Taxpayers Federation gives BC throne speech a 'failing grade' for not addressing affordability
'Around the world, 51 national governments have cut taxes to help people afford the basics, but the Eby government refuses to follow suit and provide relief,' says CTF BC Director Carson Binda. 'The premiers of Alberta, Ontario and Newfoundland and Labrador have all cut fuel taxes — why does Eby refuse to do the same?'
The Canadian Taxpayers Federation (CTF) disapproved of British Columbia's throne speech last week, giving it a failing grade because it did not address adequate tax relief nor present a plan to pay down the province's ballooning debt.
On Monday, the CTF attended the throne speech at the Victoria legislature given by Lieutenant Governor Janet Austin.
"This throne speech offered no signs of relief for tapped-out taxpayers," said Carson Binda, the BC Director for the CTF. "Taxpayers need a break, not higher taxes and more spending."
Binda stated that B.C. Premier David Eby has done the opposite needed to address affordability.
"Eby is increasing gasoline, diesel, home heating, used cars and home taxes ... [when] families are paying record-breaking prices for fuel and groceries."
According to a taxpayer group release, "BC families [must] decide how to put food on their tables or pay to enroll their kids in after-school activities."
Last autumn witnessed record-breaking demand for food banks, as one-in-five Canadians reported skipping meals because of high food prices. The fuel price also shattered records in B.C., making everything more expensive.
According to Canada's Food Price Report 2023, Canadians expect a 5-7% increase in food prices this year, following a 9.2% increase last year for B.C. The average family of four will spend up to $16,288.41 per year on food, an increase of up to $1,065.60 from 2022.
The Taxpayers Federation also notes that the average family in the Lower Mainland will pay around $10,000 in gas taxes at the pumps.
"Taxes on natural gas will cost the average family $212 to heat their homes this winter," said Binda in a December release.
"Everyday working British Columbians cannot afford to pay the tax burden levied against them by the politicians in Victoria. Eby could start delivering relief by axing the second carbon tax."
Unlike other provinces, B.C. has two carbon taxes.
The first carbon tax adds 11 cents per litre to the cost of gasoline and 13 cents per litre of diesel — it will more than triple over the next eight years. The second carbon tax is a B.C. government fuel regulation that costs gasoline and diesel even more.
The BC Director articulated that axing the second provincial gas tax would save drivers 17 cents a litre of gasoline or approximately $13 every time they fill up a minivan.
"Scrapping the second carbon tax would save about 19 cents a litre of diesel, shaving $172 off the cost of filling up a big rig truck that delivers all of our groceries and supplies."
Since assuming office in November, the Eby-led NDP government received an opposition private members' bill on suspending fuel taxes to provide inflation relief, but failed to pass it.
On November 23, the BC Liberals introduced legislation to provide people with relief from rising fuel prices. Bill M 217, the Miscellaneous Statutes (Gas Price Relief) Amendment Act, 2022, would temporarily suspend provincial gas taxes and the hidden taxes on gas imported from Alberta.
"Around the world, 51 national governments have cut taxes to help people afford the basics, but the Eby government refuses to follow suit and provide relief," Binda added. "The premiers of Alberta, Ontario and Newfoundland and Labrador have all cut fuel taxes — why does Eby refuse to do the same?"
"If he's serious about affordability and showing results, he needs to put his money where his mouth is," Binda has said previously.
The Taxpayers Federation also criticized the NDP government for not mentioning plans to pay down the debt.
According to CTF estimates, the provincial debt is almost $100 billion, meaning that every British Columbian owes about $18,600. That debt grows every day because of accumulated interest.
"At the same time, the Eby government has announced a $5.7 billion budgetary surplus, up $4.4 billion from previous projections," added Binda. "There is ample money in the budget to cut taxes, which is only helping to fuel the inflation fire."
He called the absence of a debt payment plan "a slap in the face" to families struggling with affordability.
According to the CTF, this fiscal year's interest on the provincial debt cost taxpayers $3 billion, which is more than the entire endowment for the University of British Columbia.
The Fraser Institute unveiled that the province will pay $7.4 billion in accumulated debt interest for the combined provincial-federal debt — equivalent to its annual expenditures on social services.
"Eby must cut taxes and pay the provincial debt to save families money. The current government is mortgaging away our families' futures by ignoring the massive debt they've wracked up," added Binda.
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