Saturday, November 1, 2008

BNN’s Amanda Lang asks the operative question

See also:Question for Amanda: What’s not to like about a retroactive double tax that’s applied discriminatorily using false pretenses?

On yesterday’s BNN show Squeeze Play, host Amanda Lang asked the operative question, which to paraphrase, was “if income trusts were shut down because of a tax advantage, then why are the pension funds allowed to keep their tax advantage?”

A perfect example is the present bid by OMERs to acquire Teranet Income Fund. Teranet income fund is taxable at the rate of 31.5% in the hands of its current public owners. OMERs will not have to pay this tax.

This is called a tax arbitrage. Government induced tax arbitrage. Such an arrangement is anything but “tax fairness” or “leveling the playing field”. So what exactly is Flaherty’s explanation for this gross disparity? Some Canadians are more important than others?

How will the ownership of Teranet by OMERs as an income trust, resolve any of the alleged problems with income trusts? It defies logic. It defies reason. What is Flaherty’s defense?

See Amanda’s comments at about the 8:10 mark at:

Bravo Amanda! Inquiring minds need to know.


Dr Mike said...

This is the very question we have been asking for 2 years.

Why did it take her so long to ask it??

Why did she not ask Flaherty on his many visits to her show since he is the only one who should have an answer.

This is an inequity pure & simple & should have been addressed on day one.

It comes down to the fact that what is good for a few Canadians is not good for the majority of Canadians.

Flaherty , you have a lot of splainin to do.

Dr Mike Popovich.

James Bowie said...

Amanda Lans is pretty much the best reason to watch TV I've ever come across. What a smart lady.

Anonymous said...

Amanda, the short answer is that Harper and Flaherty don't really care about economics, logic, honesty, nor integrity, all they care about is shutting down the Federal Government with their wrecking crew.


Anonymous said...

Conservatives stand up for public sector pensioned employees and the payrollers (more votes) and make sure they get deluxe treatment. But people who save their own money and want to provide income from their investments are singled out for brutal unequal treatment and attacks by CRA and the Dept. of Finance. And they do it publicly and without shame while crowing about how they've "reduced taxes" (the GST!! oh my lord what fools).

Hardworking Canadians without cushy gov't jobs get a shell game of RRSPs (RRSP's are about you assuming risk in exchange for ensuring double dipping taxation of the government). But gov't employees get deluxe pensions paid for by robbing the rest of us. Certainly Harper and Flaherty will enjoy massive public pensions for their time on public payroll.

But hardworking farmers, plumbers carpenters, and entrepreneurs of all sorts who put money into income trusts have been punished by the worst crop of liars we've had in government since 1867. Thank god there's someone like Amanda to hold their feet to the fire (and to look at - I could watch BNN all day!). She needs to be much more cutting and aggressive with Flaherty next time he appears on BNN.