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Liberal Response to the Tax Grab of the Century

Liberal Response to the Tax Grab of the Century

Liberal Response to the Tax Grab of the Century


From: Kent.Hehr@parl.gc.ca [mailto:Kent.Hehr@parl.gc.ca]
Sent: Thursday, August 31, 2017 6:53 PM
To: Rob Carlson
Subject: RE: Concerns over federal tax proposals

Rob,

Thank you for writing to me about the consultations on tax planning using private corporations – a consultation that is currently underway. It is always a pleasure engaging with my constituents – open dialogue is a vital part of my job.

Firstly, small businesses form the backbone of our communities. As a government, our middle class tax cut and infrastructure investments will create good jobs and put more money into the pockets of middle-class families. Our economic agenda is based on the notion that when you have an economy that works for the middle class, you have a country that works for everyone. Through the middle class tax cut and the enhanced Canada Child Benefit, we’re putting more money directly into the pockets of middle-class families. That’s also why we are making smart, necessary investments in things like innovation, transit, housing and green infrastructure – investments that will create good jobs and help our communities thrive. Together, these measures will help create new opportunities and strengthen domestic demand – a key factor in most small businesses’ success.

Our government is working to create an economy that works for the middle class, and where business – large and small – have the confidence to invest, grow and create good jobs. Unfortunately, when some people pay less than their fair share in tax, it undermines these efforts.

We are taking the next step to address tax planning strategies and close loopholes that are only available to some – often the very wealthy or the highest income earners – at the expense of others. Our goal is to build confidence in our economy by closing tax loopholes, while ensuring that companies continue to benefit from Canada’s highly competitive tax regime.

Our government is consulting Canadians on proposals to address tax planning strategies involving private corporations. The Minister of Finance is the lead on these consultations, which conclude in early October. You can find this link at the end of this email.

Since coming to office, we have taken clear action to support Canadian businesses, the drivers of growth and creators of good, well-paying middle class jobs. We have made critical investments in our infrastructure, and are supporting innovation throughout our economy. We launched the CanExport program to help small and medium-sized businesses expand to new markets around the world. And we have ensured that Canada continues to have the lowest small business tax rate in the G7.

Budget 2017 is the next step in our plan to deliver stronger, more inclusive growth for Canada’s middle class and those working hard to join it. The new budget will deliver simpler, more efficient and more coordinated support to Canadian entrepreneurs to help them scale up here at home. These are the hard-working Canadians who are creating good jobs for the middle class and helping grow our economy for the long-term.

Furthermore, each year the BDC, Canada’s only bank dedicated to small businesses, supports more than 42,000 entrepreneurs with financing and expert advice, while the Canada Small Business Financing Program guarantees thousands of small business loans made by Canadian financial institutions.

These efforts are having an impact. Canadians are among the world leaders in the number of companies started, per capita. In the past year, the Canadian economy has created more than 300,000 new jobs. The IMF has praised Canada’s economic model and predicts we will lead the G7 in growth this year.

In fact, just the other day I read in the Financial Post that Canada’s economy grew by 4.5% according to Statistics Canada. This is the best start to a calendar year since 2002. (You can read this article at this link, here: http://business.financialpost.com/news/economy/newsalert-canadas-economic-growth-higher-than-expected-in-second-quarter-2)

The potential changes being discussed as part of this consultation will maintain this advantage and will not impact Canadians’ ability to invest in and grow their business.

Neighbours who earn the same amount of income should be paying the same amount of tax. Our goal is to build confidence in our economy by closing tax loopholes only available to some, while ensuring that entrepreneurs, small business owners and companies of all sizes continue to benefit from Canada’s highly competitive tax regime. To ensure that we do this fairly, we want to hear from you. Have your voice heard by visiting the Department of Finance’s consultation website at:

http://www.fin.gc.ca/activty/consult/tppc-pfsp-eng.asp.

Consultations will conclude in October.

For more information on the programs and services available to Canadian businesses, please visit www.Canada.ca/Business.

Thank you again for writing to me, and sharing your perspective. I am proud to be your Member of Parliament, working for you, representing your concerns in Ottawa.

Sincerely,

Kent Hehr, MP

Calgary Centre

 


From: Rob Carlson
Sent: August 31, 2017 1:27 PM
To: Hehr, Kent – M.P.
Subject: Concerns over federal tax proposals

Dear Kent Hehr M.P.:

I have been educating myself about the new tax legislation proposed by the Federal Government on July 18th, 2017, and I am deeply concerned. The proposals are essentially punitive to small businesses – the lifeblood of the Canadian economy. I don’t believe that tax-grabs from Canadian families of up to 93% are fair.

These proposals will compel many small business owners to close or relocate their operations from Canada. They will kill jobs in our community. I’m worried that the loss of Canada’s brightest talent, including doctors, engineers, and tech entrepreneurs, will cause lasting harm to our economy.

  • Are small businesses valuable to the Canadian economy?
  • Does starting a business entail considerable risks and costs?
  • Why should businesses take those risks?
  • Do tax policies change behaviour? And tax policies of alternative countries?
  • In a punitive business environment, where will productive employment come from?
  • With the prospect of 60%-110% tax rates, why would a business choose to grow in Canada?

The seriousness of these proposals will weigh in on my vote in 2019. I implore you to represent these concerns for the sake of our country. Each day that passes under the threat of these proposals wreaks more damage to businesses.

These articles (and many others) raise valid concerns from experts and those affected:

Rob Carlson, CA, CPA

 

 

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