From: AlanBaggett@volcanomail.com   
      
   Are Canadians using small business tax rate to avoid tax? : CRA SOTW    
      
   Trudeau says wealthiest Canadians using small business tax rate to avoid   
   paying taxes   
      
   Jordan Press , The Canadian Press Published Thursday, September 10, 2015   
   4:47AM EDT    
      
   EDMONTON -- Liberal Leader Justin Trudeau is coming under fire from the group   
   representing small businesses in the country for saying the wealthiest   
   Canadians were using small business tax rates to reduce their own tax bills.   
      
   Trudeau, however, isn't backing down from the comments that have angered and   
   perplexed many small business owners who, just this week were told the   
   Liberals backed a plan to reduce their tax rate -- an issue that could sway   
   how they vote in this election.   
      
   "As the largest small business group in Canada, we see no evidence that the   
   small business rate is being used by so-called wealthier Canadians to save on   
   their taxes," said Dan Kelly, president of the Canadian Federation of   
   Independent Business.   
      
   The federal parties have courted the small business vote, promising to reduce   
   their tax rate to nine per cent from 11 per cent. Small business groups have   
   long advocated for the move after watching the federal Conservatives cut   
   corporate tax rates over    
   the past 10 years.   
      
   Trudeau said his party would follow through on that promise if elected Oct.   
   19, but confused business owners with comments in an interview with the CBC,   
   which aired Tuesday night, that seemed to suggest many were using the reduced   
   tax rate to avoid    
   paying their fair share of taxes.   
      
   Trudeau seemingly doubled-down on the comments when pressed about them in   
   Edmonton on Wednesday, saying that several studies have shown that more than   
   half of small business owners are "high net worth individuals who   
   incorporate...to avoid paying as high    
   taxes as they otherwise would."   
   In that group are doctors and lawyers, groups that may find themselves   
   squeezed by the policy Trudeau loosely outlined this week.   
      
   "We want to focus on helping small business owners who are working hard, who   
   are creating jobs for members of their community and serving their community,"   
   Trudeau said. "We are committed to evidence-based policies and I will make no   
   apologies for that."   
      
   Kelly said his organization's data suggest four-fifths of Canadian   
   incorporated employers earn less than $100,000 per year, and almost half earn   
   less than $50,000.   
      
   "When you include the self-employed, incomes are even more modest. Most   
   teachers make more," he said.   
      
   The comments drew the ire of Trudeau's political opponents as Conservative   
   Leader Stephen Harper chided Trudeau for believing that a large percentage of   
   small businesses were "tax scams," while the NDP called on Trudeau to   
   apologize for his comments,    
   arguing he was smearing small business owners as being tax cheats.   
      
   The issue is likely to continue to dog Trudeau on Thursday as he campaigns in   
   Vancouver, but Trudeau didn't seem concerned that his political foes would use   
   his comments to chip away at his rising poll numbers.   
      
   "One of the things I have been consistent in throughout my tenure as leader is   
   an approach that actually doesn't worry too much about how my opponents might   
   choose to attack me on a given statement," Trudeau said.   
      
      
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