Wrong.  The proposed changes turn a balanced system in one deeply unfair to small business owners.  More scary is how it will put a chill into potential entrepreneurs whom will face even greater obstacles in trying to establish a company and make a living at it.  It will incentivise such folks to instead seek public sector employment which comes with grossly fat compensation and tax advantages compared to small business owners today!  Morneau just hasn't weighed the cost of owning a small business in all the ways such owners get screued by the goverment out of things that employees get - like stat holiday pay, paid days off, maternity leave, EI protections, RRSP tax deferral, etc meanwhile we owners have to pay out of pocket for increasing onerous regulation costs, data security costs, and other regulation costs ad nauseum.  Bottom line is I will have to fire a full time employee making 90k/yr and bring in my spouse to work that job now to make up for the extra tax costs.