" Rather than just talking about where our tax rates are, where are we in terms of the total burden of costs that government puts on citizens? When you add in MSP premiums, hydro rates, and many of those other costs, where are we at?" Premier-designate Christy Clark, speaking to the media.
If Christy Clark's remarks were anything more than the idle musings of a former radio talk-show host, she could seriously undermine any bragging rights that Gordon Campbell may take as he leaves office.
Cutting taxes has always been at the top of the to-do list for the Campbell government. As Mr. Campbell now steps aside, British Columbia's personal income taxes are the lowest of all provinces for taxpayers earning up to $119,000 and second lowest for those above that income level. The general corporate income-tax rate has been cut by 36 per cent over the decade while the small business corporate income-tax rate, as of April 2012, will be completely eliminated.
To raise the question, as Ms. Clark has done, is to open debate over how those income-tax cuts were financed. The province's economic growth over the decade has not been enough to cover the bills. British Columbians have paid for those income-tax breaks by spending more on medical premiums and Pharmacare, on property and gas taxes, and on a host of fees, from parks to ferries. They have also given up a wide range of services.
Ms. Clark may have seen calculations set out in last month's provincial budget before she made her comments. The government looked at property, sales, fuel, carbon and income taxes for individuals and families in various income brackets.
A single person with an income of $80,000 pays $6,978 in direct provincial taxes, the lowest in Canada. A two-income family of four earning $90,000 pays $7,975, about $525 more than an Alberta family in similar circumstances, but once again, less than taxpayers in the rest of the country.
Including MSP premiums makes only a slight change in the comparisons. The single person pays slightly more than an Albertan but still significantly less than taxpayers in other provinces. The family pays $9,427, about $2,000 more than Albertans but less than others.
British Columbians maintain their advantage even if you include hydro rates. Not surprisingly, the most relevant factor is the source of power, not the government. Provinces that rely on mighty hydro dams for their water – B.C., Manitoba, Newfoundland and Quebec – have lower costs.
A comparison drawn up by Hydro-Québec of residential consumption shows that the average price, as of last April, for 1,000 kilowatt-hours was lowest in Montreal. Vancouver was third lowest, trailing behind Winnipeg and Montreal. Electricity rates in Calgary were more than 20 per cent higher than Vancouver.
Was it just coincidence that Ms. Clark did not mention the most obvious areas where costs have shifted from the public purse to families? Consider health care, education and public transportation. British Columbians are spending much more in all three areas than families in any other province in Canada.
Education is especially costly for British Columbians. Statistics Canada, in its calculation of the average expenditure per household for 2009, found that British Columbians are spending more than twice as much as Manitobans on education and almost three times as much as Quebeckers.
Child care is another area that can make a serious dent in the family budget. British Columbians pay more than those in six other provinces, although less than households in Ontario, Alberta and Prince Edward Island.
Ms. Clark has indicated she believes a comparison of income-tax rates alone is not sufficient. But where are we at? If she looks at those areas where government has shifted costs to families, she may tarnish one of Mr. Campbell's proudest accomplishments.