Monday , November 18 2019
Home / canada / Outside with MSP, in with employer health tax

Outside with MSP, in with employer health tax



VANCOUVER – Several tax upgrades can make life more expensive in the new year.

On Thursday, the Canadian Federation of Taxpayers issued a statement warning of tax increases, including the employer's health care tax, which would eliminate insurance contributions to the B.C. starting January 1, 2019.

“The health tax for employers will have a cascading effect across the province, causing new employees to cool down and pay increases, as well as the risk of an increase in property taxes from Port Alberni to Prince George,” said Chris Sims, B.S. director of federation. "This is a huge tax load from Victoria on the backs of job creators and municipalities across the province."

But not everyone agrees that the new tax will complicate life.

The provincial government has said that abolishing premiums for the Medical Plan will result in a net tax cut for British Colombians of about $ 800 million a year. Families can save up to $ 1,800, and individuals – up to $ 900 a year.

“While in other provinces the MSP surcharges were abolished, the former government doubled and loaded these unfair charges on middle-class people, families and the elderly. Replacing the MSP awards with EHT follows the lead of other provinces and is a fairer and more progressive approach, ”Finance Minister Carol James said in July.

But the federation of taxpayers said that the new tax would be a “double fall in taxation” on B.S. employers.

The organization predicted that many municipalities may see an increase in their budgets, because their wages are more than $ 500,000, which in turn may lead to "budget cuts or higher property taxes."

The city of Surrey is facing an increase in spending by $ 4.7 million. The United States to pay the health tax, according to the Federation.

The Law on Health Tax for Employers establishes a tax of 1.95 percent on the wage fund of enterprises with incomes of more than 500,000 US dollars. The government stated that less than five percent of the enterprises in B.C. will pay full tax. Most small businesses will be protected by benefits in the amount of $ 500,000, which will gradually cease, while the payroll of charities and non-profit organizations will be insured by an exception of $ 1.5 million.

In addition to employers' health tax, the federation also pointed to other taxes that are expected to increase in 2019, such as school tax. According to the federation, homeowners in places like West Vancouver and North Vancouver, with homes worth more than $ 3 million, are “slaughtered.”

Tax increases will continue throughout the year, with the carbon tax from April 1, 2019 jumped from $ 35 to $ 40 per ton. The increase will be 8.89 cents per liter of gasoline purchased in B.C.

© Copyright Times Colonist


Source link