Alberta promotes itself as the best place to do business, but for many small business owners, the reality tells a different story. Rising taxes, trade difficulties , and soaring insurance costs are placing increasing strain on entrepreneurs across the province. In response, we’ve launched a grassroots petition urging the government to take swift action to ease these financial pressures.
The Rising Cost Crisis Facing Alberta’s Small Businesses
Small businesses in Alberta are facing escalating challenges from all angles as they deal with insufficient demand combined with cost constraints brought on by Alberta’s small business tax rate, education property tax, and insurance premium tax.. A difficult economic climate is intensifying these pressures , making it harder for entrepreneurs to thrive. Meanwhile, provinces such as Manitoba, Saskatchewan, and Prince Edward Island offer lower small business tax rates, putting Alberta at a competitive disadvantage. Without decisive government action at the provincial level, Alberta risks losing its standing as a premier destination for small business.
A Targeted Plan to Strengthen Alberta’s Small Business Economy
Addressing these challenges requires targeted policy reforms that deliver real cost relief. Our petition highlights three key priorities: reducing the small business tax rate to 0%, shifting the education property tax burden away from small businesses, and lowering the insurance premium tax. These measures are designed to alleviate financial strain and create a more supportive environment for entrepreneurs. Importantly, reducingthe small business tax rate to zero would cost the provincial government less than half a percent (0.42%) of its total annual revenue—a modest investment with the potential for significant economic benefit.
If adopted, these changes would increase business confidence, enhance Alberta’s competitiveness, and ease the overall cost burden for small businesses. Ultimately, this approach would help Alberta reposition itself as a leading province for small business growth and innovation.
How CFIB Can Help Your Small Business
Our petition, “Cut taxes for Alberta’s small businesses now!”, calls on the provincial government to enact these critical tax reforms:
- Lower the small business tax rate from 2% to 0%, saving the average small business up to $10,000 annually.
- Reduce the education property tax, as small businesses currently pay 33% of property taxes despite representing only 17% of property assessments.
- Cut the insurance premium tax to 2%, which could save taxpayers $372 million in insurance costs.
These reforms are essential for helping Alberta’s small businesses stay competitive amid rising costs. The petition is addressed to Premier Smith and Alberta’s Members of the Legislative Assembly, inviting business owners across the province to show their support.
Would this kind of support benefit you and your small business? Join as one of our valued members today.
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