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VICTORIA: The BC division of the Canadian Taxpayers Federation (CTF) today applauded the announcement that personal income taxes will be significantly reduced this and next year.

"A tax cut is a boost in take-home pay for everyone, whether they are in the public sector or the private sector," said CTF-BC director Mark Milke. "Thus, the Finance Minister should not hesitate to point out that this tax cut boosts public sector wages, and should be factored into any wage negotiations."

"The NDP began to cut taxes for all income levels in 1998; the Liberals are right to push ahead in the same direction, especially given the rates in the other two have provinces of Alberta and Ontario. Tax cuts are an investment in future economic growth, they are long overdue, and they are welcome. BC is now, finally, in the tax cuts contest."

Milke applauded the move to cut rates in all five brackets. "The new government has given tax relief to everyone and did not play one income group off another. That is also positive." He noted that the top two brackets previously existed as surtaxes but were rolled into the new provincial tax brackets by the previous government this year. The surtaxes were originally introduced by the Social Credit government in 1991, and labeled as temporary, and expanded under subsequent New Democrat governments.

"Reducing all tax brackets and aiming for the elimination of the surtaxes/top two brackets, and reducing business taxes which are also headed downward in Alberta and Ontario, should be a goal of the new government," said Milke. "Nevertheless - a five-point reduction in BC's top marginal rate is a signal to entrepreneurs that success will be rewarded in British Columbia. It is precisely the right sign to give."

Milke sounded one note of caution: "The government must take a critical look at the spending side of the ledger. The last government intended to spend $2 billion extra this fiscal year when compared with the last budget year," said Milke. "Admittedly, the new government did not have the luxury other governments did in concentrating only on balanced budgets, or only on tax relief, or only on increased health care spending. The BC government must attempt to juggle several priorities which means they must take a critical look at all government spending and bring the budget into balance sooner rather than later."