We learn today that Claude Lamoureux is calling for a National Pension Reform Summit.. This mirrors what the C D Howe Institute called for last week. This has become necessary because these two groups, along with other commercial interests like Power Corp and Manulife, interfered with the normal forces of the free markets and Canadian's chosen preferences for saving for retirement.
The emergence of the income trust market was the free capital market’s evolutionary response to how to provide a means for Canadians to provide income for retirement in a protracted low interest rate environment. It had the ancillary side benefit of maximizing the government’s take of the profits of Canadian businesses structured as trusts, by taxing them at the much higher marginal tax rates of individuals, which the Department of Finance can tell you is an average of 38%.
Groups like the CD Howe Institute and the Ontario Teachers’ Pension Plan worked in concert with Flaherty and/or applauded his actions, to bring about the demise of the free market’s solution to the dilemma of providing income during retirement. Not realizing these retirement challenges that were exacerbated by their actions, they are now calling upon the government to fix the problem ....at the expense of the taxpayer, no doubt.
CD Howe and Ontario Teachers’ are the problem. Their statements of today are in complete hypocrisy with their actions of the past. For Teachers’ supportive position on Flaherty’s income trust blunder, (which was of net benefit to Ontario Teachers' as it provided them with a private income trust carve out, free of tax click here.
For CD Howe’s, simply read Finn Poschmann’s utterly lame and fact free testimony at the public hearings in February 2007.
Tuesday, June 3, 2008
Posted by Fillibluster at 3:12 PM