Billion-dollar wage increase will increase crippling tax burden on Canadians
The Canadian Federation of Independent Business (CFIB) cautions that the possibility of a strike by the unionized employees of the Canada Revenue Agency (CRA) over a proposed 33% raise across three years poses a threat to small businesses that depend on CRA services and tax advice every day.
The adjustment and pay boost that the Public Service Alliance of Canada-Union of Taxation Employees (PSAC-UTE) is now requesting would result in a 33% increase in salary over three years. The wage hike alone might end up costing taxpayers close to $1 billion. The effect on small firms and taxpayers might be even worse given that PSAC has already hinted at a wider potential strike involving over 100,000 workers.
"The timing couldn't be worse. The potential strike would create additional uncertainty, especially in the middle of tax season. With certain CRA services being delayed or unavailable during a labour disruption, we worry that many small businesses may not be able to get answers in a timely manner or to submit their tax payment on time," said Dan Kelly, CFIB president. "The proposed wage increase would also be extremely costly to Canadians and add to their already heavy tax burden."
Accessing the CRA is already difficult for small firms. The CFIB last week issued its most recent CRA Report Card, which revealed that just 23% of company owners felt confident in the answers given to them and that 53% of business owners had to phone many times before connecting with an agent. Small firms would experience more stress as a result of the impending strike, which would worsen the situation.
CFIB is requesting that both the CRA and the PSAC-UTE pursue an agreement as soon as possible to avert the adverse impacts of a strike as discussions between the two parties start today.
Given that the prospective strike would happen for no fault of small firms, the CFIB is requesting the CRA to continue to provide full service to small businesses during the ongoing collective bargaining process or if a strike is called. Moreover, CRA should ensure that small company owners are informed clearly about their obligations during a strike.
The CFIB added that CRA should delay tax filing deadlines to prevent firms from paying fines and interest due to the strike, and should talks break down, think about passing back to work legislation.
"If CRA workers, in addition to more than 120,000 other federal public servants, go on strike, the impact on small businesses could be massive," Kelly said. "We're looking to both sides to come to a quick resolution at a cost taxpayers can afford."
