in News Departments > Policy Watch
print the content item

Canada's government recently announced that the country is implementing a new Tax Fairness Plan that the government says will restore balance and fairness to its federal tax system by taxing income trusts in line with corporations.

According to Jim Flaherty, Canada's minister of finance, the plan will include a tax on distributions from publicly traded income trusts (or publicly traded flow-through entities) and limited partnerships. This year alone, corporations representing almost $70 billion in market capitalization have either converted themselves into flow-through entities or have announced plans to do so, Flaherty says.

The new plan also includes a reduction in the general corporate income tax rate of one-half percentage point as of Jan. 1, 2011. The 2006 Budget earlier announced that the general corporate income tax rate would be reduced from 21% to 19% by 2010 - this means that starting in 2011 the new rate will be 18.5%.

Flaherty also notes that the plan will benefit low- and middle-income seniors by increasing the age credit amount by $1,000. It will also permit income splitting for pensioners beginning in 2007 that, according to the government, will increase the incentive to save and invest for family retirement security.


Trachte Inc._id1770
Latest Top Stories

Could New Desert Plan Spell The End Of California Wind Energy Development?

The California Wind Energy Association says it is disappointed with the draft Desert Renewable Energy Conservation Plan, which was recently released by state and federal agencies.


New U.S. House Bill Includes Wind PTC Extension

U.S. representatives have introduced the Bridge to a Clean Energy Future Act of 2014, which would extend the production tax credit (PTC) and other provisions through 2016.


Utility-Scale Wind And Solar Keep Getting Cheaper

A new study measures the levelized cost of energy from various technologies and suggests that the costs of utility-scale wind and solar power are catching up with those of traditional sources, even without subsidies.


The Song Remains The Same: Ontario Seeks More Science Before Lifting Offshore Ban

The Ontario government says the nearly four-year-old offshore wind moratorium will remain in place until the province fully understands the technology’s impact on the environment.


Why States Should Adopt A Renewable Portfolio Standard

A new study analyzes the potential benefits of state renewable energy mandates, as well as recommends what such policies should include.

Renewable NRG_id1934
Canwea_id1984
UnitedEquip_id1995
Future Energy_id2008