Workers Want Tax Credits NOT Tax Cuts

Despite some shady dealings with managment of a Manitoba LSIF fund; Crocus, LSIF's they have gotten unwarranted abuse in the press. However given the shady dealings by CIBC, Royal Bank, TD Bank/Price Waterhouse, and the Porteus fund and others which make LSIF's problems pale in comparison, they are still the way to go for working class investors. LSIF's are based on Union start up capital investment based on pension funds, which encourage investment by union members and other workers giving them a very real tax break, due to matching provincial and federal tax credits which can be between 15-20%. Very real money in out pockets, thank you. And given it is held for eight years and has a maximum investment of $10,000 it is a real opportunity for workers to make both a tax credit and interest while directly contributing to the growth of capitalist enterprise. LSIF have not been a failure, they are start up venture capital, and as such are a Risky investment, while they may not have made as much in interest as other funds, or bonds, or stocks, they have made interest and they have a 30% tax credit in Ontario. Now the Liberal government in Ontario wants to cut its nose to spite its face..... Ontario Liberals killing tax credit for labour sponsored funds Decision will impact 46 funds with $3 billion in assets Alberta has no such LSIF, our Provincially funded Venture Capital fund was sold off years ago, and workers in Alberta do not have the opportunity to benefit in tax credits like workers in other provinces. While LSIF have been responible for investing in start up companies in Alberta. Ironic that. Hey you know its bad when the capitalist press attacks the idea. Ontario will join Alberta, P.E.I. as labour fund Scrooges Once it eliminates tax credits for labour-sponsored venture-capital funds, Ontario will join the ranks of the least supportive jurisdictions for these funds. That distinction is currently shared by Alberta and Prince Edward Island, neither of which provides any tax breaks for labour fund investors. Investors in these two provinces receive only the 15% federal tax credit of up to $750, which applies across Canada. And is it any wonder workers don't invest in RRSP's. Sheesh I get more of a tax credit from my union dues than I do investing in an RRSP! Which is why LSIF are so popular with workers. Read the rest of the article at: http://plawiuk.blogspot.com/2005/09/workers-want-tax-credits-not-tax-cuts.html

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