Trudeau proposes increasing income tax rate to 93%

[Catsumi]

Blueliner

Good find. We are being sold down the river.

Now sit back and wait for all Trudeau Toadies deflections to roll in.

[Rwede]

ANALYSIS: Could Bill Morneau benefit from his decisions on overseas tax treaties?

Vassy Kapelos has been named the new host of the West Block. By Vassy Kapelos
Ottawa Bureau Chief & Host of The West Block Global News


It's not just conflict of interest accusations being leveled at the finance minister, critics are also accusing Bill Morneau of hypocrisy. Vassy Kapelos explains.


A few weeks ago the question was whether the finance minister’s former firm could benefit from his decision on overseas tax treaties. Now, thanks to revelations that Bill Morneau still owns 2,271,691 shares in Morneau Shepell, the question is more personal.

Could Morneau himself stand to benefit from the review of overseas tax treaties his government is conducting?

Morneau’s former firm operates a subsidiary in the Bahamas. It has two full-time employees and it operates as Morneau Shepell (Bahamas) Ltd. It’s also registered in Barbados as of October 2016.

Here’s where it gets interesting.

Canada and Barbados have a tax treaty. It was negotiated by Ottawa in 1980 and it makes setting up subsidiaries in Barbados very attractive to Canadian companies; the island remains a favourite destination for corporations like Morneau Shepell.

Overall, Canadian corporations held nearly $80 billion in assets there in 2015.

Under the treaty, companies can funnel their profits through a Barbados-based subsidiary and utilize the country’s ultra-low tax rates. When we say ultra-low, we mean ultra-low – as in one to 2.5 per cent. When the income comes back to Canada, no taxes have to be paid. It’s quite the deal.

SNIPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

But according to Dennis Howlett of Canadians for Tax Fairness, under current Canadian law, no company has to prove what’s known as ‘economic substance’.

“That’s a problem,” Howlett told Global News in an interview. “Other countries have brought in legislation like that…to close these loopholes.”

The federal government is currently reviewing overseas tax treaties – including the one with Barbados. So far, Morneau has said very little about where that review stands.

In a July interview with the Toronto Star, Morneau noted that any changes to tax treaties may take some time.

Such change “requires us to do some work,” Morneau said. “We’re going to do that work. But we’re not going to throw the baby out with the bath water.”

The caution expressed in those comments is a red flag for the Conservatives who want to know if Morneau is holding back on renegotiating the Barbados treaty because he will benefit with the status quo.

So Conservative MP Pierre Poilievre filed what’s known as an order paper question on the subject today, Order paper questions allow MPs to directly ask ministers questions on any number of subjects.

In the question, Poilievre asked if Morneau has been present for any meeting that included discussion of Barbados as a tax haven, and whether the finance minister informed the Ethics Commissioner his former firm had registered in Barbados.

The optics aren’t pretty, but the answers to those two questions will determine if there is an official conflict of interest. Morneau has to deliver a response within 45 days.

https://globalnews.ca/news/3812241/anal ... -treaties/

[Rwede]

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[Catsumi]

What a sweet deal!

Wish I could make use of it.

[Gone_Fishin]

In your opinion, who's lying in this video?

https://www.facebook.com/CanadiansForLi ... AtNd9HvAmQ

[Rwede]

In your opinion, who's lying in this video?

https://www.facebook.com/CanadiansForLi ... AtNd9HvAmQ

I can't believe that we as taxpayers are paying the Trudeau Liberals to spew talking points that fail to answer simple accountability questions, over and over and over.

The Trudeau Liberals must be removed from power as soon as possible. Their actions, or lack thereof, are a complete theft of money from salary-paying taxpayers.

[Ka-El]

The Trudeau Liberals must be removed from power as soon as possible. Their actions, or lack thereof, are a complete theft of money from salary-paying taxpayers.

How long until the next election? Between Trudeau and Andy it is starting to look more and more like Canada might have its first federal NDP government. With the Democrats posed to regain power in the States, this could bode well for Canada.

[Gone_Fishin]

The Trudeau Liberals must be removed from power as soon as possible. Their actions, or lack thereof, are a complete theft of money from salary-paying taxpayers.

How long until the next election? Between Trudeau and Andy it is starting to look more and more like Canada might have its first federal NDP government. With the Democrats posed to regain power in the States, this could bode well for Canada.

I'll gladly grant Jagmeet 1/2 the left wing vote. Trudeau can have the other 1/2. The rightful, thoughtful, intelligent Prime Minister, Andrew Scheer, can then have a few terms to mop up the huge crap pile Trudeau has created in record time.

[Ka-El]

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[Omnitheo]

*removed*

[hobbyguy]

https://www.theglobeandmail.com/news/politics/liberals-passive-income-tax-changes-could-bring-billions-of-dollars-a-year-watchdog/article37058936/

"The Parliamentary Budget Officer says Ottawa's planned changes to passive income rules for small businesses will eventually raise up to $6-billion a year, but the spending watchdog supports the government's claim that only a very small percentage of small businesses will be affected."

SNIP

For instance, Mr. Askari said that only about 4.3 per cent of professionals – including doctors, dentists and lawyers – would be affected by the changes related to passive investment income.

SNIP

The passive income plan – which will be launched as part of the 2018 budget – was revised so that it only applies to investment income above $50,000. That threshold represents a 5 per cent return on $1-million in savings.

SNIP

"Thursday's PBO report found that CCPCs with high passive investment income are disproportionately large in size. About 32 per cent of passive investment income in 2014 was earned by firms with more than $15-million in taxable capital, and represent 2.3 per cent of CCPCs. It also states that 60 per cent of all passive income – representing about $11-billion – is earned by CCPCs with no active business income, "suggesting they were set up solely for the purpose of generating income."

The PBO numbers are broadly in line with figures released by the Finance Department in October. They showed that 1.3 per cent of CCPCs hold between $1-million and $2-million in passive investment assets and 1.6 per cent hold over $2-million. Yet those two categories represent nearly 90 per cent of all passive income earned by CCPCs."

So the revised plan looks like it makes a lot of sense.

FYI, through the grapevine I hear that Liberal Party grassroots are pushing for a serious attack on offshore money. Morneau and his buddies won't like that, but from what I gather it is comin' at them