Last week the new government introduced its long awaited provincial budget.
It was the first opportunity for the NDP to demonstrate what their government stands for and what kind of future British Columbians should expect.
While there is significant spending on housing and childcare, the government had to scale back many of the promises it made during the election.
$10-dollar-a-day daycare has been dismissed as a “slogan” and while low income earners may be the ones who benefit most, middle class parents will see little or no benefit.
The government is also distancing itself from the promise of a $400 annual rebate for renters, and the promise to build 114,000 social housing units over ten years has been scaled back to 34,000.
The biggest surprise hit the business community like a bombshell.
Without any prior consultation or warning, Finance Minister Carole James announced a brand new payroll tax to replace MSP premiums which are due to be phased out in 2020.
The original plan to eliminate MSP premiums was announced by the former B.C. Liberal government in the 2017 provincial budget.
The first stage was supposed to represent a $1 billion tax cut for individuals – including companies that pay MSP on behalf of their employees — but the new government has decided it wants all that money back.
So in effect, the NDP plans to shift the cost of health care onto the private sector through its new Employer Health Tax.
As you can imagine, the business community is reeling from the unwelcome news.
To make matters worse, the government will experience a $1.8 billion windfall when the new payroll tax kicks in 2019 and overlaps with MSP premiums that won’t be eliminated until 2020.
This represents a double-dip tax grab that many family businesses will find hard to swallow.
Donna Barnett is the MLA for the Cariboo Chilcotin Region. She is a member of the BC Liberal Party.