The federal Liberals’ small business tax changes still have members of the Battlefords Chamber of Commerce nervous.
The proposed tax changes, which have come under heavy heat over the last number of weeks from various groups, was discussed at length at the chamber’s monthly board meeting Tuesday, Sept. 19.
The Chamber has been on record as opposing the changes brought forward by the Trudeau government, which call for a rollback of a number of tax advantages for smaller incorporated businesses and business professionals.
Finance minister Bill Morneau had earlier touted the tax changes, saying it would close loopholes exploited by the wealthiest Canadians.
But the Battlefords as well as the Saskatchewan Chamber sounded the alarm earlier this month about the impact. They said in news releases it would result in higher tax rates on income for businesses that employ family members, that the rules would make it difficult for children of business owners to get the capital gains exemption, and that there would be effective tax rates of 70 per cent for businesses that reinvest profits.
The indication from Battlefords Chamber president Warren Williams and other members of their Board was that they intend to keep up their advocacy efforts against the proposed changes, which they say would cripple small business.
At Tuesday’s meeting, Williams said the Chamber executive met in recently weeks on the issue, and information was quickly assembled and made available.
A letter was sent by the local Chamber in response to the tax changes, and calls of action went out to local businesses urging them to write their MPs and make known their concerns about the Liberal government’s proposals.
Executive director Linda Machniak also noted there were petitions out there, including one by the Saskatchewan Chamber, which members could sign if they didn’t feel comfortable writing a letter.
Machniak also noted the national chamber had offered to the finance minister to conduct “25 sessions across the country with the ministry” at no charge to the government for feedback. The ministry has not taken them up on it so far, Machniak added.
Whether these various lobbying efforts would actually change any minds in Ottawa was something the board felt less confident about.
“It looks like they seem bent on passing these changes, but noise is not a bad thing,” said Williams.
Board members also made known they believed there would be a widespread impact to businesses if the changes came in. Battlefords Chamber treasurer Dallan Oberg, who is a chartered accountant, painted a particularly grim picture.
“This is affecting everyone,” said Oberg, noting the impact would go beyond the wealthy “one per cent” that has been floated in the media.
He noted many groups were in fact going to be protesting the changes, to the point of even potentially organizing a stop-work-for-a-day effort.
“This is not insignificant at all,” he said.
Oberg said he has been fielding phone calls on the changes, but added they don’t know yet the results of the open consultation (due to wrap Oct. 2) or what rules or proposed legislation might be changed.
“It’s really at a standstill,” said Oberg.
As for how to communicate to members of Parliament, one suggestion that made the rounds at the meeting was to put pressure on the backbench Liberal MPs in particular.
It was noted five Liberal MPs had already turned around and said they would not be voting in favour of the tax changes. The hope was that more might be persuaded.
“That’s going to win it for you,” said Oberg: if enough backbenchers “feel the pressure.”
