Update Jan 2018:
Department of Finance Tax Change Announcement: https://www.fin.gc.ca/n17/17-124-eng.asp

The Liberal government recently announced that they intends to close several tax loopholes that, in his words, allow wealthy Canadians to avoid higher tax rates.

While I agree that the tax system should be fair and equitable for all, I am very concerned that the proposed changes will negatively impact hardworking small and medium-sized business owners, lawyers, accountants and physicians who play by the rules, create jobs in our community and are also raising young families in Riverbend.

The Liberal government plans to launch a 75-day public consultation process on their proposed changes. I am personally committed to participating in the consultation process to ensure that the voices of hard-working residents of our community are heard.

The proposed changes look at three specific areas (as it stands now):

  • Income Sprinkling (Income sprinkling involves diverting income from a high-income individual to family members with lower personal tax rates)
  • Passive Investment Income (Businesses/corporations that retain passive investments)
  • Capital Gains (Converting a private corporation’s regular income into capital gains)

Tax hikes like this one have made it more difficult for entrepreneurs to maintain and grow their businesses. By introducing higher small business tax rates, increasing payroll taxes, and introducing a nationally mandated carbon tax, Justin Trudeau has made it clear that small and medium-sized business owners and professional corporations are not a priority for his government.

This isn’t just a matter of seeing black ink on a ledger, or of winning praise from a local Chamber of Commerce. Lower taxes help young workers find their first job and help local companies invest expand and hire more workers. Tax cuts for families help them save for their children’s education, or for that family vacation.

Our Conservative caucus will continue to support policies that reduce the tax burden on businesses and allow entrepreneurs to create jobs and prosperity for all Canadians. We believe in helping Canadian families achieve prosperity and opportunity, instead of taking it away from them with overspending and higher costs. Lower taxes not only increase the amount that hardworking Canadians get to keep in their pockets from their paycheck, but it shows that the government has faith in them to do what’s best for their families.

If you, one of your associates or one of your neighbours has been negatively impacted by these changes, please don`t hesitate to share your story (below) with me so I can better advocate in Parliament on your behalf.

Get involved by signing the petition

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Standing up against tax hikes

I was able to ask the Finance Minister directly one of the questions I`ve been receiving from many members of our community on the frustrations with the proposed tax changes.

  1. Dear Matt

    I am writing as one of your constituents to express my concern about the tax proposals put forth by federal Finance Minister Bill Morneau.
    On July 18th, Mr. Morneau made an announcement that the federal government is proposing changes to target what they perceive as tax “loopholes” for the wealthy. These changes would specifically target individuals they deem high-income earners and individuals with corporations or small businesses.
    As a professional and small business owner, these changes will impact me directly, and I believe there is a fundamental misunderstanding of the challenges faced by myself and other colleagues.
    Business owners in Canada are not afforded the same benefits as public service employees like yourself. I do not receive employment insurance if I fall ill. If I miss work to be with a newborn child, I do not receive any benefits. If I miss work because a family member is sick, I do not get paid. If I find the time to take a vacation, I do not get paid.
    I also do not receive a guaranteed pension. My retirement is contingent on my own investment choices, and I shoulder the risk associated with these investments with the hope of an age 65 retirement. As of now, the only support I have received from the government was through the use of my professional corporation as a savings tool, and now the finance minister is looking to repeal the last vestiges of tax savings afforded to myself and other small business owners.
    I am aware that you are willing to take action to support the many professionals in your constituency and demonstrate your support for small business in Canada. With a decision on these proposed changes to be made by October, please utilize this information to inform Finance Minister Morneau that you do not support these changes due to the impact it will have on small business.

    John McMillan

  2. Sara McKinnon says:

    Dear Matt,

    Thank you for taking the time to personally respond to my concerns over the proposed tax changes. I agree with my fellow constituent Mr. McMillan and appreciate your support in this matter.

    Kind Regards,
    S McKinnon

  3. Todd Peerless says:

    Dear Mr. Jeneroux,
    I am writing to you as a small business owner here in Edmonton. We continue to struggle in this tough economy while this provincial and federal government keep changing the rules. The minimum wage increase, tax changes, tax hikes, along with increased costs of running a small business. All these factor into what we, as small business owners take home. We are the ones with all the investment and lively hood at stake, that also create a little economy in our respected area. If this government continues to take from us, there will be nothing left. Without small business owners in Edmonton the unemployment rate will continue to rise. Also, wait until this new wage takes effect in October, I can guarantee that many business will just close their doors. Im not quite sure where they learn reckless behaviour and spending. I guess if its not your money, you don’t care. I think its time to put these idiots running this province and country out of a job, like they are doing to us.

    Thank You,

  4. Tracy Fedorak says:

    I, too,am a small business owner and long-term resident of your constituency. The recent proposals of the federal government to “level the playing field” by increasing taxation and eliminating corporate investment for small and medium business owners are absurd! The majority of small Business owners are not the one percent that the government is referring to. We are the people that are creating opportunities and jobs for others particularly in a difficult economic recession being the worst since I graduated from university 24 years ago. These changes will greatly impact the bottom line on small businesses within Alberta as well as other parts of Canada. As a self-employed small business owner I do not get the a luxury of pension upon retirement and have to save enough to retire. Implementing these restrictions will crush small businesses and further prevent growth in the economy. Things are difficult already, please don’t make things worse by implementing these restrictions!

  5. Ian Kreutz says:

    Dear Matt,
    Thank you for personally responding to my letter concerning this hypocritical taxation proposal by the Trudeau government. I am also a small business owner and would be directly affected by each and every one of the new restrictions. If Mr. Trudeau and Mr. Morneau (top 1%ers) feel that this will help middle class Canadians, they should try and drink their own kool-aid. I have signed the petition link on your page and will tell anyone that will listen that this must STOP. Our country is built on the backs of small business. Don’t break our backs with more tax.

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