Thursday, November 24, 2005

Leveling the playing field for tax cheats

Income trusts are poised to rise Thursday after Ottawa decided not to hit the sector with a new tax regime, but instead level the playing field by cutting taxes on corporate dividends.
Thats the way to deal with those nasty income trusts that were set up as a tax haven for corporations. Don't tax them nah, just give the other corporations another tax cut. The logic in that is what? Well the government failed to collect millions in taxes from income trusts, mainly because as the Auditor General pointed out, see s All the Newz that didn't Fit, Revenue Canada FAILED to collect what was owed us. Now this tax give away might have served a purpose if it had strings attached, like making sure that dividends were invested back into production. As it is now this is not happening. Instead the money is invested in the stock market by corporate managers to make more money. And thats the real reason that the Income Trusts lost money over the last six months, because so did the stock market.

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