Simcoe, ON – “Not only are small businesses the backbone of our economy in Haldimand-Norfolk, 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. The proposed Liberal tax changes could threaten this access, and have devastating affects on our community” said the Honourable Diane Finley, Member of Parliament for Haldimand-Norfolk.
Recently, the Liberal government announced their intention to change the tax system to prevent incorporated businesses from income sprinkling, holding passive investments, and converting income into capital gains. The Liberals have been claiming that these are tools used by the top one percent to pay fewer taxes. However, many small business owners, farmers and doctors will be directly impacted by these changes.
“These tax changes will impose intrusive new rules on family members working in their family businesses, make it costly and difficult for businesses to save for emergencies or downturns, and even threaten farmers’ ability to pass the family farm onto their children.
“When you add these tax reforms to the increased costs of the $15 minimum wage in Ontario and the jump in CPP contributions, I keep hearing about small businesses who are going to have to cut staff or hours just to stay afloat,” said Finley.
On October 2nd, MP Finley hosted a roundtable with local business owners to hear their concerns about these proposed changes. Local business owners, and local Chambers of Commerce and BIA representatives attended to express their concerns, and learn about how they could best pressure the Liberal government to change their proposal.
“Many people who attended the roundtable have family businesses, and have assumed all of the risk that comes with starting that business. They don’t receive EI, maternity leave, or a pension. Their employees are paid before they are, and everyone in the family works to make sure that the business is a success. The Liberals are making these changes without any compassion for recognition of these sacrifices.
Under the proposed tax rules, many small business owners could easily end up paying more taxes than salaried or hourly staff, and more than large corporations. That’s not fair to anyone,” added Finley.
Those who attended the roundtable were also concerned that this would be the last straw for many business owners, and as a result, Haldimand-Norfolk would see businesses close their doors and leave many residents without jobs.
“You can’t grow the economy by taxing the life out of the job creators, but this is exactly what the Government is doing with these tax hikes. These tax reforms are going to end up doing the most harm to those very people that the Liberal government says it’s trying to help,” said Finley