B.C.B次元官网网址檚 economy is in relatively good shape compared to other provinces as the NDP government prepares for a year where the COVID-19 pandemic is easing, the B.C. Business Council says in a pre-budget analysis.
But the tax environment is affecting competitiveness, working against the provincial governmentB次元官网网址檚 push to move B.C. to a more high-tech economy with hundreds of millions in innovation, clean energy and skills training spending ahead.
Finance Minister Selina Robinson is preparing to release B.C.B次元官网网址檚 2022-23 budget on Feb. 22. A forecast deficit for the current year has shrunk from nearly $10 billion to $1.7 billion, including large contingency funds, but much of that is likely to be expended this year on massive reconstruction of flood-damaged highways and recovery of Lytton, Merritt and the Eastern Fraser Valley.
The skills shortage is significant, particularly in senior management roles where top executives are faced with an personal income tax rate of more than 53 per cent, BCBC chief economist Ken Peacock said Friday. And B.C. competes with the U.S. Pacific Northwest, where Washington has no state income tax, as it hopes for more investment from technology giants such as Amazon and Microsoft.
B.C. already has CanadaB次元官网网址檚 highest offered wages, but attracting young people to the province to replace retiring baby boomers and build new industry is held back by high income taxes and housing costs, Peacock said Feb. 18. Despite the wages, B.C. has the highest number of job vacancies among provinces.
B.C.'s investment climate and taxation illustrated by
B次元官网网址� Tom Fletcher (@tomfletcherbc)
As Premier John Horgan and Jobs Minister Ravi Kahlon said this week in updating the provinceB次元官网网址檚 economic plan, resource industry exports continue to be key to the provinceB次元官网网址檚 future growth. B.C. has the highest carbon tax in Canada, without protection for exporting industries as other jurisdictions have, and measured as a share of gross domestic product, B.C. and CanadaB次元官网网址檚 exports are at the same level as in 1980.
B次元官网网址淚t needs to change,B次元官网网址� Peacock said of industrial carbon costs. B次元官网网址淚tB次元官网网址檚 becoming very onerous.B次元官网网址�
B.C.B次元官网网址檚 clean energy transition requires copper and other minerals. Last January B.C. cabinet ministers were reminded that it takes an average of 13 years to approve a new mine in the province.
B次元官网网址淭he regulatory environment and permitting absolutely have to be addressed,B次元官网网址� Peacock said.
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