Dispatches from the road: San Francisco

I’m settled into my quaint little hotel in the North Beach area of SF and it’s 4:30 am here (my mind thinks it’s 8:30 am).

Regarding the provincial budget, there’s a lot of negative feedback this am about the slight increases to taxes. In the TJ:

Andreea Bourgeois of the Canadian Federation of Independent Business said some small business operators may close because of the tax hike.

Now, I like the CFIB but this is just plain silly. Bernard Lord and Jeannot Volpe cut the small business tax to the lowest rate in the country and the performance of our small businesses (in terms of new start ups and job creation) was second worse in the country. The average small business pays something like $20k in provincial corporate taxes annually. You think a few thousand more is going to put business operators ‘out of business’. C’mon. That’ just ridiculous.

No the problem here is not these tiny tax hikes but where the money is going. I would support tax hikes, deficit spending and even service cuts if it was linked to a long term economic growht strategy.

This budget is nothing more than incrementality. Spend a little more ‘here’ and ‘there’ which is exactly what the Tories did before them.

Right now the bold language coming out of the Self Sufficiency task force has zero correlation to the actions of government.

Some are suggesting, including posts to this blog, that after the Self Sufficiency task force completes its work, then we will see the ‘massive’ changes promised by Francis McGuire. I hope so.

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0 Responses to Dispatches from the road: San Francisco

  1. MonctonLandlord says:

    One could assume that she is refering to the property tax hike seen recently, commercial rents for small businesses are thru the roof.

    My income property (a basic $116k house) in Riverview, is considered non-owner occupied, property tax is $3616. Or a whopping $300 per month in property tax this is incorporated in the rent.

    This example is transferable to SMEs (tourism operators, B&B, corner stores, gift shops, restaurants). The operating expenses makes it difficult to make a reasonable profit. Doesn’t it?

    This might explain why the new condo building was scrapped, the builder saying “there is no market for condos in Dieppe”. Really? in Toronto people buy condos and rent them out as an investment as the tax is the same whether you live in it or not…

    In Dieppe, a $250k condo, the non-owner occupied property tax would be $8000+ (or $650+ per month in property tax alone) I doubt any student at CCNB Dieppe, wanting an appartment upgrade to condo would pay $2000+ per month in rent, that is the real reason the project failed: the double tax on property (municipal and provincial) is unacceptable, again, we are the only province in the country like this.