The 2013 British Columbia budget proposed tax increases for high-earning individuals and corporations. However, these tax hikes may lead to people changing their behavior, causing tax revenues to fall short of expectations. In the short term, personal tax revenues could drop by up to 40 percent. In the long term, corporate income tax revenues may also decrease. The study suggests that less damaging tax reforms should be considered, such as the Harmonized Sales Tax or progressive property taxation. Governments should be transparent about how their revenue estimates account for potential changes in behavior due to tax policy.