The Truth About Trudeau’s Tax Hikes: Hurting Canadian Workers
Trudeau’s tax changes are already causing entrepreneurs and business owners to consider downsizing, meaning fewer jobs and fewer opportunities for Canadian workers.
WINNIPEG, MB – One of the biggest problems with the tax changes being proposed by Justin Trudeau, is how they will act as a disincentive for entrepreneurs and business owners to take risks and expand their business.
Larry Frostiak of Frostiak & Leslie Chartered Professional Accountants Inc. says he already has clients who are thinking of downsizing – and that’s even before the tax hikes are officially imposed.
For those who downsize because of a higher tax bill, there will also be many business owners who simply don’t expand their business.
That leads to lost jobs, because positions are never created, and thus never filled.
This is a quiet, yet devastating impact on our economy, and it will slow economic growth.
In fact, some are even saying Trudeau’s tax changes could push Canada into a recession, as a result of the negative impact on investment and job creation.
Real estate developers have noted that the proposals to tax “passive income” would affect how rental income would be taxed for those investing in real estate projects, since these tax changes could impose a corporate and personal tax rate of 73%!
This combined 73% tax rate will be a huge disincentive for investment in commercial property and residential revenue properties. This means fewer jobs for contractors, fewer jobs for construction workers, fewer jobs for electricians, fewer jobs for plumbers, and can even ripple out into the building and materials industry, as fewer resources will be utilized in constructing such projects.
That may be an unintended consequence of Trudeau’s tax hikes, but it is a real consequence nonetheless.
Spencer Fernando, MyToba News