Mortgage Broker

Fall 2017

Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.

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CMB MAGAZINE cmba-achc.ca fall 2017 | 9 retrenched by awkwardly rolling back some of the measures contained in the tax proposal. Professor Jack Mintz refers to this as the "Great Leap Backwards," and believes that: "For now, the Liberal government's gambit has worked, at least in the sense that it has shied focus away from the original, flawed tax reform proposals and onto a misguided reduction in the small business rate." Even though the Liberals are concerned about the gap between personal and corporate tax rates, they have chosen to further widen it by reducing the small business tax rate to nine per cent and they will need to make up for lost revenue by increasing taxes elsewhere. While the tax rollback reverses some of the worst features of the tax proposal, Professor Mintz argues that "the paltry gains from this latest reduction in the small business tax rate will be offset by new taxes on investment income, income- splitting via dividends, and capital gains via surplus-stripping". Tax experts are now bracing for what they believe to be an even more complicated system of taxation, which will "boggle the mind." So yes, it is good for the government to recognize the role passive investment plays in business and retirement planning. However, tax accountants and other analysts will need time to review the entire package of changes to determine their actual impact on Canadians and small business. In the new year, we will also see how mortgage rule changes will impact borrowers, and the magnitude of any reverberations in the real estate market and the economy as a whole. Tax experts are now bracing for what they believe to be an even more complicated system of taxation, which will "boggle the mind."

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