Enhancing CPP reduces poverty
VancouverSun.com – news – Re: Higher payroll taxes will burden economy, Letters, Nov. 4
November 8, 2013. Cliff Boldt
Mike Klassen says, “Canadians must reject the push for higher CPP payroll taxes.” Well, pension contributions aren’t taxes – they are deferred pay that the worker receives in retirement.
An enhanced CPP benefit means a more prosperous future for all Canadians.
In a recent study, CIBC World Markets found that, in the absence of pension policy change, nearly six million workers in Canada, particularly younger workers, will experience a significant decline in living standards when they retire.
If we don’t solve the poverty problem for seniors with an enhanced, universal, cost-effective plan like CPP, seniors will be a much bigger draw on tax revenue in the future.
Without an enhanced CPP a large group of low-income seniors will rely on programs that are 100 per cent funded by taxpayers, including old age security, guaranteed income supplement, Pharmacare, medicare premiums, and social services.
Workers and owners pay CPP contributions equally. The investment returns on that money pay most of the future pensions.
Cliff Boldt PresidentBC Retired Teachers’ Association
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