Niagara Falls Riding’s Wayne Gates Challenges Premier To Support Small Business Tax Reduction To Offset Minimum Wage Increase

A Submission from Ontario New Democratic Party and Niagara Falls Riding MPP Wayne Gates

(A Brief NAL Note – Ontario Liberal Premier Kathleen Wynnes has set an increase in a minimum wage, frozen for the past four years, from $10.25 t0 $11.00, effective this spring. The province’s NDP is now calling for an increase of $12.00, combined with a tax reduction for small businesses to offset higher wage costs to them.)

Queen’s Park, February 25^th, 2014 – Today Wayne Gates, MPP for the riding of Niagara Falls, challenged the Premier to support the NDP’s proposal to provide a small business tax reduction to offset the cost of raising the minimum wage.

Wayne Gates, Niagara Falls Riding’s new MPP. File photo, Doug Draper

 “An increase in the minimum wage to $12 will ensure that families get a raise while tax relief for small businesses, that are the backbone of our economy, ensures they can grow and create jobs,” Gates said.  “Does the Premier agree families need an increase in the minimum wage to $12 by 2016, and that small businesses deserve a break?”

The NDP’s newly appointed Critic for Jobs, Small Business and Training said the NDP’s plan is a balanced approach for small businesses that will help them sustain the proposed increase to the minimum wage with a reduction in the Small Business Corporate Tax.  The NDP’s plan would cut the small business tax rate from 4.5 per cent to 4 per cent this June, followed by a cut to 3.5 per cent in 2015 and 3 per cent in 2016.  Gates said that cutting the small business tax rate by 0.5 per cent each year will provide small business owners with an estimated $90 million in tax relief annually to offset the increase to the minimum wage.

Gates reminded the Premier that under 10 years of Liberal government, Niagara has continued to lose manufacturing jobs.

“Whether it’s families that relied on a paycheque from Vertis or Redpath, DMI Industries or Jarvis Street Pharma, we see those paycheques gone and people in Niagara see that the Liberal status quo isn’t working for families,” Gates said. 

Gates challenged the Premier to support small businesses sustain and create jobs and reminded her of the families who rely on small businesses for their employment.  

“Small business pays the bills for thousands of Niagara families.  We need a balanced approach where families get a raise while ensuring small businesses grow and thrive to create more jobs,” Gates said. 

“Will the Premier agree to lower small business taxes to offset meaningful increases to the minimum wage?” 

Audio:           https://dl.dropboxusercontent.com/u/204433797/Gates_Q3_02-25-14.mp3

Video:            https://dl.dropboxusercontent.com/u/204433797/Gates_Q3_02-25-14.mp4

Before you share your comments on this issue, here is an accompanying public message from the office of Ontario NDP Leader Andrea Horwath on the same issue.

Cut small business tax rates while gradually raising the minimum wage: NDP

QUEEN’S PARK, February 25^th, 2014 –New Democrat Leader Andrea Horwath today laid out her plan to support Ontario’s small businesses and the province’s lowest-paid workers by phasing-in small business tax reductions, while gradually increasing the minimum wage to $12 an hour.

“No one who works full-time should be left living in poverty,” said Horwath. “We need to support people who are working hard to make ends meet, and help small businesses drive our economy forward.” 

The New Democrat plan would see the minimum wage rise to $11 an hour on June 1 of this year, as planned, and then increase to $11.50 on June 1 of 2015 and to $12 on June 1 of 2016. In keeping with the recommendations of the expert panel, the NDP plan would tie the minimum wage to inflation and give employers four months’ notice before any subsequent increase. 

“Families are getting squeezed, their bills are going up, fees are rising, hydro costs are skyrocketing, and they just can’t keep up,” said Horwath. “This is a small step we can take that helps ensure people who work full-time can pay the bills.”

The NDP plan would also cut the small business tax rate from 4.5 per cent to 4 per cent this June, followed by a cut to 3.5 per cent in 2015 and 3 per cent in 2016.

“This plan is about more than giving people a raise,” said Horwath. “It’s about taking a balanced approach to investing in our work force, and our economy. Our plan includes a gradual phase-in and tax cuts for small businesses to ensure that the change is positive for families, employers, and the entire Ontario economy.”

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