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

RCMP attribute Christina Lake operation to missing person

Upper Fraser Valley RCMP are involved.

Unregulated private land logging continues near Nelson at Cottonwood Lake

Sunshine Logging of Kaslo is cutting on private land in the area of Giveout Creek Road

115 new wildfires burning across B.C. due to 19,000 lightning strikes

More fires expected to start today, says BC Wildfire Service officials

Marijuana to be legal in Canada Oct. 17: Trudeau

Prime Minister made the announcement during question period in the House of Commons

Grand Forks may yet see Tim Hortons development

The City of Grand Forks heard plans on Monday at council.

B.C. BMX kid wows GoPro with homemade video

Eight-year-old Rex Johnson wins award for inventive video

Trump sends letter to Trudeau calling for increase in NATO defence spending

The letter comes as tensions between Canada and the United States have risen to a dramatic high

Horse put down, 1 person in hospital after hit by car in Lower Mainland

Accident along 132nd Avenue in Maple Ridge Friday afternoon

Electoral reform vote in B.C. includes $500,000 each for pro and con groups

A mail-in ballot referendum will take place Oct. 22 to Nov. 30, asking two questions on voting

83-year-old inmate dies at medium-security prison in Mission

Correctional Services Canada says Ralph Whitfield Morris died in custody

Blue Jays closer Roberto Osuna suspended for 75 games

23-year-old pitcher faces assault charge

Vancouver Canucks tab Quinn Hughes with No. 7 overall pick in NHL draft

University of Michigan standout was second defenceman picked in first round

Gun, drugs and cash seized in arrest of alleged B.C. fentanyl dealer

Vancouver Island man Brent Connors is facing nine charges in relation to investigation

Jogger spent two weeks in U.S. detention centre after accidentally crossing B.C. border

Cedella Roman, 19, crossed the border while out for a run

Most Read