BC Small Business Owners See Mixed Signs in Budget
Victoria, February 21, 2012 - The provincial government has unveiled a budget that provides some reassurance to BC's small- and medium-sized businesses, while raising the unwelcome spectre of corporate tax increases and failing to honour the commitment to eliminate the small business tax rate.
"We are pleased this province appears to be on track to balance the budget by next year," says Shachi Kurl, CFIB Director of Provincial Affairs, BC & Yukon. "Ninety-one per cent of our members surveyed see this as a priority in strengthening BC's economic security. They are also heartened to see government hold the line on spending."
However, CFIB has major concerns with a potential plan to increase the corporate tax rate to 11 per cent, pending re-evaluation next year.
"We fully recognize the province's current fiscal circumstances and its need to generate revenues. However, we question the message this sends to investors when it comes to BC's commitment to the job creation and economic growth that small- and medium-sized business provides," says Kurl.
Further, this government promised years ago to eliminate the small business tax rate by April 1, 2012. Now, it says it is only willing to review the rate at some unspecified future date.
Budget 2012/13 rests on projections that this government portrays as prudent, but it is small business that is being asked to underwrite their validity. "If government's revenue expectations fall short, it is small- and medium-sized businesses that will be on the hook," says Kurl.
CFIB has called for a freeze on any increases to the Carbon Tax rate after July 2012, and is encouraged government is prepared to review its future.
However, small business owners are still bracing for other increased costs in the next year. Kurl criticized government for not presenting any mitigation of the impact of Family Day.
"While this government has made some hard but necessary choices, it's still a long way from ensuring the ideal conditions small business need to continue to flourish," says Kurl.
Shachi Kurl will be present for Tuesday's budget lock-up and release to provide reaction on behalf of BC's small business sector. To arrange for an interview, please call 604.684.5325, or email at shachi.kurl@cfib.ca
As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by EntrepreneursTM. Established in 1971, CFIB takes direction from more than 108,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.
