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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Goldberry who wrote (9918)	10/18/2005 8:46:10 PM
From: LTBH	Read Replies (1) \| Respond to of 11633

Graham I try not to comment on this fiasco as it is a very sore point with me however reading the same inaccurate stuff time after time does periodically spur me to respond. Please note this comment is not meant to include your last post. If one truly wishes to look at the WHOLE picture then the REAL reason trusts, in the O&G vein, were setup was because Canada/Canadians were unable or unwilling to provide sufficient investment capital to develop these resources. The tradeoff Canada offered foreign investors (since it was recognized that Canadians could NOT provide sufficient capital) to obtain their investment dollars was the trust structure and the ensuing higher distributions IF THE HIGHER RISK PAID OFF. Now very late in the game, Canada wishes to have its cake and eat it too by punishing those very investors that allowed said development. I fully agree with your inference that US investors have heavily sponsored the growth of Canadian trusts thereby making Canada richer in the process. I disagree that an unannounced (to the appropriate US authorities), non negotiated unilateral taxing of US retirement accounts in violation of the then and current tax treaty is acceptable. Just as I disagree that a reciprocal attack on Canadian retirement accounts by the US is acceptable. Such would only penalize the retiree accounts of both countries with all ending up the losers. Lastly, it is not as if Canada is not flush with a surplus unknown in recent times so it appears the only driver here is simple greed. Now add the fact that Canadian provinces want to join the hogfest ... where will it stop. US states certainly do not tax funds headed to Canada and once this type of frenzy begins ... well its doubtful there will ever be a turning back ... so again its only the retirees who are penalized and taxing either from either country is foolish, greedy and short sighted. Loosing sight of the need for foreign investment in the capital intensive O&G sector and focusing on an UNNEEDED and very shortsighted tax gouge will IMHO quite quickly kill the goose and the only egg left will be on forgotten politicians faces and those Canadians who supported such policy in hopes of forestalling a possible additional tax bite to their own accounts. NOTE that the above comments are made as they relate to taxation of the US IRA which is a tax deferred retirement account and the Roth which is a tax EXEMPT retirement account. I have no problem with the WH in a taxable account. Of course I do have a problem with taxing ROC in ANY account but that's just another facet of this current silliness. Thems my 2 cents and got no more to say LTBH