VICTORIA: The BC division of the Canadian Taxpayers Federation today called for Premier Glen Clark to reverse his opposition to federal tax cuts at the annual premier's conference, to be held this week in Quebec City. The Federation cited the tax revenue windfall BC receives due to federal tax policy.

"BC's provincial treasury will receive $500 million in extra income tax revenues in 1999 alone, simply because the federal government has not properly indexed tax bracket thresholds for inflation since 1988. That's taxation by stealth, and every province but Quebec reaps a pirate's treasure of extra tax because of it," said CTF-BC director Mark Milke.

Milke noted the federal policy, which raises tax bracket thresholds only (partially) if inflation is above three percent, means BC's taxpayers will also pay over $1.4 billion in extra federal tax this year, due to the compounded effect of "bracket creep" taxes. The federal government's total extra tax take due to bracket creep taxes is almost $10.2 billion in 1999.

Provincial income taxes are calculated as a percentage of federal tax payable, with the exception of Quebec, which calculates provincial taxes separately.

"If Mr. Clark needs a reason to push tax cuts, here's one: Someone with a taxable income of $40,000 in 1999 will pay $1,324 in extra federal and provincial tax, compared to what would have been paid if tax brackets been properly indexed for inflation since 1988." Milke added that including 1999, a $40,000 taxable income surrendered $9,418 in extra tax since 1988 due to bracket creep.