B.C. NDP Leader David Eby speaks during a campaign stop at a Martini Film Studios backlot set, in Langley, B.C., on Sept. 28.DARRYL DYCK/The Canadian Press
New Democratic Party Leader David Eby is promising a tax cut to help the middle class cope with the rising cost of living, starting with a $1,000 cheque for most British Columbian households next year, if his party wins the election on Oct. 19.
The NDP says taxes would be reduced by about $500 for individuals who make $125,000 a year or less, or about $1,000 for households with a combined income of $250,000 or less. That is about 90 per cent of British Columbians.
Speaking Sunday at a campaign event in Surrey, Mr. Eby said the plan would begin next year with direct payments. After that, an additional $10,000 of individual income would be exempted – to $22,580 – from annual taxes every year, beginning in the 2025 taxation year.
“It’s really tough out there for many families – inflation and interest rates have driven up the cost of daily essentials,” said Mr. Eby. “People need help now so they can get ahead.”
Mr. Eby’s NDP is in a tough two-way race with the Conservative Party, led by John Rustad. The NDP, seen as relatively moderate, has become a far more activist, big-spending government in the past year, and that has awakened the opposition of some powerful economic interests.
On the other side of the political ledger, the province’s Official Opposition party – BC United – has suspended its election campaign, leaving the field open for a single alternative to the current government that is, according to public opinion polls, in a statistical dead heat with the NDP.
Mr. Eby’s pledge comes less than a week after the Conservatives announced a provincial tax rebate targeted at housing affordability.
Mr. Rustad announced last Monday that, if elected, his party would exempt $1,500 per month of rent or mortgage interest costs from provincial income taxes. (This amount will increase by $500 each year, ultimately reaching a maximum monthly exemption of $3,000 by 2029.)
Tom Davidoff, an economics professor at the Sauder School of Business, told The Globe and Mail on Sunday that he prefers Mr. Eby’s proposed tax cut to Mr. Rustad’s plan.
“The biggest problem with the so-called Rustad Rebate is that the richer you are, the more money you get.”
“We need to help people at the lower end. But it’s not clear Mr. Rustad’s plan gives any more to low-income people,” said Mr. Davidoff.
Mr. Eby announced the promised tax cut on Sunday afternoon in the seat-rich suburb of Surrey, a key battleground ahead of the election. Surrey is among the fastest-growing cities in the province; and both schools and hospitals there are being overwhelmed by demand.
Given how close polling suggests the election might be, Surrey voters – particularly in the city’s core, where three central ridings are at play – could help to determine which party forms government next month.