New Canadian Tax Policies an Attack on Small Business

In an effort to catch corporation owners who take unfair advantage of the tax system, the Canadian federal government is about to institute a tax plan which assumes that all small business owners and no public corporations are cheating the tax system. The plan will call for extra taxation on corporate investment income, because apparently small business owners are abusing their lower tax rates when re-investing their companies money.

This is an incredibly naive assumption. Small business owners endure enormous risks and receive no benefits, vacation pay, paid leave, etc. Smaller tax rates are a set-off for the income they forfeit by owning businesses. Further, our government is effectively telling business owners that they should not save for a rainy day, should not plan for growth, and should not invest in the future.

Public corporations, on the other hand, routinely funnel millions of dollars out of the country to avoid taxes.

For the government to target small business owners, and ignore the true culprits, is frankly shocking.

For more information on how the tax changes affect small business owners: http://business.financialpost.com/opinion/the-latest-version-of-the-liberals-small-business-tax-measures-are-outright-confiscatory