Island MP defends proposed tax changes, consultation process

Lawrence MacAulay, the federal minister for agriculture and MP for Cardigan, P.E.I., is defending his government's consultation process for the proposed business tax changes.

"There was an extended period of consultation. We had open consultations for a number of months," MacAulay said. "And what we want to do is make sure that we put the legislation together and create a fair tax system for the county, and that's what we're going to do."

The proposed changes would end income sprinkling, end the ability to convert earnings to capital gains, and change how passive investments work.

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Since Finance Minister Bill Morneau proposed the changes in July, many small business owners including doctors and farmers have expressed concerns about how the changes would impact them.

Voted against motion

The consultation period for the proposed changes ended on Monday. The next day, the opposition put forward a motion to extend the consultation period until January.

MacAulay, along with fellow Island MPs Sean Casey and Bobby Morrissey, voted against the motion. Wayne Easter was absent for the vote.

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Saint John-Rothesay MP Wayne Long was the only Liberal MP to vote in favour of extending the consultations.

MacAulay said government has heard a lot of feedback, and it will be taken into consideration.

"What you do in government is have consultations in order to get suggestions and hear from the grassroots of in fact what really should be in place. And that's why we had the consultations. Now it's our job to put the legislation in place, and to make sure it's a legislation that improves the tax system, makes it more fair for everybody."

Family farm transfers

MacAulay said he has listened to concerns from constituents and people throughout the country about the proposal. He said the most common concern he's heard has been about how intergenerational business transfers for example, with family farms could be impacted.

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MacAulay said he agrees that's an important issue, and said he's working with Morneau to make sure the new legislation won't negatively impact farmers.

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