Toronto, November 1, 2016 – With the Canadian economy flat-lined, today’s Federal Economic Update offered no new measures specifically directed at small business. In reviewing today’s announcement, the Canadian Federation of Independent Business (CFIB) noted its support of several infrastructure and immigration changes, but remains concerned with the size of the deficit and the absence of measures to reduce the tax and regulatory burden on job creators.
Need for a balanced budget plan
While the government announced a decrease in the forecasted deficit to $25.1 billion, small business owners across the country continue to be troubled by the growing debt. “We would have liked the government to have laid out a concrete plan to get the deficit back down to zero. Middle class job creators need the predictability and confidence in the future that comes from a balanced budget,” said Dan Kelly, President of CFIB.
“Small businesses are behind well-managed infrastructure spending, and the infrastructure bank, on the surface, looks interesting,” noted Kelly. “While CFIB is generally supportive of private/public partnerships, it would be troubling to have any links to public or public sector pension funds like CPP.”
Progress on immigration
CFIB is supportive of the government’s plan to make it easier for businesses to get the kind of workers they need from around the world. While today’s announcement streamlines the process for skilled workers, CFIB hopes there will be a similar plan in the coming months for the low-skilled workers Canada depends on as well.
Priorities for the 2017 budget
Small business owners remain concerned about the impact of rising Canada Pension Plan premiums as a drag on the economy and a hindrance to job creation. “To reduce the negative economic consequences of increasing CPP premiums, we urge the federal government to support small businesses by reinstating its promise to cut the small business corporate tax rate to nine percent and implement an Employment Insurance youth hiring credit,” added Kelly. “We hope that the 2017 Budget will contain some concrete measures to help small businesses, and hence the Canadian economy as a whole, succeed.”
To arrange an interview with Dan Kelly, please contact Kiara Morrissey at 416-222-8022, 647-464-2814 or [email protected].
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.