I am talking about paying dividends - not salary. Current tax laws already forbid paying salary to someone who does not really contribute or paying in excess of market value for work done. Dividends are different because they reflect the VALUE of a business. As a shareholder , you take a chunk of value out of the business to pay yourself. Now Morneau considers that only "qualified" shareholders may take out dividends from something they legally own - or face confiscatory tax rates. This is incompatible with the norms of ownership in this country and will likely face legal challenges. Owning a business is not like owning a job. Tax laws must take this into account. That would not strike most business owners as inappropriate regardless of whether you or your kids are male or female or even if you/they self-identify as something else.