Maybe You Don’t Care About the
July 18 Proposed Tax Changes
The July 18 tax proposals do not affect you if you are not a business owner. They also don’t affect you if your business is not incorporated. If you are the only shareholder of your business, then the proposed changes to income splitting with dividends do not matter because you are not splitting any income.
You also don’t care about the proposed changes to the use of the capital gains exemption because those changes only apply to family members who are shareholders. If you are the only shareholder of a successful business then the one remaining change that you may care about is the thought that your income is going to be subject to some, as yet unannounced increase in taxes, if you don’t spend the money. Money that accumulates in a business if the business is paying the low rate of tax could be a problem – but the rules are not yet established for that.