But this is the self-proclaimed newspaper champion of the common man, after all, so naturally they've found some common men as victims:
On paper, former hospital janitor Ron Cann is down about $18,000, which is more than he earns in a year. Noel Chaney of Vancouver Island estimates he lost about $65,000 and has started to think about selling his house. David and Lorraine Marshall of Cornwall stand to lose about $100,000, and that's enough to make David regret every lawn sign he pounded into the ground for the Conservatives in the last election.
"The big thing is they lied to us," said Marshall, a former trucker, of the government's decision to tax income trusts, a popular investment vehicle among retirees. "I worked for the candidate here, putting lawn signs up and all those things based on this one issue, income trusts.
"They said they wouldn't touch it. This is completely out of the blue."
It isn't just that the Conservatives changed the rules on income trusts; it's the fact they reversed their stance on the issue that has investors hopping mad.
Lost in all these heart-wrenching stories of retirees' dreams and financial security cruelly shattered overnight is one simple fact: no one forced them to put all of their eggs in one basket.
If they gambled everything on income trusts, the responsibility for their losses is theirs alone. Market conditions change every day, and it would have been irresponsible to assume that income trusts would remain untouched forever.
Don't shed too many tears for those who forgot the first lesson of investing for retirement: diversify!
5 comments:
The concept of 'Corporations fair share of taxes' is socialist drivel. Corporations do not pay taxes! Their shareholders (-$25,000,000,000 yesterday) pay those taxes.
For a corporation to pay taxes, it would have to have a large hoard of cash to draw down. In the absence of this hoard, they pay taxes out of their gross revenues leaving less for their employees, clients, shareholders, and suppliers.
The money corporations earn is either invested, or distributed. If it is invested the taxes are deferred to allow future growth. If it is paid to others (employees, shareholders, suppliers), it is later taxed in their hands.
If the corporations distributions are to foreign interests, there should be a witholding tax.
You can't protect against stupidity and greed. As you say, diversify.
Ditto
I wonder if they bought bags full of Nortel at $100 too.....
Jim L
Wow! I have never never never supported the Conservative Government in Canada...never! I'm reconsidering this position now.
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