Since coming to power, the Liberals haven’t met a tax hike that they didn’t like, especially for small businesses. Whether it’s the CPP tax hike, the job-killing carbon tax or their broken promise to lower the small business tax rate, the Liberals have jumped at every opportunity to take money away from small businesses, leaving them high and dry.
While the Liberals believe that small businesses are tax havens for the rich, Conservatives understand the positive impact that they have on our economy. Small and medium companies create four out of every five jobs and contribute almost $600 million to our economy. They’ve earned our support, and don’t deserve to be treated as tax cheats.
Recently, the Liberals announced their intention to change our tax system to prevent incorporated businesses from income sprinkling, holding passive investments, and converting income into capital gains. According to them, these are practices that the top one percent uses to pay fewer taxes.
When entrepreneurs decide to start a business, it isn’t an easy decision. In many cases, they’re betting all that they have. They face many obstacles, such as predicting a steady flow of income. Owners rely on a low business tax rate and the ability to invest their earnings into their company. By having this option, business owners can reduce risk by building an emergency fund, upgrade their equipment and facilities, keep up with technological advances, save for retirement, and create jobs.
Taking away these benefits discourages Canadians from starting a business, because the risk is too high without an emergency fund. It may also cause existing businesses to hire fewer staff, lay off employees, or reduce their wages since they’re no longer able to stabilize their income.
Not only could these changes affect small businesses, but also the people who feed us and protect our health: farmers and doctors. Most farmers are encouraged, by provincial laws, to incorporate, and by doing so are able to create emergency funds and split their income among family members. We know that farming is an unpredictable occupation. One harvest season could produce good yields, while the next could be devastating. By keeping taxes lower for farmers and allowing them to make passive investments into their farm, they’re able to plan for the unexpected and keep food prices at a lower and steady rate for us, the consumers. And as we know, on a farm, everybody in the family works it.
Many of our doctors’ offices are also incorporated and use the low business tax rate to invest in their practice in similar ways to small businesses. Without access to this, they can’t hire more staff to battle increasing wait times. Nor can they keep up with new diagnostic equipment and tools that help patients.
While I agree that our tax system should be fair and equitable for all Canadians, the changes that the Liberals are proposing could end up having devastating effects for Haldimand-Norfolk. Not only are small businesses the backbone of our local economy, but we are also a farming community and have a population that is ageing faster than the national average. We need access to reliable healthcare, affordable food and good jobs.
I urge you to stand up for our community and make your voice heard by visiting this link http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp.
Office of the Hon. Diane Finley