Federal Government eyes taxing private health benefits

Nearly five decades ago [1969] ,the Federal Government created a public monopoly by effectively prohibiting private hospital and physician services.

The result: [i] Canada’s health care system, i.e., Medicare, is a subpar performer; all countries superior to Canada have patient choice for private hospital and physician services [ii] no other country has copied Medicare — and the world’s judgment debunks the mythology about the wonderfulness of Medicare! Canadian patients suffer more and Canadian taxpayers pay more.

In 1971, acclaimed American novelist John Irving published Rabbit Redeux.

On April 1, 1984, the Federal Government of Prime Minster Pierre-Elliot Trudeau [father] passed the Canada Health Act. It put cement boots on hospital and physician services from the private sector.

In 2017, the Federal Government of Prime Minister Justin Trudeau [son] is considering “Canada Health Act Redeux” with another attack on the private health care sector by threatening to tax health and dental benefits. Up for grabs is $2.9 billion in tax dollars in the first year.

As John Ivison reported in the National Post January 29, 2017, millions of Canadians will pay at least $1,000 more if Ottawa taxes health and dental plans.  http://bit.ly/2jk7JLT

It would impact 13.5 million Canadians. Many are public-sector union members, so it will be interesting to see the positions taken by the Alberta NDP and Ontario Liberal governments. Public sector unions have been among their elite supporters.

A Conference Board of Canada analysis, commissioned by the Canadian Dental Association, suggests “middle-income earners across the country will pay an additional $1,000 [or more depending on the province] in additional federal and provincial income tax.

For Ontario residents, the conference board study suggests:

  • An extra $1,167 in taxes for “some earning $45,000 in full-time employment” and “with family coverage.”
  • An extra $1,043 in taxes for those earning $60,000.
  • An extra $1,277 in taxes for those earning $90,000.

According to Ivison: “Obviously, if two wage-earners in the same family have coverage, that amount will double.” The Liberals “have been at pains to point out this would not be a tax  grab.”


Canada’s government-run health care system – Medicare -- is a monopoly that prohibits private hospital and private physician care. Medicare is a subpar performer, ranking 10th among 11 advanced countries. Canadians deserve much better! Patients deserve timely access to quality care and choice of hospitals and physicians. Taxpayers deserve much more value for their tax dollars.

Join Us. Support Us.