January 17, 2006 –
By Jeff HaywardStaff Writer
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UXBRIDGE — Local business owners have a variety of messages for campaigning federal political parties when it comes to issues they feel will affect them most, and tax cuts are right at the top of the list.
Shaun Israelstam, owner of Jerseys Restaurant on Brock Street and also chairman of the Uxbridge Chamber of Commerce, said he has felt the tax crunch even after his short time as owner of Jerseys over the last 18 months.
“The government should be giving (business owners) some tax rebates, or some credits,” said Mr. Israelstam. “How about (businesses) paying no GST for six months?”
He noted that he would like to see federal parties recognize that expenses, such as gas and electricity, are growing for owners.
“When rates go up, (Jerseys) doesn’t increase its prices to customers,” he explained. “We swallow the difference.”
Ann Candelario, owner of Sixty-Six on Brock in Uxbridge, said the current payroll tax structure should be reconsidered. Payroll taxes are paid by both employers and employees.
“A payroll tax is one of the worst forms of taxation… one that is regressive, profit-insensitive and kills jobs,” said Mrs. Candelario, adding she employs 22 staff members.
She said that reducing the payroll tax would allow businesses to offer more jobs.
“Businesses that hire more staff are hit with higher taxes because payroll taxes must be paid on every employee, regardless of whether or not revenues and profits go up accordingly… A lower payroll tax would go a long way towards encouraging businesses to expand their investment in staffing levels, which would lead to more jobs, higher levels of productivity and increases in disposable income,” said Ms. Candelario.
Scugog Chamber of Commerce president, Craig Taylor, also wants to see smaller businesses get a break.
“You can’t compare what taxes are for small businesses compared to what (breaks) corporations are getting,” said Mr. Taylor, adding corporations seem to be favoured for tax relief.
He said that many members of the Scugog Chamber have voiced their concerns about high business taxes, and the issue has also become a focus of the Ontario Chamber of Commerce.
“It’s always a tax issue,” Mr. Taylor said of chamber concerns during previous elections, noting campaign promises have been made and broken. “I just want the (elected) government to be accountable.”
Betty Penny, of Penny and Associates in Port Perry, is the founder of the Durham Home and Small Business Association (DHSBA). While she agrees tax cuts would be helpful, she had another suggestion for the next federal government.
“The government needs to do something to help small businesses not just with tax cuts but with paperwork reduction and processes, the ‘kiss’ principle… keep it sweet, simple, and short,” explained Ms. Penny.
“The government could help by reducing the red tape, form-filling, appeal processes and make it easy to get up-to-date and accurate information,” she added. “Often I hear businesses say that we are so over-regulated and paperwork burdened that it is almost impossible to be profitable and to keep up with it all.”
Nancy Rogers of Nancy Rogers, Writing and Editing Services in Port Perry said she tries not to get “too political”, however noted some issues are important to her.
“Accountability seems to be something that lacks in most higher government levels and it is a big issue with me,” explained Ms. Rogers.
“As for taxes, be it business or personal, I feel a break would be nice, but acknowledge that funds are needed for important sectors such as health and education,” she noted, adding if the money is actually going towards these services, she feels they should not be cut drastically.
“Definitely no raise in taxes, please,” she said.
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