Tax changes - fact or fiction?
-
- Newbie
- Posts: 61
- Joined: Mar 14th, 2014, 5:05 pm
Tax changes - fact or fiction?
I see this as a huge opportunity for the opposition to create fake news and lies about the actual impact to small businesses.
Stories about tax lawyers complaining about the new laws? How much are they charging per hour? And what percent of income are they actually paying in tax.
What better way to protect your ridiculous profits than to instill fear in the small businessman who is trying to get by and grow their business.
It's time for the rich to stop avoiding their taxes and pay their fair share.
I suspect the tax lawyer is making big bucks and has avoided paying taxes and with the new changes, he may have to start contributing like the rest of us.
Show me the numbers. How much money is the small businessman making and what tax changes will affect his income?
I don't feel sorry for the lawyer who hasn't paying any taxes.
Stories about tax lawyers complaining about the new laws? How much are they charging per hour? And what percent of income are they actually paying in tax.
What better way to protect your ridiculous profits than to instill fear in the small businessman who is trying to get by and grow their business.
It's time for the rich to stop avoiding their taxes and pay their fair share.
I suspect the tax lawyer is making big bucks and has avoided paying taxes and with the new changes, he may have to start contributing like the rest of us.
Show me the numbers. How much money is the small businessman making and what tax changes will affect his income?
I don't feel sorry for the lawyer who hasn't paying any taxes.
-
- Guru
- Posts: 7715
- Joined: Apr 19th, 2007, 3:11 pm
Re: Tax changes - fact or fiction?
PuppyLove wrote:I see this as a huge opportunity for the opposition to create fake news and lies about the actual impact to small businesses.
Stories about tax lawyers complaining about the new laws? How much are they charging per hour? And what percent of income are they actually paying in tax.
What better way to protect your ridiculous profits than to instill fear in the small businessman who is trying to get by and grow their business.
It's time for the rich to stop avoiding their taxes and pay their fair share.
I suspect the tax lawyer is making big bucks and has avoided paying taxes and with the new changes, he may have to start contributing like the rest of us.
Show me the numbers. How much money is the small businessman making and what tax changes will affect his income?
I don't feel sorry for the lawyer who hasn't paying any taxes.
http://laws-lois.justice.gc.ca/eng/acts/I-3.3/
Are you up on this monster, or just hoping that the jargon of "fair share" is considered tax knowledge.
Do you really hope for someone to give a post that you won't find TLDR explaining the finer points of the small business section of the tax act?
What exactly is your point other than blind support for something you state you don't know about?
- WalterWhite
- Lord of the Board
- Posts: 3838
- Joined: Jan 31st, 2017, 3:56 pm
-
- Guru
- Posts: 7715
- Joined: Apr 19th, 2007, 3:11 pm
Re: Tax changes - fact or fiction?
I'll take that as 2 "no's" then.
Jargon from the PM's office isn't tax comprehension folks. It's a sales job.
Jargon from the PM's office isn't tax comprehension folks. It's a sales job.
- WalterWhite
- Lord of the Board
- Posts: 3838
- Joined: Jan 31st, 2017, 3:56 pm
Re: Tax changes - fact or fiction?
Veovis wrote:I'll take that as 2 "no's" then.
Jargon from the PM's office isn't tax comprehension folks. It's a sales job.
If I'm one of those two, why not at least consider I could also be so infuriated reading this my only thought was to post the link - and reserve comment until I feel I've gained my senses?
-
- Newbie
- Posts: 61
- Joined: Mar 14th, 2014, 5:05 pm
Re: Tax changes - fact or fiction?
It isn't "Jargon from the PM's office". The new tax laws are designed to reduce loopholes. Some business owners work hard for their money and pay their taxes. Others look for every opportunity to not have to contribute their fair share and do "creative bookkeeping and accounting" to pay ridiculously low taxes in proportion. Taxes are an unfortunate cost of living in a society that provides services that we all use. These tax laws are making it fair for all.
-
- Guru
- Posts: 7715
- Joined: Apr 19th, 2007, 3:11 pm
Re: Tax changes - fact or fiction?
PuppyLove wrote:It isn't "Jargon from the PM's office". The new tax laws are designed to reduce loopholes. Some business owners work hard for their money and pay their taxes. Others look for every opportunity to not have to contribute their fair share and do "creative bookkeeping and accounting" to pay ridiculously low taxes in proportion. Taxes are an unfortunate cost of living in a society that provides services that we all use. These tax laws are making it fair for all.
It is just Jargon, you just spouted it with false points just like they desire. You mention tax fraud but called it "creative accounting"....already illegal, and caught and enforced when possible, you also used that "fair share" nonsense which actually has no definition other than "more" from those who as you have clarified, have no clue of the tax act of Canada.
There are instances where some issues could be addressed sure, but the current government is using a method of ruin all to may catch a couple. Why not just take the "fair share" of his uber rich trust fund buddies then?.....right, because it's more about keeping the vassals in place, not catching the rich.
-
- Newbie
- Posts: 61
- Joined: Mar 14th, 2014, 5:05 pm
Re: Tax changes - fact or fiction?
It isn't tax fraud when the rich use loopholes to avoid paying taxes. After the loopholes are fixed, then it can be called for what it is... tax fraud.
- Hassel99
- Lord of the Board
- Posts: 3815
- Joined: Aug 23rd, 2012, 9:31 am
Re: Tax changes - fact or fiction?
There is no such thing as a tax loophole. It is either in the tax code or it is not.
-
- Guru
- Posts: 7715
- Joined: Apr 19th, 2007, 3:11 pm
Re: Tax changes - fact or fiction?
PuppyLove wrote:It isn't tax fraud when the rich use loopholes to avoid paying taxes. After the loopholes are fixed, then it can be called for what it is... tax fraud.
"creative accounting" is the term used for actually fudging the books, you know that.
Tax planning isn't a loophole or a cheat of any kind. Just because you don't do it or understand it didn't mean others cheated, or used "loopholes". This argument has been debunked for a long time. I'm sure you consider my use of RRSP's and TFSA a "loophole as well, it isn't but the envy of others for doing nothing themselves is endless.
One change would restrict the ability of incorporated business owners to lower their tax rate by sprinkling income to family members in lower tax brackets, even if those family members do no work for the business.
Restricting the dividends sure, I can see this, however the payment of wages to family members has had a test in existence that required a proof of value for work should it be requested. It meant that you can't pay your wife 75K annual for 1 day a month work....this already ecisted so our lovely PM's newest added restrictions will probably actually affect people who did have value of work but you can't pay your kid now due to some new un-thought through tax grab......but don't worry, in Alberta even though you can't pay them as per the Feds, the provincial government will Levy WCB of a perceived value you aren't allowed to pay and charge you for it.
And that's just a mild example of what he is about to do to millions.....but keep with Jargon, it sounds good to some but just like "surprise sex" is actually rape, jargon doesn't make garbage tax reform any less of the same to the middle class.
-
- Admiral HMS Castanet
- Posts: 25681
- Joined: Dec 26th, 2010, 12:47 pm
Re: Tax changes - fact or fiction?
There's a good letter to the editor in today's Penticton Western, written by a fellow who now employs several people. He says under the proposed changes, he wouldn't have been able to take the risk of starting up his business, and he explains why.
For every business that gets off the ground successfully and goes on to generate more jobs, there are plenty more that barely manage to squeak by, or fail. A few are wildly successful, but most are not.
If starting a small business was truly an easy road to riches, everyone would be doing it. IMO, this really is about envy. Whether JT even understands what he's doing is questionable. If he does understand it, he's playing with people's basest emotions to score political points, at our expense.
For every business that gets off the ground successfully and goes on to generate more jobs, there are plenty more that barely manage to squeak by, or fail. A few are wildly successful, but most are not.
If starting a small business was truly an easy road to riches, everyone would be doing it. IMO, this really is about envy. Whether JT even understands what he's doing is questionable. If he does understand it, he's playing with people's basest emotions to score political points, at our expense.
There is nothing more dangerous than sincere ignorance and conscientious stupidity. - Martin Luther King Jr.
-
- Übergod
- Posts: 1689
- Joined: Jun 11th, 2005, 10:00 am
Re: Tax changes - fact or fiction?
Add the minimum wage increase, good or bad, and you are looking at the destruction of small business in Canada.
-
- Guru
- Posts: 7715
- Joined: Apr 19th, 2007, 3:11 pm
Re: Tax changes - fact or fiction?
This is what we get from a trust fund kid that get's to play Boss. I'm certain we will eventually hear a phrase very similar to "let them eat cake"
- erinmore3775
- Grand Pooh-bah
- Posts: 2156
- Joined: Aug 18th, 2010, 9:16 pm
Re: Tax changes - fact or fiction?
Here are two "articles" that may help contributors put the proposed tax changes into perspective.
http://business.financialpost.com/personal-finance/managing-wealth/four-new-strategies-you-can-use-this-year-to-get-ahead-of-ottawas-proposed-tax-changes
http://www.fin.gc.ca/n17/data/tppc-pfsp-eng.pdf
The rule changes do not seem to be aimed at the personal corporations that have "family" shareholders that have made significant "investment" contributions to the business, or that have family members who make significant "work" contributions businesses, but at personal businesses that "sprinkle" dividends to family members who make or have made only limited contributions to the business. It will also affect business owners that use their personal businesses to shelter income (business income that is not paid out as salaries or dividends nor is invested in core business improvements).
Yes, this is going to mean that some business owners and their shareholders who receive sprinkled income will pay more in tax. However, it will level the playing field for all privately owned small businesses. Will it affect the smaller Ma & Pop family businesses earning under $150,000 annually, probably not significantly. Will it affect the doctor, lawyer, accountant, or architect that has a corporate income over $300,000 annually who has enjoyed a "sprinkled" family income and reduced taxes, yes it will. Will this curtail small business development, no. It will encourage small business to re-organize. It will encourage them to examine their employment and hourly pay practices, and it will encourage them to manage their investments and capital gains not as income shelters, but as true "corporate" investments.
To me that is "tax fairness" that evens the small business tax playing field.
http://business.financialpost.com/personal-finance/managing-wealth/four-new-strategies-you-can-use-this-year-to-get-ahead-of-ottawas-proposed-tax-changes
http://www.fin.gc.ca/n17/data/tppc-pfsp-eng.pdf
The rule changes do not seem to be aimed at the personal corporations that have "family" shareholders that have made significant "investment" contributions to the business, or that have family members who make significant "work" contributions businesses, but at personal businesses that "sprinkle" dividends to family members who make or have made only limited contributions to the business. It will also affect business owners that use their personal businesses to shelter income (business income that is not paid out as salaries or dividends nor is invested in core business improvements).
Yes, this is going to mean that some business owners and their shareholders who receive sprinkled income will pay more in tax. However, it will level the playing field for all privately owned small businesses. Will it affect the smaller Ma & Pop family businesses earning under $150,000 annually, probably not significantly. Will it affect the doctor, lawyer, accountant, or architect that has a corporate income over $300,000 annually who has enjoyed a "sprinkled" family income and reduced taxes, yes it will. Will this curtail small business development, no. It will encourage small business to re-organize. It will encourage them to examine their employment and hourly pay practices, and it will encourage them to manage their investments and capital gains not as income shelters, but as true "corporate" investments.
To me that is "tax fairness" that evens the small business tax playing field.
We won’t fight homelessness, hunger, or poverty, but we can fight climate change. The juxtaposition of the now and the future, food for thought.
"You make a living by what you get; you make a life by what you give." - Winston Churchill
"You make a living by what you get; you make a life by what you give." - Winston Churchill
-
- Newbie
- Posts: 61
- Joined: Mar 14th, 2014, 5:05 pm
Re: Tax changes - fact or fiction?
Hassel99 wrote:There is no such thing as a tax loophole. It is either in the tax code or it is not.
When the tax code is not followed for its intended purpose, then it becomes a loophole. Some people use these loopholes to take unfair advantage of the system.
I guess it depends on your morals and values as to what your comfort level is for justifying how you do business.
How we do anything is how we do everything.