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Page 10, Whltby Free Press, Wednesday, May 26, 1993 businss news IZ'EESE SiTKniKS1 VLADIMIR BULAJ (Ieft) -'of Dynex 'Goverrment Programs for Industry and Engineering talks with Glenn Laba of the Business' symposium held May 18 and 19 National Research Council at the at Le Gala, Whitby. Photo by Mark Reesor, Whitby Free Press Li* 3 dozen per custounr rMini Danish or i Mini Muffins only Reg. OnIy611.251I wfth lUis cupon M L Okffoe.qÉ.Tu.daM -PN -NAY 1380 Hopkins Street Whitby 666- 1177 Your Family Is Growing Your new baby has corne home, but what is in store for hini or her? That depencis upon how wýell you safeguard your child's future - making sure there will always be funds available for a college educatien, for example. That is where 1 can help. 1 cari show you how te protect your child's future through a care- fuly anid professionally plarined Metropoiten Life financial pro- gram. Don't you owe it te the aduit you want your child te be? Michael Shreve 213 Byron St. S. Whitby 430-3052 ODMetropolitan Lite PINE HILL SPECIALTV ADVERTISING Business Cards, Caps, Calendars, Keytags, Magnets, Matches, Pens, Truck Signs, and much more. Diane Marchand 428-1244 Budget bad for business, says Chamber FROM PAGEZ1 the retail sales tax te previeusly unaffected areas suc h as in- surance premiums will take tee much money eut of the economy, Faux said. Conibinod with a minimum tax on medium and large cor- porations te take effect next year, "I question whether Ontario is open for business," ho said. Faux conceded that overyene must share in the cost of reduc- ing ntario's $78.6-billion debt (tho total of ail yearly budget deficits) but foît that more "cras- tic moasures" are required. "Tax increasos are okay te some extent, but we 500 govorn- nient sp ondin g as a major part of the preblem," ho said. 's net boon addressed hard enough. The goverament is net doing as much as private indus- tr bas done.» %xpanding the sales tax te cover insurance, sanci, gravel and soil will meen an extra oxponso for the Durham Board of Educa- tien. But Farr expects the board will likely eat the addod cost of liebility insuranco and reduce the number of its construction projects rether than pass the increaso on te ratepayers. "I have te reserve the right te respond at a leter date, we're stil looking at it," she said. "But I think we cen absorb it mn-bouse at this point." However, Farr warned that the outcome of the government's social contract negotiatiens niay have a significant bearing on school boards. Quoen's Park hopes to cut $2 billion fromn its $43-billion public fayýroll and toachers are in lino frthe biggest hit. The province is seeking wage concessions of $520 million from elementary and secondary school teachers, plus another $170 mil- lion fromn collegoeand univorsity professors. Regardless of whet transpires in negotiations, Ferr said the govrnment will achieve its goal. "Thoy're looking te save $520 million in education. t will be the social contract or they'lI reduco transfor peymonts,-" she said. About 40 per cent of the Dur- ham board's fundin g cornes froin the province, Farr added. «Personally, I'm net very happy, I don't like paying more in taxes," said Edwerds. "There's ne incentive that inm aware of that would cause cein- panies te increaso production or expand. I was hoping we might soe it," hoie ddod. Howrever, Edwerds did praise the goverament for abolishing both the commercial concent- ration tax levied on parking lots in the Greeter Toronto Aroa (GTA) and the $5 tire tex. Municipelities within the GTA were subject te, the controvorsiel tex on parking lots unless park- ing fées were waived (as was the case in WhitILy for severai mnonths) while communities only "10 miles away» but enjo ing the boneflits of boing neer te GTA were exempt, Edwerds noteci. Although ho did net know whether extending the eight per cent sales ta>. te parking lots and meters was Tnerely replacing one tex with enother, Edwards said the new tex will et least bo apylied to, aIl. "Until wo geL the deteils, my sense is the budget will net affect the Town of Whitby in any extra- ordinary Wey,» ho said. "I don't know about the social contrect and what that will do,» Edwards cautioneci. Although municipalities. tend te boe ffected more b>' provinci ai decisions, Edwards said elI three levels of goverament must share responsibil ity for impreving Cenada's financiel woes. Ho noted. thet a freeze on transfer payments froin Ottawa toe h rovinces is foîlby munici- pal officiels who mnust meke do with less mono>' froni the provin- cial government. As a result, the impact of downsizing gevernment et the senior levels is borne by local retepayers, Edwards seid. Calling iL an unequiale tax," Edwards said the properttLax "Wherever you live, that's what you're assessed on,"»he said, unliko income tax wich is a fairer method of taxation. Edwards said ho will propose at a future meeting ofGÙTA involving ail governments bo for- nied te examine the property tax system. "I boliove the cost of running the country should bo done on the most jquitable basis pos- sible," ho said. (our Financial Health I erek Dutka Other people's money Stop and think about it. Do you know of anyone who bas ever become wealth, who has done it without using 'Other P p e 's M o n y ' ( 0 F M). InImny years as a financial planiner, I have yet te find anyone who bas ecome woalthy without using OPM. Do y ou know of a fanmer who hasn't used OPM (borrowved money) te holp him becomne successful? Or a businessman who h as started a business, and kept it going, without OPM? I don't believe thore is such a person living. But, if borrowing money holps croate wealth, how corne 90 per cent of Canadians are afraid te do se? We're afraid te borrow for investnient purposes. I guess I'm lucky, because my dad taught me when I was just a littie follow. 'Derek, if you can borrow monoy at-4 per cent and invest it at 5 per cent, you are making 1 per cent per year on other peoplo's monoy." I reniomber that, and I continue te ijse that idea te this day. But niy dad only told'me haif the stery. Maybe hie didn't realize that if I borrowved money at 4 per cent and invosted it at 4 per cent, I would still be maki ng nioney. 'He's crazy,". you're saying. Think about it. If I borrow monoy at 4 per cent and use it for invostmont purposes (business, farm invostmont fund, stecks, bonds, etc.), it becomos tax-deductibe. If lirn in the 50 per cent tax bracket, that means the 'true cost' of borrowi ng i s only 2 per cent (after the tax deduction), and if I invost in 'ownership' of any sort that oarns 4 per cent in either dividonds or capital gins (or combination of both) that bears only a small amount oîftaation Im stili ahead by at least 1 per cent per year, even though Ï borrowed et 4 per cent and only gained 4 p r cet eTeay we don't talk about 4 and 5 per cent costs and returns. In fact, I persenally use investmient (mutuel) funds for investing my borrowed menies. And those funds have preven pftt-perfornmance records over the past many, niany years of averaging 13 te, 15 per cent or higher. Those facts are net debatable, those are pubhished fects, and cen bo found regularly in financiel newspapers. And, everyone in an investment fund achieves exactly the sanie rate of return over the saine ture span. Se, today I borrow money froni the banks and trust cornpanies at 7 per cent per year. Maybe it's your money that is on doposit (if se, I thank you for putting it there). Because it's tax doductiblo, and if I'm in the 50 per cent bracket, my true cost is 3.5 per cent (after tex). Invested in investinent funds that average just 13 per cent r year, it means I niake 9.5 per cent per year on o ther peopI os noney (niaybe yours). And, because it's dividends and capital gains, 1 niay lese 4 te 5 per cent in taxation, leaving nme with an after-tax profit of 4 te 5 per cent per yeer. On $100 000 borrowed, that's $4,000 or $5,000 per year. I like using Ã"PM. (P.S. The new provincial budget bas made it easier for people te 'qualify' for the 50 per cent plus tax bracket.) . -w- .-, ý --- - i m i ISO09000 session for executives A breakfastmeting, 'ISO 9000 Executive Overviw,', will be held on Monday, May 31 in Oshawa. The session, «te informi the busy chief executive of sorne key elemnents of ISO 9000," will in- clude discussion about why a cony heuld become regis- tedto ISO 9000 standards, what registration entails, costs, and funding opportunities for ISO 9000 training Speakers wifl be Michael Churchward, education spocialist and lead auditor for the Quality Management Institute, and Alan Duffy, director of the Durham College Productivity Improve- ment Centre. The meeting, sponsored by the Durham Ilegion Action Commit- tee for Training, will be held at the Holiday Inn, starting with regitration at 8 a.m. Cost is $10 for members, $15 for non-members. For more infor- mation cail 434.1412. 1 r-