Comments by "Pac Man" (@pacman3556) on "CP24" channel.

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  43. Small business owners don't seem to understand what is going on: 1- Small businesses follow business tax laws not personal income tax laws that the inclusion rate is on. 2- Small businesses make their money from selling a good or service which is 100% taxable not a capital gain. When small business owners pay themselves it is like a wage or salary so that is considered personal income that is 100% taxable. It is not a capital gain 3- Small business owners make their money including their retirement fund from the goods or services they sell. They save their entire life time from income earned selling a good or service. They shouldn't rely on the sale of their business for income (doesn't make sense how do you make a living if the thing you use to make a living needs to be sold) 4- the vast majority of assets in a business go down or depreciate over time. They don't usually go up. Equipment, cars, office furniture etc etc all depreciate over time. Owners are allowed to write off that depreciation on their income statement which lowers the amount they earn....in other words they are getting a tax break on the depreciation of their assets by lowering the taxable amount of income. Now they want a tax break on assets that go up also? 5- if someone actually is making a capital gain on the sale of their business then they should pay taxes on that gain. Everyone that works at a job has their income taxed and have their savings for retirement taxed. Even when people put the money in an RRSP it is taxed when it is removed so why should someone that owns a business be allowed a tax free retirement plan when everyone else has to pay tax? How is that fair? Even with the change to the inclusion rate instead of paying taxes on only 50% of their income (from the capital gain) they will now have to pay 65%. Everyone else pays 100% on their income. So it is about time they pay an equal share. 6- a capital gain is not realized until you sell the asset to determine what that gain is so people that own a small business will continue to operate their business as they always have been and it won't effect them at all. It is not until they sell the business that they determine what the value is and if it is a gain or loss. So nobody that needs their business to survive will close down their business because of this change. And when they do retire and sell the business if there is a gain then it goes to the points above- they should pay the same for their retirement fund as everyone else.
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