While a new report shows that introducing a tax on employer-paid health benefits would add $3.8 billion to the federal government’s coffers in the 2018 tax year, it would also dramatically raise health-care costs for many Canadians, according to the Canadian Life and Health Insurance Association.
Tasked with measuring the federal fiscal impact of including employer-paid health benefits in the taxable income of employees, the Parliamentary Budget Officer concluded in its report the measure would increase personal income tax receipts by $2.8 billion, raise Canada Pension Plan contributions by $532 million and decrease transfer payments to individuals by $441 million.
