Blog - Cambridge Chamber of Commerce

 

 

The climate crisis is a growing threat to businesses and individuals around the world, but Ontario is well positioned to lead in the global green economy. 

 

The  Ontario Chamber of Commerce’s (OCC) and Cambridge Chamber of Commerce realize this and developed the OCC’s latest policy report: The Climate Catalyst: Ontario’s Leadership in the Green Global Economy. 

 

The report offers a window into how organizations in Ontario are confronting climate change and what policymakers can do to encourage more sustainable investment and innovation.

 

“We must be ready to tackle the challenges of climate change head on,” said Cambridge Chamber of Commerce President and CEO Greg Durocher. “We already feel the impacts of changing temperatures and climate in our region. While it does pose a threat to communities across Canada and the world, this is an opportunity for us to leverage Ontario’s skilled and innovative labour force to develop concrete solutions to decarbonize our economy and drive us towards a green, clean economy.”

 

“As Ontario emerges from the COVID-19 pandemic, we would be remiss to forget about the other systemic threat: climate change,” said Rocco Rossi, President and CEO of the OCC. “Its impacts are already being felt across Ontario as extreme weather events disrupt livelihoods, infrastructure, access to natural resources, and community well-being. While confronting climate change is a historic challenge, it also elicits opportunities for innovation, job creation, economic development, and local leadership.”

 

The main policy recommendations in this report can be summarized under the following themes: 

 

  1. Minimize uncertainty. Improve predictability around climate policies and long-term energy procurement. 
  2. Mobilize clean energy solutions. Use flexible regulation, risk-sharing partnerships, tax incentives, and Indigenous-led projects to accelerate investments in a suite of low-carbon energy technologies. 
  3. Support cleantech. Invest in research and commercialization, expand skills training, and de-risk private financing for clean technology.
  4. Strengthen climate adaptation. Coordinate strategies across levels of government, make tangible commitments and investments, and advance Indigenous reconciliation. 

 

“Organizations across Ontario are investing in the kinds of innovation that will advance both decarbonization and long-term economic recovery,” said Claudia Dessanti, Senior Manager of Policy of the OCC. “Our members are uniquely positioned to tackle the climate crisis with made-in-Ontario solutions in all sectors that are a win-win for both the environment and the economy.”

 

Read the report: https://bit.ly/3Dn2tfg

 

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Providing the necessary supports to businesses is vital, especially as work continues to rebuild our economy in wake of the COVID-19 pandemic by getting people back to work. 

 

One way to ensure the economic development of Canada is well positioned is by creating more opportunities for entrepreneurial newcomers who can not only help fill existing labour shortage gaps but work towards reshaping our business landscape by opening new businesses and assisting existing ones in need of solid succession plans as aging business owners look towards retirement. 

 

With that in mind, the Cambridge Chamber of Commerce has developed a policy through consultations with Members via its MasterMind series entitled ‘Promoting the need for Entrepreneurship Immigration’ which calls for the Federal government to examine ways to ensure that a percentage of the 1.2 million immigrants slated to be brought to Canada by our government over the course of the next three years be linked to the entrepreneurship stream.

 

The policy won approval at the recent 2021 Canadian Chamber AGM & Convention which attracted more than 250 Chamber policymakers and officials nationwide virtually over a two-day period. The approved policy now becomes part of the Canadian Chamber of Commerce’s mandate when it lobbies at the legislative level with the Federal government.

 

“This policy will target individuals who are entrepreneurs and business builders who come to Canada with money in their pockets to not only invest in this country, but more importantly to invest in their own businesses here that will create opportunities for other Canadians,” says Cambridge Chamber President and CEO Greg Durocher. “We’re always looking for companies that want to expand into Canada, but why don’t we look for people who want to bring their businesses and business ideas here? It’s a market that’s been left untapped and we hope this policy receives serious consideration at the Federal level.”

 

An estimated 181,000 of small business owners according to a Canadian Federation of Independent Business (CFIB) survey conducted last year said they were seriously considering closing due to the pandemic and at least 200,000 were facing closure. Coupled with the fact many small business owners on the verge of retirement have not created viable succession plans – a CFIB survey conducted in 2018 indicated more than $1.5 trillion in business assets will be in play over the next decade as 72% of small business owners leave their business – there exists many potential opportunities for new immigrants with an entrepreneurial spirit.  

 

A current shortage of workers, especially in the construction, manufacturing, and hospitality industries, has set the stage for skilled immigrants in these fields to enter the market and possibly use their entrepreneurial know-how and practical work experiences to create new opportunities in these sectors. 

 

The Federal government has been attempting to make strides in addressing the ongoing shortage of skilled workers in Canada which has been only amplified by the pandemic. 

 

In February of this year, it announced an invitation to approximately 27,300 workers with Canadian experience to apply for permanent residence. This followed on an earlier federal announcement in the fall of 2020 to bring to Canada an additional 1.2 million immigrants over the course of the next three years: 401,000 in 2021; 411,000 in 2022; and 421,000 in 2023. 

 

While this influx of newcomers is welcomed and needed considering there are growing concerns centred on Canada’s falling birth rate, a more focused approach to create an ‘economic immigration policy’ that not only provides ample assistance to newcomers but also ensures the needs of existing Canadian groups, including Indigenous entrepreneurs seeking their own opportunities, are not negatively impacted, would be beneficial.

 

“We have an immigration policy that is geared towards our economy. It’s a point system, largely generated on the skills newcomers bring to the table,” says Greg, referring to education and various qualifications. “The problem is there are holes within the economic system that are not being filled.”

 

He says the current system often seems to focus on professionals, such as doctors, lawyers and engineers but needs to be widened. 

 

“We need to look at people who have businesses and would like to move them here have business ideas and the skills to develop those ideas in Canada,” says Greg.

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As vaccine rollout accelerates in Ontario, the Cambridge Chamber of Commerce and Ontario Chamber of Commerce’s (OCC) latest report offers solutions to support small businesses during economic recovery.

 

The COVID-19 pandemic is creating a cash flow crisis for many entrepreneurs and small business owners across Ontario who represent 98% of all Canadian businesses and contribute close to half the GDP generated by the private sector. Recognizing the critical role of entrepreneurship in Canada’s economic recovery, the Cambridge Chamber of Commerce and OCC’s latest report – Capital is Key:  Financing Entrepreneurship in Ontario After COVID-19 – offers practical solutions to support small businesses as they fuel Ontario’s economic advantage.  

 

“We know that Ontario’s economic recovery will largely be driven by entrepreneurs engaged in launching and scaling their enterprises,” said Cambridge Chamber of Commerce President and CEO Greg Durocher. “Even in good times, small business owners encounter challenges at various stages of growth. Real progress can come from redoubling efforts to eliminate barriers and advancing creative solutions to improve access to capital and other resources.”

 

“Entrepreneurial diversity should be recognized as a powerful strategy for Ontario’s economic recovery and long-term prosperity,” said Claudia Dessanti, Senior Policy Manager, Ontario Chamber of Commerce “Equal opportunities for women, Indigenous, racialized, and other diverse groups in the entrepreneurial ecosystem is necessary for both their own recovery and that of the entire province.  For example, closing the gender gap in entrepreneurship alone could add up to $81 billion to Canada’s GDP.”

 

This latest policy brief identifies 14 policy recommendations to improve financing of entrepreneurship, from loan guarantees to tax incentives, capital market reforms, procurement policies, and more.

 

The report also addresses eight key challenges policymakers must navigate as they look for ways to improve financing options and access to capital for entrepreneurs and small businesses:

  • RISKY BUSINESS: Small businesses (particularly start-ups) are generally riskier to finance than larger ones because they have shorter credit histories, fewer assets, and lower survival rates.
  • SCALE-UP FIRMS: Although Ontario excels at producing start-ups, the province has been less successful at turning high-growth firms into global competitors.
  • DIVERSITY: Barriers to accessing capital are uneven across demographic groups, which limits opportunities for some entrepreneurs and undermines broader social and economic outcomes.
  • DEBT: Despite relatively low interest rates, debt is not always the right solution for small businesses, particularly those with less collateral and/or irregular cash flows. Loans often require personal guarantees, and not all entrepreneurs have sufficient assets to provide as collateral.
  • WORKING CAPITAL: Over the past decade, Canadian businesses have signaled a growing need for external capital to cover day-to-day operating expenses. Working capital is especially important for start-up firms that may lack adequate cash flows to reinvest in their businesses in the first several months. However, in Canada, most government-supported loans and grants are designed for other uses, such as technology adoption.
  • INDUSTRY BIAS: Private equity and venture capital investors tend to have more appetite for sectors that are considered knowledge-intensive, such as information technology and biotechnology. As a result, more traditional brick-and-mortar businesses (such as restaurants and retail stores) may have limited access to equity investments.
  • PANDEMIC PRESSURES: As temporary grant and loan programs expire, many small businesses will need access to new financing or refinancing to grow, restructure, or simply keep their doors open.
  • SUCCESSION: Ontario’s aging population has implications for small business succession. By 2030, the number of seniors aged 65 and over is projected to almost double to 23 percent of Ontario’s population.

Read the report:  https://bit.ly/3vnA0Cf

 

We would like to acknowledge and thank Meridian Credit Union and Innovate Cities for their collaboration on this policy brief.

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(February 5, 2021) – The Chamber Network is looking forward to create a co-ordinated approach to reopening the province’s economy in the wake of the pandemic and calling on the Provincial government to ensure this happens in a balanced fashion.

 

“In the middle of a once-in-a-century pandemic, it is difficult to think beyond confronting the immediate demands of COVID-19,” said Cambridge Chamber of Commerce President & CEO Greg Durocher.   “However, even as we continue supporting each other today, we must also begin looking over the horizon to ensure businesses are prepared for the province’s reopening and recovery. It is never too early to start planning how our province and economy can emerge stronger while doing everything necessary to avoid further lockdowns.”

 

Each region’s experience differs significantly across the province when it comes to transmission rates, tracking and tracing capacity, and other variables.  The Cambridge Chamber of Commerce and the Ontario Chamber of Commerce have written to the Premier so that when the time comes businesses of all sizes have a predictable and coordinated effort to ensure society reopens in a harmonized fashion that prioritizes individual safety as well as economic stability asking for the following:

 

  • A readiness plan with a focus on sectors and regions hardest hit. It is critical that Ontario’s employers are aware of how reopening will take place step-by-step so they can properly prepare.
  • Advanced notice. Businesses and their employees need sufficient time to prepare to get back to work. 
  • Clear guidelines. Businesses need to clearly understand the rules and how they will be enforced. Inconsistent and unclear public health guidelines cause confusion among businesses, employees, and consumers alike, and make it difficult for individuals to take appropriate action to protect themselves and their communities.
  • Fulsome communication. Educational training via virtual workshops in advance of reopening would equip employers with practical information to help them keep staff and customers safe.
  • Workforce management systems. Employers in Ontario should adopt a scalable digital software tool for routine self-screening and assessment by employees, as part of a comprehensive workforce management system.
  • Rapid testing. Sufficient and timely testing and tracing gets employees back to work quickly, ensuring continued productivity and reduced strain on families.
  • Evidence-based decision making. A strong testing and tracing apparatus ensures the province can accurately assess where and how the virus is spreading, so that efforts to target restrictions can be confidently based on solid data.
  • Continued supports for those who need it most. Finally, continued timely and accessible supports for business will prevent further layoffs, closures, and bankruptcies.
  • Leveraging private sector to support vaccine distribution and deployment. Businesses will be critical in supporting public awareness, logistical capabilities, and best practices.

“As the government explores options to safely re-open the economy, it is worth noting that businesses already adhere to a number of existing health and safety protocols and will do their part to support a safe re-opening. The business community will continue to prove their commitment to safety protocols to protect their worker and customers to keep their doors open,” added Durocher

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Small businesses are at the heart of our communities. They create good jobs, grow our economies and bring life to our main streets. But they have also been among the hardest hit during the COVID-19 pandemic.

 

As we continue to fight this virus, small businesses face further losses, increased costs to reopening and an uncertain economic future. The Government of Canada is committed to doing whatever it takes to support small businesses and their communities. Their success is critical as we recover and rebuild from the COVID-19 pandemic.

 

On Tuesday, during Small Business Week, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced an investment of $12 million in the Canada United Small Business Relief Fund.

 

“The support announced today is yet another lifeline for resilient small businesses across Canada. These grants will help them cover expenses involved in reopening and allow them to build a stronger digital presence,” said Ng.  “As we’ve said from the very beginning of this pandemic, we will always be there for small businesses and the millions of hard-working Canadians they employ.”

 

Cambridge Chamber of Commerce President and CEO Greg Durocher welcomed the news. “There has never been a more important time to support local small business than right now. They are critically important to our own local economy.”

 

Canada United is a national fundraising campaign created by the Royal Bank of Canada (RBC) in collaboration with private sector partners and provincial and territorial chambers of commerce, including the Ontario Chamber of Commerce (OCC). The campaign has been rallying support from Canadians for local small businesses in every corner of the country.

 

The Canada United Small Business Relief Fund, which is managed by the OCC, is supporting Canadian businesses across different sectors and industries with grants of up to $5,000. These grants will help thousands of small business owners cover the costs of personal protective equipment, make physical modifications to their businesses to meet local health and safety requirements, and enhance their digital or e-commerce capabilities. This is especially important as we enter the second wave of the pandemic.

 

This investment builds on the federal government’s continued support for small and local businesses through a wide range of COVID-19 emergency programs, such as the expanded Canada Emergency Business Account, the Canada Emergency Wage Subsidy and the new Canada Emergency Rent Subsidy.

 

At A Glance:

 

  • Starting on October 26, small businesses can apply online through the Ontario Chamber of Commerce for the next wave of Canada United Small Business Relief Fund grants.
  • Applications are open to small businesses across sectors and industries in every part of the country that have between $150,000 and $3 million in annual sales; have up to 75 employees; are registered in Canada; and would use the grant to cover the costs of personal protective equipment, make physical modifications to their businesses to meet local health and safety requirements, and enhance their digital or e-commerce capabilities.
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More than 60 per cent of Canada’s restaurants risk having to close their doors permanently by November, according to government data.

 

The Canadian Survey on Business Conditions (CSBC), produced by Statistics Canada with support from the Canadian Chamber of Commerce, found that 29% of accommodation and food service businesses cannot operate at all with social distancing measures in effect. A further 31% will only be able to remain operational for up to 90 days with distancing measures in effect. In other words, up to 60% of the industry could fail within three months.

 

 

These figures are even more troubling when you consider the jobs already lost. When COVID hit, 83% of businesses in the accommodation and food services industries temporarily closed and two-thirds were forced to lay off some staff, including almost a quarter that were forced to lay off all their staff.  According to Restaurants Canada, the food service industry lost 800,000 jobs.

 

While the economy is now slowly beginning to recover, to date the federal government has not offered help tailored to the needs of the hardest hit industries like food services, which will take a long time to recover. That’s why, with the support of the Cambridge Chamber of Commerce, the Canadian Chamber of Commerce and 15 food service businesses, representing more than 60 brands, has launched the ‘Our Restaurants’ campaign.

 

“Local restaurants are vital to our economy and play an integral role in making Cambridge such a great community,” said Cambridge Chamber President and CEO Greg Durocher. “They need our support now more than ever.”

 

Canadian Chamber of Commerce President and CEO Hon. Perrin Beatty agrees.

 

“We need to act now. Across Canada, our restaurants are where we meet for business or pleasure, where we got our first job and where our families spend a night out. Simply put, our restaurants are cornerstones in our communities,” he said. “The ‘Our Restaurants’ campaign underscores the urgent need for Canadians – both the public and our governments – to come together to support these businesses in their time of need.”

 

The campaign puts a spotlight on the current situation faced by Canada’s restaurants amidst COVID-19: high costs, fewer customers, and government programs ill-equipped for the unique, long-term challenges faced by the industry.

 

Our Restaurants is a campaign led by the Canadian Chamber of Commerce and supported by:

  • Arterra Wines Canada
  • Benny & Co.
  • Boston Pizza
  • CWB Franchise Finance
  • Firkin Group of Pubs
  • Foodtastic
  • Gordon Food Service
  • Molson Coors Beverage Company
  • Northland Restaurant Group
  • Paramount Fine Foods
  • Pizza Pizza
  • Restaurants Canada
  • Service Inspired Restaurants (SIR Corp)
  • St. Louis Bar and Grill Restaurants
  • Sysco Canada

Together these companies represent more than 60 of the best-known restaurant brands across Canada and the whole of the food services industry.

 

“We can all make a difference. Canadians need to observe safety measures while also starting to resume our normal lives, including being able to go out for a meal. Everyone also needs to remind their elected representatives of the importance of our restaurants in our lives,” concluded Beatty.

 

The campaign is national, bilingual, includes paid advertising, and the launch of the website OurRestaurants.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

[email protected]

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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 

[email protected]

 

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 

 [email protected]

 

 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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