28 October 2010

BC Tax Policy

When BC Premier Gordon Campbell spoke last night in a 20-minute TV special, he announced a 15 percent reduction in income taxes for anyone earning less than $72,000.

I applaud this move. Campbell should have announced it at the same time he announced the HST. It would have made clearer to British Columbians the connection between the income tax reduction and the consumption tax increase.

As I've stated previously, I prefer income not be taxed at all and that all levels of government use consumption taxes as their primary source of revenue. Ideally, the consumption taxes would include not just general sales and carbon taxes, but also more targeted taxes intended to curb and reward behaviour, and higher rates on luxury goods and services that only the wealthy can afford.

Meanwhile, Carole James has this to say:

I believe in a competitive tax environment but this is a ridiculous way to set tax policy... Fiscal irresponsibility and a government trying to buy back public support is the only thing I saw with this tax cut... It's unclear where the money will come from.

Might it not be from the HST that you and your party have been campaigning so fiercely against?

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