BC batch 2005/06 On February 15,20...

BC batch 2005/06

On February 15,2005, representatives of the ICABC attended the 2005 stock Lock-up. Our delegation included ICABC President Barb Carle-Thiesson, FCA, First Vice-President Amed Naqvi, FCA, and CEO Richard Ree FCA.

On behalf of this dispose I'd like to thank those of you who took the time to answer our pre-budget scrutinize We used these results to guide our following media commenrary, which focused onward debt reduction and promoting fiscal responsibility.

Survey terminates indicated that members believe liability management/reduction should be the top priority for guidance followed by business tax reductions, personal tax reductions for low-income British Columbians, and increased spending in fundamental note areas. Not surprisingly, 99.1% of you said along-term shortcoming management plan is needed. And 938% said the small business tax commencement should be increased to $400000

This pre-election store (and second consecutive balanced budget) brought a little something for everyone and highlighted the increased flexibility available to the management after having made tough fiscal decisions (reducing taxes, balancing the lot and reducing red tape) earlier in its mandate. With the set now in surplus, the dominion is reducing debt, increasing spending in fundamental note areas, and reducing taxes for small businesses and lower income British Columbians. We are now seeing the rewards of an improved investment climate in the province, which, in employ will provide the financial capacity to supply the programs British Columbians ne and want.

Movement onward several fronts

In our October 2004 stock submission, the ICABC asked the management to consider six issues: sin management, contingency planning, competitive business tax rates, sales tax harmonization, enhancing productivity, and creating an emphasis forward post-secondary education. With the release of the 2005 bag we were pleased to view movement on most of these issues.

Increasing the small-business threshold

We also commended that the government raise the small-business beginning from $300,000 to $400,000, and the collection reflected this change, thereby putting BC in line with other jurisdictions, including Alberta, Manitoba, fresh Brunswick, and Ontario.

Today, 98% of all BC businesses are small businesses. They account for approximately 917000 do job-works or 58% of all private-sector employment

"Small business is the engine that drives the BC economy," said Ree "and reducing their tax cargo will help small businesses remain competitive in the same manner they can grow and create jobs"

Debt reduction

The ICABC has been advocating for the disclosure of a long-term debt-management plan for a number of years. The 2005/06 package contains one of the strongest debt-reduction mandates to date, with a record $17 billion in trespass reduction. With this reduction, it's forecasted that taxpayer-supported shortcoming as a percentage of GDP will decline from one side of to the other the next three years.

While we were happy to view such a strong move toward fault reduction, we were disappointed to learn that there is still no long-term debit management plan-particularly this year, after the rare Standing Committee on Finance and regulation Services echoed our recommendation to disentangle such a plan. We will continue to advocate for the same in future years.

Personal tax reductions

The 2005/06 fiscal estimate focuses personal tax reductions forward lower-income British Columbians, combining tax and MSP premium reductions. These tax chops result from the creation of a strange non-refundable personal income tax credit called the BC Tax Reduction, which will cut down or eliminate provincial income taxes for about 730000 British Columbians. For instance, chiefly individuals earning up to $16000 a year will no longer pay any provincial income tax. In addition, a $4000 increase in the entrance to qualify for the MSP Premium Assistance Program will restore or eliminate MSP premiums for approximately 215000 people

The total price for these tax reductions is estimated at $480 million throughout three years.

A special thank-you

Special thanks are reach outed to Odd Eidsvik, FCA; Jim Mills, FCA; and Cindy Popescul CA, for providing regional roll commentary and follow-up to their fall set presentations to the Select Standing Committee forward Finance and Government Services.

For more specifics about the easy in minds of the 2005/06 BC governmental estimate visit www.bcbudget. gov.bc.ca/.

Other highlights:

Tax reductions

* Changes to the First-Time Homebuyer Program, which will relieve first-time buyers from the goods transfer tax on eligible residential properties.

* A 10-year extension of the Mining Exploration Tax Credit.

Program spending

* $65 billion throughout the next three years to increase ministry funding for health care, communities, children, education, public safety, economic exhibition and the environment, with 71% of the recently made known funding directed to health care and education.

* $101 million to address the economic impacts of the mountain pine beetle infestation and forest fires.

* $194 million to assist ones with disabilities.