Response to the Proposed Taxation of Employer Sponsored Health Benefits
What's happening?
The federal government is considering taxing employer-paid health and dental benefits.
What does this mean?
Along with adding hundreds or thousands of dollars to every Canadian's tax bills, we feel that this proposal could cause many employers to reconsider how they currently offer benefits to their staff and significantly reduce coverage or even change the plans to make participation optional. As an employer concerned about rising claims costs, this will cause Canadians to have a larger out-of-pocket expense and have a long term negative effect on benefit plans in this country. If the federal government goes ahead with taxing these insurance plans across Canada, it would have enormous implications for the health and wellbeing of the majority of Canadians and for the Canadian health care system as a whole as it would result in putting more pressure on already stressed public healthcare systems.
What can you do?
The federal government plans to release the Federal Budget by the end of February, 2017 so they need to hear from you and your employees NOW that taxing these essential health and dental benefits will have negative consequences on the overall health of all Canadians, particularly those in lower and middle income brackets.  
Please tell your local MPP or Federal MP that this move would harm the people the federal government promised to champion... the middle class. You can send a message by going to the following link:
You can also share this important message on social media using one of the following hashtags:
#donttaxmyhealthbenefits | #santesansimposition
What more do we know?
  • Twenty-four million Canadians have care because of current benefit plans.
  • The present employer-sponsored health and dental care tax exemption encourages employers to offer benefit plans to employees for essential health services that have been excluded from Canada's public health care system.
  • Healthcare Spending Accounts (HSA) could become irrelevant if they are taxable.
  • Currently, tax free employee benefit programs are viewed as an important part of an employees' total compensation package and this new tax could make it more difficult to attract and retain new human resource talent.
  • When Quebec introduced a similar tax, 20% of employers dropped health and dental benefits for employees.
  • Studies suggest the removal of this tax benefit across the board could result in a decrease of 50% of small firms that will be able to offer health benefits.
  • According to a recent IPSOS poll:
    • 70% of Canadians are opposed to this plan,
    • 48% said they would prefer to take cash over health benefits if they were taxed at the same rate, and;
    • 84% would end up delaying or forgoing treatment or medication if they didn't have coverage. 
  • One proposal to counter the effects of the imposed taxes, as suggested in a report last year from the Advisory Panel on Healthcare Innovation, is to introduce a new tax credit - Refundable Health Tax Credit (RHTC).
  • The RHTC would provide the following maximum tax credits:
    • Single (income less than $44,000) - $750
    • Family (income less than $89,000) - $1,500
Where can you read more about this?

National Post: Federal Liberals eye tax on private health and dental plans, a move that would take in about $2.9B
Financial Post: Why would Ottawa even consider a tax that won't increase revenue, but hurt middle-class Canadians?
Yahoo! Finance: Health Care Providers Urge Federal Government to Not Tax Health Benefit Plans
Benefits Canada: Have your say: Should the feds tax employer-paid health-care benefits?
Health Canada: UNLEASHING INNOVATION: Excellent Healthcare for Canada: Report of the Advisory Panel on Healthcare Innovation - go to page 125

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Green Benefits Group Inc. · 3425 Harvester Road · Unit 110 · Burlington, ON L7N3N1 · Canada

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