‘Detrimental to the economy’
Federal Conservative party deputy leader hears from 20 Island business leaders Friday on proposed tax changes
With consultations on the proposed federal business tax changes underway, Island owners had their views heard at a couple of meetings that began on Friday.
“It’s not one per cent of companies being impacted. It’s two-thirds of companies being impacted,” said federal Conservative party deputy leader Lisa Raitt, who met with 20 business leaders in Charlottetown at Murphy’s Community Centre.
“And, they’re a little frustrated and upset that, outside of the business community, people may not be understanding how big an issue it is. Because it’s hard to communicate and there’s a short period of time.”
The discussion also involved the impact the changes would have on customers, employees and residents and that “things will not be the same,” said Raitt.
“It’s important to tell the stories and allow people to understand.”
The proposed federal tax changes were outlined in a consultation paper released this summer. The proposal involves changes to the rules around income sharing or sprinkling from family members in a business, limiting the use of passive investments and converting business income (salary or dividends) into capital gains.
Raitt said the party’s position is to scrap the proposed changes.
“These are going to be detrimental to the economy in general and are going to kill local businesses and family farms. And, it’s too rushed.”
Rory Francis, president of the Charlottetown and Area Chamber of Commerce, also wants to see the proposed changes nixed and “go back to square one.”
Francis is part of a delegation from Charlottetown attending today’s Canadian Chamber of Commerce annual general meeting in Fredericton, N.B.
Francis said he wants to see “a comprehensive review of tax policy as it relates to small business and appropriate consultation with both the tax specialists that need to be consulted as well as small business with ample time for due process.”
He also said he wanted to see the federal government “come forward with a much improved set of proposals that do meet with what the Liberal government is apparently trying to achieve in terms of tax fairness. Because, that’s not what we see right now.”
The Charlottetown chamber is also hosting a town hall on the proposed changes on Sept. 29 at the Delta Prince Edward.
Raitt was scheduled to meet with doctors in Halifax today.
Consultations on the proposed tax changes are expected to wrap up Oct. 2.