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I'll admit, I'm not that familar with income trusts and how they work.

As I understand it, today's annoucement means that all income trusts will be taxed as corporations, and the tax benenfits for using this type of corporate structure are eliminated. This is scaled in for current trusts, with full taxation occuring in a few years. This is obviously a huge negative for all income trusts, and they are down quite a bit across the board in response.

I've been looking, but I can't find out exactly what the impact will be on these trusts - ie. income tax rates are x%, and will move to x% in a few years. Does anyone know anything about that? It will be interesting to see what the trusts do in response - perhaps there is another loophole that will be exploited going forward. I saw something over on the Canada board on about the U.S divvy rate moving from 15% to 41%.

Timmy's guided towards 34% tax rates going forward which is comparable with U.S corporations, so it seems like the Canadian govt is simply moving to close a loophole and move their tax revenues to more in-line with U.S tax rates. That seems to make sense, even if it makes a lot of Canadians mad.

Anyone see any great bargains? This would make a great mid-issue update for the GG brain trust IMO. I'm leery of the oil and gas trusts because I think the oil/gas run-up is largely done, but I am looking closely now at the two Matthew mentioned, as well as Sleep County.

Insight appreciated. This could be a time when fortunes are made...

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