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

Penticton Vees erase two-goal deficit to defeat Trail

The Vees take Game 1 of the second round of the BCHL playoffs

Researcher’s quest for information on Trail airman garners response

Aircraftman 1st Class John Dunlop McVie was killed in action over Germany in 1944

Greater Trail police officer involved in Highway 3B crash

The accident happened Wednesday night at the Waneta Plaza lights

No dedicated parking for the Riverfront Centre

Trail council opted to retain long term parking in the lot across the street from the new complex

Needles killer frightened many in our town: BC author

Roy Bugera disrupted life in a quiet Vancouver Island village before moving to Arrow Lakes

VIDEO: B.C. Mounties reunite veteran with lost military medals

RCMP say Zora Singh Tatla, who served in the army in India for 28 years, is the righful owner

4 facts to ring in St. Patrick’s Day

What do you really know about the Irish celebration?

Experts urging caution as rabbits die by the hundreds in B.C. city

Province of B.C. confirms more positive tests for rabbit haemorrhagic disease

Federal government seeks public feedback on pedestrian safety

What safety measures do you think need to improved for pedestrians and cyclists?

Search continues for 10-year-old Montreal boy missing since Monday

Montreal police said they are exploring every possibility in search for Ariel Jeffrey Kouakou

Airline passenger-rights bill claws back protections for travellers: Advocate

Bill C-49 would double tarmac delays, scrap compensation for flights affected by mechanical failures

Canadian research vessel to explore 19th Century shipwrecks

Commissioned this week in Victoria, the RV David Thompson is Parks Canada’s newest vessel

VIDEO: ‘New wave’ of anti-pipeline protests return to Trans Mountain facility

About 100 demonstrators with Protect the Inlet marched to the Burnaby terminal Saturday

B.C. man to plead guilty in connection with hit-and-run that killed teen

Jason Gourlay charged with failure to stop at the scene of accident, attempting to obstruct justice

Most Read