Conservative MP has support from other opposition parties.   Ottawa—A Conservative MP's bill to ease the tax burden on farmers transferring their operation to a family member has moved ahead in Parliament with the support of the opposition parties and at least one Liberal MP. Manitoba MP Larry Maguire's bill has reached third reading stage in the Commons and a vote should come after further debate. Its aim is to ease the burden of transferring a farm, fishing operation or any small business to a family member without the exorbitant capital gains tax burden currently imposed. “The bill would correct a massive injustice within the Income Tax Act that unfairly punishes individuals when they sell their qualifying small business, farm or fishing operation to their own family,” he said. The “treats the sale differently than if it were sold to an absolute stranger. If a farmer were to sell his farm to a stranger, he could use his capital gains exemption on the sale, resulting in an effective tax rate of 13.39 per cent, he said. “However, if the farmer sold his farm to his son, that sale would be recorded as a dividend rather than a capital gain, and the farmer would pay 47.4 per cent in tax. That is a huge difference, and I think we can all agree that it is completely unfair.” The bill “sends a strong message of hope to young farmers who want to carry on what their family started and to other young family entrepreneurs included with them. Most of all, it would bring tax fairness to the Income Tax Act.” The Canadian Federation of Agriculture, Grain Growers of Canada and numerous other farm organizations and plenty of business groups and tax experts support the bill. Liberal MP Wayne Easter, former farm leader and cabinet minister who now is the chair of the Commons finance committee, said the bottom line is what this bill means for the community. “The backbone of the community is small businesses, farmers and fishermen, and especially those who can pass a business down from generation to generation. This is an issue of tax fairness and should be supported fully.” If the government has a problem with the way the changes work, it “should put its corrections forward in a ways and means bill in the future, but they should pass this necessary bill now and support farmers, fishermen and small business,” he said. NDP and Bloc Quebecois MPs support the bill and the lone Liberal to speak against didn't really address the issue. Kevin Lamoureux, Parliamentary Secretary to several cabinet ministers, said corporations could easily misuse the provisions in the bill but he didn't explain how. Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.