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

Langley equestrian vaulter dominates at BC Games

Danae Moore takes home four gold medals, winning every individual event

2018 Aldergrove Fair photo gallery

Good times from pony rides and petting zoo to free MainStage concerts

Langley-based Giants name new associate coach

Jamie Heward brings international credentials to the bench.

VIDEO – UPDATED: Cloverdale’s cancer fundraising country concert surpasses the mark

Organizers confirmed Sunday night that Gone Country - Here for the Cure raised more than $651,000.

TWU-as-Team-Canada wins three in Brazil

Spartans are representing Canada in the inaugural FISU America Games

Update: Police probe Toronto shooting that killed 2, injured 12; suspected gunman dead

Paramedics said many of the victims in Danforth, including a child, were rushed to trauma centres

Deadly L.A. market shooting started with domestic feud

A domestic incident ended after a car crashed into a pole outside Trader Joe’s market

Another heat wave to hit B.C.’s south coast

Temperatures expected to hit the mid-30s in some areas this week

Sunken duck boat to be raised after deadly Missouri accident

17 people died over the weekend in a deadly boat incident

Man extradited to Canada in Burnaby killing, following arrest in South Korea

28-year-old Jui-Kai Weng was charged with second-degree murder and attempted murder

Canada beats Triple Crown for Canada Cup softball title

National team’s championship is first at B.C. tournament since 1996

Record high in Japan as heat wave grips the region

The temperature in a city north of Tokyo reached 41.1 degrees Celsius (106 degrees Fahrenheit) on Monday, the highest ever recorded in Japan.

Feds looking at ways to tackle wave of gun violence in Toronto: Minister

Toronto mayor John Tory spoke to the press following a mass casualty event in Toronto.

Most Read