The provincial government announced its latest tax hike on Tuesday. As has been the case in recent years, it did so indirectly.
In fact, the announcement was made by the Insurance Corporation of B.C., which plans to raise its basic rates, which all motorists must pay, by 5.2%.
The province is expecting to get $480 million in dividends from ICBC in the three years from 2014 to '17 and another $1.23 billion from BC Hydro. Both of these massive dividend payments are on the backs of ratepayers - those who have no choice but to buy electricity from BC Hydro and basic auto insurance from ICBC.
This is being done so the government can balance its budget and claim to be a good fiscal manager. Meanwhile, the rate increases planned by both corporations are far beyond inflation and are disguised as being necessary "because of more claims due to distracted driving" (ICBC) and "by the need for capital expenditures." (BC Hydro).
This latest disguised tax increase is unacceptable.
