Kamloops MP weighs in on small business tax 'reversal of a reversal'

By Greg Fry
October 16, 2017 - 11:45am

KAMLOOPS — They're feeling the heat.

That's what Kamloops-Thompson-Cariboo Conserative MP Cathy McLeod is attributing the federal goverment's decision to lower the federal small business tax from 10.5 to 9 per cent to by 2019.

"It's interesting because it was legislated at nine per cent when they took office. They had promised to keep it at nine," she tells CFJC Today. "And actually the first thing they did was legislate it back to 10.5. So, this is a reversal of the reversal and really it's something that should have been there for small businesses all along. And of course now they're feeling the heat and realize that they have to support small businesses in some way."

McLeod says she isn't too concerned lowering the tax will cost the federal government around $2.9 billion in tax revenue over the next five years.

"You know, people always look at the net loss. What we have found is often when you lower the small business tax rate what you get is increased investment. There's many, many studies that show as you make things more viable people are more interested in starting up small businesses. They reinvest in their businesses and you create a stronger economy."

So, does she see the government backtracking on another controversial to crack down on income sprinking?

"I don't see a huge change there but most importantly we're going to watch (this week) what they do in terms of the family farms and how family farms can move to family members without costing more than selling them to unrelated large corporations."

She says that issue and others should make for a lively return to Question Period this week.

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