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

Hope stylist holds hair-athon for a good cause

Shayla Ross donating all proceeds of $10 cuts to the food bank

Hope arena turns green for hockey tourney

A second attempt at green ice, with proper ice paint, after food colouring experiment last year

Project Hope celebrates first birthday

Also: lego-mania comes to town, lineup of all-female comedians entertains Friday

New Hope clothing store loses $6,700 after early morning break-in

Broke Buckle Clothing Company owners hold “dirty deeds” sale after loss

Former Fraser-Cascade teacher disciplined for asking student if she was ‘horny’

Boston Bar teacher repeatedly swore, raised his voice and made lewd comments

Hope stylist holds hair-athon for a good cause

Shayla Ross donating all proceeds of $10 cuts to the food bank

VIDEO: ‘Big time disappointment’ as Vancouver Giants fall to undermanned Kelowna Rockets

Head coach Jason McKee very unhappy with effort in Giants’ regular season home finale

Salmon Arm community cheers on Natalie Wilkie as she wins first gold medal

Local skier tops the podium in 7.5km race at the PyeongChang Paralympics

Experts: Society has a role in trying to prevent domestic violence

Experts are speaking out following the murder of a woman and her son in Ontario

Northern lights chasers in Canada discover new type named ‘Steve’

Phenomenon linked to a powerful current created by charged particles in Earth’s upper atmosphere

Progress on fixing Phoenix pay system backlog could be short-lived: Ottawa

Feds have said they won’t try to recover money overpaid until all outstanding issues are fixed

Delta South MLA calls high-speed rail study a ‘crazy announcement’

‘You’d be better off to move to Seattle’ than to travel to Vancouver from the Lower Mainland

Washington state backs B.C. in pipeline dispute

Governor Jay Inslee says he is ‘allied’ with the province on Trans Mountain expansion projection

SAY WHAT? Readers weigh in on high-speed rail to U.S.

B.C. to contribute $300,000 to a million-dollar business study on the proposed project

Most Read