February
20, 2004
Budget
Distortions - Not exactly Lies
($203 million tax grab)
The Campbell
Liberals are using tricky words that can mislead the public
without going so far as to actually lie. Last year they said
that they put money back into the Ministry of Children and
Family Development. The truth is that they cut $135.4 million
in fiscal year 2003-04 and the current budget calls for an
additional cut of $70.6 million. Their claim of putting money
back into the budget is based on cutting "just"
$70.6 million rather than $191.0 as previously planned. That
is like saying you should feel good because only one of your
limbs is ripped off instead of all of them. $70.6 million
will be cut from services to developmentally disadvantaged
adults and from child protection.
The Campbell
gang is at it again when they say that they put $80 million
more into the welfare budget. The truth is that they cut $253.5
million in fiscal year 2003-04 and the current budget calls
for an additional cut of $116.9 million. Their claim of putting
money back into the budget is based on cutting less than originally
planned, but there will be less for the needy, not more.
One of
the worst examples of tricky wording came from Premier Campbell
when in response to information that budget documents show
families worse off under his government; he said "they
have more in their pay cheques". Reducing income taxes
may have increased pay cheques, but higher gas taxes, higher
MSP premiums, a higher sales tax, higher school taxes and
higher fees for dozens of services means that families have
less money for groceries.
An appendix
in the budget compares the taxes paid by several "typical"
families in different provinces and it is possible to compare
those appendices from year to year. Last
year, the appendix estimated that a typical two income
family of four earning $30,000 would have a total tax bill
of $5,371 (including provincial income tax, subtracting child
benefits, adding property tax, subtracting the homeowner grant,
and adding sales tax, fuel tax, MSP premiums, federal income
tax and GST). This
year the appendix said that same family had a total tax
bill of $5,553. Finance Minister Gary Collins attempted to
pass the buck to the municipalities when, on CFAX's Joe Easingwood
show, he said that the increase was the fault of the municipalities
because they increased property taxes. He's wrong (again).
Collins would have you forget that the province sets the property
tax rate for rural areas and for schools. On March 4, 2002,
the Ministry of Revenue announced a 2% increase
in the tax rate for both rural property tax and school
property tax; this year a 2.1% increase in the school property
tax rate was announced (whispered on page 87); that is on
top of the increased take the province receives from inflated
property values. Property tax is a line item in Collins' budget.
It estimates that the
province will receive $1.655 billion in property tax revenue
in 2004-05; that is $203 million (14%) more than it received
in fiscal year 2000-01. Maybe Collins should apologize
to the municipalities for blaming them for his tax shift.
Last year his
budget document admitted to $96 million in increased average
gross residential school property taxes because of inflation
over just two years ($34 million in 2003-04, and $62 million
in 2004-05 before the newly announced rate increase).
It is
possible to go through dozens of examples of "typical"
families but every family is different. The appendix to the
budget does not include higher drug costs, tuition fees, license
fees, parking fees, eye glass exams, the Hydro rate increase
or dozens of other items that affect each family differently.
The hard fact is that the lower and middle income families
have been hurt as the Campbell government heaped taxes and
fees on them in order to pay for the really big income tax
cuts given to the six figure set. No matter how they play
with tricky words, families who are paying more know that
they have less in the New Era.
|