“I don’t think they (higher-income earners) are going to act very favourably. To them, it’s basically going to be an increase in taxation,” says McCaw.
When asked what he would tell his clients, who are predominantly from a higher income bracket, McCaw said “I think that I’d ask them to evaluate what the motive was in making the annoucement and keep that in mind next time they are called to cast a vote.”
According to McCaw, securities that produce dividends are often given preferential tax-relief treatment, making them a popular choice amongst investors, who are looking for income to live on. The stocks are typically come from larger companies listed on the TSX, including banks and integrated oil companies, he says.