As Justin Trudeau’s new tax proposal continues to be attacked by small business owners everywhere, one thing is becoming clear.

We in Canada are beginning to accept a dangerous mentality in which business owners of all stripes, small or large are vilified.

While aiming to equalize the income of business owners and employees the Liberal party makes one bizarre point. That the business owner should be paid the same as the employee, and that this equalization of wages is both good for the economy and moral.

Now it could be possible that Canada with one of the highest post-secondary education rates and one of the largest public sector systems in the G7 could be biased towards to the idea of public or social labor.

Economic Well-Being

As many of us spend vast amounts of time surrounded by civil servants and reading Karl Marx it seems we rationalize that public systems produce income. Sadly this is simply not true, and goes against any semblance of a capitalist economy.

We accept that there is a place for public work, but only in such places where a private corporation could not adequately or fairly provide the service. This argument can be made in the case of energy producers, the military, and even hospitals.

Limited Innovation

But it is foolish to assume this follows through in all regards. The private sphere carefully manages profits and invests into future gains with what people are willing to pay, the public is consistently challenged to perform what every single user demands with a limited supply of cash. Here there is a problem, in the long-term, the public sector falls behind.

This aspect of technological loss also in turns reflects a loss of jobs, as an industry which cannot innovate cannot grow. Therefore by pushing for entrepreneurs to be paid the same, we are pushing for business to invest less, and in turn grow less.

Moral Argument

While the economic argument has been a powerful tool in the government’s attack on small business, the moral argument has perhaps been the most important. By focusing on “wealthy” Canadians using “loopholes” they remove the real stories that exist, and the real need for business to use these tax incentives.

For example, the Small Business Tax Force recently posted an interesting infographic displaying all the benefits small business lack when compared to public employees.

The organization also posted a series of articles aiming to bring a face and a story to this real problem.

Survival

By continuing down this path the Liberal party may lower their wild deficits, but they do so by cutting the legs of Canada’s business owners, and by limiting the potential for future business growth. Canadian business and business owners deserve better. They provide most jobs within the economy and drive the innovation engine that keeps Canada’s economy growing.

Canadian business and business owners deserve better. They provide most jobs within the economy and drive the innovation engine that keeps Canada growing.

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