Take the middle road on taxes
Re A Tax Affecting Only The Wealthy? You Decide (Report on Business, Sept. 15): The Liberal government should find some middle ground on the corporate tax-reform issue. Set up a private corporation and pay yourself in dividends? Sure. Invest retained earnings in the corporation? Up to a point. At some number ($3-million?), it’s no longer about planning for retirement, but about wealth accumulation. Which is fine, but should not get special treatment.
Pay dividends to a spouse? Sure. The tax code offers ways spouses can reduce total combined tax. Pay dividends to kids? No way, regardless of their age. If private corporations can do this, then the tax code should allow salaried employees to do something equivalent. (Full disclosure: I was a salaried employee all my life, sometimes with minimal benefits and sometimes with great benefits.) – Ira Greenblatt, Ottawa One way the Liberals could avoid a series of head-on collisions with small-business owners, farmers, medical professionals and other targeted groups is to raise the corporate tax rate. This would leave the present options in place, but widen the net to produce more tax revenues. – R.J. Monterio, Fredericton