This is what I like to call "magic math".  There is absolutely no substance and it's filled with vagueness - more like a PR smokescreen to buy time to go back to the drawing board and come up with a plan that makes sense. In the meantime, they are placating everyone by saying it affects hardly anyone. Therefore, "nothing to see here....move along". Opaqueness creates uncertainty for business decisions.

How is $50K passive income defined? What counts as "income"? What about unrealized gains? What about dividend income & the dividend tax credit? What about foreign dividends & the existing withholding tax? If Mr M. has a corporate holding company for a villa in France which does not generate any passive income....is that exempt? Should he be taxed heavily that he is forced to sell and put the money back into the operating company? What's good for the goose.....

Hold co's with investments are already taxed at the highest marginal rate every year. Tax integration is already in effect.