My proposal to Jim Flaherty would generate $2.3 billion in ANNUAL tax revenue to fund EI etc.

Today I proposed a solution to Jim Flaherty’s income trust policy blunder by creating a new savings vehicle that would be situated between the existing RRSP and TFSP retirement savings vehicles and maximize tax revenue for Ottawa. This new saving vehicle would be the place where income trusts currently held in RRSPs would be moved to and the taxes paid on the distributions would be taxable in the year earned as opposed to deferred, as explained here

This would be a win-win-win solution for both government and the 75% of Canadians without pensions and would stimulate the economy in a multitude of ways.. It would generate a huge new stream of taxes and protect these Canadian businesses from foreign takeover and leveraged buyouts. The new tax revebue would equal $2.3 billion a year as follows:

Total distributions paid annually by income trusts: $16 billion
Percent currently held in RRSPs : 38%
Average tax rate paid by holders of RRSPs: 38%

Tax revenue collected under new proposal : $16 billion x 38% x 38% = $2.3 billion

This would be a huge WIN-WIN-WIN. It leaves Jim Flaherty with no excuses, unless he wants to start arguing on the basis of what this policy’s true ulterior purposes were.

Does Jim Flaherty really want to reveal those ulterior purposes or accept my proposal which addresses head on his ostensible reason for this tax.....namely alleged tax leakage.....which is now gonzo.