CFIB Lists ‘Worrisome’ Promises In Parties’ Platforms
Leading into Monday’s Federal election, the Canadian Federation of Independent Business has given their opinion on all of the parties’ platforms. Without giving an endorsement, the CFIB found things to compliment and critique on all the platforms, in terms of the effect such policies would have on small business owners.
Essentially, CFIB members do not support political promises that could add extra expenses for businesses. Jasmin Guenette, VP of national affairs for the CFIB, says businesses can’t afford a bigger tax burden coming out of the pandemic. He says only 39 percent of small business owners across Canada are back to “normal” revenues.
“We ask the federal government to be prudent in adding any costs on the shoulder of small businesses,” says Guenette. “In the context of the pandemic, many businesses are still struggling to keep their head above water.”
Therefore the CFIB does not like the Liberal plan to work with provinces to implement a nationwide 10-day sick leave standard for workers.
“It’s unfair if the burden of this program will be on the shoulders of small businesses,” says Guenette.
“Any costs on top of what they have to pay at the moment is quite worrisome.”
The CFIB is also concerned with the Conservatives’ pledge to reform the employment insurance program to include benefits for gig workers and others currently not covered by EI. The CFIB says small businesses can’t afford to pay more federal contributions, especially with CPP contributions set to increase soon.
“This is more or less like a new tax on businesses,” said Guenette.
When it comes to the NDP platform, the CFIB takes issues with two pledges that, at first glance, seem to be aimed at bigger corporations and the very rich. But the CFIB believes it could have a ripple effect on small businesses as well.
First is the NDP pledge to increase the capital gains inclusion rate from 50 percent to 75 percent. Such a measure is calculated to bring in billions more each year to the government treasury.
But the CFIB is concerned that this will cost small business owners who want to sell their business when they choose to retire.
“Most small business owners count on the selling of their business for their retirement,” says Guenette. “And if they have to pay more taxes when they sell their business because it will be considered a capital gain, then it’s less money in their pocket for their retirement.”
Another NDP pledge that has the CFIB worried is their plan to increase the federal corporate tax rate from 15 percent to 18 percent. Even though this corporate tax rate doesn’t apply to small business owners – who pay 9 percent federally – the CFIB is worried that raising one business tax will eventually lead to even more tax increases.
“If the general tax rate for businesses increases from 15 to 18, the worry there is the ripple effect,” says Guenette.
“The number one priority of small businesses in Canada is economic recovery. So, it’s not the time to increase taxes on any business. It’s not the time to implement new, costly, programs.”
When it comes to the Green Party, the CFIB takes issue with its pledge to increase the carbon tax. Guenette says a lot of small farms are facing huges increase in fuel costs already because of the carbon tax in certain promises.
“When businesses pay their fuel bill, they have a huge carbon tax to pay,” he says. “And in many cases, there are no alternatives for them to use other products.”
“The tax is quite high and it’s hurting small family farms.”
The PPC party, meanwhile, is promising to severely reduce the number of immigrants and refugees accepted into Canada each year-from 350,000 down to 100,000-150,000. As the CFIB points out, a lot of businesses rely on immigration and the temporary foreign worker program for labour. Guenette says, if anything, Canada needs more immigrants, not less.
“The situation we are in right now is a shortage of labour,” he says. “And one solution to change the trend and make sure businesses have the workers they need is to have a better immigration system
Whichever party (or parties) form government after Monday night, the CFIB hopes the new federal government will do something about “red tape.”
“Year in and year out, red tape is one of the top concerns for small businesses,” says Guenette.
The CFIB says it has become very complex and time-consuming trying to own a small business these days because of all the permits, paperwork, rules and regulations to keep track of. Unlike big corporations, says Guenette, small business owners don’t have staff or entire departments to handle these complications-most business owners have to do it themselves.
“Sometimes it’s not easy to understand which permit you need, when it’s time to renew…what type of documents you need to provide. It can really be a nightmare, especially for businesses that have to deal with different departments.”
‘It feels like there is always paperwork to be done.”
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