Tuesday, May 5, 2009

Why are the NDP attacking Canadians' RRSP's?

The NDP seem to resent the fact that RRSPs allow Canadians the right to save for retirement, by virtue of a SINGLE tax break, namely the right to defer taxes. So why does the NDP resent this aspect of RRSPs, as stated below? Without which, why even have RRSPs in the first place? Why are the NDP joining with Harper to attack RRSPs? What evidence does the NDP have for any of the following spurious and false arguments of fact and spurious and false arguments of logic?


Corporations have openly admitted that their attraction to income trusts has been because of the tax advantage. Concern over the resulting loss in tax revenue has been noted by the federal and all provincial governments, irrespective of political stripe. Industry studies claiming no tax loss from trusts or even increased tax revenue have not survived rigorous scrutiny, characterized by one expert witness as “simply nonsense on stilts”. Deferred taxes do not answer the needs of governments for stable, adequate and predictable revenue sources today and in the short-term. It has been pointed out that industry calculations ignore the generous tax benefits already in place for RRSPs and pension funds, for example. The upfront contribution deduction for such plans and not having to pay taxes on investment income within them offsets other tax factors. It has been shown that there is, in fact, both a short-term and permanent revenue loss when income trusts in RRSPs and pension funds are compared to corporations in the same plans.

Similarly, arguments that the proposed changes will disadvantage us in relation to US Master Limited Partnerships do not hold up when the special tax added by the IRS on MLPs in tax deferred accounts is factored in. The proposal actually evens things up.

Finally, that corporations may have access to other loopholes to avoid tax payment should be a cause of concern. It is not a justification for income trust tax leakage. Now that this tax loophole has been closed, it is time for the government to move on and tackle international tax havens and other schemes that are unfairly shifting a greater share of tax onto ordinary working Canadians.

1 comment:

Dr Mike said...

Now let me see , where do I begin.

These guys are FRACKING IDIOTS!!!!!!!!!

I cannot help but wonder who the so-called expert was that said "simply nonsense on stilts" , Judy W-L maybe??

It`s no wonder this party is going down in flames----they deserve it.

Dr Mike