Recently, Green party MLA Andrew Weaver asked that the Liberal government abolish the regressive tax known as MSP premiums and was told that, although he had some good ideas this one would not be acted on.
This same call has been made by the B.C. chapter of the Taxpayers’ Federation repeatedly as well, and has been likewise ignored.
This form of taxation has been erased in every other jurisdiction in the country and the required funding provided by revenue generated in other ways, mostly income taxes, which ensures that the burden is carried more by those that can afford it.
Under the current model, a person (or family) earning less than the full-time equivalent of $10.50 per hour ($22,000 per year) is exempt from paying these premiums as is the case with our MLAs at $100,000 ($190,000 in the case of our premier) with a sliding scale of assistance until the lofty income level of $14.50 per hour ($30,000) is reached, where the full brunt of the cost is expected to be borne in full.
A single person at $30,000 per year pays approximately $900 in provincial tax and $864 in MSP premiums. A family of two at this level would pay a bit less tax but $1,566 a year in MSP premiums. Needless to say, if this ration were to be extended to the upper income brackets there would be a great wailing and gnashing of teeth at the prospect of seeing their provincial taxes double or triple.
I urge this government to abolish this regressive tax and follow the lead of the rest of the country. Part of any funding shortfall can be mitigated by dismantling the bureaucracy that administers the program at a cost I have heard estimated at 20 per cent (or more). Further funds could be generated by judicious trimming of the middle and upper levels of the provincial bureaucracy as it currently exits, as well as the upper echelons of our crown corporations.
This should pose no problem as this government has previously shown no compunction at rewriting or even tearing up contracts. Our tax dollars are meant to provide services, not multiple (and redundant) levels of supervision at exorbitant costs.
Bob Ardies
Penticton