The provincial NDP wants voters to know that they’re all for tax cuts for corporations — well, small corporations, anyway.
At a news conference in downtown St. John’s, NDP Leader Lorraine Michael said that the party would like to lower taxes paid by small businesses from four per cent to three per cent.
“We are talking about small business. We’re talking about taxation in a very specific setting, and in that setting I believe that we should be looking at alleviating as much as possible,” Michael said.
“If we were to talk about huge corporations, I wouldn’t be talking about tax breaks.”
She said that there are roughly 2,000 small businesses in the province, responsible for employing 40 per cent of the paid workforce.
“We want small business owners to know that our platform is really going to deal with some of their concerns,” Michael said.
Brent Smith, owner of the Newfoundland Chocolate Co., said the tax cut would be a good gesture.
“One per cent, sure, it helps,” he said. “Any reduction helps.”
Potentially more important, he said, was that the NDP is fighting its reputation as the enemy of the business community.
“I think it means that they want to take a serious crack at it. I don’t think you can take power by being perceived as being anti-business,” he said.
“I think that the fact that they’re acknowledging that the small business tax rate is excessive is a step in the right direction.”
Thursday’s announcement was one of the NDP’s early policy positions; the tax cut will be part of the Oct. 11 election campaign platform.
Michael said that reducing the tax burden on small business will cost the provincial treasury about $4 million annually, but the campaign promise will be part of a fully costed platform.
However, no one is allowed to see the platform just yet; she said that won’t come until sometime after the campaign formally starts on Sept. 19.
“When we put out our platform we’ll be showing the different ways in which we plan on covering the expenditures that we’ll be talking about,” Michael said.
Thursday’s event took place in The Travel Bug on Water Street, which is co-owned by NDP candidate Gerry Rogers.
Rogers said she thinks is important to make a firm statement that the party isn’t anti-business.
She said small businesses create more new jobs, and money earned tends to stay in the community.
“Absolutely, it’s important for the NDP to be seen as pro-business,” Rogers said.
“I think the NDP is clearly pro-business, pro-development, but only in as much as it’s good for all the people of the country.”
jmcleod@thetelegram.com
Twitter: TelegramJames
