Tax fairness for small businesses and the need for greater clarity around a suite of proposed tax changes are top of mind for business owners across the country heading into the 2018 budget, writes the Coalition for Small Business Tax Fairness in a new letter to Finance Minister Bill Morneau.
The Coalition, which HRAI is a member of, is deeply concerned that changes to tax rules for passive investments may severely limit small businesses’ ability to save for large investments, creating a significant barrier to innovation and growth.
With time running out, the Coalition is recommending that the federal government:
- Immediately undertake an economic impact assessment of the package of proposed changes and delay implementing any changes until the assessment is complete.
- Postpone the application of income-splitting changes until at least January 1, 2019, and exempt spousal income and dividends from the new rules.
- Drop the proposed tax hike on income from passive investments.
- Undertake a comprehensive review of Canada’s income tax system.
The Coalition for Small Business Tax Fairness is a unified voice of 75 organizations representing hundreds of thousands of business owners across the country.
For more information, please contact Scott Papp, spapp@hrai.ca.