Sweeping U.S. personal and corporate tax reform. An overtaxed one per cent. Small business owners still seething over last summer’s controversial private corporation tax proposals. It’s truly anyone’s guess how the Liberals might (or might not) address these major tax policy issues in its third federal budget, set to be delivered on Tuesday.
To prepare you for the big day, here are a few issues on the table.
Corporate tax reform
On Jan. 1, 2018, U.S. President Donald Trump’s sweeping tax reform package took effect, dramatically changing the corporate tax environment. The U.S. nearly halved its federal corporate tax rate to 21 per cent from 35 per cent, allowed for the full expensing of investments in machinery and equipment, and introduced international tax rules that bring in a substantially more competitive business environment.