By Two & Out

NDP government too hasty in rolling out new taxes

Mar 14, 2018 | 2:21 PM

THE NDP GOVERNMENT had a couple of big economic problems to try to address as it prepared for its first full budget last month.

It had to do something about the affordability crisis in the Lower Mainland, and it had to figure out a way to pay for health care without the Medical Services Plan premiums coming in.

It seems the government was a little hasty with its solutions to both issues.

On affordability, Finance Minister Carole James has introduced a so-called speculation tax.

Boogie The Bridge

Boogie The Bridge Event Information

Apr 19, 2024

Question of the Week

Is 'Canada's Tournament Capital' an accurate description of Kamloops?

Apr 22, 2024

1000 Ways to Heal

1000 Ways to Heal: Vulnerability

Apr 22, 2024

It’s meant to curb speculation by those who have no interest in the housing component of the real estate market, but simply treat real estate as an investment to be flipped for profit.

It applies to the Lower Mainland, Victoria, and the areas around Nanaimo, Kelowna and West Kelowna.

The problem is, there are a ton of secondary properties in those areas owned by British Columbians.

They aren’t investing for the sake of making a buck; they have vacation or recreation properties to use on weekends and holidays.

An irate West Kelowna council has already demanded to be exempted from the tax.

Meantime, the government has introduced a payroll tax to make up for the revenue lost by the cancellation of MSP premiums.

As health care costs constitute tens of billions of dollars and make up an ever-growing proportion of the provincial budget, the revenue can’t just disappear.

Thus, the province will impose a tax on businesses and organizations carrying payrolls exceeding $500,000.

The government perhaps didn’t anticipate that, in addition to businesses, this will affect local governments, school districts, non-profits – even the BC Wildlife Park.

Our Chad Klassen has detailed a series of stories of organizations whose budgets will be stretched, some even past the point of what they can bear.

Surely, John Horgan and Carole James didn’t intend to penalize those organizations, did they?

Taking over after a 16-year reign by the BC Liberals, the NDP government probably wanted to show it could shift direction dramatically.

In both of these cases, though, it’s finding its tax policies may not have been completely thought through, and may need to be reworked.

Perhaps an extra measure of due diligence should have made up for an over-abundance of zeal.