Am I turning into a righty?
Hey yaars,
In case you haven't been watching the news over the past few days, many people are in a
furor over the federal government's plan on inserting a tax on "income trusts" which until now were not doubly taxed (like every other investment I can think of). Now I'll be honest, like most people I had never heard of the term income trust until this week, but after reading up just a bit I actually agree with the government's position on the matter.
From what I understand, the federal government will tax corporations on their profits, and also tax stockholders on their individual profits, hence the double-fuck scenario. Income trusts managed to avoid this double-screw somehow through loopholes I presume, and now their time has run out with the feds laying down the law. I'm almost inclined to actually compliment the Tories on a brilliant tying up of loose ends....
Except the concept is a Liberal one!
The Grits proposed this tax during the Martin regime and I'll give everyone one guess as to who was blatantly against such doing. Yes ladies and gentlemen, it was the Tories. I could go on and on about hypocritical policy, of course that's the nature of the beast. If any of us still believed in the oxymoron of 'honest politician', we'd be outraged at this.
It goes without saying that this tax was necessary in order to curb the trend of corporations attempting to grease their way out of owed money. Today's Toronto Star has a great editorial piece on the move where they question why corporations would indulge in income trusts, reducing their ability to re-invest, translating into lack of jobs. If I'm correct, the tax wasn't meant to "take from pension income", it was meant to cease corporations from reducing what little tax they pay at the moment.
All jargon aside, this still won't co-erce me into voting Conservative, though it does cushion my dislike of their government. Yes, I'm still a bleeding-heart liberal!
(And as for Ignatieff jumping on the negative bandwagon. I think that's another case of trying to garner votes from those who've lost money!)
In case you haven't been watching the news over the past few days, many people are in a
furor over the federal government's plan on inserting a tax on "income trusts" which until now were not doubly taxed (like every other investment I can think of). Now I'll be honest, like most people I had never heard of the term income trust until this week, but after reading up just a bit I actually agree with the government's position on the matter.From what I understand, the federal government will tax corporations on their profits, and also tax stockholders on their individual profits, hence the double-fuck scenario. Income trusts managed to avoid this double-screw somehow through loopholes I presume, and now their time has run out with the feds laying down the law. I'm almost inclined to actually compliment the Tories on a brilliant tying up of loose ends....
Except the concept is a Liberal one!
The Grits proposed this tax during the Martin regime and I'll give everyone one guess as to who was blatantly against such doing. Yes ladies and gentlemen, it was the Tories. I could go on and on about hypocritical policy, of course that's the nature of the beast. If any of us still believed in the oxymoron of 'honest politician', we'd be outraged at this.
It goes without saying that this tax was necessary in order to curb the trend of corporations attempting to grease their way out of owed money. Today's Toronto Star has a great editorial piece on the move where they question why corporations would indulge in income trusts, reducing their ability to re-invest, translating into lack of jobs. If I'm correct, the tax wasn't meant to "take from pension income", it was meant to cease corporations from reducing what little tax they pay at the moment.
All jargon aside, this still won't co-erce me into voting Conservative, though it does cushion my dislike of their government. Yes, I'm still a bleeding-heart liberal!
(And as for Ignatieff jumping on the negative bandwagon. I think that's another case of trying to garner votes from those who've lost money!)
posted by Naveed at
6:50 PM
2 Comments:
You know me, I'm all for reducing corporate taxes, but I agree with this one too. Forget avoiding double taxation, most income trust profits don't get taxed period. If you hold something in an RRSP, you don't pay tax on it until it's withdrawn (like at retirement). So profit an income trust produces today doesn't get taxed at the corporate level, and doesn't get taxed at the personal level for decades, perhaps.
That being said, there are still some major loopholes in the new legislation. But at least Flaherty managed to keep his mouth shut on that one, unlike the Liberals.
By
Anonymous, at 12:43 PM, November 04, 2006
In case you couldn't tell, that was me. Peace out homie g
cg
By
Anonymous, at 3:31 PM, November 04, 2006
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