Most Canadian small businesses pay much more than their U.S. counterparts to comply with regulatory requirements, according to CFIB’s 2013 version of Canada’s Red Tape Report. The report coincides with the launch of Red Tape Awareness Week™, and provides a first-ever direct comparison of regulatory compliance costs in the U.S. and Canada. The U.S. comparison was sponsored by KPMG Enterprise™.
- The smallest businesses in Canada (fewer than five employees) pay 45% more per employee ($5,942) to comply with government regulation than their U.S counterparts ($4,084).
- The total cost of regulation to Canadian businesses is $31 billion a year.
On both sides of the border, business owners say that regulatory costs could be reduced by about 30% while upholding the important health and safety objectives of regulation. This would mean a $9 billion yearly stimulus to the Canadian economy.