The correct way to look at passive income is that it is like a giant RRSP.  After corporate taxes (which are lower than personal taxes), the individual can invest the higher capital for potentially greater returns, BUT, once it enters the individual's hands, it is subject to income tax (just like the RRSP).  It is an individual tax deferral mechanism just like pension funds and RRSP.  This can be used to fund a maternity leave or a retirement.  The difference is that while RRSP contributions are capped at 20% of income up to a max, there is no cap to passive income.

With these new proposals, passive income is going to taxed as if it is not in a shelter.  Pension funds are sheltered until withdrawal.  That is why it is unfair to eliminate the tax advantage of passive income while continuing the tax advantage of pension income.  Both are achieving the same ends, but are not being treated equally.