Industry warning Liberals against tax reforms

OTTAWA — With its public outreach winding down, the Trudeau government received fresh warnings Monday from major industry associations about the negative fallout from its controversial tax-reform proposals.

Business leaders sent new letters to Ottawa insisting the proposed tax changes, which the Liberals have said are aimed at creating more fairness in the system, will cause considerable collateral damage in the economy.

The latest criticisms of Ottawa’s plan to change tax rules for private corporations arrived as the government’s 75-day consultation period on the proposals approached its deadline late Monday.

Finance Minister Bill Morneau has tried to address the outrage by insisting the government has been listening to the feedback and will make adjustments, if necessary.

But concerns have continued to pour in from angry Canadians from many different backgrounds, including doctors, farmers, small-business owners and tax planners.

One new message came from a group representing some of the country’s fastest-growing technology companies and industry investors. The Council of Canadian Innovators argued the proposals would restrict the ability of tech entrepreneurs to access capital that’s vital to growing their companies and creating jobs.

“It is vital that before any decisions on this file are made, the federal government meets with Canadian innovators to discuss solutions that do not hurt Canada’s job and prosperity creators in the tech sector,” said the letter, signed by CEOs representing entrepreneurs, venture capitalists and angel investors.

Canadian Manufacturers & Exporters, which represents more than 10,000 companies, also laid out its concerns in a letter sent Monday to Morneau that called the changes “significant, but flawed, piecemeal amendments.”

Morneau will discuss his plan with premiers today when they gather in Ottawa.