Tag: small business

2017 Fall Economic Statement

Yesterday, the Government of Ontario released its 2017 Fall Economic Statement, which provides an update on the government’s finances and progress on key commitments since the release of the 2017 Budget. The government is continuing to project a balanced budget in 2017–18 and ongoing balance in 2018–19 and 2019–20, unchanged from the 2017 Budget forecast. The province also boasts a steadily declining  unemployment rate which reached  5.9 percent in October 2017, and has been below the national average for 31 consecutive months.  

The fall statement forecasts real GDP growth of 2.8 percent in 2017, up from 2.3 percent in the 2017 Budget. Ontario’s net debt-to-GDP peaked  in 2014–15 at 39.3 percent, however it is projected to be 37.3 percent in 2017–18, lower than the 37.5 percent forecast in the 2017 Budget.  

The government also made announcements related to Strengthening Ontario’s Small Businesses, Encouraging Youth Employment and Modernizing Apprenticeships for Small Businesses.

What does this mean for business?

Strengthening Ontario’s Small Businesses

The Province is announcing more than $500 million in new initiatives, over three years, for small business. Most notably the province is proposing a 1 percent cut in the small business Corporate Income Tax (CIT) rate from 4.5 percent to 3.5 percent. The Fall Economic Statement also includes enhanced financial support for small and medium‐sized fruit and vegetable farming businesses and investments to enhance the vibrancy of communities and main streets.

Our Response: As part of the Ontario Chamber Network’s Bill 148 advocacy work, the Oakville Chamber of Commerce has consistently urged the government to provide a comprehensive package of offsets, which includes a reduction in the small business tax rate. These measures will help to provide small businesses compensation for their limited access to capital financing, and the pressures placed on their revenue streams from Bill 148’s increased labour costs.

Encouraging Youth Employment

Ontario will provide $124 million over three years in supports for youth ages 15 to 29 years, working with Employment Service and Youth Job Connection to support employer hiring and retention beginning January 1, 2018. Through Ontario’s Employment Service program, a small employer with fewer than 100 employees would receive a $1,000 incentive for hiring a young worker and a $1,000 for retaining that worker for six months. Additionally, if workers are hired through Youth Job Connection, a separate program that recruits youth facing employment barriers, employers would receive retention payments of $1,000 after three months, with a further $1,000 payable after six months for each worker.

Our Response: In partnership with Canadian Centre for Economic Analysis (CANCEA) the Ontario Chamber Network conducted an independent economic analysis modelling  the impacts of Bill 148,. Evidence suggests that a 10% increase in the Ontario minimum wage could decrease youth employment by 2% to 6 % over time. Considering this challenge, funding for small business to link youth with the labour market is a step in the right direction.

Modernizing Apprenticeships for Small Businesses

The Province is proposing adding five service‐sector trades to the eligibility list for the new Graduated Apprenticeship Grant for Employers: Hairstylist, Cook, Horticultural Technician, Baker/Patissier, and Appliance Service Technician. Additionally, the government is proposing supporting multiple employers to pool together and form consortia to hire, register and train their apprentices for skilled trades.

Our Response: In our report Talent-in-Transition, the Oakville Chamber of Commerce recommended that the government collaborate with business and education stakeholders to increase employers’ awareness of the consortium model. By allowing for multiple employers to join and form hiring consortium, apprentices will see an enhanced system flexibility while improving support for the development of a workforce that is responsive to Ontario’s local labour market needs.


Rethink Tax Changes | #ProtectGrowth

Rethink Tax Changes #ProtectGrowthThe government’s proposed tax changes will affect all private business owners

The government has proposed the most significant tax changes we’ve seen in 45 years. These tax changes will affect all private business owners, regardless of their level of income, size of business or conformity with fiscal rules.

Our asks

  • We want the government to rethink its proposed tax changes to protect the growth of small businesses across Canada.
  • We want the government to launch meaningful consultations with the business community to review tax policy without unfairly targeting independent businesses.
  • We want the government to consider a comprehensive review of the Canadian tax system with a view towards fairness and simplification for all taxpayers and increasing the competitiveness of all businesses.

Our submission

The Canadian Chamber of Commerce has submitted their policy submission to Finance Canada on the proposed tax changes. It outlines the problems and offers solutions.
Read the submission. 


Have your say

While the government’s consultation period ended on October 2, you still need to voice your concerns.  Call on your MP to ensure no harm is done to small businesses across Canada. 

Click here to write your MP today. When prompted for a password, please enter chamber2017.

Click here to sign our petition. The petition will be sent to ministers Morneau, Chagger, Bains and Monsef.

Please consider adding your voice by shooting a video and sharing it via protectgrowth@chamber.ca. Videos should tell the story of how proposed changes will impact their business. Watch a sample.  

Learn more.

 


Business Tax Changes Are Coming – Make Your Voice Heard

Changes to Corporate Taxation: Your MPs need to hear from you! 

Last month, the Federal Government released a discussion paper on tax planning using private corporations. The proposals in this paper focus on three main areas: tax deferrals, income splitting and capital gains taxes.

The complexity and rigidity of the proposed changes will not only add to the cumulative regulatory burden facing small businesses, it will also cost small business owners thousands of dollars and discourage business investment. The government says these changes only target “the highest income earners” who have “unfair tax advantages”, but in fact this will affect hardworking, honest business owners of all income levels.


Your MPs need to hear how these proposed changes will affect businesses throughout Oakville and across Canada. Contact MP John Oliver and or MP Pam Damoff to make your voice is heard! Be sure to contact them before September 5 to make sure they’ve heard you before parliament resumes.  


“Neutralizing” Tax Deferrals 

The government wants to neutralize the “tax deferral advantage” associated with making passive investments through a private corporation. Business owners can leave income in a corporation (where it is taxed at a lower rate than personal income) so that they can reinvest that income and help their business grow. Keeping income in a corporation also allows businesses to cope with fluctuating businesses cycles. The government wants to eliminate any advantages from this practice by eliminating certain refunds and restricting eligibility for certain tax rates. These proposals stand to undermine legitimate investment practices and discourage business growth.  


Reforming Income Splitting


The Federal Government is also proposing changes to income splitting taxation. Any individual who receives split income that is determined to be unreasonable will be taxed at a higher rate. An amount would be considered unreasonable to the extent that it exceeds the average sectoral salary. This proposal neglects the unofficial functions that many individuals receiving split income perform in small businesses. For example, a spouse of a small business owner may perform several business-related tasks outside of their job title which explains their higher-than-average salary. 


Corporate Tax Reform Affects All Business Owners


Unfortunately, changes to income splitting and tax deferrals are not the only changes under consideration. The Federal Government’s sweeping proposals include additional reforms such as a restriction on the lifetime capital gains exception.

As a whole, these proposed changes would impact all Canadians who own and operate private companies, including family businesses and incorporated professionals. Ultimately, these proposals would increase the complexity of the tax rules applicable to private corporations and reverse many of the tax policies which have fostered business growth for decades. The government says they are targeting “the highest income earners” who have “unfair tax advantages”, but that is simply not true: these changes stand to affect hardworking, honest business owners of all income levels.

It is imperative your MPs hear from you directly on how these changes will affect your business before their annual Liberal caucus retreat on September 5. We encourage you to contact your MP directly with your concerns; you can reach MP John Oliver here and MP Pam Damoff here.

For more information on the proposed tax changes, contact your tax planner or contact the chamber so we can put you in touch with one of Oakville’s many professionals. 

Questions or concerns?

If you have any questions or concerns, feel free to reach out to Faye Lyons, Vice President of Government Relations & Advocacy at 905-845-6613 x 211 or faye@oakvillechamber.com .



The Unintended Consequences of a $15 minimum Wage

The provincial government has introduced legislation that will increase the current minimum wage by over 30% from $11.40 to $15.00 per hour over the next 18 months.

Small business owners are expressing concern about the size and, in particular, the timing of the changes. Chamber members share the Government’s desire for broadly inclusive growth. However, in order to achieve this, we need to ensure that we are not risking job losses, rising consumer costs, and economic hardship as a result of over-regulation. The Ontario Government’s announcement of the Fair Workplaces and Better Jobs Plan which proposes numerous changes to current labour and employment standards legislation will go to committee over the summer months. 

The recommendations include:
  • Raising Ontario’s general minimum wage to $14 per hour on January 1, 2018, and then to $15 on January 1, 2019, followed by annual increases at the rate of inflation
  • Mandating equal pay for part-time, temporary, casual and seasonal employees doing the same job as full-time employees; and equal pay for temporary help agency employees doing the same job as permanent employees at the agencies’ client companies
  • Expanding personal emergency leave to include an across-the-board minimum of at least two paid days per year for all workers
  • Ensuring at least three weeks’ vacation after five years with a company
  • Updating employee scheduling rules, including requiring employees to be paid for three hours of work if their shift is cancelled within 48 hours of its scheduled start time.
The cost of all of these benefits will be borne by small business owners.  We believe the government has not yet fully understood the unintended consequences of these changes.   Chamber members have expressed their frustration and concern over rising costs and over regulation.

“It will impact our business cash flow and the costs will have to be passed on to the consumer.  Because taxes with source deductions are going to be higher. We are not against an increase if it is done in increments and not as a total 32% increase over a short period of time.” – Noel Lourenco, Boffo’s

Many affected employers have told us that these changes will have the opposite effect of what the Government is looking to achieve.  One small business owner told us that “Since higher costs for delivery will be passed down from the supplier to the merchant, it will result in inflation. I will be forced to pass the higher costs on to the consumer.” We have also heard from members who say the impact will be felt throughout their businesses.

“If something isn’t done this dramatic and unrealistic increase may force us to close our doors after being a Kerr Street merchant for the last 18 years.” – Dean MacLean, The Mermaid and The Oyster

Higher costs for employers will inevitably lead to higher prices for consumers.  If the businesses cannot transfer these new costs to the consumer, employers will be looking to reduce overhead by cutting staff hours and possibly cutting the number of staff.  This will reduce the job opportunities available to youth and other low-skilled individuals who need employment.

While we understand the commendable intentions of these proposals, it is clear that the government can’t legislate prosperity.  Instead of creating more opportunity for workers, changes like these often have the opposite effect by reducing jobs and increasing the cost of living. That is why the Oakville Chamber and the Chamber network with the Keep Ontario Working Coalition  have called on the government to conduct a comprehensive economic impact analysis.

As the provincial government moves this legislation through the committee process over the summer we urge them to truly understand the economic impact of these changes that have great potential to hurt job creation, consumer costs, and economic growth.  

How will this affect your business? Let us know: faye@oakvillechamber.com 


Ontario Premier to Address Oakville and Burlington Business Community at Chamber Luncheon

The Premier of Ontario, The Honourable Kathleen Wynne, will speak at a luncheon hosted by the Oakville and Burlington Chambers of Commerce on Friday, January 13. The Premier will be presenting on “A Balanced Plan to Build Ontario Up for Everyone”, outlining the Ontario government’s plan to grow Ontario’s economy and create jobs. “Our members represent a cross section of businesses of all sizes and sectors. This demonstrates their desire to be engaged within the community and to hear our political leaders first hand” stated Caroline Hughes, Chair of the Oakville Chamber of Commerce. “We are very pleased the Premier has accepted our invitation to meet with our members.” Ms. Hughes further commented “Leaders tell us they very much appreciate speaking directly with our members. It gives them an opportunity to listen and interact with people in the real world who face the day-to-day challenges of operating a business.” Over the course of the summer both the Oakville and Burlington Chambers, along with Chambers of Commerce and Boards of Trade across the province, engaged in the Small Business: Too Big to Ignore campaign, which highlighted the important contributions of small businesses to our communities and investigated the top barriers to small business growth. Following the campaign, the Ontario Chamber Network released their report Obstacles and Opportunities for Small Business in Ontario. The report identified and offered solutions to the most pressing challenges that Ontario small business owners face; including infrastructure deficits and the rising cost of doing business in Ontario. “A key role for Chambers of Commerce is to bring people together and ensure there is meaningful dialogue” stated Marty Staz, Chair of the Burlington Chamber of Commerce. “This is why both the Burlington and Oakville Chambers of Commerce are pleased to be able to offer this unique opportunity for our Members and their guests to hear the Premier speak. I am sure they are keen to hear directly from Ms. Wynne about her vision for the province and how it will affect the business community.” “I’m looking forward to Premier Wynne’s visit to Oakville” stated Kevin Flynn, MPP for Oakville. “Her choice is a clear indication of the respect the Oakville and Burlington Chambers of Commerce have earned in Ontario’s economic circles. This visit offers the ideal opportunity to engage with their vibrant business communities on the progress we’re making as we continue to lead Canada, the United States, and all the G8 countries in business and economic growth.” Event Details Date: Friday, January 13, 2017 Time: 11:30am – 1:30am; The Premier speaks from 12:00pm – 12:30pm followed by a moderated Question and Answer forum Location: Oakville Conference Centre (2515 Wyecroft Road) Tickets: Members $35; Non-members $55 Register online through the events calendar, by phone at 905-845-6613, or e-mail info@oakvillechamber.com The Premier of Ontario, The Honourable Kathleen Wynne Kathleen Wynne is Ontario’s 25th Premier. Since taking office in February 2013, some of Premier Wynne’s accomplishments include the largest infrastructure investment in Ontario’s history and completing the single-largest climate change initiative in North America by eliminating coal-fired electricity generation in the province. She also introduced a ground-breaking plan to stop sexual violence and harassment. Premier Wynne’s economic plan for Ontario builds on her number-one priority: growing the economy and creating jobs. Her four-part plan invests in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. In addition to infrastructure investments in roads, bridges, transit, schools and hospitals, her plan is investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement. Premier Wynne serves as Minister of Intergovernmental Affairs. During her first year as Premier, she also served as Minister of Agriculture and Food. Prior to becoming Premier, she served as Minister of Municipal Affairs and Housing, Minister of Aboriginal Affairs, Minister of Transportation and Minister of Education. First elected to the Ontario Legislature in 2003 as the MPP for Don Valley West, Premier Wynne was re-elected in 2007, 2011 and 2014. She became the leader of the Ontario Liberal Party in January 2013.  On June 12, 2014 Premier Wynne’s government was re-elected with a majority mandate. Before becoming an MPP, Premier Wynne served as a trustee on the Toronto District School Board. Prior to that, she led citizens’ groups in a number of grassroots community projects and played a major role as an organizer and facilitator. Premier Wynne has lived with her partner, Jane, in North Toronto for more than 25 years. She has three children and three grandchildren.

The Success of Small Business Will Determine the Success of Ontario’s Economy

small-biz-report

The latest report by the Oakville Chamber of Commerce and the Ontario Chamber of Commerce  highlights the contributions of small businesses to the provincial economy, while also identifying, and offering solutions to, the most pressing challenges that small business owners face. The report’s recommendations are the result of detailed consultations over the course of six months held by 25 chambers of commerce and boards of trade with hundreds of small business owners throughout the province as part of the Ontario Chamber Network’s Small Business Too Big To Ignore campaign. The campaign revealed that the three major barriers that small businesses face are Business Education Tax (BET) rate reductions, a lack of access to the workers employers need, and government funding alignment on infrastructure projects. “In Oakville, local businesses are working hard to expand their operations, however they are facing some big obstacles including the rising cost of doing business in Ontario,” said Caroline Hughes, Chair of the Oakville Chamber of Commerce. “The results of our 2016 Advocacy Survey showed that our members find rising costs to be the most significant factor impacting business and industry. Additionally, 64% of respondents believe that traffic congestion for getting staff to work is a significant obstacle for business, and almost 70% of respondents believe that current regulations are unreasonable and excessive. It is critical that regional governments work with the provincial and federal government to ensure that investments and programs are targeted to reduce operational costs and to support business growth in our region,” added Hughes. The report also highlights that businesses with fewer than 100 employees make up 98 percent of total Ontario businesses and two-thirds of private sector employment in Ontario. They contribute approximately 28 percent to the provincial GDP and created 87.7 percent of the new jobs nationally from 2005 to 2012. Given the significance of small businesses to the provincial economy, the Ontario Chamber Network urges the government to take immediate action to implement the following three recommendations in the near term:
  1. Continue the scheduled Business Education Tax (BET) rate reductions
  2. Develop a single access point for all government-funded workforce, training, and employment services.
  3. Have all three levels of government commit coordinated infrastructure dollars to connect all Ontario businesses to the 21st century global economy.
“Small businesses in Ontario are being held back by a diverse set of challenges that need to be addressed by all three levels of government.” said Allan O’Dette, President and CEO of the Ontario Chamber of Commerce. “We are encouraging the provincial government to implement our report’s recommendations so that we can ensure that our economy will have sustained economic growth for many years to come.” added O’Dette. The Oakville Chamber of Commerce, along with the Ontario Chamber Network, encourages the provincial government to work closely with the employer community to implement the recommendations in the report. These recommendations will feature prominently in the Ontario Chamber Network’s advocacy work leading up to the 2018 provincial election. At that time, the advocacy organization will evaluate the political platforms of each party with a particular consideration as to how their campaign commitments align with the interests of small business owners in Ontario. Read the report: Obstacles and Opportunities for Small Business in Ontario

Save on Shipping with Canada Post through October for Small Business Month

We’re pleased to share that, as part of Small Business Month, our good member, Canada Post, is thanking Canada’s small business owners with free shipping on Tuesdays in October. This special offer entitles customers to one domestic Xpresspost™ or one Expedited™ parcel shipment at no cost every Tuesday in October. The offer is open to Canada Post Solutions for Small BusinessTM customers. To sign up for the program, customers can go to canadapost.ca/freetuesdays. A promotion code will appear on the page each Tuesday in October to take advantage of free shipments available online. Happy shipping!