Most British Columbians believe middle class is paying ‘too much’ in taxes

Survey says: Corporations, high-income earners should cough up more to governments

This year, British Columbians have more options than ever to file their taxes. Accountants, who consistently garner more than 80 per cent on surveys that look at “respect for professions,” are always happy to provide their services for a fee. There are plenty of software options as well, including some truly free ones, to file on time.

Yet there is one thing we can do nothing about at this point in the fiscal year: Deciding what we want to pay.

After the provincial government introduced its most recent budget in February, Insights West asked British Columbians about taxes. The responses suggest that we seem very concerned with an equal playing field, as strong majorities believe the province’s middleincome residents are paying either “too much” (51 per cent) or “their fair share” (44 per cent) of taxes. The situation is similar when residents assess lower-income households (41 per cent say they pay “their fair share,” 46 per cent say they pay “too much”).

There are two groups that do not get off easy in the eyes of the public. Across B.C., 69 per cent of people believe that, when it comes to taxes, corporations pay “too little.” In addition, 71 per cent believe that higher-income residents also pay “too little.”

While it would be normal to assume that younger residents with a liberal mindset would be more upset with the current tax situation, it is instead residents aged 55 and over who are more likely to chastise corporations (72 per cent think they pay “too little”) and higher-income residents (80 per cent say they need to pay more).

Insights West put the same question to Albertans after their budget was delivered in March. The numbers are not very different when it comes to people, with 72 per cent of Albertans saying that higher-income earners pay “too little” in taxes, and large majorities claiming that lower- and middle-income earners are either paying their fair share or paying too much.

Even in the absence of a provincial sales tax, Albertans feel that the taxes are just too much to bear for the people in the lowest brackets.

The glaring difference in Alberta is the unmistakable disdain for corporations, with 82 per cent saying that they pay too little in taxes — 13 points higher than what is seen in B.C.

Maybe British Columbians are more appreciative of the benefits of corporations. Perhaps Albertans are simply fed up with a system that appears to help businesses but does little for the average resident. The perceptions, while harsh, are partly based on recent policy announcements.

This year, B.C. announced that the 16.8 per cent tax rate on personal individuals earning more than $150,000 a year will fall to 14.7 per cent in 2016. Measures like this, even if they are conducive to a surplus, offer little comfort for lowerand middle-income earners who are experiencing hikes on a wide range of fees, from the Medical Services Plan to insurance rates.

Alberta, where the government’s spending plans have suffered enormously due to the drop in oil prices, also had to get creative by using the word “tax” as little as possible. A health care levy will be introduced in July. The price of alcohol and tobacco went up, along with insurance premiums. Even speeding tickets will cost them more. The initial reaction to the budget was extremely negative for the Alberta government, which is now heading to an election on May 5.

Canada’s two westernmost provinces face dissimilar fiscal situations. One posted a surplus, while the other has a $5-billion deficit. One has a provincial sales tax that was not harmonized as the government would have liked, while the other knows that any similar measure would be political suicide.

Still, there is little that can be done in either province to change perceptions from the average resident. We react negatively when budgets have few “goodies” for our group. The message seems to be: “Corporations are favoured; the rich get all the breaks; the middle class is hurting; and lower income residents need more help.”

As we file our taxes, we are bound to look at what we pay as too much, no matter how many bar charts we are exposed to. We want to pay less. We want things to be fairer. It is a difficult time for proponents of new taxes, or those defending trail-blazing budgets, to place a ballot in the hands of constituents.