CFIB cautions Finance Ministers against doubling CPP
Regina, June 10, 2010 - According to a survey conducted by the Canadian Federation of Independent Business (CFIB), Saskatchewan small businesses are overwhelmingly opposed (74 per cent) to a mandatory doubling of Canada Pension Plan (CPP) premiums and benefits.
"Proposals by unions to double CPP would serve as a major job killer as economists worldwide recognize that payroll taxes are a drag on job growth and economic development. With EI payroll tax premiums set to rise for the next several years beginning in 2011, an increase in CPP premiums could hamstring Canada's economic recovery just as it begins to gain momentum," said CFIB president Catherine Swift. "Entrepreneurs already pay double the rates of other Canadians and they would be faced with massive increases if this option is considered," she added.
This was the message sent in a letter earlier this week by CFIB to all Federal and provincial finance ministers which went on to ask that they seriously look at the concerns small businesses have with the retirement income system. CFIB's recommendations come in the lead up to the Federal/Provincial finance ministers meeting on Sunday, June 13.
"Our members want to see fairness in the discussion at the Federal/provincial ministers meeting next week. Rather than mandating it, government needs to offer incentives and remove impediments to boost coverage. Businesses must be brought on board as willing participants, instead of being shoe-horned into a one-size fits-all scheme that could have serious negative effects on their businesses, and the economy overall," added Marilyn Braun-Pollon, CFIB's vice-president, Saskatchewan and Agri-business. Fully 49 per cent of Canadian businesses surveyed, including 40 per cent in Saskatchewan, said that, already, they cannot afford to provide retirement savings benefits to their employees.
CFIB also analyzed Statistics Canada data, showing that civil servants not only earn significantly more than employees in equivalent private-sector positions, but also receive much better retirement benefits.
"Entrepreneurs and small business owners rely heavily on personal savings, RRSPs, and the proceeds from the eventual sale of their businesses to allow them to retire. It is simply ludicrous to ask the private sector to continue to fund these overly-generous public sector pensions while many hard-working, self employed Canadians struggle to pay for their own retirement," concluded Braun-Pollon.
To view the full list of CFIB recommendations, survey results, and the letter to Canada's finance ministers, please visit: www.cfib.ca
For further information or to arrange an interview with Ms. Braun-Pollon call 757-0000.
