Very well stated - unfortunately very few people are recognizing your (and many other small business) situations, including being ineligible for employment insurance, having to pay for your own health insurance and disability insurance (at very high rates because the business is too small to qualify for discounted insurance rates), no company pension plans ... what typically is left in a small business (passive investment) quite often covers periods where there is no income / when work is not available or having to be off sick ... the income sprinkling may be an issue with the very high end businesses - it is not something that is abused by small businesses typically as they follow the rules ... the people with the most money are more likely to be the ones who abuse the rules ...