Flim Flam Flaherty continues to lie to try to cover up his inept budget. The
incompe-Tory plan to eliminate interest deductibility for Canadian business expansion has caught Flim Flam in outright lies on several occasions.
The
Report on Business reports,
“If one looks at what I've said, every time I've spoken on this topic, I've said the focus and target is on double-dipping, that is double interest deductions by corporations using tax havens,” the minister said this week.
So let's look at the original text in the budget speech. Flaherty said,
"We’re putting an end to the practice of corporations borrowing in Canada to fund business operations abroad, then using the interest deductions to offset Canadian income.It is a practice that has resulted in Canadian taxpayers indirectly subsidizing the foreign operations of multinational corporations, and paying the price in reduced business activity and job losses in Canada.No more. The interest expense on debt incurred to acquire shares of a foreign affiliate will no longer be deductible."No mention of "double-dipping". Not a word...not in the speech and not in the Budget Plan. That is because the "double-dipping" explanation is an alibi. An alibi for a Minister who did not do his homework. A Minister who cavalierly projected the cost of this "tax fairness" effort at a mere $40Million for Canadian business. Business has since rightly pointed out that the true cost will be at least $1Billion...and potential job losses for Canadians as our employers become less competitive.
The whole idea was a huge mistake...but Steve Harper is a "mission accomplished" sort of guy...and those types NEVER admit they were wrong. Just look at Bush and Iraq for proof. Or just think back to the Mike Harris days of the Nonsense Revolution in Ontario...and while you reminisce remember that Flaherty, Clement, Baird and Van Loan were all part of that debacle too.
Pressure mounts for O'Connor's exit
