Actions Speak louder..

ACTION VERSUS WORDS
A Literal Translation of the Finance Minister’s
Jan 30th 2007 Fair Taxation Speech
By Victor Drummond ©
November 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, (2006), 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."
Now we all know that words used by a politician often have different meanings than the common dictionary definitions or the generally accepted meaning when the same word(s) are used in everyday conversation.

The only way a politician’s message can be truly comprehended -- by the average person -- is by the action that the politician actually takes to give substance to his commitments.

Judging from the action taken by the Hon Jim Flaherty – on the issue of “Fair Taxation” – from January 30th 2007 to his latest commitment to amend tax levels – on October 30th 2007 what he actually said on January 30th 2007 was:-

“Make no mistake, the decision that was taken on October 31st, (2006), is all about fairness – fairness in most of our tax system, (excluding taxable benefits legislation), fairness for hard-working Canadian Taxpayers and their families, (except those who participated in employer’s Employee Shares Purchase Plans), fairness for seniors, for business and other levels of government,” said Mr. 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. “Also I am not prepared to
amend the defective taxable benefit legislation so that a few hundred thousand hard-working Canadians who pay their taxes and play by the rules may join those receiving the benefits of “Fair” Taxation.”

On October 30th 2007 the Hon Jim Flaherty came through for the average Canadian Taxpayer in a big way. Raising the basic Income Tax exemption level, dropping the GST by a whole percentage point and giving business enterprise the lowest tax rate in the major group of industrialized nations.

Why are the taxable benefit victims being totally ignored?

Does the Minister of Finance actually believe it is fair to tax Canadians on “Income” that never happened?

Is it not Fair enough to reserve taxing investors and speculators on real gains -- via the Capital Gains Tax – if they are ever lucky enough to have any?

Does the Minister of Finance actually believe it is fair to tax Canadians differently based solely on the means by which they acquire corporation shares? And yet allow stolen shares to be taxed as a “Capital Gain” – if the thief is honest enough to even report the theft. Isn’t something wrong here – do you think?

For example if I buy shares in my employer’s corporation from a regular stock broker I am only taxed on the capital gains I actually make when I sell the shares. No problem here --that is Fair.

But if I buy those same shares from my employer -- by way of an Employee Shares Purchase Plan -- then I am taxed on any potential gain I might have made – even when I actually lose money on the deal. That is:- DEFINITELY NOT FAIR.

In this latter instance the tax levied is the same as if I had sold my shares on the day I took control of them. That tax applies whether or not I actually sell the shares and whether or not I ever realize a cent of return from those shares. How is that for “Fair Taxation”? Totally unfair – don’t you think?

Can anyone believe that this tax set up is “Fair”?
If they can believe it is -- then I do not want that person guiding the Canadian Government on my behalf.

Do you want someone with such a distorted comprehension of words such as “Fair”, “Just”, “Honest”, “Integrity” “Equality” “Credibility” -- managing your government’s affairs? If “yes” then do the rest of us a favour and stay home on federal election day.

Judge the claims and promises made to you -- during the upcoming Federal Election – and translate each promise according to the speaker’s track record and actions taken related to prior promises made.

Make your vote count for true credibility, honesty, fairness and integrity. Canada will thank you, I will thank you and all Canadians will be much better off for your vote.

Victor Drummond ©