And in case you mistakenly thought the Harpocrite was doing this for the good of Canada, or the industry well think again, he was looking to line his governments pockets. Lose a billion to the US but recoup a billion in taxes.
"Stephen Harper's Conservative government stands to reap a windfall approaching $1 billion in taxes on duties being refunded to Canadian lumber producers under a controversial deal struck to end the softwood trade war with the United States.ut many lumber companies are now facing hefty federal tax bills — in some cases, as high as 35 per cent — on the duties as soon as they're refunded by Washington."
And since this now is a matter of money for his coffers, well the Softwood lumber debate in the house now becomes a Confidence Vote. Surprize, Surprize.
"Because of those tax measures, the final trade deal will eventually face a confidence vote in the House of Commons. That means if opposition parties, which have criticized the framework deal, vote against the measure, it could bring down Harper's minority government and trigger a federal election."
http://plawiuk.blogspot.com/2006/05/softwood-redux.html
[Proofreader's note: this article was edited for spelling and typos on May 7, 2006]
Note: http://plawiuk.blogspot...
Softwood Redux
Posted on Saturday, May 06 at 16:08 by eugeneContributed By
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"Besides giving up more than $1 billion (U.S.) in duties, the framework deal also sets an export tax when Canadian softwood sales comprise 34 per cent of the U.S. lumber market, as well as a second tax that kicks in whenever lumber prices south of the border fall below $360 per 1,000 board feet." -Star
So the deal essentially says 'we believe in free trade, so long as it isn't FREE'. You'll note the first part, if lumber comprises 34% of the market that has as much to do with the production of THEIR market as ours. This is FAR from being 'dumping', or 'subsidization', which is what triggered the duties in the first place.
In other words, the canadian government has agreed to pay them tax if we send them too much wood. The second part is even worse, where a tax is leavied if US wood falls below a certain price. If wood falls below a certain price then obviously that's because supply has outstripped demand-meaning the US is supplying LOTS of their own wood.
So in effect, there is a tax if 'we' sell too much wood in the US, and a tax if we sell too little.
I'm starting to understand why debate often talks about interprovincial trade barriers. We'd be far better off if trade went east-west rather than north-south.
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Expect little from life and get more from it.
It would appear Canada is selling our soul to clinch the deal. Harper can then pacify all to whom he is faithfull.
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Expect little from life and get more from it.