Alberta Advantage in critical condition
Poor public policy choices are job killers, writes Amber Ruddy
This week, the provincial government gave the Alberta Advantage a much-needed transfusion when it hinted that tax relief might be on the way for small businesses, saving our coveted businessfriendly status from certain death. This is a needed and welcome emergency measure, but the patient remains in critical condition, and won’t last long without a more extensive policy transplant.
New survey findings from the Canadian Federation of Independent Business show two-thirds of entrepreneurs feel the Alberta Advantage no longer exists. Only a quarter felt the same way one year ago.
It’s a sign of the dire economic times we’re living in. Alberta’s small business confidence has never been lower than it is right now. According to the CFIB’s Business Barometer index, optimism sits at 26.7 on the 100-point scale. That is 10 points lower than the lowest point in the last recession, and 40 points below the level associated with a healthy economy. Alberta has now set all-time confidence lows in three consecutive months.
In response to the rapidly declining business conditions, a new coalition of 15 business groups, including the CFIB, has reached out to Premier Rachel Notley, urgently calling on her to sit down with business leaders to discuss collaborative solutions. Job creators need to be considered as the government develops policy; after all, they are the lifeblood of the economy.
Offering to cut small business taxes is a start. Entrepreneurs are firmly behind the idea — 87 per cent support a one-point cut in the rate from three to two per cent. When a third of small businesses say they are looking to lay off staff in the next three months, governments need to ease up on all businesses, not just those fortunate enough to be in a position to hire.
A tax cut for independent businesses would allow many struggling businesses to ride out the economic storm just a little bit longer. It may even be enough for some businesses to put off staff cuts. It is — without a doubt — a very important and symbolic step. However, the problem with this transfusion, of course, is that the patient is still bleeding.
Newly elected politicians have had enough time to get acquainted with the current business reality, and the CFIB is thrilled all parties agree on this small business tax-cut measure. But let’s not lose sight of the bigger picture. Although taxation is a major concern for entrepreneurs, red tape, government deficits and employment issues are all challenges that need to be addressed — and soon — if we are to resuscitate the Alberta Advantage.
Earlier this week, Finance Minister Joe Ceci touted Alberta as being “the lowest taxed jurisdiction in Canada.” But there’s more to being business friendly than having marginally better tax structures.
Timing is everything, and major new public policy proposals like implementing new carbon taxes and massive hikes in the minimum wage need to be put on hold. If the government purports to have a job creation strategy, the least they can do is stop killing jobs through poor public policy choices. Forcing businesses to reduce operations, close down or relocate to other jurisdictions is a real possibility when these policies are fully implemented.
We live in a province that prides itself on being the best place in Canada to do business. A place that attracts talent with opportunity. Our competitive business edge was fostered through a hardworking “can-do” attitude, low taxes, and an undeniable entrepreneurial spirit.
Our beloved Alberta Advantage is dying. The government is giving it a temporary reprieve with a small business tax cut, but major emergency surgery is needed or we’ll lose it for good. Business groups are ready and willing to come to the table to discuss creative solutions to some very serious and pressing problems.
We hope the premier will meet us half way.
The Alberta Advantage is simply too important for us to agree to disagree.