31 October 2006

Remember the Income Trust Scandal?

UPDATE - 2 Nov 2006 - Dodge approves Flaherty moves

Despite anguished cries from Bill Graham & the Liberals, this was the right thing to do.
(Bloomberg) -- Bank of Canada Governor David Dodge said today a new tax on income trusts will create a "level playing field" that will help the country's businesses allocate capital more efficiently.
Then there's the Globe & Mail Financial columnist
The decision to allow income splitting for seniors with pensions, RRSPs and RRIFs is quite major. It may save thousands of dollars for couples where one spouse has significant pension income and the other spouse has little or no income. There's also the $1,000 increase in the age credit. Altogether, they mean a lightened tax load for seniors.

This thing may come back to haunt the Liberals yet again.

Perhaps you've forgotten how someone in the Paul Martin cabinet leaked details of the impending Income Trust decision to their stockbroker buddies on Bay St., who then proceeded to make a shitpile of money from this insider scoop.
After the election, The Globe and Mail reported that CIBC had turned over to the RCMP an e-mail that Mr. Brison, then the public works minister, had sent to CIBC World Markets investment banker Dan Nowlan.

The e-mail, a response to Mr. Nowlan's complaint about Liberal income-trust policy, was sent a day before then finance minister Ralph Goodale announced a favourable tax regime for income trusts.
Well, it looks like somebody's had to chain this monster back up.
OTTAWA — Federal Finance Minister Jim Flaherty has announced tough new rules designed to curb the growing corporate move toward income trusts.

“It is a trend that has caused me growing concern. If corporations don't pay their share of taxes, this tax burden will shift onto the shoulders of hardworking individuals and their families.”
And who was it that allowed this situation to get so out of hand in the first place?

That'd be the Liberal Party of Canada... who never miss a chance to howl about those scary Conservatives who march in lockstep with Corporate Canada.

It's too spooky to even think about.

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