Really, why would anyone in their right mind want to pay taxes to Ottawa if such tithing isn’t even acknowledged? Perhaps this is behind Mulroney’s madness. Maybe Mulroney had insight from his years in government into how the Department of Finance fails to acknowledge the taxes that are paid by Canadians on RRSPs and retirement accounts. Or as former Finance official Jack Mintz confided “Finance was wrong to treat the impact as zero.”
As for Mulroney, earning income and not paying taxes simply meant failing to live up to one of society’s most basic obligations, called paying your own way.
The corollary to Mulroney’s situation, would be to actually pay taxes to Ottawa, but for Ottawa to not acknowledge their receipt or existence. That’s exactly what the income trust fiasco is all about: the non acknowledgement by the Harper government that taxes are being paid to Ottawa on the 38% of income trusts held in RRSPs. This is how Jim Flaherty concocts his false tax leakage argument. By ignoring the taxes paid on 38% of income trusts held in RRSPs. This is fraudulent, as there is no credible economic or finance reason to not acknowledge these taxes. As bad as that is, the problem is then compounded by the Harper government, who then used this flawed methodology to devise a policy that is regressive to these very people whose taxes are not being acknowledged. As further punishment, these people are losing an important investment choice and have sustained a permanent loss of $35 billion in their life savings, as a sole result of Harper’s actions, which are the corollary to Mulroney’s.
Failure to acknowledge taxes on the part of government is as socially unacceptable as the failure to pay taxes. If I am not mistaken, this was the flash point for the American Revolution. Taxation without representation.
Meanwhile all Canadians will pay for this income trust tax policy blunder, as the Harper government has already precipitated the loss of $1.4 billion in annual taxes to fix an alleged $500 million problem. But it gets worse. The Harper government’s decided preference for foreign investors like Li Ka Shing and Abu Dhabi Energy will mean that Ottawa will forego an eventual $7.5 billion in annual taxes.
Who would want to share in that manufactured liability? Which political party wants to stand idly by, as that inevitable outcome visits upon tax paying Canadians? Brain Mulroney included, bless his belated voluntarily disclosed retroactive soul.
Thursday, December 20, 2007
Posted by Fillibluster at 10:33 AM