Now's the time to boost CPP payroll deductions: report
The federal government is currently considering increasing CPP and QPP benefits, which would mean a significant premium hike for working Canadians and even more serious impacts for the economy.
But small business owners in particular are concerned about the costs associated with any expansion of benefits, according to Canadian Federation of Independent Business president Dan Kelly.
Earlier this month, CFIB issued an update of its Forced Savings report, examining the so-called 10-10-10 proposal for CPP/QPP expansion.
This plan would hike CPP benefits by 10 percentage points from 25% to 35% of maximum pensionable earnings (MPE), raise the MPE by $10,000 from today’s $51,100 to $61,100, and implement all of this within 10 years.
Trouble is, this double-whammy payroll tax hike could mean that many Canadians see their take home pay drop each year on January 1 for 10 straight years, Kelly maintains.