Exposé de positionPosition PaperTax Fairness and Income Trusts- Neil McGregor
Dear Mr Flaherty
One of the reasons that I didn't vote Liberal in the last election was their meddling in Income Trusts. At that time my retirement savings took a nasty drop and I was pleased when Mr Harper said that a Conservative Government would not touch Income Trusts. I watched my portfolio gain back some of its lost capital when you took office. Then came Oct 31st and 15-20% of my retirement capital was taken away. I am now trapped in the unfortunate position of continuing to hold the devalued trust investments to sustain cash flow, since selling and reinvesting would crystallize the lost capital.
You have indicated that it was unfair to shift the tax burden to individuals. This is not the case. I am very happy to pay full tax rates on trust distributions, either immediately on open investments or later on registered plan withdrawals. These investments would not have been so popular if people were unhappy with the tax structure.
You also say that there is a loss of tax revenue. I fail to see this when corporations are able to shield or defer taxes while I as an individual investor pay full tax rates on distributions.
To the comment of folks not having diversified portfolios, i.e. not having so much of their capital in Income Trusts, I say hogwash. My trust investments range from helicopters to halibut, well diversified over business sectors, no different from my holdings in corporations. The point is that you said this type of business arrangement was valid and legitimate and part of the broad Canadian economy. Your action to go back on your word has brought uncertainty to my financial future.
I urge you to listen to those who have the knowledge and suggestions to fix this situation, so that seniors like myself can again sleep at night with the prospect of a solid financial future."
1930 Yonge Street,
Suite 1062
Toronto, Ontario
M4S 1Z4
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