Tories Thumb Noses to Promise

[FiveParadox]

The Government of Canada, during the election campaign, promised that capital gains (provided they were reinvested within six months) would be exempt from any form of taxation. However, the noticeable omission of this promise from the agenda of the Honourable James Flaherty, P.C., M.P., the Member for Whitby—Oshawa and Minister of Finance, has some thinking that the Conservative Party of Canada is backing down from its promise.

The Honourable John McCallum, P.C., M.P., the Member for Markham—Unionville and Finance Critic for Her Majesty's Loyal Opposition, is not surprised at the admission, nor the idea of the Government dropping its promise from the agenda; he thinks that the promise was unreasonable to begin with, and that it would not have been possible given that Jon Kesselman, the Public Policy Professor of Simon Fraser University, has come to the conclusion that the program would cost approximately $1 500 000 000 to implement, as opposed to the mere $150 000 000 budgeted for the purpose.

Liberal Party of Canada[/i]]During the election campaign, the Conservatives promised to make all capital gains exempt from taxation, as long as the funds were reinvested within a six month period. The proposal was widely criticized by economists because of difficulties in implementation as well its prohibitive cost.

"The capital gains proposal is administratively impossible because tax authorities are unable to follow a particular dollar from capital gain on Stock A to reinvestment in Stock B to reinvestment in a cottage," McCallum continued. "All the experts I have consulted confirm this view. It simply cannot be done."

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:?: Sources
Click here for the Web site of the Liberal Party of Canada.