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Ed and Judy Bohnet's Submission in Response to Finance Canada's Tax and Other Issues Related to Publicly Listed Flow-Through Entities (Income Trusts and Limited Partnerships) consultation:
I would, on behalf of my husband and myself, like to submit our response to your questions regarding flow Through Entities, i.e.. Income Trusts.
We are seniors who raised a family of 5 children and owned and operated a small excavation company. We have never drawn UI, social assistance or benefited from any other government programs. We are not bragging or complaining but merely setting the facts before you in order that you may fully understand our position.
Because we do not draw any pensions other than CPP, OAP and a small pension from the company I worked for the last lyres, we have to be fairly creative when thinking about retirement income. We do not have enough money available to risk speculating on risky high return ventures so Income Trusts seemed to be the perfect vehicle for people in our position. We have not invested a huge percentage of our portfolio into these funds, as we realize that there is risk involved in picking solid companies to invest in, however we did not expect the blow could come from our Government. Who can do the DD to protect against that.
We sincerely hope that Mr. Goodale will use wisdom when making his decision, and take into account all the impacts that a heavy tax on the Trusts will have on a large proportion of the baby boomers and seniors who depend on income from investments to meet the rising cost of living. A fair and level playing field should not only be offered to the company and government pensioners , large corporations and Mutual Fund organizations, it should also be offered to those of us who chose to build our own future through the free enterprise system. Isn't that what Canada is all about, the ability to make choices and to be self sufficient?
Thankyou for the opportunity to give input,
Ed and Judy Bohnet
North Saanich, British Columbia