A number of organizations, including the CFIB, are calling on the federal government to scrap a potential tax on health and dental plans.
Vice President of National Affairs, Monique Moreau. says they have heard the federal government wants to add the costs of a benefit plan for each employee to their salary when tax season comes around.
For example, Moreau says if an employee was making 40-thousand dollars a year, and their employer had a benefit plan that cost 18-hundred dollars for each employee, the employee would see their salary on paper at 41 thousand, 8-hundred a year, which the employee would then be taxed on.
Moreau says she doesn’t think a sweeping tax is fair for low to middle-class employees who aren’t getting the same benefits as higher-paid employees.
She says a similar tax was implemented in Quebec, and the uptake in benefit plans was reduced significantly by small employers, so she thinks a national tax would have positive effect across Canada.
NDP MP for Saskatoon West, Sheri Benson, says the tax implemented by Quebec in 1993 resulted in a 20 per cent reduction in the number of employers offering health plans for employees.
Moreau says dentists, optometrists, and physical therapy services could be affected as well.