VICTORIA: The BC division of the Canadian Taxpayers Federation today welcomed news of federal tax cuts. The CTF expressed hope that regardless of which party won the next federal election, tax cut plans are turned into reality come January. The BC office also noted, with disappointment, that because the provincial government cut the link between federal and provincial tax calculations earlier this year, British Columbians will not get an automatic provincial reduction.

"Thumbs up for the federal tax relief. One caveat: British Columbians would have received at least $500 million next year in personal provincial tax relief due to federal decisions made in 2000," said CTF-BC director Mark Milke. "The effect would be worth $640 million by budget year 2004."

Background: The BC government "de-linked" from the federal tax calculation system earlier this year. Previously, when federal tax rates or inflation pushed taxpayers into higher taxes, provincial taxes also rose. When the Province changed the tax calculation system, that link was broken. That means taxpayers will not now, as Ottawa moves in reverse, receive an automatic provincial tax reduction.