The National Post recently reported that the federal government is considering taxing employer-provided health and dental benefits as a way to obtain additional revenue.
What potential impact does a tax like this have on employers and employees?
- Employees will be taxed for health and dental benefits
- Employers and employees will pay more in CPP and EI
- As a result of increased costs, employers and employees may cancel their health plans, resulting in a less healthy workforce.
This change also stands to have a major impact on local insurance providers and businesses who provide health services.
The Canadian Chamber has drafted a template letter which outlines concerns related to this proposed tax. This letter has also been shared by the Atlantic Chamber of Commence. We encourage you to send this letter to your MP if you wish oppose a tax on employer-paid health benefits. It should also be noted that Malpeque MP Wayne Easter is the chair of the House of Commons Standing Committee on Finance if you wish to write him as well.
A website has also been established that gives you the opportunity to submit a letter to an MP electronically.