Mr. Prime Minister,
I would like welcome you and the Liberal caucus to Kelowna.
I trust your caucus retreat will be constructive and I hope you have some time to visit some of our nearby amenities and attractions.
I also hope you will have the opportunity to meet with local small business owners and I will explain why.
During my time in office as a Member of Parliament, I have not encountered any single issue that has more angered small business owners than the current tax proposals you are contemplating.
I believe it is important you understand why this anger exists.
You might recall during the last election, your Liberal platform promised to, and I quote directly; “reduce the small business tax rate to 9 percent from 11 percent”.
Flash forward to today and not only have you reneged on this promise but many small business owners feel that you have labelled them as tax cheats.
Your Liberal Government is implying that the amount of tax they pay is unfair and paying more tax to Ottawa will create fairness for those who are not self-employed.
Many small business owners find this offensive from a Government who promised something very different during election time.
Throughout this discussion I have repeatedly heard your Finance Minister talk about “misinformation” as if to imply that somehow small business owners do not understand what paying more in taxes really means.
This also offends many small business owners.
On the topic of misinformation, it is also very important to explain that when a small business owner pays themselves a wage, they do so at the exact same income tax rates that any other Canadian citizen does.
That is an important distinction.
In essence, the small business owner pays taxes twice.
The first time is when the small business owner pays tax on any profit, assuming there is some. All small businesses pay lower taxes on business income than personal income taxes. However don't overlook that all net income, once paid out in wages, is taxed again at the same personal income rates as all other Canadians.
It is also important to keep in mind that a small business owner has no Employment Insurance, no Canada Pension Plan, no taxpayer financed public sector pension or related benefits, no maternity leave benefits and no formal vacation pay system.
All of these expenses must be covered by the small business profits, again assuming there are some.
I mention all of these things to hopefully better illustrate why so many small business owners are taking such strong opposition to your proposed changes.
As I believe it is important to propose and not just oppose, I would like to offer a few observations.
Canadians understand we must live within our means.
Likewise, Canadians also understand your Liberal Government is running significantly larger deficits than promised and currently has no plan to return to the promised 2019 date for balanced budgets.
Canadians further understand either spending has to be reduced or taxes increased to pay for all of your spending.
Your Liberal Government has clearly decided increasing taxes is the solution. Rather than demonize small business owners under the guise of tax fairness, why not at least admit that your Liberal proposal is a tax increase? Recognize that small business owners are being asked to pay for this heavy burden.
Mr. Prime Minister, you often talk of recognition and respect and in my view it is time for you to show some for Canada’s small business owners.
Here's my question for Canadians:
What are your thoughts on raising small business taxes?
I can be reached at firstname.lastname@example.org or by calling 1-800-665-8711
9/6/2017 06:33:03 am
Well said Dan!
9/7/2017 08:53:30 pm
Dear Mr. Arnold, MLA, Honorable Bill Morneau and Prime Minister Trudeau:
9/8/2017 09:09:05 pm
I hope the nect election in 2019 i support all.small business thank you for being here
9/6/2017 07:13:32 pm
One of the issues the Liberals have with corporations is income sprinkling. Income sprinkling to a spouse or child is already covered in the income tax act and dealt with appropriately when applied. But lets have another look at income sprinkling! But this time rather than corporations, lets look at trusts? One of the major reasons for having a trust is to sprinkle income to the trust beneficiaries. This is totally allowed under the income tax act. So if we are going to treat everyone fairly, as the income tax act states, maybe trust beneficiaries should automatically be taxed at the highest marginal rates and the trust equity should be taxed additionally like retained earnings in a CCPC.
9/6/2017 09:39:44 pm
Very well written. Unfortunately the PM and his group of followers AKA gov't employees with all the benefits just hear that self employed business owners have these huge tax breaks they pay their wives - husbands - children etc to avoid taxes when they can't do this on their tax forms. No because they already have the golden job with all of the benefits we don't. But they cannot put 2 & 2 together.
Well said ... but the liberal party seems to have no respect for Canadian business , Canadian values or our once great Canadian lifestyle! justin trudeau and his band of theives have lied to us continually while doing their best to destroy Canada from with in !
9/7/2017 08:39:16 am
Well said, hopefully Justin will respond as he should !!
9/7/2017 06:16:17 pm
Very good letter. Supporting you and all small business owners.
9/7/2017 08:39:47 pm
When is the next election again ? not soon enough !
9/8/2017 11:02:12 am
Most wage earners have no idea how the payroll system works! They don't know that the employer matches the employees CPP deduction and pays 1.4 times the UIC deduction. These amounts are paid to Revenue Canada along with the income tax on a monthly basis. Depending on the company there might be pension plans, health benefits etc. that are paid out. All of this as well as PST, GST need to be submitted to the government before a business can think of paying any money to the owners! Kevin O'Leary made a comment that every P.M. should have to make payroll for 2 years before he takes office! Our federal government still hasn't sorted their own payroll system and how much is that costing Canadians? Trudeau needs to admit he might have made a mistake 'cause there are some people in the world who might be smarter than him!
9/8/2017 07:34:15 pm
Thank-you Dan! I am retired with a municipal pension from my job in the public sector. I am fully aware of how good I had it with fully paid benefits, maternity leaves etc.. I am opposed to these tax changes because I realize that small business owners are on-the-hook for all of these expenses not only for themselves but their employees as well. I also know that self-employed individuals pay not only corporate tax but personal income taxes as well. Going forward we are going to need to encourage innovators and creatives to step forward and take risks to deal with the challenges coming at us at a full gallop.
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Dan Albas is the Member of Parliament for the riding of Central Okanagan-Similkameen-Nicola.
Central Okanagan – Similkameen – Nicola