Capital Report~February 21, 2008
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Finance Minister Carole Taylor introduces B.C.'s Balanced Budget 2008: Turning to the Future, Meeting the Challenge. February 19, 2008.

Balanced Budget 2008 Protects Environment While Promoting Business

Finance Minister Carole Taylor rose in the Legislature on Tuesday to introduce British Columbia’s Balanced Budget 2008. The budget provides for a wide range of new measures to address climate change and provides incentives for British Columbians to do their part by making greener choices. At the same time, the budget continues to encourage the economic investment which has fuelled B.C.’s success.

Encouraging British Columbians to Go Green

  • Beginning July 1, 2008, British Columbia will introduce a fully revenue-neutral carbon tax with built in protection for lower income British Columbians. The tax will begin at a low rate and increase gradually to give individuals and businesses time to adjust.
  • Revenues from the carbon tax will be returned to businesses and individuals through a Climate Action Credit for persons with lower incomes and reductions to tax rates.
  • Every British Columbia resident will receive a one-time, $100 Climate Action Dividend to help people adopt greener lifestyles. British Columbians can then invest that $100 in low-flow shower heads, insulation and weather-stripping for windows and doors, and other low-cost options to reduce their carbon footprint, as well as their monthly utility bills.

Investing in British Columbians

  • By 2009, every British Columbian will see their income taxes reduced by five per cent on the first $70,000 in earnings. Further reductions will come as the revenue from the carbon tax increases.
  • Lower-income British Columbians will receive an annual payment of $100 per adult and $30 per child — paid quarterly along with the federal Goods and Services Tax Credit – in addition to the one-time Climate Acton Dividend payment.
  • Two-thirds of all new spending over the next three years will be committed to healthcare. Nearly three billion additional dollars will be put into health budgets.

Keeping B.C. Competitive

  • Corporate tax rates will be reduced to 10 per cent and small business taxes to 2.5% by 2011.
  • Geoscience BC will receive $12 million to encourage mineral exploration develop mineral exploration in areas affected by the Mountain Pine Beetle infestation.
  • $40 million has been invested in encouraging business and cultural links with Asia to further reinforce B.C.’s position as the Pacific Gateway.

Click to visit the Balanced Budget 2008 website.

Friday, February 22

Minister of Finance Carole Taylor will be a guest on Red FM Radio from 10:30-11:00am to discuss Balanced Budget 2008.

Attorney General Wally Oppal will be a guest on CBC Almanac with Mark Forsythe from 12:30-1:00pm to discuss property crimes.

Minister of Transportation Kevin Falcon will be a guest on CTV News at 6:00pm to discuss taxis in metro Vancouver.

Saturday, February 23

Minister of Finance Carole Taylor will be a guest on Fairchild Radio from 11:00-12:00pm to discuss Balanced Budget 2008.

Quotes This Week

“[Eliminating the corporate capital tax] will make B.C. banks among the most competitive in North America, and if you want to be a gateway province, that's important.”
Garth Frizzell, Prince George Chamber of Commerce. Prince George Citizen. Prince George Citizen, Feb. 20th, 2008.

“Putting a price on carbon is probably the single most important thing a government can do right now.”
Jeff Rubin, Chief Economist, CIBC World Markets. Vancouver Sun, Feb. 21st, 2008.

“From a perspective of North America, this is leadership. From a perspective in Canada, it's so far above anything else that's happening, it's mindboggling.”
Dr. Andrew Weaver, University of Victoria Professor and Nobel Prize winner. Canadian Press, Feb. 20th, 2008.

“We congratulate British Columbia on taking this visionary step [by pricing carbon]. This marks a real turning point for British Columbia and puts the province at the forefront of North American action on climate change.”
Ian Bruce, Climate Change Specialist, David Suzuki Foundation. DSF news release, Feb. 19th, 2008.


Did You Know?

  • Once the tax cuts in Balanced Budget 2008 are implemented, British Columbia's combined corporate tax rate - the federal plus provincial - will be 25 per cent, the lowest among the world's major industrialized economies and 10 points lower than the U.S. federal rate.
  • By 2009, British Columbians will pay the lowest personal income tax in all of Canada for individuals earning up to $111,000.

     

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