By Aaron Mahoney/Lethbridge News Now

Small business tax changes, and faith in the Finance Minister: Harder discusses the year that was in Ottawa

Jan 1, 2018 | 11:22 AM

LETHBRIDGE – One of the biggest stories out of Ottawa in 2017 was the controversy surrounding the federal government’s proposed small business tax changes.

Finance Minister Bill Morneau rolled out the original changes back in July.

The proposals would have affected how some Canadian small-business owners are taxed, specifically anyone who sprinkles income among family members.

They would also have affected Canadians that control private corporations to accumulate savings over the long-term, and anyone looking to pass down their business to the next generation.

Lethbridge MP Rachael Harder says as opposition, the Conservatives were disappointed to see the Finance Minister come out with these changes in the middle of the summer.

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“Morneau really didn’t give Canadians the opportunity to learn about them, or to be aware of the changes. It was as if the government was just trying to sneak these changes through without Canadians really realizing what was happening,” Harder said.

That was not to be the case. Small business owners, Chamber of Commerce members, and Canadians from across the country pushed back on the changes.

They spoke out on social media, and at town hall events.

Harder says the Conservatives saw this as an opportunity to make sure attention was drawn to the changes the government was trying to push through, and to rally behind the business community by making sure their voices were heard.

“I think we’ve done an effective job of doing that, but with these small business tax changes, essentially what’s happening is life is becoming more expensive for small business owners,” she continued. “We’re talking about women and men who have started these businesses out of a dream, a passion, and a desire to give back to the community.”

“They help to provide jobs, and now they’re being punished as if they’re doing something wrong when in fact they’re not,” Harder added.

Only recently, the Canadian Standing Senate Committee on National Finance has called on the government to scrap the proposed small business tax changes. That recommendation was made following a cross-country consultation with businesses, academics and stakeholders.

Harder completely agrees.

“Quite frankly, I believe we should do everything we possibly can to support business men and women in this country.”

The push back to the changes was so vociferous that even a Liberal MP, Wayne Long of New Brunswick, ended up breaking with party ranks.

Harder says the changes were noticed by members on her team, and from drawing attention to them and gaining some media attention, the chambers caught wind of them.

“They relayed the information to small business owners, and then you saw chambers from coast to coast speak up and make their voices heard. I couldn’t be prouder of the energy they brought behind the scenes to make sure their concerns were put on the table. It really was that unified voice from Canadian business owners and the various chambers that pushed back on the Liberals, and I think caused them to back down on their original changes,” Harder said.

The issue of the small business tax changes quickly shifted to another topic in the fall, whether or not Canadians can have faith in Bill Morneau to act in their interests and not his own as Finance Minister.

Members of the Conservative and NDP caucuses hammered away at the government day after day during Question Period, and Harder says considering Morneau’s standing that shouldn’t be surprising.

“There’s the Prime Minister, and then there’s the Finance Minister when it comes to decision making. So, Bill Morneau is right at the table, and we’re looking at a guy who has been given the responsibility of looking after our country’s well being. He’s responsible for crafting a budget for an entire nation, that’s a huge job and a significant portfolio.”

She added that Canadians expect the individuals serving as the Finance Minister to be of the utmost integrity, to have respect for the taxpayer and to want to do what’s best in the interest of Canadians.

“At this point in time, we just haven’t seen that from Bill. He said on one hand he sold his shares of Morneau Shepell, that they were gone, but we found out that they weren’t. Then he forgot that he owned a villa in France, and then we found out that some of his shares were sold at a questionable time with regards to the tax changes he was pushing for,” Harder added.

That was the consistent theme of questioning from the opposition over the past few months, about where or not Morneau’s conduct when it came to these legislative changes could potentially benefit his family company.

“All of these things definitely raised concerns, and we’ve heard directly from Canadians that he needs to go. Morneau hasn’t proven to be able to handle our finances well, he hasn’t shown himself to be a man of integrity, so it would be best for him to resign,” Harder said.