1. www.cfib.ca A Back to Basics Budget 2013/14 BC Pre-Budget Recommendations to the Select Standing Committee on Finance and Government Services Shachi Kurl - Director, BC & Yukon October 2, 2012

2. www.cfib.ca Who is CFIB? 10,000 independent business members in BC 109,000 members Canada-wide Non-partisan, not-for profit, political advocacy organization Represent all sectors, all regions

3. www.cfib.ca Facts about Small Business in BC More than 80% have fewer than five employees Small businesses represent one-third of BC’s GDP Small businesses employ 56% of BC’s private sector workforce Small business owners protect jobs, even during a recession: In 2008, small business reduced employment levels by only 0.5% By contrast big business reduced employment levels by 8.8% 96% of small businesses give to charitable or community causes. Source: BC Statistics 2011 BC Small Business Profile and CFIB Research Reports

4. www.cfib.ca State of the Economy

5. www.cfib.ca Small Business September Economic Indicators

6. www.cfib.ca Small Business September Economic Indicators

7. www.cfib.ca Small Business Economic Uncertainty Source: CFIB, BC Pre-Budget Survey, September 2012

8. www.cfib.ca Small Business BC Budget Priorities

9. www.cfib.ca Keep BC’s Budget Balanced Source: CFIB, BC Pre-Budget Survey, September 2012

10. www.cfib.ca Deal with BC’s Debt Source: CFIB, BC Pre-Budget Survey, September 2012

11. www.cfib.ca Keep BC Taxes Competitive Source: CFIB Tax Competitiveness Survey, July 2012

12. www.cfib.ca Simplify Taxation Source: CFIB Tax Competitiveness Survey, July 2012 – 613 responses

13. www.cfib.ca Simplify PST Source: CFIB Tax Competitiveness Survey, July 201 “If we sell a pencil to both an architect and an artist that have an SST exemption number. We charge the architect the tax but not the artist, because the tax is based on how a product is used. I can give over 50 examples where we need to know how our customers will use the product. That is, will it become part of the finished product, or be exempt from one of the hundreds of explanatory tax release notices.” - CFIB Small business owner

14. www.cfib.ca Keep Promise to Lower the Small Business Corporate Tax Rate to Zero Small Business Corporate Tax Paid Table “Any business making up to $500,000 per year will not pay any tax in the Province of British Columbia as of April 1, 2012.” – Letter from Hon. Colin Hansen, Minister of Finance, November 2009 Quoted in ‘The Globe and Mail’ on Feb 25, 2012, B.C. Finance Minister Kevin Falcon said he won’t rule out a later elimination of the small-business corporate tax “if it is the smart thing to do”.

15. www.cfib.ca Release Results of BC’s Carbon Tax Review Source: CFIB, BC Mandate Survey, September 2011

16. www.cfib.ca Small Businesses Need Employees Source: CFIB, Labour Shortages and Immigration Survey, September 2012 In a slower economy 58% of our members still reported difficulties finding employees.

17. www.cfib.ca Small Businesses Need the Right Employees Source: CFIB, Labour Shortages and Immigration Survey, September 2012

18. www.cfib.ca  As the economy recovers, BC SMEs will struggle to find and train qualified labour  Create a one-time “training bonus” paid by government to employee (payable at end of training)  Employer would certify completion for employee who has mastered three to five basic/intermediate skills after six months The BC Training Bonus: A made in BC solution to small business’ labour shortage challenges How Can Government Help

19. www.cfib.ca Tax cuts good for business and employees Source: CFIB Tax Competitiveness Survey, July 2012

20. www.cfib.ca Recommendations 1.Balance budget as promised 2.Introduce a debt reduction plan 3.Simplify PST upon its return in 2013 4.Reduce Small Business Corporate Tax Rate as promised. 5.Address small business challenges over looming labour shortages

21. www.cfib.ca Thank you for this opportunity. Questions? Visit www.shopsmallbiz.ca for more details