BC residents to pay more for health care, insurance, power

[oneh2obabe]

James Keller
The Canadian Press

VANCOUVER - British Columbia residents will pay more in the coming year for health care, electricity, car insurance and gasoline.

Critics say the increases don't always make sense, particularly when they hit lower-income residents at the same rates as richer citizens, while the provincial government maintains British Columbians pay some of the lowest taxes in Canada.

The first provincial increase comes into effect on Jan. 1, when health-care premiums rise by six per cent, or $84 a year for families of two or more.

It's the third year in a row that fees have increased, bringing the total premium for families to $128 per month. The family health-care premium was $108 per month for most of the 2000s until increases began in 2010.

A month later, the Crown-owned Insurance Corp. of B.C., which has a monopoly on auto insurance in the province, will increase its rates.

In February, basic premiums will jump by $68 a year — 11.2 per cent — for the average customer, but when combined with cuts to optional rates, ICBC says the average customer will be out an extra $27.

BC Hydro is set to increase its rates by 3.9 per cent as of April 1, which the Crown corporation says will cause the average residential power bill to increase by about $36 a year. That's about half what BC Hydro had proposed earlier this year until the provincial government ordered the corporation to come up with a smaller increase.

In July, the province's carbon tax will increase to $30 per tonne. The tax on gasoline will hit 6.67 cents per litre, up from the current tax of 5.56 cents.

Drivers in the Vancouver area will pay even more after local mayors voted to impose a two-cent gas tax beginning this spring to pay for a rapid transit line that will link Vancouver with Coquitlam and Port Moody.

Jordan Bateman of the Canadian Taxpayers Federation said the series of increases may be more than some families can handle, particularly when combined with increases to federal employment insurance and Canadian Pension Plan premiums. Those together will take about $142 from workers' paycheques.

He noted municipal property taxes will also likely rise for many residents this summer.

"It's almost death by a thousand cuts right now," Bateman, who lives in B.C., said in an interview.

"In isolation, these fees might seem reasonable, but the problem is that it's one on top of the other."

Bateman said the federal, provincial and municipal governments should be working together to ensure the taxes and fees imposed on residents are fair.

He said he's not opposed to the idea of taxes, but he said they need to be fair and the money collected should be spent responsibly.

"I don't think anyone feels really confident that governments at any level are managing our dollars efficiently and effectively, certainly not like we would manage our own wallets."

B.C.'s finance minister, Kevin Falcon, issued a statement specifically addressing health-care premiums.

Falcon defended the pending increase, insisting the Liberal government needs the money to cover rising health costs and noting premiums remained static for seven years before the first hike in 2010.

He also noted that low-income British Columbians will be eligible for assistance that will bring their rates below what they were before the increases began. Nearly one million residents receive some level of assistance or don't pay premiums at all.

"B.C. families generally have one of the lowest overall tax burdens in Canada, including income taxes, consumption taxes, property taxes, health care premiums and payroll taxes," said Falcon.

Opposition NDP finance critic Bruce Ralston said the health-care premiums are problematic because all residents who don't receive assistance pay the same regardless of their income.

That means a family earning more than $30,000, which is the cutoff for assistance, pays the same health-care fees as a family earning $100,000.

"The approach that the Liberals have taken is basically to increase user fees on the broad middle class," said Ralston.

"There's no recognition of paying more as your income goes up, so you pay more as a proportion of your income in the middle class as you would in the top end."

Helmut Pastrick, chief economist with Central 1 Credit Union, said taxes and fees in B.C. appear to be increasing faster than incomes, but he said it's a complicated balancing act between keeping taxes low and ensuring government services are properly funded.

"Individually, those increases are certainly above the rate of inflation — average incomes probably won't be rising by six per cent," Pastrick said in an interview.

"They reduce disposable income, so that could present some drag on other spending. However, services are provided for that money and those services have a value. In the total budget of a household, MSP (health premiums) going up, carbon tax going up — how much is that going to account for?"

[Smurf]

It's going to get expensive and I'm sure some are going to come on here immediatelly and say something like, "aren't you glad you voted down the HST" or "aren't you NDP lackies glad now you voted down the HST" or something similar. In the meantime forgetting that the ever increasing carbon tax, the Hydro contracts for the next decades were signed long before the HST ever came in. They wil also forget that the government had already raided ICBC for all it's profits and put them into general funds making it necessary for them to raise their rates. They will claim that the HST would have made up for all the shortages but I'll bet those things would still have happened and the government would just have continue on the uncontrolled spending program and cutting taxes for big business on the shoulders of the general tax payer.

[Captain Awesome]

Our media is slowly turning into a very talented troll.

[Smurf]

My wife collects trolls.

[Homeownertoo]

Aren't you NDP lackies glad now you voted down the HST.

[rutland1]

Im 100% sure rates would have went up even if HST was voted in.

[Urbane]

Aren't you NDP lackies glad now you voted down the HST.

They haven't connected the dots. They want services maintained or increased and they want someone else to pay for those services. They've been tricked into thinking that somehow increasing corporate tax rates will pay for anything and everything. Sad.

[Logitack]

They haven't connected the dots.

i agree, liberal dimwit sheeple havent figured out, yet, that msp, insurance and power were ALL going up regardless of the HST....smh

[flamingfingers]

They haven't connected the dots.

i agree, liberal dimwit sheeple havent figured out, yet, that msp, insurance and power were ALL going up regardless of the HST....smh

Chrispy and Falcon were counting on the HST, PLUS all the increases to let them 'balance' the budget in 2013-14. So we would then have the HST, insurance, power, MSP increases and fewer services. The Liberal clapping seals can't figure this one out while busy clapping their hands and nodding their heads while pulling their forelocks! Oh, and bending over again....

[NAB]

...we've still got the BC version of HST too, and will have for some time to come, at least until long after the next election I suspect. Meanwhile, BC consumers will keep cutting their borrowing and spending, and government revenues will keep dropping and their expenditures keep rising.

Nab

[steven lloyd]

Aren't you NDP lackies glad now you voted down the HST.

They haven't connected the dots.

Like the Liberal lapdogs ever figured out the consequences of Campbell's ill-advised and reckless tax cuts.

What's the difference ? Oh yeah – ideological preference.

Yes, we have to be responsible with government spending (and likewise with cuts to some government spending as it has become all too obvious). We also need to maintain government revenue through, yes ... taxation – whether consumption tax or income tax or, preferably, a balanced combination of both.

Yes - in my humble opinion it was irresponsible to vote to extinguish the HST. However, it was just as irresponsible to cut income tax in the manner that Campbell did and the consequences (increased deficit and debt, decimated critical services, sell off of public assets, etc.) of his recklessness bear that out. I have no problem paying more for health care. Hell, are you kidding me? We could be living in the States and not have any access to it. Just my opinion though.

[NAB]

Hmmm, I see reference to increased taxes there steven, but not a word I can see about reducing specific expenditures as well, which is what IMO it is going to take to make any real inroads as to what ails us..

Nab

[steven lloyd]

Hmmm, I see reference to increased taxes there steven, but not a word I can see about reducing expenditures as well, ...

Yes, we have to be responsible with government spending ....

I do agree with reducing and even cutting frivolous government expenditure and have stated that many times. I don’t agree with making cuts to critical services without any attempt at first understanding consequences – such as unnecessary increased costs that could result - as we've seen.

[wthwyt]

Hmmm, I see reference to increased taxes there steven, but not a word I can see about reducing expenditures as well, which is waht IMO it is going to take to make any real inroads as to what ails us..

Nab

Lower expenditures by sending Seniors to Alberta for their health needs. just kidding.

[grammafreddy]

Hmmm, I see reference to increased taxes there steven, but not a word I can see about reducing expenditures as well, which is waht IMO it is going to take to make any real inroads as to what ails us..

Nab

Yes, we have to be responsible with government spending (and likewise with cuts to some government spending as it has become all too obvious).

I think it was in there.