VANCOUVER, British Columbia, Feb. 18, 2021 (GLOBE NEWSWIRE) -- If governments in British Columbia want to attract more tech companies and encourage entrepreneurship, they must implement significant policy changes to make the province more attractive to entrepreneurs and high-skilled workers, says a new essay released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The vision of B.C. becoming a large tech hub will only become a reality if policymakers in the province improve the policy environment for business,” said Steven Globerman, professor emeritus at Western Washington University, senior fellow at the Fraser Institute and author of The Outlook for Growth in British Columbia’s Private Sector.
For example, the province’s business tax rate jumps from 2 per cent to 12 per cent once a company’s revenues reach $500,000 per year, disincentivizing growth for companies already in B.C. and potentially discouraging others from relocating to the province.
Moreover, B.C.’s combined (provincial plus federal) personal income tax rates for top earners are significantly higher than combined rates in every U.S. state including high-tax jurisdictions such as California.
Finally, Vancouver and Victoria (alongside Toronto) remain the most unaffordable cities in North America, and housing costs are a key consideration for workers looking to relocate.
“By reducing top tax rates and encouraging housing construction to improve affordability, policymakers in B.C. can make the province more attractive to the tech sector, which creates jobs and wealth,” Globerman said.
MEDIA CONTACT:
Steven Globerman, Senior Fellow
Fraser Institute
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org.