September
15, 2003
Exposing
Campbell's Myths
Apologists
for the Campbell government are increasingly trying to divert
attention from their failures by misrepresenting the 1990s
and by characterizing the NDP leadership candidates as favoring
increases in taxes and in public sector wages. Fortunately,
the BC
Progress Board is providing independent comparisons of
the 90s and the Campbell Era. In its second report the Progress
Board discussed the "combined tax burden" from local
and provincial sources which includes income taxes, consumption
taxes, health insurance premiums, contributions to social
insurance plans and other taxes, including payroll taxes,
fees for motor vehicle licenses, natural resources taxes,
licenses and other miscellaneous taxes. The combined tax burden
was lower for BC than Ontario and Quebec in every year from
1992/93 through 2001/02. From 1998/99 through 2001/02 the
BC and Alberta "burdens" are almost equal. Contrary
to the myth spread by the BC Liberals, BC already enjoyed
low taxes before Campbell's radical tax cuts. What Campbell
did was to shift more of the tax burden onto middle and low
income earners by cutting income taxes disproportionately
for the wealthy and then imposing almost $1 billion in increased
user fees.
Working
TV is providing Internet access to the leadership debates.
The public can hear some candidates say that an NDP government
makes no guarantee that it would not legislate strikers back
to work, and can listen to them talk about the need for economic
growth so as to pay for programs. Of course, it is easier
for the government to campaign against false stereotypes than
it is for it to defend its record.
The Campbell
government said that tax cuts would pay for themselves. Before
the election, economist David Bond said that would not happen,
and now the hard numbers are showing that Bond was right.
Many economists would have said that tax cuts might at least
stimulate some economic growth, but the way the tax cuts were
structured has resulted in BC remaining last in Canada. The
Campbell government has been fortunate to reap the rewards
for industry specific stimulation started by NDP Energy Minister
Dan Miller. Oil and gas revenues from northeast BC will provide
windfall revenues that may offset lost revenues due to failed
tax cuts, but they will not change the shift in the tax burden
from high to middle and low income earners.
At the
October 24, 2001, staged cabinet meeting Neufeld predicted
that BC would have an additional $16.2 billion in revenue
from energy over the next six years. It looks like he may
be right, which means there is no reason for the government
to proceed with cuts such as the closure of hospital beds,
cuts to child protection or reductions in the forest fire
prevention budget. Doing so demonstrates that the government
is mean spirited, ideologically driven and out of touch with
the public.
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