NDP's small business tax cut a tax dodge for the rich

[logicalview]

I am actually for this policy, one of the few/only policies the NDP has come up with that makes much sense. However, I notice that this policy seems to only benefit those pesky rich and well-heeled people.

So if these well-heeled people in Canada get to keep $600 million a year more in their jeans, what user fees are going to have to go up? What government services are people willing to give up so that these already wealthy people get to keep more money? One thing is for sure, when tax gets cut we all have to pay more. Personally, wouldn't a general income tax cut for everyone be better and more fair than just these rich well heeled greedy small business people receiving it? Well wouldn't it? The NDP seems to be the party for the well heeled. I prefer a party that doesn't reward greed like the NDP.

NDP's Small Business Tax Cut Would Help The Rich: Economists

OTTAWA — An NDP plan to give tax relief to small businesses will actually end up giving wealthy Canadians a tax cut, some economists said Tuesday.

“[It’s] something to make the rich richer,” Jack Mintz, the director of the University of Calgary’s School of Public Policy, told The Huffington Post Canada.

NDP Leader Thomas Mulcair announced Tuesday that his party would lower the small business tax rate to nine per cent from the current 11 per cent in two steps. The NDP said its first reduction — to 10 per cent — would cost $600 million a year in lost revenue. The goal, Mulcair told a business crowd at an Economic Club of Canada luncheon, was to help small businesses grow and create new jobs.

“[We’ll provide immediate and permanent help for Canada’s hard working small business people, who are the backbone of the local communities and the creators of 80 per cent of all new jobs in this country,” Mulcair said, in announcing the nearly 20 per cent tax reduction.

“With this one practical measure, small businesses can better weather the current economic climate, hire more employees and help their local communities prosper for years to come.”

But Mintz and some fellow economists argue that the tax break will go overwhelmingly to Canadians who need it least and may not result in job growth at all.

“We find that 60 per cent of the small business deduction goes to households with more than $150,000 in income,” Mintz said, of research he has previously done on the subject. “That’s because you tend to have a relatively high number of high-income households who own small businesses,” he said.

“The worst part [of the NDP plan],” Mintz added, “is that it doesn’t have good economic impacts because small business deductions contribute to a wall of taxation, so if they grow, they lose some of their benefits and get hit with higher taxes…. It tends to keep small businesses smaller.”

http://www.huffingtonpost.ca/2015/01/28 ... 61678.html

[django]

Probably not a popular position but I think income tax should be a flat rate/% across the board. What's fair about someone having the drive to educate themselves then go out and bust their *bleep* to make money only to be punished for it by paying more in income tax than most people gross in a year?

[The Green Barbarian]

Probably not a popular position but I think income tax should be a flat rate/% across the board. What's fair about someone having the drive to educate themselves then go out and bust their *bleep* to make money only to be punished for it by paying more in income tax than most people gross in a year?

I agree. The tax system as it now stands is sure slanted against the well-heeled of our society.

[madmudder]

The poor and middle class should pay way more and not tax the wealthy at all. Keep voting in right wing governments then.
Someone's brain went wondering and never returned.

[The Green Barbarian]

The poor and middle class should pay way more and not tax the wealthy at all. Keep voting in right wing governments then.

I don't see how these two statements are related, as under all governments the system is a graduated rate system, where the wealthy pay a much greater share of the tax load then anyone else.

Under the NDP and Greens, I see they want to dramatically increase the cost of energy for the poor, all to combat the fiction that is the man-made global warming scam. Under their guidance, the poor would definitely suffer.

Someone's brain went wondering and never returned.

Your comments indicate this to be so. I suggest doing a lot more reading before posting.