Why farmers are relieved as heck by what Morneau and Trudeau have done

Like taking a furiously boiling pot off a red hot burner, Finance Minister Bill Morneau and Prime Minister Justin Trudeau have rapidly cooled the outrage and upset created by the federal government’s rushed small business tax proposals.

It has been a stunning turnaround from the previous combative and resolute tone the minister and PM were taking as they took on the alleged “rich” who were “making a lot of noise.” They didn’t just change their rhetoric, but said they were abandoning some of the proposed changes that were particularly upsetting farmers. That’s substantial change, and no doubt due to the loudness and ubiquity of the complaints. Morneau specifically acknowledged that he had heard from farmers and was responding to those concerns.

I don’t think farmers are feeling triumphant about this. Most that I have heard from say they feel relieved rather than elated. After all, what they have in front of them now is less disruption than what they were facing before, rather than something positively good. The government has dropped (at least for now) its proposal to limit or prevent the Lifetime Capital Gains Exemption from being used in some circumstances when passing land from a parent to a child. It is still going forward with its plans to eliminate “income sprinkling” to non-contributing members of the family, and the limit the use of cash within a company. So there are still some challenges ahead for some farms.

A few farmers I have chatted with have seemed annoyed and frustrated by the government’s reversal. These are those who hated the government’s proposed changes, but dislike the Liberal party and appeared to be enjoying the grief the government was getting from its ham-handed launch and defence of the proposals. That’s a political concern and not core to the issue at hand. I think most farmers are greatly relieved that this issue has quickly become less threatening.

There will be lots of wrangling over the proposals as the government moves forwards, and the devil is always in the details, but for now, relief has replaced outrage and panic amongst farmers.

 

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Comments

  • Jay Collins

    the words from a devil.

  • Stephen Suley

    If someone held a gun to your head, of course it would feel great when they took it away, that doesn’t mean holding the gun is something to brag about. Tweaks to this [poorly thought out] tax plan doesn’t change the fact the prime minster and his finance minster proposed a terrible plan that targeted and attacked the middle class , small business, and any Canadian who pays taxes. Exactly the opposite they said they would do when they asked for our votes and a mandate. Only after months of extreme public outcry have they started to rollback their horrible ideas. Both of them with their trust funds and french villas. Scumbags

    • Kissing optional

      $200K + a year isn’t ‘middle class’
      Income ‘sprinkling’ is a corporate tax dodge for the rich

      • Harold

        … Information that is in media print or that comes out of the mouths of politicians isn’t always fact based. Morneau seeds his money, and he will not be effected by his tax proposals, and neither will the other filthy Rich. The reason why Morneau had to back peddle is because the proposal was a lie in the first place. Secondly, if he were competent, he wouldn’t need to go back to the “drawing board”; its in front of your face. Your definition of a “tax dodge” needs refinement. The $200K are doctors and such and they are threatening to leave Canada. South of the boarder they are in the process of lowering Taxes for small business and that includes $200K. For your information, small businesses can loose 200K overnight; the staff employ themselves elsewhere.

        • Kissing optional

          I see your logic… if a politician is filthy rich, he/ she cannot propose legislation that is fair to average citizens.
          Warped logic that it is.
          Your defence of income sprinkling to hide paying taxes is a great sell to those that sprinkle their income.
          And doctors that leave to the USA to enable their tax dodging are more than welctto follow the ones that left went Medicare came to Canada. For their part, they will need the cash grab to cover the insurance premiums to pay for their incompetence.
          to them, good riddance.
          The reason for this tax welfare was because banksters wouldn’t risk loaning them investment capital back in the early seventies, now there is so many government incentives, tax dodges are redundant
          I must say, your position on government necessity of propping up the wealthy on one hand while claiming it destructive for legislation to protect the working poor seems to be avoiding looking at the big picture of government role for society.

  • Stephen Suley

    “A few farmers I have chatted with have seemed annoyed and frustrated by the government’s reversal.”

    They are still unhappy because bringing the plan to the table in the first place was an attack on the middle class, on farmers, and small businesses. How do you recovery from attacking all the people who you campaigned to protect?

  • Stephen Suley

    The Liberals are so awesome, thanks for the great tax changes and all the fair ideas for Canadians.

  • Harold

    What is “the big picture of the governments role for society’?
    What is the “big picture” of our role for society? I assume that you know our history. Exactly what – makes the workers poor; if you will say the lack of a higher paycheque – then you haven’t a clue. What form of legislation and tax collection will eliminate the working poor; tell me.
    What happened to the Bank of Canada in the early 70’s; I would be totally surprised if you knew; what did they do?
    FYI, income sprinkling was/is legal and not hidden from the CRA.
    Canadians tax payers try to pay the very least in taxes annually and always strive for the largest in Tax returns; are they Tax dodgers too? Calling someone a tax dodger because the government has found a new way to extort cash from the taxpayers pockets is hardly an enlightened point of view.
    Have you even considered the money that the government wastes annually in spending; do we owe them for this?
    If Doctors pay this new taxation, do they somehow become more competent overnight?This is your logic?
    Your understanding of this issue is flawed to say in the least.
    The last time that I’ve heard nonsense like this was from a NDP and unionist who wanted things granted to them on a government silver platter.

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