Ever since Trudope called small business owners tax cheats during the election, I knew this type of shit was coming.
http://www.cbc.ca/news/politics/tax-...deau-1.4274692
Ever since Trudope called small business owners tax cheats during the election, I knew this type of shit was coming.
http://www.cbc.ca/news/politics/tax-...deau-1.4274692
I am not too opposed. Too many people skirting the system paying far less tax than they should be.
One of the biggest groups they are targeting are Radiologists.
I'm ok with 2/3 proposed.
For:
- Ending income sprinkling.
- Converting income to cap gain via shell companies
Against:
- Ending passive income
I'm not okay with any of them. But you got the order of badness right.This quote is hidden because you are ignoring this member. Show Quote
Agreed. Passive income is a broad stroke that might have a lot of unintended consequences.This quote is hidden because you are ignoring this member. Show Quote
For small business owners, they don't have RRSP. Their business is their retirement income. And the fact that they take a lot of risk, look at all the companies that went under in Alberta last 2 years, sometimes passive income is a lifeline.This quote is hidden because you are ignoring this member. Show Quote
The problem I got with this is the more complicated another whack a mole process. If they don't want "loopholes" then don't have a separate small business class of tax rules.
And consider the economy has switched to more self employment, this is screwing with a lot of people.
Last edited by Xtrema; 09-06-2017 at 10:19 AM.
I own a small business, although currently a money-loosing one. Still, I know several people who have incorporated solely to pay less tax, and to me, that's just screwing the system. I haven't been a business owner long enough to know the fine details and ramifications of each of these points, I'll leave that to those of you with more experience. However, I do think that we can all agree on two things. 1) small business is a vital engine of our economy and 2) some people create ghost businesses, ghost employees or other things that aren't part of the true business activity just to get around paying tax on actual earned amounts.
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My wife is now my Social Media Consultant.
It's not about whether it's a loop hole or what people think is "fair". At the end of the day business owners paying less tax is better for the economy.
Actually if everyone could pay less tax it would be better for the economy.
100% agree with this. but the details of how to get there are contentious to say the least.This quote is hidden because you are ignoring this member. Show Quote
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Last edited by Sugarphreak; 08-18-2019 at 12:10 AM.
Simple idea, but reduce income tax and increase (flat tax) consumption tax.This quote is hidden because you are ignoring this member. Show Quote
The reality of the fliberals move is to just create more of a black market. They really are that clueless.
These are the same group of assholes that had Mr. Allan ROCK claiming that 1 billion dollars was worth to save 1 life in a gun registry.... whereas a billion dollars applied to medical care would have saved literally thousands.
Last edited by revelations; 09-06-2017 at 11:19 AM.
That's the problem trying to kill income splitting. Trying to come up with rule with what's kosher and what's not is going to be tough. But there is already existing rule of what's reasonable so this upcoming change is probably just firming up these rules.This quote is hidden because you are ignoring this member. Show Quote
The passive income thing sounds like a mistake to me. Keeping money in my corp and paying myself a stable salary even when I had no contract for 8 months kept me from having to suck the government teat to stay alive. I still paid my fair share of taxes when I pulled the money as payroll.
It's also really double taxation... Kindof
They're not killing off retained earnings, you're just going to be taxed more if you decide to invest the money and you make dividends and/or cap gains off of it.This quote is hidden because you are ignoring this member. Show Quote
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It is double taxed but the effective rate ends up being very close to your own average tax rate.This quote is hidden because you are ignoring this member. Show Quote
Really? Can you please elaborate how this is specifically targeting this subset of professional corporations?This quote is hidden because you are ignoring this member. Show Quote
Most radiologists belong to a group, so their small business tax deduction is diluted by the size of their partnership. As a result, it makes less sense for some radiologists to incorporate.
I can understand your comment more if you said they are targeting doctors, dentists and lawyers, but a specific specialty among doctors isn't going to be more affected by the proposed changes than others in the group I mention.
Luckily for the two trust fund kids running the gov't, none of these changes are going to be retroactive.
I can't remember the specifics but there are funky things going on with the partnerships and how Radiologists set up their businesses.This quote is hidden because you are ignoring this member. Show Quote
I think same with doctors and other medical professionals.This quote is hidden because you are ignoring this member. Show Quote