Viking Air manufactures aircraft on Vancouver Island and in Alberta. (Viking Air photo)

Carole James avoids questions on B.C.’s payroll tax (with video)

Green MLA Adam Olsen cites huge tax increase for local business

B.C.’s new employer health tax to replace Medical Services Plan premiums was quietly made official Tuesday, with legislation presented to impose it on payrolls of $500,000 or more as of Jan. 1, 2019.

Finance Minister Carole James presented two controversial tax bills at the same time, with most of the attention going to the government’s “speculation and empty home tax” on urban areas getting most of the attention.

The employer health tax has much wider effect, triggering property tax increases across the province as municipalities have to pay the payroll tax and the half-portion of their employees’ MSP fees on top of each other for 2019. MSP is due to be phased out entirely in 2020.

RELATED: Fraser Valley greenhouse growers hit hard by tax

RELATED: Survey finds 30% of businesses expect to cut staff

James emphasized the positive results, effectively a personal income tax cut for individuals who pay their own MSP premiums. Non-profits are essentially exempted, health authorities, school districts and post-secondary institutions have been promised budget increases to cover the tax. But larger businesses are in the same boat as municipalities, paying MSP and then shouldering a tax burden larger than the total.

“Employers with B.C. payrolls between $500,000 and $1.5 million will have their rate phased in,” James told the legislature. “Employers with B.C. payrolls greater than $1.5 million will pay 1.95 per cent of their total B.C. remuneration.”

B.C. Green Party MLA Adam Olsen raised the issue Monday, describing how that lands on big employers in his constituency and citing the risk of chasing away major private sector manufacturers. He noted that Viking Air manufactures its famous Twin Otter and other aircraft in Alberta as well as the Saanich Peninsula where it is headquartered.

“If they left for Calgary it would be devastating,” Olsen said.

Another employer that has shared its concerns with Olsen is Schneider Electric, which employs 280 people in Central Saanich.

“They have a payroll of $20 million,” Olsen told the legislature. “In 2017 they paid $42,000 for their employees’ Medical Services Plan premiums, and in 2020 they will pay $390,000 through the employers’ health tax. Schneider’s local management will have to defend to head office why they should stay in the Saanich Peninsula or even in British Columbia.”

Olsen, whose party is keeping the NDP minority government in power, asked James what steps she was taking to make sure the payroll tax isn’t “the final straw” for B.C. employers.

James avoided the question with often-used talking points about B.C. having the lowest unemployment rate in the country and using the payroll tax revenue to invest in health care.

The exchange between Olsen and James can be viewed here.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Stolen truck involved in fatal collision on Highway 16

Wednesday’s two-vehicle crash killed one man, 23, and injured two others

Local company Northern Homecraft wins big at Northern B.C. awards

Vanderhoof company won in two categories for homes built in Fort St. James area

Column: the 4-H way of life

Local 4-H member Jacinta Meir on what being a member means to her

2018 marks 100 years since the end of World War I

Quesnel legion’s historian Doug Carey documents some of the atrocities of WWI

Conifex announces a temporary curtailment in operations at Fort St. James mill

Between 180 and 200 people will be affected by the curtailment for at least four weeks

VIDEO: People with diabetes meet their alert dogs

A diabetic alert dog is trained to detect low blood sugar in people who have Type 1 diabetes

Roy Clark, country singer, ‘Hee Haw’ star, has died

Guitar virtuoso died because of complications from pneumonia at home in Tulsa, Okla. He was 85.

Lack of funding, culture on campus biggest barriers for Indigenous students: report

Report based on nearly 300 responses found lack of support at post-secondary schools a big concern

Tinder sex assault suspect charged; additional alleged victims sought

Vincent Noseworthy of Alberta is accused of aggravated sexual assault, unlawful confinement and more

Drug-related deaths double for B.C. youth in care, advocate says

Teens say positive connections with adults key to recovery

Children’s strawberry-flavoured medicines recalled due to faulty safety cap

Three different acetaminophen syrups part of nationwide recall

Around the BCHL: Junior A cities to host World Junior tuneup games

Around the BCHL is a look at what’s happening in the league and around the junior A world.

International students hit hard by B.C. tuition fee hikes

Campaign seeks regulatory controls be imposed on post-secondary institutions

Trudeau pushes for more Saudi accountability in Khashoggi killing

Prime Minister Justin Trudeau said Canada is still seeking clear answers from Saudi Arabia about what happened to Jamal Khashoggi

Most Read