Prestige Parcel

Wishing to congratulate on opening his own business. He's been our preferred mechanic for a number of years and our business will be following him to CJM Auto Repairs.

Best of luck, Corey !

Lately we've been bombarded with television commercials showing the new leader of the Conservative Party trying to drum up a fear of the government's proposals for income tax relating to small businesses.

As an owner of a small business it really irritates me to hear someone trying to earn political capital with a message that is - in my opinion - as much a lie as the Provincial NDP was putting out during the HST / PST debate. They seem to be relying on the fact that most people will take what they are saying at face value and not bother to check the facts.

I HAVE bothered to look at this issue, and it seems to me to be quite straightforward....

#1. Far from imposing a new "ruinous" tax on small business, the government is talking about LOWERING the small business tax rate.

#2. The issue of "Income sprinkling". This limits the ability of family owned businesses to spread the PROFITS of their company by assigning income to family members who are not in fact working in the business. This practice is quite common.... instead of paying income tax at the normal income tax rates on the full profit, owners would frequently assign "salaries" to other family members who would only be paying tax at minimal rates. This would have the effect of reducing the tax paid overall, allowing the owning family to keep a larger than normal part of the profit. Note... this is Income tax. It is based on the PROFIT of a company, but it does not reduce the profit. None of this kicks in unless you are making a profit already - and quite a healthy one, at that..

If the other family members are actively working in the business, there is no issue. But if they are not (children at school, for instance, and not even working part time for the business) then there is no question that it is simply a means to reduce income tax that is simply not available to the general public. This will not please some people - mostly people who are already quite well off. It really shouldn't be upsetting the vast majority of the public.

And yet the Conservatives clearly think that their very expensive "Mis-infomercials" are going to pay dividends at the next election. And it really annoys me that they clearly believe we are that gullible.