Bill Morneau pushes back on ‘misinformation’ coming out about proposed tax changes
“The owner stepped out in front, she says, ‘You know, I can’t afford 73 per cent increases and this is what these proposed changes would mean to me.’ Well, in actual fact, the business owner that I talked to would never be impacted to that degree by the changes we’re talking about here.”
So, how much is the owner impacted then, eh? Can’t answer that, can you? Firstly because it would cause riots, secondly because you’re quickly revising everything to do with this.
Three years to figure out why Indigenous women get murdered and go missing, one month to make the largest tax change since the 60’s.
You best rack up those air miles, trust-fund Bill, cause we’ve a lot to say to you.
In the bad, capitalist U.S. income “sprinkling” is called “joint tax returns”. Harper wasted an opportunity to create income splitting to support Canadian families. Now, the sock boy and married-to-fries minister of finance are on attack on the most productive sector of society.
Fair would be to flip tax brackets, those who contribute least effort to the economy should pay highest taxes.
Governments in search of more taxpayer cash can always find economists and activists to justify new taxes. You’ll notice that the majority of these experts are always biased towards allies on the left. They’ll stay silent on subsidies for politically important corporations, arts, universities, media, green power, etc. but insist every tax cut, income sharing or tax shelter that helps the middle and upper middle class or blue collar industries is literally taking food and shelter away from the poor.
If there’s a silver lining, it’s that as more and more voters get stung with higher taxes (previous ones,this one, carbon, Netflix…) the more the Liberals erode their voter base. Step 2 for the Liberals is political corruption and increasingly blatant regional favoritism. I’m sure that the investment and development bank will be rotten with corruption and make adscam look like child’s play.
Harper DID introduce income splitting and the Liberals rescinded it almost on day 1 of their regime. Because it totally makes sense to have means tested credits like the GST rebate be based on family income but the tax rate based on individual income. Yep sure does.
When you run a business or a professional operation it often involves huge, although indirect contribution by family, tax rates based on individual income doesn’t always make sense. The proposed “reasonableness” test is one big arbitrary creation of a mess. Wrapping a business in corporation has been some sort of a solution that also solves the issues with business continuation when next generation takes over.
If the store owner makes $100,000 in taxable income, her tax bill might be $45,000.
If she has two children and “sprinkles” $30,000 to each child as a corporate dividend, the family makes $60,000, $30,000 and $30,000.
30% tax on $60,000 is $18,000.
15% tax on $30,000 IS $4,500.
$18,000 + $4,500 + $4,500 = $27,000.
$45,000 – $27,000 = $18,000.
If she was paying $27,000 in tax and will now pay $45,000 her tax bill has gone up 66%, pretty close to the 73% she claimed.
So Morneau is probably a liar because he should know this.
To anyone who thinks sprinkling is bad, I would only suggest you try working as a self-employed person for 20 years and then re-ask the question.
This is horrible policy, but so typically Liberal. Isn’t thus politics of division? Something that Spud parroted during his campaign?
I hope he and Morneau remain this TONE DEAF and implement it. It’s a direct attack on the middle class, and will be exploited in any future election campaign. Plus has been said elsewhere, many of these business owners under attack ARE Liberals, it’s nice to see undermining of Liberal support.
I DO hope Scheer and the CPC brain trust realize they have just been handed their issue for the next election.
It sickens me,as a former small business operator, to see trust fund vampires like Trudeau and enviro-zealots like Butts chase after the people who work so hard to make a living. For the typical SBO ,60 hour+ weeks are sop, but the unholy duo act as if the SBO’s are immoral and cheating the government out of their due.
This is better than “Mike Duffy” and “Rob Ford” combined,for the CPC campaign team.I hope to hell they have the expertise to exploit this right into an election victory.
Conservatives biggest problem is NOT exploiting opportunities that are handed to them. When the next campaign rolls around, they should bring Tabitha Speer (widow of Omar Khadrs victim) to Canada for the campaign. Focus on victim and window’s rights. But I bet they won’t.
Conservatives biggest problem is NOT exploiting opportunities that are handed to them. When the next campaign rolls around, they should bring Tabitha Speer (widow of Omar Khadrs victim) to Canada for the campaign. Focus on victim and window’s rights. But I bet they won’t.
“I DO hope Scheer and the CPC brain trust realize they have just been handed their issue for the next election”
Given the rather lacklustre performance to date from Scheer and his people, I wouldn’t bet on it. The whole Michael Chong into the shadow cabinet was the clearest indication that Scheer has no inclination to go after the Liberals other than in the usual loser Tory way.
Yeah, they’d actually have to govern & that’s harder than collecting a paycheck for 6 years & doing nothing of substance. Then….pension.
How many PC’s have run a business themselves & met a payroll, even just their own?
I question why Morneau is even working for the LPOC in this capacity, given the size of his silver spoon. What were his marching orders & who from? Destroy the family farm for Big Corp interests? Destroy the small business environment? For what purpose?
Scheer is an idiot. He needs to read SDA as he has not learned that “pleasing your enemies does not make them your friends.” He tried to suck up to Leadnow by denouncing and declining to give interviews to Rebel Media. Anyone ignorant of how destructive Leadnow is to Canadian politics is not fit to lead the CPC.
In fairness to Sheer he hasn’t had 1 day in the HoC as leader of the CPC. The libranos know they are in shit up to their lips. When the house reconvenes we’ll see how it goes. No easy ride for them.
Tip to the libranos – quit spending. There’s lots of money coming in.
Arlene Dickinson, from the Shark Tank or whatever posted this to linkedin. Every single comment posted is basically people that are pissed.
“I honestly never thought I would live in a country where the gov’t is basically telling all entrepreneurs “Don’t bother dreaming big here”. — Arlene Dickinson .
I guarantee you anything she donated and voted to the Liberals. Everyone wanting the liberals to do this are crazy. Then we’d have to live through this crap. We need to stop it and own being the party that did stop it.
The outcome of this is the liberals will lose the support of the blu-libs, The suburban voters that work for them and the soccer mom’s that are married to them.
Not to mention those soccer mom’s that are also operating or working in a small business
Like that grandma in Peterbourgh that Juthtin told shouldn’t be worrying about paying her hydro bill.
Yeah he’s a special kind of stupid.
“Harper wasted an opportunity to create income splitting to support Canadian families. ”
Good. Income splitting is social engineering by another name. It unfairly favors married folk. Get government out of marriage.
“When the next campaign rolls around, they should bring Tabitha Speer (widow of Omar Khadrs victim) to Canada for the campaign.”
FFS NO ONE CARES. That issue is a dead issue. Move on.
“To anyone who thinks sprinkling is bad, I would only suggest you try working as a self-employed person for 20 years and then re-ask the question.”
That’s not an argument, and it isn’t the government’s job to make life easier for small business.
These exceptions and carve-outs and ‘income sprinkling’ should all be bulldozed, but I am still glad that this is getting the push back it is because 1) it draws hard limits for what is ‘politically okay’, and they are being drawn by the right and 2) Morneau’s reforms go beyond just getting rid of carve outs if I understand this correctly.
“It’s just that it used to be the domain of the church. ”
There was marriage before the church.
“a homogeneous population that would actually defend it’s self identity and fight back against government tyranny.”
Homogenous populations like Scandinavia are the first to get the biggest welfare states.
Why would any small business owner wish to operate in a country that punishes them for being successful. That is why many of them are searching for a means to leave this country, sell of their business, retire early, or shut-down the operation. There is no incentive any more. Mr Trudeau loves Castro’s Cuba. Pretty soon Canada will be the same impoverished and third world country. If you are young, creative, hardworking and willing to work and expect your business to successful I would suggest that you do it somewhere else, not here. Many of the small business owners I have spoken to have given up on future plans to expand or grow their business, there is just no incentive to do so.