Lie Or Principled Decision?

Now that I've thawed out from Halloween, I can type on my keyboard again.

So, is it a lie or a principled decision?

The Liberal repair didn't completely eliminate the pressure on corporations to bend to the wonky tax system. But now, with Flaherty's move to tax trust payouts directly, Canadian investors will have the best of all worlds.

First, all Canadian businesses are now on the same tax footing. Better still, Canadians now have a dividend tax system that treats dividend income at one rate through to the end. The overall corporate tax rate may be too high, but at least dividends will not be taxed twice.

With this cleaner corporate tax system in place, the Tories are in a position to begin the next phase of tax reform: reduced rates that can be applied simultaneously at the personal and corporate level.


My take, it's a principled decision that had to be taken, even at the risk of losing voters. As we are finding out quickly, the Conservatives are willing to "take a punch", to do the right thing. This was the right thing to do!

Now, why would PM Harper have changed his mind on the income trusts? Well, at the time the party made the policy, the income trust sector was small, with Telus wanting to morph into a trust and many other companies not far behind, income trusts were set to blossom way out of control. So, the Conservatives took a look at the NEW situation, and formed a NEW policy on the matter. So, call it a lie if you want to, I prefer to call it a principled decision taken by a government concerned about ALL Canadians.

So, to you crybabies, yelling, the sky is falling.......... GROW UP!