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

Subdivision proposal raises densification questions in Maple Bay neighbourhood

North Cowichan’s council votes 4-3 to allow project on Westlock Road

Editorial: Crofton development’s affordable housing component promising

Crofton has long been a slightly more affordable haven for young families and retirees

Kerry Park’s new goalie is perfect in VIJHL debut

Charles-Olivier Lepage shuts out high-powered Storm

Longtime resident and business owner Garry Bruce running for Duncan city council

I have been a resident in the City of Duncan for more than 60 years

Double heartbreak for Cowichan Capitals at BCHL Showcase

Caps edged in OT one night, give up winner with 4.5 seconds left the next day

VIDEO: Tour de Rock rider says event provides badly needed support

Cancer survivor and volunteer firefighter Nicole Emery speaks about importance of fundraising tour

Federal use of A.I. in visa applications could breach human rights, report says

Impacts of automated decision-making involving immigration applications and how errors and assumptions could lead to “life-and-death ramifications”

Rattie scores 3 as Oilers blank Canucks 6-0

Vancouver slips to 1-5 in exhibition play

Veterans Affairs ordered to take second look before supporting vets’ relatives

Liberal government ordered officials to adopt a more critical eye

Dead B.C. motorcyclist was member of group that raced down mountain road

Some group members record their rides on Strathcona Parkway and post times to page

Indigenous athletes in spotlight at BC Sports Hall of Fame

New gallery to feature Carey Price, Kaila Mussel and Richard Peter

B.C. couple who went missing on flight from Edmonton named by family

Family released a statement Wednesday saying they’re still intent on finding the two-seater plane

VIDEO: A close look at what you were breathing during the B.C. wildfire season

Electron microscope images show soot and tar particles generated by worst B.C. fire season

Island man calls 911 after being robbed of his drugs

Nineteen-year-old and 15-year-old suspects face multiple charges following robbery Monday in Nanaimo

Most Read