Time For A Second Look At Income Trusts

There's a lot of talk these days about the need for Canadians to save more for retirement, but with a sputtering economy, weak job creation numbers and interest rates seemingly stuck at near-record lows, that's easier said than done. Fortunately, Canada has a new federal government that has committed itself to applying open-minded and fresh thinking to tackling difficult issues. So, here's a suggestion for Prime Minister Justin Trudeau and his government looking for ways to boost the economy and create a steady stream of investment income for Canadians who need it:

It's time to give income trusts another look.

Background

On October 31, 2006 the Conservative government killed income trusts and, in so doing, dealt a serious blow to capital formation and retail investor choice in Canada. It appeared at the time that the government was concerned about a loss of corporate tax revenue (despite the fact that numerous studies did not support that fear) and the unbridled