Re: “Higher taxes take money from economy,” Letter, Feb. 6.

The letter-writer makes a basic error common to the political right in saying that raising taxes to pay for public services takes money “out of the economy and into the hands of government.” Money spent by government remains in the economy, paying for goods and services with dollars that circulate within B.C.

Dollars spent for public services such as education, health care and transportation are “in the economy,” as much as dollars spent on private education, health care or transportation.

Money taken out of the B.C. economy is largely that in private hands. Consider profits that are transferred instantaneously and electronically to individuals and companies outside of B.C. Consider billions held in banks without investment in B.C. Those private-sector dollars are truly “out of the B.C. economy.”

A strong tax system supports the economy and provides public services that enhance our communities. A progressive tax system ensures that support comes most from those with the ability to pay.

Ernie Gorrie

Cowichan Bay

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