Finance Minister Bill Morneau is adjusting his tax proposals on passive income so only about three per cent of the “most wealthy” privately owned corporations will have to pay higher taxes.
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Morneau confirmed the changes today at a cafe in Hampton, New Brunswick.
The minister says the system will now allow a threshold of 50-thousand dollars of passive income investment annually.
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He says this will help small business owners put money away for retirement and parental leave, rather than as a “tax planning” strategy for the rich.