Feds’ daft tax plan shows people power
Source: The Western Producer
Author: Dan Kelly
You can’t blame business owners for feeling like they’re being bombarded by government.
Increased employment insurance premiums, new environmental levies, minimum wage hikes: announcements about new taxes and regulations became a common occurrence in 2017.
But perhaps the most significant tax announcement of the year, maybe the most significant in decades came this summer, when Finance Minister Bill Morneau introduced a series of proposals that would dramatically change the way small businesses in Canada are taxed.
The Canadian Federation of Independent Business began consulting tax professionals and what we learned was alarming.
The proposals if implemented would have restricted small business owners from sharing income with family members, hiked taxes on some investments, and would have made it more difficult for entrepreneurial families to transfer their businesses to their sons and daughters.
And, contrary to the government messaging (which seemed to characterize small business owners as fat-cat tax cheats), we learned that these changes would have hurt the vast majority of middle-income business owners including those who earn as little as $50,000 in annual income.