Business and Farm Groups Call To Drop Federal Tax Changes For Small Business.

[LEP]

Perfecho. You better do some reading. They arent changing corporate tax rates. So nothing will change there. But they are changing how the transfer of assets are handled and how income is removed from a corp.

Currently, all income is taxed at similar levels when in the final hands. If you take wages versus dividends when you take into account first corporate tax is paid and then the preferred tax rate in the hands of the dividend recipient. However, if you take wages as a self employed individual you pay both sides of cpp which is an additional $2500ish cost.

But the real hit is when you pass the farm onto the next generation, tax on the capital gain will be due which will likely ensure most family farms end with tge next generational transfer.

So unless a person has been income sprinkling or has sold out they haven't had a teat to suck on.

I am pissed because I have another generation coming along and these tax rules will affect him.

[perfecho]

It is to get rid of loop holes...the average tax payer wants it....

[Oliver88]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

Why do you say the status quo isn't working?

Nobody wants these changes but sock boy and Morneau.

[jensend]

The effect is that the corp is an entity unto itself just like a public corporation and employees of the corp are treated like other employees. Income from the corp is treated like other employees and shareholders. Income for services rendered is treated as employment income. Income beyond that can be dividends and would be treated like dividend income from a public corp. That's your investment income. It's one way of levelling the playing field between employees and self employed (which is essentially what a lot of corporate farms are).

[farmaholic]

I would think they aren't paying zero tax just reducing the burden and still paying more than "Average Joe". And with income sprinkling and splitting probably still more while providing income to their families that gets spent on education or injected into the economy otherwise.

[wmoebis]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

[perfecho]

PS:....forgot to put my usual line in....."It's like weaned calves, they are used to sucking the tit, don't really need it, but bawl to get it back.!"

[perfecho]

Farma...think your example is off mark...tax is paid on profit, so those people will still be employed...it's the corporate profits that are being attacked....and IMHO, they should be. Our (my) companies took total advantage of them....so many sub companies, holding companies, etc...that we needed expert advice to map out the structure....all in the name of trying to keep more for ourselves. But...we... they....should be pay according to how much they make and not by their ability to hide it. Even Warren Buffet had remarks about how little tax he paid....he just took advantage of it because he could. Even on my farm, kids got paid even when they shouldn't....because we could.
The average Joe, has no write off's, cannot afford to put into holding companies and shuffle around to "protect"...business can write off gas to get to jobs....Joe can't....the "rich" seem to find many ways to keep more than their share...and Joe just keeps on getting his deducted from source, so the majority of people will be behind this......unlike corps.
In the 70's, Reagan started the change to corporate taxes, Canada had to follow suit...Corps use to pay a very high rate....so it was advantageous to put into employees, buildings, etc. When corps got taxed lower, they build up cash, bought out competition, pay extreme dollars to those in charge...even when they didn't deserve it....
IMO, the Corp tax raising is to force people to take money out personally...which is what should be done anyways, we should all be paying our fair share....even me.....because its right....;-)

[farmaholic]

The Dentist office I use is a license to print money. This guy built a practice that must generate a pile of cash. The place is like an ant hill. But a well managed...tuned like a well timed and oiled machine. I tried to get an idea of how many people are in that office... front desk staff(numerous), dental hygienists, dental assistants, dental technicians, two dentists(one being the principle founder and brought in a younger guy--probably sell to him), support staff(instrument cleaners and such).... unbelievable amount of people and money. Now tax the shit out of the founding dentist for providing jobs for a multitude of people....SMART.

[fjlip]

Please sign, and email Neaumore, err Morneau....

https://www.taxpayer.com/resource-centre/petitions/petition?tpContentId=165&utm_source=Action+Updates &utm_campaign=812046f099-EMAIL_CAMPAIGN_2017_09_02_SmallBusinessTax&utm_med ium=email&utm_term=0_59605796e2-812046f099-34692277

fin.consultation.fin@canada.ca

Got an auto reply real quick....

"Thank you for participating by email in the Government of Canada’s consultations on tax planning using corporations. Your submission will be reviewed and will help inform decision making on this matter."