It's all about confidence, and the markets have confidence in B.C. - so you should too.
This was the key message in Kevin Falcon's speech to the Richmond Chamber of Commerce Friday morning.
The Minister of Finance is making the rounds to various business and trade groups in the province, following the release of his annual budget.
"Never underestimate confidence," he said.
With a single keystroke, millions of dollars can be put into an economy and millions of dollars can be taken out, he added.
Although seniors groups, environmentalists and others are not happy with what he calls a "prudent" budget, the fact markets responded positively is good enough for him.
"Look at Greece," he said. Greece has become the poster country of what can happen when investors don't like how governments run the country.
Through graphs and charts, Falcon showed how, since the Liberals have been in power, spending has been held down and taxes have been reduced - and markets love that.
On the tax side, corporate taxes have been reduced from 16 per cent to 10 per cent, giving B.C. the lowest corporate taxes of all G7 countries. Meanwhile taxes to small business has been reduced from 4.5 percent to 2.5 per cent.
On the spending side Falcon's buzz phrase is "bending down the curve."
Regarding health funding, for example, spending increases have been reduced from 7 per cent between 2005-2009 to 4.8 per cent between 2010-2012, and to 3.28 per cent in 2012-2015.
This all helps ensure B.C. maintain its Triple A credit rating, according to Falcon.
Numbers that the minister didn't mention - but critics do - are in regard to the growing disparity of wealth in B.C.
According to the government's own number crunching agency, BC Stats, B.C. is second only to Alberta in having the greatest household income disparity in the country, while it has the largest gap in the country between the top and bottom 20 per cent of income earners.
The report notes that other provinces have had more success redistributing income through taxes and benefits.
Anti-poverty groups argue this budget, furthers increases the divide. For example, they argue the increased tax credit that is now available to people buying a second home or recreational property, is yet another example of the B.C. Liberals benefiting those wealthy enough to consider making such a purchase in the first place.
It's particularly irking at a time when many working people are finding it hard to afford rent, never mind buying a second home.
However, Falcon noted that the rebate not just benefits the buyer but also builders and resort areas like Sun Peaks, which, in turn, creates jobs.
Also in the name of creating jobs, Falcon said the two per cent cut in jet fuel tax will be a boon for the airport and credited Richmond Centre MLA Rob Howard for the initiative.
Howard has been a champion of the Gateway project, bringing in investment from Asia, and views the airport as an integral part of that its success.
