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The Halloween Massacre

January 21, 2021

On October 31, 2006 the Canadian Minister of Finance Flaherty destroyed everyone’s investments in Canadian Royalty Trusts. It was called the Halloween Massacre.

These were tax advantaged investments that reduced the amount of revenue the Canadian government collected from the cash flow from the investments. So, the Canadian government forced all of the Canadian Royalty Trusts to convert to corporations. It didn’t matter to them at all that retirees had invested everything into the CanRoys and were living on the distributions. It is much easier to raise taxes against corporations (evil profit-making corporations) than it is to raise taxes on old people. People vote. Corporations don’t.

The Canadian government did this even though Canada had a revenue surplus at the time.

Socialism.

Political risk in your investments is very real.

Think about the wealth you have in your retirement accounts.

https://www.investopedia.com/terms/h/halloween_massacre.asp

From → All my posts

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