June 4, 2002

When, Who, How much?

Wednesday, June 5th, marks the first anniversary of Premier Campbell's swearing in ceremony. The very next day he announced massive tax cuts for high income earners retroactive to January 1st, 2001. Throughout the election campaign we were promised that tax cuts would pay for themselves. That was then, this is now.

This year's budget showed personal income tax revenue falling 20% from the previous high. "But it has only been a year" apologists for the government say. Budget documents show that by 2005 government still expects income tax revenue to be almost 10% below the pre-cut levels.

Cuts to services have to be interpreted in the light of the failed tax cuts. As of June 2002 we are only two months into the first of three years of cuts. British Columbians haven't seen anything yet! The budget documents reveal plans to cut over $600 million next year and over $800 million in the third year. If you think the sound of protest is loud now, just watch as those spending cuts ramp up through year three.

People have a small taste of cuts with fewer campgrounds, higher user fees, less for the disabled, worries for seniors, fewer schools, larger classes and substantial cuts to welfare. The only defense the Premier can offer is to point to higher housing starts and increased car sales that really resulted from low interest rates. That's pretty lame in the week the Bank of Canada is expected to increase interest rates.

The government has described its first 12 months as "A Platform for Prosperity". Many British Columbians are now asking when and for whom?