Finance Minister Carole James has been under fire for the payroll tax being imposed to replace Medical Services Plan premiums. (Hansard TV)

NDP tax increases adding up for B.C. residents: study

Carole James says Fraser Institute analysis ignores tax relief

Tax changes under the new B.C. NDP government will add $1.9 billion to the tax burden of B.C. residents, the Fraser Institute says in a survey of taxes for the province released Wednesday.

The institute’s “Canadian Tax Simulator” calculates that the tax bill for an average B.C. family with an income of $114,809 in 2018 will increase by $929 a year, mostly due to a $498 increase in fuel and carbon taxes and $360 in payroll and health taxes.

“While the government claims it is making life more affordable for B.C. families, its tax changes mean the average family in B.C. will pay nearly $1,000 a year in higher taxes,” said Niels Veldhuis, president of the Fraser Institute and co-author of the study.

The calculations assume that the B.C. government’s carbon tax increase and new payroll tax for health care are fully implemented. It does not include several residential property tax increases, such as increased municipal property tax, more foreign buyers’ tax, the speculation tax on secondary homes and school tax, which was increased for high-end properties in last year’s B.C. budget.

Finance Minister Carole James also restored a high-end tax bracket for incomes over $150,000, a two per cent tax increase that took effect April 1.

RELATED: Payroll tax to replace B.C. medical premiums

James disputed the conclusions of the study, saying “working and middle class families” in B.C. are paying lower taxes than they did last year. A two-income family of four earning $90,000 a year will pay on average the second lowest total taxes in Canada this year, James said in a statement.

“I’m disappointed the Fraser Institute would choose to misrepresent the average B.C. family income for their own purposes and selectively ignore major reductions for B.C. families,” James said.

Cutting Medical Services Plan premiums by half this year while phasing in the employer health tax means a saving for those paying their own MSP premiums of $900 for individuals and $1,800 for families, James noted.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Last remaining Victoria Legion faces $100,000 property tax bill

The Trafalgar/ Pro Patria Branch can’t afford to operate with such high taxes

Downtown Victoria sees 10-fold increase in condo units since 2016

A report by the Downtown Victoria Business Association details ongoing construction trends

Federal government commits $9.1 million toward UVic Indigenous Law building

Contribution supports Canada’s first Canada’s first Indigenous Law program

Saanich farm hosts birthday party as wetland turns 10

The Urban Biodiversity Enhancement and Restoration Project invites community to 10th birthday for wetland

Soul Shakers kick off free outdoor concerts in Oak Bay

Music fills the air at Willows Beach Park for series of concerts this summer

VIDEO: Tributes flow on 10th anniversary of Michael Jackson’s death

Jackson received a fatal dose of the anesthetic propofol on June 25, 2009. He died at age 50

Greater Victoria wanted list for the week of June 25

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Campers hailed heroes in rock face rescue at Vancouver Island provincial park

The campers quickly noticed the man in distress and jumped into the river to swim across.

Vancouver Aquarium drops cetacean ban lawsuit in new lease agreement

Ocean Wise CEO Lasse Gustavsson called the updated lease an exciting new chapter for the aquarium

Pedestrian struck by vehicle in Stz’uminus dies from injuries

A male pedestrian was struck in the early morning of June 25

Thieves steal two $40K chairs featuring gold serpents from Vancouver furniture store

Chairs believed to be the only two of its kind in Canada, police said

Poll: Rising gas prices force B.C. residents rethink summer road trips

63 per cent of respondents reported gas prices are impacting their day-to-day finances

PHOTO: Moose cow and calf relax in Williams Lake flower garden

The homeowners got a surprise when they checked their most recent surveillance footage

Most Read