Triple the Base Exemption for Individuals

The tax code is a convoluted mess of tax credits for individuals and businesses set against income taxes.  However, the credits are “targeted” toward groups of the population the government deems worthy of relief. If you don’t live your life the way government approves (go to school, have children, drive an electric vehicle) you receive no tax credits.  It is an exercise in social engineering. It is costly to administer, audit and comply with. The tax code could be made much simpler by eliminating all of these credits and instead increasing the base exemption on income by an equal total amount. Under our plan, no British Columbian will pay provincial personal income taxes on income earned under $31,200.

The BC Libertarian Party will raise the base exemption to $31,200.00.  This is the amount that every individual does not pay provincial income taxes on (currently $10,400).  By raising the base exemption on income taxes paid by individuals, we expect the marginal propensity of workers to reject further offered work to be diminished.  In other words, workers will take more hours knowing the earnings will end up in their pockets. Fewer people working cash jobs and more hours worked per employee will drive total wages higher.

Related: