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 the economy.
"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 [email protected].