The government should expand the current HST debate into a comprehensive assessment of B.C.’s current tax and revenue regime says MLA for Cariboo North, Bob Simpson.
“The HST is a $1.9 billion tax shift from business to consumers at a time when consumers are facing increased cost pressures from other government policies, property tax increases, and the erosion of public services,” Simpson said.
“At the same time, consumers are also facing significant downward pressures on their wages and benefits, as the government’s own zero percent bargaining position illustrates.
“I believe the provincial government has an opportunity to broaden the scope of the HST ‘engagement’ process and gain greater insight into broader issues of tax fairness, affordability and the erosion of public services.”
Since 2001, the provincial government has dramatically reduced corporate taxes, personal taxes and natural resource prices resulting in dramatic increases in public debt and deficit financing.
“The provincial government claimed that corporate tax reductions would create jobs, but recent studies have shown that this promised job growth has not been realized,” Simpson said.
“Job losses in the banking sector are a particularly stark example of failed tax policy and I’m certain a similar analysis of the 2008 fifty percent reduction in the industrial school tax would show that this corporate tax reduction did not create one additional job in BC.”
In discussions with local businesses and individuals, Simpson found people don’t mind paying taxes, what they mind is how those dollars are spent.
“People have no problem paying their fair share of taxes,” he said.
“But they want to see those tax dollars being spent wisely and in ways that benefit them and their local economy.
“People in Quesnel are wondering why hundreds of millions of their taxes are being spend on a new roof for a Vancouver stadium, and to service the debt it has created, but they can’t get a dime for a new multi-centre that will create jobs and economic growth for years to come.”
Simpson expressed concern that all levels of government have undermined their ability to address societal needs through successive tax cuts, both personal and business.
“We cannot address poverty, care for our growing seniors’ population, invest in infrastructure and our public forests, and all of the other really important things we need to take action on without increasing the government’s revenues, either through taxation or more appropriate pricing of our natural resources, or both,” he said.
The Independent MLA stated he also believes the provincial government will not meet the deadline of 2013/14 to achieve a balanced budget without either raising more revenue or dramatically cutting public services.
Simpson is calling on the provincial government to follow up the HST engagement process by giving the standing committee on finance and government services the mandate to conduct a comprehensive assessment of BC’s current tax and revenue regime and examine government’s ability to deliver quality public services within a balanced budget by 2013/14.