NDP wants to cut business taxes

Newfoundland and Labradors New Democratic Party is promising to cut taxes for small business if it forms the provinces next government.

"We are proposing that we will reduce small business taxes by 25 per cent in our first year of government, if we were to become government," said provincial NDP leader Lorraine Michael Thursday.

Under the plan, small business taxes woulddrop from four per cent to three per cent - a move which would cost the province $4 million annually.

Michael said the tax cut would help more than 2000 small businesses grow and invest in new technology.

The Canadian Federation of Independent Business likes the idea but wants to see more.

"We're looking for an elimination. Whether that be an outright elimination or a phase-out of the corporate tax. This is one step. So we'd like to see the NDP and all parties take if further and eliminate or phase out. This is good first step," said Bradley George, with this province's chapter of the CFIB.

The NDP didn't say how it would pay for the promise.

Michael said that will be revealed when the party releases its full election platform in September.