Increasing the employer payroll tax rate reduces the average hourly wage of workers.
The new EHT will apply to businesses with annual payrolls of more than $500,000.
Last week, the BC government announced it was increasing Medical Service Plan (MSP) premiums by approximately six per cent in 2010 to help fund rapidly growing health care costs. The government also pledged to keep increasing taxes for British Columbians through annual increases in MSP premiums to match continuously increased health care spending.
While the government may claim it needs the extra revenue for health care, the reality is this tax increase will do nothing to improve health care for British Columbians, and in fact, its the wrong approach altogether.