Question from a Liberal delegate: Dear Mr. McKenna

Mr. McKenna:

I am very intrigued by the possibility that you may be considering running for leadership of the Liberal Party. I would strongly encourage you to do so.

I have one major reservation, however. What is your position on income trusts?

Is your position consistent with that of your present employer TD Bank, or is it one consistent with the fact that income trusts do not cause tax leakage and that the argument of alleged tax leakage is a contrived argument that is manufactured by excluding the taxes paid on the 38% of income trusts that are held in RRSPs? These devalued trusts are now being taken over by pension funds and foreign private equity (eg the present takeover of Teranet by OMERs), who are able to avoid paying the 31.5% tax by the mere act of taking “public” trusts private or sheltering their taxable income under an LBO structure. This would only serve to exacerbate tax leakage, if indeed it even existed in the first place.

I look forward to your response, as I will only be supporting a leadership candidate who is interested in the truth behind far reaching tax policies, such as the highly destructive income trust policy that was based on a policy lie and whose outcome has proven it to be a disaster, from all possible vantage points.

Yours truly,

Brent Fullard
505 647-2224