We will not be undersold, the old TV car commercials used to blare. If only the B.C. government would take that message to heart.
Like any business, governments are usually careful to make sure their taxation schemes are competitive with neighbouring jurisdictions. Almost every government, at every level, compares themselves to their peers to ensure they are not driving out taxpayers with unnecessarily higher rates.
The B.C. government is no different. Buried in the back of every provincial budget document is Table A3, comparing six tax scenarios for families, individuals and seniors in every province in Canada.
Not too long ago, these charts showed B.C. had the lowest personal income taxes in the country, which used to be the source of much back-slapping and self-congratulation for the B.C. Liberals.
In fact, the B.C. Liberal backbench still claims B.C. has 鈥渢he lowest personal income taxes in the country for those earning under $121,000 per year.鈥�
Unfortunately for taxpayers, that is no longer true. In four of the six scenarios listed in the budget document, B.C. now trails other provinces.
In the most common scenario, Saskatchewan and Ontario are beating us on provincial income taxes alone, and B.C. has fallen to third place on total tax burden behind Alberta and Saskatchewan.
According to Statistics Canada, B.C. households make an average of about $70,000 a year. Using the closest B.C. budget scenario 鈥� a double-income family of four, making $60,000 a year 鈥� they would pay $1,362 in provincial income tax in B.C., compared with $1,035 in Saskatchewan and $1,164 in Ontario. Alberta sits at $1,777.
Add property, sales, fuel, carbon and Medical Services Plan taxes, and that B.C. families pay an average of $6,736 in provincial taxes 鈥� nearly $2,800聽more than Alberta and $1,600 more than Saskatchewan.
Alberta鈥檚 lack of sales and MSP taxes catapult it into first place. It鈥檚 no small amount 鈥� it鈥檚 like a new $50 bill in your pocket every single week of the year, just for living in Alberta.
Our tax burden has surpassed our western neighbours, and it has been noticed: Alberta and Saskatchewan have grown due to 91原创s moving from other provinces, while B.C. lost 8,657 people to the rest of Canada in 2012.
Worse yet, B.C. taxpayers are losing ground compared to just five years ago. The 2009-10 B.C. budget noted the total provincial tax burden for the $60,000-per-year family was $5,759, almost a thousand dollars less than it is today. That鈥檚 the biggest five-year jump, in real dollars, in the country 鈥� an extra $20 bill handed over to the B.C. government, every single week of the year.
People are already beginning to vote with their feet, leaving our province for greener pastures 鈥� another spin that will continue to speed up if the B.C. Liberals do not reverse course.
Jordan Bateman is B.C. director of the 91原创 Taxpayers Federation.
