by MorinvilleNews.com Staff
The Canadian Federation of Independent Business (CFIB) says the Government of Alberta can and should reduce tax rates for small businesses and individuals while maintaining a significant surplus over the next several years.
CFIB is basing its view on a new analysis that estimates that reducing the existing 2% small business tax rate and 4% insurance premium tax rate by half would still fill government coffers with a $600 million surplus annually over the next several fiscal years.
“Like individuals, Alberta’s small businesses are also struggling with affordability,” said CFIB Western Policy Analyst Bradlee Whidden in a media release on Tuesday, July 30. “High interest rates, inflation and low consumer demand are all making it difficult for businesses to pay their bills, staff and keep the lights on with taxes exacerbating an already challenging situation.”
CFIB data indicates 40 per cent (two in five) small businesses are reporting weak to critical financial health, while only 26 per cent of member businesses are reporting strong financial health. The data indicates taxes and regulatory costs are the top business cost constraints.
The business lobby group calls on the Government of Alberta to follow its commitment to reduce personal income taxes for individuals, and address affordability for small businesses by reducing or eliminating the small business tax rate. CFIB also believes insurance costs for all Albertans can be lowered by reducing or eliminating the insurance premium tax.
“Billion-dollar surpluses, while a sign of good fiscal management, present an opportunity to address cost burdens for small businesses with our recommendations costing less than half the price tag of the government’s plan to reduce personal income taxes,” Whidden said. “The Alberta government is in an advantageous position to boost the province’s economy through tax cuts while maintaining a large surplus to pay down debt simultaneously.”
Those interested in reading the CFIB snapshot report can do so online.
Surplus of Opportunity: Tax Reduction in Alberta (cfib-fcei.ca)
