No Trust in Government
Posted on November 1, 2006
Filed Under Politics, News |
and for many, no more money in income trusts.
CBC.ca - TSX tumbles on income trust reaction
TheStar.com - Flaherty stands firm
During the January 23, 2006 election campaign, Harper promised to preserve income trusts by “not imposing any new taxes on them“. Well, while you were out trick or treating with the kids…. they did.
The new taxes will provide $500 million to the government… how much did it lose today with the evaporation of $27+ billion in assets. For the most part those assets are owned by seniors, retirement plans, and individual investors from Canada. Thus, the reinvestment of those assets would have been in Canada, benefiting the government through other taxes.
To help keep the vote of seniors, the tax rules also changed them. An increase to the age credit amount by $1000, and the introduction of income splitting. By taxing income trusts, it will decrease the distributions they pay. Much of it being paid to seniors… so if the seniors income is getting cut because of the new taxes on income trust, there won’t be very much income to split. An there won’t be any income from capital gains on the trusts, since they have all plummeted to new lows.
The Canadian economy has been flat (near recession) for a couple of quarters. This was a great way to kick the stone off the cliff. FYI, good recession stocks are utilities, energy, and consumer staples. We all need to eat, say warm, and see in the dark, regardless of the market.
Hey Stevie, hope you enjoy the few remaining days at 24 Sussex. The Ways and Means motion will cause your government to fall.
Catch the action at ParlVU, or via CPAC’s Podcast.
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