An Impassioned Plea to The Canadian Federal Government…

Rt. Hon. JUSTIN TRUDEAU Prime Minister of Canada
80 Wellington Street
Ottawa, Ontario KIA OA2

RON MCKINNON Liberal MP
3278 Westwood Street (Main Office) Suite 101
Port Coquitlam, British Columbia V3C 3L8

Good Day Gentlemen:

First, I want to thank you for all your help, hard work, and service to our great country. I can’t imagine how difficult your positions must be, and I am grateful we have so many people committed to serving in public office in Canada.

This letter addresses the recently proposed tax changes.

It appears the ‘hornet nest’ has not only been poked. The nest has been whacked harder than a piñata at a 9-year-old’s birthday party.

These newly proposed tax changes also come with the messages of; ‘tax fairness’, ‘closing tax loopholes’, and the ‘betterment of the middle class’. I’m having trouble finding people supporting what’s presented. I’m not saying they aren’t out there somewhere, just having a hard time finding them.

I will not profess to know everything about the tax code. That’s why I surround myself with experts in this field, and these experts are mildly perturbed (the PG-13 word).

Unhappy People- Russell Westcott Blog

These changes appear to have the ire of MANY groups:

The Accounting professionals and Attorneys are hot under their collars, providing stats, calculations, and numerous case studies to back up their positions.

Two great articles from some well-respected professionals, which have done a tremendous job breaking down the numbers:

Analysis from George E. Dube, CPA, CA- Tax Partner, BDO Canada >>Analysis here
Facebook post from CGA, Navaz Murji >>Case-study here

The medical community is threatening to ‘take their talents’ elsewhere. Imagine if a significant number of our most talented health care professionals abandon their posts and leave our great nation as Dr. Deepa Soni writes >>Blog post here

Heck, these changes even have the Farming community up in arms. I can’t imagine a harder working community of people, who dedicate their lives to feeding our great Nation.

Farming- Russell Westcott Blog

It is interesting this time of year was chosen for feedback when most of the farming community is hard at work in their ‘Tax Shelters’ (their Combines), harvesting.

A wonderful story from a Saskatchewan farming family discussing how the newly proposed tax changes will hamper their ability to pass on the family farm to future generations  >>Article here 

I belong to a group of independent Real Estate rental property owners, and you guessed it, we are not ‘impressed’ either.

This chart sums up nicely how we feel about a few things.

Employee-Employer-chart Russell Westcott Blog

(Credit to Tim Miron, Partner at Beckett Lowden Read, LLP for this concise summary)

 

Frankly, the above list only scratches the surface of the iceberg of risks that small, independent rental property owners take (which I will not get into here).

I will not rehash the myriad of analysis, case studies, and concerns already completed on this topic, but take a quick look at something I have not seen discussed.

Politics and policies aside, the most concerning part of this process is the notion and concept of ‘MIDDLE,’ the average, the common, and the ordinary that is being bantered around, like a badge of honour, on a daily basis.

Personally, I believe MIDDLE is a mindset, a mentality, a level of thinking, and something we should NOT encourage.

Just imagine if a politician, in their next public address, created a message that sounded like this…

Microphone- Russell Westcott Blog

“Good afternoon, Ladies and Gentlemen.

 

We are a mainstream political party that believes in mediocre results.

 

Our party is filled with average people that are indifferent to providing you with policies that are smack in the middle, producing a run of the mill, uninspired, and ordinary impact on your life.”

I think you get the picture.  A message like this would inspire no one to vote and would be political suicide.

We should encourage and celebrate the outliers (both Businesses & Employees), those who are inspired and are striving to create more than ‘the middle’.

Reward and remove road blocks for people innovating, adding value, creating jobs, taking risks, trailblazing, and striving for excellence. This level of thinking and mindset is something we, as a nation, should embrace with open arms.

Roadblocks- Russell Westcott Blog

One final thought, and hopefully, the irony is not lost, as a direct consequence of these new proposed tax changes, and one I hope you have CAREFULLY considered.

In the discussion paper, written to support these changes, outlined a case study.

The case study is presented, featuring Jonah and Susan. Jonah has a private corporation, and Susan is an employee.

Here is a quote from an article that sums things up perfectly:

“What you have failed to do is describe the difference between an employee and someone who’s taken a chance and gone into business for themselves.

 

You are trying to convince the Canadian public that all business people are rich and that they use all these tax loopholes to reduce or avoid.”

The more you tax the small business owners, like Jonah, the less money and less of an appetite Jonah will have for all the additional risks placed on the system.

Jonah will have no choice but to hire fewer Susan(s).

What would be the consequences of this?

We can do better; we MUST do better.


Russell Westcott
#Inspire #Encourage #Love

 

An Impassioned Plea to The Canadian Federal Government

by | Sep 12, 2017 | Real Estate | 0 comments