Thursday, January 29, 2009

Question for Liberals from concerned, and increasingly disillusioned, Senior Citizen

Dear Gentlemen &,

Please reply to me regarding the most disturbing information below. I'm really serious about receiving a reply please!

$7.5 Billion in lost annual tax revenue ($1.2 billion already lost), and we see nothing being done about this?

Just when do you suppose the Liberal Government is going to do something meaningful on this?

Do you remember the $13 Billion extra revenues that suddenly appeared in the Conservative Government's coffers, and that Flaherty/Finance Dept.
in his/its own words. "had no idea where it came from"

I suggest it came from Tax paid by income Trust owners.

Simply put, Owners of Income trusts earned income from disciplined companies that was then either spent or saved!
either way, Taxes had to be paid and the economy was stimulated.
i.e. If spent: GST, Provincial tax and Income tax had to be paid, not only by the Income Trust owner, but also by the companies or individuals
from whom the goods/services were purchased, and who profited from these purchases. Income taxes would also have to be paid by the "employees"
who were employed by these benefiting companies. This is a lot of tax revenue and a huge stimulus for the Economy as a whole!
If saved: a.) other than in an RRSP: Tax would still have to be paid by the recipient, and The Institutions with whom the income (now after-tax savings), was deposited, would have to pay tax on profits earned from the loan or use of these funds; Plus the loans would then also stimulate the economy by being in circulation.
If saved: b.) in an RRSP: The savings institution would pay taxes on the profits made by either holding/investing or deploying the "saved/invested monies" and
eventually the Saver would have to pay taxes once the funds were withdrawn anyway.
any event, the saved money would be in circulation in some form as it simply does not sit unused in an RRSP account. Even in a worst- case scenario,
the Saved funds act as a Pension fund for the Saver, further relieving the Canadian Government of having to pay a pension.

In Conclusion: Income Trusts were a massive boon to all Canadians, whether they owned them or not.

In addition, whether the tax revenue is paid by the individuals or the Corporations, who on earth in their right mind cares, as long as all of Canada prospers ? (Of course I realize there were individuals that cared, like the Head of Power Corp., who as an unregistered lobbyist, urged Harper to kill those Income trusts, because his own financial interests were being harmed by his low paying competing products. Then there was Manulife who's executives also benefitted from the Income trust Massacre, by launching a mere 6 days later, an "Income Plus" product "Guaranteed never to lose your money", and recently, had to be bailed out by their crony Flaherty with taxpayer money... or the other objectors, the directors of Bell/BCE who stood to lose millions in compensation, because if they were to allow their companies to become Income Trusts, the discipline imposed by the structure would severely inhibit their profligate lifestyle.)

Please be kind enough to explain to my why the Liberal Party and it's elected officials like yourselves, refuse to expose Harper/Flaherty's lies regarding the reasons for
imposing a devastating & punitive tax on income trusts, and why you especially Mr Ignatief, have missed this great opportunity to demand that the Income Trust fraud
be reversed as part of Harper's (and now your), new budget?

Concerned, and increasingly disillusioned, Senior Citizen
Oakville, Ontario.

1 comment:

Dr Mike said...

No one cares about us Joe Blows on the street.

This is the time that the trust companies themselves need to go after the Liberal party & show they mean business about reversing this turkey.

Of course , they may have a plan B in the works & their attitude is now who cares.

Crap , maybe no one cares at all.

Now that is certainly depressing.

Dr Mike.