The Ministry of Finance of the Government of Canada has announced plans to make sweeping changes to how small business corporations are accorded tax fairness.  Their position is that most small and medium business corporations are tax dodges created to avoid paying taxes on business income and that the average Canadian does not have these tax advantages.  That is not true.

The reality is that most small to medium business corporations were granted these tax code items over the past 50 years after careful study and follow up of economic effect.  The current tax laws recognize that small to medium business owners do not have Employment Insurance, maternity/paternity leave, paid sick days, limits on hours of work, are personally liable if the business fails, and need to save money for inevitable economic slow downs in order to remain in business employing people and contributing to the Canadian economy. The existing tax law recognizes that family members have to contribute to the business, usually unpaid. What farm kid didn't spend their summer working on the famiy farm instead of hanging out at the suburban mall?

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