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BC BUDGET: Liberals blast 91Ƶtax and spend91Ƶ plan

Payroll tax, carbon tax increase threaten growth, opposition critics say
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B.C. Liberal finance critics Shirley Bond and Tracy Redies respond to first NDP budget. (Black Press)

The NDP minority government will keep B.C. finances in the black for the next three years, thanks to strong economic growth, Finance Minister Carole James says.

But B.C. Liberal finance critics Shirley Bond and Tracy Redies says they shouldn91Ƶt count on that growth as they add to the business tax burden, with a payroll tax to replace Medical Services Plan revenues and a carbon tax that is rising and no longer revenue neutral.

91ƵThis is a government that continues to have a massive spending promises and very little attention paid to revenue generation in the province,91Ƶ Bond said. 91ƵIf you can imagine adding a payroll tax, a carbon tax, the list of taxes is lengthy, on the very people that the NDP government are assuming will grow the economy.91Ƶ

Redies said the NDP91Ƶs first budget predicts an 11 per cent increase in personal income tax revenue in the next year, equivalent to $1,000 for each family.

91ƵOn the resource side, revenues are actually predicted to drop in our core industries,91Ƶ Redies said. 91ƵThat should be astounding for British Columbians, that this government is predicting resource revenues, forestry, mines to decrease over the next three years.91Ƶ

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James91Ƶ first full budget predicts a surplus of $219 million in the fiscal year starting April 1, with surpluses of more than $280 million in the next two years. That is despite what the government describes as record investments in housing and child care and another large increase in health care spending.

The latest projections from the finance ministry show increased taxation and resource revenues this year, offset by $884 million less revenue from ICBC and $183 million more than forecast in wildfire costs for 2017-18.

Economic growth is projected to be 2.3 per cent in 2018, up from 2.1 per cent estimated last September.





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