Presentation to Select Standing Committee on Finance and Government Services The Vancouver Board of

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Presentation to Select Standing Committee on
Finance and Government ServicesThe Vancouver
Board of TradeSeptember 21, 2007
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RECOMMENDATIONS
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• Limit spending increases to combined rates of
  population growth and inflation.
• Implement health care reforms to improve
  productivity and limit need for significant
  increases in health care spending in near term.
• Support governments practice of applying budget
  surpluses towards taxpayer-supported debt
  reduction.
• Continue to reduce per capita debt.
• Accomplish this while providing for key
  infrastructure and other priority capital
  investments

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RECOMMENDATIONS(continued)
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• Narrow the gap in the general corporate income
  tax rate versus Alberta.
• Reduce the small business income tax rate from
  4.5 per cent to 3.0 per cent.
• Narrow the personal income tax rate gap with
  Alberta for the higher income brackets.
• Eliminate the capital tax for financial
  institutions.

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Prudent Budgeting
(Billions)
Expenditures
Revenues
Actual2001/02
Actual2002/03
Actual2003/04
Actual2004/05
Actual 2005/06
Actual 2006/07
Forecast 2007/08

Surplus (Deficit)
(2.7)
(2.7)
(1.2)
2.5
3.0
4.1
2.1

Before Forecast Allowance
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B.C. Government SpendingOn Health Care and
EducationAnnually
51.8 Increase (2001 to 2008)
Millions of Dollars
36.2 Increase (2001 to 2008)
Fiscal Year 2008 forecast
Fiscal Year Ending in
Sources Budget and Fiscal Plans, First Quarterly
Report B.C. Ministry of Finance
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Taxpayer Supported Debtas Per Cent of GDP
6
Per Cent
7
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Tax CompetitivenessPersonal Income Tax
Rates(Per Cent)
1
The base rate depends on the applicable Ontario
surtaxes.
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Tax Competitiveness Corporate Income Tax Rates
(Per Cent)
9
Aviation Fuel Tax
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Economic Vision
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• Characterized by focused spending, prudent debt
  management and greater tax competitiveness.
• Resulting in
• Increasing real GDP per capita
• Increasing real disposable income
• Rising employment rate
• Rising productivity
• Growing private sector investment