The Canadian Taxpayer Federation's national report on increasing payroll taxes was incorrect in some areas and also missed some important facts that British Columbians should know.
While MSP premiums are increasing by six per cent to reflect rising health care costs, government adjusted assistance levels for low-income families in January 2010 to more than offset both the 2010 and 2011 increases. In fact, lower income British Columbians on premium assistance will generally pay less MSP in 2011 than they paid in 2009.
B.C. also has the lowest provincial personal income taxes in Canada for individuals earning up to $118,000 annually and, according to the CTF's own numbers, has among the lowest total taxes in the nation. Most taxpayers have seen their provincial income taxes reduced by at least 37 per cent since 2001.
The CTF's figures also didn't account for the fact that we've introduced new tax credits that provide up to $920 for a family of four and programs like Rental Assistance that provides a maximum monthly assistance of between $585 and $765 to lower-income working families depending on where they live in B.C.
The CTF report also assumed inflation increases would be much higher than what experts expect for 2011. Had the inflation rate used to "index" the actual income tax system, the projected impact to taxpayers would be much lower - and more in line with the likely scenarios for 2011.
Our government will continue to focus on reducing costs and providing direct support to families to ensure all British Columbians have the opportunity to prosper in the new year.
Colin Hansen
Minister of Finance
