The B.C. Liberals tabled what they call a disciplined budget, forecasted to bring a surplus with a combination of tax hikes and limited pre-election goodies.
With the debt projected to come in at $1.2 billion for the 2012-2013 fiscal year, the Liberals are hoping to leave the red ink behind, with successively growing surpluses forecasted over the three years of the fiscal plan.
Bob Simpson, Independent MLA for Cariboo North, said the budget is hard to take seriously as it’s coming before an election.
“If it is the Liberal’s platform, which is what we have to treat it as, then there are some interesting things in there. It’s an admission that we have a revenue problem in British Columbia, because, in order to balance the budget, they couldn’t make any more cuts, they had to increase corporate taxes and in the upper income bracket and raise Medical Services Plan (MSP),” Simpson said.
Liberal candidate Coralee Oakes is happy with her party’s budget, calling it prudent and disciplined and lauding the Liberal government for the “tough decisions” they’ve made to support the economy.
“It is a budget about the future of our province and sends an important message that we will not spend money we do not have and we will not leave a legacy of needless debt,” Oakes said.
Duncan Barnett, NDP candidate for Cariboo North, said the budget is not as balanced as the Liberals make it sound.
“It’s based on overestimating revenues, underfunding ministries and program areas that deliver front-line services to British Columbians and questionable one-time asset sales,” Barnett said.
Simpson agrees that the budget is far from balanced, pointing out that it doesn’t have enough room to absorb a fire season.
The budget includes an increase in both personal and corporate income taxes.
The tax hikes roll out beginning this year, with the general corporate income tax moving up one percentage point to 11 per cent in April.
Next year, in January, individuals earning more than $150,000 a year face a temporary two-year 2.1 per cent tax increase.
Medical Services Plan premiums will also increase, getting a four per cent bump come next January.
“The increase in MSP premiums was one of those tough decisions that had to be made in order for us to be able to increase Health Care by $2.4 billion over three years,” Oakes said.
The MSP she pointed out, is not paid by lower income families, with more than 800,000 people in B.C. not paying full MSP.
It is also important to note that more than 800,000 people in BC don’t pay full MPS premiums. For a family earning $60,000 MSP premiums will go up $5 month. Oakes added, the governing Liberals have been able to keep B.C. with the lowest personal income taxes in Canada for individuals earning up to $122,000 a year.
Both Barnett and Simpson see the raise of the MSP as an increase in what is called a regressive tax.
“Increases in hidden taxes like the Medical Services Premium place an unfair burden on many families,” Barnett said.
Simpson agrees with Barnett, pointing out that the government has increased the the MSP many times already.
“I believe the NDP can do a better job of serving British Columbians.
“We need to be investing in our people and all of our resource industries,” Barnett said.
“Our fully-costed platform will show how we will restore balance and make changes for the better, one practical step at a time.”
Simpson has tabled a bill to change the date of the fixed election to stop the use of budgets as election promises.
