Federal Finance Minister’s Small Business Taxation Changes Not Popular Among BC Business Owners

Federal Finance Minister Bill Morneau is proposing changes to small business taxation, including limiting the ability of a business owner to pay less tax through so-called income sprinkling to family members; restricting the use of small business corporations for making passive investments such as buying and selling shares of other companies; and cutting the small business tax rate from 10.5 percent to 9 percent by 2019. In December, Mustel Group asked 300 B.C. residents what they thought of the proposals.

Very few believed the changes would help business and the economy, and there was only one demographic where more than 50 percent of respondents predicted they would would hurt small businesses and harm the economy— not surprisingly, small business owners.

See BCBusiness print release here