By DAVE BARRETT NDP Leader of the Opposition The overwhelming social and economic need in British Columbia today is jobs for our citizens — now. All signs point towards a horrendous winter of more layoffs, bankurptcies and foreclosures on top of the terrible figures this fall. The cost in a further faltering of our economy will push our provincial treasury deeper into an already record deficit. The answer to our problem doesn’t lie in attacking working people, but in attacking the lack of work. Itis a measure of the Socred government’s incompetence that it pretends the single mother working as aclerk for $900 a month is a cause of our problems because she asked for a cost of living wage increase. The depressed ecomony in our province was made so much worse by Socred govern- ment policies — or lack of them — over the past three years as they frittered away a billion dollars in special reserve funds on useless expansion of budgets for increased advertising, offices, consultants and mis- management. The Pouilly Fuisse, Broadway junkets and $100,000 ferry rides were only symbolic of the tragic mis-management which ranged from outright waste of scores of millions in the Brannen Lake heroin centre, embarrassments to blunders in priorities such as sacrificing hospital beds, reforesta- tion programs and other necessities to meet the interest payments on huge subsidies to export coal for the benefit of Japanese industry. What shows up the government’s so- called “restraint” program as a cynical ploy to cover up its failure to create jobs when they are needed is the fact that in almost 40 separate votes in the past two budget sessions it rejected specific motions by the NDP to cut more than $150 million in increases for frills in government spending which the Socreds wanted. Will confidence return because the Socred demand that ordinary workers tighten their belts while the Bill Bennett government wastes and bungles our economic opportuni- ties? Of course not. The only thing that will bring hope and revive consumer spending is a government using its resources to provide jobs now strengthening our ability to sur- vive in the new economic world that even- tual recovery will bring. That was the technique used by President Franklin Roosevelt to get the depression- wracked U.S. back on its feet when the “re- staint” policies of Herbert Hoover had only made things worse. Last month, using that approach, the NDP proposed a $300 million program to fund needed but frozen civic projects in all our communities. Last spring we also pro- posed a 26-point “‘Let’s Get To Work” program. Together they would provide almost 60,000 jobs. And that’s what we need © Labour History ‘The Clothier’s Delight’ ual eas emai many poor men that work early and late; it were not for them that do labour full hard, ; might go and hang ourselves without dates back to the reign of William of Orange (1688-1702) The smiles tell the story. Former employees of Revelstoke Home CHEQUES FINALLY ARRIVE Improvement Centre’s Kelowna store Thursday received severance pay owed them bymployer since the store closed about two years ago. Twenty-six employees, who were all members of the International Woodworkers of America Local 1-423, will share $227,141 with individual payments ranging from $3,765.63 to $10,244.49. From left: Terry Houston, a member of the union's negotiating committee when the store closed; Dell Welder, financial secretary of Local 1-423; and Ralph Delgatty, top senior employee when the store closed. —Courier photo Socred Taxes In 1982 the Socreds announced that they would abolish two BC tax credits which benefit low income households, and introdu- ce “Billy Bonds” which give a tax break to those lucky enough to have substantial interest incomeh they are liable to tax. The Renters Tax Credit and BC Personal Income Tax Credit can still be claimed at the time of writing since they have not been abolished by legislation. The tax exemption for interest earned on Billy Bonds will apply. in 1983. i : Se Income — $11,000 We have calculated the effect of these Socred tax changes on two families in rather different economic circumstances. Tax is calculated for 1983 before and after the changes. It is assumed that other tax rates and deductions will be unchanged from 1982 to 1983. FAMILY ‘A’ Representative of the working poor, Fam- ily ‘A’ is composed of one income earner with a dependent spouse and three depend- ent children. Accommodation is rented. » less — $670 Standard Deductions (UIC, CPP, Employment Expense, etc.) less — $10,330 Personal Exemptions Taxable Income — nill BC Tax Credits — Renters Tax Credit — $150 (Maximum with no taxable income) — Personal Income Tax Credit — $309.90 (3.5% of personal exemptions minus 1.5% of taxable income) Total Credits — $459.90 Effect of Socred tax change — Loss of $459.90 FAMILY ‘B’ Representative of the wealthiest 2% of the population, Family ‘B’ is headed by a Kelowna millionaire with annual income of more than $100,000. Tax is paid on interest Before income at the highest rate. The effect of the tax exemption for Billy Bonds is calcu- lated by comparing the after tax return of an investment of $50,000, the maximum al- lowed for purchase of Billy Bonds. Interest from $50,000 term deposit at 10.25% (The rate for non tax exempt BC Bonds) = $5,125 Before Interest from $50,000 term deposit at 10.25% (The rate for non tax exempt BC Bonds) = $5,125 less — federal tax (84%) — $1,742 less provincial tax — $766.70 (44% of federal tax payable) less provincial tax surcharge — $76.60 (10% of provincial tax for high income earners) After Tax Return — $2539.20 After Interest from $50,000 investment in provincial tax exempt bonds, at 9.25% = $4,625 less — fedefat tax — $1,572.50 After Tax Return — $3,052.50 Effect of Socred Tax Change — Gain of $513.30 Overall Effect of the Tax Changes By borrowing money through the gim- mick of Billy Bonds, the Socreds will lose tax revenue and pay a higher interest rate on borrowed money. This los must ultimately be paid for by the taxpayers. Low income families lose a total of $70 million from elim- ination of the Personal Income Tax Credit, $21 million from elimination of the Renters Tax Credit. Wealthy taxpayers, who do not quality for BC tax credits, now get anew tax reak. Lumber Worker/April, 1983/9