Thursday, November 02, 2006

Income Mistrust - Steve Harper on the Record

Circulating the Internet by RBC Dominion Securities: Here is a re-print of a letter written by current Prime Minister Harper to The National Post written in late October of last year when he took the then Liberal government to task for merely suggesting that the tax laws regarding "trusts" be changed. This letter-to-the-editor shall haunt Harper for years into the future; it should.

See the following letter October 26, 2005 by Stephen Harper

On September 19, the Prime Minister acted recklessly when he ordered his Finance Minister, Ralph Goodale, to wade into the income-trust market like a proverbial bull in a china shop. On that day, investors were put on notice that their popular income trusts were going to be targeted by a Liberal government seeking higher tax revenues from companies and investors.Martin's reckless action has caused uncertainty over the future of income trusts, and so has wiped out billions of dollars in market capitalization from Canadian companies and tens of thousands of dollars from the retirement nest eggs of individual investors.

Most notable was the damage done to Canadian seniors who may not have the time to recoup their losses....
The government continues to overtax Canadians and run multi-billion dollar surpluses, yet their first instinct is to attack an investment vehicle that can make the difference between bare survival and a dignified retirement for millions of Canadians.

The government claims that income trusts enjoy an unfair tax advantage over corporate dividends. If they believe this, then the answer is not to shut down a valuable investment vehicle, but to cut the double taxation of dividends. In short, level the playing field and let the market decide between income trusts and dividend-paying companies....[T]he success of income trusts represents a rare triumph for investors over the tax man. Let's not be so naive as to assume that the Liberals will do the right thing to protect taxpayers.

We'll need to fight hard to keep what we have, and even harder to gain ground. It's time to stand up to Paul Martin and stop his attack on seniors and investors.

The Above is by Stephen Harper

Only a year later, Harper & Company are about to do precisely what they accused Martin and Company of only discussing.

Walks Comments: Steve Harper has made serious enemies if institutions are circulating the above to clients. Steve Harper's lifetime political style of betraying supporters continues.

(c) 2006 Victoria BC


Blogger Scrubs & Shines said...

Wow! I have never never never supported the Conservative Government in Canada...never! I'm reconsidering this position now.

Thu Nov 02, 12:50:00 PM  

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