B.C. Liberals offer to cut HST rate

Finance Minister Kevin Falcon explains the impact of scrapping the HST to reporters in Victoria Wednesday.

Finance Minister Kevin Falcon explains the impact of scrapping the HST to reporters in Victoria Wednesday.

VICTORIA – The B.C. government is promising to cut the harmonized sales tax rate by two percentage points over the next three years, and issue $175 rebate cheques for each child and lower-income senior this year.

The program is aimed at persuading voters to keep the HST in a mail-in referendum that begins in June. If the HST survives, the first one per cent rate cut would take effect July 1, 2012 and businesses would start paying more tax.

Finance Minister Kevin Falcon said the changes mean the average B.C. family will see an overall tax reduction of $120 a year when the HST rate reaches 10 per cent.

The HST currently costs the statistically average household an additional $350 a year, although there are wide variations for actual families. Falcon acknowledged that some families would continue to pay more until 2014.

If a majority of voters opt to keep the HST, current low-income rebates would continue to be paid, and $175 transition cheques would go to parents for each child under 18, and to some seniors as well.

Single seniors earning up to $40,000 a year would get the entire $175, and a partial payment would got those with incomes up to $43,500. Senior couples would receive $175 for combined income up to $40,000 and a partial payment up to a $50,000 combined income.

Falcon said with the rebate cheques taken into account, the majority of families are better off with an 11 per cent HST rate. Once the rate falls to 10 per cent, all income brackets are better off than they were under the old provincial sales tax at seven per cent, he said.

To keep the government’s deficit reduction plan on track, Falcon is proposing to raise the general corporate income tax rate two points to 12 per cent, and delay a small business tax cut scheduled for next year. The small business income tax is currently at 2.5 per cent, scheduled to drop to zero in 2012.

The proposed corporate tax increase mirrors one of the promises made by NDP leader Adrian Dix in his leadership campaign. Dix said Wednesday the public will still reject the HST because the B.C. Liberals can’t be trusted to tell the truth.

Premier Christy Clark said the increase to corporate taxes and retaining small business income tax would be temporary moves, and the government will return to its business tax reduction program when the budget is balanced.

With the HST rate reduction, tobacco taxes would be raised to offset the reductions to HST. Liquor taxes would also be unaffected.

Just Posted

This bird’s eye view shows the tanker truck fire on Highway 24. (Photo taken by Kurtis Rainer)
UPDATE: Highway 24 open to single-lane traffic after fuel tanker fire

Driver pulled into the runaway lane after the truck wheels caught fire

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

(TNRD Library)
Let the mystery of the Summer Reading Club begin

Are you ready to ‘Crack the Case’ at the Barriere Library?

(Metro Creative photo)
Gardeners of all ages invited to enter 2021 NT Fall Fair contests

The North Thompson Fall Fair Drive Thru scheduled for Saturday, Sept. 4,… Continue reading

Milsom Lodge was built in the East Barriere Valley when the Milsom brothers purchased two parcels of land in 1911, DL 2323 and DL2324. (Milsom’s photo)
The Milsom Lodge: The mansion, the ballroom, the history

“At the turn of the century, when so many families were leaving… Continue reading

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read