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

Free shuttle running at Kootenay Boundary Regional Hospital

Parking and main access have been ongoing challenges since KBRH construction began in October

Trail Rotary Carol Festival raises record amount

The annual Christmas performances were on stage at the Bailey on Dec. 12

Trail man busted for drugs, cash and weapon

The crime reduction unit and Trail RCMP executed the search warrant on Thursday

Sham sex romp prompts call to Trail police

This case is one of many from the weekend that Sgt. Mike Wicentowich reported on Monday

Snowfall advisory for West Kootenay, Highway 3

Environment Canada issued a travel alert early Monday for Paulson Summit to Kootenay Pass

Story of the Year: Deadly Humboldt Broncos bus crash

The Canadian Press annual survey of newsrooms across the country saw 53 out of 129 editors cast their votes for the Humboldt Broncos bus crash.

Canadians to get low-cost data-only mobile phone plans within 90 days: CRTC

Bell, Rogers and Telus will provide plans as cheap as 250MB for $15

Man rescued from sinking boat off the coast of Vancouver Island

Mayday call came into Coast Guard saying vessel had taken on water, BC Ferries dispatched to scene

Four per cent of Canadian women report being sexually harassed in the workplace

One per cent of men report being sexually harassed in the workplace

Stricter drunk driving laws to take effect across Canada today

It gives police officers the right to ask for a breath sample from any driver they lawfully stop

The prize was wrong: Man turns down trip to Manitoba

A New Hampshire man won the prize on “The Price is Right”, but turned it down because the taxes were too high

Publication ban on name of girl killed in Abbotsford school lifted

Reimer’s family had supported an application by Black Press to lift ban

B.C. securities regulator probes ‘most expansive’ alleged trading scheme in its history

Liht Cannabis Corp states it’s doing internal investigation, welcomes BC Securities Commission probe

Air passenger rights: 6 things about what the Liberals are offering

For 3- to 6-hour delays, compensation is $400. Between 6 and 9 hours, $700. Over 9 hours is $1,000

Most Read