BC Budget Evokes Mixed Reaction
Prince George, B.C. – The provincial government delivered its 2016 budget today and predictably, reaction fell along partisan lines.
The business community was largely supportive, including the Prince George Chamber of Commerce.
“It’s a good budget,” said past president and current director Derek Dougherty. “I mean anytime a government can balance a budget it’s a good thing.”
He added they were pleased with proposed changes to the Property Transfer Tax Act.
“There’s an elimination of tax on the first $750,000 of new construction. Townhouses and condos will be included and so given the average house in Prince George tops out at about $600,000, it’s probably going to be good for the Prince George housing market.”
But Dougherty did express concern regarding changes to how Medical Service Premiums will be collected and the effect it may have on small business.
“While it’s good for certain families we are afraid what might happen if the shift will be placed on to small businesses.”
The Association for Mineral Exploration British Columbia (AME BC) were also big boosters of the budget, noting it included important incentives for the province’s mineral exploration and development industry.
Incentives include extending the BC Mining Exploration Tax Credit through 2020 at its regular rate of 20% and enhanced rate of 30% for areas affected by the mountain pine beetle.
“During this protracted downturn in the mineral exploration and development industry, companies need fiscal incentives that sustain grassroots exploration,” said Diane Nicolson, chair of AME BC.
Despite support from the business sector, labour groups were not onside with what they heard out of Victoria.
“We were looking for a budget today that worked for working British Columbians and that’s not what we got,” said Aaron Ekman, secretary treasurer with the BC Federation of Labour.
“There’s a lot of talk about GDP and Triple A ratings but really the only economic indicator that matters to working people is how much they’re earning when they come from work.”
For example he said BC still has the lowest wage growth in Canada adding nothing was done today to address it.
“A quarter of the workforce is making under $15 an hour – that’s half a million people.”
The BC Teachers Federation said the government failed to make the grade on education funding with confirmation it will be moving ahead with part two of a significant cuts to school districts.
Last year districts were forced to cut $29 million in administrative savings and will have to make a further $25 million in cuts this year.
“The ongoing underfunding of education has led to a situation where class sizes are increasing and class composition continues to get worse,” said president Jim Iker.
“There are 16,516 classes in BC with four or more children with special needs and 4,163 with seven or more. That means tens of thousands of BC students are learning in overly complex classes and are not getting the support they need.”
Comments
“For example he said BC still has the lowest wage growth in Canada adding nothing was done today to address it.
“A quarter of the workforce is making under $15 an hour – that’s half a million people.”
Nothing will be done unless we voice our opinions offline.
“…. but really the only economic indicator that matters to working people is how much they’re earning when they come from work.”
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If whatever that is simply adds to the costs of whatever they have to buy to continue to live all any wage increase is really going to amount to is some people feeling good they’re now able to work with bigger figures. Briefly, before the process needs to be repeated again. Straight inflation, in other words, not the desired prosperity workers and their unions should be striving for.
Have a read on how Ontario is doing and be thankful you live here!
The cost of the MSP hike will get passed on to any business that provides benefits for their employees. That will affect not just small businesses but other employers as well, ie School District, City, Northern Health.
The way I read this, is it’s a windfall for employers who pay their employees MSP – because the premiums are going down for certain groups. There is no talk of raising them for everyone else. So, if an employer currently pays a single Mom’s MSP, and now she’s exempt, who get’s that money? The employer. Or, she has to somehow convince him/her to hand it over – in a non union situation. And if it’s a union situation, it can’t be dealt with until the next contract. And how will you deal with it. The exemptions are all over the map. How do you get that into the language the couples with 2 children get X more, but single Mom with children get’s Y more. What a headache. Scrap it and raise taxes.
So they are raising MSP and how do the expect people to pay for this without raising the min.wage. We already have enough home grown refugees in this province. More people sleeping on the streets, in the parks and unable to pay their rent. What relief is there for seniors whose income is combined and meets the threshold?
The MSP payment IS a tax . Calling it a fee is only semantics and it’s a regressive tax . User fees , premiums , surcharges are taxes by another name . It’s just newspeak . Balancing a budget on the bellies of hungry bc kids , gutting education and freebies for miners is just morally bankrupt . Like AJW mla says , the bc liberals are just yesterday’s harper government . They more than deserve the same fate .
I agree, fees are just a regressive tax. But the miners comment – is inaccurate. The exploration tax credit is flowed through to the investor. In my practice, a lot of those investors are teachers, nurses, doctors, pulpmill workers – not miners. The tax credit encourages investors to buy shares in the mining venture, to promote mining activity. It’s not the mine that benefits, it’s the investor – who often, is just middle to upper class people. The other option is to not give the incentive, then people don’t invest, then exploration doesn’t happen, then mines aren’t built, then people don’t get resource jobs, then they don’t pay taxes, and then there’s no money for education, healthcare, welfare etc.
And where ever I go in this Province, Kids and Parents walking around with Cell Phones in there Hands , the Question is , do I want to eat proper or have a Cell Phone! Re MSP, Seniors will pay less if combined Income is 51000 or less! We can pay for the MSP via Premiums or Taxes, it’s all the same ! Things you don’t need
Cellphones,Internet,Cable TV, if you have Money left, go and have it.
Outwest—Yes there are many things we don’t need but I would have to say you are going to need that cellphone if you are looking for work. Very hard to find a payphone.
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