BC's Budget

Yesterday, Finance minister Carole Taylor brought down her first budget. On the whole I thought it was a well rounded budget. When one considers right wing groups and left wing groups were both complaining that is a good sign it is a pretty middle of the road budget. More tax cuts would be nice, but they are not urgent since our tax rates our quite competitive compared to other provinces whereas in 2001 they were considerably higher than other provinces leading to many talented people moving elsewhere. Certainly more funding for important social programs makes logical sense. I also think it is important to remember the BC Liberals are a coalition of Liberals and Conservatives so I've argued that the party needs to keep both sides happy. Since Campbell governed like a conservative in his first term, I think it is logical to govern like a Liberal in the second term. This is not about flip-flopping, rather about keeping the big tent together. Chretien did the same thing by being centre-right in his first-term thus keeping the Blue Liberals happy, while being centre-left in his third term thus keeping the progressive Liberals happy. I know some were disappointed that the PST wasn't cut, but while a PST cut is certainly a plus, I would rather see income tax cuts, corporate tax cuts, or capital gains tax cuts, which do more to stimulate economic growth than a sales tax cut. If we are going to cut the PST, I support the idea of reducing it to 4% in areas within 100km of the Alberta border so as to reduce the incentive to shop in Alberta in order to save on the PST.

As a side note, I noticed the Liberals chose their shadow cabinet today. Although I was surprised by many of the individual portfolios since few members were given the same portfolio as they had in government, I now doubt believe they have a far more experienced and talented team. Hopefully they can not only hold this government to account, but also propose positive solutions as well.