Province to slash, then eliminate MSP premiums

By

VICTORIA – British Columbia’s government is taking its re-election on a broad range of tax cuts and spending increases on education and child-welfare programs in a 2017-18 budget that projects a fifth consecutive surplus.

Tax cuts being brought in by Finance Minister Mike de Jong include a promise to eliminate unpopular medical service premiums, starting with a 50 per cent cut next year that will see a family paying the full premium saving up to $900 a year.

A release from the province says:

“Beginning January 1st, 2018, MSP premiums will be reduced by 50 per cent for households with an annual net income of up to $120,000.

Following this change, more than two million British Columbians will pay no premiums and a further two million will see a 50 per cent reduction in their premiums, cutting premiums near to levels set in 1993.

A typical family of four paying full premiums will save $900 per year in 2018. A single parent with net income up to $40,000 and two children will see their monthly premiums drop from $46 to $23. A family with net income less than $35,000 and two children will see their monthly premiums eliminated.”

The 2017-18 budget also cuts the small business income tax rate to two per cent from 2.5 per cent, and will eliminate the provincial sales tax on electricity for business by 2019-20.

The $50.2-billion budget forecasts a surplus of $295 million, down from the $1.5-billion surplus forecast for the current fiscal year ending March 31.

Some notable spending increases include an additional $287 million over three years for the Ministry of Children and Family Development, including $120 million to address recommendations in a report on indigenous child welfare, after the death of children in government care.

The government is setting aside an additional $740 million over three years for education, which includes $320 million to cover the costs of ongoing negotiations with the teachers’ union after the province lost a Supreme Court of Canada decision on class size related to special-needs children.

“The Education budget will increase by $740 million over three years, including $228 million more to fund enrolment growth in BC schools, funding for rural education enhancement, student transportation, K-12 salary costs, continued funding for the Learning Improvement Fund, and an incremental $320 million over three years while government works to conclude a final agreement with the BC Teachers’ Federation on class size and composition.

Budget 2017 is also funding $2 billion in school capital projects over three years – to build, replace, renovate, seismically upgrade and repair schools throughout the province.”

The province’s Liberal government has been in power since 2001 and the next election will be held May 9th.

Top Stories

Top Stories

Most Watched Today