Perhaps with the TSX down 10% during the last four trading days, people can get a better appreciation of what it was like and continues to be like for income trust investors who believed Stephen Harper when he solemnly pledged he would never raid their nest eggs by taxing income trusts. These folks experienced a 17.8% drop in the value of their savings. A loss of retirement savings that is perpetuated to this day.
That precipitous move by Harper and Flaherty is the largest loss willfully inflicted on citizens by any government, ever. It has cost 2.5 million Canadians over $35 billion of their life savings and every tax paying Canadian the loss of $1.4 billion in ANNUAL taxes to date .
I think Stephen Harper has a penchant for nuclear meltdowns. He is not fit to lead our country. Difficult times calls for competent and steady leadership. Not shoot from the hip dogmatic nonsense, which in the case of income trusts, Stephen Harper was spoon fed by lobbyists , Gwyn Morgan, Paul Desmarais Jr and Dominic D’Alessandro
Calculation of $35 billion loss:
The income trust market closed on October 31, 2006 at 164.86 as measured by the S&P/TSX Income Trust Index. On the evening of that same day, Finance Minister Jim Flaherty announced that he would introduce a 31.5% tax on income trusts. Two days later the index was at 138.21, This represents a loss of 16.2% which on a $200 billion market represents a loss of $32.5 billion. Two weeks later the index was at 135.51 representing a loss of 17.8% or $35.6 billion.
Monday, January 21, 2008
Posted by Fillibluster at 1:44 PM