B.C. businesses will shoulder $6.5B due to government taxes, programs: report
A new report released by the Greater Vancouver Board of Trade on Wednesday suggests B.C. businesses will shoulder $6.5 billion in additional costs due to government taxes and other programs.
The report, titled “Counting the Costs,” shows that between 2022 and 2024, health taxes, corporate taxes, health taxes, paid sick leave and the carbon tax will add on billions in direct costs. It also highlights the impact of a rise in minimum wage, the top personal tax rate and a new statutory holiday.
At The Ruby on Johnson in Victoria, business is OK. Chris Jones, the restaurant's owner, worries about increasing costs.
"Rising cost of goods, rising cost of labour, (there are) a lot of the things the government has implemented but we are paying for," Jones explained.
In a statement, the organization said growth, entrepreneurship and investment is being impeded as a result.
The breakdown of costs between 2022 and 2024 is as follows:
- Net health taxes: $4,001,000,000
- Corporate income tax: $1,607,000,000
- Paid sick leave: $1,200,000,000
- Business share of carbon tax: $515,000,000
- Savings (SME tax rate & PST on non-residential electricity: $873,000,000
- Total additional costs: $6,450,000,000
Jones called the number surprising.
"I think $6.5 billion is a scary number because we're already in more or less a break-even environment, a lot of small businesses are right now," he said.
For Bridgitte Anderson, the president and CEO of the GVBOT, it is a call to action.
"Now is the time to take action to ensure we're supporting the growth of businesses in our province." she told CTV News.
According to the government, in 2021, 98 per cent of all B.C. businesses were small enterprises.
In the face of what GVBOT calls a challenging environment, it is making the following recommendations.
- Allow small and medium businesses to earn more, before they have to pay the Employer Health Tax
- Introduce PST exemptions for things like software and equipment
- Recycle carbon-tax revenues into local tech and emissions-reduction efforts
- Actively seek opportunities to reduce costs for small and medium enterprises
"It's like death by 1,000 cuts and businesses are saying we simply can't afford to continue in this way," added Anderson.
Both Jones and the Greater Vancouver Board of Trade say they'd like to see targeted measures for small and medium businesses. The premier seems to agree, but is talking about even more specific measures.
At an unrelated event, David Eby was asked about what measures may be on the way.
"We are working with, for example, with business improvement associations to support those businesses in the downtown core that are seeing decreased foot traffic. They're seeing increased issues around mental health and addiction that we're tackling as the government, but we know they need extra support," added Eby.
Jones said he'd like supports a bit broader and focused on reducing costs.
"Everyone is nervous. I do think good, sharp operators will survive, but when you look around our cities, you're seeing a lot of 'for lease' signs now," said Jones.
The report comes as several economists report an economic downturn in the country is likely.
CTVNews.ca Top Stories
BREAKING Some BMO clients face outages in Canada, U.S.
Bank of Montreal clients on both sides of the border Thursday morning have reported outages for banking services.
NEW How car thefts are impacting your insurance, even if your car isn't stolen
As the number of auto theft incidents rises in Canada, so have insurance premiums for drivers, even the ones whose vehicles aren't stolen.
B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
'I'm not wealthy': Ontario senior shocked she owes $40,000 in capital gains after gifting land
An Ontario senior who wanted to help her daughter and grandson eventually own homes one day decided to give them two lots on her property as a gift—but she didn’t know it would eventually cost her tens of thousands of dollars.
opinion Trump's Republicans falling far behind in fundraising, infrastructure
In his latest column for CTVNews.ca, Washington political analyst Eric Ham explains how and why Republicans -- up and down the ballot -- are falling far behind Democrats in both fundraising and infrastructure.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
Canadians' interest in buying EVs fades as barriers, concerns remain: J.D. Power
A new study finds fewer Canadians say they're interested in buying an electric vehicle as concerns remain about limited driving ranges, high prices and a lack of charging stations.
McDonald's says US$18 Big Mac meal was an 'exception' and their prices haven't risen that much
McDonald’s is fighting back against viral tweets and media reports that it says have exaggerated its price increases.
Oilers rally to beat Stars, tie Western Conference Final
With the Edmonton Oilers down two goals late in the first period of Game 4, Rogers Place was quiet, fans seemingly bewildered at the early, quick scoring of the Dallas Stars and the slow start by the home team. Ryan McLeod's marker with six-and-a-half minutes in the opening frame left changed all that.