Flaherty moves decisively to compensate victims of theft

In a decisive act of patriotism and compassion, Jim Flaherty recently provided one of his constituents, Robert Stone, with a new Canadian flag to replace the one that had been stolen from his home in Whitby, Ontario. Please note, it was also an act of great frugality, as every MP receives 100 free 3’ by 6” flags to hand out at will. The fact that this act of great generosity made it into the papers was probably the furthest thing from Jim Flaherty’s mind (see below). Just think of it as the unintended consequence of kindness.

Now that we have witnessed this softer and more compassionate side of Jim, perhaps he may wish to revisit the wisdom of an earlier decisive move on his part to tax income trusts. It’s becoming apparent that this blatant act of theft on the part of Canada’s New Government taking the form of the loss of $35 billion in Canadian’s life savings and the loss of an important investment choice to the 70% of Canadians without pensions isn’t perhaps the most frugal or patriotic tax policy that could have been devised. The recently announced sale of BCE has brought this into sharp focus, not to mention the 20 income trusts acquired in the recent few months. These events have two things in common. First, these Canadian businesses are being acquired predominantly by foreign capital. Foreign financial capital for whom there is no underlying business combination or strategic rationale. Second, as a direct consequence of these purchases by these financial players and Flaherty’s elimination of the 15% withholding tax paid by foreigner investors on interest for leverage buyout loans, there will be a dramatic loss of revenues to the government of Canada. In the case of BCE alone, many in the press have reported the loss will be $1 billion in lost taxes per year. We calculate $793 million a year. Taken as whole, this policy has the very likely potential to decrease Ottawa’s tax base by $7.5 billion a year, in perpetuity. But that’s just the revenue side of the equation. Who knows what the impact will be on spending, as many retirees will no longer be able to sustain themselves with the returns associated with other retirement investments, whose yields are generally half the level of income trusts. Call this the hidden underfunded pension liability that you never read about in the paper, since it only affects the 70% of Canadians without pensions and is not something that can be calculated, however it can be observed in the form of materially reduced standard of living for these affected individuals. The compassion voiced by members of the Conservative party on this matter: “get a life” or “it’s not my fault”. And to think one of the false propositions in the Ways and Means motion fraudulently read: “strengthening Canada’s social security system for pensioners and seniors”. Go figure, as Flaherty obviously did not.

Perhaps. Jim Flaherty can learn a lesson from his Whitby constituent, Robert Stone. Nest time you decide to implement an ill thought through tax policy that represents the reversal of an explicit election promise, perhaps it would be wise to run it up the flag pole first, and see how many people salute it.

Meanwhile, good luck ever replacing these businesses lost to foreign capital and the associated loss of taxes. This may end up costing Flaherty where it hurts him most. No more free flags to hand out in acts of false patriotism and compassion. These trivial acts of kindness have been superceded by his innate incompetence and “need for speed” decisiveness. And to think, they called one of Canada’s most accomplished Finance Ministers, Mr. Dithers.


Flaherty to replace stolen flag

By ROSALYN SOLOMON -- Sun Media

There will be a new flag in front of Robert Stone's house.

Although it may not be his father's burial flag, he said it will still fly in remembrance of him and all other veterans.

Last Monday, Robert Stone's mother, Mary, discovered her husband's burial flag had been stolen from the front of their Whitby home. Lieut. Robert Charles Stone died this year at the age of 80.

When Finance Minister Jim Flaherty heard about the theft, he decided to present the family with a new one at their home today.

'VERY TOUCHED'

"I was very, very touched," Stone said.

Flaherty's press secretary, Chisholm Pothier, saw Stone's story and sympathizedy. Pothier said the minister felt bad that somebody could disrespect a veteran's family and his office contacted Stone Wednesday night.

"The minister ... ordered a new flag and will present it to them," Pothier said.

Stone said he's learned a valuable lesson and will raise the new flag every morning and take it down every night.

"We're a quiet people, we don't make a big thing about nationalism," he said. "But when I think about that flag, it wasn't just for my father, it was for every veteran or for anyone who has a relative who died recently for this country.

original story