There's always a trade-off between redistributive equity and consequences, inefficiency consequences, but I think in this case they would be minimal. The dividend tax credit applies only to dividends earned in unsheltered assets. Most people in the lower, middle, and even getting towards the upper income classes can, in principle, nowadays put all of their savings into sheltered assets, which even though some of them are held in Canadian corporations are not eligible for the dividend tax credit. The dividend tax credit for one thing is unfair because it only goes to people who are receiving dividends outside of sheltered assets.
I also think it's unnecessary. The rationale for the dividend tax credit is to compensate people for corporate taxes paid at source on the income that generated those dividends in the first place. But in a global economy like we have now with free movement of capital all around the place, it seems better to assume that corporate income taxes are not borne by shareholders. They're shifted to labour and other factors of production. The rationale for the dividend tax credit is not there; the fairness is not there. What only remains are the comments you made that it may give an incentive for these entrepreneurs either not to save or to put their money elsewhere. In my view, that's probably relatively minimal.