The Canadian Federation of Independent Business (CFIB) and Canadian Taxpayers Federation (CTF) are glad the Saskatchewan government put off a small business tax increase, but were still hoping for more in the March 20 budget.The budget is projecting a deficit of $273 million for 2024-25. Expenses are projected to rise by $1.48 billion and revenues are projected to rise $184 million over last year’s budget. CTF Prairie Director Gage Haubrich said the government is increasing spending in all departments but one.“It's very disappointing to see the government continue to fail to balance the budget and spend money it doesn’t have,” said Haubrich.“The government is letting the debt snowball instead of working to pay down the debt and stop wasting so many taxpayers’ dollars on interest payments.”By the end of 2025, the debt will be $31.1 billion. Interest payments on the debt will cost taxpayers $728.2 million this year, working out to $597 per resident.The government projected a small surplus for the fiscal year following, but Haubrich doesn't expect it."They told us that they plan to balance the budget next year. But they told us that last year, it's becoming increasingly more difficult for Saskatchewan taxpayers to trust the government when it comes to their spending," Haubrich said."The government keeps telling us we're gonna balance the budget and then turn around and it's in a deficit."Last year, the province projected a $1 billion surplus, but the latest estimate in the budget says the fiscal year will end with a $482.5 million deficit.As usual, provincial tax brackets have been indexed up to account for inflation, a move that saves most taxpayers $400. Otherwise, the budget features zero tax relief. By contrast, Manitoba cut its own 14-cent-per-litre gas tax on January 1 and Newfoundland and Labrador recently extended their gas tax cut.The government has delayed a scheduled 1% hike of the small business rate by a full year to July 1 2025 instead of hiking it to 2% this coming July as previously announced.“Freezing the small business tax rate is the one tiny bright spot in this budget,” Haubrich said. “But Saskatchewan families need relief too and the government is refusing to help them out.”The delayed tax hike was also welcomed by CFIB director of provincial affairs in Saskatchewan, Brianna Solberg."When we met with the finance minister last month, one of our top recommendations was to decrease the tax rate, just given all the rising costs that small business owners are facing," Solberg said.The director said the fact the province had no new operating debt was "a positive sign." Meanwhile, her members face many challenges."It's harder now to be in business than it was at the height of the pandemic," Solberg said."Inflation, rising interest rates, heavy pandemic debt loads, many business owners who have yet to pay off all of their pandemic-related debt, not to mention labour shortages and supply chain challenges. So the list goes on, it's really difficult."One CFIB ask that the province turned down was to cut the PST on insurance, which was "double-taxed." The organization also wanted Saskatchewan to emulate a program in BC that rebates up to $2,000 to small businesses that must do repairs following crime."Near the top of the list of issues that our members are facing are crime and safety. So, break-ins, vandalism, theft and they all equate to costs," Solberg said."We've heard it happen to business owners who've had their window smashed, and then they get it fixed. And then two weeks later, it gets smashed again."
The Canadian Federation of Independent Business (CFIB) and Canadian Taxpayers Federation (CTF) are glad the Saskatchewan government put off a small business tax increase, but were still hoping for more in the March 20 budget.The budget is projecting a deficit of $273 million for 2024-25. Expenses are projected to rise by $1.48 billion and revenues are projected to rise $184 million over last year’s budget. CTF Prairie Director Gage Haubrich said the government is increasing spending in all departments but one.“It's very disappointing to see the government continue to fail to balance the budget and spend money it doesn’t have,” said Haubrich.“The government is letting the debt snowball instead of working to pay down the debt and stop wasting so many taxpayers’ dollars on interest payments.”By the end of 2025, the debt will be $31.1 billion. Interest payments on the debt will cost taxpayers $728.2 million this year, working out to $597 per resident.The government projected a small surplus for the fiscal year following, but Haubrich doesn't expect it."They told us that they plan to balance the budget next year. But they told us that last year, it's becoming increasingly more difficult for Saskatchewan taxpayers to trust the government when it comes to their spending," Haubrich said."The government keeps telling us we're gonna balance the budget and then turn around and it's in a deficit."Last year, the province projected a $1 billion surplus, but the latest estimate in the budget says the fiscal year will end with a $482.5 million deficit.As usual, provincial tax brackets have been indexed up to account for inflation, a move that saves most taxpayers $400. Otherwise, the budget features zero tax relief. By contrast, Manitoba cut its own 14-cent-per-litre gas tax on January 1 and Newfoundland and Labrador recently extended their gas tax cut.The government has delayed a scheduled 1% hike of the small business rate by a full year to July 1 2025 instead of hiking it to 2% this coming July as previously announced.“Freezing the small business tax rate is the one tiny bright spot in this budget,” Haubrich said. “But Saskatchewan families need relief too and the government is refusing to help them out.”The delayed tax hike was also welcomed by CFIB director of provincial affairs in Saskatchewan, Brianna Solberg."When we met with the finance minister last month, one of our top recommendations was to decrease the tax rate, just given all the rising costs that small business owners are facing," Solberg said.The director said the fact the province had no new operating debt was "a positive sign." Meanwhile, her members face many challenges."It's harder now to be in business than it was at the height of the pandemic," Solberg said."Inflation, rising interest rates, heavy pandemic debt loads, many business owners who have yet to pay off all of their pandemic-related debt, not to mention labour shortages and supply chain challenges. So the list goes on, it's really difficult."One CFIB ask that the province turned down was to cut the PST on insurance, which was "double-taxed." The organization also wanted Saskatchewan to emulate a program in BC that rebates up to $2,000 to small businesses that must do repairs following crime."Near the top of the list of issues that our members are facing are crime and safety. So, break-ins, vandalism, theft and they all equate to costs," Solberg said."We've heard it happen to business owners who've had their window smashed, and then they get it fixed. And then two weeks later, it gets smashed again."
