TORONTO, June 11 /CNW/ - The Canadian Federation of Independent Business (CFIB) is calling recent letters from Federal Finance Minister Jim Flaherty and Ontario Finance Minister Dwight Duncan recommending increases to the Canada Pension Plan (CPP) benefits outrageous. This follows a letter sent by CFIB to all finance ministers earlier this week which strenuously opposed the union call to double CPP.
"Small businesses in Canada are already bracing themselves for maximum allowable increases in Employment Insurance (EI) premiums for the next four years," noted CFIB president Catherine Swift. This is on top of potential hikes in workers compensation premiums in many jurisdictions and significant increases in minimum wages across Canada. "Coming out of a recession, these huge increases in mandatory payroll taxes will take a big bite out of the payroll budgets of virtually every business in Canada. Shouldn't ministers of finance be just as concerned about job creation as they are about retirement income?" Swift asked.
CFIB's report on the planned hikes to Employment Insurance premiums shows that the tax hike could cost the economy 170,000 jobs. Swift added, "how many more jobs will be lost by raising CPP for many, many years?"
With huge unfunded public sector pension liabilities facing most governments, Canadian taxpayers are being asked to continue to pay for excessive civil servant retirement schemes while at the same time scrimping to find more money for CPP and EI payroll tax hikes. "Canadians should not be asked for one more cent in payroll taxes until governments get the public sector pensions in order," Swift noted. "The number one solution to increasing retirement savings is to leave a few more dollars in the pockets of taxpayers each month."
As a majority of provinces is needed to make any changes to CPP, CFIB is calling on other ministers of finance to reject this plan and consider other ways of increasing retirement savings options for Canadians. CFIB has recommended a variety of other solutions which can be found in a June 9th letter to minister on its website at www.cfib.ca.
SOURCE Canadian Federation of Independent Business
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