Federal Government looking to tax Employer Health Benefit plans: Canadian Chamber of Commerce Campaign

· by Huzaifa Saeed

The federal government is considering taxing employer-paid health and dental benefits within the next budget. In addition to hundreds or thousands of dollars that would be added to Canadians’ tax bills, it also means that many employers will no longer provide coverage to employees.

The non-taxation of benefits, then, is as much a subsidy to employers as it is to employees, allowing companies to net pay their workers more than they could otherwise. Some of our members cite their competitive benefit plans as an important incentive to attract and retain workers.

When a similar tax was introduced in Quebec, 20% of employers were tracked to have dropped health and dental benefits for employees. Studies suggest the removal of this tax benefit across the board could result in a decrease of 50% of small firms who will be able to offer health benefits. Therefore, should the proposal be pushed through, we will then be strongly advocating towards on a follow-up recommendation that the income prioritized towards supporting uninsured workers.

Please tell your MPs that this move would harm the people the federal government promised to champion; the middle class.  Encourage your members to do so as well.

In collaboration with the Canadian Chamber of Commerce network, we’ve provided a template here for you to send to the Minister of Finance and your local MP(s) whose name(s) and e-mails are available here by entering your postal code.

For more information please contact: Huzaifa Saeed | Policy & Research Analyst | Hamilton Chamber of Commerce | t: 905-522-1151 ext: 230 | e: h.saeed@hamiltonchamber.ca