Sunday, November 30, 2008
WHEN IS ONE..
WHEN IS ONE -- ONE TOO MANY?
A commentary on the high tolerance Canadians
have for intolerable situations.
By Victor Drummond ©
November 2008
Tolerance is most often touted as a virtue.
This is true in cases where people of different races, different cultures and holding different opinions accept each other at face value and remain good neighbours.
There are times, however, when tolerance, equates to indifference to the abuse, distress, and violation of every Canadians basic rights and under these circumstances tolerance becomes apathy or worse.
When people fall victim to a miscarriage of justice -- that puts their very life at risk or at the very least causes them to be incarcerated for a crime they didn’t commit – then when the truth becomes known the public should become absolutely intolerant of the situation until justice prevails.
Prime examples of such events are the conviction of Stephen Truscott in 1959 for the murder of Lynn Harper and the conviction of David Milgaard in 1970 for the murder of nurses aid Gail Miller.
Both men were totally innocent of the crimes of which they were convicted and both spent many years in prison before evidence of their innocence was brought to light and the media took up the fight to obtain justice for them.
The CBC Fifth Estate produced documentaries to bring the injustice imposed on these men to public attention across Canada.
Once the Canadian public fully understood the abuse and distress imposed upon these victims -- of a miscarriage of justice – they raised a public outcry that expedited action by the government justice system to release them from prison and eventually to make monetary compensation for the distress they and their families had endured.
Public and media tolerance in this kind of situation is no virtue.
Everyone recognizes one person -- victimized in this way -- is one too many.
The foregoing are fortunately rare, and, extreme examples of incidents when honest hard working Canadians became victims of a justice system that somehow had a serious flaw in the way it operated to serve the public.
In these examples real crimes had been committed and these innocent suspects were found guilty on the basis of some very wrong assumptions.
If one person falsely convicted of a real crime is one too many how about thousands of Canadians deprived of their life’s savings – some even forced to remortgage their homes – when they have committed no crime and are penalized on the basis of flawed legislation and unproven assumption?
Again one such victim is one too many.
Both Canada and the United States have honest, hard working taxpayers who were levied huge amounts of taxes on money they never received, i.e. phantom income.
Grass roots U.S. victims formed one or more lobby groups to appeal to their government for fair taxation and compensation for taxes already paid.
The U.S. news media and government paid little attention to the plight of those victimized by the insidious tax on phantom income until two victims committed suicide.
Among the reasons given for their death was the stress associated with the Alternative Minimum Tax, (AMT) tax on money they never received and did not have.
In October 2008 the group named ReformAMT announced the U.S. congress had passed bill HR 1424 amending their defective AMT legislation which revoked all taxes levied on phantom income and refunded such taxes already paid in the form of tax credits and cash.
For more details visit:- www.reformAMT.org
The U.S. Government took this action in spite of, or perhaps because of, a world wide economic downturn.
Putting billions of dollars back in the hands of the rightful owners may be a means of fighting the economic problems now facing their country.
Canadian victims of our equally flawed taxable benefit legislation have not been so lucky.
The Canadian government has so far ignored the plight of -- all but 30 or so -- honest, hard working Canadians victimized in the same way as their American counter-parts.
Likewise the Canadian news media has devoted little time or space to articles decrying the abuse, and distress of Canadian taxpayers.
Grass-roots Canadian victims have also formed an organization called:- “Canadians for Fair and Equalized Taxation”, (CFET) to appeal to our government for exactly the same action as the U.S. government has now taken.
For more than a year now CFET has sent appeal after appeal to Canadian Members of Parliament pleading for corrective action to be taken. So far to no avail.
Will it take the suicide of some innocent Canadian victim(s) to get our government and/news media to do something to fix the problem? I certainly hope not. But the possibility of this happening is very real.
If you think I am exaggerating the situation here is a copy of a letter by a Canadian victim who has previously openly declared he hopes he expires before his tax deferments do.
This victim has lived for years now with the stress and anxiety associated with being financially ruined by taxes on phantom income.
The writer of this letter is a Former employee of Nortel Networks Corporation.
--------------------------------------------------
In November of this year I had my 68th Birthday, I have now been retired for 9 years (not my idea but Nortel’s!)
As I reviewed my life I realized that perhaps the most defining moment came down to the time when I ticked the “Receive Shares” box rather than the “Receive Cash” box when exercising my Nortel Stock Options.
Had I taken cash I would be sitting here with over $1million in the bank plus my RRSP’s (which admittedly have been reduced over the past few months by over 30%).
In reality I now sit here with no cash and a debt of approximately $200K hanging over my head plus my RRSP’s (which have …etc!)
Why is that? Well back in 2000 the Government announced a program whereby an option holder could take shares instead of cash and defer the taxes until the shares were actually disposed of.
The catch, as I later found out, is that unlike RRSP’s where your deferred taxes are based on the amount you actually withdraw, the tax on options is always based on the amount you could have had if you had taken the cash and not the amount you actually get when you sell.
So the Government insists that no matter when I sell, or what I really get, I will owe tax based on over a $1million of imaginary income. In reality, if forced to sell today I will be lucky to receive $1thousand!
Graciously they also accept that under these circumstances I will have a loss, but they call it a capital loss and say I cannot claim that against income! I never had the money but they won’t let me balance any real loss against the phantom gains.
In addition Nortel closed at 69 Cents today in Canada and is on track to be de-listed in both Canada and the USA (and probably the rest of the world as well).
They lost an astounding $3.1Billion in the last quarter!
And in these dark times I do not see how they can survive. Particularly as the Canadian Government expects them to pony up a further Billion or so to bring the Pension Fund up to the required level.
Nortel is going to go under I think and trigger this tax debt (not just for me but many others, so beware!)
As I said I have no cash so it will have to come out of my RRSP’s, running the figures through my “Quick Tax” program shows that to come up with over $200k I will have to cash over $400K of RRSP’s which leaves me with almost nothing after 50 years of saving.
Further bad news, If Nortel goes under the Pension fund will have to reduce the size of all pensions.
If Nortel goes under the Retiree Health Plan ceases to exist.
So, having worked hard and honestly for 50 years almost everything is gone. What a fantastic retirement I am having!
Without this tax on phantom income I could probably still live reasonably well, with it – well I just don’t know.
I never dreamed my retirement would be this bad, and all because I ticked the wrong box! (I ticked it only because I didn’t need the cash and was trying to ensure my options didn’t expire, and of course I also misunderstood what they meant by Tax-Deferral)
They used to do it this way in the USA as well but after 2 suicides someone took notice and this year their Government acted. They are now taxed on what they get when they sell. Seems fair to me so why can’t my government see that? Heaven knows I’ve asked them enough times.
------------------------------------------------------
Why is the Canadian news media reluctant to publicize the distress and abuse this unjustified and insidious tax policy is imposing on thousands of our citizens.
Many victims are reluctant to speak out for fear of drawing the wrath of the Canada Revenue Agency and further verbal abuse from the people they voted to represent them in parliament.
I have seen copies of letters of appeal sent -- by several victims -- to their Prime Minister, and/or their riding Member of Parliament, and/or the Ministers of National Revenue and National Finance.
Many of those letters were never acknowledged and those that were gave replies that would be an insult to anyone with at least the intelligence of a fifth grader.
The Minister of Finance sent one victim this excuse:- “You have been taxed according to laws that have been on the books for many years – therefore your tax levy is justified.” (or words to that effect.)
What a sick excuse for ruining a person’s financial situation and destroying their peace of mind for the rest of their life.
Everyone over the age of 20 years has seen several Canadian laws -- that have been on the books much longer -- ruled out of date and no longer valid.
Our television public affairs programs – such as “The Fifth Estate” and “W5” – have not picked up on this issue which among other things violates every Canadians “RIGHT” to fair and just taxation.
Our Radio and Television talk show personalities such as CFRA’s Lowell Green and CBC’s Rex Murphy have failed to address this issue. Why not?
Are they personally -- or their bosses -- ignorant of this situation or are they intimidated by the fact they might put some subsidies in jeopardy? I suspect the latter as I have not yet concluded anyone -- in their right mind – could actually agree with taxing people to financial extinction against income they never received.
For more details on the Canadian victims of the taxable benefit fiasco visit web page www.cfet.ca
Read the press articles and sign the petition you will find there.
If you wish to show support for the CFET objective to achieve fair taxation then click on the link:- inquiry@cfet.ca and become a member.
CFET is non-partisan, non-profit, and has no membership fees or dues.
Victor Drummond ©
Tuesday, November 25, 2008
TWO BIRDS...
TWO BIRDS
A commentary on a single act essential to the
recovery of Canada’s Economy and to salvage
the reputation of Canada’s government.
Thereby effectively killing two birds with one stone.
By Victor Drummond ©
November 2008
Everyone knows the general classification for any organization that extorts money from honest, hard-working taxpayers without justification.
Organizations that practice this kind of money extraction -- purely on the grounds they do it because they can -- are usually tagged with an appropriate name.
Titles such as:- Thugs, Crooks, Extortionists, Bullies, Thieves, Goons, are among the more polite titles that might be considered applicable.
I am one Canadian that never expected to see the day the above titles could be fitting names for any part of our Federal Government.
A government known world wide for humanitarian qualities and among the first to rush to the aid of people – regardless of nationality -- when terrible natural disasters put the people of any other country in great distress.
These same politicians, however, have selective blindness and loss of hearing regarding appeals from their own honest, hard working citizens who have been financially decimated due to horrendous taxes levied on income that never existed, i.e. Phantom Income.
Whether by good luck or good financial management Canada’s economy has – so far – suffered the least damage of any of the G20 nations.
Many financial experts are saying the road back to world wide economic stability is paved with government tax dollars applied intelligently and effectively to restore:- (1)- consumer confidence in the economy and (2)- buying power.
The United States government has approved 700 Billion dollars to be used to fight the current economic recession. With few exceptions there has been no clear plan of action -- set forth -- for the application of this money.
One notable exception, however, was the passing bill HR 1424 -- at this time – amending their flawed Alternative Minimum Tax legislation, (AMT), and revoking all related taxes on phantom profits and setting a two year limit for compensating those already victimized thereby.
This action indicates the U.S. Congress either believes:-
(1)- A significant amount of recession fighting money will become effective when put back into the hands of taxpayers who were taxed on phantom income.
Or
(2) – Restoring local and world opinion of the United States government -- as an elected body of politicians that truly represent and protect honest, hard working citizens – is worth the cost of revoking all taxes and penalties levied on phantom income regardless of current economic duress.
Or
(3) – A combination of (1) and (2) above – which is truly killing two birds with one stone.
By comparison – so far – our Canadian government has mainly focused attention on our citizens who have recently lost their job – or have been warned they will lose their job soon because of declining sales and increasing cost.
Political party leaders, union bosses and mayors of city’s and towns -- that are now threatened
with economic disaster -- are saturating the news media with appeals for government action to buy-off the threat.
Where were these champions -- of the unemployed and financially distressed -- when the hi-tech market crash of the year 2000 created thousands of honest, hard working Canadians who were suddenly faced with huge taxes – levied on money they never received – and which taxes compounded the distress caused to those who also lost their jobs?
From the year 2001 up to and including the date of this article there has been no public outcry -- by any of our politicians, union bosses, mayors or anyone else in authority – condemning this unfair, unjust, abusive and demoralizing treatment of our fellow Canadians.
Are the victims generated by our flawed taxable benefit legislation – since the year 2001 -- any less worthy of the support of their elected representatives, or their union leaders, or the mayor of their towns and cities, than the victims of the current economic downturn?
So if our government can ignore the 2001 victims of a hi-tech economic downturn there is no honourable reason for providing any kind of financial support to current victims. That would only add favouritism to the list of screw-ups already perpetrated.
No doubt our government has a generous supply of the kind of letters, e-mails etc. sent in reply to those taxable benefits victims who appealed their unjust taxation over the past seven years.
On the other hand if our government would like to kill two birds with one stone they could follow the example set by the U.S. government when they passed bill HR 1424.
Readers are requested to inform their Member of Parliament which action they want the Canadian government to take.
(a) --Follow the U.S. government lead and -- Kill Two Birds with one stone --(duplicate U.S. bill HR 1424 for Canadian Taxable Benefit victims) – or (b) -- turn a blind eye and deaf ear to all appeals for government intervention.
Reference:- www.reformAMT.org and www.cfet.ca and www.yayacanada.com/MPs.html
Victor Drummond ©
A commentary on a single act essential to the
recovery of Canada’s Economy and to salvage
the reputation of Canada’s government.
Thereby effectively killing two birds with one stone.
By Victor Drummond ©
November 2008
Everyone knows the general classification for any organization that extorts money from honest, hard-working taxpayers without justification.
Organizations that practice this kind of money extraction -- purely on the grounds they do it because they can -- are usually tagged with an appropriate name.
Titles such as:- Thugs, Crooks, Extortionists, Bullies, Thieves, Goons, are among the more polite titles that might be considered applicable.
I am one Canadian that never expected to see the day the above titles could be fitting names for any part of our Federal Government.
A government known world wide for humanitarian qualities and among the first to rush to the aid of people – regardless of nationality -- when terrible natural disasters put the people of any other country in great distress.
These same politicians, however, have selective blindness and loss of hearing regarding appeals from their own honest, hard working citizens who have been financially decimated due to horrendous taxes levied on income that never existed, i.e. Phantom Income.
Whether by good luck or good financial management Canada’s economy has – so far – suffered the least damage of any of the G20 nations.
Many financial experts are saying the road back to world wide economic stability is paved with government tax dollars applied intelligently and effectively to restore:- (1)- consumer confidence in the economy and (2)- buying power.
The United States government has approved 700 Billion dollars to be used to fight the current economic recession. With few exceptions there has been no clear plan of action -- set forth -- for the application of this money.
One notable exception, however, was the passing bill HR 1424 -- at this time – amending their flawed Alternative Minimum Tax legislation, (AMT), and revoking all related taxes on phantom profits and setting a two year limit for compensating those already victimized thereby.
This action indicates the U.S. Congress either believes:-
(1)- A significant amount of recession fighting money will become effective when put back into the hands of taxpayers who were taxed on phantom income.
Or
(2) – Restoring local and world opinion of the United States government -- as an elected body of politicians that truly represent and protect honest, hard working citizens – is worth the cost of revoking all taxes and penalties levied on phantom income regardless of current economic duress.
Or
(3) – A combination of (1) and (2) above – which is truly killing two birds with one stone.
By comparison – so far – our Canadian government has mainly focused attention on our citizens who have recently lost their job – or have been warned they will lose their job soon because of declining sales and increasing cost.
Political party leaders, union bosses and mayors of city’s and towns -- that are now threatened
with economic disaster -- are saturating the news media with appeals for government action to buy-off the threat.
Where were these champions -- of the unemployed and financially distressed -- when the hi-tech market crash of the year 2000 created thousands of honest, hard working Canadians who were suddenly faced with huge taxes – levied on money they never received – and which taxes compounded the distress caused to those who also lost their jobs?
From the year 2001 up to and including the date of this article there has been no public outcry -- by any of our politicians, union bosses, mayors or anyone else in authority – condemning this unfair, unjust, abusive and demoralizing treatment of our fellow Canadians.
Are the victims generated by our flawed taxable benefit legislation – since the year 2001 -- any less worthy of the support of their elected representatives, or their union leaders, or the mayor of their towns and cities, than the victims of the current economic downturn?
So if our government can ignore the 2001 victims of a hi-tech economic downturn there is no honourable reason for providing any kind of financial support to current victims. That would only add favouritism to the list of screw-ups already perpetrated.
No doubt our government has a generous supply of the kind of letters, e-mails etc. sent in reply to those taxable benefits victims who appealed their unjust taxation over the past seven years.
On the other hand if our government would like to kill two birds with one stone they could follow the example set by the U.S. government when they passed bill HR 1424.
Readers are requested to inform their Member of Parliament which action they want the Canadian government to take.
(a) --Follow the U.S. government lead and -- Kill Two Birds with one stone --(duplicate U.S. bill HR 1424 for Canadian Taxable Benefit victims) – or (b) -- turn a blind eye and deaf ear to all appeals for government intervention.
Reference:- www.reformAMT.org and www.cfet.ca and www.yayacanada.com/MPs.html
Victor Drummond ©
Sunday, November 23, 2008
The road back to ...
THE ROAD BACK TO A BOOMING ECONOMY
A commentary on the cause of the present world economic woes
and the basic means of reversing the process.
By Victor Drummond ©
November 2008
Market watchers, Speculators and Investors have been well aware of the declining economy beginning with the hi-tech stock market crash in the year 2000.
Tens of thousands of people -- employed in the computer, communications, television industry’s and soon after the real estate business -- found the market for their products and services declining rapidly. The process started in the hi-tech sector but gradually widened and accelerated with time.
As their markets dried up manufacturing corporations cut back on production.
Lower production quotas required fewer employees and in efforts to remain profitable surplus employees were laid off.
Unemployed people seldom undertake to buy houses, cars, boats, airplanes, etc. and are not given good credit ratings.
The recently unemployed -- that already had a heavily mortgaged house and/or had bought expensive items on credit – found themselves defaulting on payments and losing possession of many things purchased on credit – up to and including their homes.
Financial institutions -- that had a large number of credit customers in payment default –
found themselves in financial distress and could not, or would not, provide credit to anyone.
Some went right out of business.
By the mid-year 2007 it became increasingly apparent the whole financial world was heading in the direction of a full blown depression.
Governments around the world began to talk of providing major employers – in financial distress -- with government assistance.
Financial experts argued that keeping these large corporations in business and curtailing mass layoffs -- by these corporations -- was imperative to the survival of the corporations and to the country’s economy.
It was acknowledged that in order to keep these organizations in operation -- at anything like their current level of employment -- would require tons of money.
The United States government, alone, has earmarked 700 billion dollars to finance an economic stabilization program.
This money, however, has not been applied -- as yet -- due to a pending change of presidents and the lack of a clear plan of action.
American authorities – who currently advise the government on financial matters -- want to know how the big three automotive corporations plan to apply any government money -- they may acquire -- to resolve their financial problems.
So far the authorities haven’t received a reply to that reasonable request.
Why anyone would even consider giving, or lending, billions of dollars to an industry – or even a single corporation -- that has lost its ability to turn a profit is a mystery to me.
There is a good reason why buildings -- where consumer products are fabricated – are called plants. That is because industrial plants parallel the performance of trees that produce editable fruit and grasses that produce editable grains etc.
Products wanted and needed by the worlds people.
Plants -- of both types -- that do not produce a needed or desirable product are generally classed as a weed, or nuisance plant.
Any farmer, or greenhouse operator, will tell you that when a plant -- in nature -- withers and dries up it doesn’t do any good to pour water on its leaves. In order to save the plant a person must water and supply nourishment to the roots.
Likewise it will not do any good to pour millions of taxpayer’s dollars into corporate coffers if no one wants, needs, or can afford the goods they produce.
The solution to this problem is:-
(1) The withering corporation(s) must offer a desired product.
(2) Next the product(s) they produce must be competitive in price, performance, appearance,and reliability.
(3) Governments can then do their part by making sure the common people have the means to buy these products.
The United States Congress has taken a right first move in the direction of improving the buying power of thousands of their ordinary citizens by amending their flawed Alternative Minimum Tax, (AMT), legislation.
In addition to fixing the AMT they are revoking all taxes levied thereby -- on phantom profits – and compensating those already victimized.
Ref:- www.reformAMT.org
Unfortunately for Canadians -- victimized in a similar way by our flawed taxable benefit legislation -- the Canadian government hasn’t recognized – as yet – just how punitive, abusive, unfair, and unjust their tax on money that never existed really is.
Ref:- www.cfet.ca
In every way it is proper, decent, honourable and fair for the Canadian government to follow the example set by the United States government to correct the flawed legislation and compensate those already victimized by it.
Failure to take corrective action places the Canadian Government in the position of being greedy, petty and uncaring of the abuse and distress their insidious phantom income tax has heaped on honest, hard working Canadians.
Another way governments can assist the common people -- to afford luxuries in addition to necessities – is to subsidize rebates on luxury items such as automobiles, boats, airplanes etc. which items may also be a partial necessity, i.e. transportation to and from work shopping etc.
If the billions of dollars set aside -- to fight this economic downturn – are made available to the grass roots population it will be the equivalent of watering the root of the withering industrial plants and people will buy our way back to world economic stability.
Readers who agree with this method -- of fighting the threatening world wide depression -- are invited to send this article to their Member of Parliament via the letter icon below.
Vic Drummond ©
A commentary on the cause of the present world economic woes
and the basic means of reversing the process.
By Victor Drummond ©
November 2008
Market watchers, Speculators and Investors have been well aware of the declining economy beginning with the hi-tech stock market crash in the year 2000.
Tens of thousands of people -- employed in the computer, communications, television industry’s and soon after the real estate business -- found the market for their products and services declining rapidly. The process started in the hi-tech sector but gradually widened and accelerated with time.
As their markets dried up manufacturing corporations cut back on production.
Lower production quotas required fewer employees and in efforts to remain profitable surplus employees were laid off.
Unemployed people seldom undertake to buy houses, cars, boats, airplanes, etc. and are not given good credit ratings.
The recently unemployed -- that already had a heavily mortgaged house and/or had bought expensive items on credit – found themselves defaulting on payments and losing possession of many things purchased on credit – up to and including their homes.
Financial institutions -- that had a large number of credit customers in payment default –
found themselves in financial distress and could not, or would not, provide credit to anyone.
Some went right out of business.
By the mid-year 2007 it became increasingly apparent the whole financial world was heading in the direction of a full blown depression.
Governments around the world began to talk of providing major employers – in financial distress -- with government assistance.
Financial experts argued that keeping these large corporations in business and curtailing mass layoffs -- by these corporations -- was imperative to the survival of the corporations and to the country’s economy.
It was acknowledged that in order to keep these organizations in operation -- at anything like their current level of employment -- would require tons of money.
The United States government, alone, has earmarked 700 billion dollars to finance an economic stabilization program.
This money, however, has not been applied -- as yet -- due to a pending change of presidents and the lack of a clear plan of action.
American authorities – who currently advise the government on financial matters -- want to know how the big three automotive corporations plan to apply any government money -- they may acquire -- to resolve their financial problems.
So far the authorities haven’t received a reply to that reasonable request.
Why anyone would even consider giving, or lending, billions of dollars to an industry – or even a single corporation -- that has lost its ability to turn a profit is a mystery to me.
There is a good reason why buildings -- where consumer products are fabricated – are called plants. That is because industrial plants parallel the performance of trees that produce editable fruit and grasses that produce editable grains etc.
Products wanted and needed by the worlds people.
Plants -- of both types -- that do not produce a needed or desirable product are generally classed as a weed, or nuisance plant.
Any farmer, or greenhouse operator, will tell you that when a plant -- in nature -- withers and dries up it doesn’t do any good to pour water on its leaves. In order to save the plant a person must water and supply nourishment to the roots.
Likewise it will not do any good to pour millions of taxpayer’s dollars into corporate coffers if no one wants, needs, or can afford the goods they produce.
The solution to this problem is:-
(1) The withering corporation(s) must offer a desired product.
(2) Next the product(s) they produce must be competitive in price, performance, appearance,and reliability.
(3) Governments can then do their part by making sure the common people have the means to buy these products.
The United States Congress has taken a right first move in the direction of improving the buying power of thousands of their ordinary citizens by amending their flawed Alternative Minimum Tax, (AMT), legislation.
In addition to fixing the AMT they are revoking all taxes levied thereby -- on phantom profits – and compensating those already victimized.
Ref:- www.reformAMT.org
Unfortunately for Canadians -- victimized in a similar way by our flawed taxable benefit legislation -- the Canadian government hasn’t recognized – as yet – just how punitive, abusive, unfair, and unjust their tax on money that never existed really is.
Ref:- www.cfet.ca
In every way it is proper, decent, honourable and fair for the Canadian government to follow the example set by the United States government to correct the flawed legislation and compensate those already victimized by it.
Failure to take corrective action places the Canadian Government in the position of being greedy, petty and uncaring of the abuse and distress their insidious phantom income tax has heaped on honest, hard working Canadians.
Another way governments can assist the common people -- to afford luxuries in addition to necessities – is to subsidize rebates on luxury items such as automobiles, boats, airplanes etc. which items may also be a partial necessity, i.e. transportation to and from work shopping etc.
If the billions of dollars set aside -- to fight this economic downturn – are made available to the grass roots population it will be the equivalent of watering the root of the withering industrial plants and people will buy our way back to world economic stability.
Readers who agree with this method -- of fighting the threatening world wide depression -- are invited to send this article to their Member of Parliament via the letter icon below.
Vic Drummond ©
Sunday, November 16, 2008
Congratulation ReformAMT and..
CONGRATUALTIONS ReformAMT AND U.S. CONGRESS
Canada’s American counter-part lobby groups have succeeded
in persuading the American Government to take the Right and
Honourable action while CFET makes no tangible progress.
A report by Victor Drummond ©
November 2008
It took seven years of lobbying the U.S. government -- and a lot of money --but the efforts of the American grass roots organizations – to achieve fair taxation for their citizens has paid off.
For details of their struggle and the results they have achieved visit:- https://www.siliconvalley.com/news/ci_10950780 and read the article titled:-
Rescue bill offers relief to some valley taxpayers hit with the AMT
The rescue BILL No. H1424 does a lot more than provide relief to some Silicone Valley Workers. To read the whole story go to the ReformAMT web page:- www.ReformAMT.org
To give you a preview of what you will see there following is a clip from the ReformAMT group web pages.
October 4, 2008 - To our Champions in Congress, ReformAMT would like to express our deep gratitude and appreciation for all that you have done for us. Your efforts have saved many families, their homes and their childrens' future.
Brief Overview of the Law
What the new law does :
1. Removes all income (AGI) limitations (no more income phase-outs)
2. Refunds your AMT credits over 2 years
3. Abates all outstanding liabilities, interest, and penalties
Refunds all anything you have already paid (including penalties and interest) to the IRS associated with ISO-AMT liability
Does anyone think -- for one moment -- the impact of huge taxes on phantom income is less devastating on Canadians than the same tax has on American victims?
If the United States Government can make this costly correction to their tax system while in the midst of an economic crisis what possible excuse can the Canadian government fabricate -- for not doing the same for Canadians -- when they tell us our economy is in relatively much better shape?
If you have any concern for your own basic RIGHT to fair taxation – which is nonexistent while our taxable benefit legislation remains as it is currently written – then visit the “Canadians for Fair and Equitable Taxation” (CFET) web page, www.cfet.ca
Sign the petition you will find there and contact your local Member of Parliament, (MP).
You know what to tell your MP. Also:- Send them a copy of this article.
The best Christmas present our government can give to all Canadians this year is to follow the U.S. Government lead and revoke all taxes and penalties based on income that never existed.
Victor Drummond ©
Saturday, November 8, 2008
When my country called..
WHEN MY COUNTRY CALLED
A commentary on the call to military duty
I received in 1945. How I responded
and why.
By Victor Drummond ©
November 2008
Veteran’s Day – based on the signing of the armistice ending WWI at the 11th hour on the 11th day of the 11th month 1918 – performs its intended annual purpose of reminding everyone of the sacrifice made by ordinary citizens who served in the defence of their nation. Especially those who lost their lives or were left handicapped in the process.
Having been born in the year 1926 my formative years ocurred during the great economic depression from 1929 to 1939. Our family was in financial distress during that decade and my father was on the road most of that time – looking for employment – along with hundreds of thousands of others.
I didn’t know what it was like to have a regular spending allowance and my greatest event was to get a few cents -- once in a while -- with which I could buy a candy grab-bag at the corner store.
In 1939 – when I was 13 years old – a small White-wear business started up near our home.
That was when I landed my first regular paying job. Prior to that -- from age 10 to 13 -- I was lucky to have an opportunity to earn a few cents cutting/splitting firewood or mowing someone’s lawn with a borrowed push-mower or shovelling snow from someone’s sidewalk.
My employment at the White-wear factory was part time, after school hours, and paid $0.15 per hour. My duties ranged from sweeping the production floor, with a 24” wide push-broom, to crawling under a line of sewing machines to repair or replace broken drive belts and keeping the fabric cutting tables supplied with material to cut. This latter duty involved carrying heavy bolts of cloth from the first floor stockroom, up a flight of stairs, to the second floor cutting tables.
Having a job which provided me with about $5.00 a week spending money made me the envy of my friends and school mates. I now had enough money -- every week -- to indulge in such things as going to the movies, enjoying an occasional ice cream soda at the local drug store and treating a friend or two to the same thing.
The White-wear job lasted from 1939 to 1941. By mid 1941 a local defence industry was going 24/7 producing war materials and begging for employees. Even though I was only 15 years old they hired me as an electrician’s apprentice and I began working a full 48hrs/week. My starting rate was $0.35 per hour. This pay level was more than double the hourly rate I had been receiving and more than triples the number of hours per week that I was previously working.
Taking the defence industry job meant foregoing my high-school education but in exchange I was now earning over $15.00 every week AND contributing to my country’s war effort.
Within a year my pay had gone up to $25.00 per week and I was looking forward to my 16th birthday when I could try for my drivers beginners permit and buy my own car.
Sure enough in mid 1942 I received my driver’s license and a co-worker -- at the defence plant – sold me his 1929 model “A” ford roadster. Furthermore he had a farmer’s permit which provided him with extra rationed gasoline coupons plus a couple of rationed tires per year to keep the car on the road.
Life had never been so good. My friends and I went driving at every opportunity even when we had no where in particular to go. Eventually my gas ration coupons ran out and I had to suspend use of the car to the end of the year.
In 1944 I sold the Model “A” roadster and purchased a snazzy 1932 Chevy Convertible. It had a Yellow Body and Black fenders. It was a striking looking vehicle. There were two spare wheels -- one on each front fender -- which gave some measure of tire availability. Especially since I had no tire ration coupons with which to purchase new tires if needed.
Shortly after buying the Chevy Convertible I received a registered letter from the Department of Defence. Enclosed was an invitation to join Canada’s Military and participate in the defence of the British Empire – which included Canada.
It wasn’t a hard decision to make.
Perhaps I could have requested deferment of military service on the grounds that I was already working in a defence industry. Perhaps I could have requested deferment on the grounds that I was now the sole support of my recently widowed mother. At the very least I could have declined “Active Service” and remained in Canada where I would be relatively safe from harm.
Those possibilities never entered my mind at the time. My older brother was already overseas in the Canadian Army. We didn’t know where he was relative to the fighting but we later found out he had taken part in the invasion of Italy and was in the midst of the heaviest fighting to defeat Mussolini’s army and drive the Nazi Army out of Italy.
My sister’s husband was also overseas in the Canadian Army. He was involved in the “D” day invasion to drive the Nazi army out of occupied Europe.
So when my country called I was mentally prepared to give up my new-found luxuries, abandon my recently widowed mother, forsake my trade apprenticeship, sell my prize Chevy and take up arms in defence of my country.
Had I discovered that Canada’s government of the 1940’s practiced the same lack of decency and gross unfairness -- I have found in Canada’s recent governments -- my willingness to give up anything to defend that kind of regime would have been greatly impaired.
Any rationale -- whereby honest, hard working citizens are legally robbed of huge sums of money purely and simply because of the honest method by which they acquired publicly traded shares
in their employer’s corporation – is one that any disciple of Joseph Goebbels would be justly proud.
When the Canadian government called on us -- during their time of need -- my family and I responded positively and without hesitation. Having ancestors that came to Canada as British Empire Loyalists and relatives -- that were devout British Monarchists at that time -- no able bodied person of military age -- in our household -- would even think of shirking our duty to our country.
Now it seems we were naïve -- to the extreme -- in believing Canada was – and would remain – a place where democracy, fairness, honesty, decency and justice would be equally available to all of our honest, hard-working citizens.
Believe me when I say it came as an unbelievable shock in the year 2006 -- while assisting a close relative to update some prior year tax returns -- to discover that he had been taxed many thousands of dollars on money he never ever received.
This unwarranted tax exceeded his gross annual income for that entire year and caused him to re-mortgage his home in order to pay it.
By what convoluted, insidious, extortionist rationale could this happen in Canada?
So I asked this relative if more Canadians had been legally robbed the same way or was he the only one?
His answer came as another shock. He informed me there were hundreds of his former co-employees who had also been levied huge taxes on money they never received.
The policy of taxing phantom income – I discovered -- was a plague right across Canada hitting innocent, hard-working Canadians employed in a wide range of hi-tech corporations.
INCREDIBLE. This kind of rip-off just isn’t acceptable in my Canada.
What were Canadian tax authorities thinking of? What were intelligent, alert Canadians doing about it?
This absolutely extortionist tax situation must be some kind of error.
An error -- in Canadian tax legislation -- that the Canadian government would correct smartly as soon as they became aware of the problem. (Dream on.)
Contacting only a few -- of his co-workers -- revealed that many victims of this defective legislation had appealed to every government authority from their local Member of Parliament all the way up to the Prime Minister, (Paul Martin) and later (Stephen Harper).
Appeals for relief from this tax had been submitted by victims over the past seven years. There is no way the previous and current governments of Canada did not know all about this defective legislation and the punitive, devastating impact it was inflicting on honest, hard-working citizens.
Most tax relief, appeal messages, were totally ignored. And the rest were given a boiler plate reply which said -- in essence – “you have been taxed according to legislation of long standing and therefore your appeal is denied.”
Since when has the length of time a law has been on the books had any bearing on its quality? Usually the opposite is true and is definitely true in this instance.
The bottom line is:- Avenues of appeal -- made available by the Canadian government to those who were victimized by this flawed legislation -- are designed to discourage all such victims from even making an attempt. When it comes to violation of their basic rights – guaranteed under the Canadian Charter of Rights and Freedoms – no one is minding the store.
When comes to an appeal to the Supreme court of Canada – the appellant must first lose their case in a lower court of justice. An expensive route to justice.
When it comes to appealing their case to the “Tax Court of Canada” – the outcome is a crap-shoot. The tax court of Canada does not base its decisions on the fairness, or justification of the defective legislation.
When it comes to appealing to the recently appointed “Tax Ombudsman” – do not waste your time or his. The mandate of the “Tax Ombudsman” is limited to assuring your communications with Revenue Canada are polite. Not that they must treat you fairly.
How about making a request for a tax re-assessment via the Chief of Tax Appeals Officer?
This is another crap-shoot decision system. If the appellant is lucky they may get a favourable decision – but don’t count on it.
In spite of claims -- by our political leaders -- they are humane, compassionate family people they all turn a deaf ear and blind eye to the unfairness of the defective taxable benefit legislation and the distress and financial havoc it is imposing on its victims.
The only action that restores the right of all Canadians to fair and equitable income taxation, and compensates those already victimized, is the one recently taken by the U.S. Government to correct a similar problem they had with their Alternative Minimum Tax, (AMT), legislation.
They amended their defective AMT legislation and revoked all taxes and penalties based on the taxing of phantom income.
Every intelligent and fair minded person knows instinctively that is only way to correct the problem. As Don Cayo said in his article --which appeared in the Vancouver Sun Newspaper --
“Change the law don’t just mask the problem”. (Article can be found via a Google search)
Every one of our federal party leaders has avoided acknowledging the problem and thereby avoids taking proper measures to correct the defective taxable benefit legislation and compensating those already victimized by it.
My advice to our political leaders on this 90th veteran’s day of remembrance.
While paying tribute -- to those who fought in defence of this country -- try a little harder to remember those who have earned a tribute from their employer’s and for their efforts have been financially abused by our defective taxable benefit legislation.
Ref: - www.cfet.ca
If you do not remember what the words, decency, honesty, justice and fairness stand for – then don’t call on us this time if you need help.
My family and I have already more than fulfilled our duty to a government that picks our pockets while we stand at attention to salute our flag.
See also:- “Canada Remembers – and so do I” – November 2007
Victor Drummond ©
A commentary on the call to military duty
I received in 1945. How I responded
and why.
By Victor Drummond ©
November 2008
Veteran’s Day – based on the signing of the armistice ending WWI at the 11th hour on the 11th day of the 11th month 1918 – performs its intended annual purpose of reminding everyone of the sacrifice made by ordinary citizens who served in the defence of their nation. Especially those who lost their lives or were left handicapped in the process.
Having been born in the year 1926 my formative years ocurred during the great economic depression from 1929 to 1939. Our family was in financial distress during that decade and my father was on the road most of that time – looking for employment – along with hundreds of thousands of others.
I didn’t know what it was like to have a regular spending allowance and my greatest event was to get a few cents -- once in a while -- with which I could buy a candy grab-bag at the corner store.
In 1939 – when I was 13 years old – a small White-wear business started up near our home.
That was when I landed my first regular paying job. Prior to that -- from age 10 to 13 -- I was lucky to have an opportunity to earn a few cents cutting/splitting firewood or mowing someone’s lawn with a borrowed push-mower or shovelling snow from someone’s sidewalk.
My employment at the White-wear factory was part time, after school hours, and paid $0.15 per hour. My duties ranged from sweeping the production floor, with a 24” wide push-broom, to crawling under a line of sewing machines to repair or replace broken drive belts and keeping the fabric cutting tables supplied with material to cut. This latter duty involved carrying heavy bolts of cloth from the first floor stockroom, up a flight of stairs, to the second floor cutting tables.
Having a job which provided me with about $5.00 a week spending money made me the envy of my friends and school mates. I now had enough money -- every week -- to indulge in such things as going to the movies, enjoying an occasional ice cream soda at the local drug store and treating a friend or two to the same thing.
The White-wear job lasted from 1939 to 1941. By mid 1941 a local defence industry was going 24/7 producing war materials and begging for employees. Even though I was only 15 years old they hired me as an electrician’s apprentice and I began working a full 48hrs/week. My starting rate was $0.35 per hour. This pay level was more than double the hourly rate I had been receiving and more than triples the number of hours per week that I was previously working.
Taking the defence industry job meant foregoing my high-school education but in exchange I was now earning over $15.00 every week AND contributing to my country’s war effort.
Within a year my pay had gone up to $25.00 per week and I was looking forward to my 16th birthday when I could try for my drivers beginners permit and buy my own car.
Sure enough in mid 1942 I received my driver’s license and a co-worker -- at the defence plant – sold me his 1929 model “A” ford roadster. Furthermore he had a farmer’s permit which provided him with extra rationed gasoline coupons plus a couple of rationed tires per year to keep the car on the road.
Life had never been so good. My friends and I went driving at every opportunity even when we had no where in particular to go. Eventually my gas ration coupons ran out and I had to suspend use of the car to the end of the year.
In 1944 I sold the Model “A” roadster and purchased a snazzy 1932 Chevy Convertible. It had a Yellow Body and Black fenders. It was a striking looking vehicle. There were two spare wheels -- one on each front fender -- which gave some measure of tire availability. Especially since I had no tire ration coupons with which to purchase new tires if needed.
Shortly after buying the Chevy Convertible I received a registered letter from the Department of Defence. Enclosed was an invitation to join Canada’s Military and participate in the defence of the British Empire – which included Canada.
It wasn’t a hard decision to make.
Perhaps I could have requested deferment of military service on the grounds that I was already working in a defence industry. Perhaps I could have requested deferment on the grounds that I was now the sole support of my recently widowed mother. At the very least I could have declined “Active Service” and remained in Canada where I would be relatively safe from harm.
Those possibilities never entered my mind at the time. My older brother was already overseas in the Canadian Army. We didn’t know where he was relative to the fighting but we later found out he had taken part in the invasion of Italy and was in the midst of the heaviest fighting to defeat Mussolini’s army and drive the Nazi Army out of Italy.
My sister’s husband was also overseas in the Canadian Army. He was involved in the “D” day invasion to drive the Nazi army out of occupied Europe.
So when my country called I was mentally prepared to give up my new-found luxuries, abandon my recently widowed mother, forsake my trade apprenticeship, sell my prize Chevy and take up arms in defence of my country.
Had I discovered that Canada’s government of the 1940’s practiced the same lack of decency and gross unfairness -- I have found in Canada’s recent governments -- my willingness to give up anything to defend that kind of regime would have been greatly impaired.
Any rationale -- whereby honest, hard working citizens are legally robbed of huge sums of money purely and simply because of the honest method by which they acquired publicly traded shares
in their employer’s corporation – is one that any disciple of Joseph Goebbels would be justly proud.
When the Canadian government called on us -- during their time of need -- my family and I responded positively and without hesitation. Having ancestors that came to Canada as British Empire Loyalists and relatives -- that were devout British Monarchists at that time -- no able bodied person of military age -- in our household -- would even think of shirking our duty to our country.
Now it seems we were naïve -- to the extreme -- in believing Canada was – and would remain – a place where democracy, fairness, honesty, decency and justice would be equally available to all of our honest, hard-working citizens.
Believe me when I say it came as an unbelievable shock in the year 2006 -- while assisting a close relative to update some prior year tax returns -- to discover that he had been taxed many thousands of dollars on money he never ever received.
This unwarranted tax exceeded his gross annual income for that entire year and caused him to re-mortgage his home in order to pay it.
By what convoluted, insidious, extortionist rationale could this happen in Canada?
So I asked this relative if more Canadians had been legally robbed the same way or was he the only one?
His answer came as another shock. He informed me there were hundreds of his former co-employees who had also been levied huge taxes on money they never received.
The policy of taxing phantom income – I discovered -- was a plague right across Canada hitting innocent, hard-working Canadians employed in a wide range of hi-tech corporations.
INCREDIBLE. This kind of rip-off just isn’t acceptable in my Canada.
What were Canadian tax authorities thinking of? What were intelligent, alert Canadians doing about it?
This absolutely extortionist tax situation must be some kind of error.
An error -- in Canadian tax legislation -- that the Canadian government would correct smartly as soon as they became aware of the problem. (Dream on.)
Contacting only a few -- of his co-workers -- revealed that many victims of this defective legislation had appealed to every government authority from their local Member of Parliament all the way up to the Prime Minister, (Paul Martin) and later (Stephen Harper).
Appeals for relief from this tax had been submitted by victims over the past seven years. There is no way the previous and current governments of Canada did not know all about this defective legislation and the punitive, devastating impact it was inflicting on honest, hard-working citizens.
Most tax relief, appeal messages, were totally ignored. And the rest were given a boiler plate reply which said -- in essence – “you have been taxed according to legislation of long standing and therefore your appeal is denied.”
Since when has the length of time a law has been on the books had any bearing on its quality? Usually the opposite is true and is definitely true in this instance.
The bottom line is:- Avenues of appeal -- made available by the Canadian government to those who were victimized by this flawed legislation -- are designed to discourage all such victims from even making an attempt. When it comes to violation of their basic rights – guaranteed under the Canadian Charter of Rights and Freedoms – no one is minding the store.
When comes to an appeal to the Supreme court of Canada – the appellant must first lose their case in a lower court of justice. An expensive route to justice.
When it comes to appealing their case to the “Tax Court of Canada” – the outcome is a crap-shoot. The tax court of Canada does not base its decisions on the fairness, or justification of the defective legislation.
When it comes to appealing to the recently appointed “Tax Ombudsman” – do not waste your time or his. The mandate of the “Tax Ombudsman” is limited to assuring your communications with Revenue Canada are polite. Not that they must treat you fairly.
How about making a request for a tax re-assessment via the Chief of Tax Appeals Officer?
This is another crap-shoot decision system. If the appellant is lucky they may get a favourable decision – but don’t count on it.
In spite of claims -- by our political leaders -- they are humane, compassionate family people they all turn a deaf ear and blind eye to the unfairness of the defective taxable benefit legislation and the distress and financial havoc it is imposing on its victims.
The only action that restores the right of all Canadians to fair and equitable income taxation, and compensates those already victimized, is the one recently taken by the U.S. Government to correct a similar problem they had with their Alternative Minimum Tax, (AMT), legislation.
They amended their defective AMT legislation and revoked all taxes and penalties based on the taxing of phantom income.
Every intelligent and fair minded person knows instinctively that is only way to correct the problem. As Don Cayo said in his article --which appeared in the Vancouver Sun Newspaper --
“Change the law don’t just mask the problem”. (Article can be found via a Google search)
Every one of our federal party leaders has avoided acknowledging the problem and thereby avoids taking proper measures to correct the defective taxable benefit legislation and compensating those already victimized by it.
My advice to our political leaders on this 90th veteran’s day of remembrance.
While paying tribute -- to those who fought in defence of this country -- try a little harder to remember those who have earned a tribute from their employer’s and for their efforts have been financially abused by our defective taxable benefit legislation.
Ref: - www.cfet.ca
If you do not remember what the words, decency, honesty, justice and fairness stand for – then don’t call on us this time if you need help.
My family and I have already more than fulfilled our duty to a government that picks our pockets while we stand at attention to salute our flag.
See also:- “Canada Remembers – and so do I” – November 2007
Victor Drummond ©
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