No debate does not mean end of tax talk

OTTAWA A Conservative bid for an emergency debate on the Liberal government’s controversial small business tax proposal was thwarted Wednesday, but that does not mean they — nor the public — are out of options for sharing their views.

“Parliament, and not the government, is the final authority on taxation,” Conservative finance critic Pierre Poilievre said as he called for a House of Commons debate on the proposed changes before consultations wrap up next week.

Deputy Speaker Bruce Stanton, a Conservative MP, ruled the request did not meet the criteria and turned him down.

The proposals, unveiled this summer by Finance Minister Bill Morneau, would eliminate small business tax provisions that the Liberals argue allow some wealthy Canadians to avoid paying their fair share.

That includes restricting the ability of business owners to lower their tax rate by sprinkling income to family members, even if they do no work for the business, and curbing the ability to convert regular income into capital gains, which are typically taxed at a lower rate.

The proposed changes would also limit private corporations from making passive investments in things like real estate or stocks.

They have sparked a revolt by doctors, farmers, small business owners and even some backbench Liberal MPs, who have spoken publicly about the complaints they have been hearing from their constituents.

Amid the ensuing uproar, the government has insisted they are listening to concerns and open to changes — with several sources suggesting they are open to going back to the drawing board.