Thank you for the article on income trusts. It is one of the few cogent pieces in the press these days not revelling in the froth of panic and disaster.
I wonder how this government can justify throwing billions of taxpayer money at companies who can't make products customers want while squashing a productive income trustsegment of our economy based on a false premise of "tax leakage".
Talk about intellectually corrupt, here's TD Bank's take on things
This letter from Ed Clark’s office, below, is a very conniving little number.
In it, TD Bank is arguing that their customer, David Marshall should like the trust tax because it brought greater certainty, ignoring completely that the greater certainty that Harper had brought to David Marshall was an era to be forgotten. Huh? Sort of like, like it because you don’t like it. This letter obviously was “lawyered” before it went out.
Notice what is IMPLICIT about the known falsehood on the part of TD Bank on the matter of tax leakage, in the use of the words “plan is based on the assertion that the federal treasury has lost millions in tax revenue.”
Then in the next sentence, the “alleged” tax leakage takes on the form of “likely greater tax loss”? What an intellectually corrupt train of thought!
That pretty much confirms that TD Bank knew that tax leakage was a policy hoax. Remember Ed Clark was also the architect of the NEP. The NEP was intended to increase Canadian ownership of our energy sector, whereas the TFP has had the exact opposite having seen Prime West go to Abu Dhabi Energy and TransAlta Power go to Li Ka Shing. The rest of Canada’s 20% oil and gas sector in trusts is sure to go the same way.
Meanwhile all trusts need to be preserved, provided they don’t cause tax leakage, which Ed Clark is IMPLICITLY saying they don’t. Too bad that TD Bank never invested in a retail distribution network, and therefore was no where in the underwriting of income trust new issues. Is that a valid reason for people, like TD Bank customer David Marshall, to lose $35 billion an be deprived of investment CHOICE?
Dear Mr. Marshall,
Thank you for your recent email addressed to Mr. Ed Clark regarding the
Federal Government’s income trusts proposal and the Tax Fairness Plan.
I understand your concern about the changes affecting income trust
investments, as this is an issue that has been raised by others as well.
As you already know, the Minister of Finance’s plan is based on the
assertion that the federal treasury has lost millions in tax revenue,
and the belief that the growing popularity of income trusts would likely
result in greater future losses of tax revenue to the federal treasury.
As I’m sure you are aware, the Government of Canada began a review of
the income trust sector in September, 2005, leading to a great deal of
uncertainty on this issue. TDBFG considers the fact that there is now a
greater measure of certainty in the marketplace on this issue as being
I would like to thank you for taking the time to share your perspective
Manager, Executive Response Team
Tuesday, April 28, 2009
Posted by Fillibluster at 2:28 PM