Trudeau continues assault on paycheques
BY DAVID AKIN, PARLIAMENTARY BUREAU CHIEF
FIRST POSTED: TUESDAY, SEPTEMBER 08, 2015
OTTAWA - Justin Trudeau continued his assault Tuesday on your paycheque.
This time, it comes in the form of higher employment insurance premiums which will reduce your take-home pay.
Trudeau’s promised reporters Tuesday morning in Bouctouche, N.B that “employment insurance is not meant to be a profit centre for the government.”
Indeed, previous Liberal governments got into political trouble, particularly with small-c conservative minded voters, for doing just that, collecting more in premiums than they ever needed to pay out in EI benefits so they could use the rest for general government revenue. The NDP was quick to slam Trudeau Tuesday by noting that, for the 13 years they were last in power, successive Liberal governments over-taxed us in EI premiums to the tune of $50 billion.
The NDP argued that extra $50 billion taken in by the Liberals should have been doled right back out in the form of higher EI benefits.
Trudeau is now proposing to take in an extra $2 billion so that he can, among other things, cut the wait time before you get an EI cheque from two weeks to one week and give more money to the provinces for skills training.
To contrast, the Conservatives said in their most recent budget they would lower EI premiums by 21% by the year 2017.
Premiums paid by employees right now amount to $1.88 for every hundred dollars of the first $49,500 you make in a year. (Any earnings above that are not insured and no premium is deducted.)
If the Conservatives win on Oct. 19, that premium comes down to $1.49 for every $100 you make. If Trudeau wins, it’s only going down to $1.65 per $100. The difference between the two adds up to an extra $2 billion for Ottawa.
“That’s $2 billion out of people’s pockets,” a puzzled reporter asked Trudeau. “Is that not a tax increase?”
Not to Trudeau. It’s money to be redistributed from employees and employers for new “investments.”
And if that reporter had asked that question of the country’s finance minister in 1994 — a guy Trudeau campaigned with last week named Paul Martin — the answer would have been an unequivocal, hell, yeah! Martin, back in the day, called hiking payroll taxes like EI premiums and CPP contributions “a cancer on the economy.”
Martin was right then. But now he’s endorsing Trudeau’s plan for more deficits and more payroll tax hikes. Or he’s helping Ontario Premier Kathleen Wynne implement an unnecessary provincial pension plan that will skim $1,000 a year off the pay cheques of anyone making $60,000.
Trudeau likes Wynne’s pension scheme. And while he’s yet to table the details, he’s already said he’d do something similar to what Wynne is doing, to expand the Canada Pension Plan.
“Hiking EI leaves no space for other proposals to increase CPP (contributions) or the even uglier [Ontario] plan,” Dan Kelly, the CEO of the Canadian Federation of Independent Business said on Twitter. “Increasing EI taxes by $2.15-billion a year in a flat economy is a recipe for higher unemployment, particularly for young people.”
And yet, there it is. Hikes in EI premiums. Hikes in CPP contributions. Higher costs to create new jobs. And smaller paycheques. That’s one of the changes Justin Trudeau’s Liberals are selling this election.