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Challenges and Opportunities for Small Business in Nova Scotia

Challenges and Opportunities for Small Business in Nova Scotia. Pre-Budget Meeting with the Honourable Diana Whalen, Minister of Finance. Corinne Pohlmann, Senior Vice President, National Affairs Jennifer English, Senior Policy Analyst, Nova Scotia. February 12, 2014. About CFIB .

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Challenges and Opportunities for Small Business in Nova Scotia

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  1. Challenges and Opportunities for Small Business in Nova Scotia Pre-Budget Meeting with the Honourable Diana Whalen, Minister of Finance Corinne Pohlmann, Senior Vice President, National Affairs Jennifer English, Senior Policy Analyst, Nova Scotia February 12, 2014

  2. About CFIB • Mandate: Big voice for small business • Promote and protect Canada’s free-enterprise economy • Result of tax protest over 43 years ago • 109,000 members with over 5,200 in Nova Scotia • Non-partisan; 100% member funded • One member, one vote policy

  3. State of Nova Scotia’s Economy CFIB January Business Barometer Index of 50 = equal balance of stronger and weaker business expectations Source: CFIB, Business Barometer Index, January 2014

  4. Main cost pressures • Fuel and energy costs (51%) • Tax and regulatory costs (49%) • Bank account and processing fees (39%) Main operating pressures • Insufficient domestic demand (43%) • Management skills, time constraints (22%) • Shortage of skilled labour(19%)

  5. Do you support the planned introduction of a new statutory holiday in Nova Scotia? (% response) Source: CFIB, Nova Scotia Statutory Holiday Survey, January 2014, n= 474

  6. How confident are you that your provincial government has a vision that supports small business? (% response) Source: CFIB, Provincial/Territorial Entrepreneurial Vision Survey, August 2013, n=7155 (NS=279)

  7. How likely would you be to recommend starting a business in your province? (% response) Source: CFIB, Provincial/Territorial Entrepreneurial Vision Survey, August 2013, n=7155 (NS=279)

  8. Nova Scotia’s Uncompetitive Tax Environment – Personal Income Tax Source: CFIB, Shameful Tax Facts, February 2014

  9. Nova Scotia’s Uncompetitive Tax Environment – Sales Tax Source: CFIB, Shameful Tax Facts, February 2014

  10. What should your provincial government focus on to help your business thrive? (% response) Source: CFIB, Provincial/Territorial Entrepreneurial Vision Survey, August 2013, n=279)

  11. How government can help small business thrive – Advice from members • Realize that small business is the cornerstone to the success of the economy and place more consideration in helping these businesses rather than making it harder to succeed. • I'd like it if we didn't have to compete against the government when it comes to wages and benefits. We have lost several employees over the past year who left us to work for the government. We can't match what the government pays in hourly wages! • Reduce the tax burden, and start thinking broadly about the Maritimes or Atlantic provinces to leverage our collective strengths rather than competing amongst ourselves. • We hope you will keep working with CFIB and keep educating yourself on small business. It is the mainstay of our economy.

  12. FiscalRecommendations: Eliminate Bracket Creep Source: CFIB, Bracket Creep Backgrounder, January 2014

  13. FiscalRecommendations: Increase SBTR threshold to $400,000 • Current $350,000 threshold is lowest in Canada • Standard across Canada is $500,000 – only Manitoba still remains at $400,000 • Increase to $400,000 with plan to move toward $500,000 over time

  14. Red Tape Reduction • Red Tape Awareness Week Announcements • Growler sales from brewpubs • Restaurant and Accommodations Industry Sector Bundle Project • What’s next? • Measure burden • Report publicly • Legislate commitment

  15. Pension Reform: Eliminate the Bridge Benefit • Nova Scotia members of the Public Service Superannuation Plan can retire as early as 55. • Plan members are eligible for a ‘top up’ until age 65 when full CPP benefits kick in. • In Nova Scotia, the average ‘top up’ (i.e. bridge benefit) is $8,154 a year. Source: CFIB, The Case for Ending Early Retirement in the Public Sector, June 2013

  16. Pension Reform: Introduce PRPPs • Do not support mandatory increases to CPP • Introduce Pooled Registered Pension Plans (PRPPs) – voluntary enrolment • Fully disclose public sector pension plan liabilities annually • Convert vulnerable pension plans to Shared Risk Model Should CPP premiums be increased to expand benefits? Source: CFIB Mandate Survey, March-April 2013, n=9,977

  17. Recommendations: Fiscal • Set target to achieve balanced budget • Develop long-term plan to reduce the total tax burden • Eliminate bracket creep • Increase Small Business Tax Rate Threshold back to $400,000

  18. Recommendations: Red Tape • Measure, report and reduce overall regulatory burden • Include measurement in budget document • Legislate commitment to red tape reduction

  19. Recommendations: Pension Reform • Eliminate the bridge benefit • Do not support mandatory increases to CPP • Introduce PRPPs • Publicly disclose public sector pension liabilities annually • Convert vulnerable pension plans to Shared Risk Model

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