Tuesday, November 21, 2006
Flaherty's "Rithmetic".
Dumbfounded. Confounded. Unfounded. These are words that aptly describe Finance Minister Flahety's "rithmetic" lesson on taxes.
Bearly three weeks ago, Finance Minister Flaherty changed the rules governing income trusts and in doing so destroyed $20 - $34 billion of taxpayer savings in order to save $500 - $800 million in alleged lost tax revenue. In exchange for destroying so much wealth Mr. Flaherty proposed income splitting for pensioners - crumbs compared to what he took away from them after tinkering with income trusts.
Today, he is considering extending income splitting to all Canadians and for all types of income. It is reported that such a measure would cost the government about $5 BILLION in lost tax revenue.
Does this man actually know what he's doing?
One thing is now clearer than ever. There was obviously no need to destroy so much taxpayers' wealth on October 31, 2006.
But, even if the Finance Minsister's idea comes to be, why should pensioners and couples be the only people to benefit from such extensive tax reform? If Mr. Flaherty wants to make meaningful contributions to tax reform, just give us a flat tax rate and a one page tax return. Then all Canadians will benefit equally and fairly.
Bearly three weeks ago, Finance Minister Flaherty changed the rules governing income trusts and in doing so destroyed $20 - $34 billion of taxpayer savings in order to save $500 - $800 million in alleged lost tax revenue. In exchange for destroying so much wealth Mr. Flaherty proposed income splitting for pensioners - crumbs compared to what he took away from them after tinkering with income trusts.
Today, he is considering extending income splitting to all Canadians and for all types of income. It is reported that such a measure would cost the government about $5 BILLION in lost tax revenue.
Does this man actually know what he's doing?
One thing is now clearer than ever. There was obviously no need to destroy so much taxpayers' wealth on October 31, 2006.
But, even if the Finance Minsister's idea comes to be, why should pensioners and couples be the only people to benefit from such extensive tax reform? If Mr. Flaherty wants to make meaningful contributions to tax reform, just give us a flat tax rate and a one page tax return. Then all Canadians will benefit equally and fairly.
Labels: income trusts, taxes
