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Business groups call for payroll tax to be cancelled

NDP government under fire for 91Ƶdouble dipping91Ƶ employer health tax
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Premier John Horgan and Finance Minister Carole James take questions in the B.C. legislature. (Hansard TV)

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 91Ƶemployer health tax91Ƶ 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 91Ƶdouble dipping91Ƶ and 91Ƶdisingenuous and unfair to taxpayers91Ƶ 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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91ƵThis tax is a job killer,91Ƶ said Chris Gardner, president of the ICBA. 91ƵIt came completely out of left field, with absolutely no consultation before it was announced.91Ƶ

James and Horgan have also been under pressure in the B.C. legislature, for the effect of the payroll tax and a still-undefined 91Ƶspeculation tax91Ƶ 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.

91ƵAfter 16 years of doubling MSP premiums, we91Ƶre going to be getting rid of MSP premiums,91Ƶ Horgan said.





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