Thank you very much, Mr. Chair.
I am going to continue the dialogue with Mr. Fortin because I would like a clarification concerning a study he tabled. Page 5, Table 2A, tax on investments in income trusts and the impact on income trusts if they are placed in a RRSP and where taxes carried forward eight years.
A footnote under the table states: “Based on an average federal/provincial personal income tax rate of 38%”. The thing that bothers me is that every year when I meet with my financial planner and he gives me a basic RRSP refresher course, he tells me that one of the advantages of contributing to an RRSP is that your tax rate when you contribute is generally higher than it is once you retired, when your income is usually lower.
Have you taken this in consideration into your calculations and determine what the government would loose if an entire segment of the tax field was subject to a lower taxation rate?