Eby rolls out yet another tax-the-rich pitch



Higher income taxes open another campaign fight over who should pay for B.C.’s strained public services

BC NDP Leader David Eby has returned to the party’s 2017-era playbook to ask those who have a little bit more to pay a little bit more back to the cash-strapped provincial government.

Eby pitched a two-percentage-point hike to the top two personal income tax brackets Sunday, plus a new bracket for those earning more than $1 million annually. Combined, it would generate up to $1 billion in new revenue.

“When people are struggling, we think that it’s fair to ask those at the top to pitch in a bit more so we can make it possible for everyone to get ahead,” he said.

People earning more than $190,405 would see their provincial income taxes rise to 18.8 per cent, while those above $265,545 would rise to 22.5 per cent. The new millionaire tax would hit 24.5 per cent. Collectively, around four per cent of British Columbians fall within those brackets.

The move is reminiscent of Carole James, the NDP’s first finance minister after taking power in 2017, who raised some taxes and asked those with a bit more money “to pay a little bit more” to help the provincial treasury.

It was a new government at the time, fresh into its first mandate.

This iteration of the NDP has been in power nine years. And Sunday’s announcement marks at least the ninth tax hike pitched by the NDP in the last 12 months.

The February budget raised the income tax on the lowest bracket from 5.06 per cent to 5.6 per cent, generating around $500 million annually. It also raised the school tax ($139 million), expanded the provincial sales tax to new services ($534 million—but temporarily paused right before the election call) and eliminated PST exemptions for wool, cable TV and telephone lines ($44 million).

During the campaign, Eby has pitched raising the speculation and vacancy tax (the second increase in one year), creating a new tax on developers who leave units empty, and the three new income tax increases.

Altogether, there’s at least $2.25 billion in new taxes on the table by New Democrats in just 10 months.

Even still, that’s forecast to do little to blunt a record $14-billion deficit this year. Nor did Eby rule out more tax increases on the campaign, as he seeks to dig his government out of a deep structural spending problem that has occurred during his four-year tenure as premier.

“As we face an unprecedented attack on our economy and rising costs for working families, we’ll ask the wealthiest to chip in a little more,” Eby said Sunday. “That’s how we’ll build B.C. strong for all of us.”

The BC Conservatives quickly dubbed the personal income tax hike the “doctor tax” because it lands in the income threshold of new physicians the government is desperately seeking to recruit from the United States and other provinces.

“At a time when British Columbians desperately need more doctors, David Eby has revealed his plan to drive doctors out of our province,” the party said in a statement.

“Emergency rooms are still closing at night, and now he wants to tax the doctors and specialists every community is fighting to recruit.

“There is no problem the NDP don’t think can be fixed by raising your taxes.”

At his rally announcing the tax increases Sunday, Eby trumpeted the 700 health-care workers who have come to B.C. from the United States, but did not comment on whether his tax proposal would dampen that.

“I celebrate the success of British Columbians, I say if you are doing well that’s fantastic, I love that,” said Eby. “But a lot of people in the province are really struggling, and a time like this when our province is under attack … if you’re earning about $200,000 a year or more, you can pay a little bit more, and so that’s what we’re going to ask people to do.”

The new tax increase follows on a series of abrupt policy announcements by Eby, targeting grocery store chains, millionaires, oil and gas companies, and housing developers, all of which he says are “gouging” British Columbians and should be more heavily taxed or regulated.

The direction leans heavily into Manitoba’s Wab Kinew, New York City Mayor Zohran Mamdani, federal NDP leader Avi Lewis and even BC Green leader Emily Lowan, as the BC NDP seek to pull populist pages from campaigns with more resonant messaging.

The Greens, who are mounting a challenge to New Democrats on the South Island and are set to field a surprising 73 candidates, blasted Eby.

“After years of freezing childcare, cancelling affordable housing, and sending workers to the picket line, Premier Eby has suddenly discovered that the wealthiest should pitch in to fund the services we all need,” said leader Emily Lowan.

“But by taxing income, Premier Eby is missing the point. The ultra-wealthy don’t get rich on paycheques. Their fortunes grow in stocks and real estate, and his plan doesn’t touch a cent of that.”

The Greens are pledging their own, more aggressive plan Monday to tackle the wealthy elite. If it’s successfully received by the public, it’s possible you could see the BC NDP steal that too before the election is over.

Rob Shaw has spent more than 17 years covering B.C. politics, now reporting for CHEK News and writing for Lodestar Media. He is the co-author of the national bestselling book A Matter of Confidence, host of the weekly podcast Political Capital, and a regular guest on CBC Radio.

[email protected]

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