Flaherty's gross hypocrisy and incompetence

Flaherty reveals his enormous financial hypocrisy and gross deception of all Canadian taxpayers.

Today Jim Flaherty approved the purchase of $25 billion of mortgages from Canada’s banks as a form of bailout. Flaherty justified this by saying:

“In fact, he said the government stands to make a small profit from the mortgages because government borrowing costs are lower than what the assets will yield in interest.”

Meanwhile Flaherty, the intellectually corrupt person that he is, caused Canadian taxpayers and seniors to lose $35 billion in their life savings by saying income trusts cause tax losses to Ottawa. He falsifies that argument by ignoring the taxes paid by the 38% of income trusts held in RRSPs. These are deferred taxes. Deferred taxes that grow at the rate of income trust yields. Income trust yields are (by definition) higher than the government’s cost of borrowing. As Flaherty acknowledges in today’s’ bank bailout, this means that $1.00 of deferred taxes on income trusts held in RRSPs is actually worth more than $1.00 in present value terms since:

“In fact, he said the government stands to make a small profit from the deferred taxes paid on income trusts held in RRSPs, because government borrowing costs are lower than what the assets will yield in interest.”

So why dies Jim Flaherty assign ZERO valie to these deferred taxes paid on income trusts? Who put Jim Flaherty up to that scam analysis?

Jim Flaherty had defrauded all Canadians. Those who lost $35 billion of their life savings.....and all taxpayers who are losing $2 billion a year in taxes as a result of the $108 billion of trust tax related takeovers, where Flaherty displaces Canadian taxpayers as owners of Canadian businesses in favour of Middle Eastern oil companies, Hong Kong billionaires and US private equity firms.

This man is dangerous and deceitful in the extreme.