CFIB Grades Budget a B
Thursday, March 29, 2012 @ 2:00 PM
Vancouver, B.C. – The Canadian Federation of Idependent Business says the Federal Budget, delivered this afternoon by Finance MInister Jim Flaherty, had some positive news for small business with major progress on 8 of CFIB’s top 12 priorities for 2012. However, The CFIB says the budget fell short in its plans to deal with spending, the federal deficit or public service compensation and pensions.
The CFIB has issued it’s comments on the following areas of the budget:
Employment Insurance (EI): the EI Hiring Credit was renewed for 2012. “The recent increase in EI premiums harms small Canadian businesses and extending this credit makes it easier for them to continue to support Canada’s economic recovery by creating jobs,” said Catherine Swift, president of CFIB. In addition, positive changes have been made to the EI rate setting process and future increases will be capped at 5 cents for employees and 7 cents for employers.
Spending: “We were disappointed in the baby steps taken by the federal government to restrain its spending,” commented Swift who says while there has been a lot of talk about the amount of spending reductions in this budget, overall program spending continues to rise.
Pensions: CFIB says it is particularly pleased there is a commitment to have public sector employees contribute more to their pension plans and measures were taken to discourage early retirement. “These are important steps in tackling the $150 to $230 billion unfunded liability currently facing the federal public sector pension plan,” said Swift.
Old Age Security (OAS): The CFIB says while supportive of the idea of raising OAS benefits for those who delay their retirement, many small firms will be concerned with the increase in the eligibility age for OAS to 67. “Until all MPs and public sector workers start retiring at age 65 or older, there should be no increases in the eligibility age for Old Age Security for the rest of Canadians,” Swift said.
Innovation Programs: The CFIB says more details are needed, and speculates many small and medium-sized firms will be alarmed with the changes to Scientific Research and Experimental Development (SRED) tax credits.
Comments
âUntil all MPs and public sector workers start retiring at age 65 or older, there should be no increases in the eligibility age for Old Age Security for the rest of Canadians”
This statement makes no sense whatsoever. It completely ignores the fact that public servants are not the only Canadians who have pensions and/or retirement savings.
Besides, wouldn’t the CFIB WANT people to leave the public service as early as possible? It would mean pension penalties and reduced payouts (savings to the taxpayers) and the replacement of those workers with less experienced people would would make less money (again more savings). But no, they seem to be advocating keeping people as long as possible at the highest wage levels possible. Did they even think their statement through?
Better to pay for one employee than 3 say 2 employees taking early retirement and a third to fill the job. ie:paying for 3 fire chiefs in PG and probably 4 in another 5-7 years. B.S.
Never heard much from the opposition about the MP’s Pension Plans. This is the first place they should begin. Even before other government employees. Let alone OAS.
I think the point is that the government don’t force those 65-67 into poverty when they themselves get to retire early. Its a valid point and speaks to the dignity one affords themselves while taking from others more vulnerable.
Even a federation for independent business sees it as unethical to go after the most vulnerable in this way. Its about ideology for the conservatives more than anything… those that are favored feel entitled to take from those that are not.
Most independent business owners understand the aspect of chance and its nemesis keeps them one step away from being in the unfavored class when 65 comes… independent business doesn’t have unfunded defined pensions guaranteed by government either.
Per the CBC:
“The government will adjust public service pensions so employees and the government each contribute 50 per cent. Starting in 2013, new hires will be eligible for retirement at age 65, rather than 60”
Seems like the public service is taking their hit as well, no?
“Independent business doesn’t have unfunded defined pensions guaranteed by government either”
Independent business also does not have their ability to contribute to sheltered retirement investment vehicles seriously hampered as a result of their enrolment in a pension plan. Funny how that little fact never seems to come up in these discussion.
I’m not even anticipating CPP or OAS to be there when I retire.
JohnnyBelt,
If you’re not expecting it to be there when you retire, then that makes you pretty stupid for paying into it doesn’t it.
They can’t take part of your paycheque by statutory deduction to invest in a pension fund for you and then not pay it to you, but if you let them get away with that then you deserve what you get.
Sine: “If you’re not expecting it to be there when you retire, then that makes you pretty stupid for paying into it doesn’t it.”
Yep, there are a lot of dummies just like me. Unless the system is heavily reformed, I can’t see how it can sustain itself. I hope I’m wrong.
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