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Politics : Canadian Political Free-for-All -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (11131)	11/29/2006 1:32:28 AM
From: Gulo	Read Replies (3) \| Respond to of 38172

"the method he allowed Flaherty to use If you accept that he had to equalize the treatment of trusts and corporations, how else would you have done it? Wait until more corporations converted to trusts? Leak the info ahead of time? Not give a grace period of 4 years, so that the net present value of the tax change is actually quite limited? Grandfathered the existing trusts to create a special class of corporate citizen? The fact is that the trusts dropped from panic selling and bounced back to their fair market value given that the tax change is still years away. People that sold in panic and didn't read the statement got burned, as panic-stricken people usually do. The actual overall hit to investors is not at all large, because post-tax dividends are eligible for the dividend tax credit. Also remember, for resource trusts, only part of the unit's payout is income, and only that portion will change. As I understand it, the investor's pre-tax income from trusts will decrease by 10-25%, but their own tax on that income will decrease via the tax credit. In my estimation, the only thing he could have done better was to equalize the tax burden by lifting more of it from corporations. As to the broken promise, no one seriously thinks he or Flaherty had intentions to tax trusts when they took power. Times changed and they changed their minds. That's not being dishonest, that's being honest to reality. They acted decisively once the decision was made. That seems to me to be what leadership is all about. Which brings me back to my surprise that the geek had it in him. Not a sloppy job at all. Bravo Harper. Now if he can find a way to make something good come out of Afghanistan, I'll really be impressed. -g