Jim Messner, the founder of the more than 200 member strong Cochrane Business Network, has written a letter to Prime Minister Justin Trudeau, and it wasn't to exchange pleasantries with him.  

Messner was taking Trudeau to task over the Liberals proposed tax changes and headlined the letter, "Tax Changes Kill Small Businesses!"

Messner says, "After reviewing what I had seen that's being released by the federal government with regards to what's coming out with this proposed legislation and seeing that a lot of the Chambers of Commerce across Canada as well as a number of business groups that are coming forward and speaking out, the more I learned about it the more I felt, if I don't speak out I'm almost complicit with what the Liberal government's doing."

In July the government announced plans to close three loopholes which they say allow higher earning business owners to avoid paying more tax.  The changes target so-called “income sprinkling,” which allows a business owner to split his or her income among family members, whether or not they've involved in the business. The government also wants to change methods of converting income into dividends and capital gains, and limit passive business income taxation.

Small business owners have reacted negatively to the proposed changes, saying they would drive many out of business and Messner agrees. In his letter to the Prime Minister he says that, "very few business owners will survive this new tax law..."

Messner explains his concerns further, saying, "They keep talking about how they're going to tax the rich because they've taken advantage of being incorporated, however the fact of the matter is a lot of middle class people who have businesses are incorporated as well, really it only costs you $1,000 to $1,500 to get incorporated.   The majority of businesses are incorporated if they're smart and the government keeps trying to sell it where they're going after the rich where in fact they're going after the middle class business person."

Messner says the government isn't looking at the big picture.  "The big picture is this, if you own a small business, chances are you're either going to sell it at the end or turn it over to somebody in your family.  If you sell it at the end you're going to get taxed to death and if you turn it over to someone in the family as you retire out and your children take over the business, they're going to get taxed to death, or both of you."

Messner says small business is the backbone of the Canadian economy and makes up most of the businesses.  "Small businesses work long hours and they do it five, six, seven days a week in order to make a living.  They're not rich.   The average business person in small business makes under $50,000 a year."

Messner believes that when the Liberals say they're trying to close "loopholes" that they're trying to close something the government created.  "I think there's a play on words there, and 'loopholes' is one of them,  The advantages of owning a business and incorporating were developed by the federal government to stimulate the economy in this country, they weren't developed by small business people.  The fact that they say that people are taking advantage of that is the very reason it was designed."

The government's consultations on the tax changes are to end on October 2nd.  Messner thinks more businesses need to be involved in the process.  He also feels that the government needs to extend the consultations and form an all party committee to study the implications of the tax changes further and consult with groups like the Canadian Chamber of Commerce and the Canadian Federation of Independent Business before they finalize any changes.  He's not optimistic that the government will do that though.

"That wouldn't feed the situation that they're trying to feed and that's bring in more income, so that's why I don't think they'll do it.  I hope they'll surprise me."

Messner ends his letter to Trudeau by stating, "It's time to prove that you listen to the people.  I am just one more speaking up for them."