TORONTO, Nov. 7, 2011 /CNW/ - In advance of the Employment Insurance
(EI) rate announcement later this month, over 15,000 petitions from
members of the Canadian Federation of Independent Business (CFIB) were
sent to federal MPs expressing their concern with the government's plan
to increase EI premiums by 10 cents for employees and 14 cents for
employers per $100 in payroll in 2012. "Given the ongoing economic
uncertainty, now is not the time to be increasing EI premiums as it may
end up deterring employers from hiring new employees," said CFIB senior
vice-president of legislative affairs, Dan Kelly.
"Over 68 per cent of CFIB's small business members said the most
effective tax measure during a period of economic uncertainty is a
freeze on EI premiums. A rate hike at this time will serve only to set
back economic recovery and job creation. With Canada losing 54,000 full
time jobs in the last month according to Statistics Canada data, the
government should not be making it worse by increasing the cost of
hiring," said Kelly.
Furthermore, an increase in EI premiums in 2012 would be unfair, given
employers and employees have overpaid more than $50 billion dollars in
the EI account over the past 15 years. "We are urging the federal
government to consider the consequences of EI premium rate increases on
small businesses and employees," stated Kelly.
In addition, CFIB is calling on government to extend and expand the
benefits of the EI hiring tax credit into 2012, thereby providing small
businesses with an EI premium holiday for any increase in their payroll
from one year to the next. "We believe that these changes to the EI
hiring tax credit would assist even more businesses with their current
and future hiring plans," concluded Kelly.
As Canada's largest association of small- and medium-sized businesses,
CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes
direction from more than 108,000 members in every sector nationwide,
giving independent business a strong and influential voice at all
levels of government and helping to grow the economy.
SOURCE CANADIAN FEDERATION OF INDEPENDENT BUSINESS
For further information:
or to arrange an interview, contact Gisele Lumsden or Meghan Carrington at 416 222-8022 or via email at firstname.lastname@example.org