Misplaced budget cut will not help Small Businesses
NDP Innovation, Business and Rural Development Critic Christopher Mitchelmore (MHA, The Straits – White Bay North) stood in the House of Assembly today to ask the minister of finance why a cut to the small business tax rate was not included in this year’s budget.
“It’s disappointing to see government overlook the benefits a small business tax cut would create,” said Mitchelmore. “Small businesses employ 40 per cent of the province’s workforce, and reducing their cost of doing business would be an investment in job creation.”
Newfoundland and Labrador has the eighth highest small business tax rate of the 10 provinces. A tax cut from four per cent to three per cent would reduce government revenues by just $4 million; “Government can afford this,” Mitchelmore said, “and the economy would benefit from such an investment.”
Where the Government decided to cut won’t help small businesses in rural parts of our province; fully 75 per cent of the money used to bring broadband internet to rural areas has been cut from this year’s budget.
“It is amazing to see 111 years after Marconi’s first transatlantic communication we have more than 200 rural communities doing without access to a broadband internet connection,” said Mitchelmore. “Broadband access would lead to improved education while also creating basic infrastructure for small businesses.
“When small businesses in this province prosper, the work force prospers,” said Mitchelmore. “I don’t see any vision from this government; they are hoarding over $2 billion dollars in cash assets and they seem unable to foresee the value of investing in our small business community.”