I’ve provided advice to a number of my clients regarding the proposed new tax laws, but want to encourage all Canadians to make their voice heard before Monday, October 2, 2017. If the changes to our tax laws go ahead, they will have a direct, detrimental impact on Canadian business, medical access and a subsequent negative effect on our economy.
The liberal government is planning to revamp taxation exemptions for Canadian-controlled private corporations (CCPC), which means income from self employment will be taxed at the same level as those paid from salaries, leaving business owners including doctors and farmers unable to survive.
Currently, corporate business income is taxed at a lower rate than personal income to allow businesses to pay for benefits or put income into holdings or savings accounts for future needs or a rainy day. The government says this is an unfair tax advantage for business owners. What they are not considering is the liability and risk that private businesses have and the expense of benefits for both themselves and their employees. The proposed changes also impact lifetime capital gains exemptions, limiting how much a farm or small business could inherit and a families’ ability to will their farm to future generations.
While there is still much to be learned about the impact, the little we do know is negative and far reaching for Canadians.
There is still time to have your voice heard by doing each of the following three things:
1. Email your local MP to voice your concerns as they represent your voice in parliament, https://www.ourcommons.ca/Parliamentarians/en/members
2. Contact the Department of Finance as they are looking for comments on the proposals firstname.lastname@example.org.
3. Along with fellow Canadians, sign one or both of these online petition.
"We are with you every step of the way."