Trade war, payroll tax could be behind B.C. small business confidence dip: pollster

Canadian Federation for Independent Business poll suggests B.C. is fourth most optimistic province

Small business owners in B.C. aren’t feeling too confident this spring, suggests a survey from the Canadian Federation of Independent Business.

Their optimism slipped the most of the Western provinces, with it a 3.6-percentage-point drop to 65.9 per cent since February.

CFIB western economist Aaron Aerts said the drop is concerning, but there’s “nothing to panic about” – yet.

“We consider 65 per cent and up to be relatively healthy,” Aerts said. “So 65.9 per cent is not a bad number.”

He said the dip in confidence could be tied to B.C.’s recent pipeline trade war with Alberta, as well as in anticipation of the new payroll tax coming in next January.

“The payroll tax will be felt in the bottom line… by those who are looking at expanding their businesses.”

He said any concerns are just speculation for now. “It will be really telling once the tax is introduced. Fear of a tax is one thing, it’s another thing to actually pay it.”

The payroll health tax, which replaces Medical Service Plan premiums, will hit all businesses with an annual payroll of more than $500,000. Those with payrolls between $500,000-$1.5 million will pay a yet-to-be-determined rate, while those at more than $1.5 million will pay 1.95 per cent.

The tax, which comes into effect next January, means that businesses already paying health premiums for their employees will pay double the amount in 2019 before MSP is phased out in 2020.

Despite gloomy predictions for the future, Aerts said B.C. companies are still hiring in the short-term.

“We’re seeing healthy hiring intentions,” he said, noting that 27 per cent of small business owners are look to hire, compared to just nine per cent looking to cut back.

“In the short term, I don’t think there’s anything to worry about in terms of employment.”


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Prosecution in Colin John murder trial wrapping up in Duncan

John on trial for stabbing death in Chemainus in 2016

15 new Indigenous teacher training seats added at Cowichan VIU campus

Thorne said the new Indigenous teacher education curriculum that is planned at VIU

Breakfast with Santa a Ladysmith staple

Nearly 700 people took part in this annual charity event

Christmas comes alive in Crofton

Parade entries light up the night and rain holds off

Upset student causes safety plan to be enacted at Chemainus Elementary School

Child’s behaviour results in students being held in classrooms until order restored

VIDEO: Close encounter with a whale near Canada-U.S border

Ron Gillies had his camera ready when a whale appeared Dec. 7

B.C. Lions hire DeVone Claybrooks as head coach

Former Stampeders DC succeeds CFL legend Wally Buono

France shooting: 2 dead, several wounded in Strasbourg

A world-famous Christmas market was put on lock down on Tuesday

Canadian warship witnesses possible violations of North Korea sanctions

Crew members on HMCS Calgary took photos and collected other information

Christine Sinclair named Canadian Women’s player of the year again

This is the 14th time Sinclair has been named player of the year

B.C. man wants trapping laws changed after dog killed

Louis Seguin’s 10-month-old Australian shepherd died in a body-gripping trap last month

Nearly 8,000 homeless in B.C., first province-wide count reveals

Twenty-four seperate counts in B.C. cities found there are thousands of homeless in all corners of province

Mental health issue suspected after spike belts end Island Highway car chase

Woman in her 30s detained after Tuesday afternoon incident in Lantzville

Most Read