VANCOUVER – A couple of tax increases can make life more expensive in the new year.
On Thursday, the Canadian taxpayers' federation issued a statement warn of tax increases, including the health care tax for the employer, which would eliminate premiums for medical services plans at BC. starting from January 1, 2019.
"The employer's health care tax will have cascading effects throughout the province, placing a chill on new jobs and wages, and risking a property tax increase from Port Alberni to Prince George," said Chris Simms, BC. director of the federation. "This is a huge download of Victorian taxes on the back of job creators and municipalities in the province."
But not everyone agrees that the new tax will make life difficult.
The provincial government has said eliminating premiums for medical services plans will result in a net tax cut of around $ 800 million per year for British Columbians. Families could save as much as $ 1800, and individuals could save up to $ 900 each year.
"While other provinces have abolished SME premiums, the former government has doubled and has taken over these unfair taxes on middle-class individuals, families, and the elderly. Replacement of premiums for SMEs with ETH follows the lead of other provinces and is fairly and progressive approach, "said Finance Minister Carroll James in July.
But the Federation of Taxpayers said the new tax would be a "double reduction in taxation" by B.C. employers.
The organization predicted that many municipalities could see an increase in their budgets because they have a payroll of more than $ 500,000, which could lead to a "budget cut or property tax hike".
The city of Sari faces an increase in the cost of $ 4.7 million to pay the health care tax, the federation said.
The Employer's Health Tax Law sets a tax of 1.95 percent on the payroll of businesses with revenues over $ 500,000. The government said less than five percent of enterprises in BC will pay the entire tax. Most of the small businesses will be protected with a $ 500,000 exemption that will gradually gradually, while salaries for charities and non-profit organizations will be protected by an exemption of $ 1.5 million.
Aside from employers' taxes, the federation also pointed to other taxes expected to increase in 2019, such as school tax. Households in places such as West Vancouver and North Vancouver with homes worth more than $ 3 million are "scoring", according to the federation.
Tax increases will continue throughout the year, with a carbon tax that jumps from $ 35 per ton to $ 40 per tonne on April 1, 2019. The increase will reach 8.89 cents per liter of petrol purchased at BC.
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