REVERSAL: Trudeau Government Continues Surrender On Widely-Hated Tax Changes

The Trudeau government continues their desperate surrender on their widely-hated tax changes. The government has announced that they will scrap their plan to impose restrictions on the conversion of income into capital gains. The policy was massively opposed by many, including family farmers, as it would have made it far tougher to transfer the business to the next generation.

The reversal comes after the government said they would also cut back on tougher policies on passive investment income.

  • k1992

    I’m of two minds about this: it was an ugly, sleazy and completely unfair idea to begin with, so it should never have even been considered. But on the other hand, for whatever reasons (polls, presumably) they are abandoning it and doing the right thing in the end. So in this case, democracy “worked” (a little, anyway).

    • Waffle

      There’s a lot going on behind the scenes that we will probably never get to know,but here’s how I read it:

      First and foremost, people who live in glass villas should never throw stones.

      Billy Morneau is a smart fella and should have known better. However, Power, along with its buddies Sex and Money is a powerful motivator. So it is understandable if even the smartest of men could not resist its siren call when the PM’s bff dangled it like a shiny trinket.

      Billy jumped. But he knew he was doing the wrong thing and like a cat, he employed various strategies to try to cover the evidence — a numbered company here, a holding company there, and so on ad infinitum.

      But guilt will out. It was that damn villa!!! A Freudian slip, maybe?

      I think there just might be a silver lining to all of this. It just might signal the beginning of the end for the Trudeau-Butts-Soros alliance. After all, Billy Morneau was set up as the fall guy for their nefarious scheme and he will forever be the laughing stock in the public arena. You can’t do that to people and get away with it. BTW, I have no sympathy for Morneau. He should have known better but schadenfreude is so delicious

  • simus1

    What horrors have they sneaked past us while we were distracted by this piece of unkempt political theatre. I fear the worst.

  • CodexCoder

    A wise person doesn’t have to throw meat to the wolves to know what will happen to the meat.

  • Frances

    It’s still a disaster. The regulations they are proposing are extremely complex, and small businesses don’t have the resources to sort them out. Accountants and lawyers aren’t exactly jumping for joy either, and they would prefer to be able to give their clients good and efficient advice.

    And as for the canard that income “sprinkling” is only for the rich to avoid income – that may be how Trudeau, Morneau and buds use it. But there are a lot of hard-working businessmen and women who use this strategy as well who are in no way wealthy, and whose firms aren’t making that much money. And don’t forget said dividends are from after-tax income of the corporation, and are further taxed in the hands of the recipient.

  • Tooth&Claw

    Let’s be honest here. This government would love to take your whole paycheque and give you a stipend to live on. That’s how these people roll.