
Another new group has jumped on the political band wagon to decry income trust taxes. At a press conference hosted by independent member of parliament, Garth Turner, CRIIA announced that it has arrived.
The group says it was formed to represent the interests of the millions of ordinary Canadians who are trying to cope with those difficulties facing retirees and pensioners. The group said that, “Canada’s population is aging. Two-thirds of our workers have no employer pension plan. Those Canadians have to save on their own for their retirement...Once retired, they then have to generate enough income off their savings to pay the bills. Increasingly, these people find themselves on the short end of the stick as interest rates and income returns have fallen and, more recently, as some government policies work against them.”
iTrust Institute is studying the key features, perceived potential & benefits of income trusts starting from the premise that:
Equities managed and structured like income trusts to flow net gains through to owners by way of frequent and regular distributions of cash can offer superior rates of overall return, support market growth, enhance economic productivity and contribute to growth of the tax base with less risk than other equities given honest managers and a fully competitive market supported by open communications.
We will test this notion and explore related questions.