Canada: Tory tax idea may hit RRSPs

[Newsjock]

http://globeandmail.com/servlet/story/RTGAM.20060116.wcapgains0116/BNStory/Business

(Americans: When you see "RRSP," think roughly "IRA.")

The trusty old RRSP could be rendered obsolete for some investors under a campaign promise by the Conservatives to eliminate taxes on capital gains that are reinvested within six months.

... Current capital gains rules require investors to report 50 per cent of your profits as income. An investor who did this probably would end up paying less in taxes than someone who used an RRSP and made a withdrawal that was taxed at their usual rate.

... “It's actually an amazingly tiny group of well-off Canadians who will capture the lion's share of the benefit,” said Jim Stanford, economist at the Canadian Auto Workers union.

[hopeisaplace]

1. typically conservative...someone has to care about the world's wealthy

it's a dirty job, but governments are obligated to
protect the rich..:sarcasm: