See the Article in the Globe and Mail: https://www.theglobeandmail.com/news/politics/concern-mounts-over-morneaus-proposed-tax-changes-affecting-small-businesses/article36123252/?utm_source=Shared+Article+Sent+to+User&utm_medium=E-mail:+Newsletters+/+E-Blasts+/+etc.&utm_campaign=Shared+Web+Article+Links
Morneau and Trudeau are simply not thinking things through. The theory that a small business should pay essentially the same tax rate as a high income personal earner is ludicrous. This will kill small business in Canada.
Small business needs to be nurtured and allowed to grow assets and provided opportunities to then be able to employ more people, grow their business and revenue eventually becoming bigger business actually increasing their tax base in a positive manner.
If there are no advantages, all income will be drawn out stifling growth. Then let’s not forget the extra work to run a small business, the pressure to make it succeed and the tax base created by employing people who also contribute to the tax base.
Somebody in our government needs to study basic economics. These proposals will be far reaching in damage at a time when small business is a growing segment of our overall economy. Encourage it, reduce corporate taxes and provide more globalization support if you want to increase your tax base, don’t put in barriers to discourage growth and new entrepreneurs from starting out.