DAVID Eby on Sunday, ahead of a rally in downtown Victoria, unveiled his plan to pay for his plan to build a stronger B.C. for everyone by asking millionaires and those who can afford it to contribute a bit more.
“In uncertain times, we have a plan to protect what matters most to you and your family, like healthcare that’s there when you need it and good schools for your kids,” said Eby, BC NDP leader. “Unlike the B.C. Conservatives, we won’t cut healthcare and so we need to be honest about how we pay for it. As we face an unprecedented attack on our economy and rising costs for working families, we’ll ask the wealthiest to chip in a little more. That’s how we’ll build B.C. strong for all of us.”
Net taxes for an average B.C. family have dropped under the BC NDP. Eby’s plan keeps B.C. as Canada’s lowest-taxed province for middle-income earners. Over 96% of residents, individuals who make $190,000 or less, will see no tax increase. The highest earners will pay slightly more through a 2% point increase on the top two tax brackets and a new bracket for income over a million dollars. Even with these adjustments, B.C. will continue to be the second lowest income taxed jurisdiction in Canada for those making $250,000.
“We want everyone to prosper in British Columbia. We celebrate when families and businesses here are successful,” said Eby. “But when people are struggling, we think that it’s fair to ask those at the top to pitch in a bit more so we can make it possible for everyone to get ahead.”
Eby’s plan will raise a billion dollars in new revenue each year to fund improvements in healthcare and to lower costs for British Columbians. The BC Conservatives have not said how they will pay for their promises without cuts to public services.
“We know the BC Conservatives won’t ask millionaires to pay their fair share. They’ve made it clear that they will have to slash the deficit by cutting healthcare and education, on the backs of families,” said Eby. “We’ve seen this movie before. Conservatives have admitted healthcare and education would ‘take the brunt’ of their cuts. Families can’t afford cuts, chaos, and higher costs – especially not right now.”
Tax increase on the highest income earners
* Current income tax context
Taking into account all tax and benefit changes since 2016, net taxes for most families have dropped significantly under the BC NDP.
For example, the net taxes for a family of four (2 parents, 2 children):
● earning $60,000 have dropped by 85% from $4,238 to $643
● earning $80,000 have dropped by 53% from $5,637 to $2,663
● earning $100,000 have dropped by 38% from $7,473 to $4,601
* Proposed change to income tax
The increase to the top two tax brackets and introduction of a new bracket on income over $1 million would start in the 2027 tax year and are projected to raise $225M in 2026/27, $925M in 2027/28, and $1,000M in 2028/29.
The changes only impact the top 3.88% of British Columbian income earners. The increased tax rate only applies on income earned over each tax bracket threshold. There is no change to the taxation on the portion of income of any taxpayer that is below $190,405, so an individual with a taxable income of $200,000 only pays an increased rate on the last $9,595.
For very high income individuals:
● The portion of their income between $190,405 to $265,545 will be taxed at 18.8%
● The portion of their income between $265,545 and $1,000,000 will be taxed at 22.5%
● The portion of their income above $1,000,000 will be taxed at 24.5%.
* Provincial comparison
BC has low personal income taxes compared to all other provinces. It has the lowest income taxes on incomes up to $149,500. After these changes it will continue to have the second lowest taxes on incomes of $250,000 and 3rd lowest on incomes of $400,000. An individual making $250,000 in BC will pay over $5,250 less than they would in Ontario and nearly $12,700 less than they would in Nova Scotia.
*following the income tax adjustments from this proposal
