Mr. Speaker, two weeks ago, I asked the finance minister about his misguided plans designed to unfairly target Canadian family farms. While Conservatives welcome the Liberals' decision to follow the work of the previous Conservative government, as it announced today that it will bring back their legislation that will lower the small business tax, we are concerned that it is not being clear with its entire plan for Canadian small businesses and family farms.
The Liberals' original unfair tax proposals included draft legislation aimed at discouraging the conversion of dividends into lower-taxed capital gains and measures that would restrict income distribution to family members through an incorporated small business, unless the payments meet a new and vague reasonableness test from the CRA. While the Liberal government suggests that it may not be moving forward with its proposed changes to limit access to the lifetime capital gains exemption, it will still be sticking with its plan to restrict income distribution, conveniently leaving out any detail that would establish how CRA will be able to accommodate for spouses and children genuinely contributing to the family farm or small business.
This morning, I was proud to speak on behalf of Canada's farmers and ranchers during the debate on Motion No. 108, initiated by my colleague from Bow River, that recognized the contributions of Canadian farmers and ranchers and the incredible promise of the next generation of farmers and ranchers. Farming is truly a family-run business, with farmers and their families putting everything they have into the family farm. Children who grow up on farms participate from an early age, and I know this because I was one of them. These young, aspiring farmers are some of the hardest-working and most innovative young Canadians one will ever meet.
The Liberals have treated farmers like tax cheats and young farmers as though they are spoiled trust fund kids, like the Prime Minister and the finance minister. Sorry, it is actually worse. If there will be no clarifications from the Liberal government, it will eventually create an arbitrary system with an unfair tax regime that will slap unnecessary barriers on farmers, small businesses, and their families.
Why do we worry? On July 18, the announcement was made that there were going to be 75 days of consultations. It was just two days later that I was able to speak with some tax advisers and tax lawyers, who talked about the three themes and the same concerns they have. However, what is important is that as two, three, and four weeks went by, they started to look at the all of the different levels and concerns, and that is where all the frustration took place. It was not just the three main things they were discussing; it was all of the different layers associated with the new tax procedures the government had in mind.
How will the Liberals clarify the new rules for income distribution for family-run farms and how can farmers feel confident when it is, indeed, the bureaucrats from CRA who will determine what is and what is not reasonable criteria? This is all so arbitrary. How will the Liberals make sure that their new changes will not, in fact, discourage the next generation of young farmers from being involved with family businesses?