Taxation of employer-provided health-benefits - Revised June 1, 2018

Using Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M), the Parliamentary Budget Officer (PBO) estimated the federal fiscal impact of including the value employer-paid health plans in the taxable income of employees. The PBO determined that this measure would increase federal personal income tax receipts by $2.8 billion, increase CPP contributions by $532 million and decrease transfer payments to individuals by $441 million. All these amount to an increase of $3.8 billion of the federal government’s net balance.