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

Manslaughter conviction for 2015 killing nets 19 more months of jail

Shiloh Davidson pleaded guilty last fall to manslaughter in connection with death of Joe Zecca

Happy Earth Day Mission

Students at Mission’s Windebank Elementary School send a message

Fraser Health patients to see 23% more knee, hip replacement surgeries

First-available surgeon approach will reduce waitlists, B.C. health minister says

Ukrainian Festival returns to Mission

Event set for May 5 at the Heritage Park Cultural and Educational Centre

And the winners are …

Mission presents the 2018 Community Service Awards

UPDATED: 9 killed, 16 injured after van hits pedestrians in Toronto

Toronto police say nine people have died and 16 are injured

As Osoyoos Indian Band flourishes, so too does Okanagan’s wine tourism

Indigenous practices have driven growth of South Okanagan’s wine history and agricultural influence

Judith Guichon steps down as Lieutenant Governor of B.C.

Election decision didn’t make her best moments from the past six years

Vancouver to rake in $30 million in empty homes tax in first year

The tax is the first of its kind in Canada, and was intended to address the city’s near-zero vacancy rate

B.C.’s snowpack continues to increase, melting delayed

River Forecast Centre official says sudden melting further into the season could cause flooding

Another B.C. First Nation voices support for Kinder Morgan pipeline

Simpcw First Nation claims people living on one-third of pipeline route support the project

Protesters argue both sides of B.C.’s SOGI curriculum at teachers’ union office

The sexual orientation and gender identity program was launched as a pilot project last year

Prankster broadcasts fake nuclear threat in Winnipeg

The audio recording on Sunday warned of a nuclear attack against Canada and the United States

ICBC reform aims to slow rising car insurance costs

‘Pain and suffering’ payouts to be capped, major injury limit to double

Most Read