PC promise to cut payroll tax will create jobs, Crosbie says
Cuts to payroll tax will allow businesses to create full-time work, party leader pledges
The Progressive Conservatives say a Tory government will cut payroll tax and introduce credits for hiring and relocation in Newfoundland and Labrador.
After announcing the campaign promises Tuesday morning, PC Leader Ches Crosbie said changes to the province's tax structure would allow businesses to hire more full-time workers by focusing on lowering taxes on employers.
"Targeted tax relief works to drive job growth. It's a tool in the province's toolkit the Liberals don't seem to know how to use," Crosbie said.
The PCs have marked job creation as a key point in Crosbie's campaign to voters, speaking about the need for job creation at several events since the election was called Friday.
The party says a hiring tax credit would allow businesses to hire more people, with the provincial government investing a portion of the income tax paid by new hires back into the business. The party also plans to introduce a relocation tax credit, which Crosbie says would make it easier to attract workers in targeted growth sectors like technology from across Canada and other countries to the province.
Crosbie estimates that cutting the payroll tax for businesses will create 1000 jobs. <a href="https://twitter.com/hashtag/nlpoli?src=hash&ref_src=twsrc%5Etfw">#nlpoli</a>
—@CBCMarkQuinnCrosbie also outlined plans to progressively reduce the province's payroll tax on full-time workers, allowing hiring business owners to focus on creating full-time work over part time. He told reporters reducing the payroll tax would create an estimated 1,000 new jobs.
"[Liberal Leader] Andrew Furey says sometimes you have to cut off a limb to save a patient. But I'm not going to cut off a limb; I'm going to cut taxes." he said.
WATCH: Mark Quinn reports on Ches Crosbie's fiscal platform:
Crosbie said cutting the payroll tax would cost about $10 million in revenue over four years, but claimed the other tax changes would be "revenue-neutral."
"You either believe in growth or you don't," he said. "Our approach is to grow our way out of our problems. That's how we're going to get on top of our deficit."
Crosbie called on the Liberals to be more open in their jobs plans, calling for "no more political games." The party says it will announce more of its job-creation plan later in the campaign.
'Jobs, jobs, jobs is a great line,' Furey says
When asked about Crosbie's announcement, both Liberal Leader Andrew Furey and NDP Leader Alison Coffin said Tuesday the plan leaves something to be desired.
"This does nothing for small businesses," Coffin said. "Essentially, they plan to cancel the fifth largest tax stream in government's budget in the hopes that the Loblaws of the world will create jobs instead of feeding the tax break back to their shareholders."
"Jobs, jobs, jobs is a great line, but I would have liked to see more details on the plan," Furey told CBC News while campaigning in Port aux Basques.
"We'll continue to roll out what we think is the best, most sustainable strategy for creating long-term employment in the province over the next couple of weeks."
With files from Mark Quinn and Heather Gillis