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The backlash has been building since mid-July, when Morneau released a controversial, three-pronged plan aimed at closing tax loopholes used by a growing number of small businesses, creating what he called an “unfair playing field.”

One change would restrict 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. Another would limit the use of private corporations to make passive investments in things like stocks or real estate.

The third change would limit the ability to convert a corporation’s regular income into capital gains that are typically taxed at a lower rate.

Among the myths Morneau is trying to dispel is the coalition’s contention that his proposals will impact all small business owners, two thirds of whom are middle-class Canadians earning less than $73,000 per year.

Morneau contends the proposed change to passive investment income will have negligible impact on anyone making less than $150,000 per year.

“Under this amount there is very little benefit from the loophole because you could simply max out your RRSP and TFSA (tax free savings account),” said Lauzon.

“But the more you make, the more you stand to benefit from these loopholes, which effectively provide a tax sheltered account over and above what is available to you, me and everyone else.”

Finance officials argue that closing the loophole will affect only those small business owners who still have money to shelter from taxes after they’ve maxed out their RRSPs and TFSAs each year — something only three per cent of Canadians can afford to do.