Ottawa, ON – Conservative members of the Standing Committee on Finance are demanding more details about the Liberal Government’s plan to increase Canada Pension Plan payroll taxes, and what it means for middle-class families and job creating businesses.
“The Liberals waited until the summer to unveil a massive payroll tax hike and they are working to finalize the agreement without providing any details or analysis to Parliament,” said Conservative Finance Critic Lisa Raitt. “We need to know how this tax hike will affect the economy and, for the sake of the CPP’s long-term viability, we need to know if the Liberals got their numbers right.”
On Sunday, September 4, 2016, Conservative Members of Parliament submitted a letter to the Clerk of the Standing Committee on Finance, calling for an emergency meeting with Finance Minister Bill Morneau. Conservatives also requested to meet with the Chief Actuary of Canada, the Parliamentary Budget Officer and the Canada Pension Plan Investment Board.
On August 26th, Conservatives issued a letter to the Finance Minister providing advanced notice of the emergency meeting to accommodate his schedule. The letter reads:
“Opposition members of the Committee wish to hear from you and your officials about the details of the proposed Canada Pension Plan expansion, as well as any analysis undertaken by the government regarding its impact on jobs, middle class families, economic growth, plan sustainability, and public finances. The Liberal Party of Canada’s election platform promised to “work with the provinces and territories, workers, employers, and retiree organizations to enhance the Canada Pension Plan.” Despite this promise of openness and transparency, Canadians, parliamentarians and stakeholders were not adequately consulted before these changes were announced. The changes being proposed are very significant. Canadians deserve to know more about them before the agreement with the provinces is finalized and before your government tables the legislation.”
Recent studies commissioned by the Canadian Federation of Independent Business and Government of Ontario found that increasing mandatory pension contributions has a negative effect on job creation and reduces household incomes.
“On the heels of the worst quarter of economic growth since the Great Recession, it’s more important than ever for us to thoroughly review any initiative that increases business costs and takes money out of the pockets of Canadians,” concluded Lisa Raitt.