Quite frankly as a small business IT owner (and CA) I struggle with income sprinkling.
The big issue for me is the inability to keep earnings in my corporation. The document released by morneau is a convoluted mess but this is my interpretation:
With the new rules any income left in the corporation will be taxed at 50pct. So if I earn $4000, my corporation will be $2000 tax. (This is why ALL corporations will be affected not just the rich ones) This will inhibit businesses from growing.
Your corp can get that tax back if it invests however it will have to wait until the next tax year to be refunded the tax. This is why business owners are saying it will impact cash flow. Banks are reluctant to lend to many small businesses especially if it's based on a tax refund.
Tax policy should not dictate business investment or growth!