CFIB: CPP/QPP battle won, but war not over

Threat of payroll tax hikes remains

TORONTO, Dec. 16, 2013 /CNW/ - Small business owners across Canada are breathing a sigh of relief to learn federal, provincial and territorial finance ministers did not reach an agreement to increase Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) premiums at this time. The proposed increases did not have the support of most Canadians, and would have had grave consequences for the economy.

"While we're not out of the woods, we are pleased ministers did not conclude that the time is right to raise CPP payroll taxes on Canadians and their employers," said Dan Kelly, president of the Canadian Federation of Independent Business. "However, it is clear that this threat is not going away."

CFIB is urging provinces to let the new pooled registered pensions have a chance to work as a majority of provinces have announced plans to launch them in the months ahead. "Before any further thought is given to hiking CPP/QPP, we are calling on ministers to commit to full public consultations as they did when premiums were doubled several years ago.  The discussion needs to shift to IF hiking CPP is the best solution to enhance retirement savings, not just WHEN and HOW MUCH."

CFIB is Canada's largest association of small and medium-sized businesses with 109,000 members across every sector and region.

SOURCE: Canadian Federation of Independent Business

To arrange an interview with Dan Kelly, please contact Gisele Lumsdem at 416-222-8022 or [email protected].