Wednesday, July 23, 2008

Insightful question for Diane Francis (from her blog)

If nothing else, maybe this frees up a quarter acre for the media (certain journalists excluded)

From Diane’s blog:


It makes no sense for any government to willingly allow tax-paying corporations or individuals to be taken out by tax-exempt foreign investors. Is Harper stupid, or is there some other reason in play?

Under the recently amended tax treaty, foreign investors can do an LBO and not have to pay tax withholding on their interest income. The Canadian sub gets the tax deduction, and the foreign parent gets the income free of Canadian tax. The other thing this tax policy does is to handicap Canadian investors (excepting perhaps the big pension funds who are tax exempt too.)

So what's the reason. You've heard the reason from the Snoracle on Nosehill. The reason is to reduce the fiscal capacity of the federal government. Harper is reducing the federal government's taxation powers by eliminating Canadian owners (a.k.a "taxpayers") of corporations and trusts.

The real stupidity here is the NDP. Where have they gone? I think I know. I hear-tell that they've gone to hell, and taken up residence on a quarter acre. Normally they'd have gotten Hell's half-acre but the NDP has become so small-minded that a quarter-acre is big enough.

by kephalos
Jul 23 2008
12:26 AM


Robert Gibbs said...

Interesting premise, supported by the comments and writings of CON hack Tom Flanagan earlier this year.

As for the NDP, any "intellect" or "sound mindedness" that may have resided near their sphere has long ago passed the event horizon and fallen into the singularity to be completely obliterated.

Jack and Judy should instead take up permanent residence on The Gong Show.

Dr Mike said...

Happy Jack & his crew have missed the boat on many issues but have never been snookered as badly as they were on the income trust file.

This party is supposed to be the party of the little guy---protectors of Mom & Pop Canadians across this land--making sure they have the necessities of life thru employment & pensions after years of work.

Well , thanks to Happy & his crew , the greatest wealth maker for seniors & small investors has been nearly flushed down the drain.

I am not sure if Jack was conned or he just does not understand what he has done--not only has he detrimentally handicapped investors but he has ripped billions of dollars of tax from gov`t coffers which are needed to fund the social programs hat he loves so dearly.

Layton & his followers have done this country a great disservice & will pay dearly at the polls come election time.

Dr mike Popovich.

Jiban said...

The "shoring up" is needed because Freddie and Fannie, along with many fiscally responsible banks and responsible homeowners, are "upside down" in terms of their mortgages. This means that the value of their mortgages' underlying real estate is less than their mortgages themselves.

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