Coalition Opposes Federal Small Business Tax Changes
Prince George, B.C. – 42 organizations from across the country have come together to form the Coalition for Small Business Tax Fairness to present a unified voice in opposition to the federal government’s tax proposals the Coalition says would dramatically change the way incorporated small businesses are taxed in Canada.These proposals, while intended to target the wealthy, will hurt middle-class business owners from every sector of the economy says the Coalition.
If implemented, the Coalition says the proposals will restrict small business owners from sharing income with family members; limit certain forms of saving in the business, making the firm more vulnerable in bad economic times and less able to innovate and grow; and change capital gains rules which could make it more difficult for business owners to transfer their business to the next generation.
“These are shop owners, farmers, doctors, financial planners, home builders and trades in all sectors, the entrepreneurial families who are the backbone of the economy and responsible for the majority of the job creation in Canada,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Our coming together highlights the urgency of combatting these proposals which, if legislated, would signify the biggest changes to the business tax system in decades.
“In ten years at the Canadian Chamber, I’ve never seen an issue that has generated greater concern among our members” says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce “To make matters worse, allotting only 75 days for comment in the midst of the summer holidays is not a consultation, it’s a stealth attack on farmers and family businesses. The vast majority of our network’s more than 200,000 members across Canada are SMEs. They will be contacting their MPs to say that these proposals must be scrapped and replaced with measures that support Canada’s entrepreneurs.”
The Coalition has presented a letter to Finance Minister Bill Morneau asking the government to take these proposals off the table and instead meet with the business community to address any shortcomings in tax policy affecting private corporations.