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

Lacrosse registration still open

It’s not too late for players ages 5-14 to sign up for this summer

Animal rights group plans rally in Duncan March 25

Planned rally at Duncan Courthouse on April 3 called off

Sesquicentennial Totem to be unveiled on March 23 in Duncan

Project commissioned by the City of Duncan

Elder Co-op launching free Rideshare service

“The Elder Care Co-op was formed with a vision of ‘seniors helping seniors”

Bantam female team caps off perfect season

Cowichan earns league and playoff banners

Lake Cowichan Seniors Dance draws green-clad crowd

The gang at the Lake Cowichan 50+ Activity Centre chalked up another success

Rescued Comox canoer credits those ‘at the right place, at the right time’

James Milne was rescued in a hypothermic state Sunday near Goose Spit

Proposed gun bill attacked by gun owners and shooting victims

The federal government tabled the bill today in order to tighten the sale and tracking of firearms

New anti-radicalization centre in the works for B.C.

Centre aims to help ‘vulnerable individuals of the path to radicalization’ before they turn to crime

B.C. bravery, public service honoured by Governor General Julie Payette

UVic basketball coach Kathryn Shields inducted into Order of Canada

Sea lion with rope wrapped around neck saved by Vancouver Aquarium

Steller sea lions are a species of special concern and some populations are endangered in parts of Alaska

B.C. can learn from Washington’s wine industry growth

Winery owner cites importance of industry collaboration

50-million-year-old fossil found in B.C. town makes history

Paleontologist Dr. Bruce Archibald says Princeton, B.C. is becoming famous for giving up rare fossils

VIDEO: Dashcam records near-miss by bad driver

Speeding pickup truck shown illegally passing on highway shoulder

Most Read