Canada’s finance ministers decided to hit small business owners with another tax today, with an agreement in principle to expand the Canada Pension Plan (CPP), a devastating move for Canadian workers and the economy in general.
“It is tremendously disappointing to see that finance ministers are putting Canadian wages, hours and jobs in jeopardy and willfully moving to make an already shaky economy even worse,” said Canadian Federation of Independent Business president Dan Kelly. “Despite all the talk, it appears that jobs and the economy are not particularly high priorities for the governments that have signed off on this deal.”
Reports suggest Manitoba and Quebec have not agreed with the plan.
The agreement in principle will see a CPP hike phased in between 2019 and 2025. Contributions will increase to cover 33 per cent of income, up from 25 per cent under the current system. The earnings threshold will increase to $82,700 by 2025.
“What’s worse, it appears governments aren’t even bothering to consult Canadians on the move – even when an Angus Reid poll shows that less than 10 per cent are following the issue,” added Kelly.
Lone positive: Ontario Retirement Pension Plan is dead
“The only positive to come out of this process is that the ORPP – the CPP’s far uglier cousin – won’t come to fruition,” said Kelly. “It’s a shame that Ontario spent millions of dollars to effectively bully the smaller provinces to force their pension agenda.”
Impact on small businesses
- 71 per cent of small business owners oppose a mandatory premium hike, according to CFIB’s latest survey
- 67 say it would increase pressure to freeze or cut salaries
- 46 per cent say they would reduce investment in their business
- 35 per cent say it would force them to lay off employees
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.