Hon. Alice Wong, P.C.

September 28, 2017

The Honourable Bill Morneau, PC, MP
Room 435-S, Centre Block
House of Commons
Ottawa, ON

Re: Tax Planning Using Private Corporations Consultation

Dear Minister Morneau,

I write to you today to express my concerns regarding the recent proposed changes to our tax system. As a former small business owner, I know firsthand the hard work, personal and financial risk, and the passion that is required to operate a small business.

As you know, our small businesses are the job creators in this country. They contribute to our communities, provide work for new graduates, and foster the entrepreneurial spirit Canadians value. Small business owners seek to provide stability for their employees, paying Employment Insurance and CPP premiums – neither of which they receive themselves. These entrepreneurs create new ways to be more efficient, environmentally smart, and community minded. They and their families invest a considerable amount of risk to pursue a passion they have always dreamed of.

The proposed changes you and your government have proposed will have negative impacts on these very entrepreneurs. Whether intentionally or unintentionally, the individuals you claim to be targeting in these changes are not those who are actually on the line. I strongly encourage you to re-examine your proposals, and to ensure that these small, community serving companies are not caught up in a poorly planned pursuit to raise revenues.

Many of my constituents have shared with me their frustration with the proposed changes. Below, are several examples from individuals in my riding who have reached out to me to share their personal stories through emails and letters. I have also included a petition addressed to your office signed by more than 100 constituents on the issue.

“As you continue to propose changes to make it even harder for small businesses to save for equipment upgrades, balance their business so that banks will lend us money when we are forced to relocate due to double digit increases to our base rent, and yet try earnestly to provide a fair and reasonable wage to our employees living in an urban center – why do you allow people who are really not paying anything let alone their “fair share” to thrive? Surely you could focus your governments efforts on identifying businesses that are licensed to operate and yet don’t show up in your own system.” – Richmond Resident September 25, 2017

“I have operated my small business and provided jobs (6 employees) since 1976. My business has a larger and continuously increasing tax burden than my employees, including 40 percent for in Employment Insurance and double the CPP premiums. At 70 years old, I continue to work 7 days a week, I can’t afford to be ‘sitting in a gated community”. I personally take all the financial risks because banks want my personal guarantees for any business loans and mortgages. I have very little in RRSPs and no TFSA. All my tax planning has been based under the current tax regime, saving in the business, and relying on drawing down dividends for my retirement years. “ – Small Business Owner, September 8, 2017

“The three tax measures proposed by the government will greatly interfere with my businesses’ ability to run operations, achieve my goals and provide the societal contributions that benefit my staff that live right here in Richmond,” – Entrepreneur, September 25, 2017

Please consider these concerns as you consider tax reform. There are many ways we can improve our tax system, but targeting our job creators is not one of them.

Thank you for your consideration, and I hope we can work together to find a more fair and agreeable solution.

Sincerely,

The Honourable Alice Wong, PC, MP
Member of Parliament for Richmond Centre

Filed under: Small Business