A Tax Fairness Pledge ...

WHEN IS FAIR FARE?
A Commentary on the Canadian Conservative
Government’s 2007 Fair Tax Policy and Pledge.
By Victor Drummond ©
October 2007

On January 30th 2007 the Honourable Jim Flaherty, Minister of Finance addressed the House of Commons and made the following statement:-

“Make no mistake, the decision that was taken on October 31st is all about fairness—fairness in our tax system, fairness for hard-working Canadian taxpayers and their families, fairness for seniors, for business and other levels of government," said Minister Flaherty. "I am not prepared to sacrifice the interests of millions of hard-working Canadians who pay their taxes and play by the rules so that a select group of special interests can enjoy a tax holiday."

A bit later, June 4 2007, the Government updated their (Tax),“Fairness Pledge”, to all Canadians which reads in part:

Our Fairness Pledge
• Our fairness commitment is based on service that is responsive, consistent, and impartial.
• Our actions must reflect objective yet considerate application of the law.
•We recognize that taxpayers have specific needs and concerns.

Information
• We will give taxpayers information that is accurate and understandable. We will explain the laws in language that is plain and clear. We will provide all our services in English and French and, in some cases, other languages too.

The problem with this set up being the reference to:- reflecting upon an: “objective yet considerate application of the law.”
What does this statement translate into?

Then in the following paragraph is the second ill defined statement:- “We will explain the laws in language that is plain and clear.”
What does this statement translate into?

If “Fair Taxation” -- according to the foregoing “Fairness Pledge” – translates into having the defective, unfair taxable benefit legislation -- explained in plain and clear terms – Fair becomes Fare -- NOT FAIR. In other words:- Pay up --- ---- --.

Then so far that appears to be about as “Fair” as this government is prepared to go.

As long as the defective taxable benefit legislation remains on the books there is NO POSSIBLE WAY TO APPLY THAT LAW FAIRLY.

If some victims receive extra CONSIDERATION -- and have their taxable benefit taxes reduced or dismissed entirely -- how does that become “Fair” to all the other similar victims?
OBVIOUSLY IT DOESN’T.

Until the taxable benefit legislation is amended to exclude corporation shares -- no matter how acquired -- from the taxable benefit classification -- any pretence of applying “Fair Taxation” to all Canadians is a mere charade and an absolute farce.

Honourable Jim Flaherty -- Give your taxation “Fairness Pledge” some substance.
Amend the taxable benefit legislation to exclude corporation shares and company stocks as “taxable benefits” and have these equities taxed according to the really fair “Capital Gains/Losses” legislation.
REAL TAX ON REAL INCOME. That legislation IS universally Fair Taxation for all Canadians.

Until that is done the taxable benefit victims have no rights and also can not be given a fair deal.

All the fairness they can beg for is:- SPECIAL CONSIDERATION – with hat in hand.

There is absolutely no justification for doing half a job – correct the legislation and allow it’s past victims to apply for genuine fairness in their “Income” taxes.

Then if past victims decide to forego their RIGHTS to fair taxation they may safely be assumed to have made a conscious decision not to reclaim their rightful tax adjustment and are therefore being taxed fairly.

See you at the Federal Election Polls.

Victor Drummond ©