VICTORIA: The BC division of Canadian Taxpayers Federation (CTF) today welcomed the tax cuts announced in today's provincial budget, but pointed out much of the tax relief would have occurred anyway due to the recent federal budget.

"The average provincially-initiated tax cut per taxpayer is $22.63," said CTF-BC director Mark Milke. "Anything above that amount would have occurred anyway thanks to the recent federal budget," said Milke.

"The federal Finance department estimates that the federal budget would have reduced provincial taxes by $150 million this year. That figure must be subtracted from today's announcement of $193 million" said Milke.


The personal tax cut numbers for 2000:

Today's announcement: 181 million

Previously announced measures 12 million

Total 193 million

Provincial tax cuts due to federal 150 million (Assuming BC stayed linked to previous

measures tax-on-tax system.)

Total BC tax cuts over and above what

would have otherwise flowed to taxpayers: 43 million (Divided by 1.9 million BC taxpayers = $22.63)

On Debt:

"By 2001, the current government will have increased BC's total by over $19.2 billion since 1991," said Milke. "Interest costs since just 1997 are up by $426 million. It's time for the government to get serious about cutting the public sector in order to provide room for the private sector. This budget, while a baby step in the right direction on tax cuts, sends out the message that the status quo in BC is good enough. It's not. "

On The Overall Direction:

"In order to get to a better economy, more jobs and higher wages. British Columbians need both balanced budgets and tax cuts which means something else - spending - has to give, "said Milke. "This budget preserves a too-large public sector at the expense of the private sector. BC's size of government relative to GDP is 20.2%. That compares to 13.3% in Alberta and 16.7% in Ontario."

Milke noted that while the government may be cutting some taxes, crown corporation revenue is forecast to be up by $481 million over 1996. And on federal transfers, BC's government will have $881 million more this year when compared with 1998 - the trough of federal transfers - and $255 million more than in 1995, the previous peak for federal transfers."

"Taxpayers - via Ottawa and through crown corporations - have certainly helped out Victoria's bottom-line. It is now time for the provincial government to return the favour."