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Restaurants Canada proposes youth employment measures


May 15, 2014
By Canadian Pizza

May 15, 2014, Ottawa – Restaurants Canada recently proposed to the federal finance committee
the creation of a "new hires" program and changes to the employment
insurance program to reduce the tax burden on new employees.

May 15, 2014, Ottawa – Restaurants Canada recently proposed to the federal finance committee the creation of a "new hires" program and changes to the employment insurance program to reduce the tax burden on new employees. 

“No other industry helps more students pay
their way through school, or works with more young people to develop valuable
jobs skills,” said Joyce Reynolds, executive vice-president of government affairs
for the association, in a news release. “Restaurants provide that all-important
first step on the career ladder for thousands of Canadians.”

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On April 3, Reynolds outlined two proposals to increase
job opportunities for young people:

  • a youth “new hires” program to provide a
    payroll tax incentive for employers who add new jobs for young people
  • changes to the employment insurance
    program to reduce the tax burden on entry-level employees and their employers,
    similar to the “year’s basic exemption” that already exists in the Canada
    Pension Plan

“These initiatives would expand the
training ground for young people, and help them develop real-world skills in
teamwork, problem-solving, customer service and communication that will help
them no matter what career they pursue,” said Reynolds.

Restaurants Canada members cite high
payroll taxes as an obstacle to job creation because they are a tax on jobs.
They are also the most regressive tax, placing a higher burden on entry-level
employees.