Tuesday, May 11, 2010

Mark Carney exempted Goldman Sachs from Flaherty’s income trust tax


Flaherty’s income trust was structured by Mark Carney in such a way that only the little investor was taxed and the big guys were given a free ride. Not only were the big guys given a free ride, this tax was imposed in such a way that the big guys were able to prey upon the small investor and expropriate wealth from the small investor in the amount of some $35 billion.

What would you expect from the architect of Flaherty’s income trust tax, Mark Carney, who spent his entire career at Goldman Sachs and wouldn’t have dealt with a single Canadian retail investor in his entire career and evidently doesn’t give a hoot about them and probably perceives them as ripe for the picking.

Thanks to Goldman Sachs alumni Mark Carney, the mere act of taking an income trust that was previously publicly held by Canadian retail investors is the means by which large institutional investors liker Goldman Sachs Capital Partners are able to do an end run around the Canadian government and all Canadian taxpayers and avoid paying the 31.5% tax. This is nothing more than creating a UNLEVEL playing field, which is the exact opposite outcome of what Flaherty claiming his policy was going to accomplish. Meanwhile these very takeovers of trust by foreigners like Goldman Sachs Capital Partners has diverted the profits of income trusts from the hands of taxable Canadians into the hands of non taxable foreigners, with the result that Flaherty has (to date) created $1.2 billion in annual tax revenue loss (ie tax leakage) to solve an alleged tax leakage problem of $500 million. A problem that never existed in the first place, as Flaherty’s bogus tax leakage numbers ignores ALL the taxes that are collected from the 38% of income trusts held by average Canadians in their RRSPs.

Goldman Sachs Capital Partners have been investors in a number of income trust that were taken private, like CCS Income Trust. The rip off goes this way. Flaherty announced a tax that wipes off $35 billion of the value of Canada’s 220 income trusts including CCS Income Trust, since all the existing investors of these public trust are faced with a permanent 31.5% tax. Mark Carney has seen to it that this adversity can be exploited by others by the mere act of taking these trusts like CCS private, something that is beyond the reach of retail investors. This allows investors like Goldman Sachs Private Capital to scoop up these artificially devalued income trusts from unsuspecting Canadian retail investors and by the mere act of taking them private, the new investors like Goldman Sachs Private Capital are able to evade the payment of Flaherty and Carney’s 31.5% tax.

This is the same kind of rip off of Canadian taxpayers as occurred in Russia during the time of the privatization of Russian industry by a new group of favoured investors who came to be known as oligarchs, This is exactly where Mark Carney spent his formative years at Goldman Sachs, advising Russian oligarchs in how they can rip off the Russian people. He took those skills and applied them to Canada in order to deprive Canadians of $35 billion of their life savings and transfer that wealth to groups like his buddies at Goldman Sachs Capital Partners.

The people at Goldman Sachs are not so successful because they are smarter than the rest of us, just a lot more cunning and crooked in many cases and have the audacity to pull off tricks like Mark Carney’s income trust tax, that steals from the poor to line the pockets of the wealthy.

Where is Canada’s Official Opposition in exposing these corrupt schemes like Flaherty’s income trust tax? Who in Ottawa is defending taxpaying Canadians from the rapacious schemes of groups like Goldman Sachs Private Capital and people like Mark Carney?

8 comments:

Dr Mike said...

I , like many voters , have gone from suspicion of these birds in Ottawa to full blown contempt as they continue to fritter away public confidence when they push their employers , that being us , to the side.

The old Income trust billboard of "Lie , Conceal , Fabricate" comes to mind--in this instance they pushed democracy to the limit , then trampled it to death---issuing 18 blacked-out pages of tax loss proof , then having the Privy Council recall them , made a sham of the whole democratic system & basically told the people to "shut the f--ck up" , something it seems we will have to get used to.

It is sad when the people we elect choose to hide behind the cover of our elected house.

So much for openness & accountability as all parties are the same.

I just wish there was a vaccine for what ails them as I would be first in line to yell "drop em & bend over"---- Mark Carney , you would be first , that weenie Flaherty next.

Dr Mike Popovich

Anonymous said...

Is that why they are called 'Golden Sacks'?
Nail on the head...

m.

Anonymous said...

Sent to Diane Francis?

Christ - I think I wrote this to you - it's exactly what I've been saying . . . . nice job. No wonder Goldman traders are able to make money EVERY DAY OF THE QUARTER . . they've already fixed the game in their favour!!

Editor's Note: "created an UNLEVEL playing field"

DH

Anonymous said...

Good article! Very good points!

RC

Anonymous said...

Great brent. Nice summary.

Dylan ratigan show on msnbc at 4pmExposes the daily bail of the financial system.

Your summary beats it.

Let's Press forward big time

JIC

Bruce Benson said...

Carney helped create the Level Playing field and with his boss Flaherty pulling all the strings, POOF, Carney gets plumb job as head of the Bank of Canada. Great job if one can get it. Looks like Carney sleeps well counting 35 billion little sheep.

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