CFIB survey shows overwhelming result
The vast majority of small business owners in Ontario want their new government to stop plans to expand the Canadian Pension Plan.
The proposal to hike premiums by 20% and increase maximum pensionable earnings to $80,000 was approved by the Canadian government in 2016; but Ontario’s large share of the population means it could veto the plan which requires two thirds of provinces representing two thirds of the population.
The Canadian Federation of Independent Businesses conducted a survey which found 84% of Ontario business owners want the provincial government to delay the CPP expansion pending a review of other options (52%) or cancel it completely (32%).
"Small business owners are calling on Premier Ford and Finance Minister Fedeli to press pause on the previous government's decision to raise payroll taxes on small employers," said Dan Kelly, CFIB president.
Lower wages, fewer jobs
He added that the expansion would mean smaller pay cheques for all worker and smaller payroll budgets for every employer for the next five years.
This could mean fewer jobs, estimated by a recent CFIB poll with the University of Toronto to total 64,000.
"Many Ontario small businesses are struggling with the legacy of high costs imposed by past decisions," said Plamen Petkov, CFIB's vice-president for Ontario. "Massive hikes in the costs of energy, the minimum wage and new labour rules will have negative effects for many years and small firms simply cannot afford to pay even higher payroll taxes."