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The federal government’s recently announced plans to reduce the small business tax rate and revise its proposed tax reforms are welcome, but more needs to be done to protect business competitiveness in Canada, according to the Timmins Chamber of Commerce. In direct response to ongoing advocacy by groups like the Timmins Chamber and the Canadian Chamber network, Finance Minister Bill Morneau announced yesterday that the government will step back from the full extent of its corporate tax proposals, as originally put forward for a brief consultation that ended Oct. 2. Morneau’s announcement indicated that the government intends to review its proposed plans around restricting income sprinkling, and to no longer pursue limiting the Lifetime Capital Gains Exemption, which would have made it more difficult to transfer a business to new generations of family members. He also announced the government’s plan to reduce Canada’s small business tax rate from 10.5 percent to 9 percent by Jan. 1, 2019. “We’re incredibly pleased to note that the federal government is responding to the forceful feedback provided by the Timmins Chamber, its members, and its partners, but much more still needs to be done,” said Jamie Clarke, president, Timmins Chamber of Commerce. “While the applaud the more balanced approach that the government offered in its announcements yesterday, its overall tax reforms will still negatively impact a broad range of entrepreneurs, and pose serious challenges at a time where we are already facing additional problems at the provincial level. We appreciate that the government is listening to our concerns, but there is still much work to do to ensure that any attempt at tax reform will protect – rather than punish – Canada’s entrepreneurs and competitiveness.” In partnership with the Canadian Chamber of Commerce network and the Coalition for Small Business Tax Fairness, the Timmins Chamber will continue to build on these changes by voicing the concerns of hundreds of thousands of businesses who will still be affected by the federal tax reform plan. Specifically, the Timmins Chamber is continuing to work with its national partners to push the federal government to do the following: Pause the current tax reform proposal process and launch meaningful consultations with the business community; Conduct an economic analysis of any reforms that the government proposes for Canada’s tax system; Undertake an independent, comprehensive review of the federal tax system, with a view toward fairness, simplification, and competitiveness. The Timmins Chamber and its national partners are working on a number of initiatives to achieve these goals and ensure that the voice of business continues to be heard. This includes the launch of a nationwide petition – available at www.tinyurl.com/ProtectGrowthPetition -- which urges federal Finance Minister Bill Morneau and Small Business Minister Bardish Chagger to pause their current efforts, and pursue a better plan that does not unduly punish entrepreneurs. The Chamber network is also continuing to communicate the specific concerns of small business by sharing their individual stories. The Timmins Chamber is in the process of reaching out to its 650 members to help them to tell their own stories via short videos; the Chamber will then share throughout the larger national network and social media to help raise awareness of the personal, direct impact that the proposed legislation will have on businesses in the community. These efforts build on the work already undertaken by the Timmins Chamber and its partners over the last several months since the corporate tax change proposals were first announced. This includes having submitted several joint letters to Finance Minister Bill Morneau (the most recent of which is available at www.tinyurl.com/Sept26TaxChanges), and encouraging Timmins Chamber members to send letters directly to Timmins-James Bay MP Charlie Angus to explain what these changes would mean for them. The Timmins Chamber was also able to help take action during the Canadian Chamber’s annual general meeting in Fredericton on Sept. 23-25. With more than 300 delegates representing more than 200,000 across Canada, the Timmins Chamber helped to support a policy resolution calling on the federal government to extend the consultation period for the corporate tax changes, and to revise its approach in a way that would not harm entrepreneurs; it passed with 98.8 percent support, meaning the Canadian Chamber will fight for that issue over the coming months. “Even with the newly revised changes, the federal government’s flawed proposals will punish those who have invested everything into their business, while making it much harder to survive in more difficult economic times,” said Clarke. “Our work on this file is just starting, and we look forward to continuing that work with our members, our national partners, and the federal government to help find solutions to build a Canada that wins.” -30- For more information, please contact:
The federal government’s recently announced plans to reduce the small business tax rate and revise its proposed tax reforms are welcome, but more needs to be done to protect business competitiveness in Canada, according to the Timmins Chamber of Commerce.
In direct response to ongoing advocacy by groups like the Timmins Chamber and the Canadian Chamber network, Finance Minister Bill Morneau announced yesterday that the government will step back from the full extent of its corporate tax proposals, as originally put forward for a brief consultation that ended Oct. 2.
Morneau’s announcement indicated that the government intends to review its proposed plans around restricting income sprinkling, and to no longer pursue limiting the Lifetime Capital Gains Exemption, which would have made it more difficult to transfer a business to new generations of family members. He also announced the government’s plan to reduce Canada’s small business tax rate from 10.5 percent to 9 percent by Jan. 1, 2019.
“We’re incredibly pleased to note that the federal government is responding to the forceful feedback provided by the Timmins Chamber, its members, and its partners, but much more still needs to be done,” said Jamie Clarke, president, Timmins Chamber of Commerce.
“While the applaud the more balanced approach that the government offered in its announcements yesterday, its overall tax reforms will still negatively impact a broad range of entrepreneurs, and pose serious challenges at a time where we are already facing additional problems at the provincial level. We appreciate that the government is listening to our concerns, but there is still much work to do to ensure that any attempt at tax reform will protect – rather than punish – Canada’s entrepreneurs and competitiveness.”
In partnership with the Canadian Chamber of Commerce network and the Coalition for Small Business Tax Fairness, the Timmins Chamber will continue to build on these changes by voicing the concerns of hundreds of thousands of businesses who will still be affected by the federal tax reform plan.
Specifically, the Timmins Chamber is continuing to work with its national partners to push the federal government to do the following:
The Timmins Chamber and its national partners are working on a number of initiatives to achieve these goals and ensure that the voice of business continues to be heard. This includes the launch of a nationwide petition – available at www.tinyurl.com/ProtectGrowthPetition -- which urges federal Finance Minister Bill Morneau and Small Business Minister Bardish Chagger to pause their current efforts, and pursue a better plan that does not unduly punish entrepreneurs.
The Chamber network is also continuing to communicate the specific concerns of small business by sharing their individual stories. The Timmins Chamber is in the process of reaching out to its 650 members to help them to tell their own stories via short videos; the Chamber will then share throughout the larger national network and social media to help raise awareness of the personal, direct impact that the proposed legislation will have on businesses in the community.
These efforts build on the work already undertaken by the Timmins Chamber and its partners over the last several months since the corporate tax change proposals were first announced. This includes having submitted several joint letters to Finance Minister Bill Morneau (the most recent of which is available at www.tinyurl.com/Sept26TaxChanges), and encouraging Timmins Chamber members to send letters directly to Timmins-James Bay MP Charlie Angus to explain what these changes would mean for them.
The Timmins Chamber was also able to help take action during the Canadian Chamber’s annual general meeting in Fredericton on Sept. 23-25. With more than 300 delegates representing more than 200,000 across Canada, the Timmins Chamber helped to support a policy resolution calling on the federal government to extend the consultation period for the corporate tax changes, and to revise its approach in a way that would not harm entrepreneurs; it passed with 98.8 percent support, meaning the Canadian Chamber will fight for that issue over the coming months.
“Even with the newly revised changes, the federal government’s flawed proposals will punish those who have invested everything into their business, while making it much harder to survive in more difficult economic times,” said Clarke. “Our work on this file is just starting, and we look forward to continuing that work with our members, our national partners, and the federal government to help find solutions to build a Canada that wins.”
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For more information, please contact:
Nick Stewart Manager of Policy, Research and Communications Timmins Chamber of Commerce [email protected] | (705) 360-1900