On October 15th a caller to Rafe Mair's show on 600 AM, in defending the Campbell government, bluntly stated the truth about that government. "We need tax cuts," he said, before going on to say that "everyone knew that some people would fall through the cracks to pay for that." Children who are abused and neglected while child protection services are cut can grow up knowing that they were the victims of a policy that allowed people to "fall through the cracks".

A person with a $40,000 taxable income received a tax cut of $640 from the Campbell government. A family of three also got hit with a $432 annual increase in MSP premiums, and over $100 per year in increased sales tax. Increases for tuition, camping, driver's license and dozens of other user fees easily eat up the what's left of the tax cut. Anyone who depends on Pharmacare, supports a relative who needs long term care or needs glasses is in the hole by hundreds of dollars. A $40,000 benchmark is important because statistics from Canada Customs and Revenue Agency (see http://www.ccra-adrc.gc.ca/tax/individuals/stats/gb01/pst/final/pdf/bc/table2-e.pdf) show that 74% of British Columbians had taxable incomes in 2001 that were less than $40,000. In other words, more than three quarters of British Columbians are worse off now than they were before the Campbell government tax cuts. Some families have more than one wage earner, but they also have more work related expenses including child care, which has taken a major hit from the Campbell government. Average family income for families of two or more was $70,814 in 2001, but varied widely depending on family composition. (See http://www.statcan.ca/english/Pgdb/famil05a.htm where it shows that average family income for lone parent families was $36,837 in 2001.)

A dramatic illustration of the redistribution of the tax burden is shown by looking at what happens to the size of the tax cut at two, three or four times the income level of the person at $40,000. At twice the income, $80,000, the tax cut was three times as great, $1,800. At three times the income, $120,000, the tax cut was almost six times as great, $3,400. At four times the income, $160,000, the tax cut was nine times as great, almost $5,000. The biggest cuts came for those with incomes over $250,000; they got an average tax cut of $23,848 - over 37 times the cut for someone at $40,000 in income. With a "progressive income tax" one pays a bigger percentage of one's income as income increases. The Campbell government decreased the progressive nature of the income tax, and at the same time it shifted the tax burden with user fees and premium increases.

If the damage were limited to changes in the tax system, it would be bad enough. The Campbell government made it worse by cutting services disproportionately for the poor. Between fiscal year 2000-01 and the plan for fiscal year 2005-06, welfare payments will be cut by $638 million, and protection for neglected and abused children will be cut by $243 million. It is true that "some people have fallen through the cracks" but that was no accident; it was the plan of the Campbell government to cut major holes in the social safety net.