Small business disappointed as B.C. signs on to deal to hike CPP premiums: CFIB
By Canadian Pizza
By Canadian Pizza
Toronto – The Canadian Federation of Independent Business is disappointed that the B.C. government has signed on to a mandatory expansion of the Canada Pension Plan, which it said comes with added costs for small businesses and their workers.
British Columbia now joins the federal and provincial governments – except Quebec – in giving the green light to the Canada Pension Plan (CPP) expansion across Canada, the CFIB said in a news release.
“Given the federal budget commitment to consult before expanding CPP, small business owners expected an opportunity to express their views prior to a final decision. Unfortunately, only the government of British Columbia, soon to be joined by Quebec, gave their residents that opportunity,” said CFIB president Dan Kelly in the release.
When presented with the details about the size of the proposed CPP tax increase, 69 per cent of business owners said they may need to freeze salaries and benefits to accommodate the hike, and more than a third said they may have to eliminate jobs, CFIB said.
The CFIB cited an Ipsos poll of more than 2,000 employed or retired Canadians conducted in late August, in which 39 per cent of Canadians falsely believe the government pays for part of their CPP, only 26 per cent know it will take approximately 40 years to fully phase in expanded benefits, and 71 per cent do not realize current retirees get nothing. The Ipsos poll suggests Canadian workers overwhelmingly oppose CPP expansion if it results in a cut or freeze in their wages.
CFIB said it is concerned that increasing CPP will make it even more difficult for SMEs to continue to grow Canada’s economy. CFIB is calling on the federal government to reinstate its promise to cut the small business corporate tax rate to nine percent. CFIB is asking the federal and provincial governments for further actions, including a freeze in the minimum wage and lower payroll taxes like Employment Insurance and workers’ compensation premiums.