MP Report – proposed tax changes

On September 23rd, I hosted a roundtable in Strathmore on the Liberal government’s proposed tax changes. I expected a big turnout, but we had a huge turnout.
The official consultation period on the changes ends on October 2nd, but I hope you will join me in continuing to press the government on this issue after that date. This matter will continue to be debated well after the end of the Liberals’ consultations. So we need to keep the pressure on the government.
I have heard from so many residents of Bow River that will be impacted by these tax changes – not just in-person, but through social media, emails and phone calls. They’re not big multinational corporations – they’re our neighbors. Most local business owners are middle class Canadians. Two-thirds earn less than $73,000 a year, and half of those earn less than $33,000 a year. The fact is that small business owners and farmers will be taxed twice on the money they are currently allowed to save within their businesses: once inside the company, and once when it’s withdrawn (e.g., for retirement). Big businesses won’t face that added tax burden.
The Liberal’s proposed tax changes will also have significant negative impacts on many family farm businesses. They take away tools farmers use to save for leaner years. If farmers want to keep the farm in the family, these changes could make it so much more expensive to pass the farm on to a family member than to sell it to a third party that it will be virtually impossible to do so.
Our communities are woven together by our local businesses. They employ our neighbours, they grow the economy, and they sponsor community sports and events. Farms and small businesses are not a method used by wealthy Canadians to avoid paying taxes, despite what the Liberals have said. The vast majority of local business operators don’t have pensions to fall back on. They don’t receive maternity leave or EI. Whatever money they can save helps them pay their workers during a bad year, or for retirement after a lifetime of work.
Ninety-eight percent of businesses in Canada are small businesses, and they provide seventy-one percent of private sector employment. They sustain our small communities – without them we’ll be driving to Calgary to buy a loaf of bread. They simply should not be targeted with additional tax burdens on top of what they already face.
If you operate a local farm or business, and would like to offer input on these tax changes, I would urge you to do so by emailing fin.consultation.fin@canada.ca and calling the Hon. Bill Morneau, Minister of Finance, at 416-972-4748.
Again, it is important that we keep the pressure on by letting the government know what impact these changes will have. I will be continuing to host a series of local roundtables on the changes through mid-October. I would encourage you to join me and make your voice heard.
As always, my office is available to assist you with any federal issues. I can be reached in Ottawa at 613-992-0761 or martin.shields@parl.gc.ca. My Brooks office can be reached at 403-793-6775 or martin.shields.c1@parl.gc.ca, and my Strathmore office at 403-361-2980 or martin.shields.c1B@parl.gc.ca.