Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

August 6, 2017 | Canada Looking to Tax Small Business 93%?

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

I have been warning that as governments move closer to this major event of a Sovereign Debt Crisis which begins next year with the start of the Monetary Crisis Cycle, they historically will ALWAYS, and without exception, bite the hand that has fed them all along for the object is not to help people or properly run the economy for the benefit of all, it because a driving force of them against us. Throughout history, there has never been one benevolent government that has ever surrendered power willingly for the good of the country. That has NEVER happened even once. Power has always had to be ripped from their grasp either by the people, an internal coup, or some foreign invader.

 

Yes, not every revolution has to be blood flowing down the streets. It will depend upon the military historically. In the case of Russia, the military did the honorable thing and stood-down. That is indeed an extremely rare event historically. From Byzantium and the NIKA Revolt to Tiananmen Square Massacre, the military has often first just slaughtered the people following orders. The German soldiers killing the Jews said the same exact thing – they were just following orders. That has certainly not been the case even recently as in Venezuela where this soldier is killing his own people while standing behind a barricade that reads: “If the order is against the people your honour is to disobey.”

More-often-Than-Not, the revolutions throughout history come about when the taxes of government simply break the back of the economy. We are reaching one of those moments as we cross the threshold into 2018. The Finance Minister of Canada, Bill Morneau, has announced that the government is now targeting private corporations and fundamentally changing the way businesses are taxed. The Canadian government is focusing in on income sprinkling, earning passive investment income in a corporation, and converting a corporation’s ordinary income into tax-preferred capital gains. Effectively, the Canadian government is looking at itself first with no consideration whatsoever for the people or the economy. It is always about them just surviving. As for democratic processes, they rely upon tell the ignorant that they will get a free lunch if they tear those who create jobs into pieces.

In Canada, the “income sprinkling” is where small business owners “sprinkle” dividends and capital gains among adult relatives. In other words, you cannot give your children any money whatsoever unless they work. So under socialism, you are not allowed to be charitable with your own family. This is what the new hunt for taxes in Canada is all about. Take this with the other two proposals for tax increases and the combination will send taxation on small business to potentially as high as 93%. Government never really cares about the impact of their proposals. It is always just about them. The question we will be confronted with which we will examine at the Orlando World Economic Conference November 3rd & 4th, 2017, just how far can society be pushed in various regions until we hit the reset button?

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

August 6th, 2017

Posted In: Armstrong Economics

Previous: «

Next: »

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.