Madam Speaker, the member claims that a business owner can pay himself a dividend after only having paid 15% in corporate tax. We have a fully integrated system on the taxation of business owners. They pay 15% tax on their original earnings inside the company, and then they pay the rest of their marginal tax when they receive the money in the form of a dividend. Therefore, if their tax rate is 50%, they pay 15% inside the company and 35% outside the company. For the member to suggest that business owners are getting off with a 15% total tax rate on their earnings betrays a total lack of understanding of how our integrated tax system works. It spreads misinformation about the amount of tax businesses pay. Will the member not admit that we have integration in this country, and as a result, our small-business owners pay the same marginal tax rate at the end of the day as they would if they were taking the money in the form of wages?
In the House of Commons on October 3rd, 2017. See this statement in context.