Finance Minister Carole James takes questions in the B.C. legislature, Feb. 26, 2018. (Hansard TV)

B.C. NDP getting employer push-back on health care tax

Carole James says she’ll consult not-for-profits, municipalities

B.C. Finance Minister Carole James is on the defensive as opposition MLAs press her on a new health care payroll tax being implemented next year.

The new “employers health tax” takes effect in 2019 at 1.95 per cent for businesses with payroll of more than $1.5 million per year. Some businesses that already pay Medical Services Plan premiums on behalf of employees face the prospect of paying both MSP premiums and the new tax for a year, before the NDP government promises to eliminate MSP in 2020.

In question period at the B.C. legislature Monday, B.C. Liberal critics called the new tax “double dipping” and confronted James with examples of the impact. Surrey South MLA Stephanie Cadieux cited a non-profit organization in her constituency that is wondering what to cut with an extra $39,000 cost next year to pay the tax and the premiums.

Parksville-Qualicum MLA Michelle Stilwell said a car dealership in her constituency is looking at a $60,000 bill due to the changes unveiled in James’ inaugural budget last week.

In the legislature, James reminded B.C. Liberals that their government doubled MSP premiums with a series of increases that had it bringing in $2.6 billion by 2017. The NDP government followed through with a commitment to cut the rate by half at the start of this year, and 85 per cent of B.C. businesses won’t pay the new tax, she said.

RELATED: Payroll tax to replace medical premiums

Speaking to reporters later, James didn’t have much sympathy for businesses that will pay the tax but aren’t contributing to employee MSP costs.

“Certainly businesses who have not been contributing to medical services premiums will have a little bit more to have to pay for their employees, to contribute to health care in our province,” James said.

She held out hope for non-profits that are looking at extra costs. The new tax begins at a lower rate for organizations with payroll of more than $500,000, with the top rate paid by those at $1.5 million or higher.

“That’s why we give it a year for implementation, so we can have discussions with not-for-profits, with school districts, with municipalities, to determine how those resources are going to be allocated,” James said.

BC Budget 2018BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

PHOTOS: Secondhand painting and puzzle sale this weekend in Aldergrove

Starting Friday, the community is invited to the arts council to sift through hundreds of donations

Aldergrove bus company lands compressed natural gas buses in Victoria

New buses are hitting the road, lessening the transit fleet’s carbon footprint

One Langley team remains in girls basketball tournament

Only the Langley Lightning survived the quarter finals in their category

Snappy play full of zany fast-talkers and one liners aims to get audiences laughing

Langley’s Ellie King, founder of Royal Canadian Theatre Company, presents Screwball Comedy

Got potholes?

Langley Township is looking for tips on locating potholes as repair season gets into full swing

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Cheslatta Carrier Nation and Rio Tinto sign a historic agreement

Co-operation crucial to stem dropping Nechako Reservoir level

Hundreds of B.C. firefighters ‘climb the wall’ for BC Lung Association

The charity fundraiser saw participants climbing up 48 storeys

Stories of sexual assault at B.C. tree planting camps ‘shocking but not surprising:’ advocate

Contractors’ association is working with trainers to create respectful culture

Lawyer gets house arrest for possessing child porn

Maple Ridge resident gets nine-month term

Police renew appeal in help finding missing Maple Ridge woman after vehicle found

Ridge Meadows RCMP released a new photo showing the missing woman walking east on Dewdney Trunk Road

Notorious B.C. fugitive to be extradited from California on murder charge

Brandon Nathan Teixeira submitted to extradition during court proceedings Thursday in Sacramento

Canada prepared to monitor for community spread of COVID-19: Tam

The U.S. confirmed one case of the new coronavirus, or COVID-19, in California Thursday

Most Read