May 28, 2016
1921
To the Editor:
Like most people, I have a neighbour. I would also consider him a friend. We share lawn tips, consult each other on lot-line plans, even undertake mutual property improvement projects together (although, to be honest, he has all the tools and know-how, and is patient enough to let me tag along and learn).
When we work together, we get along famously - as long as we don’t talk politics. In that arena, there is almost no common ground. I am a lefty … He … is not.
The other day he asked me what ‘my boy Justin was doing?' I was immediately rankled by his use of the word ‘boy’ and the familiar first-name reference, as though we were talking about a strong safety in a fantasy football league, not the duly elected prime minister of our country.
I swallowed my irritation and inquired as to what the problem was. I was expecting the usual fiscal conservative flow to commence but what he hit me with stopped me dead in my tracks. Before I share the problem, I want to provide some background.
My neighbour and his family own a very beautiful and incredibly well-maintained and -operated mobile home and RV resort park. The grounds are immaculate, the facilities (which are extensive) are perfectly kept and widely-used. This place has more than 350 lots, almost all of them occupied.
To put it plainly, it’s massive. Full water and sewer, electricity, roads, pool, community centre, organized activities, the works. In the summer, it employs seven full-time staff. In the winter, three. Some of those staff include my neighbour and his family.
Let me tell you about the work. Each day, I know it’s time to get my butt in gear when I hear my neighbour head off to work. That happens at 7:30 am. He has a two-minute commute to work, so you understand that his day starts at 7:30. Often, we return home at the same time, close to 6 p.m. I do this five days per week, he does it six.
Now, back to the question at hand. And that is, what is my boy, Justin, doing? Well, here’s the problem: The Canada Revenue Agency (CRA) has expanded the scope of what is known as "passive income" to include income generated by businesses exactly like my neighbour's. This would result in their business taxes going from 15 per cent with the Small Business deduction, to between 26.5 per cent and 50 per cent.
Imagine if your business taxes increased 11-35 per cent in a single year. That’s before any personal tax is paid on that income. I shudder at the thought.
Granted, there are reasons for tax hikes. There are investigations of businesses whereby the powers-that-be determine a change is required, but let me tell you, this one makes no sense. Passive income is predicated on the notion that money is being earned with little-to-no work being done by the person earning it. Investments would be passive income.
Each morning at 7:30 my neighbour is active. He is active alongside his family and employees in ensuring his business runs smoothly and at the highest level. Simply meeting the myriad regulatory requirements is a full-time job. That’s before keeping more than 700 residents happy.
Parks across Huron and Bruce counties and the province have in the past weeks received huge tax bills.
My neighbour and I don’t agree on politics. But we agree on this. This is about hard-working people getting seriously hammered as a result of a rule that just doesn’t fit the situation.
Parks are a large part of our tourism economy in Huron and Bruce counties. We, collectively, enjoy their presence, whether we have a lot at a park or simply benefit from the economic stimulus they provide our communities.
If this tax treatment remains, we stand to lose these parks. And if that happens, no one wins.
Quinn Ross
Bayfield
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