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

Council candidate Dave Westley says he ‘loves Mission’

Says Mission is a beautiful place filled with an eclectic and diverse group of beautiful people

Randy Cairns seeking another term as Mission school trustee

Plans to advocate for new capital projects

VIDEO: Tornado reported near Hayward Lake in Mission

Environment Canada investigates, says a ‘possible’ tornado took place

Mark Davies to run for Mission council seat

A strong believer in positivity, government transparency and building personal connections

Carla Janis vying for council seat in Mission

Says we have to be cognizant of environmental stewardship as we grow

VIDEO: Messages of hope, encouragement line bars of B.C. bridge

WARNING: This story contains references to suicide and may not be appropriate for all audiences.

Fresh-faced Flames fend off Canucks 4-1

Vancouver drops second straight NHL exhibition contest

VIDEO: B.C. deer struggles with life-preserver caught in antlers

Campbell River resident captures entangled deer on camera

Scheer pushes Trudeau to re-start Energy East pipeline talks

Conservative Leader Andrew Scheer questioned the Prime Minister over Trans Mountain project

Mistaken identity: Missing dog claimed in Moose Jaw belongs to another family

Brennen Duncan was reunited with a white Kuvasz that was found in Saskatchewan

Abandoned kitten safe and sound thanks to B.C. homeless man

‘Jay’ found little black-and-white kitten in a carrier next to a dumpster by a Chilliwack pet store

Police chief defends controversial marijuana seizure

Advocates said cannabis was part of an opioid-substitution program in Vancouver’s Downtown Eastside

Trans Mountain completes Burrard Inlet spill exercise

Training required, some work continues on pipeline expansion

Supporters of B.C. man accused of murdering Belgian tourist pack courtoom

Family and friends of Sean McKenzie, 27, filled the gallery for brief court appearance in Chilliwack

Most Read