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February 2017      

 

ACEC opposes taxation of employer sponsored health benefits on behalf of its members 

 

With the forthcoming budget expected to be tabled at the end of February, the government’s consideration of taxing employer-paid health and dental benefits was strongly opposed by many business associations. If enacted, this tax would have represented an increase by hundreds to thousands of dollars to the tax bill for many Canadians and jeopardized plans for many employers, making it impossible for many of them to continue offering coverage.

Considering the impact of this tax on our member firms, 70% of which have 50 employees or less, ACEC mobilized as soon as it learned of this possible new tax. On behalf of the consulting engineering sector, ACEC President & CEO John Gamble wrote to Minister Morneau explaining the impacts to our industry. The ACEC response was part of a larger coordinated response by business associations including the Canadian Chamber of Commerce. ACEC requested the Minister and his government maintain the current tax-free status on employer-provided health care benefits.  

During Question Period on February 1st, Prime Minister Justin Trudeau stated in the House of Commons his government would implement no new taxes on health and dental benefits for Canadians. ACEC and its partners thank the Prime Minister and Minister Morneau for their decision.