PHILIPPINE ASIAN NEWS TODAY September 16 - 30, 2018
B.C. households struggling with increasing debt
VANCOUVER, British Columbia
-- According to the BC Check-Up, an
annual economic report released by the
Chartered Professional Accountants
of British Columbia (CPABC), the
quality of life in B.C. continues to be
affected by high housing costs.
In 2017, households that
earned around the median pre-tax
income in Greater Vancouver put 80.6
per cent of their earnings towards the
cost of owning a home, according
to the RBC Housing Affordability
Index. This was a 2.3 percentage
point increase over the previous year.
For those in Victoria, the situation is
slightly better, but households earning
around the median pre-tax income
still spent close to 60 per cent of their
earnings on their homes. With such
high costs, owning a home in Greater
Vancouver or Victoria was challenging
and difficult for many, especially
young families.
“Although housing prices have
gone down so far in 2018 relative
to the records we’ve seen in 2017,
housing affordability continues to
be an issue for British Columbians,”
said Lori Mathison, FCPA, FCGA,
LLB, president and CEO of CPABC.
“With the average worker earning just
over $55,000 a year, it is difficult for
individuals to both be homeowners
and maintain a decent lifestyle while
carrying overwhelming debt.”
B.C. has the highest consumer
debt in the country. Low interest rates
and rising housing prices over the
past several years have encouraged
homebuyers to borrow more money.
In fact, consumer debt per capita
in B.C. reached $67,294 in 2017,
according to the BC Check-Up report.
This was an increase of 7.1 per cent
from 2016, the biggest annual jump
since 2009; and it was largely fueled by
the housing market and rising interest
rates. As a result, British Columbians
are particularly vulnerable to sudden
changes in their income.
“Despite signs of a cooler
housing market, mortgage debt
will likely remain a prime concern
for British Columbians. Mortgages
account for over three-quarters of
consumer debt in the province.
Should interest rates continue to
go up or should our economy see a
drastic reversal of its recent fortunes,
it could possibly lead to an increase in
the number of defaults and consumer
insolvencies,” said Mathison.
Learn more about the BC
Check-Up at www.bccheckup.com.
Fraser Institute News Release: B.C. government tax changes
will cost average family nearly $1,000 per year
VANCOUVER,
British $1,000 a year in higher taxes—that’s
Columbia, Sept. 19, 2018 (GLOBE a significant amount of money,” said
NEWSWIRE) -- The average family Niels Veldhuis, president of the Fraser
in British Columbia will pay $969 Institute and co-author of Impact of
more a year in taxes due to the B.C. Provincial Tax Changes on British
government’s tax changes, finds Columbian Families.
a new study released today by the
The study finds that the totality
Fraser Institute, an independent, non- of the government’s tax increases—
partisan Canadian public policy think- assuming the carbon tax increase
tank.
and new payroll health tax are fully
“While the government claims implemented—will add $1.9 billion to
it is making life more affordable for the tax burden of British Columbians.
Joel_AsianNewsToday_print.pdf
1 the
2017-10-05
B.C. families,
its tax changes mean
Using 3:46
the PM Fraser Institute’s Canadian
average family in B.C. will pay nearly Tax Simulator, the tax bill for the
average B.C. family—with an income
of $114,809 in 2018—will increase by
$929 a year, driven largely by a $498
increase in fuel and carbon taxes and
$360 in payroll and health taxes.
Crucially, the analysis does not
include several residential property
tax increases, such as the increased
property transfer taxes, the foreign
buyers tax, the speculation tax and
the school tax, which together total
more than $500 million in increased
taxes.
Of course, some families with
average incomes will be affected
by these tax increases, including
situations where they experience
substantial appreciation in the value
of their homes, or where property
tax hikes result in higher rental prices
for renters, in an already tight rental
market.
“The evidence is clear—even
excluding the increased residential
property taxes, the average B.C.
family is facing a significant tax hike
as a result of this government’s tax
changes,” Veldhuis said.
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