BC United pledges $5.6B tax cut in bid to shake up election race

BC United unveiled its biggest policy proposal yet on Tuesday, as the party looks to shake up the B.C. provincial election race.

Party Leader Kevin Falcon pledged, if elected, to eliminate provincial income tax on the first $50,000 residents earn.

Falcon dubbed the plan the “largest middle-class tax cut in B.C.’s history,” adding it would “result in the complete elimination of provincial income tax for 60 per cent of taxpayers.”

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The basic personal exemption for provincial income tax currently sits at just under $12,000, and Falcon said raising it would result in up to $2,050 in tax savings for someone earning the new $50,000 threshold or over.

A minimum wage earner would save $1,134 per year, Falcon said.

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The tax cut would cost $5.4 billion annually.

Falcon claimed a BC United government could pay for the cut and balance the provincial budget in its first term without cuts to services.

“No, services do not have to be cut,” he said.

“This is one of the great myths of the left. The NDP will tell you that all of their spending is actually really important good spending. Well, I would argue they’ve got it wrong.”

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Falcon did not offer specific details on how his party would cover the costs, but suggested a BC United government would reduce costs on capital projects, and focus on “outcomes” rather than “spending.”

He added the revenue impacts would also be offset by increases in private investment and personal spending.

Falcon’s political rivals were quick to attack the proposal.

The BC NDP said the move would echo the BC Liberals’ tax cuts of 2001, which they said resulted in MSP payments, bridge tolls and higher ICBC premiums.

“The way he will propose to do it is the same as he did before. Look over here and I’ll cut your taxes and here I’ll increase tolls and fees,” Premier David Eby said.

The BC Green Party called the proposal “reckless,” arguing the tax cut combined with BC United’s pledge to balance the budget would result in $12.4 billion in cuts.

“BC United’s plan will not help our province thrive, it will only gut our budget when our healthcare system is already in crisis,” Green leader Sonia Furstenau wrote in a statement.

‘The business community knows that without a healthy workforce and reliable government services, the economy can’t succeed.”

Falcon’s plan comes just two months before British Columbians go to the ballot box, with polls showing BC United in third place.