Premier Wade MacLauchlan wants consultations for tax changes extended
A number of other premiers have also expressed concerns, will be on agenda at ministers' meeting
The premier of Prince Edward Island is looking to get an extension on the consultation process for the proposed federal tax changes.
Wade MacLauchlan sent a letter to Finance Minister Bill Morneau, highlighting the "significant concern and uncertainty" in the business community.
There is significant concern and confusion in the business community.- Wade MacLauchlan
In the letter, MacLauchlan highlighted the Island as a region experiencing "tremendous growth" and leading the Atlantic region, as well as other provinces.
"Much of this growth is thanks to the entrepreneurial spirit, risk-taking, and confidence exhibited by our small and medium-sized business leaders," he wrote.
"For these economic leaders to remain confident and continue to invest and drive growth, they need to clearly understand the tax regime in which they will operate. Any confusion or unintended consequences of the changes will have a significant dampening effect on future growth of our economy."
'Significant concern and confusion'
Various groups representing small business owners, physicians and others have spoken out against the proposed changes.
Those changes would include how passive investments work for small companies, ending income sprinkling where revenue is distributed to family members who don't work for the company, and eliminating the ability to convert earnings to capital gains.
"The consultation process on the proposed changes to private corporation tax laws has shown there is significant concern and confusion in the business community as to the effects of these changes," MacLauchlan wrote.
"While proposed changes to tax systems always promote debate and discussion, my government has received a substantial number of inquiries from business owners who remain unsure as to the scope and impact of the proposed changes."
MacLauchlan also wrote in the letter to Morneau that small businesses are the "backbone" of P.E.I.'s economy.
A number of other premiers have expressed publicly that they have concerns about these proposed changes, a topic that will likely come up at the first ministers' meeting agenda, which will be held in Ottawa next Tuesday.
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