P.E.I. finance critic requests special hearing on federal tax changes
CBC News | Posted: September 7, 2017 9:00 AM | Last Updated: September 7, 2017
PC MLA Darlene Compton says she's been hearing from concerned small business owners
Progressive Conservative finance critic Darlene Compton says she wants one of the legislature's standing committees to hold a special hearing to gather feedback on the federal tax changes.
Compton has sent a letter to the chair of the standing committee on education and economic development asking for an immediate meeting, given that federal feedback has to be submitted by Oct. 2.
Federal Finance Minister Bill Morneau has said the federal government wants to close three small business tax loopholes including:
- The curtailment of "income sprinkling," a method by which business owners shift a portion of income to family members, either through salary or dividends
- The curbing of "passive investment income," which the government describes as the investment of money left in a corporation, for purposes other than to invest directly in growth
- The conversion of a corporation's regular income into capital gains, which typically attract a lower tax rate
Morneau has said the government wants a tax system that is fair for Canadians.
- Small businesses, Trudeau government headed for autumn tax showdown
- Small business owners say they are unfairly targeted by proposed tax changes
But Compton says she's heard from a number of small business owners.
"People are really concerned. It's going to affect the bottom line of their business. The federal government are putting it forward as tax fairness but you can't really compare a business owner with one of the employees," said Compton.
"Tax savings that are in place, if you are an incorporated small business and there to ensure that there is some benefit to someone opening a business. We've got some 6,000 small businesses on PEI so it's a huge economic driver for our province. So everyone should be concerned but especially government and especially the premier."
CBC requested a comment from the chair of the standing committee, Bush Dumville but there was no response.
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