Below is the testimony provided by Mark Carney before the Finance Committee on December 5, 2007.
At that point in time, income trust investors had lost over $35 billion in their life savings because of the income trust tax policy that Mark Carney was responsible for while in the Department of Finance. This policy was designed to deal with the alleged tax leakage that was caused by income trusts. Mark Carney’s proof for alleged taxleakage takes the form of 18 pages of blacked out documents.
When asked about the negative consequences of his tax policy on Canada, as it pertained to the $40 billion in takeovers that it had induced and the loss of over $1 billion in tax revenue loss that it had cost, Mark Carney provided MP Garth Turner with a very evasive answer that went off on some tangent about how the stock market was up over the last year and a half.
What does that have to do with the price of tea in China? And now that you mention it, the TSX is no longer “up” in value, since it has lost over 10% of its value in the last four trading days, essentially wiping out all the gains that you were so effusive about.
When will you answer Garth Turner’s question about the takeovers and loss of taxes that your policy resulted in? Or have you moved on to greener pastures in your new role as Governor of the Bank of Canada?
Hon. Garth Turner: A year after the decision more than $40 billion in Canadian trusts have basically been sold and it would appear that the better part of a billion dollars worth of tax revenue is not flowing into government treasury that was before.
Given that, I have two questions. One, did you anticipate the consequences of the advice that you gave the minister? Secondly, how can you consider to be anything other than a failure?
Mr. Mark Carney: I'll refer to my previous answer, which is that I'm not going to go into the details of advice given to any minister of finance or any minister of the Crown that I gave as a civil servant. I will point out though, as a macro fact, that over the course of the last year-and-a-half, as I'm sure you're aware, the TSX, the largest market, is up substantially. We have a $1.6 trillion market cap on the TSX. It's important to keep context--
Hon. Garth Turner: I know that and I'm not interested in the TSX--
The Chair: I'm sorry, Mr. Turner, allow Mr. Carney to finish answering the question.
Hon. Garth Turner: No I'm not because that's not what I asked him. He can answer a question I didn't ask him if he wants--
The Chair: Do you have another question, Mr. Turner?
Monday, January 21, 2008
Posted by Fillibluster at 2:59 PM