"There will be no new tax cuts in the upcoming budget." - Premier Ujjal Dosanjh in his speech to the province, February 27.

Well, it's official - tax relief is now Public Enemy #1, at least to BC's government. Premier Ujjal Dosanjh, in his recent speech might as well have labeled tax cuts the "great Satan" and burned pictures of the Opposition leader (who, if elected, promises tax cuts.) Instead, the Premier was more diplomatic, assuring viewers that he too would have liked tax cuts, but the money's just not there. (At this point in the show, it might have helped to have a picture of Mother Hubbard looking over her bare cupboard with the music swelling and Mr. Dosanjh tearing up for the cameras.)

Mr. Dosanjh is not terribly persuasive on this one. Back in the early 1990s, Hansard records the then backbench MLA as arguing that "among other things, a budget is for imposing fair taxes," and that "a great budget is for ensuring that the top 8 percent of income earners in B.C. pay their fair share for a change." This was in defense of Glen Clark's two-step, two-budget, tax hike of $1.5 billion (on top of a 1991 Social Credit tax hike of $250 million).

Thus, Mr. Dosanjh's attack on tax relief was to be expected. It is simply his party's bias that government deserves first crack at one's paycheque and that government spending priorities are more important than personal ones, including spending, saving, investing or personal debt repayment. One gets the feeling that tax relief from this government has been grudging, small, and often misrepresented.

For example, after the federal budget update this past November, taxpayers would have received a greater cut in provincial income taxes this year and last, had we stayed linked to the federal tax system. As federal rates went down, the piggyback effect would have lowered the provincial tax bill as well. (The Canadian Taxpayers Federation supports de-linking from the federal tax calculation system, providing provinces cut their taxes equivalent to what would have occurred had they stayed linked. After all, in the past, provinces reaped a windfall in extra revenues every time Ottawa raised rates or when bracket creep taxes inflated federal and provincial coffers.)

This current attack on tax relief by the government is a bit much. Government ministries, before including health care in the total, will spend $150 million more than planned in the original 2000-01 budget. Add in new health care spending, and the unplanned spending is over $1 billion. So $1 billion in new spending is responsible and tax cuts at even say, half that amount - are reckless?

The New Democrats' own Caucus Retreat Policy Plan from last summer surmised that a "further reduction of personal tax rates to attract employees" should be considered. Dan Miller has, on several occasions, said BC's marginal rates are too high. And Joy MacPhail began cutting the top marginal rate during her term in Finance.

Thus, despite their past rhetoric and some actions, BC's governing MLAs have now chosen to put short-term electoral calculations in a couple of NDP ridings ahead of long-term economic growth for the entire province. Ontario and Alberta have significantly cut their personal tax rates. Both Ontario and Alberta are both cutting business taxes dramatically over the next four years, which will result in stronger economic growth, more jobs, and higher wages.

BC is way behind the tax cuts competition with the other two "have" provinces. Our per capita income is already $700 below the national average, compared with $500 above the average 10 years ago. Mr. Dosanjh's speech will do nothing to reverse that trend.