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P.E.I. needs to build on balance: CFIB releases pre-budget recommendations for 2019

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Charlottetown, February 5, 2019 – As Island Finance Minister, Heath MacDonald begins his pre-budget consultations across the province, the Canadian Federation of Independent Business (CFIB) has released its key recommendations for how the provincial government can move to support small business growth on P.E.I.  For small business owners, it’s all about building on the province’s balanced budget.

 

“Many indicators show the economy is performing quite well in P.E.I. and government revenues have benefited,” said Erin McGrath-Gaudet, CFIB’s director for P.E.I. “For many years, talk of competitiveness was put off because balancing the budget was the ultimate goal.  Now that the books are balanced, it’s time to refocus our attention on creating an environment to sustain and build on recent growth.”

 

At the top of the list is creating a more competitive tax environment.  In spite of recent increases to the basic personal exemption and cuts to the small business tax rate, P.E.I. has not returned to pre-recession tax levels and is still considered a high-tax jurisdiction by most indicators.

 

“We know from small business owners that any tax savings they receive go right back into their operations, often through investing in new equipment or increasing employee wages.  These are productive uses that keep the economy growing,” said McGrath-Gaudet.

 

But, for CFIB, the focus on competitiveness shouldn’t stop at the tax system.  The overall ease of doing business in P.E.I. also needs to be improved.

 

“Looking at future economic growth, it is going to be the jurisdictions who make it easy for small business owners to start up and succeed that are going to thrive.  We can use our small size to our advantage but we need to make a concerted effort to be smart about streamlining and modernizing government’s relationship with business,” said McGrath-Gaudet.

 

To learn more or read the full submission, visit https://www.cfib-fcei.ca/en/advocacy/prince-edward-island-budget

 

For more information, please contact Erin McGrath-Gaudet at (902) 620-4914 or [email protected]

 

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 110,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.