The embattled federal finance minister unveiled while in Hampton a tweak to the proposed tax changes that have stirred such controversy around the country aimed at the top earners.
Bill Morneau said that passive investments represent one of the biggest advantages enjoyed by the wealthiest members of our society and that the government will be introducing a threshold for passive investment income of $50,000 a year, which is based on $1-million in savings based on a 5-percent return rate.
“To put it in context, we estimate that right now there’s somewhere between $200-$300-billion in passive savings sitting in these private corporations, this is money that’s not being invested into active businesses,” says Morneau.
Morneau says that 97% of private corporations won’t see a tax increase on their investment income.
“We’ll make sure that income over the threshold is taxed in line with someone who takes home a paycheque every couple weeks, we understand that as we move forward we have to consider the past. We know that many people build savings and nest eggs under the current rules.”
Morneau says 85-percent of small businesses have no passive investment income whatsoever.
We listened and are ensuring that changes to passive investment are only targeted at the top earners, who see the biggest advantages. 2/
— Bill Morneau (@Bill_Morneau) October 18, 2017
Meantime, Morneau has asked the conflict of interest and ethics commissioner Mary Dawson for a meeting, after media reports that Morneau did not set up a blind trust. He says in the letter that he would be willing to move forward on any recommendations from her.
I’ve asked for a meeting with the Ethics commissioner – I respect her role and guidance. pic.twitter.com/lDzobxYHgT
— Bill Morneau (@Bill_Morneau) October 17, 2017
