Can’t a fellow spend a few days away relaxing without the Government of Canada reneging on a tax promise? Those royalty trusts really tied the income portfolio room together, man.

Slings and arrows; and nonetheless a break in the Cévennes was a fine idea. Trees, balmy weather, good walking, trees, autumnal colours, happy children, trees, friends, wine, trees, roasted chestnuts (ah, thanks to those trees) and so on.

Also it was an excuse to check out the timber plantation opportunities (did I mention the trees?) Jeremy Grantham keeps banging on about in his quarterly letters (free registration required).

Sustainable forestry is of course bio-friendly, touchy-feely, oxygen producing and soul-soothing. Cash, on the other hand, is liquid and unconstrained by the vagaries of green politics (cross-reference Canadian tax politics). It’s not certain this scribe’s environmental credentials will be enhanced by the choice at hand: more study required.

NB: No, I did not make up the name of the wine; and lest Seigneur d'Arse wishes to complain, a rose by any other name would smell as sweet. Really.

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6 comments

  1. Charles Butler // 11/03/2006 02:31:00 PM

    The income trust story is a beauty on its own. But when you think that it's the Conservatives that are doing it, it boggles. Yesterday, they further announced that NO exceptions would be made, not even in the oil patch wherein resides their only dependable political support. Remember, the Conservatives are the result of a forced marriage between the old PC's and Reform - the former having no base anywhere since the demise of Brian Mulroney and the latter never having had any chance of getting past the Saskatchewan border, being dominated by rabid Albertans. The real question, though, is, "How are they going to blame it on Toronto?".

    Excellent, if understaffed, blog, by the way.

    Regards

  2. RJH Adams // 11/03/2006 02:55:00 PM

    Thoughtful comment, thanks. I await the decision on tax level with interest; and I can't help thinking if the prime motive was merely to prevent erosion of the tax base that the 4 year grace for existing trusts would simply be indefinite. But no, the tax rake widens under a guise of levelling the playing field for all.

    I had a look at your blog - should we all be studying the olive oil industry?

    Understaffed? It's true production here is low. But it's free; and tries to the avoid copy,paste and comment syndrome found frequently elsewhere.

  3. Charles Butler // 11/03/2006 05:31:00 PM

    It might be a tax grab, but it's more likely the chickens coming home to roost. Reform agreed to amalgamate with the PC's in order to get out of Alberta. It had been a party dominated by ranters, religious fanatics and Toronto-bashing firebrands that had tried various times to get a foothold in Ontario counting on the vote of conservative religious groups - unsuccessfully, as you can imagine. BCE is an Ontario company and a very powerful one at that, exlaining why the "policy" on existing trusts took another day or two to come out. Telus, the other telecom involved was originally the Alberta phone monopoly. Stephen Harper finds himself with few friends this week.

    What's really disastrous is the amount of money that has been spent buying up BCE stock knowing it would be converted. That would be serious widow and orphan money. Bad politics in general which will bring back the "natural governing party" in short order.

    We'll see how it plays out.

    Ibex Salad will slowly find its form. Thanks for checking it out. I believe you'll be visitor number 1, for which there might be cash prize.

    Regards

  4. Lakhbir // 11/16/2006 10:29:00 PM

    Motive obviously is to prevent further erosion of tax base, and have enough money to hand out in other tax cuts come the budget (if opposition don't topple them before hand) before fairly imminent election. Any one want 1% off the GST, personal and corporate income tax cuts?

    It also signifies incompetance on behalf of the Conservatives since when the Liberals floated the idea only months ago for the very same reasons the Conservatives were against it.

    Personally speaking I can't stand Mr Harper so with any luck the Conservatives will lose the next election!

    The more worrying question is, who will be the next Liberal Party leader?

  5. Charles Butler // 11/19/2006 10:38:00 PM

    When the Whigs win the next one and, White Knights that they are, roll back some (but not all - sorry to say, Mr. Adams) of the income trust tax, we will all be amazed at the sight of Pierre Trudeau line dancing with Ernest Manning at the corner of King and Bay.

    For a fascinating photo of Mr. Harper, check out http://www.maxpower.ca/wp-content/uploads/2006/01/harper_cowboy.jpg. The Conservatives jumped through hoops to supress it during the last election.

    Regards

  6. Lakhbir // 11/29/2006 09:37:00 PM

    The link to Harper photo that Charles posted is not working ....but I managed to track it down

    http://www.maxpower.ca/meet-stephen-harper-canadas-new-prime-minister/2006/01/23/

    I can understand why the Conservatives would want to suppress it.

    Personally speaking, I would be surprised to see a partial roll-back of the income trust tax. The Liberals wanted to equalise the playing field with respect to income trusts and corporations.

    The Liberals never rolled back the GST as promised. So why bother now? It would be a permanent reminder of what the Conserbatives did.

    Lakhbir

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