Conservative finance critic Pierre Poilievre used a pizza to explain that an Ottawa pizza shop owner would soon be turning over three-quarters of his investment income to the federal government.
“The average small business owner earns about $73,000 a year,” Poilievre, told the House of Commons last Monday. “When they save money for a rainy day or their retirement, they will be taxed at a rate of 73 per cent on their investment income as a result.”
There is a basis for 73 per cent relates to “passive investment” within a private corporation.
Under the Liberal proposals, a 73 per cent could be the highest effective tax rate that applies to the interest on money saved within a private corporation. With the number ranging from 70-74% across provinces.
For individuals lower down down the tax brackets in Ontario, the effective rate would gradually fall, from 72 per cent to 50 per cent.