PEI, Ontario proposals just variations on a misguided theme
TORONTO, Nov. 1, 2013 /CNW/ - As provincial finance ministers gather in
Toronto today, Canada's job creators are telling them to look for
alternatives to mandatory increases in Canada Pension Plan/Quebec
Pension Plan premiums on employers and their employees.
Prior to the meeting, all received a letter from the Canadian Federation
of Independent Business (CFIB), firmly rejecting recent proposals by
Ontario and Prince Edward Island, citing data from small business
owners about the negative impact of hiking payroll taxes on jobs and
"It doesn't matter how you dress it up, a mandatory pension increase
hurts small businesses, their employees, and the economy," said CFIB
president Dan Kelly. "We've seen various proposals to increase CPP and
QPP, and Canadian entrepreneurs do not support any of them. The latest
ideas from PEI and Ontario are just variations on a misguided theme."
Four out of five respondents to a recent CFIB member survey in Ontario
rejected the idea of a separate mandatory Ontario Pension Plan.
Furthermore, 65% said such a move would force them to freeze or cut
salaries, and 42% said they would have to reduce staff. Meanwhile, CFIB
analysis of the model being proposed by PEI Finance Minister Wes
Sheridan for a mandatory CPP/QPP premium suggests a hike would result
in loss of 500,000 person years of employment and a 1% drop in wages.
"Even polling done by public sector unions tells us that a majority of
Canadians who are struggling to save for their retirement simply can't
afford to," added Kelly. "Adding a higher payroll tax deduction to
their paycheque is not going to help them."
CFIB has asked for a meeting with provincial finance ministers to
discuss alternative options for helping Canadians to save for their
retirement. For more information, please visit CFIB's All signs point to trouble campaign page.
CFIB is Canada's largest association of small and medium-sized
businesses with 109,000 members across every sector and region.
SOURCE: Canadian Federation of Independent Business (CFIB)
For further information:
To arrange an interview with Dan Kelly, please contact Gisele Lumsden at 416-222-8022 or by email at firstname.lastname@example.org.