Mr. Speaker, the Prime Minister said there is no greater fraud than a promise not kept.
He emphatically promised during the last election never to tax income trusts. Then the Conservative government recklessly broke its promise by imposing a 31.5% punitive tax on income trusts, with devastating consequences particularly on seniors.
That broken promise wiped out over $25 billion of hard-earned retirement savings of over two million Canadians. It also led to private equity takeovers of over 15 income trusts, which reduced government tax revenue by an estimated $6 billion a year.
What is worse, independent experts have shown clearly that the Minister of Finance's decision on income trusts was based on flawed methodology and incorrect assumptions.
The time has come for the finance minister to acknowledge his mistake, to apologize to Canadians who were unfairly harmed by the reckless broken promise and to repeal the punitive 31.5% tax.