Premiers Demand Answers
It seems Prime Minister Justin Trudeau problems with the recently proposed tax change are simply not going away.
As he sits down with the premiers next week, it’s likely the problems will continue.
This because the Premiers of Nova Scotia, Newfoundland and Labrador and British Columbia have all publicly expressed concerns with those changes recently.
Nova Scotia Premier Stephen McNeil says the final agenda for the premier’s meeting with Trudeau has yet to be agreed upon and said he expects the issue of the corporate tax reforms to come up.
McNeil told reporters in Halifax Wednesday that one of the real-world issues around not allowing private corporations to retain passive investments is that such a move hurts doctors and the capacity of other small business to invest in their growth.
“it’s imperative in our province that we allow that, so small businesses across this province continue to have their own capital inside of the corporation so they can reinvest,” he added.
The entire Conservative caucus, some Liberal MPs, and a few NDP MPs have also publicly expressed a concern over the changes which would:
- Restrict the ability of business owners to reduce their tax rate by sprinkling their income to family members.
- Put limits on the use of private corporations to make passive investments that are unrelated to the company.
- Limit business owners’ ability to convert regular income of a corporation into capital gains, which are typically taxed at a lower rate.
While many oppose these changes, the government has continued to champion them. Arguing that the current tax system creates two layers in which business owners are being unjustly protected.
With this topic being a potential 2019 election issue it will be interesting to see if the Prime Minister continues with these plans.