Close X
Wednesday, December 11, 2024
ADVT 
National

Trudeau Stands By Tax Reforms As Government Says Deficit Smaller Than Expected

The Canadian Press, 19 Sep, 2017 12:30 PM
    OTTAWA — The Liberal government will go ahead with controversial tax reforms despite clear new evidence the economy is rebounding, Prime Minister Justin Trudeau said Tuesday.
     
    The Finance Department says the federal government ran a smaller deficit than the $23 billion that was forecast in the spring budget, ending the 2016-17 fiscal year with an actual deficit of $17.8 billion.
     
    Not surprisingly, Trudeau called the news a clear sign that the Liberal plan to grow the economy through helping the middle class is working.
     
    Still, the prime minister stood firmly by his government's controversial plan to eliminate tax provisions used by a growing number of small businesses, arguing it is part of the Liberal commitment to increase fairness.
     
    "We are moving forward to make the tax system fairer to stop the system that encourages wealthy Canadians to use private corporations to pay lower tax rates than the middle class," Trudeau told a news conference in Ottawa.
     
    The proposed changes have sparked a revolt by doctors, farmers, small business owners and even some backbench Liberal MPs, who have spoken publicly about the complaints they have been hearing from their constituents.
     
    Finance Minister Bill Morneau released the controversial, three-pronged plan in mid-July, including restrictions on the ability of business owners to lower their tax rate by sprinkling income to family members in lower tax brackets, even if those family members do no work for the business.
     
     
    He also proposed limiting tech use of private corporations to make passive investments in things like stocks or real estate and limiting the ability to convert the regular income of a corporation into capital gains, which are typically taxed at a lower rate.
     
    Trudeau said he will take the feedback into account to make sure the proposed changes target the wealthy, but said he will move ahead.
     
    "How exactly we move forward, what measures are in the legislation going forward is directly impacted and affected by the questions people ask, the concerns brought up," he said.
     
    "We were pleased to see a tremendous amount of response to our consultation paper — people with concerns, some legitimate, some less so — and we are folding them into the proposal that we will put forward, which will make our tax system fairer."
     
    Trudeau also suggested the promised legislation would be narrowly targeted.
     
    "We will ensure that we're doing it the right way, so that hard-working, middle-class small businesses, hard-working, middle-class farmers, do not get penalized that is aimed at wealthy Canadians."

    MORE National ARTICLES

    Missing Non-Lethal Grenade Launcher, Ammunition Found: B.C. Police

    Missing Non-Lethal Grenade Launcher, Ammunition Found: B.C. Police
    Mounties in British Columbia say a missing non-lethal grenade launcher has been found.

    Missing Non-Lethal Grenade Launcher, Ammunition Found: B.C. Police

    Toronto's Pearson Airport Could Be Hit By Baggage Handlers' Strike On Thursday

    TORONTO — The union representing 700 workers at one of the largest baggage and ramp handling companies at Toronto's international airport could be in a strike position on Thursday.

    Toronto's Pearson Airport Could Be Hit By Baggage Handlers' Strike On Thursday

    Canadian Airlines Aiming To Become A Biofuel Superpower, Reduce Carbon Footprint

    Canadian Airlines Aiming To Become A Biofuel Superpower, Reduce Carbon Footprint
    MONTREAL — The country's top airlines say resource-rich Canada has the potential to become a biofuel superpower by transforming forest residue and agricultural crops into energy that can help the industry reduce greenhouse gas emissions.

    Canadian Airlines Aiming To Become A Biofuel Superpower, Reduce Carbon Footprint

    Drugs Seized At Prison In Mission

    Drugs Seized At Prison In Mission
    Correctional officials say drugs have been seized at a prison in Mission.

    Drugs Seized At Prison In Mission

    Preparations Underway To Welcome More B.C. Wildfire Evacuees Home

    Preparations Underway To Welcome More B.C. Wildfire Evacuees Home
    KAMLOOPS, B.C. — The mayor of Williams Lake, B.C., says the city is ready to welcome thousands of residents home, as soon as fire officials give the okay.

    Preparations Underway To Welcome More B.C. Wildfire Evacuees Home

    Ontario Man Pleads Guilty In Air Canada Flight Disruption Case

    Ontario Man Pleads Guilty In Air Canada Flight Disruption Case
    Brandon Courneyea's plea in a U.S. court covers one count of interfering with a flight attendant, which has a maximum penalty of 20 years in prison and a fine of up to US$250,000.

    Ontario Man Pleads Guilty In Air Canada Flight Disruption Case