Compton wants hearing on proposed tax changes

Opposition Finance Critic Darlene Compton wants a legislative standing committee to hear from Island business and professional groups about proposed federal changes to how small businesses are taxed.

She says many small business owners will be affected by the changes, which are being panned by a industry associations across the country.

“From new startups to established family owned businesses, small businesses are a powerful engine for our economy. That’s especially true here on Prince Edward Island where we have a high number of small businesses in sectors like tourism, farming, fishing, IT and retail,” Compton said.

“The proposed changes to how small businesses are taxed would have wide-ranging economic impacts, so I think it’s important for us as MLAs to hear directly from Island groups and sectors that could be affected.”

The federal government has proposed changes to the way that small businesses are taxed that could see significant changes to the tax burden of small businesses, particularly family-owned businesses.

The changes are designed to close loopholes that the Trudeau government says amount to unfair tax advantages for wealthy small business owners.

A public consultation period on the proposed tax changes expires on Oct. 2.

In order to gain a better perspective on potential local impacts, Compton has written the Standing Committee on Education and Economic Development to request a hearing at the earliest opportunity where affected groups could explain how the changes would work in practice locally.

“I’ve also heard concerns that these tax changes could affect our ability to attract and retain health professionals, particularly young doctors. Recruiting and keeping doctors practising on the Island is already a challenge so the last thing that we want to see are tax changes that will make that job even tougher,” said Compton.