The federal government is considering making changes to taxation in this country. You might have heard complaints from some groups. The actual conversation is about reducing the ability of small business owners to split income with family members through dividends. The question I am asking “Why does the federal government want to take more tax from small business owners?”
Small businesses are crucial to the Canadian economy and we should avoid reducing the incentives for a business owner to continue to run a business. The majority of Canadians do not work for a government work for a business that employs less than 100 people.
Comparisons have been made about employees and business owners and the comment made that business owners have tax advantages that salaried employees do not. Seems fair to me, an employee is not taking any risk, is getting paid for holidays and vacations and in some cases has an employer who is contributing to a pension plan on their behalf. Why should they also get more tax breaks than a business owner?
If the federal government would like to give employees the same tax advantages as business owners, then they should give business owners the same advantages as employees. Let’s talk about paid vacation time and holiday pay, paid sick time and access to EI if the business fails.
Employees have some real advantages over business owners; let’s put that on the table as well if we are going to talk about evening things up.