In defence of massive bank profits
Re Banks rake in profits and reduce staff, Letter Dec. 9 Hello. I am your neighbour. Perhaps not next door, but in your community. We shop in the same markets, frequent the same parks, enjoy the same sunshine. I have read your recent criticisms of the profits of the Canadian banks and other large firms. I own those businesses. Well, not wholly. I am a shareholder.
Over the years, my wife and I have worked hard, and, at times, smart. We saved in our RRSPs and learned that our comfortable retirement would best be funded by investing in Canadian “blue chips,” with which you take umbrage. That was my money that you borrowed to buy your house and your car, and my money provides the student loans for your children. In return, I get, each year, 4 or 5 cents for each dollar that we have saved. On a quarterly basis, that is one Canadian penny for each dollar.
You may think that I am rich. But we have a moderate income that enables us to live comfortably. We maintain our yards and our home, which helps keep the property values of our community a little above average; and for that we pay our share of taxes.
We are not on welfare, nor do we qualify for the guaranteed income supplement (GIS). Our income is primarily from our investments in Canada; the capital upon which these businesses are founded, providing employment and services to other Canadians. And our income is substantially taxed.
Like you, our spending attracts more tax (HST). So some 50 per cent of our dividend-sourced income goes back to our government as taxes. That is not a complaint. Taxes are the cost of living in this great country and community.
So please, lay off the criticism about the earnings of my companies. Those earnings provide you with many benefits.
B. Williams, Belleville, Ont. Businesses become more efficient and thus need less staff as technology advances. The question to ask is not one about greed or shareholders’ return but what the banks can do to help the society with the money they make.
Betty Zee, Etobicoke