Make a comment on this thread for your week one post. You'll need a google account to do so. These ten posts will make up 20-25% of your final mark so it is crucial that you keep up to date.
One possible topic is Toronto Real Estate. What are the issues involved here? Why are the federal and provincial governments meeting with Toronto mayor John Tory? Is it their business to do so or are they meddling with different levels they shouldn't be? Or, should it be that the federal government should be setting these policies nationwide and Toronto, Vancouver and other cities wouldn't have had this problem to begin with? What are the implications globally if we tax foreigners? How will those nations view and treat Canadians?
*Remember to back up data and figures. Include references (urls) for level 4 quality.
You can find other government/civics/citizenship topics that interest you and post that topic as well. Some ideas include immigration, taxation, legalization, U.S. / Canada relations, Trade, Trump, Treaties, etc.
Russians have flown over the cost of alaska for the past two days. on tuesday two Tu-95H (capable of carrying nuclear bombs). This is a problem for rising tensions between the united states and Russia. Last week in Moscow, Secretary of State Rex Tillerson stated U.S. and Russian relations were at a “low point” conference with Russian Foreign Minister Sergey Lavrov.
ReplyDeletehttps://www.msn.com/en-ca/news/world/russian-bombers-again-fly-near-alaska/ar-BBA3pXB?li=AAggNb9
I think this is important because events like this build suspicion, which is what fueled the cold war (if I remember history class correctly) between the same countries and if there WAS war, Canada would be at war, too.
DeleteThanks for sharing this info. I'd expand a tad: Did the U.S. do anything to aggravate Russia? Were these just standard drills/have they done them before?
DeleteWhat made them get to this "low point"?
This is very important information to be aware of. As Mr. Forsyth asked, I think you could expand on the relationship between the United States and Russia and how this could be dangerous.
DeleteTopic: Housing boom in Toronto.
ReplyDeleteThere are many different issues regarding the housing boom in Toronto, that not only impact the residents of Canada's largest city, but the ones surrounding it. These economic problems range from a lack of affordability to a lack of estate investments outside of Toronto. Nearly one quarter of GTA residents spend one third of their income on shelter. The average Toronto-household carries $409,000 dollars worth of debt, the highest in Canada.
The federal and provincial governments met with Toronto mayor John Tory, with the intent to 'hash out' solutions to this problem. Personally, I believe that the government should not be intervening in this issue, as historically the government has not been successful with solving issues. The housing market should be governed by the natural laws of supply and demand.
Finally, if there is something to be done, it should be done federally, so individual provinces and municipalities won't have to solve this issue on their own. Additionally, if there's a loophole in a federal law, it's easier to fix that than to individually fix each and every municipalities loophole. The taxation of foreigners in this context I think is justified due to the fact that the tax really only applies to those who can afford to buy multiple properties in Canada. The average immigrant, traveler, or refugee won't be impacted by this tax.
Sources:
http://www.theglobeandmail.com/real-estate/the-market/toronto-area-housing-boom-masks-economic-problems/article22526821/
http://www.cp24.com/news/tory-says-housing-meeting-with-sousa-and-morneau-not-a-photo-op-1.3372051
That last paragraph of yours is so spot-on. I want to post that second sentence all over JT's instagram.
DeleteNow, a little side advice for Univ/Coll... if you say the government historically fails, provide one example. I know, I know, teachers are epic failures at this (ironically I have no examples), but they at least lived through these historical moments so may know what they are talking about (i.e. a primary source).
I agree with you that this is an issue that the federal government should take care of. It is such a large issue that making smaller governments tackle it on their own would not be successful.
DeleteI believe the best way to pop the bubble is to introduce a nation wide foreigner tax to simultaneously stop the Toronto bubble from growing and potentially making other cities less of a prospect. It worked for Vancouver, so applying the idea to a national level could make foreigner investors look elsewhere.
ReplyDeleteWhen Vancouver introduced the foreign buyer tax "home sales volumes plunged 26 per cent" according to the business news network. So a nationwide version of this should pop the bubble.
http://www.bnn.ca/real-estate/video/full-impact-of-vancouver-foreign-buyer-tax-hits-in-october-housing-critic~944843
Your wish is your command - Kathleen Wynne put it into play. Now go find a source about today's news and comment on it.
DeleteHave any other countries done this? What's the U.S. policy on Canadians owning property down south? What about China?
Putting a tax on foreigners moving to Toronto and surrounding cities would definitely help stop this crisis from becoming even more of an issue. Hopefully this will lower house prices in Toronto.
DeleteToronto Real Estate
ReplyDeleteWhat are the issues involved here?
The politicians of Canada are anxious about the housing market skyrocketing. The focus of the foreign buyers, who are mostly chinese, shifted to the market in Vancouver. However, due to 15% tax on foreign buyers, the market was cooled. As an alternative, the Chinese buyers moved on to Toronto housing market. However, Toronto’s economy impacts nationwide economy. Due to the heaviness of the issue, the to the politicians and citizens, the issue is serious. The people are worried about the possible aftermath from the bubble. Especially because of Toronto’s size and it’s role in national economy, the issue in Toronto is vital. The issue is impacting local communities like Barrie too. Barrie is only 1 hour distance from Toronto, and Barrie has Go Train that connects the two cities. Due to the distance and location of Barrie, the price of the housing price almost rose 50%.
John Tory met with members of the federal Liberal caucus. The priority issue of the meeting was the housing market issue. John Tory said that the problem is very crucial because the affordable rental housing is lacking of supply. He stated that the issue will not be solved by local taxpayers alone. He then said that “It must be solved with the active partnership of the federal government and the provincial government.” Other than this reason, applying foreign taxes will affect national relationship with different countries. He will be having a meeting with the federal and Ontario finance ministers. The meeting between all three levels of government is arranged.
Why are the federal and provincial governments meeting with Toronto mayor John Tory?
Is it their business to do so or are they meddling with different levels they shouldn't be?
Or, should it be that the federal government should be setting these policies nationwide and Toronto, Vancouver and other cities wouldn't have had this problem to begin with?
What are the implications globally if we tax foreigners? How will those nations view and treat Canadians?
Citation:
Mr.Forsyth’s lecture on housing bubble (April 19th, 2017)
http://www.theglobeandmail.com/real-estate/toronto/canada-would-pay-the-price-if-torontos-real-estate-bubble-burst/article34639772/
http://www.citynews.ca/2017/01/12/affordable-housing-top-torys-list-federal-caucus-meeting/
http://www.cbc.ca/news/canada/toronto/mayor-john-tory-lays-out-three-priorities-heading-into-housing-meeting-1.4073003
*********Still working on it
Excellent post - this is how it's done Sun!
DeleteToronto Real Estate
DeleteThe politicians of Canada are anxious about the housing market skyrocketing. The focus of the foreign buyers, who are mostly Chinese, shifted to the market in Vancouver. However, due to 15% tax on foreign buyers, the market was cooled. As an alternative, the Chinese buyers moved on to Toronto housing market. However, Toronto’s economy impacts the nationwide economy. Due to the heaviness of the issue, the to the politicians and citizens, the issue is serious. The people are worried about the possible aftermath of the bubble. Especially because of Toronto’s size and its role in national economy, the issue in Toronto is vital. The issue is impacting local communities like Barrie too. Barrie is only 1-hour distance from Toronto, and Barrie has Go Train that connects the two cities. Due to the distance and location of Barrie, the price of the housing price almost rose 50%.
John Tory met with members of the federal Liberal caucus. The priority issue of the meeting was the housing market issue. John Tory said that the problem is very crucial because the affordable rental housing is lacking supply. He stated that the issue will not be solved by local taxpayers alone. He then said that “It must be solved with the active partnership of the federal government and the provincial government.” He will be having a meeting with the federal and Ontario finance ministers. The meeting between all three levels of the government is arranged. John Tory will have to meet and discuss with the government because applying foreign taxes will affect the national relationship with different countries too. Because of the importance of Toronto’s economy to the whole Canada and Canada’s foreign relationship, John Tory has to discuss with the government.
Now, the federal and provincial government are on the move to solve the issue together. The federal and Ontario finance ministers will be meeting every quarter with John Tory to cool down the hot real estate activity near Toronto and GTA. Not only the mayor but Ontario’s Premier Ontario Kathleen Wynne called out for new measures to cool rents and home prices to make them affordable.
Personally, I am happy that there are movements to handle the issue. I think that we need a bill imposed nationally so that the foreigners also have to pay 15% of tax when they buy properties. This will lower the cost of houses, which are rising faster than people’s paycheque. If the law is not in effect nationwide, there will be the same thing happening in different provinces of Canada.
Citation:
Mr.Forsyth’s lecture on housing bubble (April 19th, 2017)
http://www.theglobeandmail.com/real-estate/toronto/canada-would-pay-the-price-if-torontos-real-estate-bubble-burst/article34639772/
http://www.citynews.ca/2017/01/12/affordable-housing-top-torys-list-federal-caucus-meeting/
http://www.cbc.ca/news/canada/toronto/mayor-john-tory-lays-out-three-priorities-heading-into-housing-meeting-1.4073003
http://www.cbc.ca/news/canada/toronto/programs/metromorning/john-tory-housing-crisis-1.4073524
http://www.cbc.ca/news/canada/toronto/wynne-housing-market-1.4077094
As I said in my post, I personally feel that there should NOT be 'movement' or action take on the rising housing market. The market works the best when it's responsive to supply and demand.
DeleteHowever, if we ARE going to add a tax, I do agree with you that it should be done nationally. A national tax allows a 'blanket' to be applied across all of Canada. It's easier to fix a loophole in one law than it is to fix a loophole in 13 laws or more.
Yes, a national tax would be the best option if a tax was going to be placed. Leaving smaller governments up making taxes would be very difficult for them to accomplish.
DeleteWith some predictions placing the population at 11 billion by the year 2050, it's no wonder people are concerned about a lack of resources to support so many people. Many people have different opinions on the likelihood and effects of overpopulation, but everyone agrees that if the population continues to grow at an increasing rate, then many problems will arise, especially around the supply and distribution of food.
ReplyDeleteSome people believe that overpopulation could either eliminate the human race, or set its development back hundreds of years through war, disease, and a lack of supplies. However, other people believe that the same problems will balance the population growth and prevent potential population crises.
It has been shown in many other species that the population cannot grow forever. This is not only because the required resources replenish at a slower rate than they are consumed, but because higher population densities make diseases and viruses easier to spread, reducing the population to a sustainable amount or lower without killing off the entire species.
---
https://www.youtube.com/watch?v=QsBT5EQt348
http://www.conserve-energy-future.com/causes-effects-solutions-of-overpopulation.php
https://en.wikipedia.org/wiki/Overpopulation
Connect this thread to real estate bubble, inflation and stock market discussions, then drop mic
DeleteOverpopulation definitely is a scary thought to many people. With the population growing so quickly, there are many damaging side affects that will go along with that, (pollution, crowding...etc). How do you think overpopulation is impacting the housing prices, specifically in places nearby like Toronto?
DeleteThe Housing Bubble
ReplyDeleteThe housing market in toronto has gotten out of control, with the average house being about $1.5 million. The city of toronto recently had a meeting to discuss how they plan on lowering the average house project. They proposed a 16-point plan to lower housing and make it easier to live in toronto, I believe that certain parts of their plan will have great success, but that that others may fall apart. The first point, which I believe is the most essential, is that there will be a 15% Non-Resident Speculation Tax (NRST). This seems fitting, as it won’t actually impact immigrants who are coming to live in a home, but rather, will help to put a stop to foreign buyers with plans to rent out large amounts of housing.
The other points on the list are far more minor, such as building more housing, which may work, but could also backfire. Another more significant point was ‘rent control’. Currently, all units built after 1991 can have unlimited rent increases, which obviously imposes problems for the tenants. The rule will mean the annual rent increase will be limited to “Ontario's inflation-based guideline” (1.5%). This rule will help tenants to have a bit more security in knowing that they will be able to remain in their house.
I believe that Justin Trudeau should address the issue personally, and that the federal government should intervene, even if the municipal government can solve this issue, it could just as easily occur somewhere else. This type of problem should be the business of the federal government, as the same problem has occurred in vancouver, which shows that this is a repeated problem, and cannot be solved by municipalities alone. If the federal government steps in, this could solve the issue for all of Canada, and any loopholes that are found could be much more easily addressed.
Sources: http://business.financialpost.com/news/property-post/ontarios-16-point-plan-to-cool-torontos-red-hot-housing-market
http://www.cbc.ca/news/canada/toronto/kathleen-wynne-housing-market-home-prices-rent-control-1.4076283
This comment has been removed by the author.
DeleteExactly. This is an issue that needs assistance from the federal government. While municipal governments could probably think of solutions that would work for them, addressing the problem nation-wide provides solutions for everywhere in Canada.
Delete
ReplyDeleteProvincial government of Ontario met yesterday to devise a solution to the raising value of houses in the GTA (Greater Toronto Area.) Over the course of 1 year the price of houses have gone up by 46%, and the problem was getting too extensive. The government will tax all foreign home owners 15%, encouragement will be made to put expansions and upgrades on rental buildings, and rules of real estate will be later reviewed to stop the process of canadians being bought out of their houses.
https://www.google.ca/amp/www.cbc.ca/amp/1.4071284
I would agree with your idea that the problem is getting extensive. Not only the GTA(Greater Toronto Area), the housing market inflation is spreading to cities that are near Toronto and furthermore Ontario. This is proven by the fact that the housing market of Barrie, a city in an hour from Toronto, is getting heated to. The housing price almost rose by 50%. I agree that the government should impose a tax on the foreign investors to stop the housing market bubble. However, I also think that there must be a nationwide limit on the foreign investors because they will eventually move to next biggest city. As an example, the Chinese buyers moved on to Toronto from Vancouver to avoid the 15% provincial housing tax. If the government decided to tax everyone in the first place, the situation in Toronto would not have happened. Fortunately, it seems like the Ontario’s Premier Ontario Kathleen Wynne is working to create a new regulation to ease the intense heat on the housing market.
DeleteMr.Forsyth’s lecture on housing bubble (April 19th, 2017)
http://www.cbc.ca/news/canada/toronto/wynne-housing-market-1.4077094
Do you think this tax will create change?
DeleteAs Sun said, this is not just impacting Toronto, but many cities in Canada as well, especially surrounding Toronto. Also, it does make sense for there to be a nation-wide limit on the tax put on foreigners moving into Canadian cities. People would just move to a different city that had no tax or a lower tax to avoid paying it, therefore, this should be handled by the federal government so all locations in Canada have the same guidelines.
If the government is going to intervene, it would be best to do so on a national level. The driving force behind the Toronto housing market is foreign speculators that purchase houses and leave them unoccupied, thus driving up demand. If a nation-wide tax was introduced on these people who never intend to live in Canada, it would not only give them incentive to loosen their grip on the Toronto area, it would also help prevent this from happening again later on. Creating regulations on the federal level would also help prevent regional loopholes that would allow people to avoid the tax.
ReplyDeleteMany people think that the housing market will cool soon due to natural supply and demand. However, this isn’t a “natural” housing market. Because the demand is largely being driven up by an external force, building more housing and waiting patiently will not have much effect. Even if the amount of housing was to grow, the amount of houses purchased by foreign speculators would just expand to match, like air in a vacuum. And while we’re waiting for the market to cool, more and more people would be left unable to afford shelter and in debt. Even now, almost a quarter of Torontonians spend a third or more of their income on shelter, and the average Toronto household has $409,000 in debt. Young people especially are being forced out of the market by rising prices. In 2016, the average age of a first-time homebuyer was 37.
It is unlikely that people moving to Canada would be affected by this tax, because it would likely be aimed at people who never intended to live in Canada at all. If anything, it would make it easier for immigrants to enter Canada due to a more affordable housing market.
http://www.theglobeandmail.com/real-estate/the-market/toronto-area-housing-boom-masks-economic-problems/article22526821/
http://www.ctvnews.ca/business/is-toronto-s-housing-market-in-a-bubble-not-quite-analyst-says-1.3347467
https://www.thestar.com/news/queenspark/2017/04/12/wynne-wants-to-cool-frantic-greater-toronto-real-estate-market.html
Yes, this is an issue that should be taken care of at a national level if the government is going to make any changes. I agree that creating regulations would help ensure that the taxes would not be avoided.
DeleteToronto Real Estate:
ReplyDeleteAn ongoing issue with Toronto Real Estate is the increasing unaffordable house prices in Toronto. With the growing number of people moving to Toronto and surrounding cities, the competition for house purchasing has greatly increased. Prices have increased 33% since last year and it has been predicted that house prices can reach 15-25% higher than they currently are within this year. The average house in Toronto now costs around $916,567. Citizens and politicians are concerned that these numbers will continue to rise, as the trends predict.
The Federal and Provincial governments met with current Toronto mayor, John Tory, to discuss ways to improve this issue with the real estate situation. Tory’s hopes were to compare notes and ideas with the Federal and Provincial governments. The topic of taxing people from foreign countries was also brought up in these discussions. While this may benefit some people, (less competition with buying houses), foreigners looking to move to Canada would struggle to afford a house. A solution to this issue is currently being worked on.
It would have been best for the Federal government to address this issue nationwide, other than having individual cities like Toronto and Vancouver struggle with these problems. The Federal government is now involved with the Real Estate issues anyway, so not aiding in the resolve of these problems upfront was not in the government’s favour, considering how large the issue now is.
The issue in taxing foreigners is that other countries may lose respect for Canada and not feel welcomed. A tax shows that Canadians (that were born in Canada) are prioritized. Canada is generally viewed as a friendly and welcoming country; the tax could affect this status.
https://www.thestar.com/business/real_estate/2017/04/14/buyers-sellers-brace-for-an-unprecedented-spring-real-estate-season-in-toronto-region.html
http://business.financialpost.com/personal-finance/mortgages-real-estate/toronto-home-prices-may-jump-25-in-2017-with-cycle-starting-to-mirror-others-that-ended-badly-td-economics
http://www.torontosun.com/2017/04/17/tackling-tos-soaring-housing-prices
http://www.cbc.ca/news/canada/toronto/real-estate-market-housing-morneau-sousa-tory-meeting-1.4071284
http://www.citynews.ca/2017/04/21/minister-cant-say-foreign-buyer-tax-will-affect-housing-market/
https://www.thestar.com/news/queenspark/2017/04/12/wynne-wants-to-cool-frantic-greater-toronto-real-estate-market.html
The Housing Bubble in Toronto
ReplyDeleteThe Toronto housing bubble is a growing concern. In 2016, the average cost of houses went up by a massive 33%. The reason of the inflating price of homes is due to foreign land owners. Rich people from across the world buy profitable properties to store and hopefully increase the value of their money. This leaves less homes for people to buy, therefore increasing demand and causing house prices to shoot up. This leaves many homes costing far more than they usually would, and a significant number of empty residences used as little more than money storage.
An almost identical situation happened in Vancouver not long ago.
In my opinion, the government should do what they did in Vancouver, and impose a tax on people attempting to use homes as storage. Our generation will have an extremely difficult time affording homes if all of the houses end up costing more and more each year.
http://www.torontocondobubble.com/
https://www.theglobeandmail.com/opinion/wake-up-toronto-to-your-housing-crisis/article34122980
Very true. Our generation will likely struggle with affording houses. How exactly will this tax help and how long do you predict that it will take for change to be made?
Delete