By MorinvilleNews.com Staff
As the Alberta Legislature prepares to reconvene on Oct. 28, the Canadian Federation of Independent Business (CFIB) has called on the provincial government to address the rising costs and ongoing affordability challenges straining small businesses across the province.
“Alberta small businesses are grappling with unprecedented challenges, from high costs to low consumer demand,” said CFIB Western Policy Analyst Bradlee Whidden. “It’s essential for the government to prioritize policies that reduce these burdens and make it more affordable to operate in our province.”
Recent CFIB data from September 2024 reveals that nearly two-thirds (30%) of Alberta’s small businesses are operating under considerable financial strain, with owners reporting they are in weak or critical condition. This alarming trend has led over half (52%) of the province’s small business owners to advise against starting a business at this time, citing the cost of doing business as the primary deterrent (92%).
Key concerns impacting Alberta’s small businesses include taxes and regulations, with 74% of owners identifying these as significant pain points. Other CFIB data points indicate rising insurance premiums (69%) and wage pressures (67%) as significant concerns.
The growing financial strain of Alberta businesses leads CFIB to ask the province to do something to alleviate escalating costs critical drivers of Alberta’s economy and local cthreatening business viability.
The Alberta government has projected multi-billion-dollar surpluses in its latest budget, providing an opportunity for tax and debt reductions. To support small businesses, CFIB recommends reducing or eliminating the small business tax rate, currently at 2%, and raising the inclusion threshold from $500,000 to $700,000. CFIB also suggests lowering the Insurance Premium Tax, which is currently set at 4%, and introducing a new 8% personal income tax bracket, as previously promised, while maintaining a stable minimum wage framework without increases.
“Given the province’s strong fiscal position, the Alberta Government is in a good position to provide cost relief to both residents and businesses,” Whidden said. “By reducing these financial burdens, the government can help businesses not only survive but thrive, creating jobs and sustaining local communities.”
CFIB has an online petition urging the Alberta government to take meaningful action to reduce the cost of doing business and improve overall affordability.
