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

Chilliwack student turns school work into business

Dylan Murdy has turned his grade 12 entrepreneurship project into an actual business

Police seeking public assistance in locating Popkum man

The RCMP are asking for the public’s help in locating a missing… Continue reading

Home sales finally cooling in Chilliwack

But locally softening in market compares to big drops to the west

Seabird completes renovation of family home

Four-unit home ‘a place for families to heal, grow and learn’

VIDEO: Agassiz Community Gardens turns 15

Growing is good for personal and community health

Polygamous wife appeals conviction in B.C. child bride case

Emily Blackmore was found guilty of taking her underage daughter to U.S. to marry church leader

Sample craft beer, cider, mead, vodka at Langley Libations Tour

Four artisan beverage businesses in Langley take part in Sunday tour

Police watchdog called to Kelowna after car destroyed in crash

A motor vehicle incident has closed Highway 33 in both directions

BC SPCA receives 400 reports of dogs in hot cars so far this year

Society is again urging people to leave their pets at home if they can’t keep them safe in the heat

‘My friends aren’t going to sell me stuff to hurt me’: South Surrey overdose victim

SPECIAL REPORT: First in a two-part series on Peninsula families losing a loved one to fentanyl

8 B.C. communities rank as the friendliest in Canada

Eight B.C. communities can claim they are the friendliest in the country.

Canucks host all-inclusive birthday party for B.C. kids with autism

Such invitations are rare for some kids with autism, and one B.C. family knows the feeling

Heat records broken across B.C. as weather warning lifts

Thirteen records broken across B.C. on Tuesday

Most Read