Record debt and higher taxes on small business a page out of the NDP’s book
February 21, 2012 – VICTORIA – John Cummins, leader of British Columbia’s Conservatives, made the following statement in response to BC Budget 2012:
“Premier Clark and Finance Minister Falcon have delivered a NDP budget. The core features of this budget are ballooning debt levels, higher taxes and growing spending masked by accounting tricks. This is another “fudge-it” budget, but we shouldn’t be surprised to see this from a government whose accounting practices the auditor general described as “unacceptable.”
“The Clark Liberals are raising taxes on the most productive part of our economy – small businesses. By cancelling the planned reduction of small business taxes, with only a month’s notice, they are killing jobs and reducing investment in British Columbia. In fact, this cancellation of the small business tax cut was part of Clark “HST fix” – a tax increase to offset an HST reduction. But the people voted against her HST fix, and small business gets the tax hike anyway.
“The projected debt at the end of the 2012/13 fiscal year is projected to be $58 billion. Five years ago, the government only had $35 billion in debt. That is a whopping 66% increase in just five years. The debt level is $4,400 more debt for every man, woman and child in BC. This growth in debt is even worse than NDP-lead Manitoba. Increasing debt at this rate is not the definition of conservative financial management.
“The government is claiming they are holding the line on spending, but most notably, they took the entire $1.6 billion expense from the HST debacle and applied it to the previous fiscal year, which makes the last year’s expenses look higher and this year’s lower. Accounting smoke and mirrors are being used to show decreased expenses, when spending has increased by $1.1 billion. Spending growth at this rate is not prudent fiscal management, it is a sign of a desperate government that is willing to spend taxpayers’ money to get re-elected.
Speaking of accounting smoke and mirrors, I will ask this question: Although the government is claiming there will be a surplus in the 2013/14 fiscal year, the provincial debt will be increasing by nearly $5.1 billion. Let me repeat: a surplus budget, but debt increasing $5.1 billion? Even if the government is calling it a surplus, the government is spending more than it is taking in. The only surplus the government is going to achieve is a surplus of debt.
“Even though the government is claiming they will have a surplus budget in 2013/14, there is an assumption that natural gas prices will dramatically rise from current levels. The government is gambling on a rise in the natural gas market to produce that surplus. This is a recipe for disaster.
“Most of the spending increases on justice are to maintain existing operations for the RCMP and prosecution services and do nothing to address the massive backlog in court cases and the potential for criminal cases being dropped due to delays.
“After Budget 2012, most working British Columbians will also pay about $75 more on their provincial income tax payments. On July 1, the carbon tax will be increased and will collect $212 million more from the pockets of British Columbians. MSP rates are increasing and will take another $134 million from British Columbians. ICBC is projecting an 11% increase for basic coverage, which is a stealth tax on British Columbians. BC Hydro is raising rates on customers, and is incurring more debt. All of these are measures which will make the lives of British Columbians more expensive.”
Media Contact:
Jim Mitchell
604-355-8152
conservatives@bcconservative.ca






