The reason that Mr Morneau was silent on the capital funds argument is because the so called discussion paper (there is no draft legislation on the passive income proposals yet because the Finance Department has no idea how to codify a really convoluted set of proposals) leaves the use of business reserves up in the air.  He couldn't answer the question on Power and Politics today either.

This is illustrative of the real problem --- these proposals are unduly complex and subjective and are laced with unintended cinsequences.  Mr Morneau needs to climb down and start over.