B.C. Liberal finance critics Shirley Bond and Tracy Redies respond to first NDP budget. (Black Press)

BC BUDGET: Liberals blast ‘tax and spend’ plan

Payroll tax, carbon tax increase threaten growth, opposition critics say

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 shouldn’t 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.

“This is a government that continues to have a massive spending promises and very little attention paid to revenue generation in the province,” Bond said. “If 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.”

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

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

RELATED: Payroll tax to replace medical premiums

James’ 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.

Just Posted

Incumbents and acclaimed mayors win elections all across B.C.’s north

Fraser Lake saw their first female mayor elected

Mayoral results from across B.C.

Voters in 162 municipalities in B.C. set to elect mayor, council, school board and more

Every vote counts: 10 tightest races in B.C.’s municipal elections

Peachland saw their election decided by just one vote

Ocean “Blob” returns to North Coast of B.C.

A 2,000 kilometre patch of warm ocean water could signal a warm winter in Prince Rupert

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

Voting set to start in B.C. proportional representation referendum

Two-part ballots now being mailed to all registered voters

Liberals write off $6.3 billion in loans as part of money never to be collected

That includes student loans and a $2.6 billion write off that came through Export Development Canada

Category 5 Hurricane Willa threatens Mexico’s Pacific coast

Hurricane-force winds extended 30 miles (45 kilometres) from the storm’s centre

Trudeau, McKenna to announce compensation for federal carbon plan

Provinces that don’t have a carbon price of at least $20 per tonne of emissions will have Ottawa’s plan forced on them

Okanagan parachute accident kills American

Man, 34, dies in skydiving accident Saturday near Westwold, between Vernon and Kelowna

Man who died at BC Ferries terminal shot himself as police fired: watchdog

Officers didn’t commit any offence, says police watchdog office

Canada Post strikes leaves small shops in the lurch as holidays approach: CFIB

Rotating strikes began in Victoria, Edmonton, Halifax and Windsor

Voter turnout at 36% in B.C.’s municipal election

Vancouver saw 39% turnout, Surrey saw 33%

Harry and Meghan travel in different style on Australia tour

Prince Harry and his wife Meghan are on day seven of their 16-day tour of Australia and the South Pacific.

Most Read