VANCOUVER — The New Democratic Party on Thursday laid out a menu of tax increases and spending changes it will use to generate the the money it needs to start rolling out platform promises when the campaign officially begins next week.
“We think this plan is achievable, it’s realistic and it doesn’t set false expectations about expenditure reduction that couldn’t be achieved without dramatic cuts in public services,” said Bruce Ralston, the party’s long-standing finance critic and co-chairperson of its platform committee.
In total, the announcements made Thursday would generate an extra $2 billion over three years that the New Democrats say they will use to fund new programs.
Ralston detailed a host of tax increases the party has long telegraphed, such as a one-percentage point increase on corporate taxes, a corporate capital tax on financial institutions and an increase on personal income taxes for those making more than $150,000.
Taken as a whole, these three measures would bring in an extra $1.4 billion over three years.
“We’re asking those who have a little more to give a little more,” he said, referring to the tax increases.
But Ralston also said the party is planning changes to the province’s carbon tax.
He said an NDP government would expand the carbon tax to cover emissions from the oil and gas sector, which are not currently covered by the climate levy.
Ralston said this would not be an increase to the rate people are already paying on gas and other products, but instead it would broaden the list of what the tax covers.
He also revealed an NDP government would abandon the B.C. Liberal commitment to make the carbon tax revenue neutral.
“We are leaving open the possibility that in future negotiations with the regions or municipalities — but particularly regional governments — there might be an opportunity to use revenue for other initiatives such as transportation or other green initiatives that would reduce emissions,” he said.
Ralston did not explain how this change would take place, or what tax rebates may be sacrificed.
The New Democrats also announced they will cancel some programs planned by the B.C. Liberal government to make room for their own.
Among them are a program to invest $1,200 in Registered Education Savings Plans for children born after Jan. 1, 2007.
“We believe that money could be better used to in fact support people now who are going into post-secondary education rather than 20 years from now,” said Carole James, the other co-chairperson of the party’s platform committee.
The party would also scrap an early childhood tax benefit announced in the February budget that would give families up to $660 each year for each child under the age of six starting in 2015.
It would also do away with a $76-million increase to spending on early childhood education and child care services, also unveiled in the February budget.
James said her party will replace these measures with programs that will better address the issues of child care and inequality.
The B.C. election campaign officially begins on Tuesday.
