Tell your MP that business needs more time. Businesses need more time to review the most complex tax changes in 50 years. Tell your MP to extend the consultation deadline beyond October 2, 2017.
Send a Message to Government
We urge all Atlantic Canadian business owners to contact their local MP and voice their opposition to this ill-conceived, hastily proposed, and economically regressive piece of legislation that will negatively impact the ability to do business in Atlantic Canada for years to come. We need legislation that fosters and encourages business growth in Atlantic Canada and supports entrepreneurs.
Please take a couple of minutes to register your voice on this critical issue. By clicking on link to your local MP they will receive a copy of this letter.
Why Sending This Letter is Important
On July 18, 2017, the federal government initiated a 75-day consultation on proposed changes to the taxation of privately-held corporations. Owners of small- and medium-sized businesses should be gravely concerned by the proposed changes since rather than simply close “loopholes exploited by the wealthy,” these changes will materially affect the financial status of all small business owners in Atlantic Canada.
In its consultation paper the federal government indicates its rationale for instituting radical changes is a desire to ensure the wealthier 1% provide a share of the personal tax base equitable to the tax burden borne by the middle class. With combined personal tax rates exceeding 50% of high income earners’, it appears they are really just turning their attention to the growing number of micro-businesses as a new source of increased revenue.
It is essential business owners not accept the Finance Minister’s assurances that the proposed legislation will not negatively affect the nation’s small businesses that provide jobs to more than 90% of the private sector. Tell your MP that business needs more time to review the most complex tax changes in 50 years and extend the consultation deadline beyond October 2, 2017. By clicking here you can access a list of resources that can be used to better understand how this initiative could affect you personally.
What it Means for Business in Atlantic Canada
In a nutshell, the proposed legislation, which in some cases has already been drafted, will:
- impose undefined and cumbersome restrictions on the distribution of corporate income;
- restrict the ability of businesses to accumulate savings for future investment or economic downturn within the corporation; and
- severely alter the financial outcomes of the transfer or sale of a business.
The government estimates increased revenues in the millions of dollars but provides no assessment of the cost of compliance or effect on the economy. Unless amended, the proposed changes in taxation of privately-held corporations will impact the bottom line and future security of all entrepreneurs. It is important all business owners take the time to consider how the changes will affect their ongoing operations, their future financial security, and let their politicians know that:
- more time and consultation in recognition of the substantial impacts of the proposed changes;
- the overwhelming majority of entrepreneurs are not tax cheats or evaders; and
- fair taxation include recognition of the personal and financial risks borne by entrepreneurs.