how you Canadians get ahead in life. Those prices would easily devour the entire budget of most ordinary citizens. You really see how high the costs are, now that the two dollars are near par with one another; the old excuse of a weak Canadian dollar is no longer valid.

Oh, I’m actually playing devil’s advocate. I know exactly how you get ahead. Don’t pretend like I don’t know that Canada has a brazen and rampant black market for labor. I’ve heard the stories from before healthcare reform, when men and women could work some paltry handful of months a year to qualify for coverage, and then quit their jobs and work under-the-table on all sorts of odds and ends for the rest of the time. And I know that remnants of that dark pool still exist. There’s nothing like tax free income to escape the burden of high costs.

It’s a shame; I’d probably visit the country more if I could at least engage in the simple enjoyment of living without constantly needing to contribute money to someone else’s welfare or benefits. It’s fairly ridiculous how much money those price disparities eat up with just the simple necessities like food and drink. This concerns me, because it looks like the Democrats put us on a similar path not long ago.

Two men should be able to exchange as freely as possible between themselves, without having to constantly feign worry for others; it’s a pretty straightforward transaction until you start chaining the planet to the participants. I’m a firm believer that a homeowner should be able to fix the roof on his house as easily as possible, without resorting to hiding in the shadows to avoid the open hands. It disgusts me to think that we could be dealing with these price levels at home in just a few short years, if a prolonged liberal majority were to ever hold office.

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22 comments

  1. jimmy_two_times

    if you were in Qubec, you should have been able to pick up beer on sale at any time. 24 Stella Artois for 21 bucks.

    agreed cost of living is high, but you also do not see the burned out areas like in Detroit, NY or LA etc.

    inclusion rate on cap gains is only 50%, while 50% taxabale at your marginal rate. no difference between long/short term gains. Also Tax Free Savings Accounts allow you to reap cap gains with no tax paid on withdrawal. only 5k per year allowed for now, but its something.

    and if you only source of income is dividends (qaulified), you can earn $100,000 and only pay $12k in tax.

    and lets not kid ourselves, the underground economy exists even with lower US costs.

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    • Mr. Cain Thaler

      Oh absolutely, people work under the table here. Our tax structure has its own chains associated with it. But I’m not paying $5+ a gallon for gas.

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      • jimmy_two_times

        Right on about the gas. one thing about Ontario is they tax the hell out of sins, including the petrol.

        Effective Mar 1, booze at our LCBO monopoly is going up across the board.

        I used to play travelling hoops for a men’s team instead of universoty ball and I clearly remember buying a case of 24 in Chicago for $5 on sale and a pound of chips for 99 cents. LOL

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    • The Equalizer

      If I could change one thing about the US tax system, it would be to remove the distinction between long-term and short-term capital gains.

      Imagine, no more BS about holding periods. No more counting days when you write calls against a long position. No worries about constructive sales resetting the holding period. And because there’s no distincting between short- and long-term gains, no more lot matching.

      That 1000-share purchase that got filled as 400 shares at $10.10, 400 shares at $10.101, and 100 shares at $10.102, and 100 shares at $10.103? Stopped out with a 1000-share sale that got filled as 500 shares at $10.00, 300 shares at $10.001, and 200 shares at $10.002?

      In Canada, it goes down like this: you bought 1000 shares at an average cost of $10100.90 and you sold ’em for $10000.70, so for a loss of $100.20.

      In the US, that trade nets out to the same $100.20 (short-term loss), but it’s recorded as three wash sales (!) and one final sale of 200 shares at some adjusted cost base that bears absolutely no resemblance to any figure of relevance.

      In Canada, the calculation is the same whether it took you four milliseconds or four days to unwind the position. In the States, God help you if you if you started selling 363 days after entering the position and you didn’t close it out until day 367.

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  2. Bravo

    Excellent observation regarding architecture. Too lazy to try under the guise of prohibitive cost is my guess.

    I cringe when new development is proposed, only for the crap that will still be standing for the next 100+ years.

    On Martin Luther King Jr. day, I find this quote most appropriate:

    “All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence.”

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  3. kedzilla

    As for paying 10-20% more for goods, the excuse used even when our dollar was 1.10 to the American was “the cost of transportation” from America, which is pure bullshit. However, the retailers know the public will pay the cost, so why drop it down? Agreed out costs, especially gasoline, is outrageous. If I was elected PM, I would set a required amount to be sold within Canada at $60 per barrel. Furthermore when the American companies refused and shut down production, I would nationalize their assets and tell them to take a hike. Yes this is probably not feasible without being assassinated by American higher ups.

    What hill did you hit, Cain?

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    • Mr. Cain Thaler

      We visited Blue Mountain; not really north at all, haha. But still a five hour trip.

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      • kedzilla

        Yeah when you listed the costs, I figured it was either Blue or Tremblant. You would’ve celebrated if you could have dinner for two and some good wine at Tremblant for under $200….

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        • Mr. Cain Thaler

          The region was pretty. I’d like to take a boat from the Detroit area to the bay.

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  4. leftcoasttrader

    As someone that has recently moved from Canada to the US, I can’t agree more. Years ago you would always fill up the tank whenever you crossed the border, but now you see a lot of people that have to cross the border for gas and food because the prices just aren’t possible to pay anymore. I’m paying 40% less for groceries down here. 40 freaking percent!

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  5. Po Pimp

    Cost of living is high in a “ski resort” type area? Who would have ever thunk it?

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    • Mr. Cain Thaler

      No, in the ski resort prices were 40%+ higher. I get that.

      I’m comparing the trip through the country side and the night we ate off resort at a nearby city.

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  6. muktukchuck

    CT – as in any situation where market forces are abrogated, “gaming” the system becomes common place. I’ve lived on both sides of the border. Loved Eastern NC, but W Cda is tough to beat. If you were a resident with experience in the Cdn system you would find methods to avoid the unpleasantries, resulting from state intervention in commercial enterprises. Some obvious benefits = no FICA; Health Care; Proximity to the USA (longest undefended border in history of mankind); school systems including the cost of college/university ; tax free (or deferred) investment vehicles = RRSP (like a 401K); TFSA ; RESP (eduction fund); and the simple matter that at -100 C the vagrants either freeze or get their asses into a shelter and off the streets.

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    • Mr. Cain Thaler

      (laughter) I love the last comment. That’s my favorite joke to throw around during winters in Detroit (although you can definitely one up me there). Never mind it’s true and actually does encourage bums to emigrate south…

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      • leftcoasttrader

        Or out west. Vancouver gets a lot of the bums that can’t handle the Canadian winters.

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  7. MX2101

    Well, the most proficient or lucky bums are in Southern California or South Florida. I was in Florida over the weekend and saw a few vagrants in Fort Lauderdale. They were down and out, but not looking too uncomfortable.

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  8. Lumberjack

    Canadians are some friendly cult type people always smiling, we all drink beer and wear plaid shirts

    Whats really fucked up is that people on welfare get “free” prescription drugs..

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  9. 10banger

    Just wait till this bullshit Canadian housing bubble busts.

    Anyways, I turn fucking livid every time I gas my car and read the taxes.

    You Americans won’t believe this next one. If your collecting CPP(Canadian Pension Plan) you only have to live in Canada for 6 months, then you can move where ever the fuck you want and collect your pension ALL YEAR. I hear countless stories of these senior fucks moving to Thailand for 6 months collecting their Government Pension. They live here in the summer then move somewhere cheap in the winter. I’m about to knock out the next senior I hear doing that.

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    • 10banger

      Man, I can hardly control my anger at all these fucking assholes gaming the system in Canada. I’ve contemplated moving to the US just because of this shit, but I’m sure it’s just the same shit different place.

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      • Mr. Cain Thaler

        Where can I pick up a dual citizenship petition? I could commute 6 months a year…

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  10. flyaway18

    oh-oh, some friends and I just booked a 4-night stay in Montreal with potentially 6 kids in tow Memorial Day weekend, better bring plenty of caaaaash.

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    • mahkbert

      Doit-il pas être 8 enfants en remorque? Je crois que les jumeaux sont intéressés par le voyage

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