Dear Sir: . The new ‘liberal’ government in A6 - The Terrace Standard, Wednesday, November 28, 2001 This isn’t the time for tax cuts CORRESPONDENCE FOR THE TERRACE STANDARD James W, Radelet RADELET & COMPANY Barristers & Solicitors. Tax Law ¢ Trusts * Corporate & Commercial The billion dojlars paid to nurses will 1330 - 1075 West Georgia Street, Vancouver, B.C. V6E IC? be spent in the communities where - B.C. won the election with the plat- form of tax cuts. They said they would keep their promise, but in fact they broke that promise, They pro- mised to give tax cuts to the lowest section of taxpayers but in fact went $700 mil- lion over that to give wealthy people a tax re- duction grossly dispropertionale compared to the low income earners. But what is the difference to the economy between a billion dollars in tax cuts and a bil- lion dollars spent in essential services? They are both intended to stimulate the economy and to put money back into the coffers of gov- ernment. They do, but there are. major. differ- ences in their impacts. A tax reduction of a billion dollars should produce a minimum 7 per cent return to the province immediately that money is spent in sales tax, with a further 7 per cent for GST. That would be true of the breaks ($100) given to the Jow wage eamers because they will, of necessity, spend their money in the province for food, shelter and services, because their small budget does not permil out of province travel or holidays. Then, if all the tax refunds were spent in the province, the government would recoup $70 million and the feds would take a like amount for the GST, ' But while the low income earners will spend their hundred dollars locally, the high end earners who got 80 per cent of the billion dollars will likely spend their $1,700 out of the province. . They may elect to put it in the bank off- shore, or an RRSP (to escape taxes) or go on 4 holiday out of province, since they can af- The Mail Bag fard to travel. All the money so used will reduce the amount of provincial sales tax collected by the province. The amount of money that goes out of province is totally unpredictable but could po as high as 80 per cent. If that were the case, the sales tax would take in, not $70 -mil- lion, but only $14 million. As well there would be an $800 million loss to the province’s- economy. The’-exact amount of moncy spent out of province and not contributing to the economy (and subject to sale tax) would be ‘anywhere between $200 million and $800 million, and an exact esti- male would be impossible, Since the amount of money spent out of province can never be calculated, the stimulus to the economy can never be calculated. Using that billion dollars for services to the public creates a different picture; and one that can be documented with reasonable accuracy. The first thing to determine is which service are we to use as our comparison? Highways? But they impact different sec- tions in different ways. Schools and education are broad based enough, but private schools introduce impurities to the example. We will then use the billion dollars to hire nurses, a very timely example given the cur- rent shortage and social disruption, and see what this billion dollars in nurses’ wages pro- duces in government revenues and economic stimulus. ‘food, clothing, medical care and transporta- Phone! 604-689-0878 Fax: 604-689-1386 the nurses live and work. Holidays — out of province will be taken, but only when all the necessities af life are taken care of, The first of these necessities is in- come taxes. Given the salary range of nurses that category is 28 per cent, or $258 million dollars, divided up between provincial and federal jurisdiction. This is the immediate return to government, and then there is the sales taxes, an additional 14 per cent, $140 million. This is $380 million guaranteed, right off the top. The other prerequisites for life are shelter, Sy TERRY'S LOCK — a proud sponsor of GRIME a STOPPERS Terrace Crime Sloppers are asking for your help to solve a break and enter to a business on Highway 16 near Terrace, B.C. Sometime between November éth and 7th, 2001, the Canadian Tire Store fenced compound was broken. into and several items were stolen. The chain link fence on the west side of the building was cut and a storage shed was also-entered. “Two Honda motorcycles were stoien from the shed: They are described as follows: 1). AHonda XL200R red molarecla serial¥ 0601 EK103475 with a broken headlamp - 2) -AHonda XR80 sed motorcycle with stickers on the trim 7 Terrace: Crimestoppers wants your information, not your “name. Cail if you know the identily of those responsible for this or any other crime. Any information is valuable and may lead to the arrest and conviction of the offenders. tion. Those items take up the bulk of any household budgel, and all of these items will be purchased in the communities where the © nurses reside. * The amount of money spent on out of pro- | vince holidays will be variable, depending on marital status, children and personal desires, so we will allow.5 per cent of income for holi- days or $50 million. Stimulus to the provincial economy is now calculable. In fact, the only money to leave the province is (or may be) the $50 million for holidays, and not some unknown part of $800 . million. I hope that it will be clear from this that po- sitive social good and economic stimulus comes from putting money into needed com- munity services, as opposed to ad hoc cutting of taxes. Face it, taxes should only be cut when bud- gets are in a surplus position. Les Watmough, Terrace, B.C. Crime Stoppers olfers a cash reward of up to $1,090.00 for information leading to an arrest and charges belng laid against an individual in this or other unsolved crime. ff you have any Information call Crime Stoppers at 635-TIPS that's 635-B477, Callers wiil nat be required to reveal thelr (dentily nor testify in court, Crime Stoppers does not subsoertbe to call display. Get SCI back on track Dear Sir: : My hat comes off to the Mayors of Terrace and Prince Rupert for the stand they have taken with regard to the pos- sible sale of SCI, : As for people that don’t agree with this stand, it is obvious to me that they don’t understand the seriousness of the situation Here in the northwest. : We will be very fortunate if a deal can te worked out to get the pulp mill going again and it will take the complete coop- eration of everyone involved. Without the pulp mill the forest industry i in this area is tpast. + The timber stands from Hazelton to Brince Rupert are 50 per cent pulp and there is just no other market for this wood. * In the 80s and 90s [ worked for Orenda Forest Products in the Stewart-Meziadin atea. We were market loggérs and‘ sold dbout seventy five per cent of our produc- tion to pulp mills along the Pacific’ coast from Alaska to Oregon. : Four of these pulp mills no longer exist, and now the mill at Powell River is on the way out as they could not compete in the global market place as new pulp mills come on stream in other countries where wages and costs are much lower. The people in Sitka, Alaska, Ketchi- kan, Alaska, Gold River, B.C., Powell River B.C., and Port Angeles, Washing- ton thought they would always have their pulp mills and the jobs they supplied. But they found out this was just not so and now we must do everything possible not to join them. It is important to understand that other pulp mills in B.C. would be very happy if the government was lo let SCI go down as it would take SCI pulp production out of the market place. All our efforts must be focused on get- ting SCI up and running. “There is a little lighf‘at: the*end: ‘of the vee oe tunnel, but without the complete cgopera- tion of all the towns. involved we cauld put that light out permanently, Tipper Mould, Kitwanga, B.C. IFUL DENTISTRY ee Smile and Whitening By Dr. Zucchiatti ADENT DENTAL CLINIC Phone: 635-2552 4623 Lakelse Avenue, Terrace Mon-Fri * 8:00 am - 5:00 pm by Dr. Joe Zucchiatti 20 years of mercury-free dentistry Founding member and treasurer of the Western Canadian Academy of Cosmetic Dentistry General Practitioner Providing services in: Mercury-free white fillings Teeth Whitening Porcelain Veneers and Crowns Microabrasion Dentistry (No drilling, no freézing) Hygiene and Preventive Care Intre-oral camera assisted Diagnosis For your comfort, we have overhead televisions and headsets. We Welcome All New Patients foes MasterCard. VISA you want a copy of? The Terrace Standard along with Northern Photo Ltd. now provides this service. Come into our office located at 3210 Clinton Street and indicate the photo of your choice and size. wt er ee ee Want A ‘Photo > 4 Did you see a photo in the paper that i 5x7" kali : ~- STANDARD & : TU UT 4| A'x6” 5x7 : Price includes printing foe fram Northern ‘ 11g fee from the Terrace Standard, : All pholographs ara copyrighted to the Terrace Stondard, ' Other sites available. Phone for pricing. Photo and 5 (Nota: 90% of photos taken ora digital photos of high quality jpeg. Black ond white wae also qvoilobla from black ond white negatives.} northern photo “Your Headquarters For Digital Cameras And Digital Imaging Services” ' 44736 Lokeles Avenue ee ee Ax A a if 5 Spend money on nurses for patients Dear Sir: We need local qualified people elected to run our health care institutions with local input. They should be knowledgeable and sincerely caring and responsible to put funding to work in patient care departments and in housecleaning al- tention. If government can also save money by culling back on administration department staffs and costs for serving less bed capacities than before, the ex- cess funds should be put toward training more li- censed practical nurses. They could give much more real and necessary patient. carewhich is.sadly needed. “How, ani longer do’ Terrace: ‘citizens have to. i wait for’ ‘action: on the above. and. “previously ‘sub- mitted conceitis? *. Bana Jensen, Terrace, B.C. Call TERRY’S TIPS Do you know where all the keys are for your locks? If not, get them rekeyed. a Most residential and commercial locks are easily and economically rekeyed. Criminals commit many crimes with keys. Too many different keys for your house? Most locks ean be rekeyed so they will work with one key. Padlocks are also available that can be 4 keyed to your home or business keys. * Commercial, Residential, Automotive Lockamithing * Safes - Sales & Service + Emergency. 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