Income Tax Gouges the Low Income Earners

Here is an example income tax situation in Canada, New Brunswick specifically. I worked out the 2008 income tax figures for an acquaintance who is retired, female and living with her boyfriend who also is also retired. In summary, her figures are

Total income: $16,168 (Sources: CPP, Company pension & a LIF)
Taxable income: same
Income Tax: $1370

I consider it outrageous that somebody with such a low income has to pay such a large amount of income tax relative to her income. This woman is living with someone, otherwise she would have been forced to continue working beyond the 37 years she already put in.

It is clear that the low income people are paying too much income tax. Instead of giving tax breaks to the very well off, the low income should get more of a break.

Mutual Funds - Stay for the Long term???

A posting I made on the Cowboy Junkie website:
................................................................................................................
",,,generation of financial gains have been wiped from the books (we're at 1996 levels), " - Stoned Immaculate

Well I can certainly vouch for that with real life personal experience.
In 1995, when my daughter turned 16, I purchased $5000(CND) in mutual funds in her name. It stayed with mainstream mutual funds. Here is the pitiful history. Yeah, that old advice of staying in for the long term certainly stinks.
$5000 - Aug 1995
$10700 - Dec 1999
$8580 - June 2007
$7870 - May 2008
$4410 - Mar 2009
Similiar calamity befell my own funds.

I am on the same page as Gloom and Doom Gainesvillebob2. Run for the hills, the sky is falling, the sky is falling.
Pluck pluck pluck, pluck pluuuucccckkk!!!.