Crosby’s President Says Tax Changes Could Kill Jobs That Support the Middle Class
But Crosby’s president James Crosby is really worried that the federal government’s coming tax reforms for private corporations could halt that history of growth and potentially lead to the sale of a business owned and operated by the same family for five generations.
Most recently, it spent $8-million on a plant expansion and increased its workforce from 60 to 85 to manufacture products for one of the world’s largest food companies.
To undertake expansions like this, the company has what’s called a “passive investment” portfolio that allows them to have reserves of cash close at hand to makes these kinds of investments.
Finance Minister Bill Morneau has criticized the growth of portfolios like this, saying they’ve been set up in many cases to avoid paying high rates of tax. In order to encourage companies to invest this money right away rather than keeping it in these kinds of portfolios, Morneau proposed raising taxes on them, which financial experts across the country claimed could drive rates as high as 73 per cent.
Crosby objects to a policy like this that forces business owners to potentially make ill-timed investments.
“The best policy is one that leaves more money in the hands of entrepreneurs so we can continue to deploy our capital as we see fit,” he told a Senate committee that held hearings in Saint John recently.