Investment income in a CCPC

Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
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kcowan
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Re: Investment income in a CCPC

Post by kcowan » 12 Sep 2017 13:01

Yes the proposals would provide an enormous incentive for everyone to join the civil service for the guaranteed pension, just what the Liberals would love!
For the fun of it...Keith

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ghariton
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Re: Investment income in a CCPC

Post by ghariton » 12 Sep 2017 13:57

izzy wrote:
12 Sep 2017 02:08
How about taxing inherited wealth such as that enjoyed by Trudeau and his cronies whilst we are at it? Other countries do it ! We could use a similar test to determine what is "reasonable" too! It's only "fair" to tax those who have not contributed to the accumulation of the wealth at a higher rate of course.
"What's sauce for the goose-----"!!! :)
I also support the principle of taxing each dollar of income once, and once only. For example, the dividend tax credit is a darn good tax measure. As regards inherited wealth, I would distinguish what has been taxed already and what has not yet been taxed, e.g. uncrystalized capital gains. The latter should be taxed -- and is, under our system. Of course, if unrealized capital gains were taxed as incurred, there would be no concerns about taxing estates. Adding an estate or inheritance tax over and above that would be double taxation, in my view.

George
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izzy
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Re: Investment income in a CCPC

Post by izzy » 12 Sep 2017 16:32

My suggestion WAS tongue in cheek George.It would never happen anyway.Too many of our "masters" in Ottawa are living off Inherited money or the investment of same! But I was trying to make the point that the rationale for the "reasonableness" test for dividends they propose is hypocritical if they don't use the same criteria for other sources of income not "earned by the sweat of the brow".
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Re: Investment income in a CCPC

Post by izzy » 12 Sep 2017 16:52

perhaps "undeserved enrichment". would be a better term
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ghariton
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Re: Investment income in a CCPC

Post by ghariton » 12 Sep 2017 17:14

izzy wrote:
12 Sep 2017 16:32
My suggestion WAS tongue in cheek George.
I knew that. I just couldn't resist another opportunity to get on my soapbox. :wink:

George
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tdiddy
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Re: Investment income in a CCPC

Post by tdiddy » 12 Sep 2017 18:13

ghariton wrote:
12 Sep 2017 13:57

I also support the principle of taxing each dollar of income once, and once only. For example, the dividend tax credit is a darn good tax measure. As regards inherited wealth, I would distinguish what has been taxed already and what has not yet been taxed, e.g. uncrystalized capital gains. The latter should be taxed -- and is, under our system. Of course, if unrealized capital gains were taxed as incurred, there would be no concerns about taxing estates. Adding an estate or inheritance tax over and above that would be double taxation, in my view.

George
How do you feel about GST then? :) Frankly I think an inheritance tax is more "fair" in terms of ability to pay than uber progressive income tax for young hard working SMB owners/professionals with negligible net worth

Sorry for contributing to off topicness! I'm sure this forum will come back around once changes are finalized and we have to figure out what to do

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kcowan
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Re: Investment income in a CCPC

Post by kcowan » 13 Sep 2017 08:40

tdiddy
You think ability to pay should be a factor in taxation? Now that is a slippery slope!
For the fun of it...Keith

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ghariton
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Re: Investment income in a CCPC

Post by ghariton » 13 Sep 2017 14:18

tdiddy wrote:
12 Sep 2017 18:13
How do you feel about GST then? :)
Well, since not much can be said on the original topic of this thread until we get more detail from Mr. Morneau as to his proposal, I don't feel too badly continuing off-topic. However, it might be helpful if some kind moderator could split off the last dozen posts or so into a separate thread on, say, "Tax Policy".

When originally implemented, the GST was supposed to be a partial substitute for the personal income tax, Revenues from GST were supposed to be matched by reductions in personal income tax rates. In that sense, personal income tax and GST are supposed to be substitutes, not piling on. Somke of us would like to see this continue, and the complete elimination of the income tax, substituting GST/HST and various "externality" taxes and user fees instead.

In practice, of course, the GST turned out to be a real money generator for the government, and a large part of why Paul Martin was able to get the deficit under control. So it did turn out to be double taxation in some measure. But then, I think that was an abuse of the system, rather than something to celebrate.

George
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Re: Investment income in a CCPC

Post by Rysto » 14 Sep 2017 20:16

ghariton wrote:
13 Sep 2017 14:18
When originally implemented, the GST was supposed to be a partial substitute for the personal income tax, Revenues from GST were supposed to be matched by reductions in personal income tax rates.
This is the first I've ever heard this claim. The GST was supposed to be a replacement for a tax on manufacturers, which was indeed repealed. The GST was revenue neutral.

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Re: Investment income in a CCPC

Post by ghariton » 14 Sep 2017 21:02

Rysto wrote:
14 Sep 2017 20:16
The GST was supposed to be a replacement for a tax on manufacturers, which was indeed repealed. The GST was revenue neutral.
You're right of course. I don't know what I was thinking when I wrote that.

George
The plural of anecdote is NOT data.

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