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

WEATHER: Mainly cloudy with a chance of showers

Temperatures to reach a high of 11 C

Intergenerational Garden in Maple Ridge open for another year

All food will be donated to the Friends In Need Food Bank

Front line workers in Maple Ridge and Pitt Meadows calling out for supplies

Doctors and specialists say they are in desperate need

South Surrey hikers discover decades-old campsite hidden in Golden Ears Park

Group reconnects with original campers through social media, returns log book

CHEF DEZ ON COOKING: Perfecting gravy for Easter dinner

The size of the party may be small, but the meal can still be scrumptious

‘The Office’ star John Krasinski offers Some Good News in trying times

‘The human spirit still found a way to break through and blow us all away’

Canada to spend $2B more on procuring medical supplies for COVID-19 fight

Government has signed deals with three companies

World COVID-19 updates: Putin may be exposed; 30,000 prisoners released

Comprehensive news update from around the world as of Tuesday, March 31.

Canada expands 75% wage subsidy to COVID-19 affected businesses of all sizes: Trudeau

Program will provide up to $847 per week for each worker

‘This is no joke’: B.C. woman in Alberta hospital asks people to stay home during COVID-19

‘I want people to start listening to what the doctors are saying. This is no joke, please stay home’

Rest stops barring washroom access to truckers a ‘huge problem’ as COVID-19 spreads

Teamsters Canada says truckers are increasingly being denied warm meals

Canadians asked to wash mailboxes, keep dogs at bay, to ensure safe mail delivery

Four postal workers in Canada have tested positive for COVID-19 infection:

Hospitality workers hit ‘first and hit hardest,’ says union seeking more support

Union represents workers in hotels, casinos, airports, arenas, universities, schools and remote resource camps

Most Read