Best Way to Save Money, Pay Less Tax
I am extremely honoured to announce that we plan to work with Money Talks over the next 8 months to help people learn about a legal tax strategy to save more money by paying less taxes. I’m quite concerned about government tax policies that promote the idea that 1% of the population should be able to subsidize the remaining 99%. No wonder why governments have seen dramatic drops in revenue from personal income, their strategy hurts the small business owner and the overall economy. As I have said in the past, the 1% notion is absurd. There are approximately 270,000 Canadians who would qualify for that category (StatsCan “High-income trends among Canadian tax filers, 2015”). Imagine the city of Saskatoon subsidizing the rest of the country. The math and the premise simply don’t add up.
What do we get for our PM’s Robin Hood philosophy? You get government that want to tax you more, make it difficult to run a business and create policies that choke our economy. What the Libs and the Dippers fail to understand that poor economic policies do not help poor people.
So who are the 1% when it comes to income?
They are the people who earn more than $250,000 per year. It sounds like a lot but when most of these people are professionals or small business owners, they usually don’t qualify for EI, have no gold-plated pensions and work a lifetime to hopefully sell their business to use as their pension when they retire. If the government takes $125,000 for income tax, the $125,000 left over isn’t much to live on and create a nest egg to retire based on the risk. To add insult to injury, your spouse can no longer draw a dividend from the business as it is more punitive than taking income by using a T4. Another negative consequence is if you have been using dividends for your family and now begin to use T4 for income, they will receive less payment in retirement from CPP due to their lack of T4 income because you legally paid dividends throughout that time.
Unfortunately, they don’t stop at the 1%, they are now after the 5% which are people who earn more than $150,000 per year in income. This group gets taxed at 40% or more in most provinces. What do we get for our PM’s Robin Hood philosophy? You get government that want to tax you more, make it difficult to run a business and create policies that choke our economy. What the Libs and the Dippers fail to understand that poor economic policies do not help poor people.
How can you mitigate the Robin Hood philosphy?
At TriView Capital Ltd., we believe people must pay their fair share of tax and we feel we can especially help the Top 5% or any taxpayer that feel they pay too much. Over the next 8 months, we will show you some valuable ways to save money through some interesting tax strategies that you probably are not aware of. Here are three strategies which we will discuss between now and the end of the year:
- Maximize your registered funds
- Invest in opportunities that provide capital gains or return of capital than highly taxed interest payment investments
- Invest in little known provincial and federal tax credits that provide a way to invest in your local community by investing in innovative new economies
If you live in Alberta or BC, the government has created tax incentive plans to help create diversified economies by allowing residents to invest in their own economy. We will be holding city road shows in mid-November in Victoria, Vancouver and Calgary and we will make sure that MoneyTalk listeners and subscribers will have the chance to learn more about these tax effective strategies. If you are a small business owner or someone in the Top 5% of income earners ($150,000 or more), you’ll want to attend these events and make sure you bring your accountant!
Craig S Burrows, ICD.D
President & CEO, TriView Capital Ltd.