Carole Taylor, head of Flaherty's advisory council, was his accomplice in promulgating the tax leakage lie.

What qualifies Carole Taylor to head Flaherty’s economic advisory counsel? Carole Taylor has demonstrated she has no interest in examining first principles and is willing to jump on the bandwagon and act as Flaherty’s accomplice in promulgating nonsense economic arguments like “income trusts cause tax leakage”. Where’s her proof? Meanwhile 2.5 million Canadians, many of them seniors residing in BC lost $35 billion of their life savings. Great job, Carole Taylor. You are keeping great company in the form of intellectually corrupt Jimmy.

January 26, 2007

The Honourable James M. Flaherty, PC, MP
Minister of Finance
Government of Canada
House of Commons
Ottawa ON K1A 0G5

Dear Honourable Flaherty:

As Minister of Finance for the Province of British Columbia, I am writing in support of your proposed changes to the federal Income Tax Act that impact the tax treatment of income trusts.

I believe the measures you propose are necessary to address the policy and revenue impacts of converting corporations to income trusts. As you note in your October 31, 2006 announcement of the Tax Fairness Plan, there has been an increasing cost in terms of income tax revenues as a result of these conversions. In addition, the conversion of income trusts can result in shifts of tax revenues among provinces and shifts in tax burden among taxpayers. I believe that without action the continued conversions to income trusts would have led to a serious disruption of the tax system.

The measures you propose are appropriate and do provide fair transitional rules for existing income trusts and clear rules for new trusts.

In closing, I would like to thank you for taking the necessary steps to address this issue.

Sincerely,

Carole Taylor
Minister of Finance
Province of British Columbia

pc: Brian Pallister, Chair, Standing Committee on Finance, MP Portage-Lisgar