Sunday, November 19, 2006
What's Next for Income Trusts?
Apparently, Finance Minister Flaherty is not finished wreaking havoc on income trusts, pensioners and other investors holding income trusts in their RRSP's, RRIF's and LIF's. If the Finance Minister has his way, we may suffer further losses in the coming weeks.
In addition to announcing new tax rules for income trusts effective in 2011, the Finance Minister is creating new guidelines that may place restrictions on how income trusts can finance the growth of their companies. From a lay person's perspective, such guidelines would effectively stifle growth, productivity, and competitiveness for these companies.
Is Flaherty trying to force income trusts back into a corporate structure sooner than later?
Consequently, investors may not be the only victims of Flaherty's capricious policy making. Income trusts employ over 250,000 Canadians who could also be adversely affected by the new guidelines.
This "getting things done for all of us" Conservative government is creating an unstable investing environment in this country. Personally, I think its time to take my investments and focus on more stable areas of the planet like the U.S., Europe and China. Forget about Canada.
In addition to announcing new tax rules for income trusts effective in 2011, the Finance Minister is creating new guidelines that may place restrictions on how income trusts can finance the growth of their companies. From a lay person's perspective, such guidelines would effectively stifle growth, productivity, and competitiveness for these companies.
Is Flaherty trying to force income trusts back into a corporate structure sooner than later?
Consequently, investors may not be the only victims of Flaherty's capricious policy making. Income trusts employ over 250,000 Canadians who could also be adversely affected by the new guidelines.
This "getting things done for all of us" Conservative government is creating an unstable investing environment in this country. Personally, I think its time to take my investments and focus on more stable areas of the planet like the U.S., Europe and China. Forget about Canada.
Labels: income trusts, taxes
