NEW CANADIAN HEALTH CARE FUNDING

To: Hon Kelvin Goertzen, Manitoba Minister of Health
To: Hon Brain Pallister, Premier of Manitoba
To: Hon Cameron Friesen, Manitoba Minister of Finance
Copy: Cliff Cullen MLA, Ian Wishart MLA, Jon Gerrard MLA

To: Canada Minister of Health, and Parliamentary Secretary
To: Canada Minister of Finance, and Parliamentary Secretary
Copy: Kevin Lamoureux MP

December 5, 2016

Proposed changes to the Canada Income Tax and Benefits Return:

1. Line 420: "Net federal tax"

2. Add a new Line 425: "All Provinces' and Territories' health care insurance tax" (having a distinct print colour different from the provincial tax line).

This dedicated health care tax collected is then entirely forwarded to the provinces, but distributed among the provinces in accordance with the relative health care needs of each, based principally on population and age distribution of the population in each province.

The health care tax rate would also vary with the age of the taxpayer. Older persons would pay a higher rate than younger persons, because their risk of needing health care services is higher, and because younger persons may have an accidental death, and thus not have the privilege of living to be an older person typically drawing more heavily upon government health care funding. The age of retirement and all older ages, could be set as the full rate level for the health care tax, with a simple linear tax rate reduction for younger persons. A 25 year old would thus pay 25/65 = 38% of the rate paid by a 65 year or older person.

A wealth factor should also be included, to ensure that wealthy persons who happen to have low income, are also required to pay health care tax similar to high income earners:

3. Line 428: "Provincial or territorial tax"

Benefits:

Federal government achieves political freedom from taxing responsibility for health care, and could implement this change unilaterally to expedite.

Provinces achieve greater collective control over total health care funding.

Provinces retain independence for health care expenditure decisions, achieving diversity of approach to enable learning from each other.

Canada achieves an automatic "Equalization" regarding the federal funding of health care.

Provinces and the public are assured of enduring federal tax collection and fair allocation, via a visible mechanism, ensuring secure long term funding.

Canadians achieve greater equity of funding for health care service needs in all provinces, automatically adjusting for relative demographic and income changes among provinces.

Grant Rigby

farmer and wine maker

Killarney, MB