April 23, 2015

Trudeau sends confusing mixed signals on small business tax cut

Brian LilleyArchive

Justin Trudeau is at it again, confusing everyone, himself included, on his economic plan.

After coming out against the government's proposed small business tax cut, Trudeau said he supported it.

Kind of.

I try to make sense of it all.

Maybe you can help me out in the comments!


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commented 2015-04-24 09:16:28 -0400
Justie sends out confusing mixed signals on everything he says, except for pot.
commented 2015-04-23 20:53:45 -0400
Small businesses, as a group, employ the largest number of people in the country…by helping them, Harper is encouraging employment…don’t they get it…(of course not,silly)…if some wealthy people use the loopholes just CLOSE THEM…ok? In fact incorporating oneself has always been carefully watched for over 20 years….and is likely only possible until the person gets caught.

I have to agree with Mulcair and the NDP for once regarding his comments that “Trudeau is simply not ready to lead”..he hit the nail squarely on the noggin… and Mansbridge a few weeks ago, showed that he is an equivocating deceiver regarding his slippery presentation of the deficits of the various governments…it was so dodgy and manipulated that it had to be carefully examined to see that he was misrepresenting the facts!

re: Liberals balance budgets! His own father was the worst spender we’ve had…leaving the subsequent conservative majority with so little money to pay the bills (deficit of 65.7 BILLION) that Mulroney had NO CHOICE BUT to bring in the enormous GST in order to replenish the more than empty coffers…Trudeau ALSO built up the civil service from about 3,000 to 30,000 (if my memory serves me correctly) raising the taxpayers ONGOING costs for supporting this massive increase…and THE BUDGET DIDN’T BALANCE ITSELF, nor could it. Why didn’t he explain this to his son so he wouldn’t look so foolish?
commented 2015-04-23 20:40:49 -0400
aaahhh aaahhh it is not good because i didn’t say it first….aaahh …justified trudeau …that is a leader
commented 2015-04-23 20:22:46 -0400
To shed light on this subject, the so called wealthy Canadians who incorporate themselves and services, will not benefit from this reduction. The tax will be reduced from 11% to 9% by increasing what is known as the small business deduction. The small business deduction is only available to income that is known as Canadian Controlled Private Corporations Active Income. Not their investment income, not their capital gains, just their income for doing business. People who incorporate themselves and services, who, if it were not for the existence of the incorporation, would be considered an employee of the company to who they provide services. For example, when you walk into an office, you expect to be greeted by a receptionist. Because of that expectation, if that receptionist is incorporated, if it were not for the incorporation, they would still be an employee of the firm.

Incorporation’s that fall under this category have their income reclassified from Active Income to Personal Service Income. Personal Service Income is limited as to what is allowable for expenses. They can only deduct that which would be expected to be deducted from an employee at the same position. Basically, nothing. The only deduction Personal Service Income is guaranteed is Salaries paid to the person doing the work. You can not split the salary to a spouse or child. You also can not defer income. When the income is earned, it is taxable.

Now the fun part, income earned from Personal Service does not qualify for the general rate deduction NOR the small business deduction. Personal Service income is taxed at 38%, no exceptions. The CRA is very quick at reclassifying all income as Personal Service from Active Business if they sniff that the employee test has been met. The burden on the tax payer to prove that their business is indeed active business income is quite substantial and the CRA is quite strict in their interpretation of the rules.

The businesses that Justin worries about being the benefactors of this tax cut will not benefit at all. The only benefactors of this tax cut are legitimate small business owners to actively work for their income. Sure, some will try and bend the rules and when they are caught, the penalties are also substantial.
commented 2015-04-23 17:53:27 -0400
Trudeau’s radio ads are actually not bad. He’s improved his drama skills. The written media love him. As does much TV. Average folks who are too busy to pay much attention can easily be hoodwinked by union initiatives, family, friends and ads. However, those on the left who are better informed will vote NDP. Hopefully that will split the left enough to usher in another Conservative majority government.

As to Trudeau’s confusion – remember Chretien? Half the time he spoke pure gibberish. But he had charisma. More than Trudeau but you get my point. But I am hoping the budget and security threats have more charisma than Justin.
commented 2015-04-23 17:45:46 -0400
We just have to convince those people. Not easy, I know, with the media always using loaded language to destroy the image of the Conservative Party. For instance, Peter Mansbridge said that the Conservatives are ‘Raiding’ the Contingency fund to balance the budget. Perhaps he is unaware of that term and it’s connotation. But I doubt it. Here are some synonyms according to thesaurus.com; Assault, Surprise Attack, Force-entry, Hit-and-Run, Invasion. All terrible things that somehow made it’s way into ‘reporting’ the news. Shameless.
commented 2015-04-23 17:45:09 -0400
Planning needs ability to think. I rest my case.
commented 2015-04-23 17:44:01 -0400
Little Justin needs to go smoke fore of that Crap he’s been toking on, because he sure is not any kind of a decent Politian. In other words, He cannot tell the difference between Dung, and Shinola.
commented 2015-04-23 17:26:48 -0400
It only takes one ad to confuse the lame public, which I am noticing there is plenty of. For instance, I saw an ad today from the liberals saying the old folks are going to lose out on $13k and right away someone commented saying they are definitely going to vote for Trudeau. Scares the hell out of me. The Libs don’t want tax cuts, they LOOOOVE tax, one look at Wynne says it all. One girl told me she likes him cause he is cute. This is the public that is allowed to vote. I think there should be a questionnaire on the ballot before it is considered a knowledgeable and dependable vote. I know one Lib who is an apt dweller, never will drive, never will see his hydro go up, works minimum wage and will always, will never pay land taxes, gas, or even have kids (adamantly). Why the hell should he get to vote!?! Even trying to persuade him into considering other peoples drive to live comfortably without giving up their whole paycheck, home, small business and vehicle does nothing. I am completely perplexed!
commented 2015-04-23 17:04:09 -0400
Make shit up each time you wake up, he looks more ignorant each time he speaks.
commented 2015-04-23 16:16:54 -0400
There really isn’t too much that the opposition can complain about in this budget without alienating themselves. Most Canadians are thrilled with it..especially those with young children and small business’s. And for those who say they’re just not that many people that have enough money to throw into a TFSA….think again….lots of widows with new insurance…sad, but true.
commented 2015-04-23 16:00:37 -0400
Great story Brian Lilley……..The lefties should pay attention to this to see just how far out to lunch j.t. actually is………Just a man-boy without a clue……..
commented 2015-04-23 15:58:47 -0400
Cite one study and maybe someone will believe you. Too late, you lose.
commented 2015-04-23 15:21:34 -0400
Psychopaths are good at changing their story on a dime. Troodo um-um-um-uh-uh-uh is just stupid from smoking all that dope in his teens, 20s and 30s.