January 2017 

The Federal Government is considering taxing your Health and Dental Benefit Plans

What’s at Stake

  • The federal government has confirmed that they are considering making employer health and dental plans a taxable benefit, possibly as soon as this year.
  • This would mean you would pay income and payroll taxes on the premiums your employer pays like it was income. This means hundreds or thousands of dollars added to your tax bill annually.
  • The current approach of encouraging employers to provide benefits is working as intended. 75% of working Canadians, and a total of 22 million Canadians, have access to care through benefits.
  • The federal government needs to hear from Canadians that taxing these essential health benefits is a bad idea, and the negative affect this could have on middle class Canadians and their families
  • These plans provide preventive care, prescription drugs, mental health services, dental care, and musculoskeletal care that is not covered by provincial plans.
  • Without proper health care benefits, more Canadians will enter the public system with greater health needs, driving up costs.

 

YOU COULD BE AT RISK OF LOSING YOUR BENEFITS

  • If benefits are taxed, many employers may choose to cancel their plans. When a similar tax was introduced in Quebec , 20% of employers dropped health benefits. For small firms, this was almost 50%. Others may reduce coverage.
  • For Canadians who lose coverage, getting equivalent coverage privately will cost much, much more.
  • The federal government needs to hear from you and other Canadians that taxing these essential health benefits is a bad idea.

 

WHAT CAN YOU DO

  • Visit http://donttaxmyhealthbenefits.ca to take action by sending your concerns to your Member of Parliament and the Minister of Finance