My name is Chris Struthers, from Penticton BC.
Back in 2011 I had a good job working as an engineer at a medium sized well established manufacturing firm. My wife was helping raise 2 young kids but previously worked in construction and manufacturing administration.
For years we had ideas to start our own business but we always decided it would be too risky.
We had 2 young kids at the time, a mortgage and only a modest amount of RRSP savings... but my lovely wife Alana pushed me to take the first step, and set up a meeting with an accountant to review our business plan.
The accountant was great - he helped improve the plan - and told us about some of the tax incentives that would help reduce the risk of going in to business. Those incentives gave us the final push to do it !
Without those incentives in place, we would have never taken the risk, and in the past 6 years we would have never:
- Drawn cash from our mortage to start the business.
- Quit the safety of a stable salaried job for an immediate pay cut to Zero.
- Taken jobs in far remote locations like Kyrgyzstan, China, Turkey and Indonesia, going away for weeks at a time.
- Pledged our house as collatoral to the bank in order to support the growth.
- Given personal guarantees to numerous other creditors.
- Pretty well given up most of our vacation time and just about every public holiday for the first couple of years.
- Hired our first full-time employee within 6 months...
- Hired another two employees within the next 12 months...
- Been the lowest paid people in the business for the first three years...
- Hiring up to 15 people over the following 4 years....
- Spending over $6.1 Million in payroll for well paid Canadian jobs
- Collected over $ 2.7 Million in remittances to government (payroll remittances, corporate taxes, net GST, personal taxes)
- Received over $ 5 Million in foreign receipts, the majority of which were spent on salaries, goods and services in Canada
- Donated over $ 34,000 to Charity, soliciting another $20,000 from related businesses, in support of a special needs learning center for children. (see Penticton Excel)
And yes, now that we've reached a level of success, we have enjoyed some of the tax incentives that the present system allow us.
But without those, I would have stayed in my safe salaried job, and none of the above economic gains for our Community, Province and Country would have materialized.
Our story of course is just a single anecdote.
But if our case represents just a fraction of the total number of small businesses and potential entrepreneurs across the country, the impact or Morneau's misguided tax-grab should be clear.
Eliminating the tax incentives that a higher-risk private corporation enjoys over and above a low-risk salaried employment position will take away a major incentive toward small business job creation and economic growth.
This is why I strongly oppose Bill Morneau's horribly misguided tax-grab on small business owners !
A short term tax gain will evolve into a massive long term loss as potential entreprenuers like myself become discouraged from taking a risk to create something new.
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