taxes

On February 18th British Columbians will be watching to see if finance minister Mike de Jong’s budget sets out a plan to deliver on his government’s ambitious goals with respect to economic growth and job creation. And the truth is, the province needs it. The past year was a disappointing one for BC in terms of economic and employment growth compared to other provinces.

Until recently, there was a consensus in favour of competitive business taxes. But whenever governments are strapped for cash - which is most of the time for most of them, given their voracious appetite for spending - eyes quickly turn to corporate income taxes as an expedient and presumed painless way to extract more revenue. Two provinces raised corporate tax rates in 2013.

While Premier Christy Clark aims “to create an environment where growth and investment can flourish,” little has been achieved since last year’s electoral victory. If Premier Clark is to help British Columbians obtain the desired prosperity and jobs, her top economic priority should be to make BC the most investment-friendly jurisdiction in Canada.

Here’s what’s needed.

A new year can bring new possibilities. It’s a chance to take stock of what we’ve accomplished in the past year and to set new goals for the future. It’s also, however, when Canadian governments typically enact new taxes. Unfortunately, governments across the country in recent years have been all too keen to bring in new taxes or increase existing ones, resulting in squeezed household budgets. The question for 2014 then, is will this trend continue or will governments recognize it’s time to give taxpayers a break?