Morneau to lower the small business tax rate

[tweety]

So explain to me Forage how lowering the small business tax rate fits the Liberal narrative of having small business pay its fair share? My point about the gap between the small business rate and the top personal rate is that the federal Liberal's raises raised the top personal rate by 4% but the change brought in less revenue. They then concluded that this was because high income earning professionals had incorporated to avoid paying so much of the high personal rate. So then they went after small business, pissed everybody off, popularity slides in the polls, all of a sudden lets lower the small business rate because they are the backbone of our economy. Say what you will Justin and friends are doing a lousy job!!

It wasn't that small business weren't paying their fair share, it was that rich retired farmers were using small business private corps to avoid paying tax, laundering money thru kids etc.

This is good news for those of us not in retirement mode.

[Hamloc]

It wasn't that small business weren't paying their fair share, it was that rich retired farmers were using small business private corps to avoid paying tax, laundering money thru kids etc.

This is good news for those of us not in retirement mode.

So Tweety explain how to me how anything the Liberals are doing is good for Canadians. They raised the top personal income tax rate and brought in less revenue. Then they set out to make changes to the way the small business taxes are applied to make the system more fair and increase revenue by up to $1 billion dollars. Now there latest change I read in the financial post will when fully implemented reduce revenue by $2.9 billion. These guys couldn't hit the target if they were standing on it. I am sure they will make other changes to replace this lost revenue.

[Bowerpower]

well this is good news. I'll take it. Not very often we get a tax decrease. Now as for wher they will try to get the tax revenue shortfall is speculation at this point. We'll lynch trudope and morneau when the time comes.

[seabass]

What about land transfers to farming kids?

[mcfarms]

What about land transfers to farming kids?

Todays announcement was separate from the proposed tax changes hence my waiting on the final look to those before I have a sense of the whole picture. Could be the ol" here have a carrot wabbit "while Yosemite Bill has a big axe in his other hand behind his back move.

[Bowerpower]

What about land transfers to farming kids?

Gift the land, no tax.

[furrowtickler]

Many ways to skin a cat

[Richard5]

Gift the land, no tax.

Why would you ever do this? Sell it across to use any capital gains exemption left, forgive the loan. At lease the next generation has the high cost value on some/all of the land going forward. The next generation would most likely use all of their capital gains exemption up on a family farm partnership if you have an accountant that knows what they are doing

[Richard5]

well this is good news. I'll take it. Not very often we get a tax decrease. Now as for wher they will try to get the tax revenue shortfall is speculation at this point. We'll lynch trudope and morneau when the time comes.

Remember people, this is only the first level of tax. When you take funds out beyond shareholder loan balances the dividend rate comes into pay (second level of tax of 20-35%)

I struggle with the thinking that lowering is a good thing as its only going to make the second level of tax higher on “old” earnings since the dividend tax credits will be adjusted to reflect this reduction.

If the government is seriously looking for money, leaving as is or increasing to 15% may be a better and easier option.

At the end of the day, down the road, it flows through and the gov’t will get their share

[SASKFARMER3]

This is all liberal smoke and mirror look here and screw you over their. Never trust them.

Why no taxing Trust Funds.