A professional engineer working with a major gas producer writes: Imagine a nation whose citizens took pride in owning dynamic businesses that formed a significant part of its own economy - businesses dedicated to running efficiently and giving the resulting profits back to the people: A people who enjoyed a level of income from investment that afforded them a decent standard of living, replacing or supplementing their employment income, and topping up social security and pension income from their Government as they entered retirement. Until recently, Canada was this nation…

And he concludes a well-informed letter to suggest that the Canadian, ”government has just launched a devastating attack on the standard living and quality of life after retirement of most Canadians. The brunt of the attack is borne immediately by senior citizens, and those who for various and valid reasons cannot or choose not to enter the workforce. For the rest of us the effect will be delayed, but should start becoming apparent when the November financial statements arrive.

In summary, income trusts do not represent a significant tax issue to the government. More income generally means more income tax! More income in the hands of individual Canadians means a higher standard of living...and isn’t raising the standard of living of everyone really what it’s all about?

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