![]() As discussed in one of my earlier blogs, in my personal experience, this is typically something only the ultra-rich undertake. In the Rob Carrick article, I noted that I would expect some people may start considering leaving Canada to move to a lower tax jurisdiction or consider moving their funds offshore. This would be an extremely complex piece of legislation. ![]() To the best of my knowledge, there has been no discussion on how the Liberals would carve out part of the small business population from using the small business deduction. We are committed to evidence-based policies and I will make no apologies for that.” Trudeau went on to say that “We want to focus on helping small business owners who are working hard, who are creating jobs for members of their community and serving their community. The Post noted that “in that group are doctors and lawyers, groups that may find themselves squeezed by the policy Trudeau loosely outlined this week”. Trudeau said “that several studies have shown that more than half of small business owners are high-net-worth individuals who incorporate…to avoid paying as high taxes as they otherwise would”. So there’s a little tweaking to do around that.” We want to reward the people who are actually creating jobs, and contributing in concrete ways. Trudeau said the following in a CBC interview, “A large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes. However, they want to ensure that private corporations, known as Canadian Controlled Private Corporations ("CCPCs") are not used to reduce personal income tax obligations for high-income earners.Īs noted in this National Post article, Mr. The Liberals stated they plan to follow through with a proposed small business corporate tax rate decrease from 11% to 9%. Potential Streaming of the Small Business Corporate Tax Rate Remove the Conservative plans to gradually raise the age of Old Age Security to 69. ![]() Wait till this year when they will be paying 53.53% at the highest marginal rate. I know this is a bit of an airy-fairy comment, but you would be surprised at how many people were already upset last year by their increase in personal taxes when Ontario changed the tax rates, and high-wage earners were paying 49.53% tax on income over $220k. As noted in Rob’s article, my concern is once you increase the highest marginal rate past 50%, you break a significant psychological barrier. My comments on this proposal were provided to Rob Carrick of The Globe and Mail in this article. ![]() Increase taxes on people making more than $200,000 by creating a new tax bracket of 33%.This seems counter-intuitive based on the middle income tax cut, so there may be more to this proposal. Cancel the Family Tax Cut which provides for up to $2,000 in family income tax savings.Reduce the middle income tax bracket ($44,700 - $89,401) from 22% to 20.5%, resulting in a potential tax savings of up to $670 for those earning between $44,700 and $89,401.The Liberal platform included some of the following potential changes: Those who contributed the extra $4,500 in 2015 will only have another $1,000 to contribute in 2016 and they will be warned in advance that if they over-contribute they will be subject to a penalty. Of $42,000, they will be subject to over-contribution penalties.Īssuming I guess correctly, this would clean-up the TFSA issue. Retroactive to January 1, 2016, so if anyone contributes in excess State that when the legislation is passed, it will be. #Beancounter cpa exam advice plus
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