Withdraw Income Trust Taxation and Reform Corporate Taxation in Canada

To Mr. Jim Flaherty, Minister of Finance







Taxing Income Trusts is detrimental to the Canadian Economy for many reasons all of which have been presented to the CPC since 2004 by various studies, think tanks and taxation experts. We need lower taxes in this country - thereby stimulating job; economic and standard of living growth.







We ask you to reform the Corporate tax system; reduce Corporate rates towards zero; and withdraw the taxation on Income Trusts.







Key Issues you must address:







-Reversing political promises makes Canada an untrustworthy investment destination. How does this benefit our country?







-Foreign investors will now see their taxation on Trusts increase to a real 41 \% rate. How does this benefit our country?







-80 \% of Income Trusts were for firms with market capitalisation of less than $1 billion. Income Trusts were necessary for these firms to access capital at good rates. How does raising taxes on these firms stimulate our economy?







-GDP growth is vital to increase employment and living standards. How does taxing Income Trusts help our economy to grow ?







-The Canadian corporate tax system is the 2nd worst in the world with real burdens and rates at least 30\% higher than our major competitors. KPMG and other reports provide documentation to support this claim. We need major comprehensive tax reform not higher taxes on Income Trusts. If there is no tax reform how does our country benefit ?







-Why is there not a comprehensive spending and tax reform policy by the CPC ? How does a $13 Billion surplus plus more taxes on Income Trusts benefit our country ?







Respectfully yours, concerned Canadian citizens who are demanding real tax reform.