Wednesday, November 15, 2006

Harpers big mistake.

What were Falherty and Harper thinking ?? Strange way to want your name recorded in the history books. I can see the entry now.
On Halloween October 31 st 2006, Canada's finance Minister introduced a very poorly planned reversal of a promise not to tax income trusts.
The move to tax trusts was a result of what's rumoured to be some rapid calculations on the back of a napkin while out for an early supper with Prime minister Steven Harper. The poorly executed calculation and the resulting tax introduced on trusts resulted in the loss of 25 billion dollars and affected millions of everyday Canadians.
Seniors groups, RRSP holders, foreign investors and everyday Canadians reacted quickly to the broken promise and the loss of funds. Millions of emails and faxes were received by MPs, TV shows , newspapers and radio shows covered the issue for many investors as they relayed the stories of Harpers broken promise and the ten of thousands and in some cases hundreds of thousands of savings this had cost them.
The Harper government (known for being very hardheaded and PM Harper even being called a Hardass by some of his own ministers ) stood steadfast on the change.
The Harper conservatives being a minority government could not however withstand the voters displeasure in the election that followed the new tax by about 6 months. Harper and the conservatives were virtually wiped out in the election achieving only 21 % of the popular vote and 18 seats in parliament.

No comments: