Premier John Horgan and Finance Minister Carole James take questions in the B.C. legislature. (Hansard TV)

Business groups call for payroll tax to be cancelled

NDP government under fire for ‘double dipping’ employer health tax

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 “employer health tax” 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.

The letter calls it “double dipping” and “disingenuous and unfair to taxpayers” 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.

RELATED: Fraser valley grower condemns health tax

“This tax is a job killer,” said Chris Gardner, president of the ICBA. “It came completely out of left field, with absolutely no consultation before it was announced.”

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

“After 16 years of doubling MSP premiums, we’re going to be getting rid of MSP premiums,” Horgan said.

Just Posted

Confused about breathalyzer rules? Penticton RCMP clarify

New federal impaired driving laws spark confusion, concern about breathalyzer administration

Video: New Penticton studio is a playground for creative types

We toured Penticton’s newest creator space

Balmy winter forecast for Okanagan-Shuswap

El Niño is anticipated to develop later this winter

Dementia journey the long good-bye

More than 70,000 people in B.C. have been diagnosed with dementia

Grants for Okanagan youth initiatives available

Project funding of up to $2,000 available for the South and Central Okanagan

Giant rotating ice disk forms in Maine river

Ice disk that is roughly 100 yards wide has formed in the Presumpscot River

Theresa May wins no-confidence vote after Brexit deal rejection

UK PM can keep her job, after House of Commons voted 325-306

First Nation supporters march to Horgan’s MLA office

Dozens marched across the Greater Victoria community of Langford to support the Wet’suwet’en people

Liberal candidate steps aside after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

SUV wedged on top of parked car has Kelowna mall customers confused

The accident occurred Tuesday, no injuries were reported

Osoyoos chief earns induction to Canadian Business Hall of Fame

Osoyoos Indian Band chief recognized as one of the country’s most distinguished business leaders

Razor burn: Gillette ad stirs online uproar

A Gillette ad for men invoking the #MeToo movement is sparking intense online backlash

Most Read