Today in downtown Toronto, the McGuinty-Wynne Liberals announced a new, mandatory, payroll tax on Ontarians based on the Canada Pension Plan.
Canadian workers and employers contribute $42 billion a year nationwide to the Canada Pension Plan. Ontario’s share of these annual contributions is roughly $16.5 billion. The payroll tax will mean 150,000 fewer private sector jobs.
Internal, confidential government document’s confirmed the 150,000 jobs losses, stating –
“payroll taxes would have the largest negative impact on employment.”
the Ministry of Finance calculated that for every $2-billion increase in Ontario payroll taxes, 18,000 people would lose their job
Ontarians already pay the highest payroll taxes in Canada. On average, families pay $9,970 a year in government payroll taxes in addition to their personal income taxes
The McGuinty-Wynne Liberal payroll tax will increase taxes by:
$788 a year for someone making $45,000
$1,263 a year for someone making $70,000
$1,643 a year for someone making $90,000
Ontario small business has been unanimous in their opposition to this job killing tax:
In particular, CFIB is vehemently opposed to the proposed Ontario Retirement Pension Plan, which will hurt small business owners and their employees by taxing everyone who issues and receives a paycheque and does not currently have a workplace pension. “In one of the worst Ontario budgets ever, the government is picking the pockets of Ontarians, especially the middle class, to pay for it.” (Dan Kelly, President, Canadian Federation of Independent Business)
The OCC does not support a stand-alone Ontario pension plan, as the plan will create administrative duplication with the CPP, further fragment Canada’s pension landscape, and potentially deter job creation. (Ontario Chamber of Commerce)
