I don't see the unfairness. Business owners can pay themselves a salary and, in the process, create RRSP contribution room. Alternatively, they can create an Individual Pension Plan (IPP).NormR wrote: ↑08 Oct 2017 15:38Don't disagree with the sentiment.JaydoubleU wrote: ↑08 Oct 2017 15:04I am silly, arrogant and narcissistic for thinking my small contribution matters?! Hmm. It is the small contributions of millions of us who pay Derek Foster's child benefits that I resent, but I am happy to pay into a pension plan that supports people who themselves contributed all their lives or to support those who are unable to work. I have no issue with pensioners or with people who retired early to follow other pursuits. I take issue with a young able person who lives off the contributions of others and is so arrogant as to boast about it in his books.
But fairness can be in the eye of the beholder ...
Millions of Canadians use equivalent passive-investment vehicles to duck billions in taxes. They’re called pension plans
I think that the current federal government wishes to put an end to the unfairness of corporations created solely to avoid paying taxes, with no benefit to society (no jobs created in the process). The QC government attacked this issue, recently, by increasing taxes on corporations which do not employ workers for at least 5,500 hours:
(I added the note in blue).Taxation changes: wage costs
The real change impacting corporate taxes in Quebec is the change regarding the criteria of 3 minimum full-time employees, which is replaced by some criteria regarding number of hours worked per year.
To be eligible for SBDs*, employees must have completed at least 5,500 hours of work during the tax year. A maximum of 40 hours per week per worker will be imposed.
Companies in the primary and manufacturing sectors will benefit from the highest rate of SBDs, which will be obtained either due to the ‘minimum number of hours worked per year’ qualification or for the qualification based on sector of activity: the primary sector or the manufacturing sector.
For example, if your company does not employ workers for at least 5,500 hours in 2017, the 8% tax rate will not apply. If you own an incorporated company and work 80 hours a week, you can only include 40 hours into the calculation…
* Small Business Deductions.