Miles - this is just a suggestion, and maybe you can tell me what you think.
As we all know, the junior mining sector is in a deplorable state. I might suggest that those out there who are Canadians should lobby their MP's to re-introduce the tax credits we used to enjoy with flow through shares. The flow through share currently exists, but if I remember correctly a few years ago for every dollar you put in, your received a 133% tax credit for it. This means that if you put in $1,000 into flow through shares, you received a tax credit of $1,333.00. In the 54% tax bracket (Federal and Provincial Taxes paid on the last few thousand dollars) you would get back $718.00 from the government, which means your investment really only costs $282.00. There is a lot less risk in the investment, which means a lot more money goes in, which means a lot more exploration, which means more success, which means more mines, and taxes to the government for people working in those mines, and on exploration.
The VSE hit record lows this past week, and if something isn't done soon, maybe the VSE will hit the bricks.
Just my opinion, if this makes sense, maybe it should be posted on other lists and lets get this sector that has been demolished by Bre-X back in business. By the way, for those who don't know, Bre-X never was listed on the VSE, only on the ASE, and TSE.
Mike G |
