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

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.

BC legislaturecarbon tax

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Prince Rupert Fire Rescue attend an apartment fire on the morning of April 11 in a building at 521 Fulton Str. (Photo: K-J Millar/The Northern View)
Sunday morning fire rouses tenants

Prince Rupert Fire Rescue attended an apartment fire at 521 Fulton St.

Bears are waking up hungry and starting to forage, Conservation Officer Service said on April 9. Prince Residents are advised to keep garbage in sealed containers to lessen bear attraction. (Photo: K-J Millar/The Northern View)
Keep bears wild – they are not teddy bears

Conservation Officer Service warns bears are waking up hungry

Prince Rupert couple Alvin Tait and Loni Martin have postponed their wedding two times due to COVID-19 affecting the marriage rates in Prince Rupert. (Photo: supplied/L.Martin)
No marriages in Prince Rupert in 2021 so far

Weddings down 23.9% in P.R. since COVID-19 with B.C. wedding industry loss at $158 million

Three North Coast organizations are granted funding to promote multiculturalism and support anti-racism, Jennifer Rice MLA announced on April 8. Conrad Elementary School students recognized the first Black Shirt Day on January 15, 2021, to advocate for anti-racism. (Photo: K-J Millar/The Northern View)
North Coast organizations to benefit from anti-racism funding

$944,000 granted in provincial funding to aid multiculturalism

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has suspended indoor dining at restaurants and pubs until at least April 19 in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C. sets new COVID-19 daily record with 1,293 cases Thursday

New order allows workplace closures when infections found

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

RCMP crest. (Black Press Media files)
UPDATE: RCMP investigating after child, 6, dies at motel in Duncan, B.C.

The BC Coroners Service is conducting its own investigation into the circumstances around the child’s death

RCMP display some of the fish seized from three suspects who pleaded guilty to violating the Fisheries Act in 2019, in this undated handout photo. THE CANADIAN PRESS/HO - RCMP
3 banned from fishing, holding licences after overfishing violations near Vancouver Island

Mounties seized the group’s 30-foot fishing vessel and all equipment on board at the time

B.C. Premier John Horgan responds to questions during a postelection news conference in Vancouver, on Sunday, October 25, 2020. British Columbia’s opposition Liberals and Greens acknowledge the COVID-19 pandemic has presented huge challenges for Horgan’s government, but they say Monday’s throne speech must outline a coherent plan for the province’s economic, health, social and environmental future. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP to bring in throne speech in B.C., Opposition wants coherent plan

Farnworth said the budget will include details of government investment in communities and infrastructure

FILE - An arena worker removes the net from the ice after the Vancouver Canucks and Calgary Flames NHL hockey game was postponed due to a positive COVID-19 test result, in Vancouver, British Columbia, in this Wednesday, March 31, 2021, file photo. As vaccinations ramp up past a pace of 3 million a day in the U.S, the NHL is in a tougher spot than the other three major North American professional sports leagues because seven of 31 teams are based on Canada. (Darryl Dyck/The Canadian Press via AP, File)
Vancouver Canucks scheduled to practice Sunday, resume games April 16 after COVID outbreak

Canucks outbreak delayed the team’s season by eight games

Two-year-old Ivy McLeod, seen here on April 9, 2021 with four-year-old sister Elena and mom Vanessa, was born with limb differences. The family, including husband/dad Sean McLeod, is looking for a family puppy that also has a limb difference. (Jenna Hauck/ Chilliwack Progress)
B.C. family looking for puppy with limb difference, just like 2-year-old Ivy

Ivy McLeod born as bilateral amputee, now her family wants to find ‘companion’ puppy for her

A vehicle that was driven through the wall of a parkade at Uptown Shopping Centre and into the nearby Walmart on April 9 was removed through another hole in the wall later that night. (Photo via Saanich Police Department and Ayush Kakkar)
Vehicle launched into B.C. Walmart removed following rescue of trapped workers

Crews cut new hole in parkade wall to remove vehicle safely

Most Read