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

Heavy rain causes flooding in the Central Okanagan

Portion of lower Glenrosa Road closed due to flooding

Feature Friday: Is the sky the limit for downtown Kelowna construction?

City building up, not out, as high rise living becomes more popular

Wild weather leads to power outages

Thousands woke up in the dark this morning, as Fortis crews scrambled to get power up and running.

CNIB promises to respond to criticism

Blind community advocates call for inclusion initiatives

Vancouver Aquarium’s resident octopus released into ocean

Staff let the Giant Pacific octopus go into the waters near Bowen Island so she can reproduce

Marijuana edibles won’t be regulated in 2018

Health Canada says edible regulation is still more than a year away

Letter: Speculation tax outrage ignores the most vulnerable

Kelowna letter-writer says it’s the rich and development crowd who are against the new tax

Rainstorm causes road flooding in South Okanagan

Flood assessments conducted in Okanagan Falls and Naramata

Fat joke on B.C. school’s sign not appropriate, woman says

Surrey mother says weight issues are no laughing matter

McMaster out, Bolton in as Trump’s national security adviser

President Donald is replacing National security adviser H.R. McMaster with John Bolton

Two killed, dozen hurt in French supermarket hostage-taking

French counterterrorism prosecutors are taking charge of the investigation into the shooting of a police officer in southern France

Canadian women move to No. 4 in FIFA world rankings

Canadian women match all-time high, move back to No. 4 in FIFA world rankings

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Most Read