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Tough times for small business

A higher minimum wage, increased Canada Pension Plan premiums, a sluggish economy, it’s a lot for some business owners to take. For some, it could be too much. Businesses need a break.

A higher minimum wage, increased Canada Pension Plan premiums, a sluggish economy, it’s a lot for some business owners to take. For some, it could be too much.

Businesses need a break.

Last week the Alberta government announced its plans to fulfill an NDP campaign promise of a $15 per hour minimum wage by 2018.

Alberta’s minimum wage is going up by one dollar per hour on Oct. 1 to $12.20 per hour. The minimum wage will again rise by $1.40 on Oct. 1, 2017 to $13.60 and an additional $1.40 on Oct. 1, 2018 to reach $15 per hour

The increase comes at a bad time for many businesses and the Province should be doing more to ease the pressures many face, not add more.

It’s a bad time to raise costs on small businesses.

It’s not just a rising minimum wage businesses have to deal with. There’s also the carbon levy set to take effect in the new year and a looming increase to Canadian Pension Plan premiums.

Add in a slumping provincial economy that has left families and consumers with less money in the wallets, and businesses are facing a host of challenges.

Small businesses are important economic drivers and the lifeblood of communities across the country.

According to a Statistics Canada report from last month, small businesses with 99 or fewer employees account for a large majority of the Alberta’s private sector jobs. There are 1,127 small businesses, compared to 263 with 100 to 499 employees and 133 with more then 500. At the national level, small businesses make up 97.9 per cent.

Small businesses are the foundation of the economies at the local, provincial and national levels.

Governments need to ensure their policies don’t inflict too much harm on them.

At the same time, it must be there for the most vulnerable in our society.

Yes, people who are struggling to get by on minimum wage can use the help and there should be regular increases.

The Province has kept its promise to raise minimum wage – a promise they campaigned and won on.

However, it may be too jarring. In the end, government policies should be predictable and reasonable and not overly onerous for businesses.




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