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Parties offer clear choice on direct stimulus spending in B.C. election

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Sonia Fursteanu (Green), John Horgan (NDP) and Andrew Wilkinson (Liberal) squared off in televised debate on Oct. 13, 2020. (via Glacier Media/Submitted)

The competing parties in B.C.’s 2020 election offer voters contrasting choices as to whether the government should give money back to British Columbians during the pandemic – and if so, how much.

One issue voters will decide is the preferred strategy for a revitalized economy, and sufficient economic stimulus to help most people survive the uncertain times.

The choices are a consumption-tax cut, an income-tax cut for middle-class and low-income earners or no major tax break and more spending in specific areas.

The BC Liberal Party has gone big on a consumption-tax cut. The party plans to eliminate the seven per cent PST in 2021 on a wide range of consumer products, with notable exemptions being cannabis products and luxury cars.

The tax cut would also eliminate for one year the eight per cent PST that is levied on hotel rooms and the 10 per cent PST on alcoholic drinks.

The 20 per cent PST on vaping products – whether for tobacco or cannabis – would remain.

Items that are part of the tax cut would carry a three per cent PST in 2022.

All this comes with an estimated price tag of more than $10 billion, although the Liberals say the economic stimulus may generate more income tax revenue if the tax cut saves or creates jobs. 

The BC New Democratic Party’s (NDP) main plan to put money in residents’ pockets is what the party had been calling a “recovery benefit,” though Premier John Horgan in the October 13 debate called it a “COVID benefit.”

The $1.4 billion plan entails providing a one-time $1,000 benefit to families that have a household income that is less than $125,000. A sliding scale would then provide progressively lower benefits to families that have incomes that range up to $175,000.

Individuals who earn less than $62,000 would be eligible to receive $500, with progressively lower amounts given to those who earn less than $87,000.

Details of how the money would flow to people, such as whether the province would be in contact with the Canada Revenue Agency to determine eligibility, have yet to be revealed. 

The NDP is also promising to provide a $400 benefit for renters who earn less than $80,000 per year, which the party has said would cost $1.35 billion annually.

BC Green Party leader Sonia Furstenau, in contrast to the two main party leaders, told Glacier Media that she does not believe that providing funding directly to residents is the best course of action. 

“The problem with just a broad tax cut, or a one-time cash payment, is that you can’t really identify what outcomes you want to get from that,” Furstenau said after the leaders’ debate. 

“If you invest those [dollars] in plans and programs, like the $1 billion innovation fund for small businesses or the grants to tourism operators that will allow those families and their employees to make it through this winter or investing in early childhood education, because we know that that is an investment that has enormous economic dividends for all of society, then we can measure. Are these investments getting us the outcomes that we want?”