Morneau aims to appease critics
OTTAWA — Finance Minister Bill Morneau will unveil changes Monday aimed at mollifying the many critics of his controversial small business tax reform proposals, hoping to tamp down a political wildfire that has scorched Justin Trudeau’s Liberal government.
The damage control effort will begin with a special briefing early Monday morning for Liberal backbenchers, some of whom have been among the most vocal opponents of the measures.
Sources, speaking on condition of anonymity because they weren’t authorized to speak publicly, say Morneau wants to demonstrate to anxious Liberal MPs that he’s heard their concerns about his tax reform plan and is addressing them.
The proposed reforms were intended to put an end to measures which the government contends have allowed wealthy individuals to use incorporation as small businesses to unfairly reduce their income tax burden.
They triggered an angry backlash from doctors, lawyers, accountants, shop owners, farmers, premiers and even some Liberal backbenchers, who maintained the reforms would hurt the very middle class Canadians that the Trudeau government claims to be trying to help.
The changes are expected to ensure the reforms are targeted more clearly at the wealthy.
They’re also expected to address concerns that the reforms will disproportionately impact women, inhibit the ability of small business owners to save for a rainy day and make it impossible for farmers, fishers and others to pass their businesses on to their children.
Morneau has acknowledged changes are required to address some of the concerns raised and to ensure there are no unintended consequences.
Speaking briefly Friday outside a meeting of the International Monetary Fund in Washington, Morneau referred to Monday’s caucus briefing as “an important discussion.” He referred several times to continuing the discussion, suggesting that whatever he announces Monday won’t be the end of the story.
“I’m going to continue this discussion. We’re going to talk about what we think is important and that is that we get it right,” he said.