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

Community and collaboration drive Binche Fishing Derby

Family time, forward thinking and positive initiatives to be highlighted

Dr. Paul Stent awarded Key to the Community

On June 4, local physician Dr. Paul Stent was presented with the… Continue reading

Audit finds Canfor did not comply with bridge maintenance legislation

Per a news release issued by the Forest Practices board, an independent… Continue reading

Tenth B.C. Justice Summit continues dialogue on Indigenous justice

Per an information bulletin courtesy of the Ministry of Attorney General and… Continue reading

Fort St. James Taekwon Do enjoys success at provincials

The Fort St. James Family Taekwon Do team has achieved enormous success… Continue reading

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

B.C. pledges $550 million for Indigenous housing

Aboriginal leaders say federal government needs to pitch in too

Sweden beats South Korea 1-0

Sweden gets benefit of video review in World Cup

Blue Jay Roberto Osuna not expected to appear in court

The Blue Jays pitcher is charged with one count of assault by Toronto police

Global warming cooks up ‘a different world’ over 3 decades

Over 30 years the world’s annual temperature has warmed nearly 1 degree according to the National Oceanic and Atmospheric Administration

Family separation policy starts dividing Republicans

Deep concerns arise over the child separation policy in the U.S.

Strong earthquake in Japan kills 3

The magnitude 6.1 earthquake that struck the area early Monday near Osaka

BC Lions defensive back Marcell Young levels streaker in home opener

Young hit the fan near one of the 45-yard lines

Police: Taxi driver who hit 8 Moscow pedestrians fell asleep

Two Mexican World Cup fans were among those hit

Most Read