From: Canuck57@nospam.com   
      
   On 22/03/2013 10:59 AM, Alan Bowler wrote:   
   > Today's Globe makes several statements that the change to   
   > the small business (non-eligible) dividend tax credit   
   > will hurt snall business owners.  However, the Globe   
   > seemed to omit any description of exactly what the change was.   
   >   
   > So.  Does anyone know exactly how the credit is changing?   
   > I'm interested because I own some AW.UN and some of its   
   > payout is classed as non-eligible.   
      
   Dividend tax credits are suppose to alleviate the double taxation on   
   earning from companies.  Taxed at source, and double taxed in the   
   shareholders hands.   
      
   NDP and other myopic know nothings say 15% corporate tax is low, but the   
   reality is that is only 1/3rd the taxes really paid in the company   
   shareholder cycle.   
      
   Corporations pay lots of EI/CPP/other employment taxes, property/utility   
   taxes and even GST/HST, duties, excise, tariffs and taxes you never   
   heard of.   
      
   They also pay income taxes at about 15%.   
      
   Then the shareholder pays income taxes on the dividends/gains.   
      
   The taxes compound and reduce the value of owning a company as if after   
   tax yields are below inflation+taxes then it isn't worth buying into the   
   investments.   
      
   Lets examine earns taxes out.   
      
   Company taxes might look like this:   
      
   $1.00 before any taxes   
   less 15 cents to corporate earnings taxes   
   less 7 cents for property/utility/HST/GST/duties/hidden taxes in materials.   
   12 cents in employment taxes, EI/CPP/WCB etc.   
   less less 40% of the remainder to the shareholders income tax.   
      
   Net yield of a dollar earned is only 30.6 cents.   
      
   Dividend credits try to normalize this to lower the taxes, but in fact   
   is a hidden ruse as unless your in the right low tax bracket, the   
   dividend credits are far smaller than is what is needed to compensate.   
   The reality is company earnings see at leat 50% tax rates.   
      
   And the dividend credits phase out pretty quick depending on how much   
   your taxable income is.   
      
   In the end it is about government greed and deception.   
      
   And above is before spend side taxes.   
      
   Most of everything we do, services, consumption has at least a compound   
   50% tax rate or higher.   
      
   Property/utility taxes, you earn $10,000, pay $4000 in EI/CPP/income   
   taxes to spend $6000 on taxed property/utility taxes for a 100% tax rate   
   on income/spend.   
      
   For a dental cleaning, you earn $320, less $120 in taxes for a $200/hr   
   cleaning of which at least half goes to government levels of one or   
   another, and downstream supplies costs with government taxes, the   
   hygienist maybe get $$70 after tax for hygienist, receptionist and   
   doctor.  You in fact earned $320 for $70 of real services.   
      
   Government loves this deception.  Brainwashed from birth/G-12 to never   
   question how this really works and how government spends it makes   
   Canadians easy sheeples to lead.   
      
   The reality is only big gov'mint, their baker, GM, Air Canada and others   
   just suck Canada dry.  And why it is so hard to get ahead economically.   
      
   The real danger now is taxes and inflation of excessive electronic   
   counterfeit for debt is controlling inflation by depression.  A huge   
   stability bubble that could burst at any time.   
      
   Its all about statism and government greed.  How much money can back   
   room corrupt get from you and how little government politicans, unions   
   and corrupt can do for it.   
      
   You are an economic slave of state.   
      
   But hey, NDP just play their part in the deception, victimizing   
   companies as if they don't pay taxes.  They pay more than any low IQ NDP   
   knows.  Just a pandering party appealing to peoples stupidity and envy   
   of others.   
   --   
   Liberal-socialism is a great idea so long as the credit is good and   
   other people pay for it.  When the credit runs out and those that pay   
   for it leave, they can all share having nothing but debt and discontentment.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)