Madam Speaker, the member across the way claimed that the goal is to remove advantages for some taxpayers that are not available to others. However, the solution put forward by the government with respect to the taxation of passive income actually would create new imbalances and new biases in favour of some taxpayers over others. For example, a multi-millionaire CEO of a publicly traded corporation would pay a total tax of 55% on passive investment earned within his or her company. A pizza-shop owner earning just $75,000 a year would pay almost 60% on passive investment earned within his or her company. That pizza-shop owner has no choice but to save within the company, because an RRSP has withdrawal rules that prevent him or her from pulling it out in case it is needed.
The result of these proposals would mean a higher tax for that middle-class pizza-shop owner earning $75,000 a year than for a super-rich multi-millionaire CEO of a public company. How is that neutral and fair?