A Little Nudge in the Right Direction

Nudge Theory


Richard Thaler’s Nobel Prize-winning nudge theory is making headlines across Canada and around the world, but what is it and what are its practical implications?

Thaler’s theory proposes people can be encouraged to do what is best for them and society by making subtle policy shifts that create a default choice without forcing people to comply.

Nudge theory offers governments, employers, and other decision makers an innovative and easier way to create their desired outcome. For example, instead of banning or heavily taxing certain junk foods, governments could require grocery stores to display healthy options at eye level. Shoppers still enjoy the same freedom of choice and wide range of goods they always have, but are subtly encouraged to make healthier selections.

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Have Your Say

Upcoming Tax Reform


On Oct. 16, the federal government announced it would cut the small business tax rate to 9 percent from 10.5 percent by 2019.

While this is welcome news for most small business owners, it has failed to alleviate concerns about proposed changes to the way private corporations are taxed.

These changes are designed to target three common tax planning techniques often used by private corporations, including small businesses.

The first is income splitting.

Family-owned businesses often split income among members who share ownership for tax and succession benefits. The primary benefit of income splitting is allowing dividends to be paid to family members in a lower tax bracket.

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Protect Your Small Business from Online Criminals

Three Simple Steps


Cyber crimes targeting small businesses rarely make the headlines, but that doesn’t mean they aren’t a popular target for online criminals.

If anything, small businesses are a target of choice because, compared to large corporations, they typically have weaker cyber security and more accessible assets.

There are some simple steps you can take to protect your personal cyber security. Although most of them are common sense, it makes it more difficult for criminals to access your data, making you a less attractive target.

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The Loonie is Flexing its Muscle

Highlighting Interesting Points


We recently read an interesting commentary on the Canadian dollar by Dagmara Fijalkowski of RBC Global Asset Management. It highlighted some interesting points.

In just three months, the Canadian dollar appreciated approximately 10%, an uncommon feat that will impact the pocketbooks of all Canadians.

In June, the Bank of Canada predicted stronger economic growth and adjusted monetary policy to match, raising its key interest rate for the first time in seven years, to 0.75%. The market took notice, especially when the United States Federal Reserve chose to instead focus on its balance sheet.

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