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
Small buis. is a term that's thrown around a lot in American. Studies have shown they really don't create many jobs. Every "small" one I know of only hires their own families
ReplyDeleteThey can certainly make a lot of noise for themselves
Deleteit will be interesting to see how this turns out. Every category thinks they should get tax breaks, but everyone wants services.
ReplyDeleteBut our small businesses seem to forget that they need services..
DeleteI wonder how these taxes compare to ours here in the US. It seems like the less you have, the more is taken out of your wages. And as Linda says, everybody wants services.
ReplyDeleteOur small business taxes are lower than yours.
DeleteIt's remarkable how different one country's tax system can be from another's.
ReplyDeleteAccounts can think of many ways to mess up tax systems.
DeleteThey do that here but call it padding the books. It doesn't seem fair one bit, but with my medicare health insurance I pay 130 a month. Your taxes cover health insurance but I wonder if it is cheaper. Our sales tax in Iowa is 7%.
ReplyDeleteI agree with what you've written. Everyone should pay their fair share.
ReplyDeleteFair is the key word.
DeleteNo one wants to pay taxes, but we must.
ReplyDeleteWe want services but. Don,t want to pay for them.
DeleteToo many loopholes as far as I'm concerned. The same applies to corporations who pay very little tax and refuse to actually invest the money they'd otherwise pay into real jobs. Taxes are the cost of civilization.
ReplyDeleteMany accountants make good money on tax laws.
DeleteEveryone gripes about taxes but I don't mind paying them so long as they're fair, which they usually aren't.
ReplyDeleteAs far as I'm concerned most of the griping is completely irrational.
DeleteSounds like Canadian small businesses have been operating in some sort of cloud cuckoo land. It's time for them to smell the coffee and come back to the real world.
ReplyDeleteI wasn't sure whether to comment on this one or not, Red! I am married to an accountant and I work in an accounting office, so I have another viewpoint on this. Don't believe everything you are reading. It takes someone trained in accounting and taxation to understand all the implications of the proposed changes, the historical context and the likely outcomes. It's not as simple as either the government or the media is painting it! I'll stop there :)
ReplyDeleteI hate taxes but my idea never floats. Just have a use tax that way you pay taxes on what you use...it would cover health care and a whole bunch of "stuff" if everyone paid their fair share. There are too many loop holes and special groups who get by with paying less . Everyone should pay their fair share. :)
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