Trudeau Tax Changes Jeopardize Intergenerational Farm Transfers
September 4, 2017
The Trudeau Liberals don’t seem to be backing down on their proposed radical changes to the tax system and many Canadians fear what these changes will do to their businesses, farms, income and retirements.
Scott Ross, who is the farm policy director for the Canadian Federation of Agriculture has stated it is pretty clear that Trudeau’s tax changes have a significant potential to increase the tax burden facing family farms, and more than anything increasingly complicate inter-generational farm transfers.
Despite their rhetoric, the Liberals aren’t just raising taxes on Canadian millionaires who own big corporations; the majority of those who are going to be affected are small business owners, farmers, doctors and mom and pop operations. According to the Canadian Federation of Independent Business (CFIB), two-thirds of small business owners earn under $73K and half of them under $33K. These are not folks who have a lot of money to spare to help pay for Justin Trudeau’s extreme spending habits.
The business community has been united in sending one message to the Liberal government on the most radical tax change in over 20 years. Dan Kelly, President and CEO of the CFIB has said that “in my 23 years of lobbying for small firms, I haven’t seen the degree of anger toward any government policy as the feds’ small business tax proposals.” Perrin Beatty, President and CEO of the Canadian Chamber of Commerce, has been urging Canadians to meet with their MPs to voice their opposition to “the unfair tax attack on Canada’s farmers and small businesses.”
Trudeau’s tax changes will have real negative consequences for Canadians. In fact, Finance Canada bureaucrats twice tried to get former Conservative Finance Minister Jim Flaherty to enact these same changes, and twice Minister Flaherty told them that the answer was no. Conservatives knew then, just as we know now, what a terrible idea these tax changes are.
Dr. Shawn Whatley, the President of the Ontario Medical Association, has commented on behalf of the 70% of Canadian doctors who will also be affected by the Liberal changes. He says that “if implemented, these proposals would create uncertainty for physicians and make it difficult for doctors to plan for their clinics, staff and equipment, and ultimately, provide dedicated services to their patients.” He goes further to say that the tax changes would also “have a negative impact on all small business owners’ ability to plan for their retirement.”
Rural Saskatchewan will not benefit from these changes. As all of us know, retaining doctors in our communities is already a difficult challenge.
Sadly, the only people who stand to benefit from these tax changes are Justin Trudeau and those in his Liberal government, who are struggling to find new revenue streams in the face of their two years of reckless borrowing and spending.