In July the federal government announced consultations on proposed changes to tax loopholes that allow some wealthy Canadians to reduce their taxes using private corporations. The changes would be limited to: ending dividend sprinkling to family members who don't work for the business, restricting passive corporate investments that compete with job creating investments and reduce tax revenues and limiting the ability to use capital gains to reduce income tax. The proposals have been getting a lot of attention in the media. Some legitimate issues are being raised, but there is a lot of mis-information and also blatant falsehoods that are being circulated by opponents to these tax reforms.
Tax breaks meant to help small business have instead become a major tax advantage for wealthier Canadians.
If the federal government backs down on its plan to close a tax loophole exploited by high-income earners, the rich people have won.
Opinion By Paul Willcocks | TheTyee.ca
Anti-tax lobby has distorted Canadian debate to the benefit of higher income earners.
Tax breaks meant to help small business have instead become a major tax advantage for wealthier Canadians. If the federal government backs down on its plan to close a tax loophole exploited by high-income earners, the rich people have won.
The contents of the federal budget is an annual guessing game.This year the Conservative government has deliberately set out to lower expectations, preferring to save their goodies for next year's pre-election budget.
But a recent KPMG report has suggested there might be further measures to close tax loopholes and curb abuse of tax havens.
Our tax system is riddled with unfair and ineffective loopholes that cost federal and provincial governments a lot of money, complicate the tax system and disproportionately benefit higher income taxpayers.
We should close these tax loopholes because they are:
Tax loopholes cost federal and provincial governments over $20 billion annually. That's money that could be invested in quality public services and prevent cuts to programs that make Canada a safe and healthy place to live.