General Rate Reduction and Integration Theory

surf acoustic blues, koto boom bap, saxophone gnawa, mandarin hawaiian · 4:26

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Lyrics

[Verse 1]
When corporations earn their keep from business operations true
The government reduces rates to help the income flow right through
Small business deduction kicks in first, eleven percent they pay
But when the profits climb too high, the rates will shift and sway

[Chorus]
Integration, compensation, neutrality's the goal
Tax the corporate, tax the personal, but keep the burden whole
Rate reduction, income fusion, whether earned alone or shared
The total tax should be the same, no matter how it's paired

[Verse 2]
Active business income qualifies for lower corporate rates
But passive investment earnings face the refundable tax gates
The eligible dividend gross-up multiplies what shareholders receive
While dividend tax credits ensure no double burden they'll perceive

[Chorus]
Integration, compensation, neutrality's the goal
Tax the corporate, tax the personal, but keep the burden whole
Rate reduction, income fusion, whether earned alone or shared
The total tax should be the same, no matter how it's paired

[Bridge]
Canadian-controlled private corporations hold the key
To accessing lower rates on first five hundred grand they see
But aggregate investment income over fifty thousand earned
Triggers clawback mechanisms, lower rates get overturned

[Verse 3]
Refundable dividend tax on hand accumulates each year
From passive income taxes paid, creating credits clear
When eligible dividends get paid to individual hands
The RDTOH refunds flow back, completing what the system planned

[Chorus]
Integration, compensation, neutrality's the goal
Tax the corporate, tax the personal, but keep the burden whole
Rate reduction, income fusion, whether earned alone or shared
The total tax should be the same, no matter how it's paired

[Outro]
Perfect integration theory, imperfect in practice today
But striving for tax neutrality in every corporate way

← Small Business Deduction (SBD) | RDTOH and Dividend Refund System →