Bay Street star David Rosenberg, known for his forecasting skills, made the news last week by spreading rumours. The Globe and Mail reported on February 16 that Rosenberg, famous for predicting the U.S. housing bust, told his followers that he had heard that Finance Minister Bill Morneau is planning to “soak the rich” in his next budget by raising taxes on capital gains. “It is a classic move to make everyone poorer, cloaked under the veil of redressing income inequality,” Rosenberg said in Breakfast with Dave, a tipsheet for which Rosenberg’s employer, Gluskin Sheff + Associates, charges $1,000 for an annual subscription.
The Globe didn’t say where Rosenberg got his information, so I assume Rosenberg didn’t either. Still, he might be onto something. On February 17, Prime Minister Justin Trudeau delivered a speech that likely disappointed many of the men and women who spent thousands of dollars to attend dinner with him. Trudeau told a black-tie-and-gown audience in Hamburg, Germany (text, video) that for too long, executives have been putting their shareholders ahead of their employees, their workers’ families, and the communities in which they operate. “It’s time to pay a living wage, to pay your taxes and to give your workers the peace of mind that comes with stable, full-time contracts,” Trudeau said.
So now we know why Canada’s capitalists are getting nervous.
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