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

Faulty wiring blamed for Chilliwack barn fire Sunday morning

One civilian injured attempting to extinguish blaze on Ballam Road

Chilliwack’s Jordyn Huitema leads Canada to FIFA U-17 World Cup quarter-finals

Canada has gone 2-0 in the tournament with wins over Colombia and the Korean Republic.

Chilliwack Chiefs rally from three down to beat Powell River Kings

The Chiefs followed the come-from-behind win with a loss Sunday afternoon versus Alberni Valley.

11 years sought for Burnaby man who killed girlfriend with hammer, burned her body

Manslaughter sentencing hearing starts Monday in BC Supreme Court in Chilliwack for Ryan Armstrong

Chilliwack Chiefs add forward Jacques Bouquot

An ankle injury held Bouquot to 5 games with Wenatchee, but he’s healthy and ready to roll.

Six students arrested, charged in sex assault probe at Toronto all-boys school

The school’s principal, Greg Reeves, described the video of the alleged sexual assault as ‘horrific’

Second person dies following head-on collision in Surrey

Paige Nagata of Abbotsford was in crash on Nov. 4 that also killed maternity nurse

Jamie Koe, other curlers kicked out of bonspiel for being too drunk

‘You don’t kick around other players’ bags, it’s disrespectful and we expect better of our players’

Homicide victim found under B.C. bridge identified as Hells Angels member

Chad John Wilson was one of four men arrested in Spain in 2013 on allegations of smuggling cocaine.

B.C. Sikh temple vandalized with racist graffiti

Racist graffiti was found on the side of the building this morning

Shots fired near Chicago hospital, multiple victims: police

Police say at least one possible offender has been shot

B.C. to allow Uber-style ride hailing services to operate in late 2019

Fee will be applied to fund options for disabled people

Burnaby woman’s car crash death now considered a homicide

Nicole Hasselmann, 34, was killed and a man was sent to hospital after the crash

Chocolate lab missing along Coquihalla

Brad Gibson is asking for help locating his missing dog.

Most Read