Thursday, May 28, 2009

Time for Liberals to revisit Flaherty's first act of gross fiscal incompetence

Flaherty's tax conundrum

Paul Vieira,
Financial Post
April 18, 2007

John McCallum, the Liberal finance critic, said Canadians are starting to see the consequences of the trust tax.

"The effect of what he is doing is exactly the opposite of what he intended, because the holders of income trusts pay lots of tax," Mr. McCallum said. "All of these trusts are now being taken over in such a way so that the new owners will pay no tax.

"So, instead of a situation where a lot of personal taxes were being paid, you are having these induced takeovers by highly leveraged private-equity companies that will pay no tax."

Perhaps the Liberals would like to edify Canadians on how much this is costing taxpayers. Rather than Flaherty’s $500 million in phantom tax leakage widely reported in the press....what is the real tax leakage that is being incurred by Canadian taxpayers for the perverse privilege of having foreigners own Canadian companies?

1 comment:

Dr Mike said...

What do you say Liberals--is it time yet to step up for the taxpayers & look into the tax consequences of the Tax Fairness Plan.

Has it indeed corrected the so-called billion dollar tax leakage -- yes , Jim did say it could be as high as a billion.

500 million , a billion , surpluses as far as the eye can see , no deficit , 43 billion deficit , 50 billion deficit.

Jim does so love all of those numbers , real or not , he does not care.

All that I know is that the numbers for tax leakage are indeed quantifiable & as such should be investigated,

Exposing this can of worms will produce a domino effect in Jim`s world where 1 + 1 does indeed = 3.

Dr Mike Popovich