Layered costs of government policies are adding up for Calgary businesses

Government policies at all three levels are having layered negative impacts on small and medium-sized businesses and the broader community, says a new report released today by the Calgary Chamber of Commerce.

“Businesses are getting hit with additional costs from all levels of government, and it is making it increasingly hard to run a successful business in Calgary,” says Zoe Addington, Director of Policy and Government of Affairs for the Calgary Chamber. “Policies such as increases to the minimum wage, rising municipal property taxes, and Alberta’s carbon levy, merits can be weighted on their own, but layered together are causing harm.”

The Layered Costs Assessment shows how these combined policies are adding thousands of dollars in additional costs for businesses. Also, there are unintended consequences such as fewer job opportunities, reduced investment which prevents both existing businesses from expanding and new businesses from opening, and even businesses closing their doors permanently. 

Here are some key findings:

• 55 per cent of businesses surveyed with minimum wage staff have reported layoffs due to minimum wage increases;
• Because of the nearly 30 per cent downtown office vacancy rate, businesses could face potential property tax increases of up to 200 per cent in future years. The city has announced $45 million in tax relief for 2018, however a long-term solution is needed; and
• Only 21 per cent of businesses surveyed, that have been impacted by the carbon levy, plan on passing the carbon costs on to their customers.