British Columbia Chamber of Commerce

Legislative Watch

The B.C. government offered up personal and business tax cuts and higher MSP premiums in the September Budget Update:

Challenged Economy - The B.C. economy is expected to contract by 2.9 per cent in 2009 and then grow by 1.9 per cent in 2010. The government is expecting to lose $2 billion in revenues in the current fiscal year.
Record Deficit - A decline in resource revenues and income taxes will lead to four years of budget deficits, returning to balanced budgets in the fifth year. The Budget Update calls for deficits in the range of $2.8 billion in 2009/10, $1.7 billion in 2010/11, $945 million in 2011/12, and $140 million in 2012/13.
Competitive Taxes - The government still found room to cut personal and businesses taxes. The personal income tax exemption was raised from $9,373 to $11,000. The small business tax threshold was increased to $500,000 from $400,000 effective January 1, 2010. In addition, the government recommitted to dropping the small business income tax rate to zero by April 1, 2012. B.C.’s general corporate income tax rate will fall to 10 per cent in 2011. The B.C. government also intends to introduce a 12% harmonized sales tax (HST) on July 1, 2010 that is expected to eliminate $2 billion a year in costs to B.C. businesses. Read more

Business leaders comment at Budget Lockup, September 1, 2009:

“The budget creates a very solid foundation for growth. The B.C. government has made the right decisions to ensure that we can continue to create jobs and business can continue to invest.”
- John Winter, BC Chamber of Commerce

"Consumer confidence is the fuel that drives retail and this budget today should boost consumer confidence, so Retail B.C. gives it a thumbs up."
- Mark Startup, Retail BC

"The increased spending on infrastructure is very prudent by the government. They are going to get tremendous value for their construction dollars."
- Philip Hochstein, Independent Contractors and Businesses’ Association.