Philippine Asian News Today Vol 19 No 4 | Page 4

11955 88th Avenue , Delta , BC • 604 501 0963 • www . lamezagrill . com • lamezagrill BC Liberals cut MSP premiums in half
HEADLINE
PHILIPPINE ASIAN NEWS TODAY February 16 - 28 , 2017
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604 501 0963

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Finance Minister Mike de Jong announced that MSP premiums will be cut in half for households earning less than $ 120,000 a year , but not until January 2018 .
What ’ s more , the province is promising to phase the program out completely in the long term , but there were no details on how or when this will be done .
“ The government has laid out what ’ s affordable at this time , and in the years to come if we can do better , we will do more ,” says Minister Mike de Jong .
The government estimates the change will affect about two million people , saving the average person about $ 450 per year . The cut-off for who is exempt from MSP premiums has also been raised to people earning $ 26,000 per year , or families earning $ 35,000 .
The Canadian Taxpayers ’ Federation Spokesperson Jordan Bateman says this is the largest tax cut in B . C . since 2007 and is happy about the announcement .
“ For 15 years , all we ’ ve seen is increase after increase after increase on MSP tax . Now they ’ ve cut it back in half . It ’ s a great first step and I ’ m hopeful that they ’ ll keep their word and eliminate it altogether .”
Bateman adds that the cost of living is what needs to be discussed . “ Hydro , ICBC , property

11955 88th Avenue , Delta , BC • 604 501 0963 • www . lamezagrill . com • lamezagrill BC Liberals cut MSP premiums in half

taxes CPP , EI , they ’ ve all gone up . At least the government is recognizing that and wants to fight it on a tax-cut turf .”
The province is also raising the threshold for property transfer tax exemptions for firsttime homebuyers , with homes worth $ 500,000 or less to be tax-free . This is good news for young families who want to become homeowners . Businesses will see some tax breaks too , with the small business corporate tax rate dropping to two per cent from 2.5 per cent , and PST being phased out on electricity by 2019 .
The MSP cut comes from a 2016 / 2017 surplus of about $ 1.5-billion , lower than the previously anticipated $ 2.2-billion , because of substantial provincial spending in the last quarter .
The MSP move is expected to cost the province about $ 950 million , and comes after widespread speculation about how the government would give back its surplus – many arguing the province might shave a point off of the PST or alter other rates or fees .
NDP leader John Horgan has also previously said that he may be willing to foray into deficit territory .
“ I think the fixation on balanced budgets might well be misplaced in 2017 . And we have to look not just at the bottom line fiscally , but what are the social consequences of that balanced budget .”
The province has also faced mounting criticism over ICBC rates , which have climbed by nearly 30 per cent since 2012 – including December ’ s 4.9 per cent bump . Back in November , an ICBC report warned without action to reduce costs , but still raised the premium .
BC Hydro customers haven ’ t been spared either , with the introduction in 2013 of a 10-year rate plan which slated increases of nearly 26 per cent over the first five years . Under the plan , this year ’ s hike was raised to four per cent , with caps of 3.5 per cent and three per cent for the following two years .
BC Hydro has said the hikes are necessary to accommodate a population expected to grow by one million in the next two decades .
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