267 replies to this topic

[Mattjvd]

Yes and no to the double taxation angle. It's not purely double taxation because of the dividend gross up and credit mechanism, with offsets most of the double taxation.


What do you mean? Taxes are an annual thing. A tax liability doesn't carry over from one year to another.

Income earned that stays in the business in year 1 is taxed as corporate income. If that money is then paid to the owner as salary in year 2, it reduces the corporate income tax liability in year 2. That was the senario, as I understood it, that Mike was talking about.

[spanky123]

[Heavily edited] ^ This.

 

If we had a flat tax then this wouldn't be an issue either as there would be no advantage to tax splitting. What we have is a continued track of bad tax strategy after bad tax strategy. Various levels of Government keep trying to raise taxes on one segment of the population and then are shocked when they adopt strategies to minimize that tax. If the various levels of Government spent half the tie focusing on managing costs as they do trying to find ways of paying for increased costs then we would all be better off.

[jonny]

Income earned that stays in the business in year 1 is taxed as corporate income. If that money is then paid to the owner as salary in year 2, it reduces the corporate income tax liability in year 2. That was the senario, as I understood it, that Mike was talking about.

 

I see. You're talking cash flow vs accounting income. 

[Mike K.]

And what Trudeau is saying now is if you want to keep that already taxed money in your company and do anything with it other than let the value slip away with inflation, he's coming for you.

[Benezet]

Canadian centre for policy alternatives is not exactly an objective source on this topic is it mr issit?

Does that mean there are sources that are exacly objective? :-)

For the record, you are exactly wrong on the Isitt thing. I ain't no politician, and that should be quite obvious to all. Ciao.

[johnk]

Good comment today. The Libs are out-of-touch with small biz despite ongoing rhetoric about how small biz is so important. Have any of them ever owned a small enterprise?

https://www.thestar....-editorial.html

[jonny]

You know, a lot of us tried to warn you of the perils of electing Trudeau and Horgan. Don't act all surprised and offended now.

[spanky123]

You know, a lot of us tried to warn you of the perils of electing Trudeau and Horgan. Don't act all surprised and offended now.

 

They are working hand in hand. Trudeau is forcing small business owners to eliminate income splitting and savings for retirement while Horgan is raising the top tax rate to doubly whack them.

[jonny]

Horgan is raising the top BC rate right after Trudeau raised the top federal rate. Now, across the country, people are giving over 50% of their income to the government. That's fundamentally broken. 

[MarkoJ]

Horgan is raising the top BC rate right after Trudeau raised the top federal rate. Now, across the country, people are giving over 50% of their income to the government. That's fundamentally broken. 

 

I started taking significant time of work last year as a result of taxes and will only continue to do so in a larger quantity of time. Just no point in working hard or driving out to Sooke to do a mere posting after expenses and taxes, so when people from Sooke call me for such a service these days I politely reject the business.

[sdwright.vic]

Sorry... aww! You poor $200K plus sole prop. Muffin, get over it. Just increase you expense to reduce your income like everyone else does.

[sdwright.vic]

Also... if you are one of the few honest realtor's actually reporting AND paying their GST... congrats.

In my line if work realtor's have a VERY bad name.

[VicHockeyFan]

I started taking significant time of work last year as a result of taxes and will only continue to do so in a larger quantity of time. Just no point in working hard or driving out to Sooke to do a mere posting after expenses and taxes, so when people from Sooke call me for such a service these days I politely reject the business.

 

Why not hire a chump realtor out that way to go sign it up for $100?

[VicHockeyFan]

I started taking significant time of work last year as a result of taxes and will only continue to do so in a larger quantity of time. 

 

Work smarter, not harder.

[sdwright.vic]

^But don't make yourself out to be a "victim".

[spanky123]

Also... if you are one of the few honest realtor's actually reporting AND paying their GST... congrats.

In my line if work realtor's have a VERY bad name.

 

If you truly believe that the money Realtors make is too high then sign up as one. It isn't that hard (no offense to my Realtor buddies) and you too can collect easy money and properly file your GST returns!

[tjv]

In my line if work realtor's have a VERY bad name.

Very true, I know a lot of people getting ready to sell their houses and after finding out the realtor commissions they are telling realtors to take a hike.  Why would anyone in their right mind pay 34k to sell an average $1 million house?

 

Still happy at how much I saved by not dealing with a realtor

[spanky123]

^ Well my brother had a $500K house a few years ago and thought that he could save a few bucks by selling it himself. After he wasted a few weeks dealing with all of the con artists trying to scoop the FSBO property he finally relented and hired a Realtor. The house was sold within 30 days for $30K more than he was asking himself. Paid the Realtor fees and then some!

 

Different times I admit in terms of supply and demand but in a balanced market people aren't always lined up at the FSBO houses.

Edited by spanky123, 19 September 2017 - 07:17 PM.

[spanky123]

Sorry... aww! You poor $200K plus sole prop. Muffin, get over it. Just increase you expense to reduce your income like everyone else does.

 

I will tell you the problem. There reaches a point where you start having to pay the Gov't 50%+ of everything you make. If you start a business and fail that is 100% on you. For people who have already "made it", the numbers don't make sense anymore. Why take a chance? If you need something to do then you just start a lifestyle business that employs a couple of people (instead of a couple of hundred people) and makes enough money to cover costs. If you have money to invest put it into something safe rather than into business investment.

 

Now that may sound all fine and good because in many people's minds there are knocking the wealthy down to their level. That doesn't happen though. The wealthy already have their money, all that is happening is that job growth stalls, wages stagnate and Government tax revenue actually decreases. 

 

Don't believe me? Every month the amount of money held by large companies and the wealthy sitting in 'cash' on the sidelines increases while the debt held by the working class also increases. That is extremely inefficient and worsens that gap between the rich and the poor.

[sdwright.vic]

If you truly believe that the money Realtors make is too high then sign up as one. It isn't that hard (no offense to my Realtor buddies) and you too can collect easy money and properly file your GST returns!

Did I say anything about how much they make? No I said about them on a higher then normal percentage not paying there taxes. Just because you start your own business diesnt mean you should be "tax exempt".

I am surprised, closing some loop holes people are up in arms about. The number of employers out there not turning over trust funds... A--O-KAY!

I am sure everyone of you want to know that when you go into a store that you tax at the till or that employees source deductions are being sent in.