LEVEL THE FIELD FOR INVESTORS AND ENTERPRISES SUBMISSION TO THE DEPARTMENT OF FINANCE CANADA CONSULTATION ON INCOME TRUSTS NOVEMBER 2005 LEVEL THE FIELD FOR INVESTORS AND ENTERPRISES SUBMISSION TO THE DEPARTMENT OF FINANCE CANADA. [...] The central policy issue is whether the current tax structure and rules affecting income trusts and corporations are distorting the behaviour of business managers or of investors and thereby undermining efficient markets and the competitiveness of the Canadian economy. [...] In particular, the government is seeking better information about whether and to what extent the trend toward trust formation is having an impact on federal revenues, on the organization of businesses or on the overall efficiency of the economy. [...] To the extent that the relatively favourable tax treatment of income trusts is leading to lower federal revenues now, its impact on retirement savings is positive both for the economy and for the sustainability of Canada’s social programs. [...] CONSULTATION ON INCOME TRUSTS NOVEMBER 2005 THE IMPACT ON ECONOMIC EFFICIENCY Whatever the impact of income trusts on federal revenues in the short and long term, the policy question that really matters is whether the current regulatory and tax structure is changing investor choices about where to invest within the economy, and whether any such change is having a negative impact on economic growth