Business and Farm Groups Call To Drop Federal Tax Changes For Small Business.

[perfecho]

PS:....forgot to put my usual line in....."It's like weaned calves, they are used to sucking the tit, don't really need it, but bawl to get it back.!"

[wmoebis]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

[farmaholic]

I would think they aren't paying zero tax just reducing the burden and still paying more than "Average Joe". And with income sprinkling and splitting probably still more while providing income to their families that gets spent on education or injected into the economy otherwise.

[jensend]

The effect is that the corp is an entity unto itself just like a public corporation and employees of the corp are treated like other employees. Income from the corp is treated like other employees and shareholders. Income for services rendered is treated as employment income. Income beyond that can be dividends and would be treated like dividend income from a public corp. That's your investment income. It's one way of levelling the playing field between employees and self employed (which is essentially what a lot of corporate farms are).

[Oliver88]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

Why do you say the status quo isn't working?

Nobody wants these changes but sock boy and Morneau.

[perfecho]

It is to get rid of loop holes...the average tax payer wants it....

[LEP]

Perfecho. You better do some reading. They arent changing corporate tax rates. So nothing will change there. But they are changing how the transfer of assets are handled and how income is removed from a corp.

Currently, all income is taxed at similar levels when in the final hands. If you take wages versus dividends when you take into account first corporate tax is paid and then the preferred tax rate in the hands of the dividend recipient. However, if you take wages as a self employed individual you pay both sides of cpp which is an additional $2500ish cost.

But the real hit is when you pass the farm onto the next generation, tax on the capital gain will be due which will likely ensure most family farms end with tge next generational transfer.

So unless a person has been income sprinkling or has sold out they haven't had a teat to suck on.

I am pissed because I have another generation coming along and these tax rules will affect him.

[sumdumguy]

Accountants have loved the corp game.when you consider the double taxation, is it worth it? They gave us a bit of flexibility in the past so the extra tax, accounting fees and bother was worth it but now not so much. Position yourselves to save your ass-ets.

[perfecho]

But isn't income sprinkling and splitting the under lying issue...that is the tit.....and I have used it because its there.....and am ok with it not being there. Will have to talk to accountant about the "passing down".....

[parsley]

I signed this petition.
Anyone who owns land would be wise to sign it.

https://petitions.ourcommons.ca/en/Petition/Details?Petition=e-1239

Pars