Definition of "tax arbitrage" from the Financial Dictionary.com:
“Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.”
To wit, the Tax Arbitrage Plan explicitly created by Harper in his so called Tax Fairness Plan, in which RRSPs pay Harper’s 31.5% income trust tax, and pension funds do not, as per these tax arbitrage takeovers over the recent months and days:
Teachers’ buying BCE
OMERs buying Teranet
OMERs buying Golf Town
Caisse buying Legacy Hotel REIT
Public Sector Pension Plan buying Thunder Energy Trust
Public Sector Pension Plan Retirement Residences REIT
BCIC buying CHIP REIT
These takeovers amount to the 75% of Canadians without pensions, in effect, funding the pensions of the 25% of Canadians with pensions.
This amounts to a stealth transfer of wealth by arbitrary and unfair tax policy edict means.
Rather than stemming alleged tax leakage from income trusts, which never existed in the first place, the $95 billion of trust takeovers had CAUSED $2 billion in annual tax loss to Ottawa. As such, this scheme of Harper's means that all tax payers are paying for his incompetence and intellectual corruption.
Thursday, September 4, 2008
Posted by Fillibluster at 11:45 AM