Local business owners warn the federal government’s small business tax proposal will have damaging effects on everyone.
In July, the Trudeau Liberals announced plans to close “income splitting loopholes” that allow wealthy Canadians to avoid higher tax rates by distributing money to family members who earn less and are taxed lower.
Lambton Federation of Agriculture President Al Langford says the tax changes will also put family farms at risk, by changing how capital gains for family members are taxed, how dividends paid to family members on the farm are taxed and how passive income is taxed.
“The tax burden that will be pushed down for me to move the family farm to the next generation is where it’s really going to hurt,” says Langford. “I don’t understand the reasoning behind it. I still believe that the family farm is the major fabric of this country.”
He says under the proposed new tax rules, selling land to a family member would cost three times the amount of tax that a company or neighbour would be charged.
Small business owners are being asked to contact Sarnia-Lambton MP Marilyn Gladu with their concerns so they can be forwarded onto the House of Commons.
~Melanie Irwin~
Blackburn News Sarnia