Lin Gackle continues her tired socialist complaint that conservatism is only helping the rich get richer with her argument that income trusts and tax-free savings accounts are “essentially the same thing”. Once again, she needs another lesson in economics.
Here’s why: Income trusts were implemented by corporations in which investors purchase shares called units, the income trust goes about it’s business, earns revenue of which some is paid to the investors, who in turn pay tax on this income. Tax-free savings accounts (TFSA's) on the other hand, are financial vehicles implemented initially by the Harper government to help Canadians build their own saving nest eggs without any requirement to pay tax on either the initial investment or any income derived from that investment. The difference is that unit holders of income trusts pay tax on income, similar to the tax paid on dividend income. Contrary to Gackle’s argument these are not the same.
Gackle goes on to say that, “one of the first principles of conservatism is that civil society should come before government and voluntary groups are generally more effective in preventing and reducing social problems than a big bureaucratic state”. She then asks; “are conservative governments going to off-load responsibilities to community groups, private sector groups, public agencies and individuals”?
My answer to her is “Why not”?
Gackle neglected to explain that part of conservatism includes two other critically important principles: personal responsibility and self reliance. This means that citizens where, and when ever possible, must be willing to look after themselves and each other, rather than expect some level of socialist government to do it. If down-loading any current bureaucratic expense can be privatized or supported in anyway by community or private groups it must be done to help Alberta clean up the financial mess left by the Notley government.
A perfect example of downloading what could eliminate many social expenses involves investments in tax-free savings accounts. TFSA’s are open to all Canadians who have reached the age of majority, have a social insurance number and are willing to invest in their future instead of waiting for government handouts. If begun now, by the time any individual reaches retirement age, he or she would most probably never need any social assistance beyond Old Age Security and Canada Pension Plan payments. The TFSA savings program implemented by Harper has been the best program of personal responsibility and self-reliance that any government could have begun and contrary to Gackle’s argument should be expanded.
If Ms. Gackle or anyone else wishes to question my research I welcome the call, you know where I am.
- L. Leugner
