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Trudeau To Hurt The Very People He Campaigned To Help

Trudeau To Hurt The Very People

He Campaigned To Help

Alberta Divorce Finances

Trudeau To Hurt The Very People He Campaigned To Help

Effective January 1, 2018, the Trudeau government has proposed to eliminate “income sprinkling” by Canadian small and medium business owners. They have also proposed to eliminate holding passive income investments inside these companies. Trudeau has insisted they are only after “wealthy” Canadians who achieve large tax savings by spreading their corporate income among family members. In fact, many of the taxpayers he will hurt are average middle-class Canadians, the very group he campaigned to improve life for; restaurateurs, farmers, professionals, and the local mom and pop store.

Business owners and employees who earn the same amount, will pay the same amount of income tax. The tax incentive to make all the necessary sacrifices to open a business will effectively be gone. The advantage of these tax savings, and deferring the taxation of income by investing funds remaining in the company will disappear. Small business owners insist that the tax advantages offset the risk of running their own business and the fact that they do not have a pension or benefits. Many business owners argue that eliminating the tax savings will render them unable to hire the local university student as they will no longer be able to afford it.

To make matters worse, the Liberal government is completely closed off to listening to any analysis and intends to forge ahead with their plans. Kim Moody of Moody’s Gartner Tax Law was quoted in the Globe and Mail as saying “If these proposals go through, they will literally have a devastating effect on the small-business community. That’s not trying to be hyperbolic. That’s just the truth. I already have meetings lined up from now until Christmas time with people who want to deploy their capital outside of Canada.” Perhaps Dr. Anita Sana said it “You move the goal posts in the middle of the game, and expect me somehow to be able to plan for my retirement.” –

COMMENTARY: Trudeau’s tax plan will hurt the middle class he claims to be protecting

(Mr. Moody has been very outspoken about the government’s proposals for more of Mr. Moody’s information and analysis.)

Small business owners suggest that the tax advantages offset the risk of running their own business and the fact that they do not have a pension or benefits. Many business owners argue that eliminating the tax savings will render them unable to hire the local university student as they will no longer be able to afford it.