Kevin Falcon says a BC United government would eliminate provincial income tax on the first $50,000 earned by British Columbians — $2,050 in average savings for taxpayers at a cost of $5.4 billion annually to provincial coffers.
“Today I am proud to announce the largest middle-class tax cut in British Columbia’s history,” Falcon said in an election campaign announcement, delivered Tuesday across from the ÎÚÑ»´«Ã½ legislature, outside Good Earth Coffee in Victoria.
Raising the provincial basic personal exemption to $50,000 from the current $12,580 would eliminate provincial income tax for about 60 per cent of taxpayers or 2.4 million British Columbians including seniors and students, he said.
Taxpayers pay both provincial and federal taxes. The federal basic personal tax exemption in 2024 is $15,705. There are tax exemptions for a wide array of factors, including if one is supporting children, people with disabilities, or attending school.
The average individual income in ÎÚÑ»´«Ã½ was $58,300 in 2022, the most recent year for which , while the median was $43,900. ÎÚÑ»´«Ã½ seniors had a median annual income of about $30,750 in the same year.
Under the proposed tax cut, a minimum-wage worker earning $36,000 annually would pay “no provincial income tax” for a savings of $1,134, said Falcon. A two-income family with each earning from $50,000 would see a combined savings of $4,104.
“Importantly, a senior living on a fixed pension of $40,000 and struggling to adjust to skyrocketing costs under the NDP will pay zero dollars in provincial income tax,” said Falcon.
BC United expects to offset the revenue loss of $5.4 billion with what it believes will be an increase in economic activity, consumer spending, and job creation as a result of the tax cut.
Falcon said the lost tax revenue will come from the government’s $4-billion contingencies fund, “eliminating entire layers of administrative bureaucracy” in health authorities and instead directing money to front-line services and service providers, delivering capital projects on time and on budget while ending Community Benefit Agreements and opening bidding to private contractors.
Falcon pointed to several hospital construction projects that went over budget, including the Cowichan District Hospital budget which he said has grown from $800 million to $1.4 billion.
Falcon said the initiative will not result in service cuts nor stop ongoing provincial capital projects. “I want to be clear, any capital projects that have started, we’re not going to stop them.”
However, BC United will “freeze” capital projects — such as promised Urgent and Primary Care Centres — that are in the planning stages “until I make sure that those are being procured in a manner that is making sure that we maximize the taxpayer investment.”
Falcon said a BC United government will continue the NDP government’s “appalling” program of sending eligible cancer patients to the United States and elsewhere for treatment “up until the point at which we can make sure the services are being offered right here in British Columbia.”
Health care dollars will be spent differently to produce better results, he said.
ÎÚÑ»´«Ã½ Premier David Eby, speaking to fruit growers in Penticton on Tuesday, called the BC United tax proposal “extreme and radical.”
Eby said the BC United plan would require cuts to the provicial budget of at least $5 billion in addition to budgetary cuts of about $6 billion.
Falcon pledged to balance the province’s budget — with a current deficit of $5.9 billion — within the first term of a BC United government.
“If you’re going to cut about $10 billion from the provincial budget,” said Eby, “that means fewer schools, fewer teachers, fewer new schools, any new hospital expansions being cancelled, cuts to doctors, physicians, people who work in hospitals, nurses.” And there will be more fees including the return of MSP premiums and ICBC premiums hikes.
Carson Binda, ÎÚÑ»´«Ã½ director for the Canadian Taxpayers Association, said in an interview it’s “great news” to hear BC United taking tax relief “seriously” and is hopeful the other parties will offer tax relief “which is desperately needed right now.”
Binda said “there should be no difficulty finding areas to cut” to recoup the $5.4 billion, saying the NDP government has a “massive spending problem.”
Iglika Ivanova, senior economist at the Canadian Centre for Policy Alternatives ÎÚÑ»´«Ã½ said on social media the proposed cut will do little for low-income workers, many of whom already pay no income tax, and give $2,000 a year to higher income earners while punching a $5.4 billion hole in the province’s finances.
ÎÚÑ»´«Ã½ Green Party Leader Sonia Furstenau, in a statement, said BC United’s plan will gut the provincial budget to the tune of $12.4 billion in cuts if the party plans to maintain its other promise to balance the budget.
Frustenau said the 8 per cent tax revenue cut demonstrates BC United’s “lack of financial sense to address the province’s challenges” especially at a time when our health-care system is in crisis, a potential recession looms, and the NDP overspends.
“The ÎÚÑ»´«Ã½ Greens will put forward a tax plan that makes sure the wealthiest pay their fair share, and everyone can count on the services they deserve,” said Furstenau.
ÎÚÑ»´«Ã½ Conservative campaign spokesperson Anthony Koch said after working for weeks to remind British Columbians that they used to be ÎÚÑ»´«Ã½ Liberals “BC United are now trying once again to pretend to be Conservatives.”
ÎÚÑ»´«Ã½ Conservatives are the party with “real deal” tax cuts and common sense policies, said Koch, citing surveys that suggest BC United is in the back of the pack for public support.
Falcon said people should take a cautious approach to polling and punditry this far ahead of the Oct. 19 election, adding that what happens during the election campaign matters to voters.
