The First BC NDP Budget in 16 Years - Surplus Budget, Debt Up $4.1 Billion

[DonLever]

From Global:

 

The books have been balanced. The debt has gone up. New programs are in place. So what does B.C. budget 2018 mean to you? These are 11 things that can be taken away from the first full B.C. NDP budget since 2001.

Speculation Tax

Starting this year, the provincial government will apply a 0.5 per cent speculation tax on homes owned by people who don’t pay taxes in British Columbia. The tax goes up to two per cent in 2019 and will stay at that rate going forward. It is expected to bring in $87 million this year.

Foreign Buyers Tax going up

Starting Wednesday, the foreign home buyers tax is going up from 15 per cent to 20 per cent. Not only will the tax be applied to homes in Metro Vancouver, but will now apply in the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.

WATCH: B.C. finance minister addresses affordable housing in budget speech

Story continues below

 

READ MORE: B.C. budget 2018: Government plans to add speculation tax, eliminate MSP

Property Transfer Tax up

The property transfer tax continues to be a cash cow for the province. The province is expected to collect $2.23 billion this year from the tax after bringing in $1.6 billion last year. The province is also increasing the tax on properties over $3 million from three per cent to five per cent.

Closing housing loopholes

The NDP was highly critical in opposition of the loopholes that were being exploited in the overheated housing market. Now in government, the NDP will try to close some of the loopholes by creating a database on pre-sale condo assignments, stopping numbered companies from owning homes and deal with mega-homes built on Agriculture Land Reserve Land.

Eliminating MSP by 2020

The province will start collecting an Employer Health Tax in 2019 to work towards getting rid of the Medical Service Plan premiums by 2020. Most businesses will be required to pay the new tax, with bigger companies paying more than smaller companies.

Affordable Child Care benefit

The province is providing support to parents who have their children in licensed child care facilities. A new credit will see up to $350 per month go directly into licensed child care that will see the savings passed onto parents.

 

Fair PharmaCare program

Health Minister Adrian Dix had previously announced B.C.’s Fair PharmaCare program to eliminate deductibles for families with annual incomes below $30,000. The funding for that program was unveiled in Tuesday’s budget.

Shelter aid for elderly renters

Low-income seniors are going to benefit from an increase to the Shelter Aid for Elderly Renters program and Rental Assistance Program. The province is pledging $116 million over three years to the benefit, while raising the ceiling to include those who have annual households incomes of $40,000, up from $35,000.

 

Fire recovery funding

After an historic fire season that cost the province $648 million to fight, the government is pitching in another $72 million for a fire recovery fund.

Indigenous Skills Training Program

The province is spending $201 million over three years for an Indigenous Skills Training Program and Aboriginal Friendship Centres. There will also be $50 million in 2017/18 to revitalize Indigenous languages.”

 

Luxury tax on cars

If you are in the market for a high-end car in B.C, get ready to pay a little more. The province is doubling the tax on the purchase of cars worth more than $150,000 to 20 per cent. The measure will bring in an estimated $10 million.

[SliteriousBlackbeard]

I hope the NDP fix some problems (Get rid of ICBC!!!) but keeping in mind they are taking away from great areas. Ultimately I can't wait for them to hit the road!

[kingofsurrey]

12 minutes ago, SliteriousBlackbeard said:

I hope the NDP fix some problems (Get rid of ICBC!!!) but keeping in mind they are taking away from great areas. Ultimately I can't wait for them to hit the road!

Not a fan of the NDP  but there is no  legitimate ethical / trustworthy / suitable party to replace them....

 

 

[DonaldBrashear]

Crash housing prices. Need to drop at least 75%.

[SliteriousBlackbeard]

1 minute ago, DonaldBrashear said:

Crash housing prices. Need to drop at least 75%.

Unfortunately if housing prices drop drastically interest rates will climb like in the 60’s and 80’s to 15-25%. Either way payments will be virtually the same, banks need there money! But I’m with you.

[DonLever]

Great news for people who have young children but not much for others.

 

Just like the Liberals, the NDP managed to get a surplus budget but the debt has gone up $4.1 Billion, the biggest increase in yearly debt since 2012.

 

From 1130 News:

 

Other budget bits

– Steep hike in taxes for tobacco and expensive vehicles as of April 1st. Vehicles worth more than $150,000 will be taxed at 20 per cent, while vehicles valued at between $125,000 and $150,000 will be taxed at 15 per cent.
– $50 million for the preservation and revitalization of Indigenous languages in the province.
– $450 million to a new student housing program that will allow public post-secondary institutions to borrow from government to finance student housing projects. Previously this was not allowed in BC.
– Capital spending totals $26.2 billion over three years for schools, hydro-electric projects, roads, bridges, hospitals, etc.
– Revenue from legalized marijuana expected to add $50 million per year.
– The carbon tax is increasing $5 per tonne per year, adding $212 million a year, as was announced last year.
– Total provincial debt is set to jump by $4.1 billion, the largest single-year jump since 2012/13.
– Increased hours of residential care for seniors and money to help residents find a family doctor.
– $72 million set aside for wildfire recovery and resiliency activities.
– $105 million over three years to cover the cost of prescription drugs for lower-income people.
– $18 million over three years to help woman and children who have been victims of domestic violence and sexual assault (councelling, outreach, crisis support).
– $6 million funding boost for Aboriginal Friendship Centres.

[goalie13]

1 hour ago, DonaldBrashear said:

Crash housing prices. Need to drop at least 75%.

That would be very, very bad.

 

Cooling the housing market is fine.  Bursting the bubble would be catastrophic.  Here's an example...  Joe Average bought an average house in Victoria 10 years ago for $450K.  It is currently valued at roughly $600K and he still owes $350K on it.  If the house prices dropped 75% it would only be worth $150K.  He might as well walk away from his house he has already invested $250K in (down payment + payments including interest) as he would owe $200K more than it is worth.  And there would be tens of thousands of working people in the exact same position.

[goalie13]

2 minutes ago, DonLever said:

Great news for people who have young children but not much for others.

 

Just like the Liberals, the NDP managed to get a surplus budget but the debt has gone up $4.1 Billion, the biggest increase in yearly debt since 2012.

I've never understood how that works.  More expenses than revenue.  Mathematically, is that not a deficit?

[DonaldBrashear]

6 minutes ago, goalie13 said:

That would be very, very bad.

 

Cooling the housing market is fine.  Bursting the bubble would be catastrophic.  Here's an example...  Joe Average bought an average house in Victoria 10 years ago for $450K.  It is currently valued at roughly $600K and he still owes $350K on it.  If the house prices dropped 75% it would only be worth $150K.  He might as well walk away from his house he has already invested $250K in (down payment + payments including interest) as he would owe $200K more than it is worth.  And there would be tens of thousands of working people in the exact same position.

I don't care about banks or people that paid too much for their home. That is their problem. We have seniors and poor people who can't afford rent. If people walked away from their homes it would be a federal problem (CMHC) so the federal government would chip in and help BC out.

[DonLever]

7 minutes ago, goalie13 said:

I've never understood how that works.  More expenses than revenue.  Mathematically, is that not a deficit?

The surplus is for the operational budget, ie. the year to year budget for running the government.  The Debt is long term debt.   Usually related to items like infrastructure..

 

[goalie13]

Just now, DonLever said:

The surplus is for the operational budget, ie. the year to year budget for running the government.  The Debt is long term debt.   Usually related to items like infracture.

It still feels like smoke and mirrors.  Look we had a surplus!  Don't look at the increased debt though.

[goalie13]

3 minutes ago, DonaldBrashear said:

I don't care about banks or people that paid too much for their home. That is their problem. We have seniors and poor people who can't afford rent. If people walked away from their homes it would be a federal problem (CMHC) so the federal government would chip in and help BC out.

So are you suggesting that nobody should have purchased a home in the past 10 or 15 years?  And if they did, too bad, it's their problem?

[DonLever]

1 minute ago, goalie13 said:

It still feels like smoke and mirrors.  Look we had a surplus!  Don't look at the increased debt though.

Exactly.  I was going to mention that.   The anti-Liberal people always scream and yell about that very point.   The BC Liberals had a balanced or surplus budget every year but managed to created massive Debt during their time in power.   Looks like the NDP are doing exactly the same thing.  

[The Arrogant Worms]

17 minutes ago, goalie13 said:

That would be very, very bad.

 

Cooling the housing market is fine.  Bursting the bubble would be catastrophic.  Here's an example...  Joe Average bought an average house in Victoria 10 years ago for $450K.  It is currently valued at roughly $600K and he still owes $350K on it.  If the house prices dropped 75% it would only be worth $150K.  He might as well walk away from his house he has already invested $250K in (down payment + payments including interest) as he would owe $200K more than it is worth.  And there would be tens of thousands of working people in the exact same position.

If Joe Average bought a house 10 years ago in Victoria for $450,000 it worth far more than $600,000 today.

[goalie13]

18 minutes ago, The Arrogant Worms said:

If Joe Average bought a house 10 years ago in Victoria for $450,000 it worth far more than $600,000 today.

I was basing that on a specific house I know.  The increase can vary from neighbourhood to neighbourhood.

 

But if you go off the VREB's numbers, from 2008 to today the average price for all of Victoria has gone up 47%.  So if you take the same scenario, Joe Average's house would be worth $661K today.  Apply Brashear's 75% drop to that, Joe's house is still only worth $166K.  He's still screwed.

[ArkDepot]

Since banking has been centralized globally, everyone is a debt slave.
Money is literally debt.
We exist in a trickle-UP economy.

Pierre Truedung sold us (as Canadians) down the river in 1973 when he allowed the Bank of Canada to be taken over by foreign interest (pun extremely intended)
We've been %$#!ed ever since.
There is no such thing as "surplus".
*Prosperity (and choice, with respect to "voting") are illusions used to keep the average person, of average intelligence (which is to say, most people), compartmentalized. 
To keep them too preoccupied to be bothered with reality.


 

think bigger
 

[DADDYROCK]

I see that the LIBERALS have the audacity to complain about everything that the NDP does,

It Is the LIBERALS that bankrupted ICBC and strangely enough not one person goes to jail after that robbery of public funds.

The corporations own the politicians and the media sadly enough,just look into Polly Lake spill or Site-C Dam for no responsibility for these corporations in BC AND CANADA.

It is so tough when the government spin doctors(companies that are paid to spin stories provincially and federally.) get to lie in the media and we can't do a damn thing about it.

These same companies work for most the parties so it doesn't really matter,but you never hear this stuff from corporate media. THIS IS NOT FAKE NEWS.

[DonaldBrashear]

2 hours ago, goalie13 said:

So are you suggesting that nobody should have purchased a home in the past 10 or 15 years?  And if they did, too bad, it's their problem?

No I'm saying anyone who buys a home at any time should do their due diligence and know that home prices can go up or down at any time. If house prices crash 75% no one is going to feel sorry for you, just like if you invested in WALMART stock and it crashed today no one feels sorry for you.

[Tortorella's Rant]

If they were serious about foreign buyers, they would ban them outright. But they're not - trying to play both sides. Another bandaid solution for those who live here, the illusion they are doing something positive, and a few extra bucks for rich Chinese and their Vancouver house they use three weeks a year.

[apollo]

At least they're doing some thing... but 0.5% speculation tax this year and only %2 in 2019................. good one. That'll stop them! People buying these could care less about 0.5% and then 2% 

 

Change is coming... but very slowly. Don't hold your breaths.