Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (2715)	9/19/2005 9:46:23 PM
From: Taikun	Read Replies (1) \| Respond to of 25575

Rocket, Canada is probably the best run G7 economy at this point. It is a shame to see this happen. What's the surplus on the Canadian gasoline tax running? I read about $5bn. So they want $300m? They should be lowering the gasoline tax! "At current price levels, the federal treasury will collect at least another $300-million over the next year — bringing total GST revenues from gas to over $1.5-billion." taxes.ca Ontario is gonna be in trouble in a few months as the Loonie goes above 90 cents. People might start to complain! Watch Alberta start getting antsy too if energy sector companies can't convert to trust smoothly anymore. The whole food chain could get backed up. ie Investor A, B, and C, all insiders (management) at pre-trust company X ENERGY wants to seed coal bed methane startup RT RESOURCES with $20m after X ENERGY converts to trust and they get their cash out and they have investors matching another $40m plus a loan gets triggered for another $40m, total $100m. BUT, but X ENERGY can't convert to trust so quickly anymore so A, B & C can't invest so RT RESOURCES delays starting operations as a business and cancels drilling plans. 2004 had 3.3bn in Canadian trust IPOs, approx $270m a month. Lets say the delay becomes 2 months. A 2 month delay takes $500m of liquidity out of the IPO market. That money probably goes to existing trusts, raising unit values and lowering yields which doesn't help new issuers. "The value of all income trust IPOs in 2004 ... $3.3 billion" cbc.ca It is a shame the gov't fails to analyze the spinoff effects of the taxes paid by trusts. They pay sales taxes, payroll taxes, royalties, and many other taxes. Slowing down trust formation to get $300m might deprive them of revenue in other areas. D