Re: Taxpayers, you're the chumps ....

"Peter White" <springpig_at_ns.sympatico.ca> wrote in message news:cWiWg.2438$cz.37858_at_ursa-nb00s0.nbnet.nb.ca...
>
>
> The Right One wrote:
> > "Karen Gordon" <ar231_at_FreeNet.Carleton.CA> wrote in message
> > news:egbsd6$sco$1_at_theodyn.ncf.ca...
> >
> >>(K): Been saying it for years.... corporations paying less and less
taxes
> >>under consecutive rightwing governments; taxpayers picking up the load
for
> >>the corporations....
> >>______________________________
> >>
> >
> > This is another dumb ass "make the rich pay" editorial from the mop and
> > pail, written by a chump in order to impress the Cherranna socialists,
who
> > are ignorant when it comes to economics.
> >
> > Think about it Karen, when corporate taxes are raised, who ultimitly
pays?
> > It's the consumer,
>
>
>
> Brilliant! this is the chump who has the brass to say of anyone that
> they don't understand elementary economics?
> This illiterate who believes that corporations can pass along all their
> increased costs to the consumer

They said you were nuts Peter but I didn't think you were that far gone!
>
>
>
> > --
> > The Dean of Politics
> > Dr. Of Conservative Studies
> > Senator Terry Pearson
> > http://www.rightpoint.org
> > Helping to shape
> > Canada's destiny.
> > Penny's Head
> > [E\ F]
> > The Socialist Intellect-0-Meter
> > 0% 50% 100%
> > |\
> > \
> > \
> > \
> > \
> > \
> > \
> > \
> > ----o----
> > Snort-wheeeeze-duh Pearson's
> > on welfare
> > Liberals don't explain.
> > They only parrot what
> > they hear on the CBC
> >
> >
> > It's called "war" and as the clich? goes,
> > it is not pretty. Nor is it a science, where,
> > if a formula is followed, the outcome is
> > assured. ~ Rondi Adamson,
> > Toronto Star, March 2006
> >
> >
> > God Keep Our Land
> > Glorious And Free.
> >
> >
> >
> >>From Thursday's Globe and Mail
> >>
> >>
> >>Taxpayers, you're the chumps
> >>
> >>If you had to guess the tax burden split between individuals and
> >>corporations, you might guess that corporations pay the most. That's
> >>because Corporate Canada is always whining about its tax load, which it
> >>claims is uncompetitive and sends jobs overseas.
> >>
> >>You'd be wrong. The chump is you, not the corporations. The public
> >>accounts show that the total corporate tax revenue is about 30 per cent
of
> >>the total personal tax revenue. In the early 1960s, it was 60 per cent.
> >>The tax burden on the individual has, relatively speaking, doubled since
> >>your parents' generation. Now you know why your parents could afford a
> >>house on one salary and you have trouble paying the mortgage on two.
> >>
> >>But fear not. This week, Finance Minister Jim Flaherty said he's going
to
> >>take care of you. He's swimming in surpluses -- $13.2-billion, for the
> >>2005-06 fiscal year. That amount will be thrown at the federal debt. He
> >>also promised to cut your taxes. "We think the people of Canada are
> >>overtaxed," he said.
> >>
> >>They may or may not be, by international standards. What is absolutely
> >>certain is that "the people" are wildly overtaxed compared with
> >>corporations. So will Mr. Flaherty balance the equation and not just
give
> >>individuals lower tax rates, but lower their share of the total tax
> >
> > burden?
> >
> >>Forget it. If anything, the pendulum is swinging even farther in
> >>corporations' favour. They will pay relatively less, you will pay
> >>relatively more. If it doesn't sound fair, it's because it isn't.
> >>
> >>But look what's happening. Every week the corporate tax bill,
> >>proportionately speaking, becomes slightly smaller and it's not just
> >>because corporate tax rates have fallen in recent years (they have).
It's
> >>because Canadian companies are turning into income trusts, which are
> >>structured to avoid paying tax, and because other companies are bought
by
> >>foreigners and restructured to minimize the tax hit.
> >>
> >>Let's start with the trusts. Earlier this month, Telus announced it
would
> >>become a trust in January to "optimize its future taxable position."
> >>Optimize is another way of saying eliminate. Telus is on the verge of
> >>becoming taxable, because the $800-million of tax losses inherited from
> >>the 2000 Clearnet purchase are exhausted. Tax losses are used to offset
> >>profits. We don't know what Telus's Canadian tax bill would have been
next
> >>year. But given the company's size (it's almost as big as BCE, owner of
> >>Bell Canada) and profitability, you can bet it would be a biggie -- as
> >>high as $600-million, some analysts say. In effect, Telus will soon
vanish
> >>from the tax rolls forever.
> >>
> >>Unitholders pay tax on the trusts' distributions, so tax is still being
> >>paid. But there's some "leakage" (blame the pension funds and the
> >>foreigners who own trust units). University of Toronto tax guru Jack
Mintz
> >>estimates trust conversions are depriving federal and provincial
> >>governments of about $500-million a year in revenue.
> >>
> >>The figure is bound to rise as the trust wave swells. In 2000, the TSX
was
> >>home to trusts worth $18-billion. Their collective value is now about
> >>$200-billion and rising rapidly. There are no political obstacles to
their
> >>proliferation -- the Tories have given no hint they will try to stop the
> >>runaway train. Investors are putting great pressure on companies of
every
> >>description to convert. When a company turns into a trust, or announces
> >>its intention to do so, the equity value typically rises by a third.
> >>
> >>The tax losses from foreign takeovers are much harder to quantify. But
the
> >>losses are certainly real. Generally speaking, a foreign owner loads its
> >>new Canadian subsidiary with debt (though there have been times when
> >>foreign-owned companies in Canada carried less leverage than
domestically
> >>owned rivals). Since interest payments are tax deductible, tax bills can
> >>plunge.
> >>
> >>Cigarette maker JTI-Macdonald, owned by a Japanese company, is a case in
> >>point. Canadian bankruptcy court filings from 2002 show that JTI in 2002
> >>made a surprisingly modest $10-million profit on sales of
$404-million --
> >>modest because cigarettes are about the highest-margin business you can
> >>find. Apart from operating costs, the biggest drain on the bottom line
was
> >>interest payments of $106-million, nearly all of which was paid to
> >>affiliated companies.
> >>
> >>Foreign companies went on a hunting spree in Canada this year. Inco is
> >>about to disappear into the maw of Brazil's CVRD. Last year, Inco paid
> >>$241-million in Canadian taxes and deferred another $50-million. You can
> >>bet Inco's tax payments will drop next year as debt is shifted around
the
> >>CVRD empire. Of course, Canadian-owned companies with funny Caribbean
> >>addresses play the same debt-shifting tricks. But they always have.
> >>
> >>If Mr. Flaherty really thinks the average Canadian is "overtaxed" he
would
> >>restore the balance between individual and corporate tax payments. Don't
> >>count on it. Corporations have lobbyists and PR people. You don't.
> >>
> >>
> >
> >

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> >

> >>   'Income trusts' for corporations.... what the federal Liberals chose

> >>    to protect and the federal Conservatives embrace with a passion.

> >>

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