Lorne Gunter makes an excellent point about the Income Trust Issue. (Sorry it’s behind a subscription wall).
Essentially, Gunter makes the point that raising the tax on trusts was not the government’s only option.
“Equity could have been achieved,” writes Gunter, “by lowering the taxes on corporations rather than raising the taxes on trusts . . . rather than slashing billions from the value of trusts, it would have added billions to the value of corporations.”
Makes sense to me.
In fact, it made sense to Stephen Harper before he became Prime Minister.
Here’s what he wrote in a National Post op-ed on October 5, 2005, when the Liberals were thinking about taxing income trusts:
“The government claims that income trusts enjoy an unfair tax advantage over corporate dividends. If they believe this, then the answer is not to shut down a valuable investment vehicle, but to cut the double taxation of dividends. In short, level the playing field and let the market decide between income trusts and dividend-paying companies.”
Anyway, the Conservatives will now have to bear the consequences of their actions.
And among those consequences are blogs like this one.