Garth Turner holding the mike. CAITI President Brent Fullard speaking
Last night I along with over 1,000 of my closest friends attended the Stephane Dion presentation in Oakville hosted by Liberal MP Garth Turner. (DUI was also there, but I have excluded her from the aforementioned total).
My question for Stephane Dion was a gift. By that I don’t mean that my question was a lay-up softball question, but rather that I presented Stephane with a gift as opposed to a question per se. The gift I provided to Stephane consisted of four documents:
(1) 18 pages of blacked out documents that allegedly are the “proof” of tax leakage
(2) A letter from the Department of Finance requesting the 18 pages of blacked out documents be returned immediately
(3) A Department of Finance memo dated October 31, 2006 stating, in effect, that the double taxation of income trusts will lead to leveraged buyouts of the vulnerable trusts by private equity, which will lead to a loss of tax revenue to Ottawa, as the memo acknowledges the tax advantages to leveraged buyouts
(4) A memo describing to the Liberal Party how they should message this income trust issue in terms of the broader issues involved: broken promise, false pretense for broken promise, complete lack of transparency, no consultation, no accountability, reverse outcome of what policy ostensibly was supposed to achieve, foreign takeovers, displacement of Canadian investors, two tiered pension system, special tax carve out for pension funds., major loss of tax revenue costing all tax payers Etc
These four documents constitute a how to guide for Stephane Dion to win the next election. In Garth’s portion of the presentation he made the point about the loss of jobs under Stephen Harper and used the layoffs at GM’s truck assembly plant in Oshawa as emblematic of job losses. I made the point to Stephane that the layoffs at GM are not something that can be laid exclusively at the feet of the Harper government, whereas the 2,500 layoffs at BCE are the sole cause of the LBO of BCE which was the sole outcome of the income trust double tax that precluded BCE from becoming an income trust. I said these job losses also came with the loss of $800 million a year in taxes to Ottawa from the LBO of BCE.
I encouraged the Liberals to use the income trust failed policy as the basis to point out the incompetence of the Harper government and reveal their deceitful practices concerning the manufactured concept known as tax leakage.
Stephane Dion responded by saying that Liberal Party is committed to its 10% Plan, for which the 10% tax is fully refundable to all Canadians, including RRSPs. As you may know, CAITI has not supported this plan since there it does not jive with the fact that there is no tax leakage and hence why disfavour foreign investors and since the Liberals have not been explicit on whether new trusts will be allowed and whether existing trusts will be constrained as to their growth. That said, the Liberals have taken this issue a long way towards the proper policy position.
Thursday, August 21, 2008
Posted by Fillibluster at 12:57 AM