Friday, September 08, 2017

Entitled professionals should stop whining about tax reforms

I'm getting a little impatient with all the well-paid doctors and lawyers who are complaining so vociferously about the federal government's plans to close up tax loopholes that these people have been exploiting for years.
The Liberal tax reforms are aimed at clamping down on the kinds of shell companies that allow self-employed to pay lower corporation and dividend taxes, rather than the income taxes everyone else has to pay, as well as making further tax savings by "sprinkling" their incomes around their extended families. It aims to treat them just like any other salary- earner.
The tax plan, which is still a work in progress at the moment, is expected to only affect top-end professionals earning over $150,000 anyway, those who have already exhausted org we tax-saving methods like RRSPs and TFSAs: how much can they have to complain about? Furthermore, it only applies to Canadian-controlled private corporations (CCPCs), and studies show us that richer individuals are much more likely to have a CCPC than the middle- and lower-income individuals that much of the media complaints seem to focus on. According to the Canadian Tax Journal, among tax-payers in the bottom half of the income spectrum, less than 5% have a CCPC, as compared to almost half of the top 1% of earners. So, the focus of the tax measures seems well-placed, and it is unlikely to affect the proverbial mom-and-pop corner store owners that so many reports and conservative commentators talk about with such outrage in their tone.
All these doctors and lawyers have such a culture of entitlement that they have come to see the current system as the norm and the planned reforms as unfair incursions on their cozy little schemes, complaining that they would no longer be able to save for their retirements and maternity leaves.
Well, how do they think other people manage it? Other people who earn the same as them and pay a normal, reasonable amount of income tax.
The tax reforms seem eminently reasonable to me, even long overdue. The whining of a bunch of entitled upper middle class professionals has no place in this discussion.

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