A B.C. United government would eliminate the provincial income tax on the first $50,000 earned by every British Columbian, Leader Kevin Falcon announced Tuesday.
The move would save every British Columbian $2,050 a year at a time when people are struggling to afford the rising cost of living, Falcon said.
The tax cut, which the party claims would be the largest in B.C.’s history, would cost the province $5.4 billion in tax revenue.
“B.C. United will implement the largest tax cut in B.C.’s history by eliminating the provincial income tax for 60 per cent of British Columbians,” Falcon said in a statement.
“This historic tax cut will put an average of $2,050 back into your wallet, helping you afford essentials like food, gas and kids’ extracurricular programs.”
Falcon made the announcement in Victoria on Tuesday morning outside the legislature. It’s the biggest policy proposal announced so far by the official Opposition, as B.C. United continues to lag behind the B.C. Conservatives in opinion polls
A poll of decided voters released this week by Leger shows just 10 per cent of people surveyed intended to vote for B.C. United, while 39 per cent intended to vote for the B.C. Conservatives. The survey showed 42 per cent of those asked intended to vote for the ruling B.C. NDP.
The poll does not include undecided voters.
The online survey was conducted Aug. 2-5 among 1,001 British Columbians aged 18 or older, randomly recruited from Leger’s online panel. A margin of error cannot be associated with a non-probability sample in a panel survey.
Proposed tax cut details
Falcon said the provincial income tax cut would be applied directly to people’s paycheques, saving them about $100 every two weeks.
The party, citing Canada Revenue Agency data, says 2.4 million B.C. taxpayers earn less than $50,000 a year.
Right now, anyone who makes $11,980 a year or less does not pay provincial income tax, but the B.C. United plan would raise that exemption to the first $50,000.
Falcon said the marginal tax rate will not change for higher income earners, who will also have their provincial income tax waived on the first $50,000.
The party insisted it would not cut social services to offset the $5.4 billion hit to the provincial coffers, but instead would find savings in the public service budget it claims has ballooned under the B.C. NDP.
During the 2020 election, former B.C. Liberals leader Andrew Wilkinson announced that if elected, he would cut the seven per cent provincial sales tax for one year and then bring it back at a reduced rate of three per cent until the economy recovered from the pandemic.