Reject CPP/QPP hikes: Open letter to finance ministers

As finance ministers from across the country prepare to meet in Ottawa, small business owners sent them a clear message: proposed increases to CPP and QPP payroll taxes are a no-go proposition.

In an open letter addressed to federal, provincial and territorial finance ministers, CFIB illustrated significant opposition from small business owners and the public to such a move.

CFIB conducted an economic analysis with University of Toronto researchers that shows the impact of an Ontario Retirement Pension Plan-style hike to CPP/QPP would lead to fewer jobs in the economy, increased deficits, and lower wages.

Key points from the analysis show the negative impact of a CPP/QPP premium increase:

  • There will be 110,000 fewer jobs than would otherwise have been created by 2020.
  • Provincial and federal deficits could swell due to reduced government revenues: by 2021, collective provincial balances would be worse off by about $5 billion and to a similar degree for federal balances.
  • Wages will be permanently reduced by 0.8%.

The federal government needs two-thirds of the provinces representing two-thirds of Canada’s population to agree to any CPP/QPP increase.

 

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