This week’s provincial budget is both a result and a reflection of our times.
It’s a result of four decades of the mantra that government and taxes are bad, free trade and “competitiveness” are good. It’s a reflection that this agenda has led to economic collapse and governments that no longer have the revenue to deliver the public services people still expect from them.
Let me be plain: the fiscal restraint in this budget is essential if we don’t want to go down the path of other governments that gave in to the pressure to cut taxes but haven’t controlled their spending.
We can’t have it both ways: years of tax reductions and continued robust public services.
Problem is: this year’s budget cuts and its attack on household disposable income (MSP premium increases, BC Hydro increases, etc.) will compound the current recession. Too many families are living paycheck to paycheck to absorb more costs and to pay for services they used to get from their government.
The government had alternatives.
Instead of raising MSP rates, it could have raised the corporate tax rate now (instead of “maybe” in 2014). In a natural resource constrained world B.C. doesn’t need to have the lowest corporate tax rate. The government could also charge more for access to our natural resources and slash corporate subsidies.
The finance minister could also have raised income assistance and disability rates; this is government-enforced poverty and every dollar invested (yes, invested) in this would end up in small businesses and local economies and would reduce costs to government in areas such as health care and the justice system.
This budget is going to hurt. Unfortunately, the pain is going to be felt most keenly by those already hurting as a result of years of “fiscal restraint” compounded by the current recession.
Bob Simpson is the Independent MLA for Cariboo North.