September 5, 2017
Rt. Hon. Justin Trudeau, P.C., M.P. Prime Minister of Canada
80 Wellington Street
Ottawa, Ontario, K1A 0A2
Dear Prime Minister,
My name is Jake Leguee, and I am a farmer in Saskatchewan. I am writing this letter to express my grave concerns with your plan for what you refer to as “tax fairness”. While I am not an accountant or a tax expert, I know enough to be apprehensive about the changes you and Mr. Morneau plan to enact.
I take offense to being labelled as a tax cheat. I, along with my parents, my sister and my own young family, along with our two full-time employees (one being a brother in law), all work together in this wonderful business we call farming. We grow food, we work hard to improve our community, and we are excited about the prospect of a fourth generation someday having the opportunity to take over this farm.
Your tax changes will severely challenge our ability to pass on this farm. You will penalize my parents for passing their land on to me. Land that they paid for a long time ago; land that I will never sell. I will never realize the capital gains on that land. Why should my parents be taxed for passing it on? Why should I be taxed for someday passing it on to my own children?
Farming is a tough business. We rely on the weather to provide for us; even if we do absolutely everything right, one bad storm can take it all away. It is very difficult to manage a farm well enough to have the opportunity for the next generation to take over, even without having to worry about taxes. Notice how drastically the number of farms has collapsed over the past century?
Don’t get me wrong; all small businesses have similar challenges. Succession is hard. Passing along a business to your children should be celebrated by government. Small business is the backbone of this great country. They provide jobs, and innovation, and growth for all Canadians. We small business people don’t have pensions, or employment insurance, or health benefits. We must cover all of that on our own. Furthermore, we provide those services to our employees, who also work hard in the community and provide for their children. So much rides on the success of our businesses.
You talk about closing loopholes, and creating tax fairness. What you are missing is that the playing field already is out of whack. Employees have a lot of benefits that we small business people don’t have. And that’s okay. We can live without these benefits for the opportunity to build something. We aren’t just out there to make money – we do what we do to build a legacy. We do it to provide jobs, and look after our employees. We do it to give our children the opportunity to take the next step, and do amazing things we could never even dream of.
As a child, I spent most of the time I wasn’t in school helping out on the farm. It was hard work, but I loved it. It was how I could spend time with my Dad, who worked seemingly every hour of every day. The farm didn’t pay me to save money on taxes, it paid me because I earned it. This taught me the value of hard work, and how to save money and prepare budgets for it. None of this had anything to do with cheating taxes.
My farm provides a living for seven people, not to mention my own little son and our next child that is on the way. But our farm does far more. As we grow, we purchase equipment, tools, parts, inputs, and so many other things our farm needs. Along with the other farms in this area, we provide jobs for hundreds of people, from mechanics to engineers to biologists and sales people. This farm isn’t a tax haven; it, along with every other farm and all the other small businesses around us, are powering Canada’s future.
Don’t take that away.
Mr. Prime Minister, please reconsider your tax fairness proposal. The future of this great country we call Canada depends on it.