Simon Tanner

[Simon Tanner @dynamicplanning]

@JS_Sports @movingtomerritt Thanks John. Happy for the boys to be able to advance. Should be a great final.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP Agreed. I’ve searched and searched and have yet to find a universal criteria/definition for “wealthy” “middle class” or “poor”. In accumulation enough is never enough and the same goes for taxation. Money is a limited resource yet there are unlimited ways to spend it.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP …What I contend is that the changes to the personal capital gains rate may only impact <1% of Canadians. The changes to the corporate policy directly impacts far more and indirectly nearly all Canadians.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP a defined term we may not agree on is “well off” , “wealthy” and or “working class”. If we define well off as better than someone else than every Canadian is well off. I think we may also disagree on the actual benefit of the policy, but that’s another discussion….

[Simon Tanner @dynamicplanning]

@MarkMcGrathCFP @ssolyom @prairiecentrist I think people hear “business tax increases” and think mega caps. They don’t think of their Dry Cleaner, Doctor, Plumber or Chiropractor as a “business” in the same way. For every Royal Bank there are 10,000 “mom and pop” businesses.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP I’d argue it’s not significant for the largest of corporations because they can just past the additional tax onto the consumer. The “mom and pop” business can’t necessarily do that without the risk of the customer going elsewhere

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP We often think when “business” tax changes of Telus or Bell or Loblaws. The big bad corporations. But the reality is they will have tax impacts that they simply pass on to the consumer. It’s your dry cleaner (in my example) who these changes really impact. They aren’t the wealthy

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP In cap gains tax. If they sell in July they’ll pay ~ $85,500 in cap gains tax. Sure it’s not huge but that’s a big chunk of cash and likely a difference in their plan.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP …year but if they have them when the realize those gains now or in the future they will pay a higher rate on those gains from dollar $1.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP LCGE doesn’t apply to businesses. Only to individuals who sell a qualifying business.
I don’t have the data on how many in Canada declare capital gains but the numbers in my practice would be fairly universal I would think. They may not declare them in every given….

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP As a business owner, if I realize a $1 capital gain in my business I am paying a higher rate of tax come July. There is no “first $250,000” for businesses. So the whole “large capital gains” argument doesn’t hold water when it comes to small business.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP Also, businesses don’t benefit from a progressive tax rate on capital gains like individuals do. They pay the highest possible rate (~51% in BC) from dollar 1.

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP Great point!If the perceived loser is the business owner who now pays more tax on a cap gain within the business who is the perceived winner with this ITA change? I guess I look at it and say why the need to make a small business pay more cap gains tax than they would personally?

[Simon Tanner @dynamicplanning]

@ssolyom @prairiecentrist @MarkMcGrathCFP 256 businesses owned by people I work with. 241 of them impacted negatively by these changes. Sorry my numbers were off. 94% impacted with higher tax because of this change.

[Simon Tanner @dynamicplanning]

@TheFrankDomenic Complicated stuff to discuss in 140 character or less.

[Simon Tanner @dynamicplanning]

@TheFrankDomenic Appreciate the dialogue Frank and you searching for facts. I’d welcome the opportunity to chat anytime about this budget or any tax/financial information. It’s important stuff that we need to get right

[Simon Tanner @dynamicplanning]

@TheFrankDomenic It’s not. They are synonymous in accounting terms. You either take a draw as salary or a dividend.

[Simon Tanner @dynamicplanning]

@TheFrankDomenic As a business owner. If my company has money in it and I want to get it out into my personal account I can pay a wage (salary) , or dividends. I cannot pay myself a capital gain. Only way I can realize a capital gain is by selling some or all of the company.