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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:

  1. Immediately undertake an economic impact assessment of the package of proposed changes and delay implementing any changes until the assessment is complete.
  2. Postpone the application of income-splitting changes until at least January 1, 2019, and exempt spousal income and dividends from the new rules.
  3. Drop the proposed tax hike on income from passive investments.
  4. 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.