November 02, 2006

Nov. 2, 2006: CBC & Income Trusts

Update Nov. 3, 06:

In the long term, Ottawa is right to move on income trusts , November 02, 2006, From Thursday's Globe and Mail, Gwyn Morgan, retired founding CEO of EnCana

When I was asked to write about Tuesday's income-trust announcement, my first reaction was that there is much more downside than upside in wading into these financially and emotionally roiling waters.

If doing so requires just an ounce of courage on my part, then the courage required by Jim Flaherty must be measured in tonnes. And this goes for his boss, Stephen Harper, as well. [....]

But for foreign investors, Canadian trusts have been a tax bonanza. This is because, except for aminimal withholding tax, the cash payouts are pretty much tax free. This is where the real leakage is occurring, with foreigners getting a free ride from taxpayers. [....]

At the federal level, most of this leakage is made up by higher capital gains tax inflows from trust conversions; the real leakage occurs at the provincial level. [....]

Worth reading.

Nov. 2, 06

CBC news tonight: Save yourself some time; it's all anti-Conservative government all the time.

There is always an NDP'er--usually Jack Layton--to talk ... if he's not available, another NDP'er will be ... tonight (?) MacPhail from BC, an ex-Minister was available ... all negative.

Public Safety Minister Stockwell Day was interviewed on the gun registry waste of taxpayer money and the AG's Report -- understated, calm, clear, believable -- He is more impressive each time I listen to him. In response to news about the Auditor General's latest report on the gun registry, ex-Public Safety Min. and Deputy PM Anne McLellan denied misleading Parliament -- said something about accounting methods (check further). If you check Hansard--at least what I read on the weekend from a year ago--Ms. McLellan evaded answering ... proficiently ... which amounts to the same thing as misleading ... when it would hurt her government for the true figures for the gun registry fiasco to be revealed.

Re income trusts: My guess is that a number of the lads (part of the network of business, media--BCE, for example--politics, Liberals, the former government ... ) had organized to bring on the income trusts so they could make a lot of money and, just incidentally, hurt the Conservative government at the same time--and that, once the Conservative government realized what they were about to do, the Finance Minister acted for the good of the country's ability to pay for what is needed. Bill Graham had another hissy fit and flounced up to Jane Tabor (I think it was) to put on his outraged act on leaving the House. The MSM never disappoint; they are fast to promote and protect the left/Libs/NDP ... not so fast on journalistic investigations ... which is why the rest of us can't stand their faux news reporting while omitting what is really important. (More later or tomorrow)

Elsewhere, I read that what has happened will help the elderly, seniors, and is fairer all around. How would I know? Better read some more.

Remember the pre-Christmas and pre-election trust stories of a year ago?

Oct. 22, 2006: Various #2, has a bit on the bank act

Related: Frost Hits the Rhubarb Oct. 13, 2006: Friday the thirteenth ... -- BCE income trusts, RIM's BlackBerry / Pearl, Jim Balsillie ..."Bell Globemedia, owner of The Globe and Mail and the CTV television network, along with an investment in Telesat Holdings Inc."


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