Business groups representing retail, restaurants, hotels, construction companies, tourism and small business are calling on the B.C. government to rethink its payroll tax to fund health care.
The organizations wrote to B.C. Premier John Horgan and Finance Minister Carole James Tuesday, asking them to withdraw the 鈥渆mployer health tax鈥� imposed in the NDP budget to take effect January 2019. The tax is on payrolls greater than $500,000 and is to finance the elimination of Medical Services Plan payments in 2020.
calls it 鈥渄ouble dipping鈥� and 鈥渄isingenuous and unfair to taxpayers鈥� for the government to begin charging the new tax while still collecting MSP for the year 2019.
The letter is signed by representatives of Restaurants Canada, the B.C. Hotel Association, B.C. Construction Employers, the Independent Contractors and Business Association, Progressive Contractors Association, Retail Council of Canada, The Urban Development Institute, the Canadian Federation of Independent Business and Tourism Industry B.C.
The business groups point out that the payroll tax comes on top of minimum wage increases totalling 42 per cent since 2011, an increase to Canada Pension Plan payroll costs beginning in 2019 and property taxes expected to rise as local governments cover the health care tax costs.
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鈥淭his tax is a job killer,鈥� said Chris Gardner, president of the ICBA. 鈥淚t came completely out of left field, with absolutely no consultation before it was announced.鈥�
James and Horgan have also been under pressure in the B.C. legislature, for the effect of the payroll tax and a still-undefined 鈥渟peculation tax鈥� on empty homes in the province.
In question period Tuesday, B.C. Liberal leader Andrew Wilkinson asked Horgan if firefighters sitting in the public gallery were going to be exempted from the tax. Horgan repeated what James has been saying in recent days, which is that discussions with municipalities, health authorities and school districts are still underway.
鈥淎fter 16 years of doubling MSP premiums, we鈥檙e going to be getting rid of MSP premiums,鈥� Horgan said.
