I know many small to medium sized business owners in Burnaby who either operate as a sole proprietorship or a corporation. There are quite a few changes the federal liberal government intends on implementing that will directly affect these people. Two main areas of concern, I believe, are the ability for business owners to pay their family (particularly their adult children) salaries which assists in their revenue that they are taxed on and taxes on businesses “savings”.
How many business owners do you know that operate with the help of their family? This is too common. Even if your family have full time jobs they are most likely, in some way, assisting you with your day to day operations. Of course there is room to take advantage of this system, but does that outweigh the return of investment on people starting their businesses, creating jobs and bringing in tax revenue?
The second main area of concern is that small to medium sized businesses can leave revenue in the corporation’s account, rather than withdrawing and spending themselves as income, of amounts up to $500,000 which they are taxed less on. If you withdraw the revenue and pay yourself you are taxed a higher amount. If you leave the money within the corporation and re-invest it later back into the business you are taxed less (as little as 15% in some provinces).The liberal government believes this is unfair.
It is my opinion that these proposed changes to our tax system are a direct attack on our country’s most valuable entrepreneurs. These people work endlessly and tirelessly to chase their dreams and often risk all of their finances to do so. They bring us services, they provide products and most importantly they provide jobs. There has to be a middle ground or a better way of implementing change on a smaller level to avoid tax fraud or loop holes.
Read this article on the Globe and Mail for more info: https://www.theglobeandmail.com/globe-investor/personal-finance/taxes/proposed-tax-changes-will-shake-the-small-business-world/article35754872/
For the full report: http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.pdf
To sign the petition (I have no involvement): https://www.change.org/p/justin-trudeau-stop-unfair-tax-changes-access-to-canada-s-health-care-threatened
Burnaby Business owners should contact both our MLAs and MPs and ask them to represent our interests on both a provincial and federal level when it comes to proposed changes that impact our business owners.
E-mail MLA Katrina Chen (Burnaby-Lougheed)
E-mail MLA Raj Chouhan (Burnaby-Edmonds)
E-mail MLA Anne Kang (Burnaby-Deer Lake)
E-mail MLA Janet Routledge (Burnaby North)
E-mail MP Kennedy Stewart (Burnaby – Douglas)
E-mail MP Peter Julian (Burnaby – New Westminster)