The provincial finance committee recently wrapped up its budget 2007 public hearings and submitted 36 recommendations to the legislature. One of the key themes identified by the all-party committee was to build upon British Columbia's economic success.

In 2001, the Liberals laid the foundations of today's economic success by cutting taxes, streamlining regulation and spending restraint. Vancouver's skyline is once again dotted with cranes. Rather than packing up and heading to Alberta, young, skilled and educated workers are staying and working in British Columbia. Why The taxpayer-friendly and pro-growth policies of the New Era Liberals helped to once again make British Columbia an attractive place to live, work and invest.

However, in order to build on that success, British Columbia must not only remain attractive but also become competitive. How do we move from attractive to competitive Simple: tax cuts.

In its pre-budget submission this year the Canadian Taxpayers Federation (CTF) is urging the government to create a tax review committee to simplify, lower and flatten income taxes. Our closest neighbour and toughest economic competitor, Alberta, has a single rate of income tax, a generous basic exemption and no debt. British Columbia, on the other hand, has five different marginal rates of taxation, a maze of deductions and credits and of course a burgeoning debt load.

The CTF recommends a three-pronged starter plan to a competitive tax system: increase the basic personal exemption to $15,000, eliminate the top two marginal rates as well as all tax exemptions, credits and deductions. The province would still be far behind Alberta, but these changes would give us an edge on other provinces and will go a long way to simplify, lower and flatten income taxes.

The finance committee echoed the CTF's emphasis on tax competitiveness and recommended the government vigilantly monitor tax rates to ensure British Columbia remains a desirable place to live and invest.

A competitive tax regime attracts business investment, skilled workers and leaves more money in the pockets of taxpayers. That money is spent or invested which spurs job growth, increasing the overall tax base. In other words, as the pie grows the government's piece grows too.

We need look no further than British Columbia to see how tax cuts not only benefit taxpayers but government coffers. Within four years of the 25 per cent income tax cuts, taxation revenues for the provincial government have ballooned 20 per cent!

Growing government revenues means more choices for infrastructure, health care and education. A sustainable means to increase government revenues is enact policies that grow the tax base; not the tax bite.

Tax cuts work, they worked in 2001 and will work again. It's time all taxpayers reap the benefits of British Columbia's economic success; simplify, lower and flatten.