Liberals pounce on NDP’s mixed MSP messages – The Province

B.C. NDP Leader John Horgan refused again Friday to say how his party would pay for its promised $1.7 billion elimination of MSP premiums, amid renewed attacks that hes simply delaying announcing the inevitable tax hike needed to cover the costs until after the election.

Horgan sidestepped questions about why two of his candidates have publicly indicated the Medical Services Plan premiums would be rolled into income tax should the NDP win the May 9 election, potentially resulting in higher income taxes for some B.C. residents.

Instead, he insisted hed hire an independent panel to look at ways to eliminate the MSP premiums which are set to bring in $1.7 billion in revenue next year by the end of his first term in office.

Im not prepared to speculate on what the panel will come up with because that prejudges the work, Horgan told reporters while campaigning in Vancouver.

You dont put people in place, and ask them for their advice, and prejudge it. So Im going to hear what they have to say. The bottom line I have, is they protect public services and we ensure low- and middle-income people are protected.

The B.C. Liberals pounced on the apparent disconnect, highlighting how NDP candidates Carole James and Gary Holman have both said in recent days that MSP would be moved into the progressive tax system, otherwise known as income tax.

What Mr. Horgan is trying to do is evade the issue by punting it onto a panel to be dealt with later, so people dont notice they have to pay more taxes in the future, said Andrew Wilkinson, the Liberal candidate for Vancouver-Quilchena. People need to know if they are facing that bill or not.

James has said that her party plans to roll premiums into income tax on a progressive basis, with the highest earners paying the highest premiums.

The key principle is that it looks at a progressive approach, she said. Right now with MSP, whether you make $1 million or $35,000, your families pay the same amount of MSP. Thats the principle that will be gone.

She also pointed out that her party expects at least $77 million in savings from eliminating the MSP fee collection system.

James said part of the NDPs consultation will look at how other provinces collect their health care premiums. In Ontarios income tax-based system, for example, people who earn less than $20,000 annually pay nothing additional. That scales up to $300 for incomes over $25,000 and tops out at $900 for anyone with taxable earnings over $200,600.

The Liberals, too, have been criticized for not explaining their MSP promises. The party said in February it would cut rates by 50 per cent for many users in 2018, and eliminate MSP entirely in the future when the economy allows.

In an interview Thursday, the Liberals Mike de Jong said any further MSP cuts would be unlikely under a Liberal government before the end of the next term.

If the economy grows at precisely the rate we forecast it to grow, we wouldnt be able to do anything else, de Jong said.

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Liberals pounce on NDP's mixed MSP messages - The Province

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