B.C. Election: David Eby pitches new tax hikes for highest earners

British Columbians earning more than $190,405 per year will have to pay more income tax if the B.C. NDP is re-elected.

On Sunday, during a campaign stop in Comox, B.C. NDP Leader David Eby said his government would also create a new tax bracket for people earning $1 million or more.

“Over 96 per cent of residents, individuals who make $190,000 or less, will see no tax increase,” Eby said.

According to the latest government records, Eby and his wife earn around $525,000 a year combined.

“The highest earners will pay slightly more through a two-point increase on the top two tax brackets and a new bracket for income over a million dollars,” Eby said.

Currently, the top two income tax brackets in B.C. are $190,405 to $265,545 and over $265,545. Earners pay 20.5 per cent in provincial tax on every dollar over $265,545. They pay 16.5 per cent on earnings between $190,405 to $265,545.

Eby’s proposal would see that top rate increase to 22.5 per cent, and 18.5 per cent for the second highest bracket. The new bracket would see the earner paying 24.5 per cent on every dollar earned over $1 million.

High earners also pay 33 per cent in federal income tax on every dollar earned over $258,482. So a British Columbian would pay taxes on 57.5 per cent on every dollar earned over $1 million under Eby’s proposed regime.

Eby said the new taxes would generate an extra $1 billion a year and that money would go “to fund improvements in health care and to lower costs for British Columbians.”

In response, the Conservative party of B.C. said the proposed tax regime could impact the recruitment of doctors.

“Emergency rooms are still closing at night, and now (Eby) wants to tax the doctors and specialists every community is fighting to recruit,” the statement read.

“There is no problem the NDP don’t think can be fixed by raising your taxes. The Conservative Party of B.C. has committed to no new taxes, and a government led by Lorne Doerkson will make B.C. the place doctors choose to build their practice.”

Last Friday, Eby said his government would introduce a cap on how much large grocery chains can charge for milk, eggs, cheese, butter and chicken. It would also ban anti-competition measures that keep small grocery stores out of communities dominated by larger chains.

B.C. Green Leader Emily Lowan said her party would make an announcement on Monday.

“After years of freezing child care, cancelling affordable housing, and sending workers to the picket line, Premier Eby has suddenly discovered that the wealthiest should pitch in to fund the services we all need,” Lowan said in a statement.