Canadian politics

[Kalfear]

hehe thought I would throw this question out there to see what peoples take on it is.

 

Now im a educated person, had a licence to sell stocks and bonds and all that a few years ago. But the full understanding of the income trust issue eludes me. I honestly think it eludes most people to be honest and only those proffessionals involved in income trusts actually understand it fully, not the average person.

 

Having said that I understand the jist of the topic and why The Finance minister was forced to NOT remove the taxation from it.

 

The conservatives promised not to tax income trust (its always been taxed in the past).

Upon the conservatives getting power the large industries transfered many of their money assests to income trusts to avoid paying taxes

Upon seeing this move by industry the finance minister had no choice but to continue to tax income trusts or lose over a billion dollars in taxation from said industries!

 

All this pretty clear and understandable.

 

What I dont understand is the senior citizens claims they losing major money because of this decision.

Hoping someone can explain this (no partisan liberal rants please, just stick to facts)

 

 

Seems to me since income trusts were always taxed, and conservatives didnt raise the taxation levels (they didnt, I checked) how can seniors be lossing money when in theory they should be paying the same taxation on income trust as they didlast year and the year before.

 

Nothing has changed.

 

Now I understand them being upset that conservatives went back on promise to eliminate taxation on income trusts, but as explained above no one could realistically predict big business would try to use that promise as such a huge tax shelter so obviously.

 

But the fact remains all the same, you paid a certain percentage last year, you paid a certain percentage the year before, you wil be paying a certain percentage this year, how have you lost money??? You havent gained money true, but you also havent lost money because its the same system just being carried over.

 

Can anyone explain this to me cause I just dont get it. To lose something you first have to have it, and all the conservatives did was keep income trust taxation at the same level as previous years.

[Sand]

It is all about keeping up appearances. Certainly it may look to some people that things have changed, and some politicians could persuade people thinking things have changed in order to push their own agenda, but it is just the illusion of change they are buying into and not real change. Its all about how things appear on the surface and that is what people will glance at and fuel their opinions from.

[Pidesco]

I thought educated people were able to write in their native language without too many mistakes. I guess I was wrong.

 

Also, they lost money in the sense that they voted based on the assumption that that vote would allow them to save money due to the change in taxation. When that didn't happen they, of course, felt robbed.

[Sand]

This is an internet forum, not a college thesis.

[Checkpoint]

Can anyone explain this to me cause I just dont get it. To lose something you first have to have it, and all the conservatives did was keep income trust taxation at the same level as previous years.

Why is it that a promised income tax removed can't cause people to lose money?

[alanschu]

But the fact remains all the same, you paid a certain percentage last year, you paid a certain percentage the year before, you wil be paying a certain percentage this year, how have you lost money??? You havent gained money true, but you also havent lost money because its the same system just being carried over.

Uh...because they were expecting to be able to save that money? There's nothing saying they didn't feel they were losing a lot of money before the conservatives were in power.

 

 

 

This is an internet forum, not a college thesis.

 

At the same time, the ability to communicate effectively so as to not have people misinterpret your ideas is useful, even outside of college.

[Enoch]

But the fact remains all the same, you paid a certain percentage last year, you paid a certain percentage the year before, you wil be paying a certain percentage this year, how have you lost money??? You havent gained money true, but you also havent lost money because its the same system just being carried over.

Uh...because they were expecting to be able to save that money? There's nothing saying they didn't feel they were losing a lot of money before the conservatives were in power.

Not only that, but I doubt that banks, investment companies, financial planners, etc., will convert a person's assets into an income-giving trust for free. Many people probably spent a fair amount of money to reorganize their finances to take advantage of the changes in tax laws. Revoking those changes means that this money was mostly wasted.

[alanschu]

Not only that, but I doubt that banks, investment companies, financial planners, etc., will convert a person's assets into an income-giving trust for free. Many people probably spent a fair amount of money to reorganize their finances to take advantage of the changes in tax laws. Revoking those changes means that this money was mostly wasted.

 

You must be an educated person, complete with a license to sell stocks!

Edited February 1, 2007 by alanschu

[Kalfear]

thanks to those that replied realistically, to bad Alan doesnt fit that crowd! Ahhh well moronic children will be moronic children till they put to bed (Alan wont see this till Friday as posting after his bed time)

 

Guess he felt put off when I said no more liberal spin. Ruined his whole comback.

 

Just to play devils advocate here (go look it up Alan, not going to explain what the word means to you),

 

Ummm if they transfered money before the law went into effect, they kinda set themselves up for the fall now didnt they, so again how this anyones fault but their own?

 

Its pretty common knowledge to not accept anything from any political figure at face value, so why would anyone go running to a bank to buy up income trusts based on a election promise???

 

Anyways, hadn't thought about bank charges but cant see those hitting $70,000.00 as the liberals are telling the media.

 

Liberals on recrod saying some seniors lost $70,000.00 on the change of policy.

 

I just dont buy that at all.

 

 

Oh and no Pid, you cant lose something you never had. Its just a fact of life im afraid!

[Laozi]

Kalfear, are you really crippled? just curious.

Edited February 2, 2007 by Laozi

[Sand]

You may not be able to lose what you never had, but you can most certainly lose what you should have had.

[Llyranor]

I am on good authority to believe that the main reason behind this problem is that the Canadian government is out to personally offend you. Perhaps because you know too much. Because you are highly-educated. In fact, I would even state that this is possibly highly likely.

[alanschu]

Guess he felt put off when I said no more liberal spin. Ruined his whole comback.

 

 

I vote Conservative. I helped Laurie Hawn beat out Anne McLellan.

[Fionavar]

Seems that we have derailed this thread in an unfriendly way ... off to use the PM system now ...