BC United Pledges $5.6B Income Tax Cut If Elected

BC United Leader Kevin Falcon addresses a press conference at the legislature in Victoria, on Feb. 22, 2024. The Canadian Press/Chad Hipolito

The BC United Party has promised to eliminate $5.6 billion in provincial income taxes if elected into government this year. 

It’s a plan that would see provincial income taxes eliminated for about 60 percent of residents, according to an Aug. 13 news release. 

The party says it will increase the basic personal exemption from its current $11,980 to $50,000, resulting in an estimated 2.4 million residents not having to pay any provincial income tax. 

“BC United will implement the largest tax cut in B.C.’s history by eliminating the provincial income tax for 60 percent of British Columbians,” party leader Kevin Falcon said in the release. “This historic tax cut will put an average of $2,050 back into your wallet, helping you afford essentials like food, gas, and kid’s extracurricular programs.” 

The cut is projected to cost $5.4 billion a year or about one percent of the provincial nominal gross domestic product (GDP). BC United said it expects the cut to increase consumer spending, economic activity and job creation, which will offset a “significant amount” of the lost revenue. 

The announcement was criticized by opposition parties.

NDP leader and Premier David Eby called the idea “extreme” and “radical.”

“It means fewer schools, fewer teachers, fewer new schools, any new hospital expansions being cancelled, cuts to doctors, physicians, people who work in hospitals, nurses,” he said in an Aug. 13 video shared on the X platform. 

Eby said that the BC United plan would see taxes cut, but fees for other services would increase. 

A spokesperson for the Conservative Party of BC told The Epoch Times the announcement signalled the party was looking to sway voters away from the Tories as the provincial election approaches on Oct. 19. Spokesperson Anthony Koch said the Tories represented the best option for voters seeking “real tax cuts and common sense policies.” 

BC Greens Leader Sonia Furstenau said BC United’s plan would cut revenues when they are needed most. 

“BC United’s plan will not help our province thrive, it will only gut our budget when our healthcare system is already in crisis,” Fursteanau said in an emailed statement.

“Their $5.4 billion proposal, combined with a promise to balance the budget, would result in $12.4 billion in cuts when we need services the most.”

Other Parties’ Tax Promises

The NDP has not made any promises of tax cuts, according to the party’s website. The website notes that over the last several years that the NDP has been in power, tax credits have increased. This includes a boost to the climate change tax incentive by 70 percent, BC Family Benefit payments, and the introduction of a renters tax credit.

BC Conservatives say they will lower taxes if elected, including cutting the carbon tax, and have promised a smaller government.

“The government is an inefficient delivery vehicle for services and its growth is cannibalizing private-sector job creation. Wasteful spending should be cut and the savings returned to taxpayers,” said the party’s website.

British Columbia’s Green Party policies, updated in 2023, say they want a “simpler, transparent, and truly progressive and fair tax system.” If elected, they would look to eliminate loopholes and “frivolous” tax credits, the document says.