If elected, the NDP will raise corporate taxes to 12% and extend the carbon tax to cover more emissions, the party announced in a press conference this morning.
Finance critic Bruce Ralston said the corporate tax increase would come into effect in 2014. In their budget released in February, the BC Liberals introduced a 1% increase of the corporate tax, from 10% to 11%, also to come into effect in 2014.
The NDP also plans to reinstate a corporate capital tax on financial institutions. The rate would be 3% for banks and 1% for financial institutions with head offices in B.C., including credit unions.
Ralston said the tax rate for small business would remain unchanged.
The party also wants to raise income tax for earners who make over $150,000. While the Liberals introduced an increase from 14.7% to 16.8% in income tax for those who earn over $150,000, the NDP plans to raise the rate to 19%. The change would be permanent.
Ralston said the NDP would not increase the carbon tax, but would extend the kinds of emissions the tax would apply to. The new rules would not apply to cement, agriculture or aluminum manufacturers. It would affect industries that vent emissions as part of their production process, as the natural gas industry does.
“We intend to work with the industry on how this might best be implemented,” said Ralston, adding that the change would not come into effect until 2015.
Ralston said the NDP’s budget would not add to the existing provincial deficit.
The B.C. election campaign officially starts next Tuesday. On Sunday, Premier Christy Clark will present her platform in a television address.
