Report on Small Business newsletter: The truth about the Liberals' proposed small-business tax reforms

Only the wealthy? The truth about the Liberals' proposed small-business tax reforms

Accountants across the country have been scratching their heads over Ottawa's proposed tax changes and how they will work in practice. Prime Minister Justin Trudeau says the proposed reforms are meant to make the wealthy pay their fair share and are aimed at people making more than $150,000, and Finance Minister Bill Morneau wrote in The Globe and Mail that most middle-class Canadians and small businesses will be unaffected. But critics, including the Canadian Federation of Independent Business (CFIB) and the Conservative Party, argue the proposals will in fact hurt middle-class business owners and their families, the lifeblood of the Canadian economy.

Who's right? The Globe and Mail did a detailed analysis of four fictitious families at different income levels. While in reality there is an infinite number of family and business situations, we selected common scenarios to get a sense of the impact of these proposals on middle class and wealthy business owners. Each family has a business set up as a private corporation, as the proposed reforms only affect businesses structured as Canadian Controlled Private Corporations, not sole proprietorships or partnerships. Full story (for subscribers)

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