Economy

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

loading...
loading...

Latest


27 September 2017
Micromax teams up with BSNL to launch JioPhone competitor
The customer who returns the JioPhone in the period of 12-24 months, would be charged Rs 1,000 along with GST and other taxes. The company, however, has now updated its website to disclose the applicable terms and conditions of their JioPhone .

27 September 2017
Q2 Sentiment Teledyne Technologies Inc (NYSE:TDY)
About 36,542 shares traded. $596,700 worth of Teledyne Technologies Incorporated (NYSE:TDY) shares were sold by MILLER PAUL DAVID. The expected TDY's profit could reach $57.27M giving the stock 24.88 P/E in the case that $1.62 earnings per share is reported.

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
Drug-induced deaths at highest point since 1990s, heart disease in decline
Death rates from ischaemic heart disease have been declining for more than 40 years yet remains the leading cause of death. Diabetes is Australia's seventh leading cause of death, accounting for 3.0 per cent of all deaths in 2016.

27 September 2017
Tennessee congressman says Peyton Manning might be considering a run for Senate
Former NFL quarterback Peyton Manning could be the next athlete who makes a post-retirement transition into politics. Manning addressed Republicans at the party's annual retreat in Philadelphia in January.

27 September 2017
Apple releases iOS 11.0.1 update for iPhone and iPad
It also comes with numerous features users would find in the iPhone 8 , including wireless charging and the A11 Bionic chip. Slow-motion video capture at 1080p is also smoother, at 240 frames per second - double from previous year .

27 September 2017
WWE Smackdown! Live Results 9/26 Shane McMahon Responds to Kevin Owens & More!
He eventually flattened Dillinger outside the ring, grabbed a mic and challenged Styles for his USA title at Hell in a Cell . Natalya came out after the match and said she's happy Ric Flair will be able to watch Hell in a Cell and see Charlotte fail.

27 September 2017
Accountability Court indicts Ishaq Dar in reference filed by NAB
The assets are disproportionate to his known sources of income for which he could not reasonably account for. He warned that if they failed to appear on next hearing, he would issue their non-bailable arrest warrants.

27 September 2017
Bill O'Reilly returns to Fox as Hannity's guest
Maddow has earned the highest ratings in cable news over the past few months, but Hannity earned a clear victory on Monday night. O'Reilly has been on a tour promoting his novels about alternate history Killing England and discussing his exit from Fox.