Banff-Airdrie, MP Blake Richards is imploring small businesses to speak up about significant changes the Liberal government is bringing forth that will impact small business owners.

Richards feels it was ill timing for the the federal government to bring out a package of reforms to small business taxation midsummer. "They put it forward in summer and a real short-time frame for people to respond to this so called consultation."

While the Liberals feel the changes will make things more fair, Richards, feels the impact on small businesses will be detrimental. "The idea of the changes is they are going to make it more difficult for small businesses in a few different ways. One, when you're passing a business down to a family member say on retirement, so particularly on farmers, this is going to have a huge impact on them in terms of capital gain exemptions. Then they have also made some other changes in relation to how they treat investments within a small business. They are also suggesting other changes that will essentially have a big impact on the ability for family members that share income or dividends within the company."

Richards, feels in a time when small businesses are needed, this really discourages and creates disincentive for people to stay in business or take a leap and open one. "I am really worried about it because are just sort of in a spot where things are starting to improve a little bit. There was a promise that there would be a 2% cut in small business tax rate which the Liberals promised they would honour that and then they broke that promise, a  carbon tax, and then provincially a minimum wage increase and all these things have such a big impact when you add up the consequences of them. Then to throw something like this on top of it, at some point it gets to where it makes no sense for someone to have a small business anymore and then what happens?!"

With small businesses employing millions of people across Canada, Richards, feels the government isn't thinking of the negative impact this could bring. "They just see small businesses as revenue generator and a way to get more tax money. But guess what?! You put people out of business and suddenly our country is hurting, our economy, people that are employed by small businesses are hurting and all this revenue you thought you were going to get...not going to happen."

Small businesses are contributors to the economy locally, create jobs for local people, and support a wide variety of organizations, associations and local community events that would not exist without their support.

Richards is hopeful citizens will speak up and voice their opinion before the October 2 consultation deadline. "Don't let the government win on this one, don't let them get what they want which is that you don't comment on this. You have to step forward and put your view in on this as it is the only way it's going to get stopped."

A template letter you can send to Richards is below:

 

Tax Changes Will Hurt Small Businesses

Dear MP

Intro paragraph

Over the summer, the federal Finance Department has made it clear that it intends to make the most sweeping changes to business taxes in 50 years.

From my perspective, as a business owner, I want you to know how this is going to affect my business. (Please share your businesses story into the space below)

e.g.

(This is an example that received by the Canadian Chamber; please update with your own impact story)

I am a tax partner in Thunder Bay, Ontario (but have practiced across Canada) and I grew up in a small business. In fact, my family’s business is now in its 3rd generation and is now run by my sister and brother. Many of your insights reflect my family’s reality in running a business. It is a family affair. I had no choice but to work in our family business starting at the age of 7 years old. I was not paid a reasonable wage, in fact, many of my hours working in the business were unpaid as my family struggled to make ends meet while they ran a business, and raised a young family and my father suffered with a terminal illness. When I turned 16, I was offered a job to work at Eaton at an hourly wage higher than what I was paid in our family business, but I was forbidden to do so by my father and uncle who relied on me to help the business survive as they could not afford to pay me what Eaton paid. Our family business struggled for many years and it was on the verge of bankruptcy multiple times. My family depended on me to help them make ends meet and the business to survive. I am not alone. The same was true of my sister, my brother, my cousins and my aunts and uncles. Today the business is very successful, but it came at a cost. We did not have expensive vacations, or even vacations by today’s standards at all.  My father would open the store on Christmas day to help the family that forgot to buy the Christmas turkey. My parents told me they could not afford to send me to university and that I would need to earn scholarships to do so. I attended university and worked in our family business at the same time. My sister and brother did not attend university. They ran the business with my mom after my father died at a young age. How would the government have measured our “contribution” to the success of our family business?  My T4 would have suggested that I made little or no contribution. Yet I know that to be false.

So that you have a snapshot of my business, here’s some information:

The number of people I employ:

The type of business:

I started this business in…

My customer base is… e.g. mostly local…

My supplier base is… e.g. mostly local/Canadian/etc.

Summary Paragraph

Nobody supports tax evasion or loopholes. But these changes will punish legitimate businesses like mine.

I am particularly upset because this government has said it is committed to providing new opportunities for SMEs to grow. My business and many others like mine are the backbone of many communities – my community included. Our businesses employ citizens; our businesses support local initiatives – everything from soccer teams to fundraising drives for refugee families. If these changes go through, our local businesses, including mine, will no longer have the capacity for these community activities. I understand that draft legislation is in place concerning these changes.

I urge the government to put these changes on hold to avoid hurting thousands of small businesses across the country and to have a broader, thoughtful discussion regarding the measures needed to stop those who use their businesses to avoid paying taxes.