Business and Farm Groups Call To Drop Federal Tax Changes For Small Business.

[AgrivilleAdmin]

Business groups unite, call on Ottawa to drop federal tax changes for small business

Tax Coalition News

35 organizations from across the country have come together to form
the Coalition for Small Business Tax Fairness —a unified voice to oppose the federal
government’s tax proposals that would dramatically change the way incorporated small businesses
are taxed in Canada.

“These proposals, while intended to target the wealthy, will hurt middle-class business owners
from every sector of the economy. These are shop owners, farmers, doctors, financial planners,
homebuilders and trades in all sectors — the entrepreneurial families who are the backbone of the
economy and responsible for the majority of the job creation in Canada,” said Dan Kelly, President
of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Our
coming together highlights the urgency of combatting these proposals which, if legislated, would
signify the biggest changes to the business tax system in decades.”

"In ten years at the Canadian Chamber, I’ve never seen an issue that has generated greater concern
among our members. To make matters worse, allotting only 75 days for comment in the midst of
the summer holidays is not a consultation, it’s a stealth attack on farmers and family businesses.
The vast majority of our network’s more than 200,000 members across Canada are SMEs. They will
be contacting their MPs to say that these proposals must be scrapped and replaced with measures
that support Canada's entrepreneurs," added Perrin Beatty, President and CEO of the Canadian
Chamber of Commerce.

If implemented, the proposals will restrict small business owners from sharing income with family
members; limit certain forms of saving in the business, making the firm more vulnerable in bad
economic times and less able to innovate and grow; and change capital gains rules which could
make it more difficult for business owners to transfer their business to the next generation.

The 35 business groups — on behalf of the hundreds of thousands of members they represent —
have presented a letter to Finance Minister Bill Morneau asking the government to take these
proposals off the table and instead meet with the business community to address any
shortcomings in tax policy affecting private corporations.

Signatories of the letter include:

Advocis – Financial Advisors Association of Canada
Canadian Advanced Technology Alliance
Canadian Association of Farm Advisors
Canadian Association of Management Consultants
Canadian Association of Optometrists
Canadian Association of Radiologists
Canadian Bar Association
Canadian Cattlemen’s Association
Canadian Chamber of Commerce
Canadian Construction Association
Canadian Dental Association
Canadian Federation of Agriculture
Canadian Federation of Independent Business
Canadian Mortgage Brokers Association
Canadian Pork Council
Canadian Taxpayers Federation
Canadian Water Quality Association
Coalition of Ontario Doctors
Conference for Advanced Life Underwriting
Family Enterprise Xchange
Federation of Ontario Law Associations
Grain Farmers of Ontario
Grain Growers of Canada
Independent Financial Brokers of Canada
Mechanical Contractors Association of Canada
National Exempt Market Association
Canadian Home Builders’ Association
Canadian Horticultural Council
Canadian Institute of Financial Planners
Canadian Institute of Heating and Plumbing
Canadian Medical Association
Ontario Association of Radiologists
Ontario Medical Association
Restaurants Canada
Retail Council of Canada

[farmaholic]

Interesting list....kinda tells you which small business groups incorporate....that's ok.

Maybe if EVERYONE paid their fair share and instead of taxing the shit out of the people who invested alot of money and time in their careers or those who create wealth and take huge risks or those who provide jobs......

If you want more....invest more time or money or take more risk.

[LEP]

Posters on agriville have been worried about a few hundred in municipal taxes while the federal liberals are looking at jacking hundreds of thousands in new taxes from small business owners.

Got non farm children you were thinking of leaving a quarter to? The capital gain that is triggered upon transfer will now be fully taxable and due and payable.

Have a wife that is a nurse or a teacher? Good luck paying her a wage or dividend.

We will be filling out forms annually justifying why any family member receives any kind of payout from a small business Corp.

They must be paid a market wage for hours worked. So no more income splitting. And this is only a few of the aspects the proposed changes.

This has been described as the largest change to the tax system since 1971.

This is going to be a swift kick to the groin of all small business.

The liberals need more money to give out to countries around the world. Yay.

[SASKFARMER3]

I agree the Rm Tax is just that a Tax some RMS your paying more.

But the Useless piece of Shit from Ottawa is the Enemy.

You can't travel the world on tax payers dime and hand out money to every useless country and group and expect the country not to have to go to the people and get more money.

You idiots voted for this useless shit for brains and like Alberta were going to pay and pay big time.

What a useless place to work and create jobs only to have a useless clueless idiot piss it all away and break us as a country. HE is elected by the useless part of society who doesn't work and the elites who think they know how shit gets done but have never ever had their hands dirty working. ITs beneath them.

So again count the days till this imbecile is out of office. Because he will destroy this county.

[mcfarms]

[URL="http://www.producer.com/2017/08/tax-changes-impact-could-be-humongous/"]http://www.producer.com/2017/08/tax-changes-impact-could-be-humongous/[/URL]

Good article, Merle Good has captured the issue very well. There is a difference between resource based and income based corporations and this must be acknowledged and addressed in any changes to the tax code . I also do accept that there has been abuse of the system by some and this needs to be addressed but the changes as proposed fails in a very big and overly simplistic way to understand that not all businesses are the same . I feel this is a complete reflection of the boy wonders' and his rag tag crew of urbanites to even have a simplest understanding of this fact. ( or this industry in general I note the mindless move to look at deferrals)
Like any part of the law or regulations it's the ones that flout the system that screw the rest of us that are just trying to make a fair and honest living there are things that do need changing in the tax code such as the 90-10 test of active to inactive corporations which completely fails to address the realities of current land and machinery prices when used on farms that have a established book value on assets which has been purchased in the past at much lower values.
Please read

[URL="http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp"]http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp[/URL]

If you are an incorporated farm it really is in your best interest to do so to understand what is proposed.

[sofa.king]

Trudeau will kill this country I see he gave a mosque in newfoundland 46000.00 for security from hate crimes. What a dick head he has lots of money for that kind of stuff but he has yet to give the money he promised to fort mac for the fires last year. This shows where his priorities are and yet there are people so stupid and blinded by ideology that they support this clown (grassfarmer).

[Hamloc]

I am certainly happy to see this coalition of like minded business organizations getting together. I think our illustrious feeble minded leader is a little surprised at the push back. The unfortunate reality is there are many Canadians who will agree with the changes proposed by the federal Lieberals. It appears the greatest cost to farmers will be in generational transfer of assets. The appetite for revenue at all levels of government in Canada is becoming ferocious.

[fjlip]

Please sign, and email Neaumore, err Morneau....

https://www.taxpayer.com/resource-centre/petitions/petition?tpContentId=165&utm_source=Action+Updates &utm_campaign=812046f099-EMAIL_CAMPAIGN_2017_09_02_SmallBusinessTax&utm_med ium=email&utm_term=0_59605796e2-812046f099-34692277

fin.consultation.fin@canada.ca

Got an auto reply real quick....

"Thank you for participating by email in the Government of Canada’s consultations on tax planning using corporations. Your submission will be reviewed and will help inform decision making on this matter."

[farmaholic]

The Dentist office I use is a license to print money. This guy built a practice that must generate a pile of cash. The place is like an ant hill. But a well managed...tuned like a well timed and oiled machine. I tried to get an idea of how many people are in that office... front desk staff(numerous), dental hygienists, dental assistants, dental technicians, two dentists(one being the principle founder and brought in a younger guy--probably sell to him), support staff(instrument cleaners and such).... unbelievable amount of people and money. Now tax the shit out of the founding dentist for providing jobs for a multitude of people....SMART.

[perfecho]

Farma...think your example is off mark...tax is paid on profit, so those people will still be employed...it's the corporate profits that are being attacked....and IMHO, they should be. Our (my) companies took total advantage of them....so many sub companies, holding companies, etc...that we needed expert advice to map out the structure....all in the name of trying to keep more for ourselves. But...we... they....should be pay according to how much they make and not by their ability to hide it. Even Warren Buffet had remarks about how little tax he paid....he just took advantage of it because he could. Even on my farm, kids got paid even when they shouldn't....because we could.
The average Joe, has no write off's, cannot afford to put into holding companies and shuffle around to "protect"...business can write off gas to get to jobs....Joe can't....the "rich" seem to find many ways to keep more than their share...and Joe just keeps on getting his deducted from source, so the majority of people will be behind this......unlike corps.
In the 70's, Reagan started the change to corporate taxes, Canada had to follow suit...Corps use to pay a very high rate....so it was advantageous to put into employees, buildings, etc. When corps got taxed lower, they build up cash, bought out competition, pay extreme dollars to those in charge...even when they didn't deserve it....
IMO, the Corp tax raising is to force people to take money out personally...which is what should be done anyways, we should all be paying our fair share....even me.....because its right....;-)

[perfecho]

PS:....forgot to put my usual line in....."It's like weaned calves, they are used to sucking the tit, don't really need it, but bawl to get it back.!"

[wmoebis]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

[farmaholic]

I would think they aren't paying zero tax just reducing the burden and still paying more than "Average Joe". And with income sprinkling and splitting probably still more while providing income to their families that gets spent on education or injected into the economy otherwise.

[jensend]

The effect is that the corp is an entity unto itself just like a public corporation and employees of the corp are treated like other employees. Income from the corp is treated like other employees and shareholders. Income for services rendered is treated as employment income. Income beyond that can be dividends and would be treated like dividend income from a public corp. That's your investment income. It's one way of levelling the playing field between employees and self employed (which is essentially what a lot of corporate farms are).

[Oliver88]

Has the CPC or NDP said what they would do if they were in power? There is no doubt something has to change statis quo isn't working. I'm not in favor of Lib's proposal just like to see what other parties ideas are.

Why do you say the status quo isn't working?

Nobody wants these changes but sock boy and Morneau.