Our country, Canada , is looking at some proposals to change the small business tax to make it "fairer"
We have a very low business tax in this country. It's much lower than what the ordinary working citizen would be taxed at.
Then there are the "loop holes." Businesses can income sprinkle. I like that term. It means that a small business can pay family members a salary if they are under 24. This means that the kids would be taxed at the lowest rate. It also means that the small business has less income to pay taxes on.
Then there are shares that can be bought in the business which means no tax is paid at all.
Then there are special taxes when the business is sold or passed on and these taxes are also low. For example, farmers are exempt from capital gains on a certain part of their farm.
So the small business people are up in arms. They can come up with all kinds of silly reasons why the tax should remain at the low rate. Most of it is their own choice. They don't have employment insurance or other benefits. They could buy these benefits like I do. The cost of benefits were deducted from my paycheck.They have long hours of work. Well, guess what? I worked 60 hours a week when I taught. I was not able to get time off to go to my kid's school interviews. They gave me three days to travel to another province for my Mother's funeral.
Small businesses feel they should get a tax break for creating jobs.
So I am taxed at a higher rate than small businesses. Not fair. It's been going on for a long time and the government is seeing tax that they are not collecting.
So I hope that some of the proposed changes are adopted and the tax rates are fair