Split in overall opinion on new corporation taxes

In the seventh wave of the Campaign Research Poll, a national online public opinion omnibus survey conducted among a sample of 1770 Canadians, equal proportions, one quarter, approve (24%) or disapprove (27%) of the federal government’s new tax rules for small businesses. One half, however, have no opinion (50%). Approval of the new tax rules overall (no specific measures) is highest among males (27%) rather than females (20%), in Alberta (29%), among Liberals (33%) and Bloc Quebecois supporters (32%) and among the wealthiest ($80K+ - 29%), Lack of an opinion is generally at the same level for all groups except in Quebec, where it is higher (60%) and among Conservatives, where it is lower (39%).While Liberals are more likely to approve (33%) than Conservatives (15%), a significant minority of Liberals don’t agree with their own party’s plan (18%).

PLURALITY APPROVES OF PROHIBITING ‘SPRINKLING’ OF INCOME

Respondents are asked specifically about each of the three measures contained in the package of new tax rules. The plurality approve of putting an end to incorporated earners “sprinkling” their income across family members (41%), about a third do not approve (32%). One quarter have no opinion (27%). Approval of this measure is higher among males (45%) than females (37%), in the Atlantic (48%) and in Alberta (47%), among Liberals (48%) and among the wealthiest ($100K to $250K - 47%).

PLURALITY APPROVES OF PROHIBITING PASSIVE INVESTMENTS

The plurality also approves (36%) of ending the practice of holding passive investments within the corporation, while a minority disapproves (27%). One third have no opinion (37%). This measure is especially popular with mid-aged voters (35 to 44 - 41%), males (40%) rather than females (33%), in Alberta (44%), among Liberals (44%) and Greens (43%) and among the wealthiest ($100K to $250K - 47%).

PLURALITY APPROVES OF BANNING CONVERSION OF INCOME TO CAPITAL GAINS

The plurality approves of a measure which would end the practice of converting regular income within the corporation to lower-taxed capital gains (39%), while the minority disapproves of this (28%). One third don’t venture an opinion (33%). This measure is popular among younger voters (25 to 34 - 44%), males (45%) rather than females (33%), in the Prairies (44%) and Alberta (43%) and among Liberals (49%) and Greens (48%), as well as, again, the wealthiest ($100K to $250K - 47%).

OPINION EVENLY SPLIT ON WHETHER CHANGES MAKE TAX SYSTEM FAIRER

Exactly one third say either these tax changes will make the system fairer (34%), less fair (33%) or don’t know (33%). Those who think the tax system will be fairer include the young (25 to 34 - 41%), males (37%) more than females (30%), in Alberta (43%), among Liberals (46%) and among the wealthy ($80K to $100K - 39%).

“It is interesting to note that popularity of the specific measures contained in this package of tax changes is higher than the idea of the tax change overall. Moreover, the public is clearly divided and still open to different narratives of the issue. There is ample opportunity for either side of the debate to capture the minds and opinions of the public” said Eli Yufest, CEO of Campaign Research. Eli may be reached at eyufest@campaignresearch.ca or at (647) 931 4025, ext. 109

METHODOLOGY

This online poll was conducted between September 8 and 11, 2017 among a panel of 1770 Canadian voters. A probability sample of this size would have a margin of error of plus or minus 2.3%, 19 out of 20 times.