The Cloverdale District Chamber of Commerce is sounding the alarm over the Liberal Government's new capital gains tax hike.
Calling it a “retirement tax,” the Chamber said it surveyed its members and many believe the tax increase will “harm the retirement savings of small business owners in East Surrey.”
According to press release sent out by the Chamber June 17, the business organization said 78 per cent of businesses surveyed “believe they will be impacted by the capital gains tax increase” and 95 per cent of businesses polled are against the “capital gains tax inclusion rate hike for individuals and companies.”
Joon Sohn, who works for the Cloverdale Chamber, said the new rate hike for capital gains is basically a “retirement tax” for those who own small businesses or are self-employed and without a pension.
“It is not fair to hard working Canadians who have spent decades building their businesses and investing in our communities,” noted Sohn. “Our surveyed small business owners meticulously planned for their financial futures based off the current tax rates, and this change with only two months' notice has caught them off guard.”
Sohn said several business owners are now thinking about delaying retirement plans because they won’t be able to afford to retire now.
As part of the Liberals' new tax hike, the capital gains inclusion rate would rise from 50 per cent to 67 per cent for anyone who had more than $250,000 in capital gains in one year.
The Cloverdale Chamber also disagrees with the Fed’s assertion the new tax raise will only affect 0.13 per cent of people in any given year. The Chamber said many of their members, many who invested “modestly” in real estate or stocks to augment their retirement plans, will be hurt by this tax jump.
Doctors of B.C., a voluntary association of more than 16,000 physicians, residents, and medical students, also came out against the tax increase.
“The problem with this proposal is that incorporated physicians who are in the middle, such as community doctors who are already struggling to pay their office staff, office lease and utilities, insurance premiums, etc., will be adversely affected when this takes effect in June 2024,” read a statement posted to their website, doctorsofbc.ca, earlier this year in April. “They are not the federal government’s target demographic, but they are the ones paying the price.”
Sohn said the tax hike is going to reduce the efforts of individuals to strive for growth through investments and entrepreneurial endeavours.
“Instead of taxing small business owners’ retirements, the federal government should get its spending under control to reduce debt servicing costs,” he added. “Use those savings to fund the critical social programs Canadians rely on.”
