Fiscal & Tax Policy
As a small, open trading region, BC depends on investment and trade to support ongoing economic development and public services. A competitive tax regime and balanced government finances are key advantages in attracting investments to BC. The Council plays an important role in analyzing BC’s fiscal policies relative to other jurisdictions and advocating for reforms that boost our competitiveness.
2012 Federal Budget: Fiscal Restraint with New Policy Directions
Reflecting the precarious nature of the economic recovery, Finance Minister Jim Flaherty delivered a budget with few new tax measures, a moderate amount of spending restraint, and a plan to return to fiscal balance over the medium term. From our perspective it is a prudent budget that trims spending sufficiently to balance the books by mid-decade, while not tapping on the fiscal brakes too hard. While the federal workforce will be reduced, overall the level of restraint is such that critics will be hard pressed to claim that it will undermine the economic recovery.
Presentation: KPMG 2012 Budget Breakfast
Presentation on the current economic landcape and key budget themes presented at the KPMG 2012 Federal Budget Breakfastby Jock Finlayson, Executive Vice President and Chief Policy Officer, Business Council of British Columbia
2012 BC Budget: Fiscal Caution Amid Economic Turbulence
Against an unsettled external economic backdrop, this week’s provincial budget saw Finance Minister Kevin Falcon reaffirm the government’s commitment to balance the operating budget by fiscal 2013-2014. Meeting this objective – which is mandated by current law – will require downshifting spending growth to about half the pace set during the years preceding the 2008-09 recession. While it featured a few new measures, the dominant theme of Budget 2012 is spending discipline while seeking to maintain core government services. To help address funding pressures across the provincial public sector, resources continue to be reallocated to higher priority areas such as health and education, and efforts to find efficiencies within existing budgets are accelerated.
Slow But Gradually Improving Growth In Store For BC
BC Economic Review and Outlook Feb 2012
BC’s economic growth in 2011 was modest and uneven. The first half of the year was particularly weak, as global equity markets underwent a steep sell-off, the American economy stumbled, the earthquake and tsunami sent Japan into a temporary recession, and financial stresses in the Eurozone escalated. Towards the end of the year, economic conditions in the US improved and, judging by job growth and a handful of other indicators, BC’s economy also appeared to pick up. This helped the province’s real gross domestic product (GDP) to expand by an estimated 2.0% in 2011. BC’s performance was reasonable compared to many other advanced economies, and was in the middle of the provincial growth rankings within Canada.
A Snapshot of Incomes in British Columbia
Policy Perspectives v18 n5
While economists often seem preoccupied with somewhat abstract indicators like gross domestic product, productivity and current account balances, arguably the economic variable of most interest to people is income. As defined by Statistics Canada (and similar agencies in other countries), income has two key components: 1) the “market incomes” received by individuals and households from employment, savings, investments, occupational pensions, rents, and entrepreneurial activity; and 2) “government transfers” such as social assistance, pensions, unemployment insurance, and the GST tax credit, which are remitted directly to households by the state.
Submission: Select Standing Committee on Finance and Government Services
The Business Council of British Columbia submits preliminary advice on the 2012 provincial budget to the legislature's Select Standing Committee on Finance and Government Services.
The Harmonized Sales Tax -- Through an Economic Prism
This issue of Policy Perspectives is guest authored by Jon Kesselman of Simon Fraser University. Recognized as one of Canada's leading public finance and tax policy experts, Dr. Kesselman outlines the economic benefits of the Harmonized Sales Tax which the BC government plans to introduce later this year. The Business Council is grateful to Dr. Kesselman for contributing this timely article.
Corporate Income Tax: Getting the Economics Right
The past decade has seen a remarkable transformation in Canada’s business tax landscape. Starting in the late 1990s, both the federal and most provincial governments began to reduce corporate income taxes – the taxes levied on business income or profits. At the national level, the general federal corporate income tax (CIT) rate stood at 28% in 1999; today it is 18%, and the current government intends to bring it to 15% by 2012. Moreover, in recent years Ottawa has eliminated the income surtaxes and capital taxes that it previously imposed on large and medium-sized businesses.
The Rise of Asia: Opportunities and Challenges for British Columbia
Authored by Rosalie L. Tung, Ph.D., FRSC, Faculty of Business, Simon Fraser Univeristy