Tax changes to make system fair not stifle business growth: Trudeau

Tax changes to make system fair not stifle business growth: Trudeau”

Following the massive outcry and pushback against the small business tax reforms, the Liberal government is set to offer a measure to Canadians affected by its proposed tax changes that would make the controversial reforms more palatable.

The consultation period on the proposals ends October 2nd but how the government chooses to proceed won't likely be known until after Thanksgiving.

The study overview also states that although the federal government reduced the second-lowest personal income tax rate, it also "scrapped income-splitting for couples with young children and eliminated a series of tax credits, which more than offset the tax savings from the rate reduction and ultimately increased the tax burden for most middle-class families". The government's proposal is to create a test to ensure any income paid to family members is fair compensation for work actually provided.

The changes were circulated in a discussion paper by Finance Minister Bill Morneau in July, with the Liberals always saying they were meant just for discussion.

Conservatives and other critics say business owners take risks others don't and don't always have access to benefits such as employment insurance.

Two new reports released this week on the issue provide fodder for both sides.

The intention really is to target high-income Canadians who incorporate in order to reduce their taxes through one or more of three now legal practices: income sprinkling; passive investments; and converting business profits into capital gains instead of paying them out as dividends or salaries.

"Closing the income-splitting loophole will have nearly no impact on small business families, much less Canadian families in general", Macdonald said.

Like this


27 September 2017
Hrithik Roshan vs Tiger Shroff in Yash Raj Films' next actioner
Grabbing the golden opportunity, YRF has announced the project on the auspicious occasion of Yash Chopra's 85th birth anniversary. But you should know when the game changes. "Releasing on 25th Jan '19 #HrithikVsTiger ", the post read.

27 September 2017
First spy shots of the BMW 2 Series Gran Coupe
Styling details are further hidden by the use of temporary lighting units and false body panels. The new BMW 2 Series Gran Coupe has been spied undergoing testing in Germany.

27 September 2017
Trudeau downplays uncertainty about U.S. trade demands, while promoting Canada's team
Organized-labor officials were briefed on the USA proposal on the condition they didn't disclose specific details in the proposal. The ruling that imposed U.S. duties of almost 220 per cent on Bombardier C Series jets is expected to be a hot topic when Ms.

27 September 2017
Insiders are Gradually Selling SeaWorld Entertainment, Inc. (NYSE:SEAS)
Looking at some alternate time periods, the 12 month price index is 0.94180, the 24 month is 0.76000, and the 36 month is 0.70771. State Street Corp boosted its holdings in SeaWorld Entertainment by 2.0% in the 1st quarter. (NYSE:T) for 39,177 shares.

27 September 2017
Researchers identify possible biomarker for diagnosing CTE during life
Ann McKee of Boston University's CTE Center has identified a certain protein found in brain tissue and cerebrospinal fluid. If this is found to be a way to diagnose CTE, it could lead to finding ways to treat CTE in living patients.

27 September 2017
Usain Bolt 'Showed Respect for Our National Anthem'
According to the New York Post, Trump posted a video of the Jamaican Olympic gold medalist being interviewed on TV during the 2016 Rio games.

27 September 2017
Kempen Capital Management NV Acquires 29435 Shares of Teradyne, Inc. (TER)
The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website . Segantii Capital Management Ltd bought a new stake in shares of Teradyne in the 1st quarter worth approximately $121,000.

27 September 2017
Cardi B makes music history - and dethrones Taylor Swift from the charts
It seemed like the whole world was happy for Cardi - even her stiffest competition , Taylor Swift - but as usual there was one sour grape in the bunch: Azealia Banks .

27 September 2017
Cowboys run away from the Cardinals
Prescott led scoring drives of 33, 46 and 50 yards to see the Cowboys to victory at University of Phoenix Stadium on Monday. The win is the Cowboys' first on the road this season, seeing the team bounce back from a 42-17 pummeling in Denver.

27 September 2017
Study finds one in five teens report a concussion in their lifetime
In a survey of more than 13,000 teenagers, almost 20% noted at least one diagnosed concussion during their lifetime. As many as one in five USA teens may have suffered a concussion, and contact sports might often be the cause.