The Liberals proposed changes to corporate taxes are going to hammer one in 4 family farms in Alberta.
The Liberals say they're trying to close loopholes used by rich people to income sprinkle - that’s the practice hiring family members who don’t do actual work or naming shareholders to a company who haven't invested to bring the tax bill down.
A few weeks ago, I told you that the Liberals out of touch plan wouldn’t stop any rich tax dodgers, but would instead hurt your plumber, electrician, mechanic, farmers and anyone who cuts their teeth working in the family business or who will be taking over the family business from mom and dad.
And now the National Post is catching on. They are now reporting on the post harvest tax grab the Liberals are planning for the one in 4 farms in Canada - over 43,000- that are structured as family farm corporations. The Ontario Department of Agriculture even encourages farmers to incorporate once they reach 75 thousand dollars in annual income. This means farmers are not the rich tax cheats the Liberals are looking for but rather people who are often cash poor and land rich
Farmers and business owners routinely name their children as shareholders to plan for the day they can retire and leave the business to the kids - it’s part of the normal estate and succession planning. It’s what normal people who worry about the future and where their money comes from have to do. Often times children work for free, informally, to become a shareholder. But the Liberals say their tax plans will include a yet to be determined “reasonable test” to distinguish what amounts to actual work or investment in a family business.
Finance Minister Bill Morneau thinks he can tell who is good son or daughter working for your parents and who is evil rich money grubbing tax cheat.
After Alberta's carbon tax makes all their farming inputs more expensive and chases away their off the farm jobs, the Liberals are going to put one in 4 Canadian farmers through the taxation combine.