The small business tax changes being proposed by the federal government have been hailed as the largest tax changes in Canada in 45 years.
They might be the most poorly explained and executed tax changes in this country’s history.
The Estevan Chamber of Commerce hosted an informational luncheon on the controversial changes last week. A couple of speakers from MNP addressed the three main changes, and how they might impact local businesses.
They also answered questions from the audience.
The duo did a good job of providing as much information as they could to the audience, but it would have been nearly impossible to explain everything and answer all of the questions within the one hour that was allotted.
It’s still astounding that the Liberals are pressing forward with these changes. This is the party that claims to be the champions of the middle class. It’s a party that has always enjoyed strong support from small business owners.
Most small business owners aren’t raking in large sums of money. They make enough to keep their businesses open, pay their employees a competitive wage, reinvest into the business and support their family. They don’t get to spend lavishly. They don’t have the same benefits package that they offer their employees. They don’t get paid overtime, even though they often have to work long hours.
Yet the government still wants to bring forward legislation that leaves many of them pondering their futures.
It’s not just small business owners who stand to lose a lot. Farmers have been particularly critical of the changes because of how they will be affected.
It was noted at the MNP presentation last week that it would be easier for a farmer to turn over an operation to a friend or a neighbour, than to a family member. When that’s the case, you know something is amiss.
Saskatchewan and the other provinces in Canada have a proud history associated with family farms. Many farms have remained in the same family for more than a century. The government should be looking for ways to encourage farms to be owned by families, rather than discourage the practice.
Doctors, lawyers and many other professionals are also worried on how the new legislation will affect them.
The legislation has been poorly explained from the outset. So many people have questions on how it will affect them. The federal government claims it would impact only a small fraction of small business owners, but they have failed to alleviate fears of most entrepreneurs.
It doesn’t help that they decided to have their 75-day consultation period during the summer months, when farmers were getting into their harvest operations, and when many professionals and small business owners were on holidays.
It appears the Liberals are going to tweak the tax changes to appease some of the more frequent concerns. That’s an encouraging sign. In theory, their best move would be to scrap this legislation all together, and to look for ways to encourage entrepreneurship, rather than discourage it.
The demise of the small business tax changes would appease entrepreneurs and people in the middle class who will be hurt by these changes, but it would also represent a capitulation to the opposition Conservatives, who have been hammering the Liberals on this front for weeks.
And that’s why these changes won’t be scrapped.
