'This really hobbles us': P.E.I. businesses share concerns over proposed tax changes

Several P.E.I. entrepreneurs are questioning if they willcontinue with their businesses in the face of proposed federal tax changes.

More than 300 business people attended a town hall Friday hosted by the Greater Charlottetown Area Chamber of Commerce to discuss changes outlined recently by the Trudeau government.

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They expressed concerns to Charlottetown MP Sean Casey, whojoined the conversationfrom Ottawa throughSkype.

"When we're at the point we are right now as entrepreneurs, where we have to stop and think 'Should I stop? Is it worth it?' That shouldn't be a question that we're facing at this point," said Melody Dover, president of FreshMedia.

Canadian Tire franchisee owner Cam Beach agreed.

"My wife and I had that same conversation about two weeks ago,'Is it time to hang up our hat?'" Beach said.

'Should we just pull the plug on this?'

Kim Green, co-owner of Kays Wholesale Inc., said she and her husband were in the middle of expanding their business whenthe proposed changes were announced.

She said once they realized what it could mean for their finances, they questioned whether to continue with the expansion.

"It's a million-dollar expansion. I'm petrified," Green said. "I said to [my husband] about a month ago, I said, 'Should we just pull the plug on this? Is it really worth it at the end of the day if there's no risk reward?'"

Green said she's at the point of no return for her expansion but wonders how the tax changes would impede other businesses from expanding.

"I'm very, very disappointed," said KevinMouflier, the CEO ofTourismIndustryAssociationofP.E.I.

Hesaid the majority of P.E.I.'s tourism industry is represented by small business owners and operators who are working toward their retirement.

"They have family members involved and they're very frustrated because they're at the point of saying, 'Why am I doing this?'" he said.

'It sounds counter-productive'

Some business representativessaid they believed the tax changes would make it more difficult for business owners to find successors.

"We all have succession issues," said Ray Keenan, who chairs the United Potato Growers of Canada. "We're trying to deal with it, but this really hobbles us."

"To me, it sounds counter-productive," said IanMacPhersonof the P.E.I. Fishermen's Association.

"If from one hand we're trying to have more owners and operators entrenched and then on the other hand we're restricting, through succession planning and capital gains, the number of people they can sell to," he said.

'The net has been cast too broadly'

Casey said people shouldn't be surprised by the proposed changes because the Liberals campaigned on them during the last election.

But he did say there are issues with the way the proposals were brought to the public and need to be changed.

"I will freely acknowledge that to the extent the net has been cast too broadly, or has been perceived as being cast too broadly, that we missed the mark," he said.

Penny Walsh McGuire, executive director of the chamber of commerce, said she hopes Friday's discussion will help prompt the federal government to reconsider.

"There's enough ambiguity as we heard today around some of the proposals," she said.

"I think we need topause and look at a more comprehensive review that involves the tax community, that involves business owners before this gets ahead of all of us."

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