FEORELLED L Tat Pan High-income earners hardest hit in Victoria’s $19B budget BRITISH COLUMBIAN taxpayers will have to dig a lot decper into their pockets to finance government operations for the 1993-94 fiscal year, which begins on April 1. Taxation revenue oudined in Fiffance Minister Glen Clark’s $19 billion budget on Tuesday will rise by 12.8% overall, to $10,862 billion, with high-income earners the hardest hit. That figure represents 624% of the budget’s projected total reve- nuc of $17.46 billion. Fuelling the overall 9% increase in ‘revenue in Clark’s second budget for the NDP government is a 1% increase in the provincial sales tax an goods and services — raising it to 7%. As well, the finance minister added specific services that will now be taxed. These include ser- vices to ‘‘install, assemble, dismantle, repair, alter, restore, recondition, refinish or maintain tangible personal property."’ The sales tax changes are ex- pected to generate an additional $385 million in this fiscal year, and $545 million per year thereaf- ter. The government is most op- timistic in expected revenue from natural resources, projecting a $223 million rise in income from forestry, to $913) million, up 32.3%. Other highlights in the 1993.94 budget include: «A 5.7% increase in government spending to $18.995 billion. *A reduction in the provincial deficit of $415 million, to $1.535 billion for the new fiscal year. However the total direct and guaranteed government debt for 1994 is expected to rise to $26.4 billion, up $3.1 billion over the 1993 forecast of $23.3 billion. «An increase of 10% to the sales tax on ‘‘luxury’’ passenger vehi- cles valued at $32,000 or more. e Personal income tax will in- crease only for the 183,000 British Columbians who earn. over $60,000 per year, effective Jan. 1, 1994, The hike will mean an addi- tional $285 to $755 in taxes for those earning between $80,000 and $100,000, and a $2,241 increase for those earning in excess of $150,000. Clark estimates that the increase will yenerate an addi- tional $18 million annually. * General corporate sales tax will rise one-half of 1% to §6.5%, a move expected to add $17 millon to provincial coffers. * Reduction of the homeowner wrant to the wealthiest 5% who wn homes worth more than By John Pifer From Victoria $400,000, and an increase of $20 to S470 in the grant to those with average and Jower-priced homes. For seniors, the grant rises to $745 from $720. ¢ The tax on cigarettes rises $1 per carton of 200, to $22, effective Wednesday, and liquor prices will rise by up to 3% on Thursday, April i. * Medical Services Plan premiums will increase by 3%, effective Oct. 1, to $36 per month for individu. als, $64 for families of two and $72 exch month for families of three or more. Low-income carners will receive MSF assistance of up to 95%, and 430,000) lower-income familics will pay no MSP. ¢ More than $80 million has been earmarked for programs to. train welfare recipients for work. eA one-cent-per-litre tax on xusatine kicks in on Sept. 1, with revenue earmarked solely for fi- nancing new highway construction through a new financing authority announced on Tuesday. The budget also raised the threshold for the corporate cupital tax to companies with $1.25 mil- lien in paid-up capital, rather than $1 million. About 2,000 cor- porations will now not be liable for the 0.3% tax. As -for expenditures, budget shows social aboriginal affairs, women's equality, health and education with the largest spending increases — 16.8%, 13%, 10%, 4.1% and 3.4%, respectively. Clark said health-care costs have risen 10% per year over ihe past five years, But the largest) additional ex- pense to the NDP government will be managing the public funds and provincial debt — a 20% increase to almost $t billion, The president of the Chartered Accountants of B.C... Don Young, told reporters the provinee is con- tinuing to live beyond its means. Clark’s services, “Expenditures will outstrip rev- enues by more than $1.5 billion, despite large tax increases. Uniess we can reduce our costs, we con- tinue to mortgage our future and limit the options for the future,”’ said Young. BRENDA ROBINS Hillside grad set to star in Playhouse's Death and the Maiden SEWELL'S SAILS West Van murine co. offering fishing trips to Queen Charlottes te Display Advertising 980-9511 Classifieds 986-6222 Distribution 986-1337 en oe aes 2k NEWS photo Neil Lucents Field day MOUNT SEYMOUR Planet striker Ali Semieian {middle} and Lynn Valley Devils’ goalie Dustin Bryant (right) challenge for the ball during the Lynn Valley Soccer Association’s huge invitational tournament last weekend. The Planets defeated the Devils 3-1 in their Saturday contest and went on to win the Under-10 age group with a win over the Kerrisdale Bears. Over 2,200 players competed in 315 games on 32 fields in North Vancouver during the weekend tournament. 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