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.
Jul 23 2008
Wednesday, July 23, 2008
Posted by Fillibluster at 10:43 PM