In their 37 years in business, Wanda and David Beaver have never seen a financial situation affect their livelihood so much.
Despite paying off COVID-era loans by dipping into their savings, homeowners Wanda’s cake in the sky in Kensington Market have struggled to regain the level of customer traffic they had before the pandemic, as well as keep things affordable in the face of rising costs.
“We use 10,000 pounds of butter each year and the cost of dairy and delivered goods has increased,” Wanda said. “We also have this big old-school gas furnace, and nowadays it scares me to look at the bill with the cost of gas. So I will say it’s been difficult, because it’s hard to get ahead of (rising costs) and we’re not doing it.”
The pair would agree with 77 per cent of small businesses recently surveyed who want the government to address the rising costs of doing business in the federal budget due to be released on April 16. Another 74 percent in the Canadian Federation of Independent Business (CIFB) survey want a general reduction in corporate tax.
“Many companies tell us that the biggest challenge limiting their sales and growth is insufficient demand,” said Jasmin Guenette, CFIB vice president of national affairs. “When consumers spend less, (businesses) make fewer sales and generate less revenue. Therefore, it is really important that the federal government in its next budget not only recognize the situation that small businesses face, but also implement policies that help those small businesses. And the best policy is to reduce the tax burden.”
In a press release last week, the CFIB said companies also face an increase in the carbon tax to $80 per ton on April 1, in addition to the rising premium costs they have found from Employment Insurance and the Canada Pension Plan between 2019 and 2023. .
To alleviate financial pressures, the CFIB has made nine recommendations to the federal government, including reducing the federal small business tax from nine percent to eight percent over the next two years, and return the $2.5 billion in carbon tax rebates Canadian companies are owed money for the first five years of the program.
Not only does $1.3 billion of that total belong to Ontario businesses like the Beavers, Guenette said, but many small businesses are unaware that they are owed money in the form of refunds.
Ottawa had promised to return $935 million in 2023-24, but it recently reduced that amount in February to $623 million when it allocated a larger share of carbon tax returns to rural households.. The government that has not announced when that money will flow.
“I didn’t meet until recently, so it would be a good cushion,” Wanda said, adding that while the money may not seem like a lot to some companies, it still serves as “a big drop in the ocean.” for the majority.
“It would be nice to be able to have a more comfortable feel for how to schedule people and not try to send them home early because things are slow.”
As well as being part owner of the business, David is also secretary of the executive board of the Kensington Market Business Improvement Area (KMBIA). He said the pressures on small businesses haven’t spared anyone in the market, and most of his problems reflect the results of the CFIB survey.
While he admits the federal government needs to step in and help with the cost of doing business, he is not worried about the market’s survival as turnover is what drives the area.
“Everyone is always worried about places closing, but there’s always something opening up here too,” David said. “This is a very dynamic place and it has always been that way. “It’s been a market for over 100 years, so it will change, but that’s the main thing about the market: it’s always changing.”
Regardless of the budget outcome, the Beavers are prepared to buckle down and keep things as usual.
“I mean, we’ve done it for 37 years,” David said. “We got through the worst with the help of the government, so I honestly think we can do it.”
Julien Reanna is a general assignment reporter for the Star based in Toronto. Contact her via email: