LETTERS: Columnist Tom Fletcher forgets

Tom forgot to mention that these premiums are a taxable benefit under the Canada income tax act

Tom quotes, “Also note that politicians and public sector employees have never paid MSP premiums.” True, but Tom forgot to mention that these premiums are a taxable benefit under the Canada income tax act. This means that these premiums paid must be added to the gross pay on the politician and public sector worker pay cheques so that income tax, Canada pension, and unemployment insurance statutory deductions are made on these amounts. These amounts will not add up to the exact amount that has been paid on their behalf, but with the extra higher deduction totals will make the net payroll clearing the bank account lower. Always two sides to the ledger. In summary, increases in MSP premiums makes net payroll total lower with the increase.

Joe Sawchuk
Duncan, B.C.

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