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CELEBRATING JUNE 19th

In Canada, today – June 19, 2006 marks tax freedom day. Tax freedom day marks the date on the calendar when citizens have paid their share of incomes, to all levels of government in taxes, and begin working for themselves.

Canada’s Fraser Institute has been calculating Canada’s Tax Freedom date since 1977 on the basis of average family income. Variables that are factored into the calculation include: income, property and sales taxes, as well as profit taxes, health, social security and employment levies, import duties, license fees, taxes on the consumption of alcohol and tobacco, natural resource fees, fuel taxes and hospital taxes.

For all you American readers, your “Tax Freedom” day has already come and gone. I hope you all could afford to celebrate it! The date was April 26, 2006 - for a total average effective tax rate of 31.6 percent of the nation's income. According to Wikipedia,

“The latest that [U.S.] Tax Freedom Day has occurred was May 3 in 2000. In 1900, Tax Freedom Day arrived January 22, for an effective average total tax rate of 5.9 percent of the nation's income. According to the Tax Foundation, the most important factor driving changes in Tax Freedom Day from year to year is growth in incomes, as the progressive structure of the U.S. federal tax system causes taxes as a percentage of income to rise in along with economic growth.”

Tax Freedom Day Around The World

It is estimated by the Adam Smith Institute that the U.K.’s Tax Freedom date fell on June 3^rd this year. Other countries and their Tax Freedom dates in 2006:

Three cheers and well wishes to all nationalities on their Tax Freedom days.

Loyalist Day – June 19^th

For those who may be unaware, Loyalist Day is also celebrated on June 19^th. The original United Empire Loyalists were colonists living in British North America who left their home and fled to Canada in the aftermath of the American Revolution in the eighteenth century.

“The Loyalists, as their name already implies, wished to remain faithful subjects of the Crown and under the legal and legislative institutions that derived from the Crown. They came to Canada so they could continue to live under those same institutions and to escape persecution for their loyalty by the American republicans. Others came to escape slavery.”

Three cheers and well wishes to all “Loyalists” on your special day.

June 19^th In the U.S.A.

According to the Washington Post,

On Monday, June 19, about 4,000 government workers representing more than 50 Federal agencies from the State Department to the Commodity Futures Trading Commission will say goodbye to their families and set off for dozens of classified emergency facilities stretching from the Maryland and Virginia suburbs to the foothills of the Alleghenies. They will take to the bunkers in an "evacuation" that my sources describe as the largest "continuity of government" exercise ever conducted, a drill intended to prepare the U.S. government for an event even more catastrophic than the Sept. 11, 2001, attacks.

Everyone be safe!

Today’s Market

Overseas equity markets began the week with a whimper as Japan’s Nikkei Index fell 19 points to close at 14,860. Meanwhile, North American markets couldn’t gain traction with the DOW off 77.44 to 10,942.11, the NASDAQ off 19.60 to 2,110.40 and the S & P losing 11.30 to close at 1,2240.15. NYMEX crude oil futures fell .90 to close at 68.98 per barrel.

In foreign exchange, the U.S. Dollar Index gained .40 to close at 85.92.

Interest rates backed up 2 basis points across the curve with the benchmark 2-year bond ending the day at 5.18%, the 5-year at 5.11% and the 10-year at 5.14%.

Precious metals fared poorly with COMEX gold futures losing 9.20 to 570.20 while COMEX silver futures lost .16 to end the day at 10.07. The XAU gave up 3.69 to close at 124.37 while the HUI was off 9.95 to close at 284.43.

On tap for tomorrow, at 8:30 a.m. May Housing data is due to be released. Building Permits expected 1,960K vs. prior 1,973K and Housing Starts expected 1,900K vs. prior 1,849K.

Wishing you all the happiest June 19^th you may possibly have and may your June 20^th and beyond be full of happiness and prosperity!

Rob Kirby

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