BC to change tax thresholds to address the cost of living
BC’s wealthiest to get a tax hike
Steve Randall
Canadian Real Estate Wealth
The wealthiest people living in British Columbia will pay additional income tax as part of the province’s new budget.
The government wants to address the high cost of living – especially in Vancouver – and has announced that the top 1% of earners, earning more than $220,000, will pay a 20.5% provincial income tax rate instead of the current 16.8%.
“It’s my job to make sure that the benefits of B.C.’s strong economy are felt by everyone, not just the few at the top,” British Columbia Finance Minister Carole James said in Victoria. “Today we’re asking the people at the top, the highest 1% of individual income earners, to pay a little more.”
One of the key issues that the province is trying to address is the high cost of housing and measures in recent years have included taxes on foreign buyers and the Empty Homes Tax.
As well as the focus on the cost of living, the government is also keen to ensure that BC’s infrastructure is fit for the challenges of the future.
“British Columbians are working hard to build a better future for their family, and so are we. By building the infrastructure our growing province needs, we’re making life easier for people and creating good jobs and opportunities in local communities,” James said.
Education and children
The budget also includes a new grant to help British Columbians of all backgrounds to get a college education or training to meet employment needs of the next decade.
There is also the new BC Child Opportunity Benefit, launching in October 2020, which will provide 290,000 families with more money to support their kids and could save a two-child family as much as $28,000 each year.
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