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
Harper created a "tax arbitrage" to favor pension funds, at the expense of RRSPs
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8 comments:
While Harper is obviously intellectually corrupt, it is more disturbing that the media chooses to ignore his policies, which are based on myths and factually unfounded. I can only conclude that the majority of the main stream press in Canada is intellectually bankrupt.
I fail to understand why any democratically minded person would accept major policy changes without transparency and accountability. Harper is a Liar and cannot be trusted.
Flaherty claimed on BNN this week that he can't provide and further transition period to Energy Trusts "because it is law." Well, what exactly is the Election Timing Law that Harper is breaking? Is it not also a Canadian law?
If Harper can break one law to suit his purposes what's to stop him breaking as many as he see fit. Why can't the Income Trust tax changes be reviewed and corrected for fairness. Why can't private pensions and RRSP's be given the same tax benefits.
After all, Harper could change the law rather than break it.
Polyian
You are absolutely right on the money.
The big question is why , why , why.
These guys won`t budge.
Is it out of fear that they will be found out if they revisit this policy??
Is it out of fear that big business & outside interests won`t be appeased??
Or is it merely the fact that they don`t give a flying flip about the guy on the street.
At any rate , it is a shame they have gotten away with this without any investigation into the soundness of this policy.
Dr Mike Popovich
A lib no more
That sure was a high quality post.
Unfortunately , this is typical of the "new" Conservative mentality.
Sad but true.
After supporting the Conservative party for some 37 years , I find this new group of supporters to be inexcusably crass & Unsophisticated.
No wonder I am looking for a new party.
Dr Mike.
A Lib no More
I am a Progressive Conservative who believes in the old fashioned values that come from a handshake being your word.
When you say something it is the truth.
I am not used to what I have come to see from Mr Harper where convenience rather than openness has become the norm.
Maybe I was naive to believe the man---that was the way I was raised---you are only as good as your word.
Fake Dr Mike---what do you mean by that??
I have given you my name.
What kind of mind hides behind a name like Lib no more.
You obviously hide your identity because you are ashamed of what you do or you are afraid of us.
Unless you have something constructive to say , I am done with you.
Anyone who hides behind the cloak of anonymity deserves nothing.
Dr Mike Popovich from Rodney.
Dr Mike says that he "believes in the old fashioned values that come from a handshake being your word."
Well Faux Dr.
Why are you then, a Liberal fart catcher? Why would anybody that has any values and believes in honesty support Liberals.
Come on Dr. Mike. Are you so uninformed that you are unaware of the fountain of Liberal lies that spouted from the mouths of Liberals during the last and previous elections.
Daycare promises for one, from 1993, 1997, 2000, 2002, and even 2006. Thank God they broke that promise or we would all be bankrupt.
Come on Mike, get a grip man.
PS. I'm sorry you did not manage your money well, that you got poor advice, and made poor decisions. Oh well, I got OIL, at 30 bucks a barrel. If you need a loan, just call.
A lib no more said
"Why are you then, a Liberal fart catcher? Why would anybody that has any values and believes in honesty support Liberals."
I guess I MAY support them because they have never lied to me.
How do you figure that I have made poor investments---wild assumption on your part--I have never said anything about what investments that I own.
It was easy to make money off of oil---I bought a wack of Arc Energy at $20 & change--sold it at $31. a few weeks later.
We may be old but we know how to make money.
I am just pissed-off because of the broken promise & then the issuance of 18 blacked-out pages of tax leakage proof which were subsequently recalled.
Maybe you could explain that to me.
Dr Mike.
What's wrong with our grade-school teachers and parents these days.
Computers should never be given to demented, foul-mouthed, hoodie-wearing adolescents such as me.
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