In fact, it clear the government did not deviate from its previously announced plan to bring the small business tax rate down to nine per cent by 2019. And there are no changes to personal tax rates or the capital gains inclusion rate.After proposing sweeping changes to the taxation of private corporations in 2017, cooler heads seemed to prevail, with the government opting for greater simplicity. Budget 2018 proposed two changes to limit the tax deferral advantages of earning passive income inside private corporations.Beginning in 2019, the small business tax rate will begin to be phased out when passive income earned in the corporation exceeds $50,000.
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