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Timothy Gordon Stobbs' Submission in Response to Finance Canada's Tax and Other Issues Related to Publicly Listed Flow-Through Entities (Income Trusts and Limited Partnerships) consultation:
To Whom It May Concern:
I can understand the governments concerns about letting too much tax dollars get away in any situation, but I feel that the government should not change the rules around income trusts and taxes.
For a young Canadian investor's stance, you are proposing changing something that will take care itself in the long haul if it is left alone. Low interest rates and a strong desire for cash flow are driving many investors to income trusts. Yet in the long haul as interest rates rise and as some unsuitable businesses fail as income trusts, investors will move along to the next big thing for investment opportunity. Changing the tax rules now will only hurt the portfolios of everyone who is saving for retirement or those in retirement looking for a better rate of return than bonds.
If you have concerns about losing tax revenue to tax-exempt investors, I suggest you remember that these investors are partially funding most Canadian's retirements. We already pay the government enough based on the fact we are seeing surpluses in the budget, if you are looking for more money I would appreciate it if you don't take it out on our pension plans.
Thank you for your time and I appreciate the opportunity to comment on this idea. You may post this comment on your website.
Timothy Gordon Stobbs
Fort St. John, British Columbia