The small but very vocal misinformation campaign threatens to scare the government out of taking this modest, but important step towards building a fairer tax system — which is why we have joined with Lead Now and created an open letter to Minister Morneau to let him know Canadians support the reforms.
Canadians for Tax Fairness welcomes the news that the government is going ahead with private corporation tax reforms. And the tweaks announced today sound reasonable. But a cut in the tax rate to 9% for small businesses is unlikely to do anything to boost jobs or the economy and could cost more than the savings from closing the private corporation tax loophole.
And calls on government to close other unfair and ineffective tax loopholes.
Dennis Howlett, Executive Director of Canadians for Tax Fairness appeared before the House of Commons Finance Committee at its September 26 hearing on Tax Planning Using Private Corporations. He supported the governemnt's proposed changes to limit the use of private corporations to avoid paying taxes, but called for further action to close other loopholes such as the stock option deduction, the capital gains exemption and the business entertainment tax deduction.
Ottawa, September 27, 2017 – Over 14,000 Canadians from across the country have signed the message to Minister Morneau stating: “We support your reforms to start making the wealthy pay their fair share in tax. These loopholes have let a small group of very wealthy Canadians take advantage of a system that wasn't meant to be used as a tax shelter for the rich.“
Federal tax reform could give Nova Scotians some of the funds we need to improve our infrastructure and public services.
There are compelling reasons to support the federal government’s proposed small-business tax proposals. Does that surprise you? Let’s pause for a moment and consider a few facts.
Tax breaks in the last 20 years have benefited Canada’s corporations and wealthiest citizens far more than the rest of us. These breaks have contributed to wealth concentration at the top and entrenched poverty at the bottom.
They have gradually starved governments of billions of dollars needed to pay for vital programs and services. The current proposals will replace some of the tax revenue that has been lost — about $1 billion yearly by some estimates. Taxes and public services have come to represent a significantly smaller percentage of our economy than in most other developed countries — it’s time to stop the bleeding.
You have to hand it to wealthy business owners. They know how to work the system to maximize their bottom line and pay as little tax as possible. Why shouldn’t they? It’s completely legal. However, it’s not only fundamentally unfair to those who pay their fair share, it also hurts poor Canadians — most of them women.
Last year the Federal government backed down on an election promise to close the stock options tax loophole that gave almost a billion dollars to the richest CEOs. The Finance Minister bowed to pressure from vested interests who didn’t want to lose their 50% discount on taxes.