Quote:
Originally Posted by darklord700
The article compares a dividend income of say $40K to a masseur earning $40K; and that the masseur is being taxed higher becasue dividend income is sheltered partly by DTC. That's not fair as the company has already been taxed once before paying dividends and that's why we have the DTC mechanism.
As far as $40K capital gains vs $40K salary, the government wanted to incentivize investment and so capital gains is 50% taxable or gave you the life time capital gain exemption before. Also the use of capital losses are very restrictive so it's not fair to compare the more beneficial capital gains treatment to salary tax as well.
|
Right and that all makes sense to me. I think that it would make sense to Turner as well? I guess you lost me somewhere then because I'm not sure what your point is that you disagree with?
I know earlier in the thread you felt that the TFSA isn't quite as good as people think because you don't get the DTC, but I would take the tax free dividends over the DTC anyday. Maybe that's where I lost what you're getting at?