British Columbia Federation of Labour

Tax cuts should have been invested in social assistance, childcare and real social housing

VICTORIA - The provincial government's housing plan, released in today's budget, falls far short of addressing needs of BC's poor, says B.C. Federation of Labour President Jim Sinclair, arguing tax cuts should have been invested in childcare and real social housing.

Today's budget announced over $600 million in new tax cuts, including $100 million in corporate tax breaks and a 10 percent reduction in personal income taxes.

"We may have the lowest taxes, but this budget continues to ensure we have the highest levels of poverty too," Sinclair said. "This is a do-nothing budget that furthers the deep divide between the haves and the have nots."

"Only a cynical government would try and pass off a tax cut as a housing strategy," stated Sinclair. "Instead, they're spending more on corporate tax breaks than they are on meeting the real needs of people desperate for adequate housing."

Sinclair was disappointed that none of the priority items the Federation put forward in their Budget Submission last year were included. That Submission included advice to increase welfare rates by 50 percent, reduce tuition fees by 10 percent, restore grants for first-year post-secondary students, implementing a full childcare program and restoring funds to BC's women's centres.

"Another tax cut that benefits the poor the least is not the answer to the poverty crisis facing BC," stated Sinclair. "It provides the lowest level of benefit for the people who need it the most. Today's announcement of an increase of $50 to social assistance shelter rates, fails to meet the real day-to-day challenges facing the poorest British Columbians."

"For everyday working families, today's tax cut will only cover a few months of their childcare costs," Sinclair said. "Throughout the Budget documents, the BC Liberals warn of escalating construction costs because of labour shortages, but they don't understand that you can't solve the labour shortage if you don't solve the childcare shortage."

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For more information contact Jessie Uppal 604-430-1421.