The Liberal government is considering taxing private health and dental plans, in a measure that would raise about $2.9 billion, sources say.
As many as 13.5 million Canadians have lower tax bills because health and dental benefits are not treated as taxable outside Quebec.
Dan Lauzon, a spokesman for Finance Minister Bill Morneau, said no decisions have been taken and that any moves would not be made in isolation. The employee-sponsored health care tax exemption is being scrutinized as part of a sweeping review of 150 tax credits worth about $100 billion a year in foregone federal revenue.
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