This week Ron Walsh corresponded to the Liberal caucus to express his concerns over the July 18, 2017 private corporation tax proposals. Ron encourages everyone to continue to send letters to Members of Parliament, The Prime Minister, Minister of Finance, etc. Ron welcomes anyone who wishes to use his letter as a template to do so. You’ll find a copy of the original correspondence here.
Dear Liberal Member of Parliament,
As a business owner, I do not support your government’s approach to the tax system. The changes you have made and are proposing threaten private enterprise in Canada.
In 2015, you raised personal income taxes by 4%. This represented an increase of about 10% in the top rate of tax.
In 2016, you passed major changes to the tax rules for the small business deduction. As a result, many small businesses saw their tax rates rise from 13% to 26%, a jump of 100%.
In 2017, your proposals will lead to tax hikes for farmers, business owners, incorporated professionals, manufacturers, doctors, dentists, and many others. These increases have significant adverse implications for the Canadian economy.
The 2016 changes and the 2017 proposals have complicated the tax rules for private corporations. This complication can be considered an indirect form of taxation because it imposes significant additional administrative and professional costs on privately owned companies.
A few decades ago, the Minister of Finance proclaimed that the government was rewarding success, not subsidizing failure. Many individuals, encouraged by that idea, started businesses, took over farms, established professional practices, etc. With this reversal, they’re now being punished for their efforts.
Your government is implying that law-abiding citizens are trying to cheat on their taxes and take advantage of loopholes. In a time of global instability, Canada should be a leading voice in promoting unity and harmony, not creating divisions within society.
I respectfully urge you to abandon the July 18, 2017, proposals. It is time for the federal government to acknowledge the significant contribution made by the private sector. Not only do private corporations and their shareholders pay billions of dollars in tax annually, they create jobs, innovate, and raise the standard of living for all Canadians.
Please withdraw the proposals.
Yours truly,
Ron Walsh
Posted in Tax Legislation + Walsh King News
