One of my favourite books that I’ve read over the last few years was Atomic Habits by James Clear.  It is a powerful read on how to create life-changing habits in a methodical manner.  In addition to his book, James Clear also has a great newsletter that he sends out every Thursday called The 3-2-1 Newsletter which includes three short ideas from James, two quotes from others and one question for readers to ponder.  The ideas, quotes and question are usually very thought-provoking, and I look forward to receiving them weekly.  I often share the newsletter with others.  I’d encourage you to subscribe.

I’m passionate about:

1. the study of taxation / taxation policy;
2. leadership and entrepreneurship topics; and
3. economics and public policy (and politics as it relates to one or more of the previous topics).

Obviously, I’m not an expert on all of the above topics (well, on tax, I do have some expertise, but there’s so much to know!), but I love learning and forming opinions on those topics.

With the above in mind and being inspired by James Clear’s very successful newsletter, welcome to my new newsletter which will provide weekly musings as follows:

• one short comment on taxation / taxation policy;
• one short comment about a leadership or entrepreneurship topic; and
• one short comment about an economic or public policy or political comment as it relates to any of the above topics.

Thus, the “1-1-1” Newsletter will be posted on my website and delivered to my subscribers every Wednesday.  If you’re not yet signed up to my mailing list, please do so today!

So, without further adieu, here is today’s newsletter for July 12, 2023:

One Taxation Comment – Owning Personal-Use Property Through a Corporation

I’ve written and spoken about this topic many times before, including in my book, Making Life Less Taxing.  Unfortunately, many business owners who operate their Canadian business through a corporation are under the mistaken impression that they can purchase their cottage or other personal-use property through their company.  Well, I guess you can.  But if you do so, welcome to significant taxable benefits with no easy solution.  This is a common mistake, and before you do that, get proper taxation advice.  Having said that, the advice should ALWAYS be to NEVER purchase such personal-use property through a corporation.  If that is not the advice you are receiving, get a qualified second opinion.  It will be worth it.

One Comment About Leadership – “Walk The Talk”

I first started studying the vast area of leadership after I struggled mightily with how to inspire people as I grew my practice.  The knowledge that I obtained and put into practice helped immensely. One basic concept that has been written about a lot is that good leaders should “walk the talk” with purpose.  In other words, if you want your teammates to be inspired by you, then you should help by setting the example.  In my view, this is simple common sense.  But over the years, I’ve been surprised by some people I know and respect that have expected teammates to follow them simply by virtue of their position or title.  In one case, a friend of mine shocked me once by saying “I’m a partner in firm XYZ…subordinates should simply follow me because of my position”.  I countered his comment by saying he needed to “walk the talk” in order to gain respect.  He vehemently disagreed.  We agreed to disagree with each other. Years later, I still hold this basic principle in high regard:  good leaders need to walk the talk.

One Comment About Economics / Public Policy

In recent years, our Canadian federal government has spent taxpayer funds like a drunken sailor with no regard nor visible plan to having a balanced budget. With rising interest rates and increased spending, the estimated amount that the federal government will spend on public debt charges is expected to grow from $24.5 billion from the 2021-2022 fiscal year to a whopping $43.9 billion for the 2023-2024 fiscal year.  And $50.3 billion for the 2027-2028 fiscal year! [See page 206 at this link here for those projections].  Accordingly, in the span of six years, the debt charges will more than double! My suspicion is that those projections are too low, and the actual debt charges in the coming years will be larger.  For a small country like Canada, those costs are very, very significant and represent a lot of monies that could be available for Canadians such as increased health transfers to the provinces, improved infrastructure, etc.  Ultimately increased public debt charges will result in a poorer standard of living for every Canadian.  Canada needs to get its public spending back into balance.  Now.

Bonus Comment – A Brilliant Quote From Einstein

A friend sent this quote to me today from Albert Einstein:

The intuitive mind is a sacred gift, and the rational mind is a faithful servant.  We have created a society that honours the servant and has forgotten the gift. 

Brilliant.  I hope today’s newsletter has been thought-provoking for you.  I look forward to providing further intuitive content in this newsletter.