50% off isn't always a good thing! If you've been following so far, fellow Blogging Stocks contributor Sheldon Liber and I have been scratching our heads about high payout yields from energy trusts battered by the decision from the Canadian government to tax trusts. On the surface, examining the energy trusts' financials make it seem possible for them to sustain payouts at current rates, but for how long?

Well, income investors didn't have to wait long. Energy trusts shareholders will be in for a rude awakening to start the week. Last week, many notable energy trusts delivered bombshells by cutting their payouts - in a big way too!

Last Thursday, Shiningbank Energy Income Fund trimmed its distribution for the third time in the last 12 months. This only served as a prelude as a slew of cuts flew in last Friday. Enterra Energy Trust (NYSE:ENT) slashed its monthly payout by 50%. Precision Drilling Trust (NYSE:PDS) followed suit, reducing its distribution by almost 40%. Advantage Energy Income Fund (NYSE:AAV) would complete the hat trick, cutting its monthly payout by 17%.

Are you among the investors reeling from these announcements? If you feel inclined to blame the Canadian government, please take a closer look first! What are the wind-shifts in the industry outlook have caused these reductions, rather than the proposed tax levy?