iggy_oi - the tax offset more or less amounts to pissing into the wind. Cold comfort when you are losing money. Employer will pay more on their share of CPP and EI as well.
Bottom line is that due to external factors outside of this owner's control (government intervention in this case) the owner can work more hours himself and reduce staff hours (he is already working every day) or try to increase prices to offset the wage increase, or he can say it isn't worth it and fold.
Unrelated but a friend with a construction company just laid off all his staff. Says that they are getting ground so hard by general contractors right now that he and his partner found themselves taking work simply to pay their employees and there is no hope of a change in sight, so they chose to stop.
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