Thank you for your question.
The numbers are quite small. My understanding is that 3% of businesses, about 750,000, are impacted, so it's relatively small. Because the threshold is quite high, it is quite out of reach for most small businesses. The broader issue is that the bulk of businesses are only earning $73,000 and under. That's the median: half are earning less than that, and half more. If you have a median income at that rate, and this passive investment is only for past investment—it doesn't apply to active income—you need a business with that income for that passive investment threshold to be meeting this criterion
So it's relatively small number of the businesses that are accessing the passive investment threshold. Canadians for Tax Fairness feels that the threshold could better serve Canadians if it were lower, at around $25,000, more on par with RRSP deductions. We would like to see that tightened up, because the data shows very clearly among small business owners, the bulk of it is in the hands of 10% of the top 1% of earners. This needs to be closed up to make it fairer.