tag:blogger.com,1999:blog-1400574.post3307230697644694870..comments2024-03-28T04:04:03.006-07:00Comments on Paying attention: The six things you need to know about this budgetUnknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1400574.post-27621705354084250462009-09-03T09:33:59.788-07:002009-09-03T09:33:59.788-07:00You know the shift we've seen since 2001 from ...You know the shift we've seen since 2001 from income taxes and corporate taxes to taxes based on consumer spending and commodity revenues raises some questions about fiscal stability, especially in light of what we're seeing in the US.<br /><br />In Florida, where they don't have any state income tax, government revenues based mainly on property and sales taxes were fine as long as people kept pouring into the state and spending billions setting up new homes. But the economy has now crashed spectacularly, with population outflows for the first time in almost a century threatening a deepening downward spiral. As worried residents reign in spending and property values dive, state govt revenues have crashed even more spectacularly. <br /><br />BC has some similarities in that a significant portion of our economic growth and provincial revenue base is based on consumer spending derived from population inflows. We also rely heavily on revenues from resource extraction, just like Alberta, which makes our economy therefore especially vulnerable to global boom/bust cycles.<br /><br />If our provincial tax base increasingly relies on consumer spending and resource revenues (vs. income taxes), wouldn't this make the provincial government more vulnerable than ever to even bigger cyclical budget surpluses and deficits?<br /><br />It also makes government more vulnerable on the spending side of the budget. The biggest ticket item in the current budget is the $14 billion in "corporate welfare" to keep the construction industry going through the downturn. Not to mention all the money propping up forestry etc.<br /><br />Can British Columbians afford to increasingly cover these enormous costs via consumer spending alone? Surely the industries themselves need to adopt some fiscal discipline by investing a greater share of their profits during the boom cycles so that we're not raiding health and education to prop them up during the downturns?Dawn Steelenoreply@blogger.comtag:blogger.com,1999:blog-1400574.post-33523083835719338482009-09-02T12:51:11.655-07:002009-09-02T12:51:11.655-07:00Anon:
I'd forgotten that I had written about r...Anon:<br />I'd forgotten that I had written about raising the MSP. I just used it as an example of a way to increase revenue to cover health costs. <br />From a policy point of view, raising the same money through the income tax system would be fairer.<br />But practically, the Liberals weren't going to do that. The MSP premiums, along with the increased exemptions for low-income British Columbians, are a reasonable alternative.paulhttps://www.blogger.com/profile/11003637352818760817noreply@blogger.comtag:blogger.com,1999:blog-1400574.post-55100984091920958222009-09-02T11:38:51.141-07:002009-09-02T11:38:51.141-07:00If you are a parent, don't count on all day ki...If you are a parent, don't count on all day kindergarten in 2010. BC Liberals pulled the $110 million fund for building maintenance and upgrades so districts are unable to keep up with day to day needs. Without added funding, there will be no added programs.<br /><br />This is one of those political footballs that will get booted down the field year after year. Like the national daycare program that has been pending for decades now.Norm Farrellhttps://www.blogger.com/profile/06762889793990336381noreply@blogger.comtag:blogger.com,1999:blog-1400574.post-1318908187249227002009-09-01T22:22:18.100-07:002009-09-01T22:22:18.100-07:00As it was you Paul who first raised the topic of i...As it was you Paul who first raised the topic of increasing MSP fees in a former article you did here I was convinced by you that this was a good thing to do. Do you still support the raised MSP ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1400574.post-87420239227925090672009-09-01T20:19:35.713-07:002009-09-01T20:19:35.713-07:00So, with the level of contingency now deemed fisca...So, with the level of contingency now deemed fiscally prudent, the pre-election deficit should actually have been pegged at something like $1.2 billion - even if there was no reason to revise the revenue projections?<br /><br />I know it achieves no good to keep on about these things, but it does reassure me that I'm not the one who's nuts.Dawn Steelenoreply@blogger.comtag:blogger.com,1999:blog-1400574.post-89495875879520749552009-09-01T18:42:22.149-07:002009-09-01T18:42:22.149-07:00Dawn:
There is a forecast allowance, but much sma...Dawn: <br />There is a forecast allowance, but much smaller than in the past - $250 million. There is also a $500 million contingency allowance.<br />Colin Hansen was asked why a forecast allowance now and not in the February budget, but didn't answer.<br />It's a reasonable allowance, I'd say. Some of the earlier huge cushions seemed designed to ensure a big surplus at year-end.paulhttps://www.blogger.com/profile/11003637352818760817noreply@blogger.comtag:blogger.com,1999:blog-1400574.post-50353542988923449312009-09-01T18:29:22.798-07:002009-09-01T18:29:22.798-07:00I'd assume that given all the heightened uncer...I'd assume that given all the heightened uncertainty, the size of the contingency cushion is up significantly from that of previous years? <br /><br />(Unlike the recent pre-election Fudge-Budget, for example, which claimed a $500 million deficit via the simple ruse of eliminating the hefty contingency allowance at the very time that uncertainty about budget costs and revenues was greater than ever.)Dawn Steelenoreply@blogger.comtag:blogger.com,1999:blog-1400574.post-71001153158975324402009-09-01T17:10:59.727-07:002009-09-01T17:10:59.727-07:00CBC has Bob Plecas on: 'Whoever wins the first...CBC has Bob Plecas on: 'Whoever wins the first 24 hours (after budget is tabled), wins the spin.'Anonymousnoreply@blogger.com