Blog - Cambridge Chamber of Commerce

The effects of COVID-19 continue to test our economy, but the fiscal uncertainties surrounding this unprecedented crisis has not stopped many local businesses from reaching out to help others.

 

From local food banks, to frontline workers, to seniors and those with disabilities, the Cambridge business community has come forward to ensure those in need during this pandemic are not forgotten.

 

“The Cambridge community has always been exceptionally supportive of the Cambridge Self-Help Food Bank and they’ve stepped up for us in a way like we’ve never seen before,” says Dianne McLeod, the food bank’s interim executive director. “We’ve had lot of different restaurants donating products to us, whether it’s milk or eggs; stuff we’re not typically able to offer to everyone.”

 

But financial donations have also been coming in to allow the food bank to purchase some much-needed supplies for the 100 or so clients it serves daily, and Dianne credits many local businesses for this valuable support.

 

“We have all been so affected by the COVID-19 crisis and even though as a business have had our challenges, we all want to help those who truly need help,” says Christina Marshall, Director of Business Development at Gaslight Events Company Inc. which operates Tapestry Hall.

 

Her company, through its Tapestry Hall Delivers program which offers healthy meals via delivery and curbside pickup, has been donating $1 from every order to the Cambridge Self-Help Food Bank and The Food Bank of Waterloo Region.

 

“We have had two very solid weeks of the food delivery services, which means two weeks of orders that are supporting the food banks in our region,” says Christina.

 

But tasty dishes are not the only way the food bank has benefitted. Funky t-shirts emblazoned with the slogan ‘Eat, Sleep, Quarantine, Repeat’ have been popping up all over our community on social media thanks to a charitable partnership between MitoGraphics and Cambridge Centre Honda.

 

Since mid-April, the two companies have sold dozens of the shirts for $20 each, with every cent from each sale being divided equally between not only the food bank, but Trinity Community Table, Cambridge Shelter Corporation (The Bridges), and Women’s Crisis Services Waterloo Region.

 

“A friend in Peterborough who owns and operates a Honda dealership was creating t-shirts and I loved the idea,” says Cambridge Centre Honda’s Nicole Pereira, explaining how the idea came about. “I thought if Peterborough can make this happen, so can Cambridge.”

 

With the expert help of MitoGraphics’ Kristen Danson, the women went to work creating their #QuarantineTees in several colours and through the power of social media have started a virtual movement of support.

 

Originally, they had hoped to sell 50 of the shirts but during a pre-launch weekend sale in mid-April wound up more than doubling their sales.

 

“We both love our community and think the people of Cambridge are awesome, so it’s not surprising that we have received such great support,” says Nicole, adding the t-shirts have now been sold as far west as Alberta and on the East Coast.

 

She says the four charities have been great at promoting the shirts on social media and that one local store, Once Upon a Child, has also been selling them via its online store.

 

“There are so many great examples of businesses giving back to our community,” says Nicole.

 

For Golfplay’s President and General Manager Steve Harris, giving back seemed liked the best thing his business could do since it was required to shut its doors along with thousands of other Canadian businesses back in March.

 

“There are lots of needy organizations,” he says, noting after sitting idle for about two weeks, Golfplay fired up its stone pizza oven in its Ironwood Bistro to try a new approach. “I thought, we’ve got a perfectly good pizza oven so why not sell pizzas and give some of the money to charities?”

 

They tried doing it one day a week and gave $10 from every pizza sold, starting with the Cambridge Memorial Hospital and The Bridges shelter. They quickly sold out and began doing it three nights a week (Thursday to Saturday), selecting different charities each week to benefit, including Grand River Hospital, St. Mary’s General Hospital Foundation, Family & Children’s Services Foundation, and more recently the Sunnyside Foundation.

 

Orders for pizzas and other menu items are taken online for fast and easy curbside pickup.

 

“We just kind of go around,” says Steve, referring to how the charities are selected. “All of them could use help because their fundraising events have been cancelled.”

He says working with charities is also a good way to foster new relationships and potential spinoffs down the road when restrictions eventually ease.

 

“This has sort of helped increase the awareness of what we do here. People at least get the chance to sample our food,” says Steve, joking many people may not think of getting great pizza from a place called Golfplay.

 

“We’re trying to build a business and trying to give something back in the process,” he says, describing the situation as a ‘win-win-win’ for all involved. “The customers win because they feel good about helping others, we win because we get more exposure and the charities win because they receive some money in the process.”

 

Support among those in the business community is crucial says Christina, especially as the recovery process begins.

 

“By banding together and helping each other get through this, we show our strength as a community economically and socially,” she says. “If a business closes, the employees lose their income and that means other businesses do not benefit from that person’s buying power.”

 

Keeping that in mind, Tapestry Hall’s Delivers and HIP Developments have formed a partnership to create the Feeding the Frontlines program. On the Tapestry Hall Delivers’ website, customers have the option to contribute to the program which aims to see $5,000 in meal vouchers distributed to essential workers in Waterloo Region, including those working in healthcare, shelters, and grocery stores. On the site, the public can nominate businesses where essential workers are busy.

 

“They are doing the hard work in this community,” says HIP Developments President Scott Higgins. “We are just trying to find ways we can say thank you and make their family lives a little easier.”

 

Christina agrees and says these workers have gone into work each day to ensure the rest of us have the things we need.

 

“We wanted to do something kind to say thanks,” she says. “A stress-free meal may not seem like a lot, but when you have had a long and sometimes scary week at work, one less thing, like cooking a dinner or meal planning, can help ease that stress.”

 

Easing stress for others is what prompted Driverseat Cambridge owner Sean Mulder to follow the lead of the company’s Calgary office and offer a ‘shop and drop’ program free to seniors and those with disabilities. Those in need of groceries can call, or text Driverseat and will be provided with a link that allows them to fill out a grocery order.

 

“It’s kind of cool. We’re the third location to test this out,” says Sean, adding having fewer people going to grocery stores means less points of contact to spread the virus. “This makes great sense.”

 

Driverseat chauffeurs, many of whom Sean says are doing this on a volunteer basis since many only work part time for the company, do the shopping for the customer using a preauthorized payment system and then deliver the groceries following strict physical distancing guidelines. Currently, Driverseat is offering this at a few stores but expects that will increase as the program expands.

 

“A lot of our posts on social media have received a wide reach and from that, we’re getting quite a lot of people calling and messaging us,” says Sean.

 

He says since a huge portion of Driverseat’s regular services have been scaled back considerably since the lockdown began, this has allowed the company team to stay connected. Also, Sean says it has been a boost for those in need and are isolated on their own.

 

“It gives people peace of mind. We’re a person they can talk to,” he says, adding clients can call the chauffeur if they have special requests that may not be on the grocery list, or if they forgot to add something. “They’re not just punching information into an app; with us there’s a voice you can talk to.”

 

Sean admits even though businesses are facing challenging times it shouldn’t prevent them from lending a hand.

 

“There’s a huge need in our community and if you have the means or the time, you should do something,” he says.

 

Christina agrees, especially when it comes to assisting the non-profit sector.

“If you have the chance to help those that are helping others, isn’t it the right thing to do?” she says.

 

At the Cambridge Self-Help Food Bank, Dianne says she is thrilled by the extent of generosity from the business community which has included free security service and the creation of safe work stations for staff to work with clients at the front of the building thanks to the donation of free reno work.  As well, she says the local CAA office has deployed its vehicles to pick up food bank donations from the grocery store bins.

 

“No matter what people’s struggles are, they’re still considering us and donating to us which helps us keep going,” says Dianne.

 

Contact Information:

 

For information about Tapestry Hall Delivers, visit www.tapestryhall.ca

 

To order a #QuarantineTee visit www.cambridgecentrehonda.com/community-fundraiser/

 

For information about Golfplay, visit www.golfplay.ca

 

Contact Driverseat Cambridge at www.driverseatinc.com, or call 226-241-3736

 

For information about the Cambridge Self-Help Food Bank (which now has community donation bins set up at St. John’s Anglican Church in Preston and PetroKing in Hespeler), visit www.cambridgefoodbank.org

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Physical distancing and thoroughly washing your hands are ways for the general public to battle the spread of COVID-19.

 

For manufacturers looking to find ways to help fight the battle by retooling their operations to create much-needed medical supplies such as masks and face shields, collaboration is the key way says Steve Mai, CEO and President of Eclipse Automation, one of many local companies stepping up to the plate.

 

“It really helps if you build networks,” says the Eclipse founder. “Don’t work in a bubble, get out there and do it.”

 

 

The Cambridge-based company, which has been an industry leader in custom automated manufacturing equipment for 20 years, recently inked an agreement with Harmontronics Automation in China to manufacture, sell and distribute its automated N95 vertical flat fold respirator mask production line system in North America. As well, Eclipse also signed an agreement last week with Irema Ireland to access its N95 and FFP2 mask product designs and technology, including respirator designs, specifications, and manufacturing process for exclusive use in Canada.

 

These agreements will provide Eclipse the opportunity to rapidly create automation systems to support the design and assemble these important medical supplies, plus pave the way for a domestically produced N95 respirator.

 

Ultimately, Steve has a goal to produce vital life-saving protection products domestically.

 

“We shouldn’t be losing sight of the fact that we have a definite problem in quality of what is coming in through the supply chain,” he says. “I want to know there are masks produced in this country that have every element of the supply chain controlled.”

 

He admits the overall process has been taking place at a slower pace than he’d like, taking into consideration the strict regulations in place to have a mask receive NIOSH (National Institute for Occupational Safety and Health) approval, but notes Eclipse has not lost sight of  its end goal to ensure these supplies get into the hands of those who need them most. According to a recent media release, Eclipse expects to be first-to-market domestically by early July and plans to ramp up to make one million units per week.

 

“This is what we do for a living, this is not a secondary thing we’re trying to get into,” says Steve, describing the company’s decision to enter the battle against COVID-19.

He says the company, which employs approximately 800 people among its locations in Cambridge, U.S., Europe and China, has used a foundational approach by building on its core competencies to reach its goal.

 

He recommends other companies wishing to retool should consider doing the same.

“They’ve got to be careful not to overextend themselves and stay with what they know and focus on their core competencies,” says Steve, adding working with others is also important.

 

“We’re learning about a completely different network than we’re used to,” he says. “I’m seeing people sharing their ideas and being quite open.”

 

Since Eclipse undertook this major endeavour back in March, Steve says he has connected with many businesses that he has never had contact with before and expects to see these new relationships only strengthen.

 

“There’s some decent networking that’s going to come out of all this,” he says, describing the numerous phone calls he has had with various business leaders. “It’s really been amazing. I can’t wait to meet them in person.”

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Energy producers throughout the world are in uncharted territory. With nearly half the world’s population under some form of lockdown, an equivalent of the United States’ energy demand has evaporated from the global market. Poof.

 

This pressure alone was sufficient to put long shadows ahead of the industry, but the breakdown of the production cap brokered between OPEC nations and Russia has glutted the market with oil, sending prices down at a breakneck speed, in some corners of the market even into negative territory. Only an oracle would dare predict what is next for Canada’s oil and gas industry. Mere mortals must content themselves with taking stock of what is and what is not within our power as we muddle through the shadow-world of an ‘upside down’ energy market.

 

Until a vaccine is developed, the price of Canadian oil, like oil everywhere, will remain hostage to a pathogen. Strangely, what cannot be changed begets new choices. The federal government is at the crossroads. It can listen to the oil and gas sector’s permanent critics and shutter the industry, punch a 6% sized hole into Canada’s GDP, and put Canada in a position where we decide to let others be responsible for our energy security and for halting climate change internationally. Today, this might be the politically easy choice for our government to make, but easy choices pave roads to unhappy endings.

 

The other choice involves helping the industry carve a path in a global energy system that is most likely on a new trajectory. Peak oil may come earlier now, but there will still be demand, albeit less, for oil and gas over the next three decades, at least. With the right supports, Canada can gain market share by innovating to create less emission intensive oil and gas products, provide billions to governments in revenues, and drive investment in renewable clean technologies. Market share will increasingly be up for grabs given that current estimates suggest nearly 100 U.S. shale producers are likely to file for Chapter 11 in the months ahead. Decisions made today could see Canada improve its economic footing and maintain energy security in a world where autarky is fast becoming more attractive to world leaders of all political stripes.

 

So, what can the federal government do to help the industry, and the nearly one million women and men employed by the sector across this country, pass through the darkest valley they have ever faced?

 

Start by keeping as many of the people employed in the sector across the country working by targeting resources for well reclamation, and continue research and field work on carbon mitigation technologies. Government can also pause all new regulations and standards that increase the cost to the sector, from the Clean Fuel Standard to the increase in the carbon tax. This would provide companies that have already slashed capital costs with a little more capital to ride out a period where they are producing at a loss.

 

Such measures would augment the benefits of the federal wage subsidy, increased to 75%, in giving these companies time to adapt.

 

Perhaps most importantly, Canada’s energy producers have the vision to further reduce emissions, some before this crisis could see a path to net-zero by 2050. Realizing this vision demands new infrastructure projects and investment. The industry continues to be let down by a regulatory system that increasingly rewards investors looking outside of Canada. Infrastructure projects of all types will be crucial to Canada’s economic recovery. Reduced decision timelines and concerted efforts to guide projects key to Canada’s energy resiliency could go a long way to driving Canada’s economy and supporting investment in the sector.

 

Some choices are hard. Some are not. Support for our oil and gas sector today, will allow the sector to carry Canada tomorrow.

 

For more information, please contact: policy@chamber.ca

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I am a small business owner based in Cambridge, Ontario.  Along with my partners, we operate two manufacturing operations employing a total of about 25 people.

 

I am proud of all of the response of our political leaders to this crisis on all levels – local, provincial and federal.  They have taken a sober and analytical approach to the immediate needs of the citizens of this country.

 

Their willingness to commit funds, resources and support to our front line workers, small businesses and all in need will get Canada through this ordeal.

 

As a business owner, my top priority is always looking ahead to determine how I can not only succeed; but avoid unexpected disruption to my team; and minimize our potential for risk of any kind.

 

This is where I think the business community needs more support from our leaders.

 

The question of when we should re-open for business is open for debate.  The leaders in Canada, USA and abroad have differing opinions on this matter. 

 

There is only one question on my mind – what is required for me to do business in a way that will be safe for my team, clients and supply chain?  This is the question that must be answered prior to our return to regular business.

 

There is no doubt in my mind that the scientists of the world will determine when it should happen; using the tools and expertise available to them.  It brings me comfort to know that our Canadian politicians are being guided by science in their decision making process on these issues.  

 

However, there is another component to this decision that I think we are neglecting.  Whenever we return to work, it will be to a new business landscape.  There are new risks, new considerations and a higher expectation from the community for business owners to provide a safe working environment.  As a community, we need to determine what will be required to have in place prior to a return to “regular” business. Until we have a vaccine / “herd immunity”, do workers require masks to be safe?  Do we need to require hand sanitizer at entry points to work areas and require all team members to use?  In Taiwan, there are some common practise expectations for citizens that have allowed them to maintain a very low infection level of COVID without restriction on children being at school, or businesses operating normally.  What can we learn from their example that can help us to prepare to resume our work?

 

If Toyota, Honda, or even my business or a local hair salon re-opened in two or four weeks without making any adaptations to how the risk of COVID transmission is controlled; how will we have made progress against this disease?

 

The saying “time heals all wounds” has never resonated with me.  Time doesn’t heal all wounds; but time does offer us the opportunity to prepare for what is coming at  us next.  We know that the economy will have to resume prior to COVID being completely eradicated.  The question is – what will we as a community do to mitigate the risk of another peak of infection as we make that return to the new normal?

 

There is no question that children will have to return to school; I am less concerned about when that happens than I am about what the plan is to keep them safe and healthy once they are there.  We have the example of how Taiwan has made this work; kids wearing masks and having plastic cubicle style dividers between desks during meals.  Will we use this time to learn from their example and adapt our own action plan for what is required to be in place prior to resuming their in class education?  My hope is that we do. 

 

The Cambridge Chamber of Commerce is starting to gather experts and business owners to start this discussion.  I am proud to be a part of this discussion; I look forward to learning and planning together with others to determine how we as a business community can plan to get back to business.  This is new territory for everyone – consumers, business owners, employees, politicians, government, youth and seniors.  If we can agree on the supports that are needed to re-open in a safe manner, the time spent until that happens can be spent planning and making the required changes to how we do business to accommodate the new reality we live in.  If as a community we neglect this opportunity to plan and adapt, we are destined to repeat this cycle of the pandemic again in the not so distant future.

 

This is work that our Chambers of Commerce, professional associations, industry associations, regulatory bodies or governing standard registrars, perhaps the labour unions and school boards are well poised to do.  They have connections to business in their sector, a communication channel with a broad range of companies in a vertical market, and the support of their members.  If we all pressure these organizations in our own industries to get to work on our behalf, we can start planning for the future.

 

It’s time to change the question from “when can we re-open” to “what is required for a safe and healthy re-opening in my workplace to get through this crisis”?

 

Let’s get to work.

 

Kristen Danson

Managing Partner

MitoGraphics Inc. / Swift Components Corp

519 240-4205 Direct

 

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Boom! Canada hit 4.5% growth in the second quarter after a torrid 3.7% expansion in Q1! Sounds like growth in India, not a sleepy advanced economy. As a result, Canada’s deficit is lower than expected and the government announced additional spending. So is it time to stop worrying and pop the champagne?

 

 

There are four key drivers of this bonanza: (1) export growth thanks to the oil and gas sector; (2) consumption, because Canadians continue to borrow and spend like there is no tomorrow; (3) housing which saw the biggest gains in 8 years; and (4) a healthy gain in business investment. The question is whether these are likely to continue?

 

Firstly, Canada’s exports are set to rise 8% this year, which is superb, but is almost entirely driven by oil and gas sales which are up almost 42% so far this year (see chart on the following page). If you take out the petroleum sector, Canada’s exports grew just 1%.

 

But the export boom won’t last: the strong loonie and US weakness caused Q3 exports to fall 11.5%, while imports fell 7.1%. Net exports will be a drag on GDP growth for the rest of 2017.

 

Consumption will also slow down in Q3. Retail sales fell two months in a row (July and August). And job growth slowed:  just 43K jobs were created in Q3, the weakest quarter in a year, with gains entirely in the self-employment category. Private sector employment fell for the first time since 2015.

 

Housing has been a powerful driver of growth, but the foreign buyer tax hit Canada’s largest and fastest growing real estate market in May. Toronto’s home  sales have fallen 35% while prices were off 20%. The effects are likely to be temporary, as we saw in Vancouver, but will surely be felt in Q3.
 
The star of investment spending has been the recovery in the oil and gas sector but that is also facing tough times. The National Energy Board’s expanded focus on downstream emissions has created an effective moratorium on new energy projects. TransCanada finally pulled the plug on Energy East and in the last two years, $82 billion of investment has been cancelled.

 

So, we can expect a sharp downturn in exports and housing alongside much weaker consumption and business investment. Statistics Canada will release Q3 growth on December 1st and we expect it to be below 1%. What should we do? How do we keep growing?

 

Look around the world - these are exciting times in tax policy! France has just embarked on major tax reforms, with a 2017 budget that reduces or eliminates several business taxes, while lowering overall rates. The UK Government undertook a major tax reform effort last year, but backed away from the most contentious measures in April 2017. And in the US, Congressional Republicans are determined to press ahead with a biggest tax reform in 30 years, to slash the general corporate rate from 35% to 20% while eliminating certain tax credits.

 

What is Canada doing in the midst of our trading partners' laser-like focus on competitiveness? We've just spent most of the summer in a ferocious battle over income sprinkling.

 

Instead, Canada could create an internationally competitive system of business taxation that rewards entrepreneurship, encourages businesses to invest in the technologies, skills, and capacity they need to grow, and attracts capital and highly qualified people from around the world. That would ensure Canadian growth for generations!

 
For more information, please contact:

 

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

hbrakel@chamber.ca

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Never in the history of trade negotiations have we seen a country’s largest, most important business  association openly call its government’s trade proposals “dangerous” and say they should be withdrawn. That is exactly what the U.S. Chamber of  Commerce did yesterday.

 

Canada’s negotiators have done their very best in a challenging environment. They have reached out to Canadian people and business, they have extended a warm hand of friendship to their U.S. and Mexican counterparts and they have tabled sensible, generous proposals to improve NAFTA. But, we all have to prepare for the possibility that the U.S. will withdraw from NAFTA, based on the poisonous proposals U.S. negotiators have presented.

The craziest is a sunset clause that would terminate NAFTA after five years unless all three parties agree it should continue. Imagine the uncertainty of having all three countries debate the merits of trade every five years. How could anyone plan to build a factory with a useful life of 30 years? NAFTA would cease to exist for the purposes of long-term business investment.

 

The second troubling proposal concerns the rules of origin. Currently, 62.5% of a car or a truck must be produced in the U.S., Mexico or Canada for it to qualify for duty-free treatment under NAFTA. The U.S.’s proposal would require that 50% of the vehicle be produced in the U.S. This would be immensely harmful to the North American auto industry. It’s impossible to replace long-established multi-billion- dollar supply chains so most companies would simply pay the generally low U.S. tariffs. Manufacturers would then source more inputs from Asia.

 

The third concern is the administration’s proposal to eliminate Chapter 19, the process for dispute  settlement for anti-dumping and countervailing duties.
 
This comes at a time where the U.S. wants to impose a ludicrous 300% tariff on Bombardier jets, which is above even what Boeing had asked for. Chapter 19 is a critical safety net because it enables an independent, binational panel of five arbiters, agreed by both parties, to determine whether or not the duties have merit based on U.S. domestic laws. This is a must-have for Canada.

 

The final jaw-dropping proposal would drastically reshape NAFTA’s procurement rules. U.S. negotiators are proposing a “dollar for dollar” approach to North American procurement markets. That would mean “the total value of contracts the Canadians and Mexicans could access, together, couldn’t exceed the total value that U.S. firms could win in those two countries.” This is quite simply the worst offer ever featured in a trade agreement and is worse than basic access to government procurement offered under the WTO. Canada would be better off with no agreement at all than signing on to this nutty nonsense.

 

At the Canadian Chamber of Commerce, we salute the government’s efforts on NAFTA. The government has done everything possible: our negotiators have been outstanding, Minister Freeland and the entire Cabinet have invested enormous time in building relationships in the U.S., and the PM has invested his political capital and considerable charm to go to bat for NAFTA.

 

ut, if the U.S. administration is not serious about negotiating a mutually beneficial agreement, then we believe no deal is preferable to a bad deal. This is because a trade agreement will last many years. The Trump administration, we’re not so sure…

 

 

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284) 

hbrakel@chamber.ca

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Leading tax practitioners say that business owners with income as low as $50K will be affected

 

Ottawa, September 27, 2017 – The Coalition for Small Business Tax Fairness, a unified voice of more than 70 organizations representing hundreds of thousands of business owners across the country, has written a new letter to Finance Minister Bill Morneau with professional analysis confirming that Ottawa’s tax proposals will affect middle-class business owners, resulting in higher tax rates than other Canadians with similar income levels.  

 

“We are alarmed by the huge gap between the government’s statements about the impact of their proposals and the detailed analysis by Canada’s tax professionals,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Tax practitioners are united in the view that these changes have the potential to affect all small business taxpayers, no matter their income.”

 

"It is the farmers, mom and pop shops, and entrepreneurs, who invested everything into their businesses, that will be most affected by these changes, instead of targeting the real problem. The government needs to go back to the drawing board, hold a real consultation and listen to what tax professionals, provincial governments and the business owners who fuel the growth of our communities are saying," added Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

 

The government has claimed that these proposals would not affect business owners with incomes under $150,000. Tax practitioners disagree.

 

One of the new rules introduced by the government would restrict small business owners from sharing income with family members. Tax practitioners say that this can affect business owners with incomes as modest as $50,000. Also, as two-thirds of Canadian incorporated businesses are majority owned by men, the restrictions on sharing income with a spouse are likely to remove a disproportionately higher number of women from benefiting from their family’s business.

 

The government is also proposing changes that would discourage small business owners from holding certain types of investments in the incorporated company. According to tax practitioners, business owners retain business earnings in the corporation to safeguard against economic downturns, secure bank financing and invest in other start-up companies.

 

Tax practitioners have confirmed that the proposed tax changes would result in higher combined corporate and personal taxes for business owners across the board and in many cases, small business owners would incur tax rates far greater than what an employee with a similar level of income would pay. 

 

The Coalition, which has doubled in size since August 31, is asking the federal government to review carefully the analyses of tax professionals across the country, take these proposals off of the table, and launch meaningful consultations with the business community to address any shortcomings in tax policy.

 

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For the full list of Coalition members, please visit smallbiztaxfairness.ca.  

 

For media enquiries or interviews, please contact:

Andy Radia
Media Relations Specialist
647-464-2814

 

What some are saying:

 

“The agriculture equipment manufacturing sector represents 12,000 Canadians and their families predominantly in rural areas; as entrepreneurs who have put their lives on the line to invest in and grow their family business, the sector consistently exports more than $1.8 billion of farm equipment to over 150 countries. The scope and complexity of the proposed tax changes puts a lot of this at stake, and we must fight to ensure that fairness prevails for our members.” — Leah Olson, President, Agricultural Manufacturers of Canada

 

“Franchisees are the backbone of the communities they serve, by employing people of all backgrounds, supporting local initiatives, and helping grow the economy. As business owners, they assume significant risk, but have been able to achieve success through hard work and support from family members. Simply stated, CFA believes the changes being proposed by the Minister will hurt Canadian franchisees.” — Ryan J. Eickmeier, Vice President, Government Relations & Public Policy, Canadian Franchise Association

 

“The residential construction and renovation industry has always largely consisted of family-run businesses that help build the communities they operate and live in, many over several generations. These are hard-working Canadians trying to earn a middle-class living, hire local workers, and create a future for their families. The government’s proposed tax changes threaten the very existence of these businesses, posing a threat to small local companies in every community and the jobs they create.” —Kevin Lee, CEO, Canadian Home Builders’ Association

 

“We look forward to working with the Minister of Finance to ensure that any changes help secure the future of agriculture and not hinder it.” — Mark Wales, Chair of the Canadian Horticultural Council’s Business Risk Management Committee

 

“We are fully supportive of the government’s pledge to advance evidence-based policy-making. Our members are concerned that the government’s proposed changes to small business taxes are not sufficiently informed by the level of research, analysis and consultation required to ensure a full appreciation of the impacts this will have on Canadians - not just entrepreneurs and small business owners but also on the overall health of the Canadian economy and competitiveness in the short and long term.” — Leigh Harris, Vice Chair (Interim) National Board of Directors, CMC-Canada

 

“Canadian business families are scared, confused, and demoralized. Years of planning for business succession will potentially go up in smoke! And we’re being called tax cheats along the way. Canada can do better, we must do better—our economy depends on it.”— Allen S. Taylor, Chair, Family Enterprise Xchange

 

“These egregious proposed tax changes would negatively impact the family farm in ways that are both profound and complex. The federal government needs to reverse course on their ill-advised tax hike attack on our middle-class family farms. — Levi Wood, President of the Western Canadian Wheat Growers Association, grain farmer

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Letter Sent to the Cambridge Chamber of Commerce Membership

 

The federal government's recent small business tax proposal is punitive and will have damaging effects on business communities in Ontario and across the country.Over the summer, the federal Finance Department has made it clear that it intends to make the most sweeping changes to business taxes in 50 years.These proposed changes will negatively impact tens of thousands of businesses by raising taxes, reducing incentive for private investment, increasing administrative burdens, and making it even more difficult for a business to be transferred from one generation to the next.

 

Family businesses and family farms are being touted as tax cheats by the Federal Government. Although, they have walked that back - the fact is they have described legitimate and legal use of the tax laws are wrong and most commonly referred to as a loophole. This is not only ignorance of what it takes to build a successful business, but makes Canada the only country in the world to impose such punitive tax measures on small business. It is clear, this government has no respect for business, especially the locally owned family business.

 

The immediate reaction from our members and businesses across Canada was negative. We are particularly worried about the effects of the proposed tax changes for small and medium sized businesses - who are essential to our thriving local business community. We encourage local businesses to contact our  MP to provide feedback on the possible changes.

 

Bryan May, M.P., Cambridge & North Dumfries
534 Hespeler Road (Main Office)
Suite A4
Cambridge, Ontario N1R 6J7
Telephone: 519-624-7440 Fax: 519-624-3517 

Bryan.May@parl.gc.ca

 

Marwan Tabbara, M.P. Kitchener South - Hespeler
153 Country Hill Drive (Main Office)
Suite 2A
Kitchener, Ontario N2E 2G7
Telephone: 519-571-5509 Fax: 519-571-5515 

 Marwan.Tabbara@parl.gc.ca

 

 As an organization, we support reasonable attempts to reduce tax evasion or loopholes. However, these changes are insulting to businesses that have worked within the rules in good faith to build their businesses, to save for retirement, and sometimes just to keep their doors open.

 

Small Business is Too Big To Ignore and we need to demonstrate this with one voice.  

 

If you're not a small business owner but work for one, ask Mr. May and Mr. Tabbara to protect YOUR job by supporting small business entrepreneurs in Cambridge.

 

SIncerely,

 

Greg Durocher

Cambridge Chamber of Commerce

President/CEO 

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If your business is incorporated, you could be facing a larger tax bill and big compliance costs from the government’s new proposals to change the way corporations are taxed. Here are three things you need to know about the tax changes proposed by the federal government:

 

  • Do you employ family members? The government wants to scrutinize their compensation to apply a much higher tax rate on income they consider “unreasonable.”

  • Do you invest the profits from your business? The federal government is proposing to tax that income at an effective rate of 70%. 

  • Do you want to pass your business on to your children? Tough new rules make it difficult for younger kids to get the capital gains exemption. They could be double-taxed.

 

Small and medium-sized businesses (SMEs) are the engine of the Canadian economy – estimates range from 85 to 90% of all businesses in Canada are SMEs.

 

The chamber network across Canada is using its collective voice on this issue; your voice as a business person needs to be heard as part of this initiative. Send a message to your MP today. Government needs to know that this tax reform will harm businesses of all sizes.

 

Don’t know where to send the message to your Member of Parliament? Look up their address using your postal code.

 

Thirty-five business groups, including the Canadian Chamber—on behalf of the hundreds of thousands of members they represent—have presented a letter to Finance Minister Bill Morneau asking the government to take these proposals off the table and instead meet with the business community to address any shortcomings in tax policy affecting private corporations.

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First you have the Provincial Government with Bill 148 and then you add what our Federal Government wants to do regarding taxes and in reality it just adds up to a nightmare for small businesses. Greg explains in this weeks' 'The City'.

 

 

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