Quote:
Originally Posted by djmk
your employer paying for your MSP is a taxable benefit. Therefore, you get taxed more for having your employer pay the taxes.
Besides, this is not a tax on income. this is a tax on expense. And it's expected to raise 2.5 Billion more over the next 3 years than the premiums did.
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Taxable benefit - yes. So, I will get a net increase in pay. Woohoo! My employer's taxable income will decrease.
Not a tax on income, correct. It's a payroll tax like the employer's portion of EI, CPP, etc.
Not sure where you are getting your numbers on the revenue increase. MSP payroll tax is expected to generate $463M in 2018/9 and $1850M in 2019/20 when it is fully phased in. I expect it to increase with GDP levels from there.
In 2017/18, the last full year of MSP premiums, the revenue generated was $2264M. 2018/9, expected revenue is $1361, then $1033 in 2019/20, and 0 from then on.
All of this is available in the main Budget 2018 document. Remember, MSP was cut in half as of Jan 1, 2018 without an immediate revenue replacement.