Diane – your article in the National Post concerning income trusts was excellent, and hit the nail on the head. As a person that is currently semi-retired, I rely heavily on the income generated from my income trusts but am not spending anything right now until I see what is going to happen at the end of 2010. If all of the other retirees have the same attitude as me, no wonder money isn’t flowing. I have stopped putting money into the markets, no point in putting any in as the only stocks that were any good were those that were trusts and paid an income. Dividend income isn’t any good as they pay such a small percentage. A good income trust with a 10 to 20 percent return can be lived on, but dividend income can not.
Currently I pay a lot of money into income tax because of my trust income, but that income is eroding, one of my trusts switched to a corporation, I now only get π of the income from that company than what I used to, and consequently I will pay less income tax next year than last, and that only hurts the government coffers. I will wait to see what happens, and if Mr. Harper does not reverse his position on trusts, then I will start investing in the US equivalent as I need to maintain my income level.
During the election campaign, I watched Mr. Harper discuss how distressed his mother was over the losses in the stock market and how it was affecting her income. Later, when being interviewed on TV from Washington at an economic conference he stated that he did not like to interfere with the free market system, and he would protect the most vulnerable, the seniors. He has interfered with the free market system with his income trust decision, and he has definitely hurt the most vulnerable. He has protected nobody but the large pension and insurance corporations.
With my income the way it currently is, I would most likely lose most of my pension income as it will be clawed back. If the income trust tax does come to pass, not only will the government get a lot less tax from me, but I will also be collecting my full pension and income supplement which costs the government a lot more money. My standard of living will dramatically drop. Mr. Harper’s mother, and myself really want to thank Mr. Flaherty and Mrs. Harper’s Son for tampering with the income trusts.
In December, Mr. Flaherty and Mr. Harper reversed their decision on the mini-budget they were proposing, after the 3 muskateers ganged up on him, Mr. Harper indicating that he had made a mistake, he had miss calculated the ramifications it would have. He was humble enough to recognize a mistake and try to take measures to correct it in January, 2009. I urge him to recognize the mistake he made in tampering with income trusts, reverse his decision, and help me and millions of other Canadians get the value of their income trust shares back as well as retain our monthly distributions so we can continue to pay our share of income taxes and support the government.
As a side point, one of the guests on BNN indicated that he was investing in Hydro Brazil, in order to replace the income he would lose in 2011 when the income trust change happens. Personally I will be taking a lot of money and investing it outside Canada as will many others due to the decision to tamper with income trusts, and with all of this money flowing out of the country, this is definitely hurting the economy.
Thanks again for your wonderful article, it is too bad the people in government weren’t as intelligent as you.
Monday, April 27, 2009
Posted by Fillibluster at 8:06 PM