Why do employers oppose the Ontario Retirement Pension Plan?

Toronto, January 29 (CINEWS): The Canadian Taxpayers Federation (CTF) is calling on Kathleen Wynne to halt plans for her Ontario Retirement Pension Plan (ORPP) after the Premier announced further details of the plan this morning. Despite the federal government’s promise to hike Canada Pension Plan (CPP) contribution rates, which will make ORPP redundant, the Premier announced she is moving ahead with her plan.page_Money_Canadian_16
The ORPP payroll tax will represent a 40 percent hike on top of what employers and employees are already paying towards CPP.
For employees, the ORPP payroll tax will claw back 1.9 percent of earnings up to $90,000 from each pay cheque. This means up to $1,643 each year.
“The ORPP will do nothing to help older workers facing retirement, and will hurt young Ontarians trying to start families and save for their own retirement by building home equity,” said CTF Ontario Director Christine Van Geyn. “The ORPP will have high management fees, and reflects the ‘government knows best’ attitude of this Premier.”
For employers, the cost of each employee goes up by 1.9 percent, and they assume the administrative burden of the plan. The Ontario Chamber of Commerce found only 26 percent of businesses believed they can shoulder the additional burden of ORPP, and 44 percent of businesses would reduce their current payroll or hire fewer employees.
“Employment growth in this province is sluggish, and the ORPP will only hurt employment prospects more. Premier Wynne should be focusing on making Ontario a competitive place to do business, not driving business away with schemes like the ORPP, carbon taxes, and high hydro rates,” continued Van Geyn.
“Given the Federal government’s commitment to hike CPP rates, Premier Wynne should halt her plans to create this redundant plan,” concluded Van Geyn.

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