Dear Editor
Re. April 20 letter to the editor: Some people are asking why personal income tax basic amount decreased for the 2013 tax year, and I hope this letter clears up any confusion. This change flows directly from the decision made by British Columbians, through a province-wide referendum, to return to the PST.
In 2010, the basic personal amount was enhanced as part of the introduction of the HST. When British Columbians chose to eliminate the HST and go back to the PST, the enhancement to the basic personal amount was also eliminated. This was necessary to fulfil the government's commitment to respect the referendum results.
Today, B.C. families generally have one of the lowest overall tax burdens in Canada. Provincial personal income taxes for most taxpayers have been reduced by 37 per cent or more since 2001 - today an additional 400,000 people no longer pay any B.C. income tax.
For example, an individual earning $50,000 a year pays $1,340 less in provincial income taxes than they did in 2001. And a family of four earning $70,000 a year pays $1,990 less in provincial income taxes on their earnings than they did in 2001.
Michael de Jong
Minister of Finance
