text: Investing in a corp is just a tax deferral strategy like the RRSP, however the corp has no max and investments still retain their tax treatments, but no deduction. This money typically is invested in Canadian companies, for the dividend, and is  a small perk for the risk taking involved. The T4 employee takes no risk other than their time and have all the protections of the various employment law. An employer takes all the business, market, legal, financing, and employee risk. With this thinking the two should not be compared and should be treated differently as we live in a free market society and should encourage risk taking; because the more successful small businesses there are the more efficient a free market society becomes. Instead this will encourage  people to seek employment and centralize their risk to fewer companies. This leads to market inefficiency and can lead to income disparity. We need entrepreneurship and they need rewards to make the leap.