Agriculture groups are among more than 40 national organizations that have formed a coalition to fight the federal government’s proposed tax changes for incorporated businesses.

The Coalition for Small Business Tax Fairness sent a letter to Finance Minister Bill Morneau asking him to take the proposal off the table.

“In ten years at the Canadian Chamber, I’ve never seen an issue that has generated greater concern among our members. To make matters worse, allotting only 75 days for comment in the midst of the summer holidays is not a consultation, it’s a stealth attack on farmers and family businesses,” notes Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, in a coalition news release.

The proposed changes would restrict how small business owners could share income with family members, limit forms of saving within a business, and change rules on how capital gains are taxed, impacting how a business is transferred to the next generation.

“Ninety-seven per cent of Canadian farms are owned by families who form the backbone of rural economies and face unique challenges as independent businesspeople. The proposed changes to the tax code will dramatically limit the ability of these families to invest in their businesses, encourage the next generation to remain on the farm, and engage in succession and retirement planning,” says Jeff Nielsen, president of Grain Growers of Canada.

Ron Bonnett, president of the Canadian Federation of Agriculture, notes the federal government’s own 2017 budget highlighted agriculture as a sector primed for growth.

“If these tax changes are implemented as proposed, we’ll see increased tax burden for farms, reduced investment in growing our operations, and even more uncertainty and complexity for farm ownership transfers. We need to rethink these proposals to ensure that Canadian agriculture stays globally competitive.”

Introduced on July 18, the 75-day consultation period on the tax code proposal ends on October 2.

Coalition for Small Business Tax Fairness members (as of August 31):

Advocis – Financial Advisors Association of Canada

Agricultural Manufacturers of Canada

Association of Consulting Engineering Companies

Canadian Advanced Technology Alliance

Canadian Association of Farm Advisors

Canadian Association of Management Consultants

Canadian Association of Optometrists

Canadian Association of Radiologists

Canadian Bar Association

Canadian Cattlemen’s Association

Canadian Chamber of Commerce

Canadian Construction Association

Canadian Dental Association

Canadian Federation of Agriculture

Canadian Federation of Independent Business

Canadian Home Builders’ Association

Canadian Horticultural Council

Canadian Institute of Financial Planners

Canadian Institute of Heating and Plumbing

Canadian Institute of Steel Construction

Canadian Medical Association

Canadian Mortgage Brokers Association

Canadian Pharmacists Association

Canadian Pork Council

Canadian Taxpayers Federation

Canadian Veterinary Association

Canadian Water Quality Association

Coalition of Ontario Doctors

Conference for Advanced Life Underwriting

Family Enterprise Xchange

Federation of Ontario Law Associations

Grain Farmers of Ontario

Grain Growers of Canada

Independent Financial Brokers of Canada

Mechanical Contractors Association of Canada

Merit Canada

National Exempt Market Association

Ontario Association of Radiologists

Ontario Medical Association

Restaurants Canada

Retail Council of Canada

Western Canadian Wheat Growers Association