CFIB pre-budget survey reveals 72% support reduced spending; only 7% support tax hikes
Regina, December 1, 2016 –Today, the Canadian Federation of Independent Business (CFIB) released its 2017 pre-budget survey results that show a strong majority of Saskatchewan entrepreneurs believe the province’s fiscal challenges should be tackled by implementing significant spending restraint, not tax hikes. The survey results also show 81 per cent of small business owners believe Saskatchewan’s advantage as a business-friendly province still exists.
This week, CFIB presented its pre-budget submission, “Keep Saskatchewan Business-Friendly” to Finance Minister Doherty. “We told the Minister that given the number of challenges Saskatchewan business owners are facing, the worst thing the provincial government could do is hike taxes or introduce new taxes to fund the province’s revenue shortfall,” said Marilyn Braun-Pollon, Vice-President, Prairie & Agri-business. “We fear tax hikes would threaten Saskatchewan’s reputation as a business-friendly province. Instead, the government needs to continue focusing on the spending side of the ledger in order to get back to balance.”
The 2016-17 Saskatchewan Mid-Year Financial Report, which was recently released projects a deficit of $806 million. The provincial government has implemented a hiring freeze, is committed to holding the line on labour costs across all sectors of the public service, but said it would also review the possibility of raising taxes.
When asked what options the Saskatchewan government should implement to balance the budget, 72 per cent of Saskatchewan small business owners support spending restraint (i.e. reducing the size of government through workforce attrition, freezing government wages, etc.). Fifty-six per cent support the province running a modest deficit in 2017-18 with a plan to balance its budget in 2018-19. However, only 7 per cent support the province running a significant deficit in 2017-18 with a plan to balance its budget in 2019-20. Only 7 per cent of business owners believe the government should increase provincial taxes to collect additional revenue.