MSP and inequality rise

January 25, 2012

Another year and another increase to our medical service plan (MSP) premiums - this is the third year in a row that we have seen an increase. A family of three now pays $128, 80 per cent more than in 2001; which is the same regardless of household income. Combine that with the 3.9 per cent increase that B.C. Hydro is looking to add to energy costs, roughly $30 a month that will soon be added to ICBC rates, and another increase to the carbon tax, and you can see that the B.C. Liberal government is changing the way our public services are funded. The B.C. Liberal government has spent its time in power shifting the provincial revenues from personal and commercial income taxes to a much more regressive form of taxation. This form of taxation is creating more inequality in the province.  According to a Canadian Center for Policy Alternatives’s study, B.C. received 39 per cent of provincial revenue from personal income tax in 2000, that number is now 28 per cent. The money has been made back through regressive taxes such as the carbon tax and increases to MSP premiums. The province currently gets more money from MSP premiums than it does from corporate income tax. This shift to consumption taxes and fees increases the tax burden on lower income families. We pay income tax based on how much we earn, so those of us who can afford to pay more, do just that. As we rely less on income tax and more on fees, we are removing fairness from the equation.  Whether someone makes $31,000 a year or $300,000, they pay the same for MSP, hydro, and ferry rates. For lower income earners this has a greater impact on their budget. From Hydro and MSP to ferry rates and Post-Secondary, the B.C. Liberal Government must stop using the middle class as an ATM.  They need to keep the concerns of families in mind, limit the increases placed on them, and move towards a fairer tax system and in turn, a more equal province.

 

We must act on child poverty

Child poverty in B.C. continues to be one of the most pressing social issues facing our province. The Child Poverty report card for 2011 released by First Call shows that for the eighth year in a row we have one of the highest rates of child poverty in Canada. 16.4 per cent of our children live in poverty. That is 137,000 kids. Further, we know that poor children mean poor families. This consistently high poverty rate is due to a decade of inaction by a government that today talks about families first. First Call’s report shows how dismal B.C.’s record is on this critical issue. One of the most telling statistics in their report is the impact of government action on poverty. While all provinces and the federal government invest in poverty reduction through a variety of programs including income assistance, rent supplements and child tax benefits, B.C. has the worst record of any government in this area. Based on Statistics Canada data B.C. reduced our effective poverty rate from 24.9 to 16.4 per cent, a drop of 8.4 per cent. The national average reduction was 11.6 per cent while in Ontario it was down 11.5 per cent and Alberta 9.8 per cent. Every other province did better than B.C. I believe that what underlies this problem is the lack of a meaningful poverty reduction strategy in B.C.  A strategy that has clear targets and timelines and reports annually on its progress so all British Columbians can see how we are doing. Poverty reduction is not simple, and will be challenging in financial terms. Further, even with a plan mistakes will be made. However, we know that 7 other provinces of all political stripes have put plans in place and are working seriously on this issue. I believe those efforts have real value and we need to move forward on them here in British Columbia. Sadly, the B.C. Liberal government has steadfastly refused to put a thoughtful plan in place that includes targets and timelines. Opposition leader Adrian Dix has made equality the cornerstone of his vision for British Columbia. We know that making progress in this area will require real advancement on child poverty. We took the first steps on that as an opposition caucus when I introduced the Poverty Reduction Act into the legislature last year. We have continued to work on this with organizations and experts to better understand how we need to move forward after the next election. Having said that, we know we cannot wait and will continue our calls for Premier Clark to truly put families first by adopting an effective poverty reduction strategy.

A big thank you to everyone!

This holiday season we saw an outpouring of generosity in our community. While we all want to eliminate the need for food banks, they are sadly here for now. Friends and neighbours came together and made our office food drive a huge success. We had enough donations to fill nine boxes for the food bank, and I know the generosity didn’t end there. I saw many other food drives in the neighborhood and spoke with many residents and business owners who were contributing to holiday hampers. Goodwill is what the holiday season is truly about. Thank you again to everyone who lent a helping hand this year.

 

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Wednesday, January 25

MSP and inequality rise

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