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On July 18, the federal Liberal government announced drastic and far-reaching changes to the tax system affecting private corporations. Although many have voiced their opposition to the measures, a significant portion of the population believe they are justified and necessary.

There appears to be a perception that high-income earners are somehow using corporations to gain an unfair tax advantage and the government is simply closing loopholes that are being exploited by an entitled minority.

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The sad reality is that the proposed measures are very broadly worded, unfair and ill-conceived. They have far-reaching ramifications for virtually every small business owner in this country and his or her family. They also send the wrong message to the Canadian public.

When income is earned through a corporation, it is subject to tax twice: once when earned by the corporation and then again when those earnings are accessed by the shareholder as a dividend.