Ok here is some more evidence of ponzi nature of the Income Trusts and why they are dangerous for Canadian business as well as Canadian workers and even investors, but good for owners and market managers.
While the Liberals talk about defending Canadian soveriegnty they did nothing to stop the sell off one of Canada's major Oil Field supply companies, Precision Drilling. Which in Alberta should have been as big a scandal as the Terasen sell off in B.C. which the NDP slammed the Feds for. But the silence has been deafing. When Alberta is dominated by Conservatives what did you expect. Whats good for America is good for Alberta......
When Precision Drilling converted to a trust, it spelled the demise of a great Canadian world player
Here's what Weatherford boss Bernard Duroc-Danner said about Precision when he bought it: "Frankly, we could not duplicate what they did, and we need it."
At that point, Goodale and his senior policy wonks cringed, though they made their concerns known only privately at the time. Here was one of Canada's few global champions, led by one of the industry's most respected entrepreneurs, shredding its growth playbook and unloading many in the team of senior executives who had helped build the company—for no other reason than to avoid paying tax. That much was known. Shortly after the Weatherford sale, Swartout said he had no choice but to convert "because the multiple of the trust is so overwhelming," even though he admitted the trust proliferation "is not the best thing for Canada."
The truth is that Canada's most successful companies, and the ones that attract the best and the brightest professionals—Manulife, Bombardier, Scotiabank, Magna and Alcan, among them—have one thing in common: They're players on the international stage. Canada needs more of them. When ambitious companies like Precision suddenly call it quits to exploit a tax loophole, you know you've got a problem.
Labour-sponsored love lostWith tax breaks disappearing, the cliff is fast approaching for labour-sponsored investment funds
And another victim of the Income Trust Tax Break that Goodale has introduced is the union based Labour Funds. Bad enough McGuinty in Ontario was reducing the tax credits avaiable for these funds, now with the tax credit from Goodale for corporate investment and no tax on the Income Trusts, that is the final nail in the coffin of these funds. While they gained little in investment dividends for their investors who are all average working stiffs they gave the average person a very real annual tax break with higher tax credits than a regular RRSP investment.
And they were as easy to buy as an RRSP for the average person, with a 25-50% tax break. And now they too will go the way of the dodo while the rich get tax breaks on thier high end RRSP investments and their coupon clipping corporate investments.
