SASKATOON — Small business owner Miranda Young said small-time entrepreneurs like her and her partner have been struggling to keep their doors open. She said that small business owners in the province need relief, not the possibility of facing a higher small business tax on June 30 next year.
Young, a registered interior designer, spoke on Tuesday, Oct. 8, outside their shop on Main Street about the challenges she and her partner, Jo Van Young, faced after opening in March 2020. They were forced to shut down due to the COVID-19 pandemic.
Alt Haus is a furniture and interior design shop with a coffee house. The Youngs manage the business hands-on with the help of five employees.
"It was unfortunate timing because we started during a difficult time, and things haven't gotten easier for small businesses. We didn't qualify for any financial assistance or loans when we started just because we didn't have the financials in the background to back us up [then]. Didn't have any government support at all," said Young.
"It's been a challenge staying open throughout these years. And that was hard to manage then. But we've been lucky because we didn't have those loans to pay back like [many] other small businesses like us do. I have seen a lot of businesses, a lot of friends of mine, that have had small businesses had to close over the last year."
Young added that hearing some of their friends, who are also business owners, deciding to close their shops was heartbreaking, especially since small businesses show the diversity of communities in their goods and services.
"We don't want to be surrounded by corporations. We want to enjoy our communities, and when you're supporting a small business, you're supporting your neighbours. Yeah, it's been difficult for those around us to pay back those loans. We had a lot of uncertainty from the pandemic, and we've been working hard to keep our doors open," said Young.
"We want to continue, no matter what happens. We will make it happen, but we've had to adapt and lean on our community. Everyone's trying to support local, but mortgages have gone up. Rents have gone up. Groceries have gone up. Everything's more expensive than it used to be, and people have less disposable income."
She understands that the goods they sell are not necessities, like food and paying bills, that families must prioritize. However, they still think of other people, especially their five employees, whom they have to pay a decent wage after the provincial minimum wage increased from $14 to $15 early this month.
"People are going to budget to pay those bills before they go and support a small business [like ours], which I totally understand. As small business owners, we also want to ensure we're paying our staff a living wage and that they can afford to pay their bills. That is difficult, too, because if you're not making as much money and you're still paying people the same amount, it can be challenging to move forward and gain momentum as a small business," said Young.
"We're up against corporations who pay their workers less. They price their goods lower because they're buying in bulk. They have more money that they can use to sustain that. So, as small business owners, we're just like keeping our heads above water, doing what we can. So, more taxes are not really what we need right now. We need help staying open. We need more support. We don't need more taxes."
Young said learning about the Saskatchewan NDP's plan of freezing the small business tax is a welcome relief. "We're happy about that, and we hope that goes forward. A little bit of stability would be a good thing. It would go a long way for us."
NDP promises no tax hike
Aleana Young, who is not related to Miranda, said the Saskatchewan NDP would freeze small business taxes if allowed to form a government in the next four years and continue listening to small business owners.
"We have guaranteed to freeze small business taxes for our four-year term, and that's because we're listening to small businesses. A Saskatchewan NDP government will keep that small business tax freeze and keep it frozen over our mandate for four years. We will ensure that small businesses can catch up, stay open, stay in business, and get ahead. And we're also going to continue to listen to small businesses," said Young, NDP's candidate for the newly-created Regina South Albert constituency.
When asked how a Saskatchewan NDP government would bring in revenues that would help fund services like education and healthcare for the provincial government without raising taxes, Young said there is no revenue problem but financial mismanagement.
"I'll let you in on a little secret; we are a province of 1.2 million people, and the last provincial budget was $20 billion. We do not have a revenue problem in Saskatchewan. We have a management problem in Saskatchewan. You're right; we have committed to leaving last place in health care. We have committed a generational investment in education because that is what Saskatchewan people need," said Young.
"People will not move to this province and stay, open businesses and raise families if they're one of the 200,000 people without a family doctor. If they're facing these ever-increasing cost-of-living challenges, largely created by Scott Moe and the Saskatchewan Party, in what should be the most affordable province to live and raise a family in Canada. It's clear that Scott Moe and the Sask. Party aren't listening to small business owners. If they were, they would see that the Sask. Party's plan to double small business taxes is not on."
Young added that, after owning a small gourmet cheese shop, she knows the daily challenges faced by small business owners like Miranda and makes it a point to pay her employees above the minimum wage.
"I also run a small business that does not sell luxury goods. I sell fancy cheese, and as much as I love it, I recognize it's not a necessity, the way that gas is for people, the way that groceries are for people, the way that paying their rent is for people in Saskatchewan. But Miranda's right, the bottom line is [small businesses] are getting squeezed, right? Small businesses make up 99 per cent of the businesses in Saskatchewan," Young said.
"We are the hardest working province in Canada and the most entrepreneurial province in Canada. And what small business owners are asking for the government not to pile on, not increase power rates three times in a single year, and not double the taxes on small businesses in a single year. I don't think it's an outrageous ask. It's not just one from Carla Beck and the Saskatchewan NDP. This is coming from business owners and business leaders across the province. There's simply no excuse for it."
