In case anyone missed it last year, here is a quote from Monte Solberg, then Conservative Finance Critic in opposition, commenting on the Liberals’ plan of the day to amend the tax rules guiding income trusts on the Toronto Stock Exchange:
“We are supporters of income trusts and we oppose tax measures that would raise taxes on income trusts”
Similarly, here is the Conservative election promise on the issue from less than a year ago:
“A Conservative government will….Stop the Liberal attack on retirement savings and preserve income trusts by not imposing any new taxes on them.”ÂÂ
[ED: Both quotes are from the Globe and Mail, Wednesday, November 1, 2007, Page A1]
Given what they announced last night in relation to this issue, it would seem that we have yet another flip flop from the crew who told us they were going to be different. I can’t wait to see how the faithful will spin this one.
Stupid to break the promise; and stupid from a policy perspective. BCE and Telus will doubtless find a way to get a tax loss on to the books, investors have lost share value, and the government will lose the one-time windfall from the trust conversions.