B.C. Finance Minister Carole James presents her 2020 budget at the Victoria Conference Centre, Feb. 18, 2020. (Tom Fletcher/Black Press)

Budget 2020: B.C. NDP taps top tax bracket for more revenue

Minimum wage set to pass $15 an hour by 2021

The B.C. NDP government is adding another high-income tax measure this year, a new top marginal rate of 20.5 per cent.

Finance Minister Carole James announced the new bracket in her third B.C. budget Tuesday, noting that it will only apply to B.C. tax filers with incomes above $220,000. More than half of the revenue from the new top bracket is expected to come from individuals with incomes above $1 million, and B.C.’s income tax rate will still be third lowest among Canadian provinces for individuals earning up to $475,000, James said.

in her first full budget in 2018, James restored a top tax bracket that had been put in place by the previous B.C. Liberal government for two years. She reimposed a two-per-cent increase that applies to income of more than $150,000 a year.

The latest increases push total income tax for high-income earners close to 50 per cent, combining federal and provincial income tax rates. As of 2019, B.C.’s top combined federal and provincial personal income tax rate is 49.8 per cent, applying to income of $150,000 and up. That’s about 13 per cent higher than the rate in Washington and Alaska, neither of which has a state income tax.

“B.C.’s tax regime is simply uncompetitive with not only neighbouring U.S. states, but several Canadian provinces,” said Ben Eisen, a senior fellow at the Fraser Institute who produced a study called Assessing British Columbia’s Tax Competitiveness in 2019.

RELATED: B.C.’s top income tax bracket close to 50%

RELATED: Small firms face employer health tax in 2020

At the other end of the income scale, the B.C. NDP’s program goal of a $15-an-hour minimum wage will be reached this year, as first promised by Premier John Horgan when he was opposition leader in 2016. The NDP government committed to a series of increases that will bring the basic wage to above $15 by 2021, affecting 140,000 people in B.C., James told the legislature in her budget speech.

Former B.C. Green Party leader Andrew Weaver objected to the 2021 deadline for reaching $15 when it was announced, calling for a “Fair Wage Commission” to determine the rate rather than arbitrarily meeting a deadline that the B.C. Federation of Labour considered too slow. The commission was agreed to as part of the minority government support deal with the Greens, but result has ended up the same.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

B.C. Budget 2020BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Canadian police to make home visits to enforce mandatory quarantine for travellers

Police forces have been asked to help verify Canadians are complying with the Quarantine Act

Kimberley Rotarians will deliver groceries from Save On Foods

Kimberley Rotarians have volunteered to deliver groceries from Kimberley Save On Foods… Continue reading

Search and Rescue see 50 per cent call reduction, hope for further decrease

The BC Search and Rescue Association (BCSARA) extended their gratitude to the… Continue reading

Bylaw officer commends Kimberley on proper physical distancing

The City’s Emergency Operations Centre offered their kudos to the people of… Continue reading

City suspends backyard fires until further notice

Coinciding with a provincial open fire ban across the region, the City… Continue reading

VIDEO: Easter festivities may be scaled back, but it can still be a fun holiday

COVID-19 circumstances have dictated that the holidays may not be perfect

B.C. jails grant early release for close to 100 inmates due to COVID-19

The move, which impacts offenders serving intermittent sentences, is to prevent spread of virus

COVID-19 world update: U.S. to start antibody tests; drones enforce lockdown in Italy

Comprehensive update of coronavirus news from around the world

Lower Mainland hunting store sees 200% increase in firearm sales

Co-owner of Wanstalls says increase due to a variety of reasons

People needing addiction services feeling ‘abandoned’ during pandemic

The province is trying to increase access to addiction care through a phone line of experts, doctors

COVID-19: B.C. ER nurse self-isolates in travel trailer, apart from family

Marcia Kent says situation is difficult but worth it to keep twin boys safe

B.C. unveils $5M for mental health supports during the COVID-19 pandemic

Will include virtual clinics and resources for British Columbians, including front-line workers

B.C.’s COVID-19 rent supplement starts taking applications

$300 to $500 to landlords for April, May and June if eligible

Reality TV show about bodybuilders still filming in Okanagan, amid COVID-19

Five bodybuilders from across the country flew to Kelowna to move into a house for a reality TV show

Most Read