11 things you should know about B.C. budget 2015

    1 of 1 2 of 1

      1. Budget 2015 ends the claw-back on child support payments for single parents on welfare. This is estimated to put $13 million in the hands of some of the poorest British Columbians. It’s a good step forward, but it is very very small. $13 million is three hundredths of one percent of the provincial budget.

      In contrast, the richest two percent of British Columbians are getting 17 times more (or $227 million) with the phase out of the tax bracket at $150,000.

      2. B.C. remains the only province in Canada without a poverty reduction plan. There is also no money in the budget to increase income assistance rates, which have been frozen since 2007. This is despite the fact that the bi-partisan committee of MLAs who conduced this year’s pre-budget consultations unanimously recommended these in the pre-budget consultation report:

      # 37: Introduce a comprehensive poverty reduction plan, and review income assistance rates, the minimum wage, and clawback of child support payments.

      The government deserves credit for ending the clawback of child support payments from income assistance, but that is one of the cheapest items on the list that affects the fewest people. What about all the others?

      3. MSP premiums are going up again. A family of three or more will be paying $150 per month, whether they earn $40,000 or $200,000. MSP premiums have more than double what it was in 2000. Note also that while MSP is increased by four percent in 2015, the budget for health care is going up by only 2.8 percent.

       4. Budget 2015 underfunds key public services. Spending increases to health care and education are failing to keep up with inflation and population growth. Overall government spending is projected to decline when adjusted for population and inflation in each of the next three years. The government’s fiscal policy of restraint is putting the breaks on economic growth.

      5. Running a surplus does not mean that B.C. is prospering. The job market remains weak, many families to struggle with economic insecurity and poverty, and our colleges and universities are delaying necessary building repairs for lack of funds. This is like balancing your family budget by not feeding the kids and not fixing the leaky roof—it’s penny wise and pound foolish, ignoring the future costs of today’s neglect.

      6. B.C. spends more every year providing tax credits to corporations than to low income individuals. Tax transfers to individuals include programs like the sales tax credit, the early childhood tax benefit, the low income climate action benefit, the seniors home renovation tax credit—and cost the B.C. government $460 million combined compared to tax credits to corporations ($516 million this fiscal year, projected to grow in the future).

      7. Despite ending last year with a nearly $1 billion surplus and projected surpluses going forward, Budget 2015 ignores a number of important recommendations coming out of this year’s pre-budget consultation report that would have greatly improved the lives of some of the most vulnerable British Columbians. This is despite the fact that the recommendations were approved unanimously by a bi-partisan committee of MLAs.

      # 38: Examine the persons with disability (PWD) rate and consider increases to reflect higher costs of living.

      # 40: Provide funding and support for the development and implementation of a child care plan.

      # 41: Work with the federal government to increase access to affordable social and co-op housing, especially for people with disabilities, and to ensure continuation of operating agreements with existing housing co-operatives.

      # 42: Incrementally increase legal aid funding.

      8. The B.C. Early Childhood Tax Benefit, which was originally announced in B.C. Budget 2013, is too small to make a real difference for families: the maximum benefit is $55 a month, whereas child care fees run on average range from $900-$1,400 a month, depending on the age of the child.

      Putting the money into a first stage of a public universal child care plan (as the budget consultation report recommended) would have been a wiser spending decision.

      The total cost of the B.C. Early Childhood Tax benefit ($146 million per year) is lower than the tax cut that the richest two percent of British Columbians are getting ($227 million).

      9. B.C. is not getting a fair return on our publicly owned natural resources. Natural resource revenues are projected to fall by seven percent in 2015/16. Revenue from resource royalties is at a near record low, even as natural gas production is at an all-time high.

      B.C. collects more money from postsecondary tuition fees than from natural gas royalties. Natural gas royalties and Crown land tenures combined are projected to bring in $1.1 billion vs. $1.6 billion from tuition. B.C. collects about twice as much from MSP premiums than from our natural gas resources.

      10. Budget 2015 admits defeat on the B.C. Jobs Plan. In Table 3.6.3 on p. 80, the government projects that job growth would continue to be lower than the growth of the working age population until at least 2014.

      11. There is no action on climate change in this budget. This is disturbing, as we see an increase in severe weather events and other consequences of climate change.

      The carbon tax, which was supposed to be revenue neutral, is continuing to give away $400 million per year more in tax cuts than it collects in revenues. Most of those are funding business tax cuts. If we made the carbon tax truly revenue neutral, B.C. would have an additional $400 million every year to spend on meaningful climate action investments.

      Budgets are about choices and priorities.

      We ended 2014 with a nearly $1 billion surplus. The economy is projected to grow by 13 percent over the next three years (nominal GDP). The government can no longer plead poverty and can certainly afford to begin implementing the $10/day child care plan, a comprehensive poverty reduction plan.

      Unfortunately, Budget 2015 prioritizes recording a large surplus over real action on pressing economic, social, and environmental problems. This is a short-sighted budget that lacks vision and leadership.

      Comments

      10 Comments

      Azaelea

      Feb 17, 2015 at 6:18pm

      This budget is pure evil.

      Hazlit

      Feb 17, 2015 at 9:08pm

      The answer here, as elsewhere, is a significant rise in the corporate income tax rate. Businesses need to learn responsibility so that government can solve the problems people expect it to.

      Anonymous

      Feb 18, 2015 at 5:42am

      Things need to get worse before they get better. It's not until people are on the streets dying that change will occur unfortunately. Until then, let the rich get richer, and let the hatred for them grow in the hearts and minds of the middle and low class citizens.

      @Anonymous

      Feb 18, 2015 at 12:27pm

      Ever been to the DTES? People have been dying from malnutrition and institutionalized starvation as public eugenics policy since the 1980s---that's when the Food Banks were set up, as a way to excuse Government from, you know, having to pay enough to eat.

      Because we know that if welfare pays enough for people to eat, there is not the wholesome incentive of malnutrition, to shape the poor dears up.

      TJ

      Feb 18, 2015 at 12:58pm

      So, I guess the children living on social assistance where child support is NOT coming into the household are less deserving? INCREASE assistance rates so that NO CHILD in BC lives in poverty, regardless of the character of the non-custodial parent. This government must stop beating up on the poor, especially children - while ladling out tax breaks to big corporations. US-based Target stores are leaving 5 BILLION dollars in debt as they leave Canada. Shame!

      FM

      Feb 18, 2015 at 2:04pm

      So the rich should pay more taxes because of their success?
      About 3.5% of BC residents earn $150k or more, the taxes on a percentage basis and on an absolute basis are already higher for them than any other group of BC residents of the same size, what makes you think you are entitled to force them to pay even more?
      We don't live in a Socialist country.

      helen m price

      Feb 19, 2015 at 12:05pm

      Hahahaha!! I was wondering how the lefties and the media would put a negative spin on a stellar budget. I wonder if they would be happy if there was no surplus and the budget didn't balance.Reading the comments here (FM excepted) its the usual whining takers. I make more than 100,000 bucks a year, hard earned, and I pay enormous income taxes. Didn't you see that stat that the surplus is due to a number of things, a big one being the income tax us 'rich' people pay. I have a hard time with stupidity frankly, maybe thats why I make more than 100,000 per year and pay hugely into the well being of this province. And if you raise corporate taxes, guess what? they don't need to be in BC. Check out Finning and why they moved.

      SZ

      Feb 19, 2015 at 8:24pm

      I make about 200K and pay about 5.6K in taxes. I probably paid more taxes than you earned. If you think I didn't pay my fair share, you need to think again. Sure, I make high income but I am not rich and I work hard to earn it. Some of you make "no income" but live in multi-million dollars house. Why should I subsidize you?

      Annie May

      Mar 10, 2015 at 7:20pm

      MSP fees are a regressive tax, a flat-rate fee, same for a $30,001 income as for a billionaire. It's hard enough for many to pay their own MSP premiums, how can it possibly be justified for taxpayers to pay for MLA's and public servants MSP fees, a nice bonus for them, usually automatically covered each MSP rate increase, equivalent to a raise in pay at our expense. It's referred to as a "medical" fee, but my understanding is that it goes into "general" revenue, and then there's the millions of our taxpayer-serf dollars that go to a for-profit agency to administer MSP collections, a nice bonus for them too.

      Taxed to death

      Sep 1, 2015 at 10:34am

      It has taken me 25 years to get to a pay scale that is considered "rich". Last year I was blessed to earn $299K last year But I paid the following $112K in income tax, $5k property tax, $2K in MSP, $10K on schooling for my special needs child plus gas tax, liquor tax, passport fees, Pst & GST. And think I should pay more? Really? What part do I get to keep?

      I spent $150K to put myself through university without student loans because worked 3 jobs. I have worked hard and sacrificed early in my life.

      I still have mortgage and car payments. Until I am debt free I do not consider myself rich.

      Unless you have sacrificed for 25 years like I have, you have no right to tell me I should pay more taxes. If my taxes get over 48% of my income I am moving and I am not alone. I can work anywhere in the world.

      Don't believe me, just ask France how the tax the rich plan is working there. http://financialtribune.com/archive/2015/08/03/articles/world-economy/23...

      Don't give me a reason to leave.