Canada And China Both Believe Patriotism Should Be The Highest Priority For Entrepreneurs?

I recently read an article on Bloomberg’s website entitled, China Tells Entrepreneurs They Must Put Patriotism Over Profit ( The Communist Party’s Central Committee and the State Council said in a joint statement late Monday that patriotism must be the highest priority in entrepreneurship.

In my opinion this policy is not so different from the proposed Liberal tax changes for Canadian private corporations.

Entrepreneurs are the driving force of the Canadian economy. They take risks; they fail; they put their family’s assets at risk. At times they succeed. When they do, it is often by bringing competition, innovation and productivity gains. They build businesses that create wealth. They hire employees and in so doing strongly support the economy. It is no secret that small businesses are a major contributor to the Canadian economy. Prime Minister Trudeau and Finance Minister Morneau would like to bring changes forward to the way businesses are taxed. 

Canadian Private Corporations and business owners should not apologize for being successful. They should not be shamed for increasing their wealth. They do this by strongly contributing to the Canadian economy and employing Canadians. The tax system in Canada has been built to encourage this success in recognition of the very significant contribution small businesses make to the economy. Tax revenues increase when businesses succeed, Canadians are employed, and consumer spending increases. The proposed policy would have the opposite effect.

The Canadian Centre for Policy Alternatives says just 0.7 per cent of Canadian families are going to be impacted by the government proposal to not allow businesses to sprinkle income to other family members. It is true that many businesses do not reach a level of success that allows them to benefit from certain tax advantages, but all business aspire to be successful and hope to take advantage of those benefits. They contribute to motivate businesses to be successful.

Canada is not China. By and large Canadians believe in free markets and a free economy. We should celebrate successes and encourage entrepreneurs to incorporate. If encouraged to do so with tax advantages, many will fail along the way but each business owner will be willing to take the risk in order to succeed. They will contribute to employment and economic gains. And yes, they may get richer but so will those who now have jobs thanks to those who took the risk.

The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.