The federal government could net $2.9 billion dollars from an initiative like this, but compared to employer-sponsored plans that save the Canadian health care system $32.2 billion in preventative treatments, it doesn’t appear to be a fiscally sound trade-off.
Quebec residents are already paying provincial taxes on these benefits and an added federal tax would have disadvantaged excessively families living in Quebec.
Taxing health care benefits would impact 13.5 million Canadians, and would cost Canadian families – the Conference Board of Canada estimates at least an additional $1,000 per family per year, or nearly twice that for Quebec residents. This tax would likely result in fewer employers willing to offer these benefits, and would also make access to necessary and preventative health care unaffordable for many lower income and middle-class Canadians. This preventative care helps to save publicly funded health care systems by addressing and preventing health care issues early, keeping Canadians and their families healthy and productive.