calculating-budget-tax

Federal Finance Minister Bill Morneau says small business owners in Canada have an unfair advantage that could create two classes of Canadians.

Morneau met with small business owners in Vancouver today as part of his cross-Canada consultations on proposed changes to income-tax rules affecting entrepreneurs. He says small business owners in Canada pay the lowest income tax of all G7 countries and that encourages businesses to create jobs, but the current tax system isn’t sustainable.

Morneau says incentives such as “income sprinkling” unfairly allow business owners to reduce taxes by shifting some of their earnings to family members who don’t have to work in the company.

If changes aren’t made, Morneau says Canada risks being split into those who get financial advantages and those who don’t.

Entrepreneurs disagree, saying current incentives allow them to take on the risks of opening their own companies. Also, unlike salaried and public-sector employees, they say they don’t have a guaranteed pension or employment insurance protection.

Read:

Small biz tax backlash tops agenda for Liberal caucus retreat

Drop tax proposals aimed at business, urges coalition

Urgent: Talk to business clients ahead of income sprinkling measures

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!

See all comments Recent Comments

Don Beach

Interest rates on productive Canadians are excessive. That’s why I retired early in the middle of my most productive years. There is little incentive for highly skilled Canadians to continue to work and spend more when the government takes 67% of what you earn and spend: 54% income tax on what you earn and 13% HST when you spend. This oppressive taxation is a serious drag on the Canadian economy. Trudeau has done nothing but raise taxes on highly skilled and productive Canadians since he was elected. I guess he inherited enough money that he doesn’t have to worry.

Wednesday, Sep 6, 2017 at 11:46 am Reply

TonyB

Well said Don our Governments, including provincial are promoting social welfare and laziness and not excellence and progress

Wednesday, Sep 6, 2017 at 3:21 pm