Loading
  • Linkedin
  • Twitter
  • Facebook
  • Youtube
Get in touch: 604.542.4298 | Toll Free: +1.877.542.4298
Connect Wealth
  • Home
  • About
    • Our Firm
    • Meet Our Team
  • Services
    • Personal Planning
    • Business Planning
  • Investments
  • Testimonials
  • Resources
  • News
  • Login
  • Contact us
  • Search
  • Menu
BC Budget 2018
Business Planning, Current Events

BC’s 2018 Budget: Does it Balance Opportunity?

 

BC’s 2018 budget was announced on February 20th. Its focus was to provide lower income households with tax relief. It provides some parents with reduced child care fees while also reassuring parents that spaces in child care and in schools would become more adequate.

There are numerous articles that focus on the many highlights (some are listed below) that will work to assist the many varied interests of middle and lower income households in BC. Less reported however is that in order to provide the tax relief outlined within the budget, the BC Government will undertake a record-breaking capital spend and increase overall taxes to the tune of $4.4 billion over three years.

As mentioned above highlights include the reduction of childcare fees with a goal of increasing the number of child care spaces by 22,000, as well as creating programming to support child care providers who want to become licensed.

Senior care will also receive a very welcome boost as the province announced $1.5 billion in health-care related spending. Further both the Peace Arch Hospital and the Royal Columbian were allocated funds for much needed upgrades and renewal projects.

The Canadian Bar Association was pleased to see that the BC Budget addressed some of the issues related to expediting justice and access to legal services for Indigenous peoples, and those living in rural and remote communities. Though they also stated that the money received was only about 25% of what is truly needed.

Schools also made the list, thankfully. Fifty new seismic projects were promised over the next 18 months with a goal of removing portables and reducing classroom sizes.

Notably missing was any commitment from the BC Government with respect to the redevelopment of St. Paul’s Hospital. Some of the transportation issues in the rapid growth areas of Surrey and White Rock were also left unaddressed, specifically the Surrey LRT and Massey Tunnel replacement. Finally, the budget didn’t provide further specific funding for the BC-born Digital Technology Supercluster that was announced by the Federal Government last week.

Which brings us to what concerns us the most about this budget… are we losing our competitive edge?

This budget appears to lack support for the entrepreneurial spirit, the mid-size family operations and large corporate leaders of today’s BC. These are the innovators, high-growth companies, and the large corporations like Boeing, Finning, Lululemon, Pattison, who employ a large percentage of BC’s workforce. Let’s review what’s in it for them:

A new employer-based payroll health tax will replace a portion of the revenue previously received from MSP. Corporations will pay 0% to 1.95% dependent on their overall salary obligations. While pushing the full burden of MSP to the employers, the government admits this new strategy will leave a large gap in revenue that used to be received from MSP, in 2018-2019, that gap will be as much as $2.1 billion.

Earlier this year the BC Government raised the top personal income tax rate from 14.7% to 16.8%. Combined with the new and higher top federal rate of 33%, in conjunction with stringent rules on income sprinkling, ensures that high-skilled workers in BC are now taxed at a marginal rate of 49.8%.

Entrepreneurs, executives, high-skilled workers, and high-net worth individuals who are looking to purchase a luxury vehicle because you still have too much money… look for the new luxury car tax (new or used), of 15% for vehicles worth $125,000 and 20% for vehicles worth $150,000 or more.

If this new luxury tax is the proverbial straw and you’re looking south to an ever-increasingly lucrative US market where taxes are decreased and trade issues loom, you should still be cautious because effective Feb. 21, 2018, there will be an increase on the property transfer tax from 3% to 5% on properties worth more than $3 million.

In addition, a new and additional school tax of 0.2% will apply to residential properties worth more than $3 million, including detached homes, strata condos or townhomes, and vacant property. Residential properties valued at more than $4 million will pay 0.4%.

Given the US tax reform, the upcoming Federal budget, and ongoing trade uncertainty, will this balance opportunity on both sides of the spectrum? Time will tell.

____________

Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize portfolio efficiencies while simplifying the process for clients.

February 22, 2018/by Vince Olfert
Tags: budget, financial planning, luxury tax, taxes, us tax reform
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Pinterest
  • Share on Linkedin
  • Share on Reddit
  • Share by Mail
https://www.connectwealth.ca/wp-content/uploads/2018/06/BC-Budget-2018-Image.jpg 364 490 Vince Olfert https://www.connectwealth.ca/wp-content/uploads/2020/01/ConnectWealth-logo-01.png Vince Olfert2018-02-22 10:21:392020-03-05 08:08:13BC's 2018 Budget: Does it Balance Opportunity?
You might also like
singerolfert-superheros Superhero or Superhuman?
downsize house To Downsize Or Not?
UK pension UK Pension - Left Behind...
mortgage-insurance Mortgage Insured? Are Your Sure?
mortgage or rrsp Mortgage or RRSP?
Insuring Your Kids - Easily Overlooked!

Pages

  • About
  • About the Examination
  • Andrew Gordon
  • Antares
  • Appointment Contact Form
  • Baxter’s Business Planning
  • BCV
  • Business Planning
  • Cassandra San
  • Cher Adams
  • Chris Wiens
  • Client Login
  • Contact us
  • COVID-19 Safety Procedures
  • Disclaimer
  • dixonmitchell
  • Financial Terms Glossary
  • Home
  • Insurance Application Tips and What to Expect from a Paramedical Exam
  • Investments
  • Joey San
  • Julia Friesen
  • Kathe Atkinson
  • Meet Our Team
  • Melanie Tessarolo
  • Michelle Jones
  • Mike Erickson
  • News
  • Our Firm
  • Personal Planning
  • Preparing For The Examination
  • Privacy Policy
  • Reach Out Today
  • Referrals
  • Resources
  • Services
  • South Delta Hockey Contest
  • Testimonials
  • Vince Olfert

Categories

  • Business Planning
  • Current Events
  • Estate Planning
  • Insurance
  • Investments
  • Mortgages
  • News
  • Personal Planning
  • Real Estate
  • Retirement Planning
  • Tax Planning
  • Uncategorized

Archive

  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • November 2019
  • October 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • October 2018
  • September 2018
  • March 2018
  • February 2018
  • December 2017
  • May 2017
  • April 2017
  • February 2017
  • January 2017
  • October 2016
  • June 2016
  • February 2016
  • January 2016
  • October 2015
  • June 2015
  • February 2015
  • December 2014
Link to: Contact us

Have Questions? We’re here to help!


Our advisors are always ready to weigh-in on your financial strategies and help you develop the wealth management plan that’s right for you.

Reach out today!


Connect Wealth | 13-2970 King George Blvd. | South Surrey, BC V4P 0E6, Canada
Phone: 604.542.4298 | Toll Free: 877.542.4298 | Fax: 604.542.4289

© Copyright 2020 Connect Wealth. All rights reserved. Privacy Policy

Scroll to top

This website uses cookies. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. By continuing to use our site you are agreeing to our cookies privacy.

OKLearn More

Cookie and Privacy Settings

How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, you cannot refuse them without impacting how our site functions. You can block or delete them by changing your browser settings and force blocking all cookies on this website.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visist to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Vimeo and Youtube video embeds:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Privacy Policy