Policy Brief December 2016

Transcription

1 Plicy Brief December 2016 Ashley Ziai, Plicy Analyst 1 Industry Canada, Key Small Business Statistics, June 2016, (accessed, Octber 5, 2016).

2 Small business wners are the middle class 2 Figure 1 Hw cnfident are yu that the federal gvernment has a visin t supprt small business and entrepreneurship? (% respnse) Dnt knw, 3 Very cnfident, 2 Nt cnfident at all, 38 Smewhat cnfident, 18 Nt very cnfident, 39 Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber 2016.

3 Small business wners are the middle class 3 Figure 2 Hw d yu rate the perfrmance f the current federal gvernment n the fllwing? (% respnse) Reducing the ttal tax burden n businesses Cntrlling spending n gvernment prgrams Cntrlling spending n public sectr wages and benefits Reducing regulatry burden n businesses Cnsulting n issues that are imprtant t small business (e.g. envirnment, EI, innvatin, etc.) Investing in public infrastructure (i.e. bridges and rads) Adpting internatinal free trade agreements Very Gd Gd Pr Very Pr Dn t knw/n answer Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber CFIB, Mnthly Business Barmeter, Nvember 2016.

4 Small business wners are the middle class 4 Figure 3 Business Barmeter Index and GDP Index (0-100) Business Barmeter Index m/m%ch, SAAR Real GDP Surce: CFIB, Mnthly Business Barmeter, 623 respnses, Nvember CFIB, Help Wanted Reprt, August Idem. 5 CFIB, Mnthly Business Barmeter, Nvember 2016.

5 Small business wners are the middle class 5 Figure 4 T what extent d yu agree r disagree with the fllwing statements? (% respnse) I feel I am cntributing mre than my fair share f taxes t the federal gvernment I feel the federal gvernment s persnal incme tax cuts will leave mre mney in peple s pckets which allws them t spend mre in my business I feel the federal gvernment is n the right track t grw the ecnmy and help my business succeed I feel the federal gvernment is ding what it can t help supprt my small business Strngly agree Smewhat agree Smewhat disagree Strngly disagree Dn't knw/n answer Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber 2016.

6 Small business wners are the middle class 6 Figure 5 Hw effective wuld the fllwing ptential measures by the federal gvernment be in helping t strengthen yur business perfrmance? (% respnse) Reducing the federal small business crprate incme tax rate frm 10.5% t 9% Intrducing a lwer EI premium rate fr smaller businesses (e.g. currently emplyers pay abut $2.63 per $100 f insurable earnings, r 1.4 times the rate emplyees pay) Freezing CPP/QPP premiums at current levels Reducing gvernment regulatin and paperburden Reintrducing the Small Business Jb Credit Balancing the budget (deficit prjected t be $29.4 billin in ) Very effective Smewhat effective Nt very effective Nt effective at all Dn t knw/n answer Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber CFIB, 2015 federal budget and electins survey, 2014.

7 Small business wners are the middle class 7 Figure 6 If the federal gvernment were t reduce taxes, what pririty wuld yu give t reducing the fllwing taxes? (% respnse) Payrll taxes (EI, CPP/QPP, etc.) Persnal incme taxes Crprate incme taxes Sales taxes (GST/HST) Fuel taxes High pririty Lw pririty N pririty Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber Office f the Parliamentary Budget Officer, Fiscal and Ecnmic Impacts f Curtailing the Planned Tax Cut fr Small Business, May 2016, ess%20tax%20rate%20en.pdf (accessed, Nvember 11, 2016).

8 Small business wners are the middle class 8 Reduce small business and emplyers taxes s we can reinvest in ur staff and in ur industry. - Health care services member, New Brunswick Figure 7 Annual regulatin cst per emplyee, by size f business (in 2014 dllars in Canada and the U.S.) 6,683 Canada U.S. 4,240 3,621 2,720 2,664 1,911 1,820 1,511 1,462 1,326 Fewer than r mre Number f Emplyees Surces: Calculatins based n CFIB s Survey n Regulatin and Paperburden (cnducted in 2014, n=8,867); data frm Statistics Canada; Survey n Regulatin and Paperburden in the United States (cnducted by Ipss Reid in 2012, n=1,535) and data frm the United States Bureau f Labr Statistics. 8 9 CFIB, Mandate 262, April CFIB, Mandate 264, September 2016.

9 Small business wners are the middle class 9 Figure 8 Number f crpratins claiming the Small Business Deductin, 2011 Thusands f businesses Taxable incme ($ Thusands) Surce: Canada, Department f Finance, Tax Expenditures and Evaluatins Due t extra tax burden placed n my business, I am finding it very difficult t keep ging. - Retail member, Prince Edward Island Taxable Capital Limits

10 Small business wners are the middle class 10 Figure 9 Which frms f taxatin affect the grwth f yur business the mst? (% respnse) Payrll Taxes (e.g. EI, CPP/QPP, WCB, etc.) 73 Crprate Incme Taxes 43 Persnal Incme Taxes 39 Sales Taxes (e.g. GST/HST, PST) 39 Prperty/Capital Taxes 37 Dn t knw 2 Surce: CFIB, 2015 Federal Budget and Electins Survey, 6,876 respnses, Octber-Nvember CFIB, Small Business Views n CPP Expansin, August 2016.

11 Small business wners are the middle class Liberal Party f Canada, Opprtunities fr Yung Canadians: (accessed: December 6, 2016). 12 CFIB, Insuring Emplyment, September During the 2015 electin campaign, the Liberal Party f Canada had estimated their verall yuth jb strategy t cst $455 millin in bth and ; $435 millin in ; and $125 millin in (accessed Nvember 11, 2016).

12 Small business wners are the middle class 12 Figure 10 Please indicate t what extent yu supprt r ppse the fllwing prpsed changes t EI (% respnse) Extending length f EI parental leave frm 12 t 18 mnths (e.g. weekly benefit payment wuld be reduced and paid ver an extended perid) Strngly supprt Smewhat supprt Smewhat ppse Strngly ppse Dn t knw Surce: CFIB, Emplyment Insurance Survey, based n 7,880 respnses. March 16-April 18, Freezing CPP rates, cutting small business taxes, n increase in EI rates. The mre mney yu remve frm small business wners, the less we can ffer t ur emplyees. Mre mney in everyne's pcket (emplyers and emplyees) is a way t stimulate the ecnmy...we spend the mney IF we have it. - Oil and gas member, Alberta CPP and EI are t much. I already pay my emplyees gd wages - why is it n me t supplement their CPP? Maybe the respnsibility shuld be n them t put what they want int CPP fr their future. - Plumbing & heating cmpany, British Clumbia

13 Small business wners are the middle class 13 Figure 11 Which f the fllwing principles shuld the federal gvernment fllw with regards t new spending? (% respnse) As gvernment sees fit, 5 Dn't knw, 9 Only with equivalent spending cuts in ther areas, 55 Only when the deficit is eliminated, 31 Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber It is critically imprtant t balance budgets and cntrl expenses. If the Canadian ecnmy is perfrming, Canadian businesses will fllw suit. - Machine manufacturing member, Québec 14 CFIB, Our member s pinin survey, CFIB, Mandate 263, June 2016.

14 Small business wners are the middle class 14 Figure average banked sick days (number f days) fr federal gvernment emplyees, by age grup Surce: CFIB, the Cst f Banking Sick Days in the Public Sectr, April CFIB, The Cst f Banking Sick Days in the Public Sectr, April 2016.

15 Small business wners are the middle class 15 Gvernment pensins need t be mre in line with thse available t peple emplyed in the private sectr. Every extra dllar spent by the gvernment must ultimately be paid fr by taxpayers (individuals and businesses). Please live within ur means. - Cnstructin member, Ontari CFIB, The Bridge Benefit: Hidden Secret t Retiring Early in the Public Sectr, March CFIB, Taking the Temprary Out f the TFWP, 2014.

16 Small business wners are the middle class 16 We need wrkers. [Changes] t TFW prgram have hurt my business grwth. We need a permanent slutin t allwing permanent immigratin t fill these jbs in the service sectr. - Fast fd restaurant member, Prince Edward Island Figure 13 Annual training investment (in $ billins), by type f training, SMEs invest $14 billin in training 9 Infrmal Frmal Surce: CFIB, Training in Yur Business Survey, 6,705 respnses, September t Octber 2014.

17 Small business wners are the middle class 17 Figure 14 Have yu used a gvernment-spnsred training prgram during the past three years? (% respnse) Yes, 16 N, 84 Surce: CFIB, Training in Yur Business Survey, 6,705 respnses, September t Octber CFIB, Small Business, Big Investment: Imprving Training fr Tmrrw s Wrkfrce, ESDC, EI Cmmissiner fr Emplyers news bulletin, August As a nte f cmparisn, the EI Small Business Jb Credit had an estimated savings f $550 millin fr emplyers in 2016 and (accessed, Nvember 11, 2016). 22 Idem.

18 Small business wners are the middle class CFIB, Our Member s Opinin Survey N. 79, December 2016.

19 Small business wners are the middle class 19 Figure 15 Which f the fllwing best captures yur views n hw the current federal gvernment shuld apprach the ne-fr-ne rule? (% respnse) The federal gvernment shuld keep the ne-fr-ne rule in place and develp ther ways t reduce red tape The federal gvernment shuld eliminate the ne-fr-ne rule and develp ther ways t reduce red tape The federal gvernment shuld keep the ne-fr-ne rule in place but d nthing further t reduce red tape The federal gvernment shuld eliminate the ne-fr-ne rule and d nthing further t reduce red tape Surce: CFIB, 2017 Federal Budget Survey, 6,362 respnses, September-Octber 2016.

20 Small business wners are the middle class 20 Table 1 Business wners cmments Ability t be aware f any prgrams that are available. Only infrmatin we get is frm CFIB, thank yu. The gvernment knws where we are fr taxes, why can't they send infrmatin, even nline, fr small business prgrams that are available t us. (Cntracting member, British Clumbia) Gvernment cntinues t expect small business t d all their administratin (EI, GST, payrll deductins, safety prgrams, etc.) yet there is n cmpensatin in the frm f reductin n taxes r anything. It is easy fr gvernment t implement but what abut thse f us that t d all the administratin f it? (Manufacturing member, Alberta) Gvernment needs t cme ut f the glass windws in their ffices and bring themselves dwn t the level f the cmmn public t fully understand the issues f everyday life in trying t make ends meet. (Retail member, Newfundland) Wuld like t see mre crdinatin between the Federal and Prvincial levels f gvernment. (Health services member, Nva Sctia) The gvernment des nt understand the amunt f resurces required t cmply with all the regulatins (e.g. it takes ne full day per week fr ne f ur bkkeepers t calculate taxes). This shuld be charged back as an expense.(management cnsulting member, Ontari) The existence f red tape is the bane f all small business. We must always be aware and cmpliant but the gvernment in turn desn't advise small business f all that is ffered r available t help stay in business.(autmtive repair member, Ontari) There is a significant administrative cst fr SMEs. There is a need t reduce the burden fr small business. The amunt paperwrk and required expertise simply t quality fr gvernment supprt prgrams place SMEs at a significant disadvantage. (Manufacturing member, Québec) 24 CFIB, Beynd the Big Idea: Redefining and Rethinking the Innvatin Agenda, Octber 2016.

21 Small business wners are the middle class CFIB, Mandate survey 264, September 2016.

22 Small business wners are the middle class 22 We can have ur cake and eat it t. There n reasn we cannt develp natural resurces and run efficient, prfitable businesses while prtecting r enhancing the envirnment. But it must be dne with sensible versight and measurable gals and impacts, and nt driven by mindless idelgy. - Veterinary clinic member, British Clumbia CFIB, 2016 Natinal Envirnment Survey, July-August Idem.

23 Small business wners are the middle class CFIB, 2015 CRA reprt card, 2015.

24 Small business wners are the middle class 24 Figure 16 Existence f Business Successin Plan by Current Business Owner (% respnse) N, 51 Yes, a frmal written plan, 9 Yes, an infrmal plan, 40 Surce: CFIB, Passing n the Business t the Next Generatin, CFIB, Passing n the Business t the Next Generatin, 2012.

25 Small business wners are the middle class 25 Figure 17 Shuld wners f small crpratins be allwed t defer capital gains taxes when transferring the business t their children? (% respnse) Undecided, 7 N, 9 N interest, 1 Yes, 81 Surce: CFIB, Mandate ballt 253, December 2013, based n preliminary results: 4,681 respnses. 30 CFIB, Mandate 262, April 2016.

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27 Small business wners are the middle class CFIB, Mandate 258, March 2015.

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