Old health tax out, new PQ "health contribution" in
The Marois government is backtracking on a promise to get rid of the $200 health tax imposed by the previous Liberal government.
Not only will we have to pay for it this year but most of us will have to pay it one way or another starting next year .
The PQ is calling it the new health contribution. It'll replace the Liberals' old health tax. But only as of next year. Everyone is stuck paying the $200 for this year.
Starting next year, those earning $18,000 or less won't have to pay. Anything over that, the new tax will go as high as $1000 depending on what you earn. Most of us, those earning between $20,000 and $130,000, will pay $100 - $200.
To make up the difference, the Quebec government is hiking the income tax rate for people who earn $100,000, at 1.75%. It also won't increase the capital gains tax or reduce a tax credit on dividends.
Finance Minister Nicolas Marceau made no bones about it: being in a minority government forced their hand.
"The position we announce today results from an appropriate understanding of the result of September the 4th," Marceau told a news conference.
"I'm perfectly alright with what we're making public today," Marceau said.
"I think it responds to many of the objections of the opposition. Does it respond to all their objections? I'm not sure about that."
Marceau says the opposition will have to think carefully about their next move, when over three million Quebeckers will be paying less than the current 200 dollars.
Photo: Quebec National Assembly