Chapter Four
"Taxpayers to see more money," The Vancouver Sun, A5, Budget 2007, Wed Feb 21, 07
BC's tax rate will be the lowest in Canada when the tax cut amounted Tuesday comes into effect. The government has promised that over the next two years at least 10% will be taken off the income taxes for people who make up to $100 000. This gives the tax payers back a total of $1.5 billion. The government supports this tax cut by saying they are helping families fund homes, by giving homeowners tax breaks. As well as help the economy by enticing companies to operate in BC. In addition to this the government promises an increase in shelter beds and support housing.
This is supportive of Wagner's theory in that the government controls the amount of taxes paid. This is so because British Columbians will expect the same level of service as before because they think that their economy can now fund more of it because the government has decided to cut taxes. After all, why will they cut taxes if they don't have enough money to spend? It's not as if they are grubbing for voters since election is still a time away. In Canada, we expect or hope that the government will make sound decisions regarding how and how much taxes need to be spent. In addition, Peacock-Wiseman's theory, in which taxes are collected according to average person's view of what's enough, will have to be put into action on a large scale before the Liberals will be able to raise the taxes again after the tax cut. However, when one looks at the actions of Victoria it goes against Wagner's theory in that there is a need (the homeless shelters) for the tax dollars and yet the government is cutting taxes.
Victoria's promises tax cut will put BC's tax rates even lower then that of Alberta. However, the only difference between the two provinces is that Alberta can afford it because of their lucrative oil industry. After all without the tax cuts the increase of shelter beds and support housing could be even more substantial. Also, it's true that housing is becoming increasing expensive in Vancouver and other parts of BC but the tax cut really isn't necessary when people are still able to purchase these houses. Also, a more efficient way to deal with the dramatic increase in prices will be to lower interest rates on mortgages or to lower property tax, not the income tax.
Even though a 10% tax cut over the span of two year sounds really nice the general public will not even notice the $150 or so taken off their taxes over the course 2007. It is more important, I think, for British Columbians to start thinking outside the box and see where the "extra" $1.5 billion could go towards. Such as helping those with truly low incomes or decreasing the size of the provincial debt.
"Taxpayers to see more money," The Vancouver Sun, A5, Budget 2007, Wed Feb 21, 07
BC's tax rate will be the lowest in Canada when the tax cut amounted Tuesday comes into effect. The government has promised that over the next two years at least 10% will be taken off the income taxes for people who make up to $100 000. This gives the tax payers back a total of $1.5 billion. The government supports this tax cut by saying they are helping families fund homes, by giving homeowners tax breaks. As well as help the economy by enticing companies to operate in BC. In addition to this the government promises an increase in shelter beds and support housing.
This is supportive of Wagner's theory in that the government controls the amount of taxes paid. This is so because British Columbians will expect the same level of service as before because they think that their economy can now fund more of it because the government has decided to cut taxes. After all, why will they cut taxes if they don't have enough money to spend? It's not as if they are grubbing for voters since election is still a time away. In Canada, we expect or hope that the government will make sound decisions regarding how and how much taxes need to be spent. In addition, Peacock-Wiseman's theory, in which taxes are collected according to average person's view of what's enough, will have to be put into action on a large scale before the Liberals will be able to raise the taxes again after the tax cut. However, when one looks at the actions of Victoria it goes against Wagner's theory in that there is a need (the homeless shelters) for the tax dollars and yet the government is cutting taxes.
Victoria's promises tax cut will put BC's tax rates even lower then that of Alberta. However, the only difference between the two provinces is that Alberta can afford it because of their lucrative oil industry. After all without the tax cuts the increase of shelter beds and support housing could be even more substantial. Also, it's true that housing is becoming increasing expensive in Vancouver and other parts of BC but the tax cut really isn't necessary when people are still able to purchase these houses. Also, a more efficient way to deal with the dramatic increase in prices will be to lower interest rates on mortgages or to lower property tax, not the income tax.
Even though a 10% tax cut over the span of two year sounds really nice the general public will not even notice the $150 or so taken off their taxes over the course 2007. It is more important, I think, for British Columbians to start thinking outside the box and see where the "extra" $1.5 billion could go towards. Such as helping those with truly low incomes or decreasing the size of the provincial debt.
posted by AmyYBlkF at 10:39 PM
1 comments
