Is new tax the only way?
There are two new taxes effective January 1, 2019 in BC:
One is Speculating and Vacancy Tax, which is retroactive to 2018. It is known by most people in BC, because most of residential property owners are impacted.
Another one is Employer Health Tax! Basically all legal entities, if your total annual remuneration to employees over $500,000, you need to register an account and pay the tax.
I’m not so sure how much due diligence have been done before implementing the new taxes. Besides housing speculation, the increase on land cost, construction costs, government levy and population also contribute to the high home price. Blaming on one reason won’t resolve the problem. The government should aim at reducing the building costs and increasing the supplies.
Real estate is one of the major industry in BC. Less developments mean less work for BC residents, what’s the consequences to follow?
What’s the health tax for? I guess it’s for covering the shortfall due to reducing MSP premium from individuals. The life for businesses is already hard enough. In 2018, the property tax increase on commercial properties impacted the profitability of many small and medium sized companies. Adding a new tax means a harder year in 2019.
A wise government should implement policies to improve the economic growth. It’s not wise to kill the hen to get the egg.