York Region small business owners challenge Trudeau

Yorkregion.com
Sept. 11, 2015
By Lisa Queen

Liberal Leader Justin Trudeau’s suggestion that a large percentage of small businesses are run by wealthy Canadians to save on their taxes has left many struggling mom and pop store owners in York Region baffled.

“I’m definitely not wealthy and I’m a small business,” Farhad Hakimi, owner of Coffee Tea Express in Stouffville, said.

Trudeau talked about the idea of cutting taxes for small businesses in an interview Tuesday with CBC’s Peter Mansbridge.

“I think small businesses should be paying less taxes, we just have to make sure that it's done right,” he said.

“We have to know that a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes and we want to reward the people who are actually creating jobs."

While small business owners in York said they aren’t in a position to gauge the accuracy of Trudeau’s comments, they stressed they and others they know aren’t rich Canadians using their shops as a front for tax-savings schemes.

“I don’t know anybody who would open a small business just to save taxes,” Hakimi said.

“People I know who are doing small businesses are just getting by. Maybe he (Trudeau) knows them but I don’t know them.”

Chris Benson, owner of The Cove restaurant in Newmarket, applauded Trudeau’s suggestion of cutting taxes for small business owners but shook his head over the notion that most small businesses are a front for rich Canadians.

“Obviously, as a small business owner, especially one that is struggling, I applaud any breaks we can get. Small businesses are the driving force of the economy, that’s just time-tested over generations,” he said.

“I don’t think there a lot of people that use small businesses to pad their incomes. I think almost all small businesses are legitimate, hard-working, family people.”

While Trudeau’s comment didn’t upset him, Benson said there may be many small business owners who “get their nose out of joint”.

He’s pleased with anything that happens during the election campaign that gets political parties and Canadians thinking about issues facing small business owners.

“This has obviously stirred up dialogue and it has put the focus on us rather than corporations and that’s good,” he said.

Peter Doern, co-owner of Cori’s Cafe in Georgina, said he saw a report quoting studies that appear to support Trudeau’s argument of wealthy Canadians owning small businesses for tax purposes.

But if that’s the case, he said he’s certainly not one of them.

He and his wife, Cori, started the café with their savings and help from family and friends.

They have grown the restaurant from a one-woman soup making business to a cafe and catering business employing five regular employees and other temporary workers.

“Based on our experience, a small business owner works to pay employees, the government and the business itself before putting anything in the personal bank account,” Doern said.

“The upshot is that a tax break for small businesses, much like existing employment subsidy programs like York Works, would help Cori and me immensely. Reducing our corporate tax burden would free us to invest in the most valuable part of our business; our amazing staff.”

Chambers of commerce leaders say they were also confounded by Trudeau’s remark.

“Small businesses in Aurora are the cornerstone of this community. They own and operate retail outlets, develop and maintain websites, provide IT and business services and more,”

Aurora chamber president Judy Marshall said.

“I am not aware of a single small member business owner who does not put their heart and soul into what they do. They constantly have to overcome obstacles and take risks every day. Their businesses are not tax shelters for wealthy people. They work hard to pay taxes and give back through community initiatives. They are people who are passionate and driven because of what they do and are determined to succeed.”

Richard Cunningham, president of the Markham Board of Trade, doesn’t believe Trudeau meant any slight against small business owners.

“But I also don’t understand how he has the knowledge of the wealthiest Canadians using this for small business tax rates,” he said.

More than 90 per cent of businesses in Markham are small businesses valued at less than $2 million and employing fewer than 20 workers, Cunningham said.

“They’re certainly not starting these businesses to keep their taxes down,” he said.

“I think it’s unfortunate he made the comment.”