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CFIB working to prevent CPP, QPP hikes


May 2, 2013
By Canadian Garden Centre & Nursery

May 2, 2013,
Toronto — Increasing Canada Pension Plan (CPP) and Quebec Pension Plan
(QPP) benefits would hurt the Canadian economy and result in significant
job losses, according to a new report from the Canadian Federation of
Independent Business (CFIB).

In June,
the nation's finance ministers will discuss increasing CPP and QPP. One
option that will be considered is expected to cost employees up to
$1,100 more per year and force wages down 1.5 per cent.

"There's
been lots of talk about increasing benefits, with very little mention of
the cost," said Ted Mallett, CFIB vice-president and chief economist.
"The short-term impacts are substantial, yet benefits could take decades
to be fully implemented."

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CFIB's Forced Savings report, based on
a University of Toronto macro-econometric model, looks at the so-called
10-10-10 proposal that would phase in CPP/QPP increases over ten years.
Among the findings:

  • Employees would pay up to $1,100 more per year in CPP/QPP premiums.
  • Employers would pay up to $1,100 more per year, per employee.
  • The self-employed would pay up to $2,200 more per year.
  • Higher labour costs would lead to 700,000 person years of lost work.
  • Overall wages would be forced down by 1.5 per cent.
  • Federal and provincial governments' debt-to-GDP ratios would increase by two and 1.2 per cent respectively.

"With
a CPP and QPP increase, all signs point to trouble," said Dan Kelly,
CFIB president and CEO. "Wages go down while premiums go up. It kills
jobs, increases government debt. Businesses are hurt, workers are hurt.
There is no up-side to hiking CPP and QPP at this time."

CFIB is
launching a campaign called All Signs Point to Trouble to stop CPP and
QPP increases. The campaign will include an online petition and a
premium calculator to help businesses and their workers determine what
CPP/QPP increases would mean for them.

To view the full Forced Savings report or the petition, visit www.cfib.ca.


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