BC NDP Leader David Eby announced a provincial plan that would raise top personal income tax rates and create a new tax bracket for earners over $1 million.
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BC NDP Leader David Eby announced a provincial income-tax proposal that would raise the two highest personal income tax brackets by two percentage points and add a new bracket for people earning more than $1 million annually.
Under the plan announced Sunday, people earning more than $190,405 would see their provincial income taxes rise to 18.8 per cent, while those above $265,545 would rise to 22.5 per cent, and the new millionaire tax would apply at 24.5 per cent.
The proposal, which Eby said is intended to generate up to $1 billion in new revenue, would affect about four per cent of British Columbians.
“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 said.
Eby’s announcement followed a February budget that raised the income tax on the lowest bracket from 5.06 per cent to 5.6 per cent, according to the provided details. The same budget increased the school tax to $139 million, expanded the provincial sales tax to new services for $534 million (with the increase noted as temporarily paused right before an election call), and eliminated PST exemptions for wool, cable TV and telephone lines for $44 million.
The Conservatives responded by dubbing the personal income tax hike the “doctor tax,” and said it targets income thresholds for new physicians the government is trying to recruit.
In a statement provided with the announcement, the BC Conservatives said: “At a time when British Columbians desperately need more doctors, David Eby has revealed his plan to drive doctors out of our province,” adding that “Emergency rooms are still closing at night, and now he wants to tax the doctors and specialists every community is fighting to recruit.”
The Greens also criticized the proposal, with leader Emily Lowan saying in a statement that “Premier Eby has suddenly discovered that the wealthiest should pitch in to fund the services we all need,” while arguing that “by taxing income, Premier Eby is missing the point.”
Lowan said the “ultra-wealthy don't get rich on paycheques,” and that their “fortunes grow in stocks and real estate,” adding that “his plan doesn't touch a cent of that.”
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