ST. JOHN'S – Yesterday during an announcement about New Democrats' plan to increase the minimum wage, NDP Leader Alison Coffin revealed her party would cut the three per cent tax on small businesses. Coffin says this financial break will help small, local businesses in our province.
"Small businesses have had a difficult year with Snowmagedon and then the COVID-19 closures. They need some help. Part of our plan to support these business owners and their workers is to take actions that will make life more affordable for both groups," said Coffin. "Reducing the taxes they pay will allow small business owners to reinvest in their business, create jobs and pay their workers a higher wage."
The NL NDP's plan to reduce the corporate tax would allow small businesses in the province to keep an estimated $9.7 million. The businesses that would benefit from this cut have a reduced corporate income tax rate of three per cent which applies to first $500,000 of net profits.
Coffin says supporting small businesses and increasing the minimum wage benefits everyone.
"We can work to put more money in people's pockets. When people have more disposable income, they take their kids out to dinner more often and buy necessities like clothing. It is in everyone's best interest for minimum wage earners to have a little more money," said Coffin. "We can make choices that support small businesses and their workers in our communities. New Democrats are fighting for you and your family so that everyone can live a little more comfortably."