And why should this matter to taxpayers? Because the higher the rating, the less the cost of borrowing by the provincial government which saves taxpayers millions of dollars.
Only three provinces have this high a rating - BC, Alberta and Saskatchewan.
The common denominator? They are in the West and they do not have NDP governments. Saskatchewan like BC is governed by a conservative/liberal coalition party (the Saskatchewan Party) and Alberta is under the Progressive Conservatives.
Standard and Poor's Rating Services has cemented British Columbia's triple A credit rating, following similar credit-and-bond ratings from Dominion Bond Rating and Moody's.
S&P says it has reaffirmed the highest possible rating, citing strong budgetary flexibility and a fiscal plan designed to bring the province's operating budget back to balance.
B.C., Alberta and Saskatchewan are the only provinces with the triple-A stable rating.
S&P says it could revise its outlook to negative or lower the rating if tax-supported debt as a share of operating revenues continue to rise.
Finance Minister Mike de Jong says three top-level ratings coming so soon after Budget 2013 are proof his government's goal of balancing the budget has been well received and the fiscal plan is on course.
The triple-A rating saves taxpayers millions of dollars annually in borrowing costs.http://www.vancouver...l#ixzz2QMbx7B4K
The danger of electing the Dix led BC NDP is that by raising taxes as announced and altering the fiscal plan, there is a significant danger that the rating could be downgraded and that means the cost of borrowing goes up and costs taxpayers millions - way more than any perceived tax savings by reverting to the PST from the HST.
And if you raise corporate taxes and reinstae the disastrous tax on financial institutions, you drive business and investment from BC leading to a compounding downward spiral as we saw the last time the BC NDP were in power.
Memo to Adrian Dix - capital is portable and investment will go where it is welcomed.
As the Tax and Spend Party (aka the BC NDP) have confirmed:
The New Democratic Party will fund its spending promises for the May 14 election with measures including higher taxes on businesses and the wealthy, reintroducing a tax on banks and credit unions, and expanding the province’s carbon tax.
The proposals will go toward generating an extra $2 billion over three years, said Bruce Ralston, the party’s long-standing finance critic and co-chair of its platform committee.
Those measures include: increasing the corporate income tax rate to 12 per cent from 11 per cent; reinstating a corporation capital tax on financial institutions; and increasing personal income taxes to 19 per cent for those making more than $150,000 a year.
Finance Minister Mike de Jong called the NDP’s overall plan bad for the province, saying it would send negative signals to the investment community.
“This is a bad choice, the kind we have seen in the past from the NDP,” he said.
“The tax increases in a variety of areas will ensure we go back to the days when investment fled or avoided British Columbia and when people fled or avoided British Columbia.”
De Jong said the plan would push up the province’s debt-to-GDP ratio, sparking a downgrade in the province’s credit rating.
“B.C.’s credit rating will be downgraded,” he said. “That is a certainty.”
Conservative Party leader John Cummins said the NDP is “living in a fantasy world, where tax increases on the very businesses that provide jobs to British Columbians somehow helps the economy.
“As if this job-killing tax increase on job-providers isn’t enough, the NDP also plans to raise income tax and expand the carbon tax, both of which will negatively impact jobs and the economy,” Cummins said in a news release.
If you liked the Glen Clark led BC NDP you will love the Adrian Dix led BC NDP - just the same old discredited tax and spend polices that drove investment and people out of BC the last time the BC NDP were in power.
Edited by Wetcoaster, 13 April 2013 - 10:15 AM.