This is a weak report. A fairer comparison would model both U.S. entity types (S-corp vs C-corp), include Canadian integration, and consider real business behavior (deferral, reinvestment, property ownership, location).
Basically, there is almost no double taxation for Canadian small businesses under the SBD limit. There’s a massive deferral advantage for Canadian firms, which under the US S Corp structure is not available (they must take in all earnings personally in the year they become taxable).
C Corps are subject to double taxation in the United States. They do not have a dividend tax credit and gross up model.
APRengar on
The ol’ “lower my taxes or we’re leaving the country (specifically America)” message again.
I get wanting to not be anti-business, but they are acting like it’s just so easy to uproot and go to a totally different market, with more competition.
At least make the argument they’re suffering worse than big business and want help in that regard.
Also are Canadian businesses looking to join “tariffs change whenever I want, deal with it” America?
Bob_Dole69 on
“Currently, the federal small business income tax rate is nine per cent. We think that’s far too high and needs to be lowered.”
Hard to take this hyperbole serious when 9% is far too high.
Big-Safe-2459 on
Let’s see: generous paid paternity and/or parental leave, excellent healthcare system paid by taxes, and affordable education for kids of workers. CFIB sometimes gets a little to “hands off” for my liking.
4 Comments
This is a weak report. A fairer comparison would model both U.S. entity types (S-corp vs C-corp), include Canadian integration, and consider real business behavior (deferral, reinvestment, property ownership, location).
Basically, there is almost no double taxation for Canadian small businesses under the SBD limit. There’s a massive deferral advantage for Canadian firms, which under the US S Corp structure is not available (they must take in all earnings personally in the year they become taxable).
C Corps are subject to double taxation in the United States. They do not have a dividend tax credit and gross up model.
The ol’ “lower my taxes or we’re leaving the country (specifically America)” message again.
I get wanting to not be anti-business, but they are acting like it’s just so easy to uproot and go to a totally different market, with more competition.
At least make the argument they’re suffering worse than big business and want help in that regard.
Also are Canadian businesses looking to join “tariffs change whenever I want, deal with it” America?
“Currently, the federal small business income tax rate is nine per cent. We think that’s far too high and needs to be lowered.”
Hard to take this hyperbole serious when 9% is far too high.
Let’s see: generous paid paternity and/or parental leave, excellent healthcare system paid by taxes, and affordable education for kids of workers. CFIB sometimes gets a little to “hands off” for my liking.