How Taxes Work for Crypto Margin Trading TokenTax

David Dayen: AOC's 70% marginal tax rate won't pay for much. We should reverse corporate and inheritance tax cuts, tax stock trades, treat capital gains as regular income, tax existing wealth, or even print more money (modern money theory).

David Dayen: AOC's 70% marginal tax rate won't pay for much. We should reverse corporate and inheritance tax cuts, tax stock trades, treat capital gains as regular income, tax existing wealth, or even print more money (modern money theory). submitted by nirslsk to LeftWithoutEdge [link] [comments]

Nightmare scenario: universal healthcare, rent control, $15 minumum wage, 90% marginal tax rate for top income earners, protectionist trade policies, worker ownership of major industry, auditing the fed.

submitted by vistandsforwaifu to shitneoliberalismsays [link] [comments]

Do you prefer Questrade or Wealthsimple?

Which one would you recommend for a new investor with around 15K to invest out of the gate?
submitted by Ageminet to CanadianInvestor [link] [comments]

Day Trading Tax

So I've been day trading for 2 months from June - August, and from what I know, any gains/profit made from day trading must be reported as business income rather than capital gains. Business income is 100% taxable, but can be be deducted by losses as well. Unfortunately during my 2 months of day trading, I've lost more than what I made, how would I go about reporting this on my 2021 Tax return? Please let me know, thank you.
submitted by Joseph18093751 to PersonalFinanceCanada [link] [comments]

RKT: The Next 10 Bagger MEME Stock 🚀

RKT: The Next 10 Bagger MEME Stock 🚀
You might want to say: "Retard, there have been at least a dozen posts about RKT already." Well, there is some itsy bitsy tiny bit of new information...

Hold on to your butts 🚀

Yes, you might have seen the stock price climb to ~$26 after IPO and fall back to $19 and not listened to this brilliant retard telling you not to sell the GODDAM stock. Maybe because you have read the "sEeKinG alPhA aNaLysT" giving it a "meh" rating.
Well, in an effort to give you another chance on those sweet tendies, Rocket announced pre-earnings numbers, before the actual earnings date of September 2. This is what it looks like:
  • Quarterly earnings are up by 125% from the previous year with quarterly revenue of $5.31 billion. On an adjusted basis revenue is up by 300% over last year. The full report is here.
  • Adjusted net income is $2.8 billion, which is an increase of $2.2 billion compared to the first quarter of 2020 and $2.6 billion compared to the second quarter of 2019. For the accountants among you, the full set of numbers are here.
  • To put numbers into perspective this is a company with $2.4 billion float according to Google.
  • The stock was up 11.22% today and trading at around $23.8 at market close.

What does this all mean?

  • This is the parent company of Quicken Loans, it is essentially a FinTec company for mortgage refinancing, etc. Some argue that it is actually a tech company. They handle pretty much everything electronically via their website and app. This is important because of COVID-19. According to online reviews, they have one of the best-streamlined and user-friendly interfaces. You can do pretty much everything regarding financing your home without having to sit in a crowded office in your facemask.
  • Because of how user-friendly their apps are, they have sweet sweet margins: "Who is going to do DD on home mortgages when you can do everything on an app. Am I right?"
  • Interest rates are extremely low due to Fed intervention and it is to remain low for a very long while. Remember the famous quote from our lord and savior JPow: "We're not thinking about raising rates, we're not even thinking about thinking about raising rates." For this reason, everyone and their mum are doing refinancing, buying homes, etc.
  • With a float of $2.4 billion, the company can have VERY significant price changes in a short time.
  • RKT is the ultimate meme ticker. "RKT to the moon 🚀" and "REKT 🔥" memes will keep us entertained for years to come while providing free advertisement for the company.
  • This is basically TurboTax of mortgages which is a multi-trillion dollar market.

FAQ for 🌈🐻

Q: But what if the interest rates go back up tomorrow?
A: It won't, as that would collapse the S&P 500 overnight. They have to keep interest rates low so that the money stays in the stock market.

Q: This sounds like the next subprime mortgage crisis. What if people start defaulting on their mortgages?
A: They are not the ones lending the money, so they don't care. They package the mortgages and hand it to someone else. They keep mortgages for only 3 weeks on average during the process, then they are off the hook.

Q: Aren't there other mortgage companies with online services?
A: Yes, but nothing this streamlined and easy to use. And they have very good brand recognition with the Rocket brand and Quicken Loans. Again, it is like TurboTax: yes there is other tax software out there, but who cares?

Q: But the stock price does not reflect the fundamentals. Didn't it crash last week and then stall?
A: Yes there was some price discovery after IPO and you would have been right up until Monday of this week. But since the pre-earnings announcement, the stock price is picking up some serious steam. Once the mainstream media catches on and price exceeds the ATH (probably tomorrow), this will go to the moon. If this does not look like a RKT platform I do not know what does:
https://preview.redd.it/lyevy8wx6bi51.png?width=1260&format=png&auto=webp&s=10da2d7c8be7d4a83c0b798c16aafaa94bacfc20

The Play

Just stop reading and load up the cart already.
submitted by Zaratar to wallstreetbets [link] [comments]

Would Biden move forward with Kamala's plan to tax stock trades?

Last July, Harris released a plan to provide “comprehensive health insurance that covers every American.” The way she planned to achieve that? By expanding Medicare.
Unlike Bernie Sanders, though, Harris did not envision achieving this goal by taxing families making under $100,000. Instead, she planned to pay for “Medicare For All” by taxing Wall Street.
Her plan called for a 0.2% tax on stock trades, a 0.1% tax on bond trades and a 0.002% tax on derivative transactions. She claimed these taxes would raise more than $2 trillion over the course of a decade. Critics of the plan argued that taxing financial transactions in this way could make it harder for Americans to build retirement savings.

.2% is a ripoff, retailers wouldnt be able to afford to trade on margin at that rate.
https://www.marketwatch.com/story/kamala-harris-on-student-loan-forgiveness-medicare-universal-basic-income-credit-scores-and-a-tax-on-trading-stocks-2020-08-12?siteid=yhoof2&yptr=yahoo
submitted by DotNetPhenom to pennystocks [link] [comments]

PRPL Important Info

Not my work but tons of valid points are being made.
My reaction to the Q2 results: a good quarter once you sift through all the noise. As I had mentioned in prior posts, beware of revenue recognition compared to the orders data. Little did we know it was a bigger impact (as mentioned on the earnings call, it appears the time between book to bill can be 2-4 weeks). What this means is that July will be a very strong month and August is continuing the momentum. On the call, the team mentioned that the company is "shipping each mattress as fast as they make them" and lead times for online orders are still 10 days despite increasing capacity. You can see this as cash increased $70MM in the quarter but operating income was only $30MM and inventory only explains $10M of the incremental benefit. Note that the company is also capping new retail locations until more capacity comes online - there is no question in their minds about sustainability as they make a big investment in production.
Why is the stock declining AH? Simple - the top line miss surprised people including me given the news released on orders (though note not a fundamental change in demand, it is timing) and it seems people don't understand non-cash expenses. First is the warrants, second is the tax asset. These do not reflect the company's ability to generate cash and profitability but are rather accounting changes. The reality is the company generated $35M of EBITDA or nearly $0.60 cents adjusted EPS in one quarter. That means the company is runrating at $2-$2.50/year in EPS and $140MM in EBITDA (assuming Q2 is reflective, even though it included one shit month with April due to COVID). $2-2.50 x 20 PE still stands -> price target is $40-50. That also correlates to a mid teens TEV/EBITDA multiple.
To summarize, revenues came in lighter than analyst expectations by about $10M; HOWEVER, EBITDA (operating cash flow) came in 2x estimates at nearly $35MM. This is what matters as the demand picture is as robust, if not more, than people expected, but just driven by the timing of orders to sales conversion. And this includes April, which was a shittier quarter. The true runrate of the quarter was probably closer to $45-$50MM.
Some other tidbits: the business model is proving more scalable than thought - gross margins improved from the low 40s to nearly 50%. That is an outrageous improvement. Will it last through 2H? Not entirely, but my assumption is that we will still see 45-48% margins through year end. No one was modeling this. Separately, SG&A % of sales came down nearly 10% - again, it will increase, but much better than thought and will provide a tailwind into YE.
Net net, Q2 was a good quarter, EBITDA much stronger than anyone anticipated, and Q3 will be incredibly strong as August is in the bag with backlog + the business maintaining DTC momentum while ramping up wholesale per the earnings CC. Those invested in shares and long term options/warrants will be rewarded. The recent short term investors in near term calls and other BS will likely lose out.
Shares will trade lower tomorrow, likely remain depressed in the $20-$23 range for a week or two and then start building back up into the $25-$30 range and $30+ as analyst coverage updates their models and price targets.
The biggest drawback of the call is that the leadership team completely sandbagged the story and made it seem unexciting (despite everything to the contrary). I know there is a balance of tempering good results with caution, though Jeff Megibow took it to a whole new level (margins will come down, advertising costs will increase, new GA facility will add cost and suck wind, etc etc). While this is true, it obfuscates the actual business improvements underway. Would strongly consider they reevaluate the communications strategy and believe they did this thinking that the reaction to the results was going to be overwhelmingly positive.
And for the love of God if any senior leadership at PRPL read these forums, you should report an Adjusted EPS / Share so the headlines know what to report. This is what is leading to the AH trading disaster - report it as "adjusted net income per share was $0.60" and then you don't have this issue.
submitted by mistaitaly420 to wallstreetbets [link] [comments]

How the TFSA works

(Updated August 9th, 2020)

Background


You may have heard about off-shore tax havens of questionable legality where wealthy people invest their money in legal "grey zones" and don't pay any tax, as featured for example, in Netflix's drama, The Laundromat.

The reality is that the Government of Canada offers 100% tax-free investing throughout your life, with unlimited withdrawals of your contributions and profits, and no limits on how much you can make tax-free. There is also nothing to report to the Canada Revenue Agency. Although Britain has a comparable program, Canada is the only country in the world that offers tax-free investing with this level of power and flexibility.

Thank you fellow Redditors for the wonderful Gold Award and Today I Learned Award!

(Unrelated but Important Note: I put a link at the bottom for my margin account explainer. Many people are interested in margin trading but don't understand the math behind margin accounts and cannot find an explanation. If you want to do margin, but don't know how, click on the link.)

As a Gen-Xer, I wrote this post with Millennials in mind, many of whom are getting interested in investing in ETFs, individual stocks, and also my personal favourite, options. Your generation is uniquely positioned to take advantage of this extremely powerful program at a relatively young age. But whether you're in your 20's or your 90's, read on!

Are TFSAs important? In 2020 Canadians have almost 1 trillion dollars saved up in their TFSAs, so if that doesn't prove that pennies add up to dollars, I don't know what does. The TFSA truly is the Great Canadian Tax Shelter.

I will periodically be checking this and adding issues as they arise, to this post. I really appreciate that people are finding this useful. As this post is now fairly complete from a basic mechanics point of view, and some questions are already answered in this post, please be advised that at this stage I cannot respond to questions that are already covered here. If I do not respond to your post, check this post as I may have added the answer to the FAQs at the bottom.

How to Invest in Stocks


A lot of people get really excited - for good reason - when they discover that the TFSA allows you to invest in stocks, tax free. I get questions about which stocks to buy.

I have made some comments about that throughout this post, however; I can't comprehensively answer that question. Having said that, though, if you're interested in picking your own stocks and want to learn how, I recommmend starting with the following videos:

The first is by Peter Lynch, a famous American investor in the 80's who wrote some well-respected books for the general public, like "One Up on Wall Street." The advice he gives is always valid, always works, and that never changes, even with 2020's technology, companies and AI:

https://www.youtube.com/watch?v=cRMpgaBv-U4&t=2256s


The second is a recording of a university lecture given by investment legend Warren Buffett, who expounds on the same principles:

https://www.youtube.com/watch?v=2MHIcabnjrA

Please note that I have no connection to whomever posted the videos.

Introduction


TFSAs were introduced in 2009 by Stephen Harper's government, to encourage Canadians to save.

The effect of the TFSA is that ordinary Canadians don't pay any income or capital gains tax on their securities investments.

Initial uptake was slow as the contribution rules take some getting used to, but over time the program became a smash hit with Canadians. There are about 20 million Canadians with TFSAs, so the uptake is about 70%- 80% (as you have to be the age of majority in your province/territory to open a TFSA).

Eligibility to Open a TFSA


You must be a Canadian resident with a valid Social Insurance Number to open a TFSA. You must be at the voting age in the province in which you reside in order to open a TFSA, however contribution room begins to accumulate from the year in which you turned 18. You do not have to file a tax return to open a TFSA. You do not need to be a Canadian citizen to open and contribute to a TFSA. No minimum balance is required to open a TFSA.

Where you Can Open a TFSA


There are hundreds of financial institutions in Canada that offer the TFSA. There is only one kind of TFSA; however, different institutions offer a different range of financial products. Here are some examples:


Insurance


Your TFSA may be covered by either CIFP or CDIC insuranceor both. Ask your bank or broker for details.

What You Can Trade and Invest In


You can trade the following:


What You Cannot Trade


You cannot trade:

Again, if it requires a margin account, it's out. You cannot buy on margin in a TFSA. Nothing stopping you from borrowing money from other sources as long as you stay within your contribution limits, but you can't trade on margin in a TFSA. You can of course trade long puts and calls which give you leverage.

Rules for Contribution Room


Starting at 18 you get a certain amount of contribution room.

According to the CRA:
You will accumulate TFSA contribution room for each year even if you do not file an Income Tax and Benefit Return or open a TFSA.
The annual TFSA dollar limit for the years 2009 to 2012 was $5,000.
The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.
The annual TFSA dollar limit for the year 2015 was $10,000.
The annual TFSA dollar limit for the years 2016 to 2018 was $5,500.
The annual TFSA dollar limit for the year 2019 is $6,000.
The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500.
Investment income earned by, and changes in the value of TFSA investments will not affect your TFSA contribution room for the current or future years.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html
If you don't use the room, it accumulates indefinitely.

Trades you make in a TFSA are truly tax free. But you cannot claim the dividend tax credit and you cannot claim losses in a TFSA against capital gains whether inside or outside of the TFSA. So do make money and don't lose money in a TFSA. You are stuck with the 15% withholding tax on U.S. dividend distributions unlike the RRSP, due to U.S. tax rules, but you do not pay any capital gains on sale of U.S. shares.

You can withdraw *both* contributions *and* capital gains, no matter how much, at any time, without penalty. The amount of the withdrawal (contributions+gains) converts into contribution room in the *next* calendar year. So if you put the withdrawn funds back in the same calendar year you take them out, that burns up your total accumulated contribution room to the extent of the amount that you re-contribute in the same calendar year.

Examples


E.g. Say you turned 18 in 2016 in Alberta where the age of majority is 18. It is now sometime in 2020. You have never contributed to a TFSA. You now have $5,500+$5,500+$5,500+$6,000+$6,000 = $28,500 of room in 2020. In 2020 you manage to put $20,000 in to your TFSA and you buy Canadian Megacorp common shares. You now have $8,500 of room remaining in 2020.

Sometime in 2021 - it doesn't matter when in 2021 - your shares go to $100K due to the success of the Canadian Megacorp. You also have $6,000 worth of room for 2021 as set by the government. You therefore have $8,500 carried over from 2020+$6,000 = $14,500 of room in 2021.

In 2021 you sell the shares and pull out the $100K. This amount is tax-free and does not even have to be reported. You can do whatever you want with it.

But: if you put it back in 2021 you will over-contribute by $100,000 - $14,500 = $85,500 and incur a penalty.

But if you wait until 2022 you will have $14,500 unused contribution room carried forward from 2021, another $6,000 for 2022, and $100,000 carried forward from the withdrawal 2021, so in 2022 you will have $14,500+$6,000+$100,000 = $120,500 of contribution room.

This means that if you choose, you can put the $100,000 back in in 2022 tax-free and still have $20,500 left over. If you do not put the money back in 2021, then in 2022 you will have $120,500+$6,000 = $126,500 of contribution room.

There is no age limit on how old you can be to contribute, no limit on how much money you can make in the TFSA, and if you do not use the room it keeps carrying forward forever.

Just remember the following formula:

This year's contribution room = (A) unused contribution room carried forward from last year + (B) contribution room provided by the government for this year + (C) total withdrawals from last year.

EXAMPLE 1:

Say in 2020 you never contributed to a TFSA but you were 18 in 2009.
You have $69,500 of unused room (see above) in 2020 which accumulated from 2009-2020.
In 2020 you contribute $50,000, leaving $19,500 contribution room unused for 2020. You buy $50,000 worth of stock. The next day, also in 2020, the stock doubles and it's worth $100,000. Also in 2020 you sell the stock and withdraw $100,000, tax-free.

You continue to trade stocks within your TFSA, and hopefully grow your TFSA in 2020, but you make no further contributions or withdrawals in 2020.


The question is, How much room will you have in 2021?
Answer: In the year 2021, the following applies:
(A) Unused contribution room carried forward from last year, 2020: $19,500
(B) Contribution room provided by government for this year, 2021: $6,000
(C) Total withdrawals from last year, 2020: $100,000

Total contribution room for 2021 = $19,500+6,000+100,000 = $125,500.

EXAMPLE 2:
Say between 2020 and 2021 you decided to buy a tax-free car (well you're still stuck with the GST/PST/HST/QST but you get the picture) so you went to the dealer and spent $25,000 of the $100,000 you withdrew in 2020. You now have a car and $75,000 still burning a hole in your pocket. Say in early 2021 you re-contribute the $75,000 you still have left over, to your TFSA. However, in mid-2021 you suddenly need $75,000 because of an emergency so you pull the $75,000 back out. But then a few weeks later, it turns out that for whatever reason you don't need it after all so you decide to put the $75,000 back into the TFSA, also in 2021. You continue to trade inside your TFSA but make no further withdrawals or contributions.

How much room will you have in 2022?
Answer: In the year 2022, the following applies:

(A) Unused contribution room carried forward from last year, 2021: $125,500 - $75,000 - $75,000 = -$24,500.

Already you have a problem. You have over-contributed in 2021. You will be assessed a penalty on the over-contribution! (penalty = 1% a month).

But if you waited until 2022 to re-contribute the $75,000 you pulled out for the emergency.....

In the year 2022, the following would apply:
(A) Unused contribution room carried forward from last year, 2021: $125,500 -$75,000 =$50,500.
(B) Contribution room provided by government for this year, 2022: $6,000
(C) Total withdrawals from last year, 2020: $75,000

Total contribution room for 2022 = $50,500 + $6,000 + $75,000 = $131,500.
...And...re-contributing that $75,000 that was left over from your 2021 emergency that didn't materialize, you still have $131,500-$75,000 = $56,500 of contribution room left in 2022.

For a more comprehensive discussion, please see the CRA info link below.

FAQs That Have Arisen in the Discussion and Other Potential Questions:



  1. Equity and ETF/ETN Options in a TFSA: can I get leverage? Yes. You can buy puts and calls in your TFSA and you only need to have the cash to pay the premium and broker commissions. Example: if XYZ is trading at $70, and you want to buy the $90 call with 6 months to expiration, and the call is trading at $2.50, you only need to have $250 in your account, per option contract, and if you are dealing with BMO IL for example you need $9.95 + $1.25/contract which is what they charge in commission. Of course, any profits on closing your position are tax-free. You only need the full value of the strike in your account if you want to exercise your option instead of selling it. Please note: this is not meant to be an options tutorial; see the Montreal Exchange's Equity Options Reference Manual if you have questions on how options work.
  2. Equity and ETF/ETN Options in a TFSA: what is ok and not ok? Long puts and calls are allowed. Covered calls are allowed, but cash-secured puts are not allowed. All other option trades are also not allowed. Basically the rule is, if the trade is not a covered call and it either requires being short an option or short the stock, you can't do it in a TFSA.
  3. Live in a province where the voting age is 19 so I can't open a TFSA until I'm 19, when does my contribution room begin? Your contribution room begins to accumulate at 18, so if you live in province where the age of majority is 19, you'll get the room carried forward from the year you turned 18.
  4. If I turn 18 on December 31, do I get the contribution room just for that day or for the whole year? The whole year.
  5. Do commissions paid on share transactions count as withdrawals? Unfortunately, no. If you contribute $2,000 cash and you buy $1,975 worth of stock and pay $25 in commission, the $25 does not count as a withdrawal. It is the same as if you lost money in the TFSA.
  6. How much room do I have? If your broker records are complete, you can do a spreadsheet. The other thing you can do is call the CRA and they will tell you.
  7. TFSATFSA direct transfer from one institution to another: this has no impact on your contributions or withdrawals as it counts as neither.
  8. More than 1 TFSA: you can have as many as you want but your total contribution room does not increase or decrease depending on how many accounts you have.
  9. Withdrawals that convert into contribution room in the next year. Do they carry forward indefinitely if not used in the next year? Answer :yes.
  10. Do I have to declare my profits, withdrawals and contributions? No. Your bank or broker interfaces directly with the CRA on this. There are no declarations to make.
  11. Risky investments - smart? In a TFSA you want always to make money, because you pay no tax, and you want never to lose money, because you cannot claim the loss against your income from your job. If in year X you have $5,000 of contribution room and put it into a TFSA and buy Canadian Speculative Corp. and due to the failure of the Canadian Speculative Corp. it goes to zero, two things happen. One, you burn up that contribution room and you have to wait until next year for the government to give you more room. Two, you can't claim the $5,000 loss against your employment income or investment income or capital gains like you could in a non-registered account. So remember Buffett's rule #1: Do not lose money. Rule #2 being don't forget the first rule. TFSA's are absolutely tailor-made for Graham-Buffett value investing or for diversified ETF or mutual fund investing, but you don't want to buy a lot of small specs because you don't get the tax loss.
  12. Moving to/from Canada/residency. You must be a resident of Canada and 18 years old with a valid SIN to open a TFSA. Consult your tax advisor on whether your circumstances make you a resident for tax purposes. Since 2009, your TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older and a resident of Canada. Note: If you move to another country, you can STILL trade your TFSA online from your other country and keep making money within the account tax-free. You can withdraw money and Canada will not tax you. But you have to get tax advice in your country as to what they do. There restrictions on contributions for non-residents. See "non residents of Canada:" https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf
  13. The U.S. withholding tax. Dividends paid by U.S.-domiciled companies are subject to a 15% U.S. withholding tax. Your broker does this automatically at the time of the dividend payment. So if your stock pays a $100 USD dividend, you only get $85 USD in your broker account and in your statement the broker will have a note saying 15% U.S. withholding tax. I do not know under what circumstances if any it is possible to get the withheld amount. Normally it is not, but consult a tax professional.
  14. The U.S. withholding tax does not apply to capital gains. So if you buy $5,000 USD worth of Apple and sell it for $7,000 USD, you get the full $2,000 USD gain automatically.
  15. Tax-Free Leverage. Leverage in the TFSA is effectively equal to your tax rate * the capital gains inclusion rate because you're not paying tax. So if you're paying 25% on average in income tax, and the capital gains contribution rate is 50%, the TFSA is like having 12.5%, no margin call leverage costing you 0% and that also doesn't magnify your losses.
  16. Margin accounts. These accounts allow you to borrow money from your broker to buy stocks. TFSAs are not margin accounts. Nothing stopping you from borrowing from other sources (such as borrowing cash against your stocks in an actual margin account, or borrowing cash against your house in a HELOC or borrowing cash against your promise to pay it back as in a personal LOC) to fund a TFSA if that is your decision, bearing in mind the risks, but a TFSA is not a margin account. Consider options if you want leverage that you can use in a TFSA, without borrowing money.
  17. Dividend Tax Credit on Canadian Companies. Remember, dividends paid into the TFSA are not eligible to be claimed for the credit, on the rationale that you already got a tax break.
  18. FX risk. The CRA allows you to contribute and withdraw foreign currency from the TFSA but the contribution/withdrawal accounting is done in CAD. So if you contribute $10,000 USD into your TFSA and withdraw $15,000 USD, and the CAD is trading at 70 cents USD when you contribute and $80 cents USD when you withdraw, the CRA will treat it as if you contributed $14,285.71 CAD and withdrew $18,75.00 CAD.
  19. OTC (over-the-counter stocks). You can only buy stocks if they are listed on an approved exchange ("approved exchange" = TSX, TSX-V, NYSE, NASDAQ and about 25 or so others). The U.S. pink sheets "over-the-counter" market is an example of a place where you can buy stocks, that is not an approved exchange, therefore you can't buy these penny stocks. I have however read that the CRA make an exception for a stock traded over the counter if it has a dual listing on an approved exchange. You should check that with a tax lawyer or accountant though.
  20. The RRSP. This is another great tax shelter. Tax shelters in Canada are either deferrals or in a few cases - such as the TFSA - outright tax breaks, The RRSP is an example of a deferral. The RRSP allows you to deduct your contributions from your income, which the TFSA does not allow. This deduction is a huge advantage if you earn a lot of money. The RRSP has tax consequences for withdrawing money whereas the TFSA does not. Withdrawals from the RRSP are taxable whereas they are obviously not in a TFSA. You probably want to start out with a TFSA and maintain and grow that all your life. It is a good idea to start contributing to an RRSP when you start working because you get the tax deduction, and then you can use the amount of the deduction to contribute to your TFSA. There are certain rules that claw back your annual contribution room into an RRSP if you contribute to a pension. See your tax advisor.
  21. Pensions. If I contribute to a pension does that claw back my TFSA contribution room or otherwise affect my TFSA in any way? Answer: No.
  22. The $10K contribution limit for 2015. This was PM Harper's pledge. In 2015 the Conservative government changed the rules to make the annual government allowance $10,000 per year forever. Note: withdrawals still converted into contribution room in the following year - that did not change. When the Liberals came into power they switched the program back for 2016 to the original Harper rules and have kept the original Harper rules since then. That is why there is the $10,000 anomaly of 2015. The original Harper rules (which, again, are in effect now) called for $500 increments to the annual government allowance as and when required to keep up with inflation, based on the BofC's Consumer Price Index (CPI). Under the new Harper rules, it would have been $10,000 flat forever. Which you prefer depends on your politics but the TFSA program is massively popular with Canadians. Assuming 1.6% annual CPI inflation then the annual contribution room will hit $10,000 in 2052 under the present rules. Note: the Bank of Canada does an excellent and informative job of explaining inflation and the CPI at their website.
  23. Losses in a TFSA - you cannot claim a loss in a TFSA against income. So in a TFSA you always want to make money and never want to lose money. A few ppl here have asked if you are losing money on your position in a TFSA can you transfer it in-kind to a cash account and claim the loss. I would expect no as I cannot see how in view of the fact that TFSA losses can't be claimed, that the adjusted cost base would somehow be the cost paid in the TFSA. But I'm not a tax lawyeaccountant. You should consult a tax professional.
  24. Transfers in-kind to the TFSA and the the superficial loss rule. You can transfer securities (shares etc.) "in-kind," meaning, directly, from an unregistered account to the TFSA. If you do that, the CRA considers that you "disposed" of, meaning, equivalent to having sold, the shares in the unregistered account and then re-purchased them at the same price in the TFSA. The CRA considers that you did this even though the broker transfers the shares directly in the the TFSA. The superficial loss rule, which means that you cannot claim a loss for a security re-purchased within 30 days of sale, applies. So if you buy something for $20 in your unregistered account, and it's trading for $25 when you transfer it in-kind into the TFSA, then you have a deemed disposition with a capital gain of $5. But it doesn't work the other way around due to the superficial loss rule. If you buy it for $20 in the unregistered account, and it's trading at $15 when you transfer it in-kind into the TFSA, the superficial loss rule prevents you from claiming the loss because it is treated as having been sold in the unregistered account and immediately bought back in the TFSA.
  25. Day trading/swing trading. It is possible for the CRA to try to tax your TFSA on the basis of "advantage." The one reported decision I'm aware of (emphasis on I'm aware of) is from B.C. where a woman was doing "swap transactions" in her TFSA which were not explicitly disallowed but the court rules that they were an "advantage" in certain years and liable to taxation. Swaps were subsequently banned. I'm not sure what a swap is exactly but it's not that someone who is simply making contributions according to the above rules would run afoul of. The CRA from what I understand doesn't care how much money you make in the TFSA, they care how you made it. So if you're logged on to your broker 40 hours a week and trading all day every day they might take the position that you found a way to work a job 40 hours a week and not pay any tax on the money you make, which they would argue is an "advantage," although there are arguments against that. This is not legal advice, just information.
  26. The U.S. Roth IRA. This is a U.S. retirement savings tax shelter that is superficially similar to the TFSA but it has a number of limitations, including lack of cumulative contribution room, no ability for withdrawals to convert into contribution room in the following year, complex rules on who is eligible to contribute, limits on how much you can invest based on your income, income cutoffs on whether you can even use the Roth IRA at all, age limits that govern when and to what extent you can use it, and strict restrictions on reasons to withdraw funds prior to retirement (withdrawals prior to retirement can only be used to pay for private medical insurance, unpaid medical bills, adoption/childbirth expenses, certain educational expenses). The TFSA is totally unlike the Roth IRA in that it has none of these restrictions, therefore, the Roth IRA is not in any reasonable sense a valid comparison. The TFSA was modeled after the U.K. Investment Savings Account, which is the only comparable program to the TFSA.
  27. The UK Investment Savings Account. This is what the TFSA was based off of. Main difference is that the UK uses a 20,000 pound annual contribution allowance, use-it-or-lose-it. There are several different flavours of ISA, and some do have a limited recontribution feature but not to the extent of the TFSA.
  28. Is it smart to overcontribute to buy a really hot stock and just pay the 1% a month overcontribution penalty? If the CRA believes you made the overcontribution deliberately the penalty is 100% of the gains on the overcontribution, meaning, you can keep the overcontribution, or the loss, but the CRA takes the profit.
  29. Speculative stocks-- are they ok? There is no such thing as a "speculative stock." That term is not used by the CRA. Either the stock trades on an approved exchange or it doesn't. So if a really blue chip stock, the most stable company in the world, trades on an exchange that is not approved, you can't buy it in a TFSA. If a really speculative gold mining stock in Busang, Indonesia that has gone through the roof due to reports of enormous amounts of gold, but their geologist somehow just mysteriously fell out of a helicopter into the jungle and maybe there's no gold there at all, but it trades on an approved exchange, it is fine to buy it in a TFSA. Of course the risk of whether it turns out to be a good investment or not, is on you.
Remember, you're working for your money anyway, so if you can get free money from the government -- you should take it! Follow the rules because Canadians have ended up with a tax bill for not understanding the TFSA rules.
Appreciate the feedback everyone. Glad this basic post has been useful for many. The CRA does a good job of explaining TFSAs in detail at https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4466/rc4466-19e.pdf

Unrelated but of Interest: The Margin Account

Note: if you are interested in how margin accounts work, I refer you to my post on margin accounts, where I use a straightforward explanation of the math behind margin accounts to try and give readers the confidence that they understand this powerful leveraging tool.

How Margin Loans Work - a Primer

submitted by KhingoBhingo to CanadianInvestor [link] [comments]

Day trading US stocks / options as a Canadian

as Canadians how does this work? I only trade on the NYSE for the most part US equities, is there extra tax involved for us doing this? I remember reading a thread a while ago that touched on this but can't find it from searching.
and if I'm day trading is it still better to be doing this in my TFSA if there is room vs a margin / cash account? what do you all prefer?
submitted by vend0 to PersonalFinanceCanada [link] [comments]

Taxes question!

Hi guys, I’m pretty new to this but I made a lot on MVIS and now I’m 550 shares deep in KTOV.
I love the conversation and camaraderie here, and I want to start being relatively serious about this.
With that said, a lot of us probably aren’t too sure about how the taxes work specifically. I know you have to pay taxes on profits, but with how much buying and selling that seems to go on it seems like a LOT. Is that rly how it is?
Thanks so much!
Edit: seems like a lot of us don’t fully understand what’s going on... maybe someone who 100% knows what they’re doing should make a post for the side bar so we don’t get fucked next tax season! :)
submitted by Westykins to pennystocks [link] [comments]

What has Trump actually done? I've done some research...

A little about myself: I have always been a right-leaning financially conservative liberal. Meaning I'm all for newer technologies. I want solar energy, electric cars, auto-driving technologies (Love Musk). I do care about our environment. I do believe LGBT relationships/marriage is awesome. I'm all for Black people having their fair style of policing as well. I hate Nazis, hate Communists, hate racism, sexism, abuse, etc. I hate hate. I love LOVE! I want our government to be LESS controlling and want less taxes. I do NOT believe we should be handing out welfare checks unless IF needed (you just lost a job, sure). If you are sitting on welfare for 10 years....that becomes a problem. I look at BOTH SIDES. I've signed up for newsletters/emails/facebook/twitter groups from both sides. However I've seen that the left has become a socialist groupthink mindset, for example omitting the word God in a few speeches....It's not a BIG deal but small unnoticed details may lead to big overhauls. The censorships of channels, the media attacking conservatives, people getting fired for just having a different political opinion...are you kidding me?? The media turning a blind eye to destruction yet talk about Coronavirus numbers and criminals that are resisting arrest get shot as the cop's fault...however we do need more police training. Cops are aggressive here (I do agree with my liberal friends on that). The double standard: letting people protest for BLM but when the Conservatives tried to protest to go back to work, at the beginning in March/April, they were at fault. Or how CA Gov Newsom stated "You're allowed to protest, but not allowed to have social gatherings"....isn't a protest a type of social gathering.
I don't like to be biased, but holy crap how much I've found what Trump has done for the past 3.5 years is insane!! My point is I look at both sides for politics. Anyways, I decided to do a full day's work with the help of some people to compile a list:
  1. Trump recently signed 3 bills to benefit Native people. One gives compensation to the Spokane tribe for loss of their lands in the mid-1900s, one funds Native language programs, and the third gives federal recognition to the Little Shell Tribe of Chippewa Indians in Montana.
  2. Trump finalized the creation of Space Force as our 6th Military branch.
  3. Trump signed a law to make cruelty to animals a federal felony so that animal abusers face tougher consequences.
  4. Violent crime has fallen every year he’s been in office after rising during the 2 years before he was elected.
  5. Trump signed a bill making CBD and Hemp legal.
  6. Trump’s EPA gave $100 million to fix the water infrastructure problem in Flint, Michigan.
  7. Under Trump’s leadership, in 2018 the U.S. surpassed Russia and Saudi Arabia to become the world’s largest producer of crude oil.
  8. Trump signed a law ending the gag orders on Pharmacists that prevented them from sharing money-saving information.
  9. Trump signed the “Allow States and Victims to Fight Online Sex Trafficking Act” (FOSTA), which includes the “Stop Enabling Sex Traffickers Act” (SESTA) which both give law enforcement and victims new tools to fight sex trafficking.
  10. Trump signed a bill to require airports to provide spaces for breastfeeding Moms.
  11. The 25% lowest-paid Americans enjoyed a 4.5% income boost in November 2019, which outpaces a 2.9% gain in earnings for the country's highest-paid workers.
  12. Low-wage workers are benefiting from higher minimum wages and from corporations that are increasing entry-level pay.
  13. Trump signed the biggest wilderness protection & conservation bill in a decade and designated 375,000 acres as protected land.
  14. Trump signed the Save our Seas Act which funds $10 million per year to clean tons of plastic & garbage from the ocean.
  15. He signed a bill this year allowing some drug imports from Canada so that prescription prices would go down.
  16. Trump signed an executive order this year that forces all healthcare providers to disclose the cost of their services so that Americans can comparison shop and know how much less providers charge insurance companies.
  17. When signing that bill he said no American should be blindsided by bills for medical services they never agreed to in advance.
  18. Hospitals will now be required to post their standard charges for services, which include the discounted price a hospital is willing to accept.
  19. In the eight years prior to President Trump’s inauguration, prescription drug prices increased by an average of 3.6% per year. Under Trump, drug prices have seen year-over-year declines in nine of the last ten months, with a 1.1% drop as of the most recent month.
  20. He created a White House VA Hotline to help veterans and principally staffed it with veterans and direct family members of veterans.
  21. VA employees are being held accountable for poor performance, with more than 4,000 VA employees removed, demoted, and suspended so far.
  22. Issued an executive order requiring the Secretaries of Defense, Homeland Security, and Veterans Affairs to submit a joint plan to provide veterans access to access to mental health treatment as they transition to civilian life.
  23. Because of a bill signed and championed by Trump, In 2020, most federal employees will see their pay increase by an average of 3.1% — the largest raise in more than 10 years.
  24. Trump signed into a law up to 12 weeks of paid parental leave for millions of federal workers.
  25. Trump administration will provide HIV prevention drugs for free to 200,000 uninsured patients per year for 11 years.
  26. All-time record sales during the 2019 holidays.
  27. Trump signed an order allowing small businesses to group together when buying insurance to get a better price
  28. President Trump signed the Preventing Maternal Deaths Act that provides funding for states to develop maternal mortality reviews to better understand maternal complications and identify solutions & largely focuses on reducing the higher mortality rates for Black Americans.
  29. In 2018, President Trump signed the groundbreaking First Step Act, a criminal justice bill which enacted reforms that make our justice system fairer and help former inmates successfully return to society.
  30. The First Step Act’s reforms addressed inequities in sentencing laws that disproportionately harmed Black Americans and reformed mandatory minimums that created unfair outcomes.
  31. The First Step Act expanded judicial discretion in sentencing of non-violent crimes.
  32. Over 90% of those benefitting from the retroactive sentencing reductions in the First Step Act are Black Americans.
  33. The First Step Act provides rehabilitative programs to inmates, helping them successfully rejoin society and not return to crime.
  34. Trump increased funding for Historically Black Colleges and Universities (HBCUs) by more than 14%.
  35. Trump signed legislation forgiving Hurricane Katrina debt that threatened HBCUs.
  36. New single-family home sales are up 31.6% in October 2019 compared to just one year ago.
  37. Made HBCUs a priority by creating the position of executive director of the White House Initiative on HBCUs.
  38. Trump received the Bipartisan Justice Award at a historically black college for his criminal justice reform accomplishments.
  39. The poverty rate fell to a 17-year low of 11.8% under the Trump administration as a result of a jobs-rich environment.
  40. Poverty rates for African-Americans and Hispanic-Americans have reached their lowest levels since the U.S. began collecting such data.
  41. President Trump signed a bill that creates five national monuments, expands several national parks, adds 1.3 million acres of wilderness, and permanently reauthorizes the Land and Water Conservation Fund.
  42. Trump’s USDA committed $124 Million to rebuild rural water infrastructure.
  43. Consumer confidence & small business confidence is at an all-time high.
  44. More than 7 million jobs created since election.
  45. More Americans are now employed than ever recorded before in our history.
  46. More than 400,000 manufacturing jobs created since his election.
  47. Trump appointed 5 openly gay ambassadors.
  48. Trump ordered Ric Grenell, his openly gay ambassador to Germany, to lead a global initiative to decriminalize homosexuality across the globe.
  49. Through Trump’s Anti-Trafficking Coordination Team (ACTeam) initiative, Federal law enforcement more than doubled convictions of human traffickers and increased the number of defendants charged by 75% in ACTeam districts.
  50. In 2018, the Department of Justice (DOJ) dismantled an organization that was the internet’s leading source of prostitution-related advertisements resulting in sex trafficking.
  51. Trump’s OMB published new anti-trafficking guidance for government procurement officials to more effectively combat human trafficking.
  52. Trump’s Immigration and Customs Enforcement’s Homeland Security Investigations arrested 1,588 criminals associated with Human Trafficking.
  53. Trump’s Department of Health and Human Services provided funding to support the National Human Trafficking Hotline to identify perpetrators and give victims the help they need.
  54. The hotline identified 16,862 potential human trafficking cases.
  55. Trump’s DOJ provided grants to organizations that support human trafficking victims – serving nearly 9,000 cases from July 1, 2017, to June 30, 2018.
  56. The Department of Homeland Security has hired more victim assistance specialists, helping victims get resources and support.
  57. President Trump has called on Congress to pass school choice legislation so that no child is trapped in a failing school because of his or her zip code.
  58. The President signed funding legislation in September 2018 that increased funding for school choice by $42 million.
  59. The tax cuts signed into law by President Trump promote school choice by allowing families to use 529 college savings plans for elementary and secondary education.
  60. Under his leadership ISIS has lost most of their territory and been largely dismantled.
  61. ISIS leader Abu Bakr Al-Baghdadi was killed.
  62. Signed the first Perkins CTE reauthorization since 2006, authorizing more than $1 billion for states each year to fund vocational and career education programs.
  63. Executive order expanding apprenticeship opportunities for students and workers.
  64. Trump issued an Executive Order prohibiting the U.S. government from discriminating against Christians or punishing expressions of faith.
  65. Signed an executive order that allows the government to withhold money from college campuses deemed to be anti-Semitic and who fail to combat anti-Semitism.
  66. President Trump ordered a halt to U.S. tax money going to international organizations that fund or perform abortions.
  67. Trump imposed sanctions on the socialists in Venezuela who have killed their citizens.
  68. Finalized new trade agreement with South Korea.
  69. Made a deal with the European Union to increase U.S. energy exports to Europe.
  70. Withdrew the U.S. from the job killing TPP deal.
  71. Secured $250 billion in new trade and investment deals in China and $12 billion in Vietnam.
  72. Okay’ d up to $12 billion in aid for farmers affected by unfair trade retaliation.
  73. Has had over a dozen US hostages freed, including those Obama could not get freed.
  74. Trump signed the Music Modernization Act, the biggest change to copyright law in decades.
  75. Trump secured Billions that will fund the building of a wall at our southern border.
  76. The Trump Administration is promoting second chance hiring to give former inmates the opportunity to live crime-free lives and find meaningful employment.
  77. Trump’s DOJ and the Board Of Prisons launched a new “Ready to Work Initiative” to help connect employers directly with former prisoners.
  78. President Trump’s historic tax cut legislation included new Opportunity Zone Incentives to promote investment in low-income communities across the country.
  79. 8,764 communities across the country have been designated as Opportunity Zones.
  80. Opportunity Zones are expected to spur $100 billion in long-term private capital investment in economically distressed communities across the country.
  81. Trump directed the Education Secretary to end Common Core.
  82. Trump signed the 9/11 Victims Compensation Fund into law.
  83. Trump signed measure funding prevention programs for Veteran suicide.
  84. Companies have brought back over a TRILLION dollars from overseas because of the TCJA bill that Trump signed.
  85. Manufacturing jobs are growing at the fastest rate in more than 30 years.
  86. Stock Market has reached record highs.
  87. Median household income has hit highest level ever recorded.
  88. African-American unemployment is at an all-time low.(was until Covid bullshit)
  89. Hispanic-American unemployment is at an all-time low.
  90. Asian-American unemployment is at an all-time low.
  91. Women’s unemployment rate is at a 65-year low.
  92. Youth unemployment is at a 50-year low.
  93. We have the lowest unemployment rate ever recorded.
  94. The Pledge to America’s Workers has resulted in employers committing to train more than 4 million Americans.
  95. 95 percent of U.S. manufacturers are optimistic about the future— the highest ever.
  96. As a result of the Republican tax bill, small businesses will have the lowest top marginal tax rate in more than 80 years.
  97. Record number of regulations eliminated that hurt small businesses.
  98. Signed welfare reform requiring able-bodied adults who don’t have children to work or look for work if they’re on welfare.
  99. Under Trump, the FDA approved more affordable generic drugs than ever before in history.
  100. Reformed Medicare program to stop hospitals from overcharging low-income seniors on their drugs—saving seniors 100’s of millions of $$$ this year alone.
  101. Signed Right-To-Try legislation allowing terminally ill patients to try experimental treatment that wasn’t allowed before.
  102. Secured $6 billion in new funding to fight the opioid epidemic.
  103. Signed VA Choice Act and VA Accountability Act, expanded VA telehealth services, walk-in-clinics, and same-day urgent primary and mental health care.
  104. U.S. oil production recently reached all-time high so we are less dependent on oil from the Middle East.
  105. The U.S. is a net natural gas exporter for the first time since 1957.
  106. NATO allies increased their defense spending because of his pressure campaign.
  107. Withdrew the United States from the job-killing Paris Climate Accord in 2017 and that same year the U.S. still led the world by having the largest reduction in Carbon emissions.
  108. Has his circuit court judge nominees being confirmed faster than any other new administration.
  109. Had his Supreme Court Justice’s Neil Gorsuch and Brett Kavanaugh confirmed.
  110. Moved U.S. Embassy in Israel to Jerusalem.
  111. Agreed to a new trade deal with Mexico & Canada that will increase jobs here and $$$ coming in.
  112. Reached a breakthrough agreement with the E.U. to increase U.S. exports.
  113. Imposed tariffs on China in response to China’s forced technology transfer, intellectual property theft, and their chronically abusive trade practices, has agreed to a Part One trade deal with China.
  114. Signed legislation to improve the National Suicide Hotline.
  115. Signed the most comprehensive childhood cancer legislation ever into law, which will advance childhood cancer research and improve treatments.
  116. The Tax Cuts and Jobs Act signed into law by Trump doubled the maximum amount of the child tax credit available to parents and lifted the income limits so more people could claim it.
  117. It also created a new tax credit for other dependents.
  118. In 2018, President Trump signed into law a $2.4 billion funding increase for the Child Care and Development Fund, providing a total of $8.1 billion to States to fund child care for low-income families.
  119. The Child and Dependent Care Tax Credit (CDCTC) signed into law by Trump provides a tax credit equal to 20-35% of child care expenses, $3,000 per child & $6,000 per family + Flexible Spending Accounts (FSAs) allow you to set aside up to $5,000 in pre-tax $ to use for child care.
  120. In 2019 President Donald Trump signed the Autism Collaboration, Accountability, Research, Education and Support Act (CARES) into law which allocates $1.8 billion in funding over the next five years to help people with autism spectrum disorder and to help their families.
  121. In 2019 President Trump signed into law two funding packages providing nearly $19 million in new funding for Lupus specific research and education programs, as well an additional $41.7 billion in funding for the National Institutes of Health (NIH), the most Lupus funding EVER.
  122. Another upcoming accomplishment to add: In the next week or two Trump will be signing the first major anti-robocall law in decades called the TRACED Act (Telephone Robocall Abuse Criminal Enforcement and Deterrence.) Once it’s the law, the TRACED Act will extend the period of time the FCC has to catch & punish those who intentionally break telemarketing restrictions. The bill also requires voice service providers to develop a framework to verify calls are legitimate before they reach your phone.
  123. Israel-UAE peace. More Muslim countries (Countries such as Oman, Morocco, Sudan, Lebanon) said they may follow. Last time Israel and a Muslim country normalized ties was 26 years ago.
  124. US stock market continually hits all-time record highs.
Note: I would like to also add that this list will obviously be very similar to other lists if not the same, since these are facts and not really opinions.
I may have missed some stuff or duplicated a few things. Sorry about that. Please let me know if you have anything to add. Thanks for reading!
submitted by Jules0328 to trump [link] [comments]

Update for this week #3

Update for this week #3
Closed all my positions around 3pm and went into all cash for this weekend. Just want to update yall on how my portfolio closed. Will jump back in the market next week possibly; Powell has to not be a little bitch though.
https://preview.redd.it/4yzywg0jpqj41.png?width=1125&format=png&auto=webp&s=63e150d0861bbbb96bb009166554757f14c2e884
submitted by FalseInfo193 to wallstreetbets [link] [comments]

On UP-C IPO, Reverse Merger and TRA : PRPL, PBF, GNW, CCC

On UP-C IPO, Reverse Merger and TRA : PRPL, PBF, GNW, CCC
Disclaimer : I'm not a tax attorney or CPA, I trade from my mom's basement and my day job is handing out flyers while wearing a hotdog costume.
Previous Post https://www.reddit.com/wallstreetbets/comments/ia18vv/prpl_lousyand_kind_of_shady_tax_receivable/
Right since wsb like small caps now, let's take a moment to learn about public companies with Umbrella Partnership C Corporation (UP-C) IPO structure. This won't actually give you any trading edge whatsoever, but will help you to lose money more slowly or flatten the loss porn curve shall we say. PRPL went public by a reverse merger with a shell company but ended up having pretty much the same corporate structure as a typical UP-C IPO.
We will compare last week favourite meme stock PRPL with other small caps PLC that also have UP-C structure. I couldn't do it with sector peers because none of TPX, SNBR and CSPR have it.
TRA and UP-C started in early 2000s have been gaining popularity since.

https://preview.redd.it/wdvyi08slkh51.png?width=696&format=png&auto=webp&s=401a90effe15f988b826f46f67ee88e9cb8b540d
Despite it's name, Tax Receivable Agreement (TRA) functions mostly as a way for pre-IPO owners to siphon cash from public companies. There are plenty of other ways for a public company to get step up basis on tax without TRA, it's just the only one that siphon cash back to the pre-IPO owners. It has always been somewhat controversial and challenged many times, several legislation was introduced but on all occasions congress chose not to pass it.
Now a UP-C IPO is when the income generating company is actually a LLC or partnership. in PRPL case this is Purple LLC. It's basically a clever way for the pre-IPO shareholders/partners to retain pass trough treatment of income and to avoid double taxation (corporate and shareholder level). Here's a small diagram of what it looks like

https://preview.redd.it/upzadeixlkh51.png?width=996&format=png&auto=webp&s=c2b72c62746cb77aaf1e673d5476c4f5c6905699
This UP-C structure have added inherent risk for public shareholders such as
  1. Dividends and assets
The public company have no material assets besides ownership of common units in the partnership, thus the ability to generate revenues and pay dividends will depend on the partnership results and distributions received.
  1. Control
The original partners may have majority voting power in the partnership after IPO, this is not the case for PRPL but this relates to PRPL income statement, where they state the income due to non controlling interest in EPS calculation
  1. Tax Receivable Agreement (TRA)
Which we are about to discuss

For PRPL, Purple LLC would be the original partnership and PubCo would be Purple Innovation PLC. Also similar is the class A and Class B stocks. Class B which are retained by the original partners exchangeable to Class A stock. When they actually exchange/sell the class B stock into Class A, on a typical UP-C this will trigger a step up basis under TRA(Tax Receivable Agreement).

https://preview.redd.it/1vy252zylkh51.png?width=544&format=png&auto=webp&s=b1e310c2ae1d16d473bcbe5bbc224420b6ec7fd1
So when the partners of the partnership sell, they not only get the proceeds but also a amortizable tax deductions from goodwill. Example of a simplified case; if the pre-IPO value is 10$ and current stock price is 30, the basis step up would be 20$ x amount of shares sold booked as liability in the public company. Say Partner X exchange and sells 1 million of class B stock in the market, besides getting 30 MM USD, he will also get a certain percentage of the step up basis (usually 80%) or about 20 MM USD * 0.8 = 16 MM USD. This 16 MM USD is booked as TRA liability in the public company. Payable by cash to the partner when that tax benefit is realized, on the basis of with/without calculation. Some TRAs may even include the Net Operating Loss (NOLs) and other tax assets in the partnership on stock sale. A typical TRA sharing percentage is about 80% for the partner and 20% for the public company with a duration of 10-15 years. TRA is not specifically tied to stock ownership, for example in PRPL, innoHold may sell all their stake when PRPL stock reaches an all time high. Besides the sales proceeds they would then continue to receive cash for realized stock benefit from the step up for 10-15 years after they ceased to be stock holders.
Furthermore the way this is recorded in the balance sheet may use a "more likely then not" threshold so it won't actually appear until the company starts making a taxable profit. But they usually have a little note in the income tax section regarding it.
FROM PRPL 10-Q Q1 in notes on financial statements (income taxes)
Early Warning of Possible Valuation Allowance Reversal in Future Periods
The Company recorded a valuation allowance against all of the deferred tax assets as of March 31, 2020 and December 31, 2019. The Company intends to continue maintaining a full valuation allowance on the deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, given the current earnings and anticipated future earnings, the Company believes there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow the Company to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. In addition, the full potential future TRA Liability will be required to be recognized. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve.
FROM PRPL 10-Q Q2 in notes on financial statements (income taxes)
For the period ended June 30, 2020, and in assessing the realizability of deferred tax assets, management determined that it is now more likely than not that its net deferred tax assets will be realized and that a full valuation allowance for its deferred tax assets is no longer appropriate. As of the period ended June 30, 2020, the Company is no longer in a three-year cumulative loss position. As a result of the removal of this negative evidence and other items of positive evidence, the Company has determined that the deferred tax assets are now more likely than not to be realized.
Due to the release of the Company's valuation allowance on the deferred tax assets to which the Tax Receivable Agreement liability relates, only $78.7 of the $81.5 million has been recorded to date ($0.5 million in 2019 and an incremental $78.2 million through June 30, 2020). Of the total liability recorded during 2020, $45.3 million relates to current year exchanges and was recorded as an adjustment to equity and $32.9 was recorded to expense in order to reestablish the TRA related to prior year exchanges. The additional $2.8 million is expected to be recorded in the third and fourth quarters of the year ending December 31, 2020.
Great now that the company have started making money, time to surprise public stock holders with instant liability.
PRPL Balance sheet Q2
Another cool feature of TRA is the Indemnification/clawback obligations.
No assurance can be given that the IRS will agree with the allocation of value among our assets or that sufficient subsequent payments under the tax receivable agreement will be available to offset prior payments for disallowed benefits. As a result, in certain circumstances, payments could be made under the tax receivable agreement in excess of the benefit that we actually realize in respect of the increases in tax basis resulting from our purchases or exchanges of LLC Units and certain other tax benefits related to our entering into the tax receivable agreement
And even more wicked
Some companies pay interest on their TRA liability, even before the tax benefit is realized
To top it off on a few TRAs spotted in the wild
Furthermore, payments under the tax receivable agreement will give rise to additional tax benefits and therefore additional payments under the tax receivable agreement itself
Yep, paying the TRA will lead to another tax benefit attributed to the TRA leading to an increase in the TRA liability. It's like a perpetual motion machine.
Besides PRPL, The public markets have a history of underestimating and not fully understanding TRA impact
Let's take a look at PBF Energy TRA liability,
pre IPO it was estimated to be only about 96.8 MM USD
https://preview.redd.it/yttj5bg7mkh51.png?width=802&format=png&auto=webp&s=bdb041cf455bf0e74daf55ec2fef7ed42b97703d
The drop you see in 2017 was due to the TCJA legislation enacted reducing corporate tax rate. Because of rona PBF market cap has fallen off a cliff since then, but you get the point, TRA liability increases in size along with company market cap and assets.
In order to avoid the swelling cost of TRAs,
Some companies have negotiated a cap on TRA payments. For example, when Genworth Financial (GNW) entered into a TRA with General Electric following their separation, the companies agreed on a maximum aggregate payment to GE of $640 million. As described in Genworth’s March 1, 2005 10-K filing: To put that number in context, $640 million is 35% of Genworth’s 2004 EBITDA. PRPL currently doesn't have any such cap.
For getting out of a TRA,
Clarivate Analytics(CCC) recently sought early termination / buyout of their TRA
https://www.prnewswire.com/news-releases/clarivate-analytics-announces-buyout-of-tax-receivable-agreement-300905700.html
The amount is usually NPV of potential tax benefits, which as you can imagine is very imprecise and will depend a lot on partners discretion.

Comments from Tax Professionals on TRA:
TRAs fundamentally change the nature of IPOs by transferring value from public shareholders to the pre-IPO owners. This Article shows that TRAs have rapidly risen in popularity and have very recently evolved in ways that make them universally available to any IPO. This Article analyzes the ways that TRAs transfer wealth from public companies to pre-IPO owners, presents previously overlooked economic and disclosure issues arising in these transactions, and argues that the SEC should require companies to publicly disclose these material risks.
Vanderbilt Law Review
A few theories have emerged as to why the public markets do not factor a TRA in to the valuation of a business and its stock price. Foremost is the argument that public companies are valued in terms of multiples of their earnings before interest, taxes, depreciation, and amortization and that “accounting items like a reduction in a deferred tax asset or a tax expense aren’t reflected in EBITDA.”
Taxnotes, Special Report August 2017

What those lawyers are saying is basically that TRAs are made possible by retards buying stocks and not reading the fine print.

TL;DR: When you do DD on a company it's not just about topline and gross margin, verify the corporate structure and liabilities agreements so you won't be surprised come earnings.

submitted by indonesian_activist to wallstreetbets [link] [comments]

eBay DD Due Diligence, Coronavirus is about to reboot this stock to what it should have been worth years ago

*Authors note* Attempted to post this in WSB but it kept being rejected by the AUTOMOD because it said the title was too long. IDK what the issue is but I am posting it here if that is okay as I spent a lot of time on it. Apologies it was written in the voice of WSB. This is a great stock to buy as well so I think the people on this sub would appreciate the DD. I don't post here much, for those that don't know me I'm the one who posted a very in depth HUYA DD (Now taken down by the WSB mods I suspect because I made a post earnings update talking about some shenanigans) I sold my Huya 10/16 strikes for 800% profit last week. I will leave my options recommendations in the DD. I know Options are not a big thing here but TBH 1/15/21 $85 strikes are a very conservative investment. I have dysgraphia and dyslexia so my writing style can be brutal but the message should come across. *End Note*
eBay could SOON become pound for pound one of the most profitable enterprises outside of gambling and drugs.
TLDR
Bad Leadership at eBay for YEARS
Corona flips the script. Bull Case $180 Bear Case $220 Future Price Target maybe more. We will see how peoples mind changes when we see earnings.
BUY 11 – 101 – 1001 Shares Depending on Bankroll (I like shares on this one as I expect the company to pay dividends) X Multiples of 100 for future CC.
7/31 $80C (These look the juiciest RN)
(8/21 $90C if made available)
1/15/21 $85C
Ebay is an online auction house. Look up your local auction house and spend an evening or day at the Auction. It is fun and will help you understand why previous CEO’s tanked this awesome company with their stupidity. Hammering a Diamond into a square hole.
Worked for an auction house 4 years. If you go to a well run local auction you will see diverse people, successful auction houses have a customer makeup like this:
30% Hustlers and People involved with the auctions (Consignees etc)
20% Rich people (Rich people love auctions and I’m not talking about Sotherbys I’m talking about a normal sized city weekly auction there will be lots of rich people there)
40% Normal people that either like the thrill or value seekers.
10% Poor People.
This is important when we talk about bad CEO decisions. You have to know your audience.
Ebay started out with this dude selling a broken laser printer, Pierre Omidayer. It grew quickly and he brought in professional help. This can be a good thing as founders can get in the way of growth. In 1998 Meg Whitman was hired to be CEO. Her tenure was unimpressive and she was responsible for the first of two massive blunders that decapitated eBay growth.
Ebay was growing and the internet was starting to get widespread use. By the early 2000s people started to talk about WEB 2.0 and for some reason certain people thought that WEB 2.0 meant being fancy. Ebay did a massive redesign that was hated by most people. Broadband internet was in it’s infancy and the focus on form over function was frustrating for low bandwidth users as the fanciness was more complicated and took longer to load. Additionally it stunted the pathway that would eventually appear for mobile growth. The remnants of this design linger today.
Screen Cap of the AOLfication of eBay late 2003 I believe one of the big problems was rendering the menus in AJAX or something similar, very slow to load in that era
Here we can see the failure in line graph form, (These things lag) eBay share price got hammered. One the reasons for the hammering was lackluster earnings, many ebay users attribute this to the redesign failure as it turned off existing and new customers.
Link to image as it loos like this sub doesn't allow embeded images
Project Ugly-ify and Slow-ify eBay looks to have lopped off growth and momentum for the share price. Meg Whitmans tenure at ebay neutered growth.
One could blame Whitman for doing a lot of damage to eBay growth but she will largely be forgotten after you learn about the FLAMING DUMPSTER FIRE OF A CEO that is John Donahoe. In 2008 eBay hired Donahoe to be CEO. This could possibly be the worst hire in the history of all hires.
Don’t take my word for it. In 2014 Carl Icahn said eBay was the worst run company he had ever seen.
Carl Icahn says eBay is the worst run company he has ever seen
Donahoe had series after series of bad decision. He basically went to war with small and medium sellers (eBay’s actual bread and butter customers) and went to great lengths to attract large corporate clients. (The worst type of business for eBay) and run away his most profitable customers.
eBay is a market place.
Donahoe gave steep discounts in fees in order to attract corporate customers.
Companies like Target started to sell on eBays platform. (Most are now gone because within a few short years the internet was mature enough that they could start their own platforms)
Link to no longer existing eBay Target Store
Fee discounts to corporate customers angered existing sellers.
In early 2013 he implemented eBay’s search algorithm (Cassini I believe it was called) Previous to this Algo eBay was just a dumb search engine. With the Algo, eBay could control visibility of items on the site via built in preferences like Best Match. With this Donahoe is about to fire maybe 20% of his most profitable customers and give the Amazon marketplace a flood of new users. This idiot was trying to turn an auction house into the next Amazon. Instead he just put Amazon growth on steroids and shoots himself in the foot.
Cassini was used to ban eBay's customers. DROVES OF THEM
Donahoe decided that any problems on eBay were caused by sellers and he declared war on the people that were his customers.
Enter DSR. Detailed seller ratings was eBay implementation of strict guidelines for their sellers. DSR = 4 categories, each category was rated 1-5 with 5 being good. The system treated 1&2s as a failure.
For Example Customer was unhappy with an item they received for whatever reason. If someone rated a part of the transaction a 2 they would get a ding against their DSR. Problem is they treated all categories the same and the thresholds were very stringent.
For every 1000 transactions a seller had to have LESS than 10 dings in order to participate with Cassini without a search penalty. If the 10 threshold was crossed (Which is 98.9% or less good rating) they would be penalized in the search standing and go under probation. If they crossed 20/1000 or 97.9% or less positive approval rating they would BAN YOU FROM THE PLATFORM.
YOU READ THAT CORRECTLY John DONAHOE in is infinite wisdom decided that sellers with as high as a 97.9% positive transaction rating were disposable. I've NEVER SEEN SOMETHING SO STUPID IN MY LIFE.
I kid you not. Donahoe implemented a system where a 98.9% POSITIVE rating has a penalty and 97.9% positive is a ban. (Check the feedback on tons of Amazon marketplace sellers and you will see how ridiculous a threshold this was) What was even more ridiculous was in the beginning all categories were treated the same. For example Books were treated the same way as used women's clothing. Certain categories like womens clothing were DECIMATED by sellers being banned. People who had been on the platform for a decade and had say a 97% positive feedback selling USED WOMENS CLOTHING were banned left and right. It gets worse, remember how at 98.9% they would put you on probation? Some people called this the DEATH SPIRAL as if you were on probation the new “Best Match” system would lower your search standing. So if you were some poor schmuck who had sold 397 used pieces of womens clothing that year and just 4 of them were unhappy with the experience. You’d go on probation with little to no hope of anything other than the ban hammer. I’ve read many period era messageboard posts of long time sellers in probation trying to do EVERYTHING they could to raise their DSR to get out of probation but had zero visibility with the new algo, they were just left to wither on the vine hoping fruitlessly to turn things around. Most of them didn’t know it YET but eventually as people started putting the pieces together there was no chance of them escaping the Death Spiral. Gaggles of people spent MONTHS trying to save their accounts and eventually most of them realized they were screwed, there was nothing they could do about it because of the Algos. These sellers turned on ebay and took others with them.
If you notice during this time period AMAZON marketplace took off. Daddy Bezo’s had a flood of experienced online traders who simply shifted their operations to the less popular (at the time) and more expensive platform (at the time). It was either that or close shop. MANY CHOSE TO CLOSE SHOP.
The stupidity of all this was the Small and Medium sellers were the real money makers. eBay charges around a 9% fee with a cap of $250 per transaction.
Which is more profitable?
Target selling 50,000 items or 5,000 small to medium size sellers selling 100 items?
The answer is in the nature of marketplaces. Target sells to 5,000 customers and that is the end of the story. Small to medium sized sellers tend to keep the money in the marketplace. User A sells to user B for $100 User B can turn around and take that $100 and buy something he needs for himself or his business from user C, user C can then do the same. Wash, Rinse, Repeat. Target selling $100 is a one way street while Small to Medium users can be a continuous money carousel.
Donahoe in his infinite ignorance ran off many of his prime sellers. Ultimately sellers are your customers as they are the one’s who pay the fees. He jump started his competition whom he was stupidly trying to emulate. The important thing to understand about eBay is their product (An Auction) is easily scaleable and cheap to run
For example this Rolex
costs about the same to service this listing for a rug
The Target deal, illustrated with a bathroom rug
Chasing these corporate dollars was infinitely stupid.
  1. They gave these corporations steep discounts to use the platform
  2. The internet was maturing and we were just a few years from all these corporations having their own web presence
  3. Robbed dollars and eyeballs from your bread and butter. Auction and Store listings of small to medium sellers.
  4. Robs future revenue from carousel customers who return money to the marketplace and gives it to corporate customers who do not return dollars and are using the dollars they make off you to build the infrastructure to replace you. DING DING DING
This dude declared war on some of his best customers and tried to make eBay an ugly corporate shill and would eventually lead to the invasion of cheap Chinese stuff (eBay is now combating that)
We can see the results of his war on customers with this graph. eBay’s growth and revenue was decimated by this idiot and you can see the results once the earnings were reported (Which lagged the implementation of his stupidity)
War on customers displayed via line graph
Donohoe decapitated ebay right during what would have been it’s prime growth years and funneled those customers to his biggest competitor.
eBay can make far more with less because of the nature of it’s bread and butter customers. Many auction enthusiasts are high income types. eBay has better demographics financially than it’s competitors. There is even a fairly large industry of arbitrage where people sell items they source elsewhere (Like amazon) and basically drop ship them off as eBay sells because some stuff sells at a premium on eBay.
eBay CAN make more money per transaction compared to similar industries and can capture a significant amount of money to return within the marketplace. Similar to sales tax, that dollar can bounce around within the marketplace and eBay can take it’s 9% cut every time it switches hands.
Interesting side rabbit hole that arises during the Donahoe years. Donahoe was obsessed with attacking his own customers. This was commonly followed in an industry blog called AuctionWeb and then eventually named ecommercebytes. Run by the Steiner Couple
Here is an article their website published about them getting rid of sellers
They reported on all of eBay’s policy changes and basically called them out for being the giant window lickers they were. It ruffled a few feathers within the organization and now 6+ employees of eBay are being charged with crimes like harassment and stalking. Really a crazy story. DONAHOE is to blame for the policies and culture that allowed this to happen. He should go to jail over just what he did to the share price.
Crazy eBay Criminal Stalking
More Crazy eBay Harassment
During all of this foot shooting was when Carl Icahn said that eBay was THE WORST RUN COMPANY HE HAD EVER SEEN
One of the problems was the incestuous nature of eBay’s relationship with Paypal and the board members who presided over both. They basically spent a decade doing what was best for the board and not what was best for the Shareholders, employees and customers of eBay.
This is now not so much a problem because many of those relationships no longer exist. In the aftermath the other pieces have found increased market value and eBay has been suppressed due to it being stuck with all the burdens of the Donahoe administration and bad perception.
eBay should have been worth more as an individual piece and it’s was the one who took the financial hits.
PayPal Split in 2015
PayPal has a 113 P/E (I’m not saying this is the best metric to judge a company I’m just using it for illustration)
If eBay traded at Paypal P/E it would be worth $660
So what’s the catalyst to the eBay Rocket Ship that is about to take off?
CORONA. Corona is shaking up the whole economy and this shake up will jolt eBay to it’s full potential.
Alexa 90 days, even better at 140 and this growth is against the normal ebb of seasonal business
Over the past 4 months as far as I can tell eBay has increased traffic by as much as 18%+ which is pretty AMAZING for a very mature internet company. Even more amazing when you take into account that this is normally eBays slow period. Traffic is normally on the downturn. YOY I am curious how much busier they have been I'm guessing 45% YOY increase in traffic for the Month of May & June
April May June July are eBay’s 4 slowest months and the July 28th earnings will encompass 3 of those 4 months. During the slowest time of year eBay went from the mid 50’s to the lower 40’s for it’s spot in total Internet Traffic. A HUGE shift against the normal tide of business cycles.
Traffic for last 90 days. Up much more over entire Corona Period the increase looks more bigly when you view 150 days out
I've spent a few hours trawling eBay seller message boards. Within this quarter I have heard of increases in per transactions and a decrease in "Best Offers" which means better margins for sellers and more fees for eBay. I attribute this to Corona disrupting normal supply chains. eBay has been established for many years so boomers when they can’t find something are like "Oh Yeah EBAY." Many sellers report increased sells in business related categories and more aged inventory being sold as parts of the market shift towards online from some of the traditionally Bricks and Mortar industries. eBay has a very successful and well made app. Sellers are seeing increased usage amongst younger buyers/sellers whom are either bored with the lockdowns or looking for side income after losing their jobs. Remember when we mentioned 500 small sellers being worth more than one big corporate client? This will be obtained with an army of people using the app on their cell phones. Corona is going to get the attention of customers they lost over the years as they come back to the platform they remember, millennials and new users when they discover the well made app will come online. I've added the eBay App to my phone it is very good and has very customizable search features.
The Bear case for eBay is even more, if Corona turns out to be worse (It’s not) everything online just becomes more valuable.
So what is eBay worth?
Well it’s a better investment IMO than Paypal
eBay valued like Paypal is worth $660
Mercardo Libre is worth more than eBay (This is a Crime) as it is not even a top 1000 worldwide website while eBay is top 50. Plus it doesn’t even turn a profit. If you have any MELI stock sell half of it and buy eBay in addition to whatever you would buy if you didn't own MELI do the same for PayPal as well IMO.
If eBay was valued like MELI it would be worth Tesla numbers
Mercardo Libre has a 25% bigger market cap than eBay and doesn’t turn a profit. Ebay would be $76 a share just to be on par with MELI and it shouldn’t even be in the same ballpark.
Etsy is just outside of the Top 100 for web traffic and has a 181 P/E if eBay was trading like ETSY it would be trading at $1090 a share
If eBay was valued like ETSY it would trade for $1090
Channel Advisor is a company that grew out of offering services for eBay and while it works on multiple platforms it’s use was born from eBay and it has a 60 P/E
If trading like Channel Advisor it would be worth $363
Corona shifted a lot of users to the eBay marketplace because of busted supply chains. They now have an Okay website and an EXCELLENT APP. This increased use comes during the traditional low tide of eBay traffic and if eBay leans into the coming quarters their revenue is going to skyrocket. Corona was the catalysts to wake everybody up to what eBay could do and what it should be worth. EBAY should be one of the most profitable companies in the US economy with lots of room to improve the bottom line. It has all the pieces.
Like
Selling off some of the MANY side projects under the eBay umbrella
Streamlining Employment
Just this month they are integrating their own payment platform which should add 1-2% more to every sell which is a big deal considering that the average fee is around 9%. We are talking about maybe 20% added to revenue with not much changing. BIG MONEY
Winning back Small to Medium sellers and improving the per item transaction is eBay's ticket to tendie town. All the new growth they are experiencing is exactly what they need and want. They have a good App that can capitalize on the reboot.
eBay has ample room for growth and I suspect the income levels of buyers in the marketplace is higher than competitors like Amazon, Etsy, Overstock, Stitch Fix. eBaY has more people with money paying attention.
New CEO seems to be a bright guy. All he has to do is not SHOOT HIMSELF IN THE FOOT like the Donahoe CEO. If successful eBay will be on the moon mission of all moon missions
MOST UNDERVALUED TECH COMPANY IN AMERICA. As always my DMs are open and I do mercenary stuff. I have my position and I am currently buying shares with a goal of 303 shares before earnings.
I suspect this thing will have VERY little resistance upon takeoff
Little Resistance
BUY 11 – 101 – 1001 Shares Depending on Bankroll (I like shares on this one, I like the company and I'm expecting dividends) Once this rocket settles it is covered call selling time. (This is why you want multiples of 100
You should be at least a 80/20 Options/ Share split. Got to water the seed
Options
7/31 $80C
(8/21 $90C if ever made available)
1/15/21 $85C (Also I'd buy higher but they are not currently available, if BEFORE earnings Higher Strikes appear I would go up in strike A LOT. If earnings are up big this is ONLY THE BEGINNING as this is eBays SLOW PERIOD. Earnings for the fall will be CRAZY if Traffic continues to hold and if it has the normal Santa Claus Tax increase 🚀🚀🚀🚀🚀
submitted by NewFlipPhoneWhoDis to investing [link] [comments]

Extreme Difficulty tips

Since my other post became excessively large and the title increasingly misleading, I've decided to post a separate guide.

Index

  1. Economy & Empire
  2. Resources
  3. Military
  4. Design
  5. Miscellaneous

1. Economy & Empire

2. Resources

3. Military

4. Design

5. Miscellaneous

Lastly, two off-topic tips:
A great way to test any game mechanic or ship build is to start a game at tech 7, or just backup one of your endgame saves for later use.
Star amount largely governs the drain on your PC's hardware. If you're experiencing stutter, consider playing on a less populated map. You can lower the map size to keep inter-system distances similar, though vast distances add a certain "deep space" charm to gameplay.
submitted by Gessie00 to DistantWorlds [link] [comments]

What has Trump actually done? I've done some research... (Requested Re-post)

A little about myself: I have always been a right-leaning financially conservative liberal. Meaning I'm all for newer technologies. I want solar energy, electric cars, auto-driving technologies (Love Musk). I do care about our environment. I do believe LGBT relationships/marriage is awesome. I'm all for Black people having their fair style of policing as well. I hate Nazis, hate Communists, hate racism, sexism, abuse, etc. I hate hate. I love LOVE! I want our government to be LESS controlling and want less taxes. I do NOT believe we should be handing out welfare checks unless IF needed (you just lost a job, sure). If you are sitting on welfare for 10 years....that becomes a problem. I look at BOTH SIDES. I've signed up for newsletters/emails/facebook/twitter groups from both sides. However I've seen that the left has become a socialist groupthink mindset, for example omitting the word God in a few speeches....It's not a BIG deal but small unnoticed details may lead to big overhauls. The censorships of channels, the media attacking conservatives, people getting fired for just having a different political opinion...are you kidding me?? The media turning a blind eye to destruction yet talk about Coronavirus numbers and criminals that are resisting arrest get shot as the cop's fault...however we do need more police training. Cops are aggressive here (I do agree with my liberal friends on that). The double standard: letting people protest for BLM but when the Conservatives tried to protest to go back to work, at the beginning in March/April, they were at fault. Or how CA Gov Newsom stated "You're allowed to protest, but not allowed to have social gatherings"....isn't a protest a type of social gathering.
I don't like to be biased, but holy crap how much I've found what Trump has done for the past 3.5 years is insane!! My point is I look at both sides for politics. Anyways, I decided to do a full day's work with the help of some people to compile a list:
  1. Trump recently signed 3 bills to benefit Native people. One gives compensation to the Spokane tribe for loss of their lands in the mid-1900s, one funds Native language programs, and the third gives federal recognition to the Little Shell Tribe of Chippewa Indians in Montana.
  2. Trump finalized the creation of Space Force as our 6th Military branch.
  3. Trump signed a law to make cruelty to animals a federal felony so that animal abusers face tougher consequences.
  4. Violent crime has fallen every year he’s been in office after rising during the 2 years before he was elected.
  5. Trump signed a bill making CBD and Hemp legal.
  6. Trump’s EPA gave $100 million to fix the water infrastructure problem in Flint, Michigan.
  7. Under Trump’s leadership, in 2018 the U.S. surpassed Russia and Saudi Arabia to become the world’s largest producer of crude oil.
  8. Trump signed a law ending the gag orders on Pharmacists that prevented them from sharing money-saving information.
  9. Trump signed the “Allow States and Victims to Fight Online Sex Trafficking Act” (FOSTA), which includes the “Stop Enabling Sex Traffickers Act” (SESTA) which both give law enforcement and victims new tools to fight sex trafficking.
  10. Trump signed a bill to require airports to provide spaces for breastfeeding Moms.
  11. The 25% lowest-paid Americans enjoyed a 4.5% income boost in November 2019, which outpaces a 2.9% gain in earnings for the country's highest-paid workers.
  12. Low-wage workers are benefiting from higher minimum wages and from corporations that are increasing entry-level pay.
  13. Trump signed the biggest wilderness protection & conservation bill in a decade and designated 375,000 acres as protected land.
  14. Trump signed the Save our Seas Act which funds $10 million per year to clean tons of plastic & garbage from the ocean.
  15. He signed a bill this year allowing some drug imports from Canada so that prescription prices would go down.
  16. Trump signed an executive order this year that forces all healthcare providers to disclose the cost of their services so that Americans can comparison shop and know how much less providers charge insurance companies.
  17. When signing that bill he said no American should be blindsided by bills for medical services they never agreed to in advance.
  18. Hospitals will now be required to post their standard charges for services, which include the discounted price a hospital is willing to accept.
  19. In the eight years prior to President Trump’s inauguration, prescription drug prices increased by an average of 3.6% per year. Under Trump, drug prices have seen year-over-year declines in nine of the last ten months, with a 1.1% drop as of the most recent month.
  20. He created a White House VA Hotline to help veterans and principally staffed it with veterans and direct family members of veterans.
  21. VA employees are being held accountable for poor performance, with more than 4,000 VA employees removed, demoted, and suspended so far.
  22. Issued an executive order requiring the Secretaries of Defense, Homeland Security, and Veterans Affairs to submit a joint plan to provide veterans access to access to mental health treatment as they transition to civilian life.
  23. Because of a bill signed and championed by Trump, In 2020, most federal employees will see their pay increase by an average of 3.1% — the largest raise in more than 10 years.
  24. Trump signed into a law up to 12 weeks of paid parental leave for millions of federal workers.
  25. Trump administration will provide HIV prevention drugs for free to 200,000 uninsured patients per year for 11 years.
  26. All-time record sales during the 2019 holidays.
  27. Trump signed an order allowing small businesses to group together when buying insurance to get a better price
  28. President Trump signed the Preventing Maternal Deaths Act that provides funding for states to develop maternal mortality reviews to better understand maternal complications and identify solutions & largely focuses on reducing the higher mortality rates for Black Americans.
  29. In 2018, President Trump signed the groundbreaking First Step Act, a criminal justice bill which enacted reforms that make our justice system fairer and help former inmates successfully return to society.
  30. The First Step Act’s reforms addressed inequities in sentencing laws that disproportionately harmed Black Americans and reformed mandatory minimums that created unfair outcomes.
  31. The First Step Act expanded judicial discretion in sentencing of non-violent crimes.
  32. Over 90% of those benefitting from the retroactive sentencing reductions in the First Step Act are Black Americans.
  33. The First Step Act provides rehabilitative programs to inmates, helping them successfully rejoin society and not return to crime.
  34. Trump increased funding for Historically Black Colleges and Universities (HBCUs) by more than 14%.
  35. Trump signed legislation forgiving Hurricane Katrina debt that threatened HBCUs.
  36. New single-family home sales are up 31.6% in October 2019 compared to just one year ago.
  37. Made HBCUs a priority by creating the position of executive director of the White House Initiative on HBCUs.
  38. Trump received the Bipartisan Justice Award at a historically black college for his criminal justice reform accomplishments.
  39. The poverty rate fell to a 17-year low of 11.8% under the Trump administration as a result of a jobs-rich environment.
  40. Poverty rates for African-Americans and Hispanic-Americans have reached their lowest levels since the U.S. began collecting such data.
  41. President Trump signed a bill that creates five national monuments, expands several national parks, adds 1.3 million acres of wilderness, and permanently reauthorizes the Land and Water Conservation Fund.
  42. Trump’s USDA committed $124 Million to rebuild rural water infrastructure.
  43. Consumer confidence & small business confidence is at an all-time high.
  44. More than 7 million jobs created since election.
  45. More Americans are now employed than ever recorded before in our history.
  46. More than 400,000 manufacturing jobs created since his election.
  47. Trump appointed 5 openly gay ambassadors.
  48. Trump ordered Ric Grenell, his openly gay ambassador to Germany, to lead a global initiative to decriminalize homosexuality across the globe.
  49. Through Trump’s Anti-Trafficking Coordination Team (ACTeam) initiative, Federal law enforcement more than doubled convictions of human traffickers and increased the number of defendants charged by 75% in ACTeam districts.
  50. In 2018, the Department of Justice (DOJ) dismantled an organization that was the internet’s leading source of prostitution-related advertisements resulting in sex trafficking.
  51. Trump’s OMB published new anti-trafficking guidance for government procurement officials to more effectively combat human trafficking.
  52. Trump’s Immigration and Customs Enforcement’s Homeland Security Investigations arrested 1,588 criminals associated with Human Trafficking.
  53. Trump’s Department of Health and Human Services provided funding to support the National Human Trafficking Hotline to identify perpetrators and give victims the help they need.
  54. The hotline identified 16,862 potential human trafficking cases.
  55. Trump’s DOJ provided grants to organizations that support human trafficking victims – serving nearly 9,000 cases from July 1, 2017, to June 30, 2018.
  56. The Department of Homeland Security has hired more victim assistance specialists, helping victims get resources and support.
  57. President Trump has called on Congress to pass school choice legislation so that no child is trapped in a failing school because of his or her zip code.
  58. The President signed funding legislation in September 2018 that increased funding for school choice by $42 million.
  59. The tax cuts signed into law by President Trump promote school choice by allowing families to use 529 college savings plans for elementary and secondary education.
  60. Under his leadership ISIS has lost most of their territory and been largely dismantled.
  61. ISIS leader Abu Bakr Al-Baghdadi was killed.
  62. Signed the first Perkins CTE reauthorization since 2006, authorizing more than $1 billion for states each year to fund vocational and career education programs.
  63. Executive order expanding apprenticeship opportunities for students and workers.
  64. Trump issued an Executive Order prohibiting the U.S. government from discriminating against Christians or punishing expressions of faith.
  65. Signed an executive order that allows the government to withhold money from college campuses deemed to be anti-Semitic and who fail to combat anti-Semitism.
  66. President Trump ordered a halt to U.S. tax money going to international organizations that fund or perform abortions.
  67. Trump imposed sanctions on the socialists in Venezuela who have killed their citizens.
  68. Finalized new trade agreement with South Korea.
  69. Made a deal with the European Union to increase U.S. energy exports to Europe.
  70. Withdrew the U.S. from the job killing TPP deal.
  71. Secured $250 billion in new trade and investment deals in China and $12 billion in Vietnam.
  72. Okay’ d up to $12 billion in aid for farmers affected by unfair trade retaliation.
  73. Has had over a dozen US hostages freed, including those Obama could not get freed.
  74. Trump signed the Music Modernization Act, the biggest change to copyright law in decades.
  75. Trump secured Billions that will fund the building of a wall at our southern border.
  76. The Trump Administration is promoting second chance hiring to give former inmates the opportunity to live crime-free lives and find meaningful employment.
  77. Trump’s DOJ and the Board Of Prisons launched a new “Ready to Work Initiative” to help connect employers directly with former prisoners.
  78. President Trump’s historic tax cut legislation included new Opportunity Zone Incentives to promote investment in low-income communities across the country.
  79. 8,764 communities across the country have been designated as Opportunity Zones.
  80. Opportunity Zones are expected to spur $100 billion in long-term private capital investment in economically distressed communities across the country.
  81. Trump directed the Education Secretary to end Common Core.
  82. Trump signed the 9/11 Victims Compensation Fund into law.
  83. Trump signed measure funding prevention programs for Veteran suicide.
  84. Companies have brought back over a TRILLION dollars from overseas because of the TCJA bill that Trump signed.
  85. Manufacturing jobs are growing at the fastest rate in more than 30 years.
  86. Stock Market has reached record highs.
  87. Median household income has hit highest level ever recorded.
  88. African-American unemployment is at an all-time low.(was until Covid bullshit)
  89. Hispanic-American unemployment is at an all-time low.
  90. Asian-American unemployment is at an all-time low.
  91. Women’s unemployment rate is at a 65-year low.
  92. Youth unemployment is at a 50-year low.
  93. We have the lowest unemployment rate ever recorded.
  94. The Pledge to America’s Workers has resulted in employers committing to train more than 4 million Americans.
  95. 95 percent of U.S. manufacturers are optimistic about the future— the highest ever.
  96. As a result of the Republican tax bill, small businesses will have the lowest top marginal tax rate in more than 80 years.
  97. Record number of regulations eliminated that hurt small businesses.
  98. Signed welfare reform requiring able-bodied adults who don’t have children to work or look for work if they’re on welfare.
  99. Under Trump, the FDA approved more affordable generic drugs than ever before in history.
  100. Reformed Medicare program to stop hospitals from overcharging low-income seniors on their drugs—saving seniors 100’s of millions of $$$ this year alone.
  101. Signed Right-To-Try legislation allowing terminally ill patients to try experimental treatment that wasn’t allowed before.
  102. Secured $6 billion in new funding to fight the opioid epidemic.
  103. Signed VA Choice Act and VA Accountability Act, expanded VA telehealth services, walk-in-clinics, and same-day urgent primary and mental health care.
  104. U.S. oil production recently reached all-time high so we are less dependent on oil from the Middle East.
  105. The U.S. is a net natural gas exporter for the first time since 1957.
  106. NATO allies increased their defense spending because of his pressure campaign.
  107. Withdrew the United States from the job-killing Paris Climate Accord in 2017 and that same year the U.S. still led the world by having the largest reduction in Carbon emissions.
  108. Has his circuit court judge nominees being confirmed faster than any other new administration.
  109. Had his Supreme Court Justice’s Neil Gorsuch and Brett Kavanaugh confirmed.
  110. Moved U.S. Embassy in Israel to Jerusalem.
  111. Agreed to a new trade deal with Mexico & Canada that will increase jobs here and $$$ coming in.
  112. Reached a breakthrough agreement with the E.U. to increase U.S. exports.
  113. Imposed tariffs on China in response to China’s forced technology transfer, intellectual property theft, and their chronically abusive trade practices, has agreed to a Part One trade deal with China.
  114. Signed legislation to improve the National Suicide Hotline.
  115. Signed the most comprehensive childhood cancer legislation ever into law, which will advance childhood cancer research and improve treatments.
  116. The Tax Cuts and Jobs Act signed into law by Trump doubled the maximum amount of the child tax credit available to parents and lifted the income limits so more people could claim it.
  117. It also created a new tax credit for other dependents.
  118. In 2018, President Trump signed into law a $2.4 billion funding increase for the Child Care and Development Fund, providing a total of $8.1 billion to States to fund child care for low-income families.
  119. The Child and Dependent Care Tax Credit (CDCTC) signed into law by Trump provides a tax credit equal to 20-35% of child care expenses, $3,000 per child & $6,000 per family + Flexible Spending Accounts (FSAs) allow you to set aside up to $5,000 in pre-tax $ to use for child care.
  120. In 2019 President Donald Trump signed the Autism Collaboration, Accountability, Research, Education and Support Act (CARES) into law which allocates $1.8 billion in funding over the next five years to help people with autism spectrum disorder and to help their families.
  121. In 2019 President Trump signed into law two funding packages providing nearly $19 million in new funding for Lupus specific research and education programs, as well an additional $41.7 billion in funding for the National Institutes of Health (NIH), the most Lupus funding EVER.
  122. Another upcoming accomplishment to add: In the next week or two Trump will be signing the first major anti-robocall law in decades called the TRACED Act (Telephone Robocall Abuse Criminal Enforcement and Deterrence.) Once it’s the law, the TRACED Act will extend the period of time the FCC has to catch & punish those who intentionally break telemarketing restrictions. The bill also requires voice service providers to develop a framework to verify calls are legitimate before they reach your phone.
  123. Israel-UAE peace. More Muslim countries (Countries such as Oman, Morocco, Sudan, Lebanon) said they may follow. Last time Israel and a Muslim country normalized ties was 26 years ago.
  124. US stock market continually hits all-time record highs.
Note: I would like to also add that this list will obviously be very similar to other lists if not the same, since these are facts and not really opinions.
I may have missed some stuff or duplicated a few things. Sorry about that. Please let me know if you have anything to add. Thanks for reading!
submitted by Jules0328 to donaldtrump [link] [comments]

Singapore is a Meritocracy* [EXTRA LONG POST]

Singapore is a Meritocracy* [EXTRA LONG POST]
Edit: Thank you for all the comments and chat messages! I'm trying to go through each one. Writing thoughtful comments in the midst of having a full-time job is HARD WORK. I think I've missed a few questions, drop me a message if you're interested in continuing a discussion, I'm open to listening! There has been a lot of good comments, a few with great perspectives, and now I have a whole lot of things to read up on.
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Now that the 2020 General Election is firmly in our rear-view mirror, there is something that I have been meaning to write about: institutionalized racism affecting the minorities, especially the Malays, in Singapore. If you are groaning at this thinking you have been misled by this post’s title, I assure you that by the end of this post you will understand the caveat behind the above-mentioned title. I plead for a little of your time and patience.
We have seen many discussions online about majority privilege and systemic racism impacting the minorities. Many of you may have even participated in some of these discussions. I will not try to explain those terms for they have already been repeatedly debated to death. What this post aims to achieve is to bring to light Singapore’s history and government policies that have either benefited the majority race or kneecapped the minority race. Or both.
Why am I doing this?
It is frustrating to see some Singaporeans fully buying into the narrative that Singapore is a truly meritocratic society; that the government’s policies do not discriminate against minorities, or if a Singaporean worked hard enough he or she will succeed (whatever the definition of success is), or that we have anti-discriminatory laws that protect the minorities. Some even claim that the Malays enjoy special privileges due to Section 152 of the Constitution describing the special position of Malays, and that the Malays are blessed with free education in Singapore.
Section 152, “Special Position”, free education for all Malays?
Minorities and special position of Malays
152.—(1) It shall be the responsibility of the Government constantly to care for the interests of the racial and religious minorities in Singapore.
(2) The Government shall exercise its functions in such manner as to recognise the special position of the Malays, who are the indigenous people of Singapore, and accordingly it shall be the responsibility of the Government to protect, safeguard, support, foster and promote their political, educational, religious, economic, social and cultural interests and the Malay language.
The oft-mentioned Section 152 of the Constitution was an administrative continuation of previously existing colonial policy towards the Malays [Col: 126]. Regardless of the “special position” of the Malays, the only form of assistance rendered to the Malays was the policy of free education for all Malay students. This minimal approach of the government did little to improve the educational and socio-economic standing of the Malays as revealed by the 1980 national census. The free tertiary education policy was ultimately removed in 1990, despite opposition from Malays who questioned the constitutionality of its removal [col: 126].
With free education for all Malays, why haven’t their socio-economic and educational standings improved?
There are many factors to look at, and the issue goes way back to the colonial era so that’s where we shall start. The colonial administrators of Singapore, in their pursuit of capitalistic gains, had little use for the native inhabitants. The natives who were already living off their own land had no desire to work for the British as labourers. The British saw this unwillingness to work for them as indolence, and ascribed many other negative cultural stereotypes to the locals [pdf]. Nailing home the capitalistic intent of colonial presence in Singapore, the British Director of Education R. O. Winstedt explained their policy for education for the natives in 1920 [pg. 2]:
"The aim of the government is not to turn out a few well-educated youths, nor a number of less well-educated boys; rather it is to improve the bulk of the people, and to make the son of a fisherman or a peasant a more intelligent fisherman or peasant than his father had been, and a man whose education will enable him to understand how his lot in life fits in with the scheme of life around him".
And in 1915, a British resident revealed the colonial attitude towards education [pg. 3]:
"The great object of education is to train a man to make a living.... you can teach Malays so that they do not lose their skill and craft in fishing and jungle work. Teach them the dignity of manual labour, so that they do not all become krannies (clerks) and I am sure you will not have the trouble which has arisen in India through over education"
The type and quality of education that the British set up for the native inhabitants show that they had no intentions to empower the locals with skills for a new economy. The education provided, while free, was to make sure the locals were kept out of trouble for the British, and remain subservient to the colonial causes. Further impeding the socio-economic status of Malays, the British actively discouraged Malays in switching from agricultural production to more lucrative cash crops, preventing the building of wealth among the Malay communities (Shahruddin Ma’arof, 1988: 51). In contrast to the British suppression of the buildup of Malay wealth and provision of vernacular education, Chinese businessmen, clan associations and Christian missionaries established Chinese schools where students were taught skills like letter-writing and the use of the abacus. By the turn of the 20th century, the curriculum in these Chinese-language schools expanded to include arithmetic, science, history and geography while Malay-language schools under Winstedt’s educational policies focused on vernacular subjects such as basket-weaving.
So, when Singapore attained self-governance, did things get better?
Discontent with the education system and social inequalities was already a big issue in the mid 1950s that the parties that contested for the Legislative Assembly championed for reforms to social issues like better education systems, housing subsidies and workers rights.
The People’s Action Party (PAP) won the 1959 Legislative Assembly general elections by running on a rather progressive platform of low-cost housing, improvement of employment opportunities for locals and a stronger education. They also campaigned for abolishing the inequality of wealth in their election manifesto (Petir, 1958: 2), with PAP chairman Dr Toh Chin Chye expressing his disgust at seeing “so many of our people reduced to living like animals because under the present social and economic system, the good things of life are for the ruthless few, those who believe that the poor and the humble are despicable failures.”
With the PAP in power, assurances were made to Singaporeans that no community would be left behind. In 1965, Prime Minister Lee Kuan Yew promised aid specifically to help raise the economic and education levels of the Malays. In 1967 during a mass rally at Geylang Serai, PM Lee again promised that “the Government with the support of the non-Malays are prepared to concentrate more than the average share of our resources on our Malay citizens [pdf].” He emphasized the importance of lifting all sections of the community to an even footing, reasoning that “if one section of the community were to lag behind it would harm the unity and integrity of the nation” (Bedlington, 1974: 289).
Despite these promises to help the minorities narrow the inequality gap, very little was done to realize it. Instead, the government took a ruthless approach towards economic growth, sparing no expense. Deputy Prime Minister Goh Keng Swee explained the government’s main concern was “to generate fast economic growth by any and every possible means. . . . If unequal distribution of income induced greater savings and investment . . . then this must be accepted as the price of fighting unemployment.” (Goh, 1972: 275)
By the late 1970s, a strong shift in parents’ preference towards an English-medium education for their children had resulted in a rapid decline in the number of vernacular schools.
Throughout the 1960s and 1970s, there was a shift of parents’ preference towards educating their child in the English stream. This shift, together with a period of minimal intervention in terms of educational policy and assistance to the minorities by the government, caused the number of enrolments in vernacular schools to rapidly decline. The socio-economic gap also widened between the Malays and Chinese, as the Chinese community enjoyed greater occupational mobility relative to the minorities. This can be seen in the shift in the lower manual occupation category, from a relatively equal proportion in 1957 to a 10 percent difference in 1980 [Table A]. In 1980, the average Malay household income was only 73.8 percent of the average Chinese household income. The income gap widened considerably by 1990, where the average Malay household income dropped to 69.8 percent of the average Chinese household income [Table B] (Rahim, 1998: 19-22). Decades after the lofty promises were made by the government, the Malay community’s slide into marginality continued.
Table A

Table B
Wait, the gap got bigger? Did the government do anything?
In 1979, Education Minister Dr Goh Keng Swee with the Education Study Team released a report on the Ministry of Education, more widely known as the Goh Report. The team was made up of 13 members, most of them systems analysts and economists, and none of whom ‘possess much knowledge or expertise on education’ (Goh Report, 1979: 1). The all-Chinese team excluded social scientists and educationalists, as the Education Minister had little regard for their expertise (Rahim, 1998: 121). The Goh Report made recommendations for radical changes to the educational system, recommendations which then became the basis of the New Education System (NES).
During a time when Tamil, Malay and Chinese schools were getting closed down due to declining enrolment numbers due to the popularity of English medium ones, the Special Assistance Plan (SAP) was introduced in 1978 to preserve and develop nine Chinese schools into bilingual (Mandarin and English) schools while retaining the values and traditions of a Chinese school. As part of the NES, these schools were to be the only ones to offer the Special course which the top 10 percent scorers of the PSLE are eligible to opt for. With these schools getting more resources, better facilities and the best teachers, the SAP contradicts the multi-racial principle of giving equal treatment to the non-English language streams. This exclusivity and the elite status of SAP schools affords its students better opportunities and advantages that are virtually out of reach for many minorities in Singapore. Effectively, the SAP is an institutionalized form of ethnic/cultural favouritism (Rahim, 1998: 130)
The NES also introduced early streaming for students which further exacerbated existing inequalities. Despite primary school education being free for all Singaporeans, families with better financial means have a huge advantage in preparing their child for streaming through additional tuition and better preschool choices#. (Barr & Low, 2005: 177) As we have seen from the disparity in household incomes between the Chinese and Malays, early streaming served to widen the gap between the haves and have-nots. The have-nots, more often than not, find themselves in the lower streams, trapped with very limited options providing upward social mobility. They will have to face an insurmountable task to lift themselves and their future generations out of their current predicament.
In 1982, the PAP slogan “a more just and equal society” was quietly dropped from the party’s constitution. This signaled an end to the socialist ideals that the party built its identity upon.
Why? It can’t be that the government favours one race over another...can it?
Examining the PAP leadership’s attitude towards the different cultures and ethnicities is key to understanding what the government values and how these values shaped its policies. Prime Minister Lee Kuan Yew, as quoted in the Goh Report, extolled the values of East Asian philosophies: "The greatest value in the teaching and learning of Chinese is in the transmission of the norms of social or moral behaviour. This means principally Confucianist beliefs and ideas, of man [sic], society and the state" (Goh, 1979: v). The government’s championing of SAP schools and ‘Chinese values’ is also complemented by the launch of ‘Speak Mandarin Campaign’ in 1979.
In 1991, Prime Minister Goh Chok Tong espoused similar values as his predecessor, praising the virtues of ‘Confucian dynamism’ and claiming that Singapore would not be able to thrive and prosper without the Confucian core values of thrift, hard work and group cohesion. The fear of erosion of the Chinese cultural identity was never matched with a similar concern for the erosion of minority cultural identities, where the minorities were “expected to submit to a form of partial or incomplete assimilation into a Chinese-generated, Chinese-dominated society.#” (Barr & Low, 2005: 167)
On top of favouring Chinese cultural values and identities, the PAP leadership associated the cultures of the minorities with negative connotations. Speaking about a Malay who did well in business, Senior Minister Lee Kuan Yew described the man as “acting just like a Chinese. You know, he’s bouncing around, running around, to-ing and fro-ing. In the old culture, he would not be doing that” (Han, et al., 1998: 184). In a Straits Times article on 26 June 1992, SM Lee also implied that the Chinese are inherently better at Maths, and that "If you pretend that the problem does not exist, and that in fact (the Malays) can score as well as the Chinese in Maths, then you have created yourself an enormous myth which you will be stuck with.+"
These attitudes from the ruling elite translated into more policies that preserved the advantage of the majority. When faced with the “pressing national problem”* of a declining birth-rate of the Chinese, the government took steps to ensure Chinese numerical dominance in Singapore. The Singapore government encouraged the immigration of skilled workers from countries like Hong Kong, Korea, and Macau, countries which were accorded the status of ‘traditional sources’ of foreign labour (Rahim, 1998: 72). Meanwhile, showing the government’s preference and/or dislike for specific groups of people, Malaysian Malays faced great difficulty in getting work permits. (“‘Harder’ for bumiputras to get S’pore work permits.+”, The Straits Times, 7 Mar 1991)
Another policy which worked to preserve the advantage of the majority was the urban resettlement programmes of the 1960s and 1970s. This resulted in the dissolution of the Malay electoral strongholds in the east, undermining the organic growth of Malay political grassroots. When it became apparent in the 1980s that the Malays were moving back to the traditional Malay residential areas, an ethnic residential quota, labelled the Ethnic Integration Policy, was implemented. The rationale behind the quota was to ensure a balanced racial mix, purportedly for racial harmony. However, this rationale does not stand up to scrutiny in the face of numerous academic studies on interethnic urban attitudes and relations**. Another consequence of the policy is the reinforcement of racial segregation when taking into account the income disparity between the races. Underlining the weakness of the government’s reasoning, constituencies like Hougang were allowed to remain Chinese residential enclaves despite its population being approximately 80 percent Chinese. (Rahim, 1998: 73-77)
Perhaps the most controversial policy introduced was the Graduate Mothers Scheme. It was introduced in 1983 to reverse the trend of falling fertility rates of graduate women versus the rising birth-rate of non-graduate women***. In a push to encourage graduate mothers to get married and have children, Deputy Prime Minister Dr Goh Keng Swee unveiled a suite of incentives; all-expenses paid love-boat cruises for eligible graduate singles in the civil service, a computer dating service, fiscal incentives, and special admissions to National University of Singapore (NUS) to even out the male-female student ratio#. At the other end of the spectrum, lesser-educated women were encouraged to have smaller families in a scheme called the Small Family Incentive Scheme. This was achieved by paying out a housing grant worth S$10,000 to women who were able to meet the following set of conditions: be below 30 years of age, have two or less children, educational level not beyond secondary school, have a household income totalling not more than S$1,500 and willing to be sterilized#.
Based on the average household income statistics, a simple deduction could be made that those eligible for the sterilization programme were disproportionately from the minority communities.
Isn’t that eugenics?
Yes. Singapore had a government-established Eugenics Board.
The graduate mothers and sterilization programmes were greatly unpopular and were ultimately abandoned or modified after the PAP’s mandate took a 12.9 percent hit in the 1984 general election. However that did not mean that eugenics stopped being an influence in policy-making.
In his 1983 National Day address, PM Lee stated that when it comes to intelligence, “80 per cent is nature, or inherited, and 20 per cent the differences from different environments and upbringing.” This is telling of the role that eugenics, biological determinist and cultural deficit theories played in the formation of PAP policies.
To further safeguard Singapore from “genetic pollution” (Rahim, 1998: 55, Tremewan, 1994: 113), the Ministry of Labour in 1984 issued a marriage restriction between work permit holders and Singaporeans. The work permit holder would have his work permit cancelled, be deported and be permanently barred from re-entering Singapore if he were to marry a Singaporean or permanent resident without obtaining prior approval. Approval from the Commissioner for Employment would only be given if the work permit holder possesses skills and qualifications of value to Singapore.
Doesn’t sound to me like the government targets any particular race with its policies.
Deputy Prime Minister Lee Hsien Loong in 1987 rationalized that certain posts in the Singapore Armed Forces had been closed to Malays for "national security" reasons. He claimed that this policy was implemented to avoid placing Malays in an awkward position when loyalty to nation and religion came into conflict. PM Lee also added that the Malays behaved more as Malay Muslims than as loyal Singaporeans. PM Lee and DPM Lee’s statements finally made explicit what many suspected to have been an implicit rule. It could be observed that, despite being overrepresented in the civil service, Malays tend to stay in the lower-to-middle rungs of organizations like the SAF. It is also noteworthy that, to date, no Malay has held important Cabinet portfolios such as Minister of Defence, Minister of Home Affairs, Minister of Foreign Affairs, and Minister of Trade and Industry.
The conflation of loyalty to the country with approval of the ruling party proved to be patently flawed, as studies by the Institute of Policy Studies (ST, 30 Sept 1990: 22; IPS, 2010) indicate that Singaporean Malays showed a stronger sense of national pride and identification compared to the other major ethnic groups. The study also found that Citizen-Nation Psychological Ties (CNP) scores, that is, national loyalty, weakens with: higher socio-economic status, Chinese, youth, and political alienation. Even when the Malays have been historically disenfranchised, they were found to be proud to be Singaporeans, loyal to Singapore and more willing to sacrifice for the nation than the other ethnic groups.
Additionally, Minister of Defence and Deputy Prime Minister Goh Chok Tong threatened to withhold aid to the Malay self-help organization Mendaki in 1988. The threat was issued over an incident during election night where several Malays in a crowd of Workers Party supporters had jeered at PM Goh at a vote counting centre. It became apparent from this incident that any aid offered by the government was tied to loyalty to the PAP instead of it being the duty of the government to serve Singaporeans regardless of party affiliation^^.
There have always been Malay PAP Members of Parliament (MP), did they not help fight for these issues?
The Malay PAP MPs are in the unique position of having to represent not only people of their constituents but also the rest of the Malay Singaporeans while toeing the party line. With many of the government policies being unhelpful towards the Malays, it is near impossible to fulfill this role satisfactorily. PAP MPs Ahmad Haleem (Telok Blangah) and Sha’ari Tadin (Kampong Chai Chee, Bedok) were both made to enjoy early retirements from their political careers for bringing up “sensitive” issues of the Malay community^^^. This set the tone for future PAP Malay MPs to remain unquestioningly in step with the leadership, regardless of their personal agreement, in order to have a long career within the party. Today, Malay PAP MPs have continued with the trend of parroting PAP policies that ran against the interests of the Malay/Muslim community (e.g. Environment and Water Resources Minister Masagos Zulkifli and Minister-in-charge of Muslim Affairs Yaacob Ibrahim with regards to the tudung issue).
What about the Mendaki and the Tertiary Tuition Fee Subsidy (TTFS)?
The policy providing free education for all Malays was ended in 1990 despite opposition from the Malays and the opposition party[Col: 126]. In its place, Mendaki introduced TTFS in 1991 to subsidise the cost of tertiary education in local institutions for those living in low household income. Due to the long history of marginalization and the widening of the inequality gap, the number of Malays who were able to make it to tertiary education institutions, especially in local universities, have been disproportionately low compared to the other ethnic groups. As such, the number of students able to benefit from this subsidy is even lower.
It was only recently, 20 years after the introduction of the subsidy, that the criteria for eligibility underwent revision. The revision takes into account the size of the family of the applicant, allowing for more Malay students to benefit from it. However, this subsidy is only one measure in an attempt to ensure that Malays students who were able to qualify for tertiary education are able to do so. Short of totally ditching streaming, more care, thought and resources are needed to lift the quality and accessibility of education for the Malays, especially in the early years of a child’s education.
So what needs to happen now?
Singaporeans, especially politicians, need to move on from making assertions similar to what PM Lee had made in 1987, that the "problem is psychological . . . if they try hard enough and long enough, then the education gap between them and the Chinese, or them and the Indians, would close. . . . Progress or achievement depends on ability and effort." It is important for Singaporeans to recognize the nearly Sisyphean task faced by marginalized communities in improving their socio-economic standing. Handicapped right from the start, their perceived failures in our “meritocratic” society should not be judged as an indictment of their efforts, but influenced in no small measure by the failings of the state in dragging their feet to take action. As a community, Singaporeans need to actively combat negative stereotyping, and move away from policies that were rooted in eugenics. Government intervention into ensuring unbiased, fair hiring practices would also help in raising the standing of the marginalized minorities. It would be impossible for Singapore to live up to its multiracial, meritocratic ideals without making fundamental changes to the above mentioned policies.
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# Academic journal behind a paywall. Most tertiary institutions should have partnerships with these journals, so you are likely able view them if you have a student email address.
+ Online scan of the article is unavailable
\* The declining birth-rate of the Chinese was one of three pressing national problems, according to PM Lee in a National Day rally speech in 1988; the others being education and the growing number of unmarried graduates [at approx 29 mins].
\* From Lily Zubaidah Rahim’s* The Singapore Dilemma (1998: 76-77): Rabushka’s (Rabushka, Alvin (1971), ‘Integration in Urban Malaya: Ethnic Attitudes Among Malays and Chinese’, 91-107) study found that it was common for people living in ethnically homogeneous areas to adopt favourable attitudes towards other ethnic groups. People who resided in ethnically mixed areas but did not mix with other ethnic groups were also found to hold negative attitudes towards others. He postulated that physical proximity coupled with superficial interaction across ethnic lines may in fact lead to heightened contempt for other ethnic groups. Urban studies (Fischer, Claude (1976), The Urban Experiment*) have similarly found that close physical distance of different ethnic groups does not necessarily result in narrowing the social distance between the communities. Indeed, physical ethnic proximity in large cities may well engender mutual revulsion and a heightening of ethnocentrism. These research findings have been corroborated by several Singaporean studies (Hassan, Riaz (1977),* ‘Families in Flats: A Study of Low Income Families in Public Housing’; Lai, Ah Eng (1995), ‘Meanings of Multiethnicity: A Case Study of Ethnicity and Ethnic Relations in Singapore’) which have found interethnic relations in the ethnically integrated public housing flats to be relatively superficial.
\** In the same article, PM Lee drew a straight line connecting the Malays with lower educational levels in this line of rhetoric questioning: “Why is the birth rate between the Malays, and the Chinese and Indians so different? Because the educational levels achieved are also different.”*
^ The stronger representation of Malays in civil service and Western multinational corporations was likely due to the difficulty in seeking employment in local firms. Prevalence of negative stereotyping of Malays meant that a Malay job applicant has to be much better qualified to be considered for a job in a local firm (Rahim, 1998: 25). A recent study into this phenomenon can be found here#.
^^ The PAP’s quid pro quo policy was put under the spotlight again in 2011, when PM Lee made it clear that the government’s neighbourhood upgrading programmes prioritised PAP wards over opposition wards.
^^^ PAP MP Ahmad Haleem raised the “sensitive” issue of the government’s exclusionary policy towards Malays in National Service, which adversely affected socio-economic standing of the Malay community [Col: 144]. PAP MP Sha’ari Tadin was actively involved in Malay community organizations and helped to organize a 1971 seminar on Malay participation in national development (Rahim, 1998: 90).
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Recommended Reading:
The Myth of the Lazy Native: A study of the image of the Malays, Filipinos and Javanese from the 16th to the 20th century and its function in the ideology of colonial capitalism [pdf].
The Singapore Dilemma: The Political and Educational Marginality of the Malay Community.
Eugenics on the rise: A report from Singapore#.
Assimilation as multiracialism: The case of Singapore’s Malay#.
Racism and the Pinkerton syndrome in Singapore: effects of race on hiring decisions#.
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References:
Bedlington, Stanley (1974), The Singapore Malay Community: The Politics of State Integration, Ph.D. thesis, Cornell University.
Chew, Peter K.H. (2008), Racism in Singapore: A Review and Recommendations for Future Research, James Cook University, Singapore.
Fook Kwang Han, Warren Fernandez, Sumiko Tan (1998) Lee Kuan Yew, the Man and His Ideas, Singapore Press Holding.
Goh, Keng Swee (1972), The Economics of Modernization and Other Essays, Singapore: Asia Pacific Press.
Michael D. Barr & Jevon Low (2005) Assimilation as multiracialism: The case of Singapore's Malays, Asian Ethnicity, 6:3, 161-182, DOI: 10.1080/14631360500226606
Rahim, Lily Z. (1998), The Singapore Dilemma: The political and educational marginality of the Malay community, Kuala Lumpur, Oxford University Press.
Shaharuddin Ma’aruf (1988), Malay Ideas on Development: From Feudal Lord to Capitalist, Times Book International, Singapore.
Tremewan, Christopher (1994), The Political Economy of Social Control in Singapore, London, Macmillan.
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Long-term capital gains refer to investments held more than a year, and tax rates are 0%, 15% or 20%, depending on income amount and filing status. Qualified dividends are taxed at the capital ... Trading income is not self-employment income, so TTS traders don’t owe SE taxes. Using an S-Corp, TTS traders create earned income to maximize health insurance and or retirement plan deductions. Costs related to outside accounting and tax services; Interest expenses for margin loans and other debt used in trading activities; 4. A trader is not subject to the self-employment tax. Unlike other Schedule C taxpayers, the profits from trading are not subject to the self-employment tax, which is a positive. This is the income from which you pay tax on intraday trading profits in India. For instance, if you made Rs 1,00,000 from intraday equity trading, Rs 50,000 from intraday F&O trades and Rs 10,00,000 from your salary, then your total income liability is Rs 11,50,000. Margin Trading. Banks may extend finance to stockbrokers for margin trading. The Board of each bank should formulate detailed guidelines for lending for margin trading, subject to the following parameters: (a) The finance extended for margin trading should be within the overall ceiling of 40% of net worth prescribed for exposure to capital market.

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Income Tax On Intraday Trading Profits

Business income is added to a person's total income and they are obliged to pay according to the prevailing tax rates. Intraday trading karne ka ek fayda yah hai ki aap apne losses se bhi thoda ... What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... Have you always wondered what it means to trade on margin? In this video, you’ll learn what margin trading is and if it is a strategy that could help you ach... ACCOINTING Explains - Episode 14. Crypto Margin Trading Fees ... applications also allow the trader to club all such transactions under ‘income’ and calculate the appropriate ‘income tax ... Three types of taxes (Income Tax, Short Term Capital Gain Tax & Long Term Capital Gain Tax) you have to give when you generates a profit in share market. How we can set our loses to some next years.

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