Long on promises, short on plans to pay for them
Election platforms of NDP, Liberals, Greens say nothing about any new taxes required
The platforms of each party contain scant information about how they intend to pay for all the things they have promised us. There is no section in any party platform listing the new taxes we can expect to pay if they are elected. So, we have to squint a little to see what's coming.
THE NDP
As the incumbent government, the NDP has already tipped its hand on the kinds of things the party sees as fair game to tax: Mostly wealth. A handful of new taxes have proven to be quite popular, especially the speculation and vacancy tax on empty homes. They have also introduced a foreign-buyers tax on real estate and increased the property transfer tax and the school tax on properties worth more than $3 million. This year's budget also introduced a new top bracket of income tax on people who make more than $220,000. The elimination of Medical Services Premiums lifts the burden of paying for medical system off of working folks, and places it squarely on businesses. Are there more changes to come?
You'll have to wait and find out.
THE LIBERALS
The Liberals have promised to suspend the provincial sales tax for one year, then bring it back at three per cent for another year. How they will replace $11 billion in revenue isn't clear. While some economists have noted that poor and middle class people pay a larger percentage of their income on consumer goods while are subject to the sales, tax, the NDP noted that cutting the PST will not help anyone with rent, groceries or child care, but it will make yachts cheaper.
Under a Liberal government, the speculation tax would be replaced with a flipping tax aimed at condo speculators. They are promising a tax credit for seniors of $7,000 a year to assist with the cost of home care. The small business tax will be eliminated and an independent fair tax commission would review every one of “the NDP's 23 different new or increased taxes.”
THE GREENS
The Green party has vowed to apply the carbon tax to slash burning “to reduce carbon emissions from our forestry sector and ensure that we use residual materials.” Expect a property tax surcharge on foreigners who own homes here, along with a “flipping” tax on properties bought and sold over a short period of time. Likewise, the speculation tax will be extended to condo resales. Say goodbye to bare trust property transfers as a means to avoid the property transfer tax.
The Greens' policy document condemns “regressive” taxes and promises “a simpler, transparent and truly progressive tax system by eliminating loopholes and frivolous tax credits.” It also supports the use of taxes on carbon, tobacco, and alcohol.
THE EXPERT
“This economic crisis isn't like any we've seen. It has hit some people extremely hard in small business and the service sector,” said SFU economist Steeve Mongrain. “So policy needs to be quite targeted.”
While the Liberals' PST pledge makes some goods cheaper for everyone, the New Democrats' idea of giving families a $1,000 recovery benefit to spend is a “more direct approach.” The bonus is that it benefits people with modest incomes and not the rich, “but it would be even better if it could be directed to the people and sectors that have been most seriously impacted.”