This submission is a transcript of the testimony made by James F. Crosby of Crosby Molasses before the Standing Senate Committee on National Finance, on November 23, 2017 in Saint John, NB.Good morning. My name is James Crosby. I am the 5th generation family member to serve as president of Crosby Molasses Company. My great, great, grandfather founded Crosby’s in Yarmouth, NS in 1879. Less than 1% of businesses make it this far. I am very proud of our history and the opportunity to work with my father and brother every day.
The Atlantic Provinces have a disproportionate number of multi-generational family businesses. These entrepreneurial success stories are the backbone and saving grace of our region. These proposals are causing our family to explore alternatives that would be devastating to our community. Would we be better off selling our business to a multi-national or foreign-owned entity? I’m afraid the answer to that question is YES. The treatment of passive income already puts us at a competitive disadvantage relative to public companies. These changes will make it worse. Who would find a 73% tax rate fair?
I fear for what Atlantic Canada would look like if family businesses like ours were made uncompetitive…were to disappear.
These proposed tax changes are a disaster. They will hurt our ability to grow, to create jobs, and to invest in our communities, like we have proudly been doing for the past 138 years.