Ironically, adding an extra “EHT” fee to restaurant guest checks doesn’t produce pushback

Story: https://globalnews.ca/news/6428076/employer-health-tax-victoria-diner-fee/amp/?__twitter_impression=true

So the restaurant operator is adding an additional 1% to guest checks to offset the new employer health tax brought in by the NDP for 2020.

In the article, patrons don’t seem upset to pay this fee, the operator says that he’s not profiting from it either.

Lesson: folks don’t mind paying taxes for healthcare.

We’re done here.

My2bits

Update: something fishy about the story.

For the above mentioned restaurant to pay $50k in new EHT fees to the government, his payroll should be about $2.5 million.

Given an industry standard that payroll shouldn’t exceed 35% of your revenue, that $2.5 million would be payroll costs of a $7 million business.

If these things are true and the company is charging an extra 1% on guest checks, he’s generating $70k to pay a $50k cost.

But, as he says, there’s no profit here.

Ok.

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