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Ottawa considering taxing health benefits: report

(Courtesy cma.ca)
Summary

The move could bring in $3 billion for federal coffers

The Tories feel this could hurt businesses and the working poor

OTTAWA, ON .(NEWS 1130) – The federal government is on the defensive as the official opposition is calling on Trudeau and company to back away from possible plans to tax the health benefits of Canadians.

There are reports the finance department is reviewing an option to make health and dental coverage from the workplace, a taxable benefit. The move could bring the government $3 billion but may also be offset by expanding a health expense tax credit.

Conservative MP Ed Fast says this idea needs to be scrapped now. “And this is, again, counterproductive for our economy. It’s very hurtful to Canadian families, to the working poor that may have benefits like this and are going to see another tax levied against them.”

The Parliamentary Secretary to Finance didn’t deny the government is looking at the option, but says the department is reviewing all tax expenditures. “No decision has been made, so there should be no concern at this time. We are going to look at all tax credits to make sure they serve the intent for which they were created,” says Francois-Philippe Champagne.

The Tories add the added taxes will also hurt companies and businesses.